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

Statistical Supplement

Third Quarter 2024

Lincoln Financial
Table of Contents
Notes .................................................................................................................................................................................................................................................................	1-3
Credit Ratings ...................................................................................................................................................................................................................................................	4
Consolidated
Consolidated Statements of Income (Loss) ................................................................................................................................................................................................	5
Consolidated Balance Sheets .......................................................................................................................................................................................................................	6-7
Earnings, Shares and Return on Equity .........................................................................................................................................................................................................	8
Key Stakeholder Metrics ...............................................................................................................................................................................................................................	9
Select Earnings Drivers By Segment ............................................................................................................................................................................................................	10
Sales By Segment ..........................................................................................................................................................................................................................................	11
Operating Revenues and General and Administrative Expenses By Segment and Other Operations......................................................................................................	12
Operating Commissions and Other Expenses .............................................................................................................................................................................................	13
Select Earnings and Operational Data from Business Segments and Other Operations
Annuities .........................................................................................................................................................................................................................................................	14
Life Insurance ................................................................................................................................................................................................................................................	15
Group Protection ............................................................................................................................................................................................................................................	16
Retirement Plan Services ..............................................................................................................................................................................................................................	17
Other Operations ............................................................................................................................................................................................................................................	18
DAC and Account Balance Roll Forwards
Consolidated DAC, VOBA, DSI and DFEL Roll Forwards ..............................................................................................................................................................................	19
Account Balance Roll Forwards:
Annuities ......................................................................................................................................................................................................................................................	20-21
Life Insurance ..............................................................................................................................................................................................................................................	22
Retirement Plan Services ............................................................................................................................................................................................................................	23
Investment Information
Fixed-Income Asset Class .............................................................................................................................................................................................................................	24
Fixed-Income Credit Quality ..........................................................................................................................................................................................................................	25
GAAP to Non-GAAP Reconciliations
Select GAAP to Non-GAAP Reconciliations .................................................................................................................................................................................................	26-29

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Lincoln Financial

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 26.

In the third quarter of 2024, we revised our definition of adjusted income (loss) from operations to exclude the impact of certain items that are not indicative of the ongoing operations of

the business and may obscure trends in the underlying performance of the Company. The revised definition now excludes, as applicable, certain legal accruals, severance expense related to initiatives

that realign the workforce, the mark-to-market adjustment related to the LNC stock component of our deferred compensation plans, impacts from the settlement or curtailment of

defined benefit obligations and the effect of tax adjustments such as changes to deferred tax valuation allowances from the definition of adjusted income (loss) from operations.

The presentation of prior period adjusted income (loss) from operations has been recast to conform to the current period presentation.

Adjusted Income (Loss) From Operations

Adjusted income (loss) from operations is GAAP net income excluding the 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, accounting policy changes and new regulations, including changes in tax law;

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

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

• Income (loss) from discontinued operations.

• Other items, which include the following: certain legal accruals; severance expense related to initiatives that realign the workforce; 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; mark-to-market adjustment related to the LNC stock component of our

deferred compensation plans (“deferred compensation mark-to-market adjustment”); gain (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of

defined benefit obligations; and

• Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends.

Adjusted Operating Revenues

Adjusted operating revenues represent GAAP revenues excluding the 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;

(continued on following page)

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Lincoln Financial

Notes

Non-GAAP Performance Measures, Continued

(continued from the previous page)

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

• Gains (losses) on other non-financial assets.

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.

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.

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Lincoln Financial

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 net income (loss) 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.

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 2 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 October 31, 2024, and has not been updated since that date. Lincoln Financial does not intend to update this document.

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Lincoln Financial
Credit Ratings
	Ratings as of October 31, 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

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Lincoln Financial
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)
		For the Three Months Ended												For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Revenues
Insurance premiums	$	1,566	$	(1,086)	$	1,601	$	1,625	$	1,614	3.1	%	$	4,757	$	4,839	1.7	%
Fee income		1,363		1,361		1,324		1,339		1,352	-0.8	%		4,107		4,015	-2.2	%
Net investment income		1,494		1,411		1,346		1,332		1,411	-5.6	%		4,468		4,090	-8.5	%
Realized gain (loss)		(453)		(1,245)		(434)		663		(431)	4.9	%		(3,066)		(201)	93.4	%
Other revenues		233		259		279		194		165	-29.2	%		680		637	-6.3	%
Total revenues		4,203		700		4,116		5,153		4,111	-2.2	%		10,946		13,380	22.2	%
Expenses
Benefits		2,152		(497)		2,003		2,008		1,937	-10.0	%		6,635		5,948	-10.4	%
Interest credited		831		824		822		853		880	5.9	%		2,424		2,555	5.4	%
Market risk benefit (gain) loss		(1,428)		568		(1,907)		(136)		657	146.0	%		(2,832)		(1,386)	51.1	%
Policyholder liability remeasurement (gain) loss		159		(84)		(12)		(105)		(50)	NM			(68)		(166)	NM
Commissions and other expenses		1,371		1,421		1,601		1,351		1,304	-4.9	%		4,071		4,254	4.5	%
Interest and debt expense		84		81		81		86		86	2.4	%		250		253	1.2	%
Total expenses		3,169		2,313		2,588		4,057		4,814	51.9	%		10,480		11,458	9.3	%
Income (loss) before taxes		1,034		(1,613)		1,528		1,096		(703)	NM			466		1,922	NM
Federal income tax expense (benefit)		181		(378)		306		201		(175)	NM			(17)		334	NM
Net income (loss)		853		(1,235)		1,222		895		(528)	NM			483		1,588	228.8	%
Preferred stock dividends declared		(34)		(11)		(34)		(11)		(34)	0.0%			(71)		(80)	-12.7	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		—		—		3		—		—	NM			(2)		3	250.0	%
Net income (loss) available to common
stockholders – diluted	$	819	$	(1,246)	$	1,191	$	884	$	(562)	NM		$	410	$	1,511	268.5	%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	4.79	$	(7.35)	$	6.93	$	5.11	$	(3.29)	NM		$	2.40	$	8.75	264.6	%

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Lincoln Financial
Consolidated Balance Sheets
Unaudited (millions of dollars)
		As of
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	76,001	$	69,657	$	68,533	$	67,313	$	70,234	-7.6%
U.S. government bonds		373		393		391		389		398	6.7%
State and municipal bonds		4,770		2,790		2,743		2,564		2,567	-46.2%
Foreign government bonds		273		283		263		260		252	-7.7%
Residential mortgage-backed securities		1,928		1,773		1,760		1,795		1,882	-2.4%
Commercial mortgage-backed securities		1,701		1,424		1,484		1,542		1,643	-3.4%
Asset-backed securities		12,393		12,171		12,349		13,072		13,444	8.5%
Hybrid and redeemable preferred securities		365		247		241		239		262	-28.2%
Total fixed maturity AFS securities, net of allowance for credit losses		97,804		88,738		87,764		87,174		90,682	-7.3%
Trading securities		2,788		2,359		2,227		2,201		2,206	-20.9%
Equity securities		383		306		319		295		293	-23.5%
Mortgage loans on real estate, net of allowance for credit losses		18,751		18,963		19,266		20,152		20,856	11.2%
Policy loans		2,428		2,476		2,476		2,513		2,510	3.4%
Derivative investments		5,790		6,474		8,394		8,608		9,522	64.5%
Other investments		4,551		5,015		5,256		5,652		5,743	26.2%
Total investments		132,495		124,331		125,702		126,595		131,812	-0.5%
Cash and invested cash		2,529		3,365		4,122		5,475		6,013	137.8%
Deferred acquisition costs, value of business acquired and deferred sales inducements		12,341		12,397		12,405		12,435		12,475	1.1%
Reinsurance recoverables, net of allowance for credit losses		18,924		29,843		29,461		29,126		29,233	54.5%
Deposit assets, net of allowance for credit losses		12,494		28,789		28,904		29,888		30,501	144.1%
Market risk benefit assets		4,108		3,894		4,878		4,754		4,565	11.1%
Accrued investment income		1,372		1,082		1,127		1,135		1,160	-15.5%
Goodwill		1,144		1,144		1,144		1,144		1,144	0.0%
Other assets		7,351		9,311		9,413		8,782		8,454	15.0%
Separate account assets		145,810		158,257		166,225		165,199		171,483	17.6%
Total assets	$	338,568	$	372,413	$	383,381	$	384,533	$	396,840	17.2%

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Lincoln Financial
Consolidated Balance Sheets
Unaudited (millions of dollars)
		As of
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances	$	117,210	$	120,737	$	122,300	$	124,113	$	125,968	7.5	%
Future contract benefits		39,362		39,864		38,848		38,560		41,169	4.6	%
Funds withheld reinsurance liabilities		5,006		17,641		17,486		17,044		17,595	251.5	%
Market risk benefit liabilities		1,385		1,716		1,266		1,275		1,272	-8.2	%
Deferred front-end loads		5,695		5,901		6,099		6,306		6,517	14.4	%
Payables for collateral on investments		8,046		8,105		10,117		11,114		10,570	31.4	%
Short-term debt		—		250		503		450		300	NM
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 9 for details)		867		867		867		867		867	0.0%
Financial		5,038		4,832		4,859		4,849		5,030	-0.2	%
Other liabilities		6,950		7,350		7,265		6,807		7,056	1.5	%
Separate account liabilities		145,810		158,257		166,225		165,199		171,483	17.6	%
Total liabilities		335,369		365,520		375,835		376,584		387,827	15.6	%
Stockholders’ Equity
Preferred stock		986		986		986		986		986	0.0%
Common stock		4,591		4,605		4,624		4,641		4,660	1.5	%
Retained earnings		6,102		4,778		5,887		6,691		6,049	-0.9	%
Accumulated other comprehensive income (loss):
Unrealized investment gain (loss)		(10,163)		(4,813)		(4,940)		(5,253)		(3,565)	64.9	%
Market risk benefit non-performance risk gain (loss)		998		1,070		606		409		781	-21.7	%
Policyholder liability discount rate remeasurement gain (loss)		1,021		587		703		795		422	-58.7	%
Foreign currency translation adjustment		(32)		(26)		(27)		(27)		(18)	43.8	%
Funded status of employee benefit plans		(304)		(294)		(293)		(293)		(302)	0.7	%
Total accumulated other comprehensive income (loss)		(8,480)		(3,476)		(3,951)		(4,369)		(2,682)	68.4	%
Total stockholders’ equity		3,199		6,893		7,546		7,949		9,013	181.7	%
Total liabilities and stockholders’ equity	$	338,568	$	372,413	$	383,381	$	384,533	$	396,840	17.2	%

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Lincoln Financial
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
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24		Change			9/30/23			9/30/24		Change
Income (Loss)
Net income (loss)	$	853		$	(1,235)		$	1,222		$	895		$	(528)		NM		$	483		$	1,588		228.8	%
Pre-tax adjusted income (loss) from operations (1)		58			282			291			389			461		NM			761			1,141		49.9	%
After-tax adjusted income (loss) from operations (1)(2)		84			263			244			335			392		NM			728			971		33.4	%
Adjusted operating tax rate (1)		-44.7	%		7.0	%		16.1	%		13.7	%		15.0	%				4.3	%		14.9	%
Adjusted income (loss) from operations available to
common stockholders (1)		50			252			210			324			358		NM			657			891		35.6	%
ROE
Net income (loss) ROE		75.7	%		-97.9	%		67.7	%		46.2	%		-24.9	%				11.6	%		27.1	%
Adjusted income (loss) from operations available to common
stockholders, excluding AOCI and preferred stock ROE (1)		1.9	%		10.0	%		8.4	%		11.9	%		13.0	%				8.8	%		11.2	%
Adjusted income (loss) from operations ROE (1)(5)		1.8	%		9.2	%		7.6	%		11.4	%		12.1	%				7.9	%		10.4	%
Per Common Share
Net income (loss) (diluted)	$	4.79		$	(7.35)		$	6.93		$	5.11		$	(3.29)		NM		$	2.40		$	8.75		264.6	%
Adjusted income (loss) from operations (diluted) (1)(3)		0.29			1.47			1.22			1.87			2.06		NM			3.85			5.16		34.0	%
Dividends declared during the period		0.45			0.45			0.45			0.45			0.45		0.0%			1.35			1.35		0.0%
Book Value Per Common Share
Book value per share	$	13.04		$	34.81		$	38.46		$	40.78		$	46.97		260.2	%	$	13.04		$	46.97		260.2	%
Book value per share, excluding AOCI (4)		63.03			55.30			61.63			66.37			62.67		-0.6	%		63.03			62.67		-0.6	%
Adjusted book value per share (4)(5)		63.53			64.97			65.01			68.51			70.04		10.2	%		63.53			70.04		10.2	%
Common Shares
End-of-period – basic		169.7			169.7			170.5			170.7			170.9		0.7	%		169.7			170.9		0.7	%
Average for the period – basic		169.6			169.7			170.0			170.6			170.8		0.7	%		169.5			170.5		0.6	%
End-of-period – diluted (1)		171.0			171.3			172.4			173.4			173.6		1.5	%		171.0			173.6		1.5	%
Average for the period – diluted (1)		170.9			171.1			171.8			172.9			173.6		1.6	%		170.6			172.8		1.3	%
(1) Prior period impacts have been recast to conform to the current period presentation. See page 1 for further information.
(2) See reconciliation to net income (loss) on page 26.
(3) See reconciliation to earnings (loss) per common share - diluted on page 28.
(4) See reconciliation to stockholders’ equity and book value per common share on page 29.
(5) 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, was not meaningful (“NM”).

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Lincoln Financial
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended																	For the Nine Months Ended
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24		Change			9/30/23		9/30/24	Change
Cash Returned to Common Stockholders – Common Dividends	$	76		$	76		$	76		$	77		$	77		1.3	%	$	229	$	229	0.0%
Cash Returned to Preferred Stockholders – Preferred Dividends	$	34		$	11		$	34		$	11		$	34		0.0%		$	71	$	80	12.7	%
Leverage Ratio
Short-term debt (1)	$	—		$	250		$	503		$	450		$	300		NM
Long-term debt		5,905			5,699			5,726			5,716			5,897		-0.1	%
Total debt (2)		5,905			5,949			6,229			6,166			6,197		4.9	%
Preferred stock		986			986			986			986			986		0.0%
Total debt and preferred stock		6,891			6,935			7,215			7,152			7,183		4.2	%
Less:
Operating debt (3)		867			867			867			867			867		0.0%
Pre-funding of upcoming debt maturities		—			—			300			300			300		NM
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		111			154			133			123			153		37.8	%
Total numerator	$	5,118		$	5,119		$	5,120		$	5,067		$	5,068		-1.0	%
Adjusted stockholders’ equity (4)	$	10,778		$	11,023		$	11,087		$	11,698		$	11,967		11.0	%
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		5,118			5,119			5,120			5,067			5,068		-1.0	%
Total denominator	$	16,691		$	16,937		$	17,002		$	17,560		$	17,830		6.8	%
Leverage ratio		30.7	%		30.2	%		30.1	%		28.9	%		28.4	%
Holding Company Available Liquidity (5)	$	455		$	458		$	766		$	763		$	759		66.8	%
(1) As of September 30, 2024, consists of $300 million principal amount of our 3.35% Senior Notes due March 9, 2025.
(2) Excludes obligations under finance leases and certain financing arrangements of $559 million that are reported in other liabilities on our Consolidated Balance Sheets.
(3) 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.
(4) See reconciliation to stockholders’ equity on page 29.
(5) Includes pre-funding of upcoming debt maturities.

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Lincoln Financial
Select Earnings Drivers By Segment
Unaudited (millions of dollars)
	For the Three Months Ended													For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Annuities
Operating revenues	$	1,197	$	(525)	$	1,269	$	1,209	$	1,195	-0.2	%	$	3,528	$	3,673	4.1	%
Deposits		2,737		4,359		2,849		3,823		3,383	23.6	%		8,461		10,056	18.9	%
Net flows		(874)		285		(1,993)		(954)		(1,637)	-87.3	%		(2,312)		(4,584)	-98.3	%
Average account balances, net of reinsurance		151,312		147,419		155,291		158,370		161,680	6.9	%		148,613		158,245	6.5	%
Alternative investment income (1)		4		4		2		1		4	0.0%			13		7	-46.2	%
Life Insurance
Operating revenues	$	1,723	$	1,667	$	1,541	$	1,511	$	1,589	-7.8	%	$	5,241	$	4,640	-11.5	%
Deposits		1,272		1,458		1,208		1,230		1,262	-0.8	%		3,927		3,699	-5.8	%
Net flows		821		1,013		741		751		738	-10.1	%		2,605		2,230	-14.4	%
Average account balances, net of reinsurance		50,130		45,608		42,280		43,230		44,055	-12.1	%		49,760		43,188	-13.2	%
Average in-force face amount		1,085,253		1,087,535		1,087,405		1,085,383		1,083,176	-0.2	%		1,080,887		1,085,321	0.4	%
Alternative investment income (1)		44		49		74		32		92	109.1	%		158		199	25.9	%
Group Protection
Operating revenues	$	1,388	$	1,387	$	1,425	$	1,441	$	1,432	3.2	%	$	4,176	$	4,299	2.9	%
Insurance premiums		1,251		1,250		1,285		1,298		1,288	3.0	%		3,765		3,871	2.8	%
Alternative investment income (1)		2		2		1		1		1	-50.0	%		7		3	-57.1	%
Retirement Plan Services
Operating revenues	$	327	$	322	$	322	$	327	$	335	2.4	%	$	988	$	984	-0.4	%
Deposits		2,700		2,972		3,802		3,282		4,180	54.8	%		8,806		11,265	27.9	%
Net flows		(272)		(332)		391		(197)		651	NM			464		845	82.1	%
Average account balances		96,473		96,045		103,240		106,374		110,550	14.6	%		93,897		106,595	13.5	%
Alternative investment income (1)		2		3		1		1		2	0.0%			7		4	-42.9	%
Consolidated
Adjusted operating revenues (2)	$	4,673	$	1,967	$	4,584	$	4,527	$	4,603	-1.5	%	$	14,060	$	13,714	-2.5	%
Deposits		6,709		8,789		7,859		8,335		8,825	31.5	%		21,194		25,020	18.1	%
Net flows		(325)		959		(861)		(400)		(248)	23.7	%		757		(1,509)	NM
Average account balances, net of reinsurance		297,915		289,072		300,811		307,974		316,285	6.2	%		292,270		308,028	5.4	%
Alternative investment income (1)		52		58		78		36		100	92.3	%		185		214	15.7	%
(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 27.

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Lincoln Financial
Sales By Segment
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24		Change			9/30/23			9/30/24		Change
Sales
Annuities:
RILA	$	1,069		$	986		$	942		$	1,096		$	1,203		12.5	%	$	3,339		$	3,241		-2.9	%
Other variable without GLBs		359			362			388			420			472		31.5	%		954			1,282		34.4	%
Other variable with GLBs		530			579			546			634			691		30.4	%		1,470			1,870		27.2	%
Total variable		1,958			1,927			1,876			2,150			2,366		20.8	%		5,763			6,393		10.9	%
Fixed		770			2,438			971			1,667			1,009		31.0	%		2,712			3,645		34.4	%
Total Annuities	$	2,728		$	4,365		$	2,847		$	3,817		$	3,375		23.7	%	$	8,475		$	10,038		18.4	%
Life Insurance:
IUL/UL	$	23		$	34		$	18		$	25		$	32		39.1	%	$	85		$	75		-11.8	%
MoneyGuard®		27			27			24			34			35		29.6	%		71			93		31.0	%
VUL		29			38			23			19			22		-24.1	%		93			64		-31.2	%
Term		23			21			19			18			15		-34.8	%		79			52		-34.2	%
Executive Benefits		42			24			7			9			18		-57.1	%		69			35		-49.3	%
Total Life Insurance	$	144		$	144		$	91		$	105		$	122		-15.3	%	$	397		$	319		-19.6	%
Group Protection:
Life	$	30		$	167		$	85		$	81		$	42		40.0	%	$	167		$	208		24.6	%
Disability		32			204			51			74			36		12.5	%		107			161		50.5	%
Dental		9			27			8			6			6		-33.3	%		21			20		-4.8	%
Total Group Protection	$	71		$	398		$	144		$	161		$	84		18.3	%	$	295		$	389		31.9	%
Percent employee-paid		48.8	%		33.8	%		70.4	%		50.0	%		52.8	%				60.1	%		58.1	%
Retirement Plan Services:
First-year sales	$	464		$	874		$	1,127		$	821		$	1,652		256.0	%	$	2,019		$	3,601		78.4	%
Recurring deposits		2,236			2,098			2,675			2,461			2,528		13.1	%		6,787			7,664		12.9	%
Total Retirement Plan Services	$	2,700		$	2,972		$	3,802		$	3,282		$	4,180		54.8	%	$	8,806		$	11,265		27.9	%

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Lincoln Financial
Operating Revenues and General and Administrative Expenses By Segment and Other Operations
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24		Change			9/30/23			9/30/24		Change
Operating Revenues
Annuities	$	1,197		$	(525)		$	1,269		$	1,209		$	1,195		-0.2	%	$	3,528		$	3,673		4.1	%
Life Insurance		1,723			1,667			1,541			1,511			1,589		-7.8	%		5,241			4,640		-11.5	%
Group Protection		1,388			1,387			1,425			1,441			1,432		3.2	%		4,176			4,299		2.9	%
Retirement Plan Services		327			322			322			327			335		2.4	%		988			984		-0.4	%
Other Operations		38			(884)			27			39			52		36.8	%		127			118		-7.1	%
Total adjusted operating revenues	$	4,673		$	1,967		$	4,584		$	4,527		$	4,603		-1.5	%	$	14,060		$	13,714		-2.5	%
General and Administrative Expenses,
Net of Amounts Capitalized
Annuities	$	138		$	131		$	134		$	112		$	103		-25.4	%	$	396		$	350		-11.6	%
Life Insurance		138			143			130			125			126		-8.7	%		407			382		-6.1	%
Group Protection		191			191			187			193			195		2.1	%		573			575		0.3	%
Retirement Plan Services		81			84			81			80			81		0.0%			241			242		0.4	%
Other Operations (1)		68			79			57			64			67		-1.5	%		180			186		3.3	%
Total (1)	$	616		$	628		$	589		$	574		$	572		-7.1	%	$	1,797		$	1,735		-3.5	%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		11.5	%		NM			10.6	%		9.3	%		8.6	%				11.2	%		9.5	%
Life Insurance		8.0	%		8.6	%		8.5	%		8.3	%		7.9	%				7.8	%		8.2	%
Group Protection		13.8	%		13.8	%		13.1	%		13.4	%		13.6	%				13.7	%		13.4	%
Retirement Plan Services		24.9	%		26.1	%		25.3	%		24.4	%		24.3	%				24.4	%		24.6	%
Total (1)		13.2	%		31.9	%		12.8	%		12.7	%		12.4	%				12.8	%		12.7	%
(1) Prior period impacts have been recast to conform to the current period presentation. See page 1 for further information.

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Lincoln Financial
Operating Commissions and Other Expenses
Unaudited (millions of dollars)
	For the Three Months Ended													For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses (1)	$	670	$	686	$	640	$	638	$	632	-5.7	%	$	1,957	$	1,911	-2.4	%
Commissions		603		651		639		561		546	-9.5	%		1,835		1,746	-4.9	%
Taxes, licenses and fees (1)		88		81		92		76		80	-9.1	%		262		247	-5.7	%
Interest and debt expense		84		81		81		86		86	2.4	%		250		253	1.2	%
Expenses associated with reserve financing
and letters of credit		28		29		30		28		32	14.3	%		86		90	4.7	%
Total adjusted operating commissions and
other expenses incurred (1)		1,473		1,528		1,482		1,389		1,376	-6.6	%		4,390		4,247	-3.3	%
Less Amounts Capitalized
General and administrative expenses		(54)		(58)		(51)		(64)		(60)	-11.1	%		(160)		(176)	-10.0	%
Commissions		(223)		(259)		(205)		(224)		(236)	-5.8	%		(705)		(665)	5.7	%
Taxes, licenses and fees		(8)		(8)		(9)		(7)		(8)	0.0%			(25)		(24)	4.0	%
Total amounts capitalized		(285)		(325)		(265)		(295)		(304)	-6.7	%		(890)		(865)	2.8	%
Total expenses incurred, net of amounts
capitalized, excluding amortization (1)		1,188		1,203		1,217		1,094		1,072	-9.8	%		3,500		3,382	-3.4	%
Amortization
Amortization of DAC, VOBA and other intangibles (2)		270		271		271		274		299	10.7	%		806		843	4.6	%
Total operating commissions and
other expenses (1)(2)	$	1,458	$	1,474	$	1,488	$	1,368	$	1,371	-6.0	%	$	4,306	$	4,225	-1.9	%
(1) Prior period impacts have been recast to conform to the current period presentation. See page 1 for further information.
(2) Effective in the third quarter of 2024, we collapsed the amortization of deferred gain (loss) on business sold through reinsurance line item, reclassifying the deferred gain
amortization to other revenues and presenting the amortization of deferred loss within operating expenses. For prior periods, the amortization of deferred gain (loss)
on business sold through reinsurance is presented on a net basis within other revenues.

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Lincoln Financial
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)
																			As of or For the
	As of or For the Three Months Ended																		Nine Months Ended
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24		Change			9/30/23			9/30/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums (1)	$	24		$	(1,700)		$	26		$	34		$	38		58.3	%	$	116		$	98		-15.5	%
Fee income (2)		557			552			580			587			601		7.9	%		1,644			1,769		7.6	%
Net investment income		451			425			420			435			442		-2.0	%		1,309			1,297		-0.9	%
Other revenues		165			198			243			153			114		-30.9	%		459			509		10.9	%
Total operating revenues		1,197			(525)			1,269			1,209			1,195		-0.2	%		3,528			3,673		4.1	%
Operating expenses:
Benefits (1)		45			(1,683)			27			38			38		-15.6	%		177			102		-42.4	%
Interest credited		330			338			354			377			399		20.9	%		914			1,129		23.5	%
Policyholder liability remeasurement (gain) loss		19			(15)			—			2			—		-100.0	%		17			3		-82.4	%
Commissions incurred		238			252			254			269			285		19.7	%		719			808		12.4	%
Other expenses incurred		276			265			309			180			136		-50.7	%		785			625		-20.4	%
Amounts capitalized		(102)			(110)			(98)			(115)			(129)		-26.5	%		(300)			(342)		-14.0	%
Amortization		109			107			106			107			107		-1.8	%		324			320		-1.2	%
Total operating expenses		915			(846)			952			858			836		-8.6	%		2,636			2,645		0.3	%
Income (loss) from operations before taxes		282			321			317			351			359		27.3	%		892			1,028		15.2	%
Federal income tax expense (benefit)		34			42			58			54			58		70.6	%		98			171		74.5	%
Income (loss) from operations	$	248		$	279		$	259		$	297		$	301		21.4	%	$	794		$	857		7.9	%
Effective Federal Income Tax Rate		12.0	%		12.9	%		18.5	%		15.4	%		16.3	%				11.1	%		16.7	%
Return on Average Account Balances, net of
reinsurance (bps)		66			76			67			75			74		8			71			72		1
Account Balances, Net of Reinsurance –
End-of-Period
RILA account balances	$	25,006		$	27,533		$	30,100		$	31,633		$	33,245		32.9	%	$	25,006		$	33,245		32.9	%
Other variable account balances without GLBs		42,196			45,499			47,657			47,321			48,899		15.9	%		42,196			48,899		15.9	%
Other variable account balances with GLBs		64,754			69,458			71,822			70,664			72,664		12.2	%		64,754			72,664		12.2	%
Fixed account balances		14,694			10,336			10,214			10,251			10,349		-29.6	%		14,694			10,349		-29.6	%
Total account balances	$	146,650		$	152,826		$	159,793		$	159,869		$	165,157		12.6	%	$	146,650		$	165,157		12.6	%
Percent variable account balances with GLBs		44.2	%		45.4	%		44.9	%		44.2	%		44.0	%				44.2	%		44.0	%
Fee Income, Gross of Hedge Allowance	$	758		$	752		$	780		$	787		$	802		5.8	%	$	2,253		$	2,369		5.1	%
Net Investment Income, Net of Reinsurance (3)		409			385			390			403			412		0.7	%		1,181			1,205		2.0	%
Interest Credited, Net of Reinsurance (3)		270			255			245			254			270		0.0%			742			769		3.6	%
(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.

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Lincoln Financial
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
																		As of or For the
	As of or For the Three Months Ended																	Nine Months Ended
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24	Change			9/30/23			9/30/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	289		$	295		$	288		$	293		$	286	-1.0	%	$	867		$	866		-0.1	%
Fee income		739			741			672			677			672	-9.1	%		2,269			2,021		-10.9	%
Net investment income		689			629			581			533			597	-13.4	%		2,083			1,710		-17.9	%
Operating realized gain (loss)		(2)			(2)			(2)			(2)			(2)	0.0%			(5)			(5)		0.0%
Other revenues (1)		8			4			2			10			36	NM			27			48		77.8	%
Total operating revenues		1,723			1,667			1,541			1,511			1,589	-7.8	%		5,241			4,640		-11.5	%
Operating expenses:
Benefits		1,129			1,083			928			948			895	-20.7	%		3,354			2,769		-17.4	%
Interest credited		325			312			294			299			302	-7.1	%		978			894		-8.6	%
Policyholder liability remeasurement (gain) loss		183			(37)			59			16			42	-77.0	%		183			117		-36.1	%
Commissions incurred		129			150			113			113			120	-7.0	%		421			346		-17.8	%
Other expenses incurred		215			223			204			193			198	-7.9	%		647			596		-7.9	%
Amounts capitalized		(152)			(175)			(133)			(133)			(140)	7.9	%		(496)			(406)		18.1	%
Amortization of DAC and VOBA		123			125			126			126			127	3.3	%		371			379		2.2	%
Amortization of deferred loss on business
sold through reinsurance (1)		—			—			—			—			24	NM			—			24		NM
Total operating expenses		1,952			1,681			1,591			1,562			1,568	-19.7	%		5,458			4,719		-13.5	%
Income (loss) from operations before taxes		(229)			(14)			(50)			(51)			21	109.2	%		(217)			(79)		63.6	%
Federal income tax expense (benefit)		(56)			(8)			(15)			(16)			(1)	98.2	%		(64)			(31)		51.6	%
Income (loss) from operations	$	(173)		$	(6)		$	(35)		$	(35)		$	22	112.7	%	$	(153)		$	(48)		68.6	%
Effective Federal Income Tax Rate		24.2	%		59.7	%		29.7	%		31.2	%		NM				29.3	%		39.6	%
Average Account Balances, Net of Reinsurance	$	50,130		$	45,608		$	42,280		$	43,230		$	44,055	-12.1	%	$	49,760		$	43,188		-13.2	%
In-Force Face Amount
UL and other	$	364,586		$	365,938		$	365,507		$	365,030		$	364,766	0.0%		$	364,586		$	364,766		0.0%
Term insurance		721,927			722,620			720,745			719,485			717,071	-0.7	%		721,927			717,071		-0.7	%
Total in-force face amount	$	1,086,513		$	1,088,558		$	1,086,252		$	1,084,515		$	1,081,837	-0.4	%	$	1,086,513		$	1,081,837		-0.4	%
(1) Effective in the third quarter of 2024, we collapsed the amortization of deferred gain (loss) on business sold through reinsurance line item, reclassifying the deferred gain
amortization to other revenues and presenting the amortization of deferred loss within operating expenses. For prior periods, the amortization of deferred gain (loss)
on business sold through reinsurance is presented on a net basis within other revenues.

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Lincoln Financial
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
																		As of or For the
	As of or For the Three Months Ended																	Nine Months Ended
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24		Change			9/30/23			9/30/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,251		$	1,250		$	1,285		$	1,298		$	1,288		3.0	%	$	3,765		$	3,871		2.8	%
Net investment income		84			85			85			88			87		3.6	%		254			261		2.8	%
Other revenues		53			52			55			55			57		7.5	%		157			167		6.4	%
Total operating revenues		1,388			1,387			1,425			1,441			1,432		3.2	%		4,176			4,299		2.9	%
Operating expenses:
Benefits		979			984			1,030			1,032			1,007		2.9	%		3,036			3,069		1.1	%
Interest credited		1			1			1			1			1		0.0%			4			3		-25.0	%
Policyholder liability remeasurement (gain) loss		(39)			(28)			(67)			(124)			(88)		NM			(260)			(279)		-7.3	%
Commissions incurred		109			119			109			113			114		4.6	%		327			336		2.8	%
Other expenses incurred		245			246			246			260			255		4.1	%		737			762		3.4	%
Amounts capitalized		(26)			(34)			(29)			(42)			(30)		-15.4	%		(79)			(101)		-27.8	%
Amortization		33			34			34			36			36		9.1	%		98			106		8.2	%
Total operating expenses		1,302			1,322			1,324			1,276			1,295		-0.5	%		3,863			3,896		0.9	%
Income (loss) from operations before taxes		86			65			101			165			137		59.3	%		313			403		28.8	%
Federal income tax expense (benefit)		18			13			21			35			28		55.6	%		66			85		28.8	%
Income (loss) from operations	$	68		$	52		$	80		$	130		$	109		60.3	%	$	247		$	318		28.7	%
Effective Federal Income Tax Rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%				21.0	%		21.0	%
Operating Margin (1)		5.4	%		4.1	%		6.2	%		10.0	%		8.4	%				6.6	%		8.2	%
Loss Ratios by Product Line
Life		76.8	%		67.2	%		76.1	%		75.6	%		68.1	%				76.3	%		73.2	%
Disability		74.1	%		83.1	%		74.2	%		65.9	%		73.2	%				72.1	%		71.1	%
Dental		75.9	%		75.4	%		76.5	%		78.9	%		79.0	%				76.4	%		78.1	%
Total		75.2	%		76.6	%		75.0	%		70.1	%		71.4	%				73.8	%		72.2	%
(1) Operating margin is calculated by dividing income (loss) from operations by insurance premiums.

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Lincoln Financial
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)
																		As of or For the
	As of or For the Three Months Ended																	Nine Months Ended
		9/30/23			12/31/23			3/31/24			6/30/24			9/30/24		Change			9/30/23			9/30/24		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	66		$	67		$	70		$	72		$	74		12.1	%	$	195		$	216		10.8	%
Net investment income		251			248			244			247			253		0.8	%		765			744		-2.7	%
Other revenues		10			7			8			8			8		-20.0	%		28			24		-14.3	%
Total operating revenues		327			322			322			327			335		2.4	%		988			984		-0.4	%
Operating expenses:
Interest credited		165			164			166			168			170		3.0	%		501			505		0.8	%
Commissions incurred		22			22			23			26			28		27.3	%		65			76		16.9	%
Other expenses incurred		90			93			92			87			88		-2.2	%		267			267		0.0%
Amounts capitalized		(5)			(6)			(5)			(5)			(5)		0.0%			(15)			(15)		0.0%
Amortization		5			5			5			5			5		0.0%			13			14		7.7	%
Total operating expenses		277			278			281			281			286		3.2	%		831			847		1.9	%
Income (loss) from operations before taxes		50			44			41			46			49		-2.0	%		157			137		-12.7	%
Federal income tax expense (benefit)		7			6			5			6			5		-28.6	%		24			17		-29.2	%
Income (loss) from operations	$	43		$	38		$	36		$	40		$	44		2.3	%	$	133		$	120		-9.8	%
Effective Federal Income Tax Rate		13.9	%		13.2	%		12.9	%		13.2	%		10.0	%				15.1	%		12.0	%
Return on Average Account Balances (bps)		18			16			14			15			16		(2)			19			15		(4)
Net Flows by Market
Small Market	$	21		$	115		$	(32)		$	43		$	11		-47.6	%	$	267		$	22		-91.8	%
Mid - Large Market		83			78			847			206			1,069		NM			1,202			2,122		76.5	%
Multi-Fund® and Other		(376)			(525)			(424)			(446)			(429)		-14.1	%		(1,005)			(1,299)		-29.3	%
Net Flows – Trailing Twelve Months	$	515		$	132		$	(12)		$	(410)		$	513		-0.4	%	$	515		$	513		-0.4	%
Base Spreads, Excluding Variable
Investment Income (1)		1.10	%		1.09	%		1.02	%		1.03	%		1.05	%	(5)			1.14	%		1.03	%	(11)
(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums.

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Lincoln Financial
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Other Operations
Operating revenues:
Insurance premiums (1)	$	1	$	(930)	$	2	$	1	$	1	0.0%		$	8	$	4	-50.0	%
Net investment income		37		37		16		27		34	-8.1	%		110		77	-30.0	%
Other revenues		—		9		9		11		17	NM			9		37	NM
Total operating revenues		38		(884)		27		39		52	36.8	%		127		118	-7.1	%
Operating expenses:
Benefits (1)		17		(918)		6		4		(3)	NM			53		10	-81.1	%
Interest credited		9		9		9		8		8	-11.1	%		27		26	-3.7	%
Policyholder liability remeasurement (gain) loss		(5)		—		(1)		1		—	100.0	%		(3)		—	100.0	%
Commissions and other expenses (2)		65		77		51		62		66	1.5	%		172		177	2.9	%
Interest and debt expense		84		81		81		86		86	2.4	%		250		253	1.2	%
Total operating expenses (2)		170		(751)		146		161		157	-7.6	%		499		466	-6.6	%
Income (loss) from operations before taxes (2)		(132)		(133)		(119)		(122)		(105)	20.5	%		(372)		(348)	6.5	%
Federal income tax expense (benefit) (2)		(30)		(33)		(23)		(25)		(21)	30.0	%		(79)		(72)	8.9	%
Income (loss) from operations (2)	$	(102)	$	(100)	$	(96)	$	(97)	$	(84)	17.6	%	$	(293)	$	(276)	5.8	%
(1) Day one impacts related to the fourth quarter 2023 reinsurance transaction contributed to line item volatility in the fourth quarter.
(2) Prior period impacts have been recast to conform to the current period presentation. See page 1 for further information.

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Lincoln Financial
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended												For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	12,316	$	12,341	$	12,397	$	12,405	$	12,435	1.0	%	$	12,235	$	12,397	1.3	%
Business acquired (sold) through reinsurance		—		(11)		—		—		—	NM			—		—	NM
Deferrals		289		333		274		299		309	6.9	%		899		881	-2.0	%
Operating amortization		(264)		(266)		(266)		(269)		(269)	-1.9	%		(793)		(803)	-1.3	%
Balance as of end-of-period	$	12,341	$	12,397	$	12,405	$	12,435	$	12,475	1.1	%	$	12,341	$	12,475	1.1	%
DFEL
Balance as of beginning-of-period	$	5,494	$	5,695	$	5,901	$	6,099	$	6,306	14.8	%	$	5,091	$	5,901	15.9	%
Deferrals		275		281		272		284		289	5.1	%		817		845	3.4	%
Operating amortization		(74)		(75)		(74)		(77)		(78)	-5.4	%		(213)		(229)	-7.5	%
Balance as of end-of-period	$	5,695	$	5,901	$	6,099	$	6,306	$	6,517	14.4	%	$	5,695	$	6,517	14.4	%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,250	$	5,132	$	4,981	$	4,842	$	4,707	-10.4	%	$	5,250	$	4,707	-10.3	%

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Lincoln Financial
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended												For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Traditional Variable Annuities
Balance as of beginning-of-period	$	112,848	$	106,957	$	114,963	$	119,485	$	117,990	4.6	%	$	107,627	$	114,963	6.8	%
Gross deposits		889		941		934		1,054		1,163	30.8	%		2,424		3,152	30.0	%
Full surrenders and deaths		(1,559)		(1,714)		(2,142)		(2,303)		(2,382)	-52.8	%		(4,629)		(6,827)	-47.5	%
Other contract benefits		(984)		(1,147)		(1,133)		(1,130)		(1,172)	-19.1	%		(2,955)		(3,436)	-16.3	%
Net flows		(1,654)		(1,920)		(2,341)		(2,379)		(2,391)	-44.6	%		(5,160)		(7,111)	-37.8	%
Policyholder assessments		(630)		(624)		(644)		(650)		(666)	-5.7	%		(1,878)		(1,961)	-4.4	%
Change in market value and reinvestment		(3,607)		10,550		7,507		1,534		6,635	283.9	%		6,368		15,677	146.2	%
Balance as of end-of-period, gross		106,957		114,963		119,485		117,990		121,568	13.7	%		106,957		121,568	13.7	%
Account balances reinsured		(7)		(6)		(6)		(5)		(5)	28.6	%		(7)		(5)	28.6	%
Balance as of end-of-period, net	$	106,950	$	114,957	$	119,479	$	117,985	$	121,563	13.7	%	$	106,950	$	121,563	13.7	%
RILA
Balance as of beginning-of-period	$	24,407	$	25,006	$	27,533	$	30,100	$	31,633	29.6	%	$	20,130	$	27,533	36.8	%
Gross deposits		1,069		986		942		1,096		1,203	12.5	%		3,339		3,241	-2.9	%
Full surrenders and deaths		(105)		(103)		(115)		(138)		(326)	NM			(248)		(579)	NM
Other contract benefits		(20)		(45)		(42)		(14)		(18)	10.0	%		(78)		(74)	5.1	%
Net flows		944		838		785		944		859	-9.0	%		3,013		2,588	-14.1	%
Policyholder assessments		(2)		(3)		(3)		(3)		(3)	-50.0	%		(6)		(10)	-66.7	%
Change in market value and reinvestment		190		213		247		288		325	71.1	%		478		860	79.9	%
Change in fair value of embedded derivative instruments and other		(533)		1,479		1,538		304		431	180.9	%		1,391		2,274	63.5	%
Balance as of end-of-period, gross	$	25,006	$	27,533	$	30,100	$	31,633	$	33,245	32.9	%	$	25,006	$	33,245	32.9	%

20

Table of Contents

Lincoln Financial
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended												For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Fixed Annuities
Balance as of beginning-of-period	$	23,813	$	23,681	$	25,355	$	25,162	$	25,837	8.5	%	$	23,365	$	25,355	8.5	%
Gross deposits		779		2,432		973		1,673		1,017	30.6	%		2,698		3,663	35.8	%
Full surrenders and deaths		(782)		(878)		(1,213)		(1,020)		(949)	-21.4	%		(2,374)		(3,183)	-34.1	%
Other contract benefits		(161)		(187)		(197)		(172)		(173)	-7.5	%		(489)		(541)	-10.6	%
Net flows		(164)		1,367		(437)		481		(105)	36.0	%		(165)		(61)	63.0	%
Policyholder assessments		(13)		(15)		(17)		(14)		(14)	-7.7	%		(41)		(45)	-9.8	%
Reinvested interest credited		158		172		183		199		211	33.5	%		470		593	26.2	%
Change in fair value of embedded derivative instruments
and other		(113)		150		78		9		430	NM			52		517	NM
Balance as of end-of-period, gross		23,681		25,355		25,162		25,837		26,359	11.3	%		23,681		26,359	11.3	%
Account balances reinsured		(8,987)		(15,019)		(14,948)		(15,586)		(16,010)	-78.1	%		(8,987)		(16,010)	-78.1	%
Balance as of end-of-period, net	$	14,694	$	10,336	$	10,214	$	10,251	$	10,349	-29.6	%	$	14,694	$	10,349	-29.6	%
Total
Balance as of beginning-of-period	$	161,068	$	155,644	$	167,851	$	174,747	$	175,460	8.9	%	$	151,122	$	167,851	11.1	%
Gross deposits		2,737		4,359		2,849		3,823		3,383	23.6	%		8,461		10,056	18.9	%
Full surrenders and deaths		(2,446)		(2,695)		(3,470)		(3,461)		(3,657)	-49.5	%		(7,251)		(10,589)	-46.0	%
Other contract benefits		(1,165)		(1,379)		(1,372)		(1,316)		(1,363)	-17.0	%		(3,522)		(4,051)	-15.0	%
Net flows		(874)		285		(1,993)		(954)		(1,637)	-87.3	%		(2,312)		(4,584)	-98.3	%
Policyholder assessments		(645)		(642)		(664)		(667)		(683)	-5.9	%		(1,925)		(2,016)	-4.7	%
Change in market value, reinvestment and interest credited		(3,259)		10,935		7,937		2,021		7,171	NM			7,316		17,130	134.1	%
Change in fair value of embedded derivative instruments
and other		(646)		1,629		1,616		313		861	233.3	%		1,443		2,791	93.4	%
Balance as of end-of-period, gross		155,644		167,851		174,747		175,460		181,172	16.4	%		155,644		181,172	16.4	%
Account balances reinsured		(8,994)		(15,025)		(14,954)		(15,591)		(16,015)	-78.1	%		(8,994)		(16,015)	-78.1	%
Balance as of end-of-period, net	$	146,650	$	152,826	$	159,793	$	159,869	$	165,157	12.6	%	$	146,650	$	165,157	12.6	%

21

Table of Contents

Lincoln Financial
Life Insurance – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended													For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24		Change
General Account
Balance as of beginning-of-period	$	37,458	$	37,217	$	37,180	$	37,006	$	36,848	-1.6	%	$	37,694	$	37,180		-1.4	%
Gross deposits		915		1,006		850		893		899	-1.7	%		2,749		2,641		-3.9	%
Withdrawals and deaths		(378)		(359)		(364)		(389)		(369)	2.4	%		(1,095)		(1,122)		-2.5	%
Net flows		537		647		486		504		530	-1.3	%		1,654		1,519		-8.2	%
Transfers between general and separate accounts		14		7		38		74		30	114.3	%		90		143		58.9	%
Policyholder assessments		(1,124)		(1,140)		(1,124)		(1,130)		(1,129)	-0.4	%		(3,373)		(3,383)		-0.3	%
Reinvested interest credited		370		366		365		368		375	1.4	%		1,114		1,109		-0.4	%
Change in fair value of embedded derivative instruments
and other		(38)		83		61		26		38	200.0	%		38		124		226.3	%
Balance as of end-of-period, gross		37,217		37,180		37,006		36,848		36,692	-1.4	%		37,217		36,692		-1.4	%
Account balances reinsured		(5,503)		(15,777)		(15,607)		(15,467)		(15,301)	NM			(5,503)		(15,301)		NM
Balance as of end-of-period, net	$	31,714	$	21,403	$	21,399	$	21,381	$	21,391	-32.6	%	$	31,714	$	21,391		-32.6	%
Separate Account
Balance as of beginning-of-period	$	23,409	$	22,642	$	25,150	$	27,007	$	27,381	17.0	%		20,920		$	25,150	20.2	%
Gross deposits		357		452		358		337		363	1.7	%		1,178		1,058		-10.2	%
Withdrawals and deaths		(73)		(86)		(103)		(90)		(155)	NM			(227)		(347)		-52.9	%
Net flows		284		366		255		247		208	-26.8	%		951		711		-25.2	%
Transfers between general and separate accounts		(12)		(7)		(37)		(76)		(30)	NM			(88)		(143)		-62.5	%
Policyholder assessments		(238)		(250)		(246)		(247)		(248)	-4.2	%		(714)		(742)		-3.9	%
Change in market value and reinvestment		(801)		2,399		1,885		450		1,610	NM			1,573		3,945		150.8	%
Balance as of end-of-period, gross		22,642		25,150		27,007		27,381		28,921	27.7	%		22,642		28,921		27.7	%
Account balances reinsured		(4,632)		(5,062)		(5,338)		(5,371)		(5,593)	-20.7	%		(4,632)		(5,593)		-20.7	%
Balance as of end-of-period, net	$	18,010	$	20,088	$	21,669	$	22,010	$	23,328	29.5	%	$	18,010	$	23,328		29.5	%
Total
Balance as of beginning-of-period	$	60,867	$	59,859	$	62,330	$	64,013	$	64,229	5.5	%	$	58,614	$	62,330		6.3	%
Gross deposits		1,272		1,458		1,208		1,230		1,262	-0.8	%		3,927		3,699		-5.8	%
Withdrawals and deaths		(451)		(445)		(467)		(479)		(524)	-16.2	%		(1,322)		(1,469)		-11.1	%
Net flows		821		1,013		741		751		738	-10.1	%		2,605		2,230		-14.4	%
Transfers between general and separate accounts		2		—		1		(2)		—				2		—		-100.0	%
Policyholder assessments		(1,362)		(1,390)		(1,370)		(1,377)		(1,377)	-1.1	%		(4,087)		(4,125)		-0.9	%
Change in market value and reinvestment		(431)		2,765		2,250		818		1,985	NM			2,687		5,054		88.1	%
Change in fair value of embedded derivative instruments
and other		(38)		83		61		26		38	200.0	%		38		124		226.3	%
Balance as of end-of-period, gross		59,859		62,330		64,013		64,229		65,613	9.6	%		59,859		65,613		9.6	%
Account balances reinsured		(10,135)		(20,839)		(20,945)		(20,838)		(20,894)	NM			(10,135)		(20,894)		NM
Balance as of end-of-period, net	$	49,724	$	41,491	$	43,068	$	43,391	$	44,719	-10.1	%	$	49,724	$	44,719		-10.1	%

22

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Lincoln Financial
Retirement Plan Services – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended												For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
General Account
Balance as of beginning-of-period	$	24,430	$	24,099	$	23,784	$	23,586	$	23,598	-3.4	%	$	25,138	$	23,784	-5.4	%
Gross deposits		709		750		790		846		944	33.1	%		2,026		2,580	27.3	%
Withdrawals		(1,168)		(1,233)		(1,203)		(1,072)		(1,095)	6.3	%		(3,262)		(3,370)	-3.3	%
Net flows		(459)		(483)		(413)		(226)		(151)	67.1	%		(1,236)		(790)	36.1	%
Transfers between fixed and variable accounts		(38)		2		50		69		110	NM			(297)		230	177.4	%
Policyholder assessments		(3)		(3)		(3)		(3)		(4)	-33.3	%		(10)		(10)	0.0%
Reinvested interest credited		169		169		168		172		174	3.0	%		504		513	1.8	%
Balance as of end-of-period	$	24,099	$	23,784	$	23,586	$	23,598	$	23,727	-1.5	%	$	24,099	$	23,727	-1.5	%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	72,156	$	69,834	$	77,201	$	83,226	$	84,274	16.8	%	$	63,592	$	77,201	21.4	%
Gross deposits		1,991		2,222		3,012		2,436		3,236	62.5	%		6,780		8,685	28.1	%
Withdrawals		(1,804)		(2,071)		(2,208)		(2,407)		(2,434)	-34.9	%		(5,080)		(7,050)	-38.8	%
Net flows		187		151		804		29		802	NM			1,700		1,635	-3.8	%
Transfers between fixed and variable accounts		42		(10)		(34)		(69)		(106)	NM			306		(210)	NM
Policyholder assessments		(62)		(62)		(64)		(66)		(70)	-12.9	%		(178)		(201)	-12.9	%
Change in market value and reinvestment		(2,489)		7,288		5,319		1,154		5,169	NM			4,414		11,644	163.8	%
Balance as of end-of-period	$	69,834	$	77,201	$	83,226	$	84,274	$	90,069	29.0	%	$	69,834	$	90,069	29.0	%
Total
Balance as of beginning-of-period	$	96,586	$	93,933	$	100,985	$	106,812	$	107,872	11.7	%	$	88,730	$	100,985	13.8	%
Gross deposits		2,700		2,972		3,802		3,282		4,180	54.8	%		8,806		11,265	27.9	%
Withdrawals		(2,972)		(3,304)		(3,411)		(3,479)		(3,529)	-18.7	%		(8,342)		(10,420)	-24.9	%
Net flows		(272)		(332)		391		(197)		651	NM			464		845	82.1	%
Transfers between fixed and variable accounts		4		(8)		16		—		4	0.0%			9		20	122.2	%
Policyholder assessments		(65)		(65)		(67)		(69)		(74)	-13.8	%		(188)		(211)	-12.2	%
Change in market value and reinvestment		(2,320)		7,457		5,487		1,326		5,343	NM			4,918		12,157	147.2	%
Balance as of end-of-period	$	93,933	$	100,985	$	106,812	$	107,872	$	113,796	21.1	%	$	93,933	$	113,796	21.1	%

23

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Lincoln Financial
Fixed-Income Asset Class
Unaudited (millions of dollars)
	As of 9/30/2023					As of 12/31/2023					As of 9/30/2024
	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	$	16,923		15.1	%	$	13,510		15.2	%	$	12,472		14.3	%
Basic industry		4,163		3.7	%		2,986		3.3	%		2,906		3.3	%
Capital goods		7,070		6.3	%		5,568		6.2	%		5,523		6.3	%
Communications		4,331		3.9	%		3,110		3.5	%		2,792		3.2	%
Consumer cyclical		5,926		5.3	%		5,268		5.8	%		5,403		6.2	%
Consumer non-cyclical		17,372		15.6	%		13,458		15.1	%		12,801		14.8	%
Energy		4,503		4.0	%		2,776		3.1	%		2,571		3.0	%
Technology		5,679		5.1	%		4,376		4.9	%		4,041		4.6	%
Transportation		3,690		3.3	%		3,233		3.6	%		3,191		3.7	%
Industrial other		2,298		2.1	%		2,107		2.4	%		2,174		2.5	%
Utilities		14,317		12.9	%		11,613		13.0	%		11,269		12.9	%
Government-related entities		1,798		1.6	%		1,278		1.4	%		1,216		1.4	%
Residential mortgage-backed securities ("RMBS")
Agency backed		1,803		1.6	%		1,505		1.7	%		1,558		1.8	%
Non-agency backed		381		0.3	%		332		0.4	%		320		0.4	%
Commercial mortgage-backed securities ("CMBS")		1,963		1.8	%		1,546		1.7	%		1,673		1.9	%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")		9,202		8.2	%		8,325		9.3	%		8,124		9.3	%
Other ABS		3,957		3.5	%		4,220		4.7	%		5,375		6.2	%
Municipals		5,247		4.7	%		2,973		3.3	%		2,689		3.1	%
United States and foreign government		744		0.7	%		730		1.1	%		699		0.8	%
Hybrid & redeemable preferred securities		361		0.3	%		237		0.3	%		243		0.3	%
Total fixed maturity AFS securities, net of modified coinsurance and funds withheld
investments and allowance for credit losses, at amortized cost		111,728		100.0	%		89,151		100.0	%		87,040		100.0	%
Trading Securities, Net of Modified Coinsurance and Funds Withheld Investments		670					626					515
Equity Securities, Net of Modified Coinsurance and Funds Withheld Investments		295					275					263
Total fixed maturity AFS, trading and equity securities, net of modified coinsurance and funds
withheld investments and allowance for credit losses, at amortized cost		112,693					90,052					87,818
Modified coinsurance and funds withheld investments		2,806					10,215					12,426
Total fixed maturity AFS, trading and equity securities	$	115,499				$	100,267				$	100,244
(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 24 and page 25 as we have a limited economic interest in the assets.

24

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Lincoln Financial
Fixed-Income Credit Quality
Unaudited (millions of dollars)
	As of 9/30/2023					As of 12/31/2023					As of 9/30/2024
	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)	$	65,612		58.7	%	$	51,738		58.0	%	$	51,370		58.9	%
NAIC 2 (BBB)		42,676		38.2	%		34,475		38.7	%		32,774		37.7	%
Total investment grade		108,288		96.9	%		86,213		96.7	%		84,144		96.6	%
NAIC 3 (BB)		1,598		1.4	%		1,090		1.2	%		1,008		1.2	%
NAIC 4 (B)		1,729		1.6	%		1,760		2.0	%		1,828		2.1	%
NAIC 5 (CCC and lower)		97		0.1	%		86		0.1	%		55		0.1	%
NAIC 6 (in or near default)		16		0.0	%		2		0.0	%		5		0.0	%
Total below investment grade		3,440		3.1	%		2,938		3.3	%		2,896		3.4	%
Total	$	111,728		100.0	%	$	89,151		100.0	%	$	87,040		100.0	%
Commercial Mortgage Loans, Net of Modified Coinsurance and Funds Withheld Investments,
at Amortized Cost (1)(2)
CM1 (AAA-A)	$	13,451		79.6	%	$	13,687		80.4	%	$	13,665		77.8	%
CM2 (BBB)		3,387		20.0	%		3,248		19.1	%		3,819		21.7	%
CM3-7 (BB and lower) (3)		69		0.4	%		84		0.5	%		93		0.5	%
Total	$	16,907		100.0	%	$	17,019		100.0	%	$	17,577		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	$	79,063		61.5	%	$	65,425		61.6	%	$	65,035		62.1	%
BBB		46,063		35.8	%		37,723		35.5	%		36,593		35.0	%
BB and lower		3,509		2.7	%		3,022		2.9	%		2,989		2.9	%
Total	$	128,635		100.0	%	$	106,170		100.0	%	$	104,617		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.
(3) Includes Mortgage Fund LPs classified as CM3 that are included in "Other Investments" on the Consolidated Balance Sheets

25

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Lincoln Financial
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended (1)												For the Nine Months Ended (1)
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Net Income
Net income (loss) available to common stockholders – diluted	$	819	$	(1,246)	$	1,191	$	884	$	(562)	NM		$	410	$	1,511	269	%
Less:
Preferred stock dividends declared		(34)		(11)		(34)		(11)		(34)	0.0%			(71)		(80)	(13)	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		—		—		3		—		—	NM			(2)		3	250	%
Net income (loss)		853		(1,235)		1,222		895		(528)	NM			483		1,588	229	%
Less:
Net annuity product features, pre-tax		1,322		(1,008)		1,450		252		(381)	NM			1,076		1,319	23	%
Net life insurance product features, pre-tax		108		(225)		(130)		4		(125)	NM			(168)		(253)	(51)	%
Credit loss-related adjustments, pre-tax		(27)		(27)		(1)		(34)		(88)	NM			(53)		(124)	NM
Investment gains (losses), pre-tax (2)		(400)		167		(81)		(230)		(105)	74	%		(1,126)		(416)	63	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, pre-tax (3)		(29)		(776)		194		201		(446)	NM			(27)		(51)	(89)	%
Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses, pre-tax (4)		—		—		—		584		(2)	NM			—		582	NM
Other items, pre-tax (5)(6)(7)(8)		(12)		(32)		(186)		(33)		(19)	(58)	%		(23)		(238)	NM
Income tax benefit (expense) related
to the above pre-tax items		(193)		403		(268)		(184)		246	227	%		76		(202)	NM
Total adjustments		769		(1,498)		978		560		(920)	NM			(245)		617	NM
Adjusted income (loss) from operations		84		263		244		335		392	NM			728		971	33	%
Add:
Preferred stock dividends declared		(34)		(11)		(34)		(11)		(34)	0.0%			(71)		(80)	(13)	%
Adjusted income (loss) from operations available
to common stockholders	$	50	$	252	$	210	$	324	$	358	NM		$	657	$	891	36	%
(1) Prior period impacts have been recast to conform to the current period presentation. See page 1 for further information.
(2) Includes intent to sell impairments during the second and third quarters of 2023 of certain fixed maturity AFS securities in an unrealized loss position, resulting from the
Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction.
(3) Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
(4) Relates to the sale of our wealth management business, which provided approximately $650 million of statutory capital benefit.
(continued on following page)

26

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Lincoln Financial
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
(continued from the previous page)
(5) Includes certain legal accruals of $(12) million in the third quarter of 2023 and $(114) million primarily related to the settlement of cost of insurance litigation in
the first quarter of 2024.
(6) Includes severance expense related to initiatives that realign the workforce of $(3) million, $(3) million, $(49) million, $(7) million and $(16) million in the first quarter of 2023, second
quarter of 2023, first quarter of 2024, second quarter of 2024 and third quarter of 2024, respectively.
(7) Includes transaction and integration costs related to mergers, acquisitions and divestitures of $(9) million, $(1) million, $(26) million, $(10) million, $(27) million and $(2) million
for the second quarter of 2023, third, quarter of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024 and third quarter of 2024, respectively.
(8) Includes deferred compensation mark-to-market adjustment of $12 million, $(8) million, $1 million, $(6) million, $(13) million, $1 million and $(1) million in the first quarter of 2023,
second quarter of 2023, third quarter of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024 and third quarter of 2024, respectively.
	For the Three Months Ended													For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Revenues
Total revenues	$	4,203	$	700	$	4,116	$	5,153	$	4,111	-2.2	%	$	10,946	$	13,380	22.2	%
Less:
Revenue adjustments from annuity
and life insurance product features		(14)		(631)		(580)		105		149	NM			(1,908)		(325)	83.0	%
Credit loss-related adjustments		(27)		(27)		(1)		(34)		(88)	NM			(53)		(124)	NM
Investment gains (losses) (1)		(400)		167		(81)		(230)		(105)	73.8	%		(1,126)		(416)	63.1	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans (2)		(29)		(776)		194		201		(446)	NM			(27)		(51)	-88.9	%
Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses (3)		—		—		—		584		(2)	NM			—		582	NM
Adjusted operating revenues	$	4,673	$	1,967	$	4,584	$	4,527	$	4,603	-1.5	%	$	14,060	$	13,714	-2.5	%
(1) Includes intent to sell impairments during the second and third quarters of 2023 of certain fixed maturity AFS securities in an unrealized loss position, resulting from the
Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction.
(2) Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
(3) Relates to the sale of our wealth management business, which provided approximately $650 million of statutory capital benefit.

27

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Lincoln Financial
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended (1)													For the Nine Months Ended (1)
Earnings (Loss) Per Common Share – Diluted		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Net income (loss)	$	4.79	$	(7.35)	$	6.93	$	5.11	$	(3.29)	NM		$	2.40	$	8.75	264.6	%
Less:
Net annuity product features, pre-tax		7.74		(5.96)		8.43		1.46		(2.23)	NM			6.29		7.65	21.6	%
Net life insurance product features, pre-tax		0.63		(1.33)		(0.75)		0.02		(0.73)	NM			(0.99)		(1.46)	-47.5	%
Credit loss-related adjustments, pre-tax		(0.16)		(0.15)		—		(0.20)		(0.53)	NM			(0.31)		(0.72)	NM
Investment gains (losses), pre-tax		(2.34)		0.98		(0.47)		(1.33)		(0.61)	73.9	%		(6.60)		(2.41)	63.5	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, pre-tax		(0.18)		(4.57)		1.13		1.16		(2.61)	NM			(0.15)		(0.30)	-100.0	%
Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses, pre-tax		—		—		—		3.38		(0.01)	NM			—		3.37	NM
Other items, pre-tax (2)(3)(4)(5)		(0.07)		(0.18)		(1.08)		(0.19)		(0.11)	-57.1	%		(0.14)		(1.38)	NM
Income tax benefit (expense) related
to the above pre-tax items		(1.12)		2.37		(1.55)		(1.06)		1.44	228.6	%		0.45		(1.16)	NM
Adjustment attributable to using different average
diluted shares for adjusted income (loss) from
operations as compared to net income (loss) (6)		—		0.02		—		—		0.04	NM			—		—	NM
Adjusted income (loss) from operations	$	0.29	$	1.47	$	1.22	$	1.87	$	2.06	NM		$	3.85	$	5.16	34.0	%
(1) Prior period impacts have been recast to conform to the current period presentation. See page 1 for further information.
(2) Includes certain legal accruals of $(0.08) in the third quarter of 2023 and $(0.65) primarily related to the settlement of cost of insurance litigation in the
first quarter of 2024.
(3) Includes severance expense related to initiatives that realign the workforce of $(0.02), $(0.02), $(0.29), $(0.04) and $(0.09) in the first quarter of 2023, second
quarter of 2023, first quarter of 2024, second quarter of 2024 and third quarter of 2024, respectively.
(4) Includes transaction and integration costs related to mergers, acquisitions and divestitures of $(0.05), $(0.14), $(0.06), $(0.15) and $(0.01) for the second quarter of 2023,
fourth quarter of 2023, first quarter of 2024, second quarter of 2024 and third quarter of 2024, respectively.
(5) Includes deferred compensation mark-to-market adjustment of $0.07, $(0.05), $0.01, $(0.04), $(0.08) and $(0.01) in the first quarter of 2023,
second quarter of 2023, third quarter of 2023, fourth quarter of 2023, first quarter of 2024 and third quarter of 2024, respectively.
(6) In periods where net loss or adjusted 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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Table of Contents

Lincoln Financial
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended													For the Nine Months Ended
		9/30/23		12/31/23		3/31/24		6/30/24		9/30/24	Change			9/30/23		9/30/24	Change
Stockholders’ Equity, End-of-Period
Stockholders' equity	$	3,199	$	6,893	$	7,546	$	7,949	$	9,013	181.7	%	$	3,199	$	9,013	181.7	%
Less:
Preferred stock		986		986		986		986		986	0.0%			986		986	0.0%
AOCI		(8,480)		(3,476)		(3,951)		(4,369)		(2,682)	68.4	%		(8,480)		(2,682)	68.4	%
Stockholders’ equity, excluding AOCI and preferred stock		10,693		9,383		10,511		11,332		10,709	0.1	%		10,693		10,709	0.1	%
MRB-related impacts		1,545		1,083		2,575		2,673		2,147	39.0	%		1,545		2,147	39.0	%
GLB and GDB hedge instruments gains (losses)		(1,630)		(2,085)		(2,675)		(2,770)		(2,763)	-69.5	%		(1,630)		(2,763)	-69.5	%
Reinsurance-related embedded derivatives and portfolio gains (losses) (1)		NM		(638)		(476)		(269)		(642)				NM		(642)
Adjusted stockholders' equity (1)	$	10,778	$	11,023	$	11,087	$	11,698	$	11,967	11.0	%	$	10,778	$	11,967	11.0	%
Stockholders’ Equity, Average
Stockholders' equity	$	4,509	$	5,046	$	7,219	$	7,747	$	8,481	88.1	%	$	5,567	$	7,816	40.4	%
Less:
Preferred stock		986		986		986		986		986	0.0%			986		986	0.0%
AOCI		(6,792)		(5,979)		(3,714)		(4,160)		(3,526)	48.1	%		(5,425)		(3,800)	30.0	%
Stockholders’ equity, excluding AOCI and preferred stock		10,315		10,039		9,947		10,921		11,021	6.8	%		10,006		10,630	6.2	%
MRB-related impacts		986		1,314		1,829		2,624		2,410	144.4	%		(95)		2,288	NM
GLB and GDB hedge instruments gains (losses)		(1,519)		(1,857)		(2,380)		(2,723)		(2,767)	-82.2	%		(921)		(2,623)	NM
Reinsurance-related embedded derivatives and portfolio gains (losses) (1)		NM		(318)		(557)		(372)		(455)				NM		(462)
Adjusted average stockholders' equity (1)	$	10,848	$	10,900	$	11,055	$	11,392	$	11,833	9.1	%	$	11,022	$	11,427	3.7	%
Book Value Per Common Share
Book value per share	$	13.04	$	34.81	$	38.46	$	40.78	$	46.97	260.2	%	$	13.04	$	46.97	260.2	%
Less:
AOCI		(49.99)		(20.49)		(23.17)		(25.59)		(15.70)	68.6	%		(49.99)		(15.70)	68.6	%
Book value per share, excluding AOCI		63.03		55.30		61.63		66.37		62.67	-0.6	%		63.03		62.67	-0.6	%
Less:
MRB-related gains (losses)		9.11		6.38		15.10		15.66		12.56	37.9	%		9.11		12.56	37.9	%
GLB and GDB hedge instruments gains (losses)		(9.61)		(12.29)		(15.69)		(16.22)		(16.17)	-68.3	%		(9.61)		(16.17)	-68.3	%
Reinsurance-related embedded derivatives and portfolio gains (losses) (1)		NM		(3.76)		(2.79)		(1.58)		(3.76)				NM		(3.76)
Adjusted book value per share (1)	$	63.53	$	64.97	$	65.01	$	68.51	$	70.04	10.2	%	$	63.53	$	70.04	10.2	%
(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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