Lincoln National (LNC) 8-K Lincoln Financial Group Reports 2024 First Quarter Results

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
Select Earnings Drivers By Segment	7
Sales By Segment	8
Operating Revenues and General and Administrative Expenses By Segment	9
Operating Commissions and Other Expenses	10
Select Earnings and Operational Data from Business Segments
Annuities	11
Life Insurance	12
Group Protection	13
Retirement Plan Services	14
Other Operations	15
DAC & Account Balance Roll Forwards
Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	16
Account Balance Roll Forwards:
Annuities	17
Life Insurance	18
Retirement Plan Services	19
Investment Information
Fixed-Income Asset Class	20
Fixed-Income Credit Quality	21
GAAP to Non-GAAP Reconciliations
Select GAAP to Non-GAAP Reconciliations	22-24

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 beginning on page 22.

Adjusted Income (Loss) From Operations

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

• Items related to annuity product features, which include changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”), changes in the fair

value of the derivative instruments we hold to hedge guaranteed living benefit (“GLB”) and guaranteed death benefit (“GDB”) riders, net of fee income allocated to support the cost of hedging them,

and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with

the hedge program (collectively, “net annuity product features”);

• Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of variable universal life insurance (“VUL”) hedging, changes in reserves resulting

from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our indexed universal life insurance (“IUL”) contracts

and the associated index options we hold to hedge them (collectively, “net life insurance product features”);

• Credit loss-related adjustments on fixed maturity available-for-sale (“AFS”) securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);

• Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment

gains (losses)”);

• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related

embedded derivatives, trading securities and certain mortgage loans”);

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;

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

• 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;

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

• Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and

• Income (loss) from discontinued operations.

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred

units of LNC stock in our deferred compensation plans.

Adjusted Operating Revenues

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

• Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the

embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts and the associated index options we hold to hedge them (“revenue adjustments from annuity and

life insurance product features”);

• Credit loss-related adjustments;

• Investment gains (losses);

• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans;

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

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

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 adjusted operating revenues and adjusted income (loss)

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

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Lincoln Financial Group

Notes

Non-GAAP Performance Measures, Continued

Stockholders’ Equity, Excluding AOCI and Preferred Stock

Stockholders’ equity, excluding AOCI and preferred stock is stockholders’ equity, excluding AOCI and preferred stock. Management believes this metric is useful to investors because it eliminates market

movements that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. Stockholders’ equity is the most directly comparable GAAP measure.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts, GLB and GDB hedged instruments gains (losses) and the difference between

amounts recognized in net income (loss) on reinsurance-related embedded derivatives and the underlying asset portfolios (“reinsurance-related embedded derivatives and portfolio gains (losses)”).

Management believes this metric is useful to investors because it eliminates the effect of market movements that are unpredictable and can fluctuate significantly from period to period, primarily related to

changes in equity markets and interest rates. Stockholders’ equity is the most directly comparable GAAP measure.

Book Value per Share, Excluding AOCI

Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI and preferred stock, 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 are unpredictable and 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.

Adjusted Book Value per Share

Adjusted book value per share is calculated by dividing adjusted stockholders’ equity by common shares outstanding. We provide adjusted book value per share to enable investors to analyze the amount

of our net worth that is attributable primarily to our business operations. Management believes adjusted book value per share is useful to investors because it eliminates the effect of items that are unpredictable

and can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates. Book value per share is the most directly comparable GAAP measure.

Adjusted Income (Loss) From Operations Available to Common Stockholders, Excluding AOCI and Preferred Stock ROE

Adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE is calculated by dividing annualized adjusted income (loss) from operations available

to common stockholders by average stockholders’ equity, excluding AOCI and preferred stock. Management believes this metric is useful to investors because it eliminates the effect of market movements

on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. Net income (loss) ROE is the most directly comparable GAAP measure.

Adjusted Income (Loss) From Operations ROE

Adjusted income (loss) from operations ROE is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by adjusted average stockholders’ equity.

Management believes this metric is useful to investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period to period, primarily

related to changes in equity markets and interest rates. Net income (loss) ROE is the most directly comparable GAAP measure.

Management believes that the non-GAAP measures discussed above allow 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.

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.

• 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.

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Lincoln Financial Group

Notes

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.

Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. See adjusted income (loss) from operations ROE and adjusted income (loss) from

operations available to common stockholders, excluding AOCI and preferred stock ROE metrics on page 1b for further information on how these metrics are calculated. Management evaluates consolidated

ROE by both including and excluding the effect of average goodwill.

Leverage ratio is a measure that we use to monitor the level of our debt relative to our total capitalization. Debt used in this metric reflects total debt and preferred stock adjusted for certain items.

Total capitalization reflects debt used in the numerator of this ratio and stockholders' equity adjusted for certain items.

Indexed variable annuities are referred to as registered index-linked annuities (“RILA”).

Sales as reported consist of the following:

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

• Universal life insurance (“UL”), IUL, 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.

Statistical Supplement is Dated

This document is dated May 2, 2024, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.

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Lincoln Financial Group
Credit Ratings
	Ratings as of May 2, 2024
					Standard
		AM Best	Fitch	Moody's	& Poor's
Senior Debt Ratings		bbb+	BBB+	Baa2	BBB+
Financial Strength Ratings
The Lincoln National Life Insurance Company		A	A+	A2	A+
First Penn-Pacific Life Insurance Company		A	A+	A2	A-
Lincoln Life & Annuity Company of New York		A	A+	A2	A+
Investor Inquiries May Be Directed To:
Tina Madon, Senior Vice President, Investor Relations
Email: InvestorRelations@lfg.com
Phone: 800-237-2920

Page 2

Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)
		For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Revenues
Insurance premiums	$	1,579	$	1,612	$	1,566	$	(1,086)	$	1,601	1.4	%
Fee income		1,379		1,365		1,363		1,361		1,324	-4.0	%
Net investment income		1,466		1,508		1,494		1,411		1,346	-8.2	%
Realized gain (loss)		(828)		(1,784)		(453)		(1,245)		(434)	47.6	%
Amortization of deferred gain (loss) on business
sold through reinsurance		9		9		15		4		(12)	NM
Other revenues		209		219		218		255		291	39.2	%
Total revenues		3,814		2,929		4,203		700		4,116	7.9	%
Expenses
Benefits		2,291		2,192		2,152		(497)		2,003	-12.6	%
Interest credited		785		808		831		824		822	4.7	%
Market risk benefit (gain) loss		619		(2,023)		(1,428)		568		(1,907)	NM
Policyholder liability remeasurement (gain) loss		(118)		(110)		159		(84)		(12)	89.8	%
Commissions and other expenses		1,324		1,376		1,371		1,421		1,601	20.9	%
Interest and debt expense		83		84		84		81		81	-2.4	%
Total expenses		4,984		2,327		3,169		2,313		2,588	-48.1	%
Income (loss) before taxes		(1,170)		602		1,034		(1,613)		1,528	230.6	%
Federal income tax expense (benefit)		(289)		91		181		(378)		306	205.9	%
Net income (loss)		(881)		511		853		(1,235)		1,222	238.7	%
Preferred stock dividends declared		(25)		(11)		(34)		(11)		(34)	-36.0	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		(3)		2		—		—		3	200.0	%
Net income (loss) available to common
stockholders – diluted	$	(909)	$	502	$	819	$	(1,246)	$	1,191	231.0	%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	(5.37)	$	2.94	$	4.79	$	(7.35)	$	6.93	229.1	%

Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
		As of
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	80,448	$	79,307	$	76,001	$	69,657	$	68,533	-14.8%
U.S. government bonds		383		371		373		393		391	2.1%
State and municipal bonds		5,257		5,074		4,770		2,790		2,743	-47.8%
Foreign government bonds		309		281		273		283		263	-14.9%
Residential mortgage-backed securities		2,050		2,015		1,928		1,773		1,760	-14.1%
Commercial mortgage-backed securities		1,671		1,684		1,701		1,424		1,484	-11.2%
Asset-backed securities		11,458		11,793		12,393		12,171		12,349	7.8%
Hybrid and redeemable preferred securities		360		365		365		247		241	-33.1%
Total fixed maturity AFS securities, net of allowance for credit losses		101,936		100,890		97,804		88,738		87,764	-13.9%
Trading securities		3,266		2,943		2,788		2,359		2,227	-31.8%
Equity securities		414		403		383		306		319	-22.9%
Mortgage loans on real estate, net of allowance for credit losses		18,327		18,460		18,751		18,963		19,266	5.1%
Policy loans		2,383		2,423		2,428		2,476		2,476	3.9%
Derivative investments		4,005		5,155		5,790		6,474		8,394	109.6%
Other investments		3,892		4,195		4,551		5,015		5,256	35.0%
Total investments		134,223		134,469		132,495		124,331		125,702	-6.3%
Cash and invested cash		3,766		3,768		2,529		3,365		4,122	9.5%
Deferred acquisition costs, value of business acquired and deferred sales inducements		12,277		12,316		12,341		12,397		12,405	1.0%
Reinsurance recoverables, net of allowance for credit losses		19,827		19,571		18,924		29,843		29,461	48.6%
Deposit assets, net of allowance for credit losses		12,249		12,308		12,494		28,789		28,904	136.0%
Market risk benefit assets		3,445		3,906		4,108		3,894		4,878	41.6%
Accrued investment income		1,277		1,277		1,372		1,082		1,127	-11.7%
Goodwill		1,144		1,144		1,144		1,144		1,144	0.0%
Other assets		6,682		6,798		7,351		9,311		9,413	40.9%
Separate account assets		148,421		153,246		145,810		158,257		166,225	12.0%
Total assets	$	343,311	$	348,803	$	338,568	$	372,413	$	383,381	11.7%

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Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
		As of
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances	$	116,167	$	117,598	$	117,210	$	120,737	$	122,300	5.3	%
Future contract benefits		39,757		39,711		39,362		39,864		38,848	-2.3	%
Funds withheld reinsurance liabilities		5,517		5,244		5,006		17,641		17,486	216.9	%
Market risk benefit liabilities		1,976		1,548		1,385		1,716		1,266	-35.9	%
Deferred front-end loads		5,291		5,494		5,695		5,901		6,099	15.3	%
Payables for collateral on investments		6,803		7,062		8,046		8,105		10,117	48.7	%
Short-term debt		500		500		—		250		503	0.6	%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		867		867		867		867		867	0.0%
Financial		5,107		5,087		5,038		4,832		4,859	-4.9	%
Other liabilities		6,173		6,627		6,950		7,350		7,265	17.7	%
Separate account liabilities		148,421		153,246		145,810		158,257		166,225	12.0	%
Total liabilities		336,579		342,984		335,369		365,520		375,835	11.7	%
Stockholders’ Equity
Preferred stock		986		986		986		986		986	0.0%
Common stock		4,560		4,575		4,591		4,605		4,624	1.4	%
Retained earnings		4,940		5,362		6,102		4,778		5,887	19.2	%
Accumulated other comprehensive income (loss):
Unrealized investment gain (loss)		(6,754)		(7,267)		(10,163)		(4,813)		(4,940)	26.9	%
Market risk benefit non-performance risk gain (loss)		2,766		1,842		998		1,070		606	-78.1	%
Policyholder liability discount rate remeasurement gain (loss)		545		657		1,021		587		703	29.0	%
Foreign currency translation adjustment		(31)		(26)		(32)		(26)		(27)	12.9	%
Funded status of employee benefit plans		(280)		(310)		(304)		(294)		(293)	-4.6	%
Total accumulated other comprehensive income (loss)		(3,754)		(5,104)		(8,480)		(3,476)		(3,951)	-5.2	%
Total stockholders’ equity		6,732		5,819		3,199		6,893		7,546	12.1	%
Total liabilities and stockholders’ equity	$	343,311	$	348,803	$	338,568	$	372,413	$	383,381	11.7	%

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
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Income (Loss)
Net income (loss)	$	(881)		$	511		$	853		$	(1,235)		$	1,222		238.7	%
Pre-tax adjusted income (loss) from operations		310			403			47			276			115		-62.9	%
After-tax adjusted income (loss) from operations (1)		288			354			73			258			105		-63.5	%
Adjusted operating tax rate		7.2	%		12.2	%		-56.2	%		6.7	%		8.7	%
Adjusted income (loss) from operations available to
common stockholders		260			343			39			246			71		-72.7	%
ROE
Net income (loss) ROE		-59.6	%		32.6	%		75.7	%		-97.9	%		67.7	%
Adjusted income (loss) from operations available to
common stockholders, excluding AOCI and preferred
stock ROE		10.4	%		14.1	%		1.5	%		9.8	%		2.9	%
Adjusted income (loss) from operations ROE (4)		9.3	%		12.4	%		1.4	%		9.0	%		2.6	%
Per Common Share
Net income (loss) (diluted)	$	(5.37)		$	2.94		$	4.79		$	(7.35)		$	6.93		229.1	%
Adjusted income (loss) from operations (diluted) (2)		1.52			2.02			0.23			1.45			0.41		-73.0	%
Dividends declared during the period		0.45			0.45			0.45			0.45			0.45		0.0%
Book Value Per Common Share
Book value per share	$	33.89		$	28.49		$	13.04		$	34.81		$	38.46		13.5	%
Book value per share, excluding AOCI (3)		56.04			58.58			63.03			55.30			61.63		10.0	%
Adjusted book value per share (3)(4)		66.05			64.37			63.53			64.97			65.01		-1.6	%
Common Shares
End-of-period – basic		169.5			169.6			169.7			169.7			170.5		0.6	%
Average for the period – basic		169.4			169.6			169.6			169.7			170.0		0.4	%
End-of-period – diluted		170.5			170.0			171.0			170.6			171.7		0.7	%
Average for the period – diluted		170.5			169.9			170.9			170.4			171.1		0.4	%
(1) See reconciliation to net income (loss) on page 22.
(2) See reconciliation to earnings (loss) per common share - diluted on page 23.
(3) See reconciliation to stockholders’ equity and book value per common share on page 24.
(4) This measure has been updated, effective beginning with the fourth quarter of 2023, to exclude reinsurance-related embedded derivatives and the underlying portfolio gains (losses), given
the size of the impact of the fourth quarter 2023 reinsurance transaction. Such amounts in the prior periods presented, and the impact of this change to such prior periods,
were not meaningful.

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Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Cash Returned to Common Stockholders – Common Dividends	$	76		$	76		$	76		$	76		$	76		0.0%
Cash Returned to Preferred Stockholders – Preferred Dividends	$	25		$	11		$	34		$	11		$	34		36.0	%
Leverage Ratio
Short-term debt	$	500		$	500		$	—		$	250		$	503		0.6	%
Long-term debt		5,974			5,954			5,905			5,699			5,726		-4.2	%
Total debt (1)		6,474			6,454			5,905			5,949			6,229		-3.8	%
Preferred stock		986			986			986			986			986		0.0%
Total debt and preferred stock		7,460			7,440			6,891			6,935			7,215		-3.3	%
Less:
Operating debt (2)		867			867			867			867			867		0.0%
Pre-funding of upcoming debt maturities		500			500			—			—			300		-40.0	%
25% of capital securities and subordinated notes		302			302			302			302			302		0.0%
50% of preferred stock		493			493			493			493			493		0.0%
Carrying value of fair value hedges and other items		182			161			111			154			133		-26.9	%
Total numerator	$	5,116		$	5,117		$	5,118		$	5,119		$	5,120		0.1	%
Adjusted stockholders’ equity (3)	$	11,197		$	10,918		$	10,778		$	11,023		$	11,087		-1.0	%
Add:
25% of capital securities and subordinated notes		302			302			302			302			302		0.0%
50% of preferred stock		493			493			493			493			493		0.0%
Total numerator		5,116			5,117			5,118			5,119			5,120		0.1	%
Total denominator	$	17,108		$	16,830		$	16,691		$	16,937		$	17,002		-0.6	%
Leverage ratio		29.9	%		30.4	%		30.7	%		30.2	%		30.1	%
Holding Company Available Liquidity (4)	$	954		$	957		$	455		$	458		$	766		-19.7	%
(1) Excludes obligations under finance leases and certain financing arrangements of $602 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.
(3) See reconciliation to stockholders’ equity on page 24.
(4) Includes pre-funding of upcoming debt maturities.

Page 6

Lincoln Financial Group
Select Earnings Drivers By Segment
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Annuities
Operating revenues	$	1,141	$	1,190	$	1,197	$	(525)	$	1,269	11.2	%
Deposits		3,164		2,560		2,737		4,359		2,849	-10.0	%
Net flows		(331)		(1,108)		(874)		285		(1,993)	NM
Average account balances, net of reinsurance		146,331		148,260		151,312		147,419		155,291	6.1	%
Alternative investment income (1)		3		6		4		4		2	-33.3	%
Life Insurance
Operating revenues	$	1,757	$	1,760	$	1,723	$	1,667	$	1,541	-12.3	%
Deposits		1,320		1,333		1,272		1,458		1,208	-8.5	%
Net flows		852		932		821		1,013		741	-13.0	%
Average account balances, net of reinsurance		49,100		50,049		50,130		45,608		42,280	-13.9	%
Average in-force face amount		1,075,614		1,081,795		1,085,253		1,087,535		1,087,405	1.1	%
Alternative investment income (1)		46		68		44		49		74	60.9	%
Group Protection
Operating revenues	$	1,388	$	1,400	$	1,388	$	1,387	$	1,425	2.7	%
Insurance premiums		1,251		1,263		1,251		1,250		1,285	2.7	%
Alternative investment income (1)		2		3		2		2		1	-50.0	%
Retirement Plan Services
Operating revenues	$	328	$	334	$	327	$	322	$	322	-1.8	%
Deposits		3,209		2,897		2,700		2,972		3,802	18.5	%
Net flows		535		201		(272)		(332)		391	-26.9	%
Average account balances		91,457		94,099		96,473		96,045		103,240	12.9	%
Alternative investment income (1)		2		3		2		3		1	-50.0	%
Consolidated
Adjusted operating revenues (2)	$	4,657	$	4,730	$	4,673	$	1,967	$	4,584	-1.6	%
Deposits		7,693		6,790		6,709		8,789		7,859	2.2	%
Net flows		1,056		25		(325)		959		(861)	NM
Average account balances, net of reinsurance		286,888		292,408		297,915		289,072		300,811	4.9	%
Alternative investment income (1)		53		80		52		58		78	47.2	%
(1) Excludes alternative investment income on investments supporting our modified coinsurance and coinsurance with funds withheld agreements as we have a limited economic interest in
the investments.
(2) See reconciliation to total revenues on page 23.

Page 7

Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Sales
Annuities:
RILA	$	1,147		$	1,123		$	1,069		$	986		$	942		-17.9	%
Other variable without GLBs		255			341			359			362			388		52.2	%
Other variable with GLBs		445			494			530			579			546		22.7	%
Total variable		1,847			1,958			1,958			1,927			1,876		1.6	%
Fixed		1,317			624			770			2,438			971		-26.3	%
Total Annuities	$	3,164		$	2,582		$	2,728		$	4,365		$	2,847		-10.0	%
Life Insurance:
IUL/UL	$	34		$	28		$	23		$	34		$	18		-47.1	%
MoneyGuard®		21			23			27			27			24		14.3	%
VUL		30			34			29			38			23		-23.3	%
Term		30			26			23			21			19		-36.7	%
Executive Benefits		15			12			42			24			7		-53.3	%
Total Life Insurance	$	130		$	123		$	144		$	144		$	91		-30.0	%
Group Protection:
Life	$	82		$	54		$	30		$	167		$	85		3.7	%
Disability		40			36			32			204			51		27.5	%
Dental		6			6			9			27			8		33.3	%
Total Group Protection	$	128		$	96		$	71		$	398		$	144		12.5	%
Percent employee-paid		70.3	%		54.8	%		48.8	%		33.8	%		70.4	%
Retirement Plan Services:
First-year sales	$	736		$	819		$	464		$	874		$	1,127		53.1	%
Recurring deposits		2,473			2,078			2,236			2,098			2,675		8.2	%
Total Retirement Plan Services	$	3,209		$	2,897		$	2,700		$	2,972		$	3,802		18.5	%

Page 8

Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Operating Revenues
Annuities	$	1,141		$	1,190		$	1,197		$	(525)		$	1,269		11.2	%
Life Insurance		1,757			1,760			1,723			1,667			1,541		-12.3	%
Group Protection		1,388			1,400			1,388			1,387			1,425		2.7	%
Retirement Plan Services		328			334			327			322			322		-1.8	%
Other Operations		43			46			38			(884)			27		-37.2	%
Total segment operating revenues	$	4,657		$	4,730		$	4,673		$	1,967		$	4,584		-1.6	%
General and Administrative Expenses,
Net of Amounts Capitalized
Annuities	$	123		$	135		$	138		$	131		$	134		8.9	%
Life Insurance		134			136			138			143			130		-3.0	%
Group Protection		191			191			191			191			187		-2.1	%
Retirement Plan Services		79			81			81			84			81		2.5	%
Other Operations		38			75			70			85			229		NM
Total	$	565		$	618		$	618		$	635		$	762		34.9	%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.8	%		11.3	%		11.5	%		NM			10.6	%
Life Insurance		7.6	%		7.7	%		8.0	%		8.6	%		8.5	%
Group Protection		13.8	%		13.6	%		13.8	%		13.8	%		13.1	%
Retirement Plan Services		24.0	%		24.3	%		24.9	%		26.1	%		25.3	%
Other Operations		90.0	%		162.1	%		177.3	%		NM			838.2	%
Total		12.1	%		13.1	%		13.2	%		32.2	%		16.6	%

Page 9

Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	617	$	672	$	672	$	693	$	813	31.8	%
Commissions		615		617		603		651		639	3.9	%
Taxes, licenses and fees		94		81		96		81		94	0.0%
Interest and debt expense		83		84		84		81		81	-2.4	%
Expenses associated with reserve financing
and letters of credit		30		27		28		29		30	0.0%
Total adjusted operating commissions and other
expenses incurred		1,439		1,481		1,483		1,535		1,657	15.1	%
Less Amounts Capitalized
General and administrative expenses		(52)		(54)		(54)		(58)		(51)	1.9	%
Commissions		(241)		(240)		(223)		(259)		(205)	14.9	%
Taxes, licenses and fees		(9)		(8)		(8)		(8)		(9)	0.0%
Total amounts capitalized		(302)		(302)		(285)		(325)		(265)	12.3	%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,137		1,179		1,198		1,210		1,392	22.4	%
Amortization
Amortization of DAC, VOBA and other intangibles		268		271		270		271		271	1.1	%
Total operating commissions and other expenses	$	1,405	$	1,450	$	1,468	$	1,481	$	1,663	18.4	%

Page 10

Lincoln Financial Group
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums (1)	$	38		$	54		$	24		$	(1,700)		$	26		-31.6	%
Fee income (2)		540			546			557			552			580		7.4	%
Net investment income		421			437			451			425			420		-0.2	%
Amortization of deferred gain (loss) on
business sold through reinsurance		5			5			11			10			5		0.0%
Other revenues		137			148			154			188			238		73.7	%
Total operating revenues		1,141			1,190			1,197			(525)			1,269		11.2	%
Operating expenses:
Benefits (1)		63			69			45			(1,683)			27		-57.1	%
Interest credited		278			306			330			338			354		27.3	%
Policyholder liability remeasurement (gain) loss		(1)			(1)			19			(15)			—		100.0	%
Commissions incurred		240			240			238			252			254		5.8	%
Other expenses incurred		251			257			276			265			309		23.1	%
Amounts capitalized		(98)			(100)			(102)			(110)			(98)		0.0%
Amortization		108			109			109			107			106		-1.9	%
Total operating expenses		841			880			915			(846)			952		13.2	%
Income (loss) from operations before taxes		300			310			282			321			317		5.7	%
Federal income tax expense (benefit)		26			39			34			42			58		123.1	%
Income (loss) from operations	$	274		$	271		$	248		$	279		$	259		-5.5	%
Effective Federal Income Tax Rate		8.6	%		12.6	%		12.0	%		12.9	%		18.5	%
Return on Average Account Balances		75			73			66			76			67		(8)
Account Balances, Net of Reinsurance –
End-of-Period
RILA account balances	$	21,841		$	24,407		$	25,006		$	27,533		$	30,100		37.8	%
Other variable account balances without GLBs		42,983			44,381			42,196			45,499			47,657		10.9	%
Other variable account balances with GLBs		67,274			68,460			64,754			69,458			71,822		6.8	%
Fixed account balances		15,053			14,828			14,694			10,336			10,214		-32.1	%
Total account balances	$	147,151		$	152,076		$	146,650		$	152,826		$	159,793		8.6	%
Percent variable account balances with GLBs		45.7	%		45.0	%		44.2	%		45.4	%		44.9	%
Fee Income, Gross of Hedge Allowance	$	745		$	750		$	758		$	752		$	780		4.7	%
Net Investment Income, Net of Reinsurance (3)		376			396			409			385			390		3.7	%
Interest Credited, Net of Reinsurance (3)		224			247			270			255			245		9.4	%
(1) Day one impacts related to the fourth quarter 2023 reinsurance transaction contributed to line item volatility in the fourth quarter.
(2) Fee income is reported net of the hedge allowance, which represents fees allocated to net annuity product features to support the cost of hedging.
(3) Net investment income and interest credited are both reported gross of reinsurance. Reinsurance impacts are settled through other revenues.

Page 11

Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	285		$	293		$	289		$	295		$	288		1.1	%
Fee income		776			753			739			741			672		-13.4	%
Net investment income		687			707			689			629			581		-15.4	%
Operating realized gain (loss)		(2)			(2)			(2)			(2)			(2)		0.0%
Amortization of deferred gain (loss) on
business sold through reinsurance		4			4			4			(6)			(19)		NM
Other revenues		7			5			4			10			21		200.0	%
Total operating revenues		1,757			1,760			1,723			1,667			1,541		-12.3	%
Operating expenses:
Benefits		1,152			1,073			1,129			1,083			928		-19.4	%
Interest credited		328			325			325			312			294		-10.4	%
Policyholder liability remeasurement (gain) loss		(13)			14			183			(37)			59		NM
Commissions incurred		148			143			129			150			113		-23.6	%
Other expenses incurred		216			216			215			223			204		-5.6	%
Amounts capitalized		(174)			(170)			(152)			(175)			(133)		23.6	%
Amortization		123			124			123			125			126		2.4	%
Total operating expenses		1,780			1,725			1,952			1,681			1,591		-10.6	%
Income (loss) from operations before taxes		(23)			35			(229)			(14)			(50)		NM
Federal income tax expense (benefit)		(10)			2			(56)			(8)			(15)		-50.0	%
Income (loss) from operations	$	(13)		$	33		$	(173)		$	(6)		$	(35)		NM
Effective Federal Income Tax Rate		45.0	%		6.6	%		24.2	%		59.7	%		29.7	%
Average Account Balances, Net of Reinsurance	$	49,100		$	50,049		$	50,130		$	45,608		$	42,280		-13.9	%
In-Force Face Amount
UL and other	$	364,101		$	364,633		$	364,586		$	365,938		$	365,507		0.4	%
Term insurance		715,495			719,361			721,927			722,620			720,745		0.7	%
Total in-force face amount	$	1,079,596		$	1,083,994		$	1,086,513		$	1,088,558		$	1,086,252		0.6	%

Page 12

Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,251		$	1,263		$	1,251		$	1,250		$	1,285		2.7	%
Net investment income		85			85			84			85			85		0.0%
Other revenues		52			52			53			52			55		5.8	%
Total operating revenues		1,388			1,400			1,388			1,387			1,425		2.7	%
Operating expenses:
Benefits		1,037			1,019			979			984			1,030		-0.7	%
Interest credited		1			1			1			1			1		0.0%
Policyholder liability remeasurement (gain) loss		(100)			(121)			(39)			(28)			(67)		33.0	%
Commissions incurred		106			112			109			119			109		2.8	%
Other expenses incurred		248			246			245			246			246		-0.8	%
Amounts capitalized		(25)			(28)			(26)			(34)			(29)		-16.0	%
Amortization		32			33			33			34			34		6.3	%
Total operating expenses		1,299			1,262			1,302			1,322			1,324		1.9	%
Income (loss) from operations before taxes		89			138			86			65			101		13.5	%
Federal income tax expense (benefit)		18			29			18			13			21		16.7	%
Income (loss) from operations	$	71		$	109		$	68		$	52		$	80		12.7	%
Effective Federal Income Tax Rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%
Loss Ratios by Product Line
Life		80.4	%		71.6	%		76.8	%		67.2	%		76.1	%
Disability		71.4	%		70.7	%		74.1	%		83.1	%		74.2	%
Dental		76.4	%		76.9	%		75.9	%		75.4	%		76.5	%
Total		75.0	%		71.3	%		75.2	%		76.6	%		75.0	%

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
		3/31/23			6/30/23			9/30/23			12/31/23			3/31/24		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	64		$	65		$	66		$	67		$	70		9.4	%
Net investment income		255			259			251			248			244		-4.3	%
Other revenues		9			10			10			7			8		-11.1	%
Total operating revenues		328			334			327			322			322		-1.8	%
Operating expenses:
Interest credited		167			168			165			164			166		-0.6	%
Commissions incurred		21			21			22			22			23		9.5	%
Other expenses incurred		89			90			90			93			92		3.4	%
Amounts capitalized		(5)			(5)			(5)			(6)			(5)		0.0%
Amortization		5			5			5			5			5		0.0%
Total operating expenses		277			279			277			278			281		1.4	%
Income (loss) from operations before taxes		51			55			50			44			41		-19.6	%
Federal income tax expense (benefit)		8			8			7			6			5		-37.5	%
Income (loss) from operations	$	43		$	47		$	43		$	38		$	36		-16.3	%
Effective Federal Income Tax Rate		16.4	%		14.9	%		13.9	%		13.2	%		12.9	%
Return on Average Account Balances		19			20			18			16			14		(5)
Pre-tax Net Margin		31.8	%		33.5	%		31.2	%		27.8	%		26.5	%
Net Flows by Market
Small Market	$	148		$	99		$	21		$	115		$	(32)		NM
Mid - Large Market		711			408			83			78			847		19.1	%
Multi-Fund® and Other		(324)			(306)			(376)			(525)			(424)		-30.9	%
Net Flows – Trailing Twelve Months	$	2,304		$	1,592		$	515		$	132		$	(12)		NM
Base Spreads, Excluding Variable
Investment Income (1)		1.14	%		1.18	%		1.10	%		1.09	%		1.02	%	(12)
(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums.

Page 14

Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Other Operations
Operating revenues:
Insurance premiums (1)	$	5	$	2	$	1	$	(930)	$	2	-60.0	%
Net investment income		35		38		37		37		16	-54.3	%
Amortization of deferred gain (loss) on
business sold through reinsurance		—		—		—		1		2	NM
Other revenues		3		6		—		8		7	133.3	%
Total operating revenues		43		46		38		(884)		27	-37.2	%
Operating expenses:
Benefits (1)		20		14		17		(918)		6	-70.0	%
Interest credited		10		9		9		9		9	-10.0	%
Policyholder liability remeasurement (gain) loss		—		1		(5)		—		(1)	NM
Commissions and other expenses		37		73		75		84		226	NM
Interest and debt expense		83		84		84		81		81	-2.4	%
Total operating expenses		150		181		180		(744)		321	114.0	%
Income (loss) from operations before taxes		(107)		(135)		(142)		(140)		(294)	NM
Federal income tax expense (benefit)		(20)		(29)		(29)		(35)		(59)	NM
Income (loss) from operations	$	(87)	$	(106)	$	(113)	$	(105)	$	(235)	NM
(1) Day one impacts related to the fourth quarter 2023 reinsurance transaction contributed to line item volatility in the fourth quarter.

Page 15

Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	12,235	$	12,277	$	12,316	$	12,341	$	12,397	1.3	%
Business acquired (sold) through reinsurance		—		—		—		(11)		—	NM
Deferrals		306		304		289		333		274	-10.5	%
Operating amortization		(264)		(265)		(264)		(266)		(266)	-0.8	%
Balance as of end-of-period	$	12,277	$	12,316	$	12,341	$	12,397	$	12,405	1.0	%
DFEL
Balance as of beginning-of-period	$	5,091	$	5,291	$	5,494	$	5,695	$	5,901	15.9	%
Deferrals		268		274		275		281		272	1.5	%
Operating amortization		(68)		(71)		(74)		(75)		(74)	-8.8	%
Balance as of end-of-period	$	5,291	$	5,494	$	5,695	$	5,901	$	6,099	15.3	%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,519	$	5,389	$	5,250	$	5,132	$	4,981	-9.7	%

Page 16

Lincoln Financial Group
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Traditional Variable Annuities
Balance as of beginning-of-period	$	107,627	$	110,264	$	112,848	$	106,957	$	114,963	6.8	%
Gross deposits		700		835		889		941		934	33.4	%
Full surrenders and deaths		(1,527)		(1,543)		(1,559)		(1,714)		(2,145)	-40.5	%
Other contract benefits		(979)		(993)		(984)		(1,147)		(1,130)	-15.4	%
Net flows		(1,806)		(1,701)		(1,654)		(1,920)		(2,341)	-29.6	%
Policyholder assessments		(623)		(626)		(630)		(624)		(644)	-3.4	%
Change in market value and reinvestment		5,066		4,911		(3,607)		10,550		7,507	48.2	%
Balance as of end-of-period, gross		110,264		112,848		106,957		114,963		119,485	8.4	%
Account balances reinsured		(7)		(7)		(7)		(6)		(6)	14.3	%
Balance as of end-of-period, net	$	110,257	$	112,841	$	106,950	$	114,957	$	119,479	8.4	%
RILA
Balance as of beginning-of-period	$	20,130	$	21,841	$	24,407	$	25,006	$	27,533	36.8	%
Gross deposits		1,147		1,123		1,069		986		942	-17.9	%
Full surrenders and deaths		(65)		(78)		(105)		(103)		(112)	-72.3	%
Other contract benefits		(35)		(23)		(20)		(45)		(45)	-28.6	%
Net flows		1,047		1,022		944		838		785	-25.0	%
Policyholder assessments		(1)		(2)		(2)		(3)		(3)	NM
Change in market value and reinvestment		125		163		190		213		247	97.6	%
Change in fair value of embedded derivative instruments		540		1,383		(533)		1,479		1,538	184.8	%
Balance as of end-of-period, gross	$	21,841	$	24,407	$	25,006	$	27,533	$	30,100	37.8	%

Page 17a

Lincoln Financial Group
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Fixed Annuities
Balance as of beginning-of-period	$	23,365	$	24,019	$	23,813	$	23,681	$	25,355	8.5	%
Gross deposits		1,317		602		779		2,432		973	-26.1	%
Full surrenders and deaths		(728)		(864)		(782)		(878)		(1,213)	-66.6	%
Other contract benefits		(161)		(167)		(161)		(187)		(197)	-22.4	%
Net flows		428		(429)		(164)		1,367		(437)	NM
Policyholder assessments		(15)		(14)		(13)		(15)		(17)	-13.3	%
Reinvested interest credited		154		159		158		172		183	18.8	%
Change in fair value of embedded derivative instruments		87		78		(113)		150		78	-10.3	%
Balance as of end-of-period, gross		24,019		23,813		23,681		25,355		25,162	4.8	%
Account balances reinsured		(8,966)		(8,985)		(8,987)		(15,019)		(14,948)	-66.7	%
Balance as of end-of-period, net	$	15,053	$	14,828	$	14,694	$	10,336	$	10,214	-32.1	%
Total
Balance as of beginning-of-period	$	151,122	$	156,124	$	161,068	$	155,644	$	167,851	11.1	%
Gross deposits		3,164		2,560		2,737		4,359		2,849	-10.0	%
Full surrenders and deaths		(2,320)		(2,485)		(2,446)		(2,695)		(3,470)	-49.6	%
Other contract benefits		(1,175)		(1,183)		(1,165)		(1,379)		(1,372)	-16.8	%
Net flows		(331)		(1,108)		(874)		285		(1,993)	NM
Policyholder assessments		(639)		(642)		(645)		(642)		(664)	-3.9	%
Change in market value, reinvestment and interest credited		5,345		5,233		(3,259)		10,935		7,937	48.5	%
Change in fair value of embedded derivative instruments		627		1,461		(646)		1,629		1,616	157.7	%
Balance as of end-of-period, gross		156,124		161,068		155,644		167,851		174,747	11.9	%
Account balances reinsured		(8,973)		(8,992)		(8,994)		(15,025)		(14,954)	-66.7	%
Balance as of end-of-period, net	$	147,151	$	152,076	$	146,650	$	152,826	$	159,793	8.6	%

Page 17b

Lincoln Financial Group
Life Insurance – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
General Account
Balance as of beginning-of-period	$	37,694	$	37,533	$	37,458	$	37,217	$	37,180	-1.4	%
Gross deposits		926		907		915		1,006		850	-8.2	%
Withdrawals and deaths		(393)		(323)		(378)		(359)		(364)	7.4	%
Net flows		533		584		537		647		486	-8.8	%
Transfers between general and separate accounts		32		44		14		7		38	18.8	%
Policyholder assessments		(1,128)		(1,120)		(1,124)		(1,140)		(1,124)	0.4	%
Reinvested interest credited		373		371		370		366		365	-2.1	%
Change in fair value of embedded derivative instruments		29		46		(38)		83		61	110.3	%
Balance as of end-of-period, gross		37,533		37,458		37,217		37,180		37,006	-1.4	%
Account balances reinsured		(5,525)		(5,527)		(5,503)		(15,777)		(15,607)	NM
Balance as of end-of-period, net	$	32,008	$	31,931	$	31,714	$	21,403	$	21,399	-33.1	%
Separate Account
Balance as of beginning-of-period	$	20,920	$	22,162	$	23,409	$	22,642	$	25,150	20.2	%
Gross deposits		394		426		357		452		358	-9.1	%
Withdrawals and deaths		(75)		(78)		(73)		(86)		(103)	-37.3	%
Net flows		319		348		284		366		255	-20.1	%
Transfers between general and separate accounts		(32)		(44)		(12)		(7)		(37)	-15.6	%
Policyholder assessments		(238)		(238)		(238)		(250)		(246)	-3.4	%
Change in market value and reinvestment		1,193		1,181		(801)		2,399		1,885	58.0	%
Balance as of end-of-period, gross		22,162		23,409		22,642		25,150		27,007	21.9	%
Account balances reinsured		(4,606)		(4,805)		(4,632)		(5,062)		(5,338)	-15.9	%
Balance as of end-of-period, net	$	17,556	$	18,604	$	18,010	$	20,088	$	21,669	23.4	%
Total
Balance as of beginning-of-period	$	58,614	$	59,695	$	60,867	$	59,859	$	62,330	6.3	%
Gross deposits		1,320		1,333		1,272		1,458		1,208	-8.5	%
Withdrawals and deaths		(468)		(401)		(451)		(445)		(467)	0.2	%
Net flows		852		932		821		1,013		741	-13.0	%
Transfers between general and separate accounts		—		—		2		—		1
Policyholder assessments		(1,366)		(1,358)		(1,362)		(1,390)		(1,370)	-0.3	%
Change in market value and reinvestment		1,566		1,552		(431)		2,765		2,250	43.7	%
Change in fair value of embedded derivative instruments		29		46		(38)		83		61	110.3	%
Balance as of end-of-period, gross		59,695		60,867		59,859		62,330		64,013	7.2	%
Account balances reinsured		(10,131)		(10,332)		(10,135)		(20,839)		(20,945)	NM
Balance as of end-of-period, net	$	49,564	$	50,535	$	49,724	$	41,491	$	43,068	-13.1	%

Page 18

Lincoln Financial Group
Retirement Plan Services – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
General Account
Balance as of beginning-of-period	$	25,138	$	24,994	$	24,430	$	24,099	$	23,784	-5.4	%
Gross deposits		701		616		709		750		790	12.7	%
Withdrawals		(1,113)		(981)		(1,168)		(1,233)		(1,203)	-8.1	%
Net flows		(412)		(365)		(459)		(483)		(413)	-0.2	%
Transfers between fixed and variable accounts		103		(363)		(38)		2		50	-51.5	%
Policyholder assessments		(3)		(3)		(3)		(3)		(3)	0.0%
Reinvested interest credited		168		167		169		169		168	0.0%
Balance as of end-of-period	$	24,994	$	24,430	$	24,099	$	23,784	$	23,586	-5.6	%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	63,592	$	67,985	$	72,156	$	69,834	$	77,201	21.4	%
Gross deposits		2,508		2,281		1,991		2,222		3,012	20.1	%
Withdrawals		(1,561)		(1,715)		(1,804)		(2,071)		(2,208)	-41.4	%
Net flows		947		566		187		151		804	-15.1	%
Transfers between fixed and variable accounts		(104)		370		42		(10)		(34)	67.3	%
Policyholder assessments		(58)		(60)		(62)		(62)		(64)	-10.3	%
Change in market value and reinvestment		3,608		3,295		(2,489)		7,288		5,319	47.4	%
Balance as of end-of-period	$	67,985	$	72,156	$	69,834	$	77,201	$	83,226	22.4	%
Total
Balance as of beginning-of-period	$	88,730	$	92,979	$	96,586	$	93,933	$	100,985	13.8	%
Gross deposits		3,209		2,897		2,700		2,972		3,802	18.5	%
Withdrawals		(2,674)		(2,696)		(2,972)		(3,304)		(3,411)	-27.6	%
Net flows		535		201		(272)		(332)		391	-26.9	%
Transfers between fixed and variable accounts		(1)		7		4		(8)		16	NM
Policyholder assessments		(61)		(63)		(65)		(65)		(67)	-9.8	%
Change in market value and reinvestment		3,776		3,462		(2,320)		7,457		5,487	45.3	%
Balance as of end-of-period	$	92,979	$	96,586	$	93,933	$	100,985	$	106,812	14.9	%

Page 19

Lincoln Financial Group
Fixed-Income Asset Class
Unaudited (millions of dollars)
	As of 3/31/2023					As of 12/31/2023					As of 3/31/2024
	Amount		%			Amount		%			Amount		%
Fixed Maturity AFS Securities, Net of Modified Coinsurance and Funds Withheld
Investments and Allowance for Credit Losses, at Amortized Cost (1)
Industry corporate bonds:
Financial services	$	17,548		15.8	%	$	13,510		15.2	%	$	12,695		14.9	%
Basic industry		4,187		3.8	%		2,986		3.3	%		2,870		3.4	%
Capital goods		7,205		6.5	%		5,569		6.2	%		5,364		6.3	%
Communications		4,233		3.8	%		3,110		3.5	%		2,827		3.3	%
Consumer cyclical		5,804		5.2	%		5,268		5.8	%		5,240		6.1	%
Consumer non-cyclical		16,886		15.2	%		13,458		15.1	%		12,613		14.8	%
Energy		4,719		4.3	%		2,776		3.1	%		2,569		3.0	%
Technology		5,687		5.1	%		4,376		4.9	%		4,124		4.8	%
Transportation		3,600		3.2	%		3,233		3.6	%		3,092		3.6	%
Industrial other		2,338		2.1	%		2,107		2.4	%		2,068		2.4	%
Utilities		14,246		12.8	%		11,613		13.0	%		11,099		13.0	%
Government-related entities		1,807		1.6	%		1,278		1.4	%		1,204		1.4	%
Residential mortgage-backed securities ("RMBS")
Agency backed		1,851		1.7	%		1,505		1.7	%		1,468		1.7	%
Non-agency backed		363		0.3	%		332		0.4	%		318		0.3	%
Commercial mortgage-backed securities ("CMBS")		1,905		1.7	%		1,546		1.7	%		1,557		1.8	%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")		8,690		7.8	%		8,325		9.3	%		8,163		9.5	%
Other ABS		3,455		3.1	%		4,220		4.7	%		4,444		5.2	%
Municipals		5,386		4.8	%		2,973		3.3	%		2,777		3.2	%
United States and foreign government		733		0.9	%		731		1.1	%		724		1.0	%
Hybrid & redeemable preferred securities		362		0.3	%		237		0.3	%		226		0.3	%
Total fixed maturity AFS securities, net of modified coinsurance and funds withheld
investments and allowance for credit losses, at amortized cost		111,005		100.0	%		89,153		100.0	%		85,442		100.0	%
Trading Securities, Net of Modified Coinsurance and Funds Withheld Investments		530					626					540
Equity Securities, Net of Modified Coinsurance and Funds Withheld Investments		313					275					277
Total fixed maturity AFS, trading and equity securities, net of modified coinsurance and funds
withheld investments and allowance for credit losses, at amortized cost		111,848					90,054					86,259
Modified coinsurance and funds withheld investments		3,570					10,215					13,988
Total fixed maturity AFS, trading and equity securities	$	115,418				$	100,269				$	100,247
(1) Net investment income and net gains (losses) related to assets held by us to support certain modified coinsurance and funds withheld agreements are included in periodic payments to
or from the reinsurers, resulting in the economic benefits of these assets flowing to the reinsurers. Accordingly, these assets have been excluded from summaries provided on page 20
and page 21 as we have a limited economic interest in the assets.

Page 20

Lincoln Financial Group
Fixed-Income Credit Quality
Unaudited (millions of dollars)
	As of 3/31/2023					As of 12/31/2023					As of 3/31/2024
	Amount		%			Amount		%			Amount		%
Fixed Maturity AFS Securities, Net of Modified Coinsurance and Funds Withheld Investments
and Allowance for Credit Losses, at Amortized Cost (1)
NAIC 1 (AAA-A)	$	63,965		57.6	%	$	51,732		58.0	%	$	50,246		58.5	%
NAIC 2 (BBB)		43,464		39.2	%		34,472		38.7	%		32,866		38.3	%
Total investment grade		107,429		96.8	%		86,204		96.7	%		83,112		96.8	%
NAIC 3 (BB)		1,895		1.7	%		1,090		1.2	%		1,028		1.2	%
NAIC 4 (B)		1,591		1.4	%		1,760		2.0	%		1,667		1.9	%
NAIC 5 (CCC and lower)		69		0.1	%		86		0.1	%		67		0.1	%
NAIC 6 (in or near default)		20		0.0	%		2		0.0	%		3		0.0	%
Total below investment grade		3,575		3.2	%		2,938		3.3	%		2,765		3.2	%
Total	$	111,004		100.0	%	$	89,142		100.0	%	$	85,877		100.0	%
Commercial Mortgage Loans, Net of Modified Coinsurance and Funds Withheld Investments,
at Amortized Cost (1)(2)
CM1 (AAA-A)	$	13,148		79.7	%	$	13,687		80.4	%	$	13,559		79.1	%
CM2 (BBB)		3,283		19.9	%		3,248		19.1	%		3,538		20.6	%
CM3-7 (BB and lower)		73		0.4	%		84		0.5	%		43		0.3	%
Total	$	16,504		100.0	%	$	17,019		100.0	%	$	17,140		100.0	%
Total Fixed Maturity AFS Securities and Commercial Mortgage Loans, Net of Modified
Coinsurance and Funds Withheld Investments, at Amortized Cost (1)(2)
AAA-A	$	77,113		60.3	%	$	65,419		61.6	%	$	63,805		61.9	%
BBB		46,747		36.7	%		37,720		35.5	%		36,404		35.3	%
BB and lower		3,648		3.0	%		3,022		2.9	%		2,808		2.8	%
Total	$	127,508		100.0	%	$	106,161		100.0	%	$	103,017		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.

Page 21

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Net Income
Net income (loss) available to common stockholders – diluted	$	(909)	$	502	$	819	$	(1,246)	$	1,191	231.0	%
Less:
Preferred stock dividends declared		(25)		(11)		(34)		(11)		(34)	-36.0	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		(3)		2		—		—		3	200.0	%
Net income (loss)		(881)		511		853		(1,235)		1,222	238.7	%
Less:
Net annuity product features, after-tax		(1,018)		822		1,045		(797)		1,141	212.1	%
Net life insurance product features, after-tax		(95)		(123)		85		(178)		(103)	-8.4	%
Credit loss-related adjustments, after-tax		(18)		(3)		(21)		(21)		(1)	94.4	%
Investment gains (losses), after-tax		(45)		(528)		(306)		136		(65)	-44.4	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax (1)		7		(4)		(23)		(613)		153	NM
Transaction and integration costs related to mergers,
acquisitions and divestitures, after-tax (2)		—		(7)		—		(20)		(8)	NM
Total adjustments		(1,169)		157		780		(1,493)		1,117	195.6	%
Adjusted income (loss) from operations		288		354		73		258		105	-63.5	%
Add:
Preferred stock dividends declared		(25)		(11)		(34)		(11)		(34)	-36.0	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		(3)		—		—		(1)		—	100.0	%
Adjusted income (loss) from operations available to
common stockholders	$	260	$	343	$	39	$	246	$	71	-72.7	%
(1) Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
(2) Includes costs pertaining to the planned sale of our wealth management business and the fourth quarter 2023 reinsurance transaction.

Page 22

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Revenues
Total revenues	$	3,814	$	2,929	$	4,203	$	700	$	4,116	7.9	%
Less:
Revenue adjustments from annuity
and life insurance product features		(773)		(1,123)		(14)		(631)		(580)	25.0	%
Credit loss-related adjustments		(22)		(5)		(27)		(27)		(1)	95.5	%
Investment gains (losses)		(57)		(668)		(400)		167		(81)	-42.1	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans		9		(5)		(29)		(776)		194	NM
Adjusted operating revenues	$	4,657	$	4,730	$	4,673	$	1,967	$	4,584	-1.6	%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	(5.37)	$	2.94	$	4.79	$	(7.35)	$	6.93	229.1	%
Less:
Net annuity product features, after-tax		(6.03)		4.84		6.11		(4.71)		6.64	210.1	%
Net life insurance product features, after-tax		(0.56)		(0.73)		0.50		(1.06)		(0.60)	-7.1	%
Credit loss-related adjustments, after-tax		(0.10)		(0.02)		(0.12)		(0.12)		—	100.0	%
Investment gains (losses), after-tax		(0.26)		(3.11)		(1.79)		0.80		(0.38)	-46.2	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax		0.04		(0.02)		(0.14)		(3.61)		0.89	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		—		(0.04)		—		(0.12)		(0.05)	NM
Adjustment attributable to using different average
diluted shares for adjusted income (loss) from
operations as compared to net income (loss) (1)		0.02		—		—		0.02		0.02	NM
Adjusted income (loss) from operations	$	1.52	$	2.02	$	0.23	$	1.45	$	0.41	-73.0	%
(1) In periods where net income (loss) or adjusted income (loss) from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of
diluted shares would result in a lower loss per share. Due to reporting adjusted income (loss) from operations per common share on a different share basis than net income (loss) per
common share, we have included an adjustment to reconcile the two metrics.

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Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended
		3/31/23		6/30/23		9/30/23		12/31/23		3/31/24	Change
Stockholders’ Equity, End-of-Period
Stockholders' equity	$	6,732	$	5,819	$	3,199	$	6,893	$	7,546	12.1	%
Less:
Preferred stock		986		986		986		986		986	0.0%
AOCI		(3,754)		(5,104)		(8,480)		(3,476)		(3,951)	-5.2	%
Stockholders’ equity, excluding AOCI and preferred
stock		9,500		9,937		10,693		9,383		10,511	10.6	%
MRB-related impacts		(1,158)		426		1,545		1,083		2,575	NM
GLB and GDB hedge instruments gains (losses)		(539)		(1,407)		(1,630)		(2,085)		(2,675)	NM
Reinsurance-related embedded derivatives and portfolio gains (losses) (1)		NM		NM		NM		(638)		(476)
Adjusted stockholders' equity (1)	$	11,197	$	10,918	$	10,778	$	11,023	$	11,087	-1.0	%
Stockholders’ Equity, Average
Stockholders' equity	$	5,917	$	6,276	$	4,509	$	5,046	$	7,219	22.0	%
Less:
Preferred stock		986		986		986		986		986	0.0%
AOCI		(5,053)		(4,429)		(6,792)		(5,979)		(3,714)	26.5	%
Stockholders’ equity, excluding AOCI and preferred
stock		9,984		9,719		10,315		10,038		9,947	-0.4	%
MRB-related impacts		(905)		(366)		986		1,314		1,829	NM
GLB and GDB hedge instruments gains (losses)		(269)		(973)		(1,519)		(1,857)		(2,380)	NM
Reinsurance-related embedded derivatives and portfolio gains (losses) (1)		NM		NM		NM		(318)		(557)
Adjusted average stockholders' equity (1)	$	11,158	$	11,058	$	10,848	$	10,900	$	11,055	-0.9	%
Book Value Per Common Share
Book value per share	$	33.89	$	28.49	$	13.04	$	34.81	$	38.46	13.5	%
Less:
AOCI		(22.15)		(30.09)		(49.99)		(20.49)		(23.17)	-4.6	%
Book value per share, excluding AOCI		56.04		58.58		63.03		55.30		61.63	10.0	%
Less:
MRB-related gains (losses)		(6.83)		2.51		9.11		6.38		15.10	NM
GLB and GDB hedge instruments gains (losses)		(3.18)		(8.30)		(9.61)		(12.29)		(15.69)	NM
Reinsurance-related embedded derivatives and portfolio gains (losses) (1)		NM		NM		NM		(3.76)		(2.79)
Adjusted book value per share (1)	$	66.05	$	64.37	$	63.53	$	64.97	$	65.01	-1.6	%
(1) This measure has been updated, effective beginning with the fourth quarter of 2023, to exclude reinsurance-related embedded derivatives and the underlying portfolio
gains (losses), given the size of the impact of the fourth quarter 2023 reinsurance transaction. Such amounts in the prior periods presented, and the impact of this change to
such prior periods, were not meaningful (“NM”).

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