Lincoln National (LNC) 8-K Lincoln Financial Reports 2024 Fourth Quarter and Full Year Results

Statistical Supplement

Fourth 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 additional items that are not indicative of the ongoing operations of

the business and may obscure trends in the underlying performance of the Company. The twelve month period ended December 31, 2023, has been recast for such third quarter 2024 revisions

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 and regulatory 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”); gains (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 accumulated other comprehensive income (loss) (“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 hedge 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.

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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.

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 February 6, 2025, 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 February 6, 2025
					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 Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Revenues
Insurance premiums	$	(1,086)	$	1,601	$	1,625	$	1,614	$	1,586	246.0	%	$	3,672	$	6,425	75.0	%
Fee income		1,361		1,324		1,339		1,352		1,387	1.9	%		5,467		5,402	-1.2	%
Net investment income		1,411		1,346		1,332		1,411		1,435	1.7	%		5,879		5,525	-6.0	%
Realized gain (loss)		(1,245)		(434)		663		(431)		470	137.8	%		(4,311)		269	106.2	%
Other revenues		259		279		194		165		185	-28.6	%		938		821	-12.5	%
Total revenues		700		4,116		5,153		4,111		5,063	NM			11,645		18,442	58.4	%
Expenses
Benefits		(497)		2,003		2,008		1,937		1,970	NM			6,138		7,918	29.0	%
Interest credited		824		822		853		880		888	7.8	%		3,248		3,443	6.0	%
Market risk benefit (gain) loss		568		(1,907)		(136)		657		(1,291)	NM			(2,264)		(2,677)	-18.2	%
Policyholder liability remeasurement (gain) loss		(84)		(12)		(105)		(50)		(23)	72.6	%		(152)		(190)	-25.0	%
Commissions and other expenses		1,421		1,601		1,351		1,304		1,336	-6.0	%		5,492		5,590	1.8	%
Interest and debt expense		81		81		86		86		83	2.5	%		331		336	1.5	%
Total expenses		2,313		2,588		4,057		4,814		2,963	28.1	%		12,793		14,420	12.7	%
Income (loss) before taxes		(1,613)		1,528		1,096		(703)		2,100	230.2	%		(1,148)		4,022	NM
Federal income tax expense (benefit)		(378)		306		201		(175)		414	209.5	%		(396)		747	288.6	%
Net income (loss)		(1,235)		1,222		895		(528)		1,686	236.5	%		(752)		3,275	NM
Preferred stock dividends declared		(11)		(34)		(11)		(34)		(11)	0.0%			(82)		(91)	-11.0	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		—		3		—		—		—	NM			(1)		3	NM
Net income (loss) available to common
stockholders – diluted	$	(1,246)	$	1,191	$	884	$	(562)	$	1,675	234.4	%	$	(835)	$	3,187	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	(7.35)	$	6.93	$	5.11	$	(3.29)	$	9.63	231.0	%	$	(4.92)	$	18.41	NM

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Lincoln Financial
Consolidated Balance Sheets
Unaudited (millions of dollars)
		As of
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	69,657	$	68,533	$	67,313	$	70,234	$	66,450	-4.6%
U.S. government bonds		393		391		389		398		391	-0.5%
State and municipal bonds		2,790		2,743		2,564		2,567		2,371	-15.0%
Foreign government bonds		283		263		260		252		237	-16.3%
Residential mortgage-backed securities		1,773		1,760		1,795		1,882		1,863	5.1%
Commercial mortgage-backed securities		1,424		1,484		1,542		1,643		1,665	16.9%
Asset-backed securities		12,171		12,349		13,072		13,444		13,880	14.0%
Hybrid and redeemable preferred securities		247		241		239		262		254	2.8%
Total fixed maturity AFS securities, net of allowance for credit losses		88,738		87,764		87,174		90,682		87,111	-1.8%
Trading securities		2,359		2,227		2,201		2,206		2,025	-14.2%
Equity securities		306		319		295		293		294	-3.9%
Mortgage loans on real estate, net of allowance for credit losses		18,963		19,266		20,152		20,856		21,083	11.2%
Policy loans		2,476		2,476		2,513		2,510		2,476	0.0%
Derivative investments		6,474		8,394		8,608		9,522		9,677	49.5%
Other investments		5,015		5,256		5,652		5,743		6,588	31.4%
Total investments		124,331		125,702		126,595		131,812		129,254	4.0%
Cash and invested cash		3,365		4,122		5,475		6,013		5,801	72.4%
Deferred acquisition costs, value of business acquired and deferred sales inducements		12,397		12,405		12,435		12,475		12,537	1.1%
Reinsurance recoverables, net of allowance for credit losses		29,843		29,461		29,126		29,233		28,750	-3.7%
Deposit assets, net of allowance for credit losses		29,247		29,355		30,330		30,938		30,776	5.2%
Market risk benefit assets		3,894		4,878		4,754		4,565		4,860	24.8%
Accrued investment income		1,082		1,127		1,135		1,160		1,108	2.4%
Goodwill		1,144		1,144		1,144		1,144		1,144	0.0%
Other assets		8,853		8,962		8,340		8,017		8,163	-7.8%
Separate account assets		158,257		166,225		165,199		171,483		168,438	6.4%
Total assets	$	372,413	$	383,381	$	384,533	$	396,840	$	390,831	4.9%

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Lincoln Financial
Consolidated Balance Sheets
Unaudited (millions of dollars)
		As of
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances	$	120,737	$	122,300	$	124,113	$	125,968	$	126,197	4.5	%
Future contract benefits		39,864		38,848		38,560		41,169		39,807	-0.1	%
Funds withheld reinsurance liabilities		17,641		17,486		17,044		17,595		16,907	-4.2	%
Market risk benefit liabilities		1,716		1,266		1,275		1,272		1,046	-39.0	%
Deferred front-end loads		5,901		6,099		6,306		6,517		6,730	14.0	%
Payables for collateral on investments		8,105		10,117		11,114		10,570		10,020	23.6	%
Short-term debt		250		503		450		300		300	20.0	%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 9 for details)		867		867		867		867		868	0.1	%
Financial		4,832		4,859		4,849		5,030		4,988	3.2	%
Other liabilities		7,350		7,265		6,807		7,056		7,261	-1.2	%
Separate account liabilities		158,257		166,225		165,199		171,483		168,438	6.4	%
Total liabilities		365,520		375,835		376,584		387,827		382,562	4.7	%
Stockholders’ Equity
Preferred stock		986		986		986		986		986	0.0%
Common stock		4,605		4,624		4,641		4,660		4,674	1.5	%
Retained earnings		4,778		5,887		6,691		6,049		7,645	60.0	%
Accumulated other comprehensive income (loss):
Unrealized investment gain (loss)		(4,813)		(4,940)		(5,253)		(3,565)		(5,601)	-16.4	%
Market risk benefit non-performance risk gain (loss)		1,070		606		409		781		146	-86.4	%
Policyholder liability discount rate remeasurement gain (loss)		587		703		795		422		744	26.7	%
Foreign currency translation adjustment		(26)		(27)		(27)		(18)		(29)	-11.5	%
Funded status of employee benefit plans		(294)		(293)		(293)		(302)		(296)	-0.7	%
Total accumulated other comprehensive income (loss)		(3,476)		(3,951)		(4,369)		(2,682)		(5,036)	-44.9	%
Total stockholders’ equity		6,893		7,546		7,949		9,013		8,269	20.0	%
Total liabilities and stockholders’ equity	$	372,413	$	383,381	$	384,533	$	396,840	$	390,831	4.9	%

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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 Twelve Months Ended
		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss)
Net income (loss)	$	(1,235)		$	1,222		$	895		$	(528)		$	1,686		236.5	%	$	(752)		$	3,275		NM
Pre-tax adjusted income (loss) from operations (1)		282			291			389			461			400		41.8	%		1,056			1,541		45.9	%
After-tax adjusted income (loss) from operations (1)(2)		263			244			335			392			343		30.4	%		990			1,315		32.8	%
Adjusted operating tax rate (1)		7.0	%		16.1	%		13.7	%		15.0	%		14.1	%				6.3	%		14.7	%
Adjusted income (loss) from operations available to
common stockholders (1)		252			210			324			358			332		31.7	%		908			1,224		34.8	%
ROE
Net income (loss) ROE		-97.9	%		67.7	%		46.2	%		-24.9	%		78.1	%				-13.8	%		40.8	%
Adjusted income (loss) from operations available to common
stockholders, excluding AOCI and preferred stock ROE (1)		10.0	%		8.4	%		11.9	%		13.0	%		11.5	%				9.1	%		11.3	%
Adjusted income (loss) from operations ROE (1)		9.2	%		7.6	%		11.4	%		12.1	%		10.9	%				8.3	%		10.5	%
Per Common Share
Net income (loss) (diluted)	$	(7.35)		$	6.93		$	5.11		$	(3.29)		$	9.63		231.0	%	$	(4.92)		$	18.41		NM
Adjusted income (loss) from operations (diluted) (1)(3)		1.47			1.22			1.87			2.06			1.91		29.9	%		5.32			7.07		32.9	%
Dividends declared during the period		0.45			0.45			0.45			0.45			0.45		0.0%			1.80			1.80		0.0%
Book Value Per Common Share
Book value per share	$	34.81		$	38.46		$	40.78		$	46.97		$	42.60		22.4	%	$	34.81		$	42.60		22.4	%
Book value per share, excluding AOCI (4)		55.30			61.63			66.37			62.67			72.06		30.3	%		55.30			72.06		30.3	%
Adjusted book value per share (4)		64.97			65.01			68.51			70.04			72.34		11.3	%		64.97			72.34		11.3	%
Common Shares
End-of-period – basic		169.7			170.5			170.7			170.9			171.0		0.8	%		169.7			171.0		0.8	%
Average for the period – basic		169.7			170.0			170.6			170.8			170.9		0.7	%		169.6			170.6		0.6	%
End-of-period – diluted (1)		171.3			172.4			173.4			173.6			174.1		1.6	%		171.3			174.1		1.6	%
Average for the period – diluted (1)		171.1			171.8			172.9			173.6			174.0		1.7	%		170.7			173.1		1.4	%
(1) The twelve month period ended December 31, 2023, has 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.

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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 Twelve Months Ended
		12/31/23			3/31/24				6/30/24				9/30/24				12/31/24		Change			12/31/23		12/31/24	Change
Cash Returned to Common Stockholders – Common Dividends	$	76		$	76			$	77			$	77			$	77		1.3	%	$	305	$	306	0.3	%
Cash Returned to Preferred Stockholders – Preferred Dividends	$	11		$	34			$	11			$	34			$	11		0.0%		$	82	$	91	11.0	%
Leverage Ratio
Short-term debt (1)	$	250			$	503			$	450			$	300		$	300		20.0	%
Long-term debt		5,699			5,726				5,716				5,897				5,856		2.8	%
Total debt (2)		5,949			6,229				6,166				6,197				6,156		3.5	%
Preferred stock		986			986				986				986				986		0.0%
Total debt and preferred stock		6,935			7,215				7,152				7,183				7,142		3.0	%
Less:
Operating debt (3)		867			867				867				867				868		0.1	%
Pre-funding of upcoming debt maturities		—			300				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		154			133				123				153				111		-27.9	%
Total numerator	$	5,119		$	5,120			$	5,067			$	5,068			$	5,068		-1.0	%
Adjusted stockholders’ equity (4)	$	11,023		$	11,087			$	11,698			$	11,967			$	12,367		12.2	%
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		5,119			5,120				5,067				5,068				5,068		-1.0	%
Total denominator	$	16,937		$	17,002			$	17,560			$	17,830			$	18,230		7.6	%
Leverage ratio		30.2	%		30.1		%		28.9		%		28.4		%		27.8	%
Holding Company Available Liquidity (5)	$	458		$	766			$	763			$	759			$	763		66.6	%
(1) As of December 31, 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 $521 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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Table of Contents

Lincoln Financial
Select Earnings Drivers By Segment
Unaudited (millions of dollars)
	For the Three Months Ended													For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Annuities
Operating revenues	$	(525)	$	1,269	$	1,209	$	1,195	$	1,223	NM		$	3,002	$	4,896	63.1	%
Deposits		4,359		2,849		3,823		3,383		3,692	-15.3	%		12,820		13,748	7.2	%
Net flows		285		(1,993)		(954)		(1,637)		(1,891)	NM			(2,034)		(6,475)	NM
Average account balances, net of reinsurance		147,419		155,291		158,370		161,680		165,424	12.2	%		148,206		160,032	8.0	%
Alternative investment income (1)		4		2		1		4		4	0.0%			17		12	-29.4	%
Life Insurance
Operating revenues	$	1,667	$	1,541	$	1,511	$	1,589	$	1,608	-3.5	%	$	6,907	$	6,248	-9.5	%
Deposits		1,458		1,208		1,230		1,262		1,402	-3.8	%		5,385		5,102	-5.3	%
Net flows		1,013		741		751		738		930	-8.2	%		3,618		3,161	-12.6	%
Average account balances, net of reinsurance		45,608		42,280		43,230		44,055		44,746	-1.9	%		48,722		43,578	-10.6	%
Average in-force face amount		1,087,535		1,087,405		1,085,383		1,083,176		1,080,074	-0.7	%		1,082,549		1,084,010	0.1	%
Alternative investment income (1)		49		74		32		92		96	95.9	%		207		294	42.0	%
Group Protection
Operating revenues	$	1,387	$	1,425	$	1,441	$	1,432	$	1,418	2.2	%	$	5,563	$	5,717	2.8	%
Insurance premiums		1,250		1,285		1,298		1,288		1,274	1.9	%		5,014		5,145	2.6	%
Alternative investment income (1)		2		1		1		1		2	0.0%			9		5	-44.4	%
Retirement Plan Services
Operating revenues	$	322	$	322	$	327	$	335	$	337	4.7	%	$	1,310	$	1,321	0.8	%
Deposits		2,972		3,802		3,282		4,180		3,473	16.9	%		11,778		14,738	25.1	%
Net flows		(332)		391		(197)		651		(732)	NM			132		112	-15.2	%
Average account balances		96,045		103,240		106,374		110,550		113,711	18.4	%		94,520		108,259	14.5	%
Alternative investment income (1)		3		1		1		2		2	-33.3	%		10		6	-40.0	%
Consolidated
Adjusted operating revenues (2)	$	1,967	$	4,584	$	4,527	$	4,603	$	4,628	135.3	%	$	16,027	$	18,342	14.4	%
Deposits		8,789		7,859		8,335		8,825		8,567	-2.5	%		29,983		33,588	12.0	%
Net flows		959		(861)		(400)		(248)		(1,693)	NM			1,716		(3,202)	NM
Average account balances, net of reinsurance		289,072		300,811		307,974		316,285		323,881	12.0	%		291,448		311,869	7.0	%
Alternative investment income (1)		58		78		36		100		105	81.0	%		243		319	31.3	%
(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.

10

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Lincoln Financial
Sales By Segment
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Twelve Months Ended
		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Sales
Annuities:
RILA	$	986		$	942		$	1,096		$	1,203		$	1,285		30.3	%	$	4,325		$	4,526		4.6	%
Other variable without GLBs		362			388			420			472			601		66.0	%		1,317			1,882		42.9	%
Other variable with GLBs		579			546			634			691			1,243		114.7	%		2,048			3,114		52.1	%
Total variable		1,927			1,876			2,150			2,366			3,129		62.4	%		7,690			9,522		23.8	%
Fixed		2,438			971			1,667			1,009			560		-77.0	%		5,150			4,205		-18.3	%
Total Annuities	$	4,365		$	2,847		$	3,817		$	3,375		$	3,689		-15.5	%	$	12,840		$	13,727		6.9	%
Life Insurance:
IUL/UL	$	34		$	18		$	25		$	32		$	26		-23.5	%	$	119		$	100		-16.0	%
MoneyGuard®		27			24			34			35			35		29.6	%		98			128		30.6	%
VUL		38			23			19			22			21		-44.7	%		132			85		-35.6	%
Term		21			19			18			15			13		-38.1	%		100			66		-34.0	%
Executive Benefits		24			7			9			18			24		0.0%			93			59		-36.6	%
Total Life Insurance	$	144		$	91		$	105		$	122		$	119		-17.4	%	$	542		$	438		-19.2	%
Group Protection:
Life	$	167		$	85		$	81		$	42		$	184		10.2	%	$	333		$	392		17.7	%
Disability		204			51			74			36			253		24.0	%		311			414		33.1	%
Dental		27			8			6			6			30		11.1	%		49			50		2.0	%
Total Group Protection	$	398		$	144		$	161		$	84		$	467		17.3	%	$	693		$	856		23.5	%
Percent employee-paid		33.8	%		70.4	%		50.0	%		52.8	%		34.3	%				45.0	%		45.2	%
Retirement Plan Services:
First-year sales	$	874		$	1,127		$	821		$	1,652		$	1,273		45.7	%	$	2,893		$	4,873		68.4	%
Recurring deposits		2,098			2,675			2,461			2,528			2,200		4.9	%		8,885			9,865		11.0	%
Total Retirement Plan Services	$	2,972		$	3,802		$	3,282		$	4,180		$	3,473		16.9	%	$	11,778		$	14,738		25.1	%

11

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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 Twelve Months Ended
		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Operating Revenues
Annuities	$	(525)		$	1,269		$	1,209		$	1,195		$	1,223		NM		$	3,002		$	4,896		63.1	%
Life Insurance		1,667			1,541			1,511			1,589			1,608		-3.5	%		6,907			6,248		-9.5	%
Group Protection		1,387			1,425			1,441			1,432			1,418		2.2	%		5,563			5,717		2.8	%
Retirement Plan Services		322			322			327			335			337		4.7	%		1,310			1,321		0.8	%
Other Operations		(884)			27			39			52			42		104.8	%		(755)			160		121.2	%
Total adjusted operating revenues	$	1,967		$	4,584		$	4,527		$	4,603		$	4,628		135.3	%	$	16,027		$	18,342		14.4	%
General and Administrative Expenses,
Net of Amounts Capitalized
Annuities	$	131		$	134		$	112		$	103		$	112		-14.5	%	$	528		$	462		-12.5	%
Life Insurance		143			130			125			126			129		-9.8	%		551			510		-7.4	%
Group Protection		191			187			193			195			195		2.1	%		764			770		0.8	%
Retirement Plan Services		84			81			80			81			82		-2.4	%		325			324		-0.3	%
Other Operations (1)		79			57			64			67			70		-11.4	%		258			257		-0.4	%
Total (1)	$	628		$	589		$	574		$	572		$	588		-6.4	%	$	2,426		$	2,323		-4.2	%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		NM			10.6	%		9.3	%		8.6	%		9.2	%				17.6	%		9.4	%
Life Insurance		8.6	%		8.5	%		8.3	%		7.9	%		8.0	%				8.0	%		8.2	%
Group Protection		13.8	%		13.1	%		13.4	%		13.6	%		13.8	%				13.7	%		13.5	%
Retirement Plan Services		26.1	%		25.3	%		24.4	%		24.3	%		24.3	%				24.8	%		24.6	%
Total (1)		31.9	%		12.8	%		12.7	%		12.4	%		12.7	%				15.1	%		12.7	%
(1) The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See page 1 for further information.

12

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Lincoln Financial
Operating Commissions and Other Expenses
Unaudited (millions of dollars)
	For the Three Months Ended													For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses (1)	$	686	$	640	$	638	$	632	$	650	-5.2	%	$	2,644	$	2,561	-3.1	%
Commissions		651		639		561		546		575	-11.7	%		2,485		2,321	-6.6	%
Taxes, licenses and fees (1)		81		92		76		80		75	-7.4	%		342		323	-5.6	%
Interest and debt expense		81		81		86		86		83	2.5	%		331		336	1.5	%
Expenses associated with reserve financing
and letters of credit		29		30		28		32		36	24.1	%		114		125	9.6	%
Total adjusted operating commissions and
other expenses incurred (1)		1,528		1,482		1,389		1,376		1,419	-7.1	%		5,916		5,666	-4.2	%
Less Amounts Capitalized
General and administrative expenses		(58)		(51)		(64)		(60)		(62)	-6.9	%		(218)		(238)	-9.2	%
Commissions		(259)		(205)		(224)		(236)		(263)	-1.5	%		(964)		(927)	3.8	%
Taxes, licenses and fees		(8)		(9)		(7)		(8)		(7)	12.5	%		(33)		(31)	6.1	%
Total amounts capitalized		(325)		(265)		(295)		(304)		(332)	-2.2	%		(1,215)		(1,196)	1.6	%
Total expenses incurred, net of amounts
capitalized, excluding amortization (1)		1,203		1,217		1,094		1,072		1,087	-9.6	%		4,701		4,470	-4.9	%
Amortization
Amortization of DAC, VOBA and other intangibles (2)		271		271		274		299		302	11.4	%		1,077		1,146	6.4	%
Total operating commissions and
other expenses (1)(2)	$	1,474	$	1,488	$	1,368	$	1,371	$	1,389	-5.8	%	$	5,778	$	5,616	-2.8	%
(1) The twelve month period ended December 31, 2023, has 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.

13

Table of Contents

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																		Twelve Months Ended
		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums (1)	$	(1,700)		$	26		$	34		$	38		$	29		101.7	%	$	(1,584)		$	127		108.0	%
Fee income (2)		552			580			587			601			612		10.9	%		2,196			2,381		8.4	%
Net investment income		425			420			435			442			462		8.7	%		1,734			1,759		1.4	%
Other revenues		198			243			153			114			120		-39.4	%		656			629		-4.1	%
Total operating revenues		(525)			1,269			1,209			1,195			1,223		NM			3,002			4,896		63.1	%
Operating expenses:
Benefits (1)		(1,683)			27			38			38			40		102.4	%		(1,506)			143		109.5	%
Interest credited		338			354			377			399			407		20.4	%		1,252			1,536		22.7	%
Policyholder liability remeasurement (gain) loss		(15)			—			2			—			—		100.0	%		2			2		0.0%
Commissions incurred		252			254			269			285			307		21.8	%		971			1,115		14.8	%
Other expenses incurred		265			309			180			136			157		-40.8	%		1,050			780		-25.7	%
Amounts capitalized		(110)			(98)			(115)			(129)			(155)		-40.9	%		(411)			(498)		-21.2	%
Amortization		107			106			107			107			108		0.9	%		431			430		-0.2	%
Total operating expenses		(846)			952			858			836			864		202.1	%		1,789			3,508		96.1	%
Income (loss) from operations before taxes		321			317			351			359			359		11.8	%		1,213			1,388		14.4	%
Federal income tax expense (benefit)		42			58			54			58			56		33.3	%		140			228		62.9	%
Income (loss) from operations	$	279		$	259		$	297		$	301		$	303		8.6	%	$	1,073		$	1,160		8.1	%
Effective Federal Income Tax Rate		12.9	%		18.5	%		15.4	%		16.3	%		15.7	%				11.5	%		16.4	%
Return on Average Account Balances, Net of
Reinsurance (bps)		76			67			75			74			73		(3)			72			72		—
Account Balances, Net of Reinsurance –
End-of-Period
RILA account balances	$	27,533		$	30,100		$	31,633		$	33,245		$	34,310		24.6	%	$	27,533		$	34,310		24.6	%
Other variable account balances without GLBs		45,499			47,657			47,321			48,899			48,193		5.9	%		45,499			48,193		5.9	%
Other variable account balances with GLBs		69,458			71,822			70,664			72,664			70,756		1.9	%		69,458			70,756		1.9	%
Fixed account balances		10,336			10,214			10,251			10,349			10,352		0.2	%		10,336			10,352		0.2	%
Total account balances	$	152,826		$	159,793		$	159,869		$	165,157		$	163,611		7.1	%	$	152,826		$	163,611		7.1	%
Percent variable account balances with GLBs		45.4	%		44.9	%		44.2	%		44.0	%		43.2	%				45.4	%		43.2	%
Fee Income, Gross of Hedge Allowance	$	752		$	780		$	787		$	802		$	811		7.8	%	$	3,005		$	3,180		5.8	%
Net Investment Income, Net of Reinsurance (3)		385			390			403			412			438		13.8	%		1,568			1,643		4.8	%
Interest Credited, Net of Reinsurance (3)		255			245			254			270			282		10.6	%		996			1,050		5.4	%
(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.

14

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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																	Twelve Months Ended
		12/31/23			3/31/24			6/30/24			9/30/24		12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	295		$	288		$	293		$	286	$	283		-4.1	%	$	1,162		$	1,149		-1.1	%
Fee income		741			672			677			672		694		-6.3	%		3,010			2,715		-9.8	%
Net investment income		629			581			533			597		593		-5.7	%		2,712			2,303		-15.1	%
Operating realized gain (loss)		(2)			(2)			(2)			(2)		(2)		0.0%			(6)			(6)		0.0%
Other revenues (1)		4			2			10			36		40		NM			29			87		200.0	%
Total operating revenues		1,667			1,541			1,511			1,589		1,608		-3.5	%		6,907			6,248		-9.5	%
Operating expenses:
Benefits		1,083			928			948			895		961		-11.3	%		4,436			3,730		-15.9	%
Interest credited		312			294			299			302		300		-3.8	%		1,290			1,194		-7.4	%
Policyholder liability remeasurement (gain) loss		(37)			59			16			42		45		221.6	%		147			163		10.9	%
Commissions incurred		150			113			113			120		115		-23.3	%		571			461		-19.3	%
Other expenses incurred		223			204			193			198		198		-11.2	%		869			794		-8.6	%
Amounts capitalized		(175)			(133)			(133)			(140)		(137)		21.7	%		(671)			(543)		19.1	%
Amortization of DAC and VOBA		125			126			126			127		128		2.4	%		496			507		2.2	%
Amortization of deferred loss on business
sold through reinsurance (1)		—			—			—			24		24		NM			—			47		NM
Total operating expenses		1,681			1,591			1,562			1,568		1,634		-2.8	%		7,138			6,353		-11.0	%
Income (loss) from operations before taxes		(14)			(50)			(51)			21		(26)		-85.7	%		(231)			(105)		54.5	%
Federal income tax expense (benefit)		(8)			(15)			(16)			(1)		(11)		-37.5	%		(72)			(42)		41.7	%
Income (loss) from operations	$	(6)		$	(35)		$	(35)		$	22	$	(15)		NM		$	(159)		$	(63)		60.4	%
Effective Federal Income Tax Rate		59.7	%		29.7	%		31.2	%		NM		41.2	%				31.1	%		40.0	%
Average Account Balances, Net of Reinsurance	$	45,608		$	42,280		$	43,230		$	44,055	$	44,746		-1.9	%	$	48,722		$	43,578		-10.6	%
In-Force Face Amount
UL and other	$	365,938		$	365,507		$	365,030		$	364,766	$	363,950		-0.5	%	$	365,938		$	363,950		-0.5	%
Term insurance		722,620			720,745			719,485			717,071		714,362		-1.1	%		722,620			714,362		-1.1	%
Total in-force face amount	$	1,088,558		$	1,086,252		$	1,084,515		$	1,081,837	$	1,078,312		-0.9	%	$	1,088,558		$	1,078,312		-0.9	%
(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																	Twelve Months Ended
		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,250		$	1,285		$	1,298		$	1,288		$	1,274		1.9	%	$	5,014		$	5,145		2.6	%
Net investment income		85			85			88			87			87		2.4	%		339			348		2.7	%
Other revenues		52			55			55			57			57		9.6	%		210			224		6.7	%
Total operating revenues		1,387			1,425			1,441			1,432			1,418		2.2	%		5,563			5,717		2.8	%
Operating expenses:
Benefits		984			1,030			1,032			1,007			970		-1.4	%		4,020			4,039		0.5	%
Interest credited		1			1			1			1			3		200.0	%		5			6		20.0	%
Policyholder liability remeasurement (gain) loss		(28)			(67)			(124)			(88)			(68)		NM			(288)			(347)		-20.5	%
Commissions incurred		119			109			113			114			125		5.0	%		446			462		3.6	%
Other expenses incurred		246			246			260			255			249		1.2	%		982			1,011		3.0	%
Amounts capitalized		(34)			(29)			(42)			(30)			(34)		0.0%			(113)			(135)		-19.5	%
Amortization		34			34			36			36			37		8.8	%		132			143		8.3	%
Total operating expenses		1,322			1,324			1,276			1,295			1,282		-3.0	%		5,184			5,179		-0.1	%
Income (loss) from operations before taxes		65			101			165			137			136		109.2	%		379			538		42.0	%
Federal income tax expense (benefit)		13			21			35			28			29		123.1	%		80			113		41.3	%
Income (loss) from operations	$	52		$	80		$	130		$	109		$	107		105.8	%	$	299		$	425		42.1	%
Effective Federal Income Tax Rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%				21.0	%		21.0	%
Operating Margin (1)		4.1	%		6.2	%		10.0	%		8.4	%		8.4	%				6.0	%		8.3	%
Loss Ratios by Product Line
Life		67.2	%		76.1	%		75.6	%		68.1	%		64.7	%				74.0	%		71.1	%
Disability		83.1	%		74.2	%		65.9	%		73.2	%		75.0	%				74.8	%		72.1	%
Dental		75.4	%		76.5	%		78.9	%		79.0	%		73.3	%				76.1	%		77.0	%
Total		76.6	%		75.0	%		70.1	%		71.4	%		71.0	%				74.5	%		71.9	%
(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																	Twelve Months Ended
		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	67		$	70		$	72		$	74		$	76		13.4	%	$	262		$	292		11.5	%
Net investment income		248			244			247			253			253		2.0	%		1,012			997		-1.5	%
Other revenues		7			8			8			8			8		14.3	%		36			32		-11.1	%
Total operating revenues		322			322			327			335			337		4.7	%		1,310			1,321		0.8	%
Operating expenses:
Interest credited		164			166			168			170			172		4.9	%		665			675		1.5	%
Commissions incurred		22			23			26			28			27		22.7	%		87			103		18.4	%
Other expenses incurred		93			92			87			88			90		-3.2	%		360			359		-0.3	%
Amounts capitalized		(6)			(5)			(5)			(5)			(6)		0.0%			(21)			(21)		0.0%
Amortization		5			5			5			5			5		0.0%			18			19		5.6	%
Total operating expenses		278			281			281			286			288		3.6	%		1,109			1,135		2.3	%
Income (loss) from operations before taxes		44			41			46			49			49		11.4	%		201			186		-7.5	%
Federal income tax expense (benefit)		6			5			6			5			6		0.0%			30			23		-23.3	%
Income (loss) from operations	$	38		$	36		$	40		$	44		$	43		13.2	%	$	171		$	163		-4.7	%
Effective Federal Income Tax Rate		13.2	%		12.9	%		13.2	%		10.0	%		13.5	%				14.7	%		12.4	%
Return on Average Account Balances (bps)		16			14			15			16			15		(1)			18			15		(3)
Net Flows by Market
Small Market	$	115		$	(32)		$	43		$	11		$	(34)		NM		$	382		$	(11)		NM
Mid - Large Market		78			847			206			1,069			(178)		NM			1,279			1,944		52.0	%
Multi-Fund® and Other		(525)			(424)			(446)			(429)			(520)		1.0	%		(1,529)			(1,821)		-19.1	%
Net Flows – Trailing Twelve Months	$	132		$	(12)		$	(410)		$	513		$	112		-15.2	%	$	132		$	112		-15.2	%
Base Spreads, Excluding Variable
Investment Income (1)		1.09	%		1.02	%		1.03	%		1.05	%		1.01	%	(8)			1.13	%		1.03	%	(10)
(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 Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23 (1)		12/31/24	Change
Other Operations
Operating revenues:
Insurance premiums (2)	$	(930)	$	2	$	1	$	1	$	—	100.0	%	$	(921)	$	4	100.4	%
Net investment income		37		16		27		34		33	-10.8	%		148		110	-25.7	%
Other revenues		9		9		11		17		9	0.0%			18		46	155.6	%
Total operating revenues		(884)		27		39		52		42	104.8	%		(755)		160	121.2	%
Operating expenses:
Benefits (2)		(918)		6		4		(3)		2	100.2	%		(863)		12	101.4	%
Interest credited		9		9		8		8		7	-22.2	%		36		32	-11.1	%
Policyholder liability remeasurement (gain) loss		—		(1)		1		—		—	NM			(3)		—	100.0	%
Other expenses incurred		77		51		62		66		68	-11.7	%		250		246	-1.6	%
Interest and debt expense		81		81		86		86		83	2.5	%		331		336	1.5	%
Total operating expenses		(751)		146		161		157		160	121.3	%		(249)		626	NM
Income (loss) from operations before taxes		(133)		(119)		(122)		(105)		(118)	11.3	%		(506)		(466)	7.9	%
Federal income tax expense (benefit)		(33)		(23)		(25)		(21)		(23)	30.3	%		(112)		(96)	14.3	%
Income (loss) from operations	$	(100)	$	(96)	$	(97)	$	(84)	$	(95)	5.0	%	$	(394)	$	(370)	6.1	%
(1) The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See page 1 for further information.
(2) Day one impacts related to the fourth quarter 2023 reinsurance transaction contributed to line item volatility in the fourth quarter.

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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 Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	12,341	$	12,397	$	12,405	$	12,435	$	12,475	1.1	%	$	12,235	$	12,397	1.3	%
Business acquired (sold) through reinsurance		(11)		—		—		—		—	100.0	%		(11)		—	100.0	%
Deferrals		333		274		299		309		334	0.3	%		1,232		1,216	-1.3	%
Operating amortization		(266)		(266)		(269)		(269)		(272)	-2.3	%		(1,059)		(1,076)	-1.6	%
Balance as of end-of-period	$	12,397	$	12,405	$	12,435	$	12,475	$	12,537	1.1	%	$	12,397	$	12,537	1.1	%
DFEL
Balance as of beginning-of-period	$	5,695	$	5,901	$	6,099	$	6,306	$	6,517	14.4	%	$	5,091	$	5,901	15.9	%
Deferrals		281		272		284		289		295	5.0	%		1,098		1,140	3.8	%
Operating amortization		(75)		(74)		(77)		(78)		(82)	-9.3	%		(288)		(311)	-8.0	%
Balance as of end-of-period	$	5,901	$	6,099	$	6,306	$	6,517	$	6,730	14.0	%	$	5,901	$	6,730	14.0	%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,132	$	4,981	$	4,842	$	4,707	$	4,588	-10.6	%	$	5,132	$	4,588	-10.6	%

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Lincoln Financial
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended												For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Traditional Variable Annuities
Balance as of beginning-of-period	$	106,957	$	114,963	$	119,485	$	117,990	$	121,568	13.7	%	$	107,627	$	114,963	6.8	%
Gross deposits		941		934		1,054		1,163		1,844	96.0	%		3,365		4,996	48.5	%
Full surrenders and deaths		(1,714)		(2,142)		(2,303)		(2,382)		(2,185)	-27.5	%		(6,343)		(9,013)	-42.1	%
Other contract benefits		(1,147)		(1,133)		(1,130)		(1,172)		(1,503)	-31.0	%		(4,102)		(4,937)	-20.4	%
Net flows		(1,920)		(2,341)		(2,379)		(2,391)		(1,844)	4.0	%		(7,080)		(8,954)	-26.5	%
Policyholder assessments		(624)		(644)		(650)		(666)		(666)	-6.7	%		(2,504)		(2,627)	-4.9	%
Change in market value and reinvestment		10,550		7,507		1,534		6,635		(104)	NM			16,920		15,572	-8.0	%
Balance as of end-of-period, gross		114,963		119,485		117,990		121,568		118,954	3.5	%		114,963		118,954	3.5	%
Account balances reinsured		(6)		(6)		(5)		(5)		(5)	16.7	%		(6)		(5)	16.7	%
Balance as of end-of-period, net	$	114,957	$	119,479	$	117,985	$	121,563	$	118,949	3.5	%	$	114,957	$	118,949	3.5	%
RILA
Balance as of beginning-of-period	$	25,006	$	27,533	$	30,100	$	31,633	$	33,245	32.9	%	$	20,130	$	27,533	36.8	%
Gross deposits		986		942		1,096		1,203		1,285	30.3	%		4,325		4,526	4.6	%
Full surrenders and deaths		(103)		(115)		(138)		(326)		(671)	NM			(351)		(1,250)	NM
Other contract benefits		(45)		(42)		(14)		(18)		(120)	NM			(123)		(195)	-58.5	%
Net flows		838		785		944		859		494	-41.1	%		3,851		3,081	-20.0	%
Policyholder assessments		(3)		(3)		(3)		(3)		(4)	-33.3	%		(8)		(13)	-62.5	%
Change in market value and reinvestment		213		247		288		325		375	76.1	%		690		1,235	79.0	%
Change in fair value of embedded derivative instruments and other		1,479		1,538		304		431		200	-86.5	%		2,870		2,474	-13.8	%
Balance as of end-of-period, gross	$	27,533	$	30,100	$	31,633	$	33,245	$	34,310	24.6	%	$	27,533	$	34,310	24.6	%

20

Table of Contents

Lincoln Financial
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended												For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Fixed Annuities
Balance as of beginning-of-period	$	23,681	$	25,355	$	25,162	$	25,837	$	26,359	11.3	%	$	23,365	$	25,355	8.5	%
Gross deposits		2,432		973		1,673		1,017		563	-76.9	%		5,130		4,226	-17.6	%
Full surrenders and deaths		(878)		(1,213)		(1,020)		(949)		(873)	0.6	%		(3,252)		(4,055)	-24.7	%
Other contract benefits		(187)		(197)		(172)		(173)		(231)	-23.5	%		(683)		(773)	-13.2	%
Net flows		1,367		(437)		481		(105)		(541)	NM			1,195		(602)	NM
Policyholder assessments		(15)		(17)		(14)		(14)		(16)	-6.7	%		(56)		(61)	-8.9	%
Reinvested interest credited		172		183		199		211		209	21.5	%		649		802	23.6	%
Change in fair value of embedded derivative instruments
and other		150		78		9		430		(48)	NM			202		469	132.2	%
Balance as of end-of-period, gross		25,355		25,162		25,837		26,359		25,963	2.4	%		25,355		25,963	2.4	%
Account balances reinsured		(15,019)		(14,948)		(15,586)		(16,010)		(15,611)	-3.9	%		(15,019)		(15,611)	-3.9	%
Balance as of end-of-period, net	$	10,336	$	10,214	$	10,251	$	10,349	$	10,352	0.2	%	$	10,336	$	10,352	0.2	%
Total
Balance as of beginning-of-period	$	155,644	$	167,851	$	174,747	$	175,460	$	181,172	16.4	%	$	151,122	$	167,851	11.1	%
Gross deposits		4,359		2,849		3,823		3,383		3,692	-15.3	%		12,820		13,748	7.2	%
Full surrenders and deaths		(2,695)		(3,470)		(3,461)		(3,657)		(3,729)	-38.4	%		(9,946)		(14,318)	-44.0	%
Other contract benefits		(1,379)		(1,372)		(1,316)		(1,363)		(1,854)	-34.4	%		(4,908)		(5,905)	-20.3	%
Net flows		285		(1,993)		(954)		(1,637)		(1,891)	NM			(2,034)		(6,475)	NM
Policyholder assessments		(642)		(664)		(667)		(683)		(686)	-6.9	%		(2,568)		(2,701)	-5.2	%
Change in market value, reinvestment and interest credited		10,935		7,937		2,021		7,171		480	-95.6	%		18,259		17,609	-3.6	%
Change in fair value of embedded derivative instruments
and other		1,629		1,616		313		861		152	-90.7	%		3,072		2,943	-4.2	%
Balance as of end-of-period, gross		167,851		174,747		175,460		181,172		179,227	6.8	%		167,851		179,227	6.8	%
Account balances reinsured		(15,025)		(14,954)		(15,591)		(16,015)		(15,616)	-3.9	%		(15,025)		(15,616)	-3.9	%
Balance as of end-of-period, net	$	152,826	$	159,793	$	159,869	$	165,157	$	163,611	7.1	%	$	152,826	$	163,611	7.1	%

21

Table of Contents

Lincoln Financial
Life Insurance – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended													For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24		Change
General Account
Balance as of beginning-of-period	$	37,217	$	37,180	$	37,006	$	36,848	$	36,692	-1.4	%	$	37,694	$	37,180		-1.4	%
Gross deposits		1,006		850		893		899		977	-2.9	%		3,755		3,619		-3.6	%
Withdrawals and deaths		(359)		(364)		(389)		(369)		(342)	4.7	%		(1,454)		(1,464)		-0.7	%
Net flows		647		486		504		530		635	-1.9	%		2,301		2,155		-6.3	%
Transfers between general and separate accounts		7		38		74		30		53	NM			97		196		102.1	%
Policyholder assessments		(1,140)		(1,124)		(1,130)		(1,129)		(1,137)	0.3	%		(4,512)		(4,522)		-0.2	%
Reinvested interest credited		366		365		368		375		365	-0.3	%		1,479		1,474		-0.3	%
Change in fair value of embedded derivative instruments
and other		83		61		26		38		(9)	NM			121		116		-4.1	%
Balance as of end-of-period, gross		37,180		37,006		36,848		36,692		36,599	-1.6	%		37,180		36,599		-1.6	%
Account balances reinsured		(15,777)		(15,607)		(15,467)		(15,301)		(15,147)	4.0	%		(15,777)		(15,147)		4.0	%
Balance as of end-of-period, net	$	21,403	$	21,399	$	21,381	$	21,391	$	21,452	0.2	%	$	21,403	$	21,452		0.2	%
Separate Account
Balance as of beginning-of-period	$	22,642	$	25,150	$	27,007	$	27,381	$	28,921	27.7	%		20,920		$	25,150	20.2	%
Gross deposits		452		358		337		363		425	-6.0	%		1,630		1,483		-9.0	%
Withdrawals and deaths		(86)		(103)		(90)		(155)		(130)	-51.2	%		(313)		(477)		-52.4	%
Net flows		366		255		247		208		295	-19.4	%		1,317		1,006		-23.6	%
Transfers between general and separate accounts		(7)		(37)		(76)		(30)		(53)	NM			(96)		(196)		NM
Policyholder assessments		(250)		(246)		(247)		(248)		(253)	-1.2	%		(964)		(995)		-3.2	%
Change in market value and reinvestment		2,399		1,885		450		1,610		(69)	NM			3,973		3,876		-2.4	%
Balance as of end-of-period, gross		25,150		27,007		27,381		28,921		28,841	14.7	%		25,150		28,841		14.7	%
Account balances reinsured		(5,062)		(5,338)		(5,371)		(5,593)		(5,521)	-9.1	%		(5,062)		(5,521)		-9.1	%
Balance as of end-of-period, net	$	20,088	$	21,669	$	22,010	$	23,328	$	23,320	16.1	%	$	20,088	$	23,320		16.1	%
Total
Balance as of beginning-of-period	$	59,859	$	62,330	$	64,013	$	64,229	$	65,613	9.6	%	$	58,614	$	62,330		6.3	%
Gross deposits		1,458		1,208		1,230		1,262		1,402	-3.8	%		5,385		5,102		-5.3	%
Withdrawals and deaths		(445)		(467)		(479)		(524)		(472)	-6.1	%		(1,767)		(1,941)		-9.8	%
Net flows		1,013		741		751		738		930	-8.2	%		3,618		3,161		-12.6	%
Transfers between general and separate accounts		—		1		(2)		—		—	0.0%			1		—		-100.0	%
Policyholder assessments		(1,390)		(1,370)		(1,377)		(1,377)		(1,390)	0.0%			(5,476)		(5,517)		-0.7	%
Change in market value and reinvestment		2,765		2,250		818		1,985		296	-89.3	%		5,452		5,350		-1.9	%
Change in fair value of embedded derivative instruments
and other		83		61		26		38		(9)	NM			121		116		-4.1	%
Balance as of end-of-period, gross		62,330		64,013		64,229		65,613		65,440	5.0	%		62,330		65,440		5.0	%
Account balances reinsured		(20,839)		(20,945)		(20,838)		(20,894)		(20,668)	0.8	%		(20,839)		(20,668)		0.8	%
Balance as of end-of-period, net	$	41,491	$	43,068	$	43,391	$	44,719	$	44,772	7.9	%	$	41,491	$	44,772		7.9	%

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Lincoln Financial
Retirement Plan Services – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended												For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
General Account
Balance as of beginning-of-period	$	24,099	$	23,784	$	23,586	$	23,598	$	23,727	-1.5	%	$	25,138	$	23,784	-5.4	%
Gross deposits		750		790		846		944		826	10.1	%		2,776		3,407	22.7	%
Withdrawals		(1,233)		(1,203)		(1,072)		(1,095)		(1,125)	8.8	%		(4,494)		(4,495)	0.0%
Net flows		(483)		(413)		(226)		(151)		(299)	38.1	%		(1,718)		(1,088)	36.7	%
Transfers between fixed and variable accounts		2		50		69		110		22	NM			(295)		251	185.1	%
Policyholder assessments		(3)		(3)		(3)		(4)		(4)	-33.3	%		(14)		(14)	0.0%
Reinvested interest credited		169		168		172		174		173	2.4	%		673		686	1.9	%
Balance as of end-of-period	$	23,784	$	23,586	$	23,598	$	23,727	$	23,619	-0.7	%	$	23,784	$	23,619	-0.7	%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	69,834	$	77,201	$	83,226	$	84,274	$	90,069	29.0	%	$	63,592	$	77,201	21.4	%
Gross deposits		2,222		3,012		2,436		3,236		2,647	19.1	%		9,002		11,331	25.9	%
Withdrawals		(2,071)		(2,208)		(2,407)		(2,434)		(3,080)	-48.7	%		(7,152)		(10,131)	-41.7	%
Net flows		151		804		29		802		(433)	NM			1,850		1,200	-35.1	%
Transfers between fixed and variable accounts		(10)		(34)		(69)		(106)		(19)	-90.0	%		295		(227)	NM
Policyholder assessments		(62)		(64)		(66)		(70)		(72)	-16.1	%		(239)		(274)	-14.6	%
Change in market value and reinvestment		7,288		5,319		1,154		5,169		(583)	NM			11,703		11,062	-5.5	%
Balance as of end-of-period	$	77,201	$	83,226	$	84,274	$	90,069	$	88,962	15.2	%	$	77,201	$	88,962	15.2	%
Total
Balance as of beginning-of-period	$	93,933	$	100,985	$	106,812	$	107,872	$	113,796	21.1	%	$	88,730	$	100,985	13.8	%
Gross deposits		2,972		3,802		3,282		4,180		3,473	16.9	%		11,778		14,738	25.1	%
Withdrawals		(3,304)		(3,411)		(3,479)		(3,529)		(4,205)	-27.3	%		(11,646)		(14,626)	-25.6	%
Net flows		(332)		391		(197)		651		(732)	NM			132		112	-15.2	%
Transfers between fixed and variable accounts		(8)		16		—		4		3	137.5	%		—		24	NM
Policyholder assessments		(65)		(67)		(69)		(74)		(76)	-16.9	%		(253)		(288)	-13.8	%
Change in market value and reinvestment		7,457		5,487		1,326		5,343		(410)	NM			12,376		11,748	-5.1	%
Balance as of end-of-period	$	100,985	$	106,812	$	107,872	$	113,796	$	112,581	11.5	%	$	100,985	$	112,581	11.5	%

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Lincoln Financial
Fixed-Income Asset Class
Unaudited (millions of dollars)
	As of 12/31/23				As of 12/31/24
		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			$	13,510		15.2	%	$	12,728	14.6	%
Basic industry				2,986		3.3	%		2,840	3.3	%
Capital goods				5,568		6.2	%		5,490	6.3	%
Communications				3,110		3.5	%		2,798	3.2	%
Consumer cyclical				5,268		5.8	%		5,408	6.2	%
Consumer non-cyclical				13,458		15.1	%		12,485	14.4	%
Energy				2,776		3.1	%		2,472	2.8	%
Technology				4,376		4.9	%		3,882	4.5	%
Transportation				3,233		3.6	%		3,124	3.6	%
Industrial other				2,107		2.4	%		2,183	2.5	%
Utilities				11,613		13.0	%		11,194	12.9	%
Government-related entities				1,278		1.4	%		1,170	1.3	%
Residential mortgage-backed securities ("RMBS")
Agency backed				1,505		1.7	%		1,608	1.8	%
Non-agency backed				332		0.4	%		328	0.4	%
Commercial mortgage-backed securities ("CMBS")				1,546		1.7	%		1,724	2.0	%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")				8,325		9.3	%		8,189	9.4	%
Other ABS				4,220		4.7	%		5,864	6.7	%
Municipals				2,973		3.3	%		2,647	3.0	%
United States and foreign government				730		1.1	%		711	0.8	%
Hybrid & redeemable preferred securities				237		0.3	%		235	0.3	%
Total fixed maturity AFS securities, net of modified coinsurance and funds withheld
investments and allowance for credit losses, at amortized cost				89,151		100.0	%		87,080	100.0	%
Trading Securities, Net of Modified Coinsurance and Funds Withheld Investments				626					511
Equity Securities, Net of Modified Coinsurance and Funds Withheld Investments				275					264
Total fixed maturity AFS, trading and equity securities, net of modified coinsurance and funds
withheld investments and allowance for credit losses, at amortized cost				90,052					87,855
Modified coinsurance and funds withheld investments				10,215					11,992
Total fixed maturity AFS, trading and equity securities			$	100,267				$	99,847
(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.

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Lincoln Financial
Fixed-Income Credit Quality
Unaudited (millions of dollars)
	As of 12/31/23				As of 12/31/24
		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)			$	51,738		58.0	%	$	51,922	59.6	%
NAIC 2 (BBB)				34,475		38.7	%		32,198	37.0	%
Total investment grade				86,213		96.7	%		84,120	96.6	%
NAIC 3 (BB)				1,090		1.2	%		907	1.1	%
NAIC 4 (B)				1,760		2.0	%		1,857	2.1	%
NAIC 5 (CCC and lower)				86		0.1	%		109	0.1	%
NAIC 6 (in or near default)				2		0.0	%		87	0.1	%
Total below investment grade				2,938		3.3	%		2,960	3.4	%
Total			$	89,151		100.0	%	$	87,080	100.0	%
Commercial Mortgage Loans, Net of Modified Coinsurance and Funds Withheld Investments,
at Amortized Cost (1)(2)
CM1 (AAA-A)			$	13,687		80.4	%	$	13,450	77.2	%
CM2 (BBB)				3,248		19.1	%		3,873	22.2	%
CM3-7 (BB and lower) (3)				84		0.5	%		99	0.6	%
Total			$	17,019		100.0	%	$	17,422	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			$	65,425		61.6	%	$	65,372	62.6	%
BBB				37,723		35.5	%		36,071	34.5	%
BB and lower				3,022		2.9	%		3,059	2.9	%
Total			$	106,170		100.0	%	$	104,502	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 limited partnerships classified as CM3 that are included in "Other Investments" on the Consolidated Balance Sheets.

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Lincoln Financial
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended												For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23 (1)		12/31/24	Change
Net Income
Net income (loss) available to common stockholders – diluted	$	(1,246)	$	1,191	$	884	$	(562)	$	1,675	234	%	$	(835)	$	3,187	NM
Less:
Preferred stock dividends declared		(11)		(34)		(11)		(34)		(11)	0.0%			(82)		(91)	-11	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		—		3		—		—		—	NM			(1)		3	NM
Net income (loss)		(1,235)		1,222		895		(528)		1,686	237	%		(752)		3,275	NM
Less:
Net annuity product features, pre-tax		(1,008)		1,450		252		(381)		1,187	218	%		68		2,508	NM
Net life insurance product features, pre-tax		(225)		(130)		4		(125)		46	120	%		(393)		(207)	47	%
Credit loss-related adjustments, pre-tax		(27)		(1)		(34)		(88)		(28)	-4	%		(80)		(152)	-90	%
Investment gains (losses), pre-tax (2)		167		(81)		(230)		(105)		(67)	NM			(959)		(483)	50	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, pre-tax (3)		(776)		194		201		(446)		587	176	%		(802)		535	167	%
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)		(32)		(186)		(33)		(19)		(32)	0.0%			(55)		(270)	NM
Income tax benefit (expense) related to the above pre-tax items		403		(268)		(184)		246		(350)	NM			479		(553)	NM
Total adjustments		(1,498)		978		560		(920)		1,343	190	%		(1,742)		1,960	213	%
Adjusted income (loss) from operations		263		244		335		392		343	30	%		990		1,315	33	%
Add:
Preferred stock dividends declared		(11)		(34)		(11)		(34)		(11)	0.0%			(82)		(91)	-11	%
Adjusted income (loss) from operations available
to common stockholders	$	252	$	210	$	324	$	358	$	332	32	%	$	908	$	1,224	35	%

(1)	The twelve month period ended December 31, 2023, has 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)

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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)	For the third quarter of 2023, includes certain legal accruals of $(12) million; for the first quarter of 2024, includes certain legal accruals of $(114) million primarily related to the
	settlement of cost of insurance litigation; for the fourth quarter of 2024, includes certain legal accruals of $(15) million and regulatory accruals of $(12) million related to estimated
	state guaranty fund assessments net of estimated state premium tax recoveries.
(6)	Includes severance expense related to initiatives to realign the workforce of $(3) million, $(3) million, $(49) million, $(7) million, $(16) million, and $(2) million in the first quarter of 2023,
	second quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth 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, $(2) million,
	and $(1) million in the second quarter of 2023, third quarter of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024,
	and fourth 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, $(1) million, and $(2) 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, third quarter of 2024, and fourth quarter of 2024, respectively.

	For the Three Months Ended													For the Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Revenues
Total revenues	$	700	$	4,116	$	5,153	$	4,111	$	5,063	NM		$	11,645	$	18,442	58.4	%
Less:
Revenue adjustments from annuity
and life insurance product features		(631)		(580)		105		149		(57)	91.0	%		(2,541)		(382)	85.0	%
Credit loss-related adjustments		(27)		(1)		(34)		(88)		(28)	-3.7	%		(80)		(152)	-90.0	%
Investment gains (losses) (1)		167		(81)		(230)		(105)		(67)	NM			(959)		(483)	49.6	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans (2)		(776)		194		201		(446)		587	175.6	%		(802)		535	166.7	%
Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses (3)		—		—		584		(2)		—	NM			—		582	NM
Adjusted operating revenues	$	1,967	$	4,584	$	4,527	$	4,603	$	4,628	135.3	%	$	16,027	$	18,342	14.4	%
(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.

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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													For the Twelve Months Ended
Earnings (Loss) Per Common Share – Diluted		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23 (1)		12/31/24	Change
Net income (loss)	$	(7.35)	$	6.93	$	5.11	$	(3.29)	$	9.63	231.0	%	$	(4.92)	$	18.41	NM
Less:
Net annuity product features, pre-tax		(5.96)		8.43		1.46		(2.23)		6.83	214.6	%		0.38		14.49	NM
Net life insurance product features, pre-tax		(1.33)		(0.75)		0.02		(0.73)		0.27	120.3	%		(2.32)		(1.18)	49.1	%
Credit loss-related adjustments, pre-tax		(0.15)		—		(0.20)		(0.53)		(0.16)	-6.7	%		(0.47)		(0.88)	-87.2	%
Investment gains (losses), pre-tax		0.98		(0.47)		(1.33)		(0.61)		(0.38)	NM			(5.65)		(2.78)	50.8	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, pre-tax		(4.57)		1.13		1.16		(2.61)		3.37	173.7	%		(4.72)		3.09	165.5	%
Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses, pre-tax		—		—		3.38		(0.01)		—	NM			—		3.36	NM
Other items, pre-tax (2)(3)(4)(5)		(0.18)		(1.08)		(0.19)		(0.11)		(0.19)	-5.6	%		(0.32)		(1.57)	NM
Income tax benefit (expense) related
to the above pre-tax items		2.37		(1.55)		(1.06)		1.44		(2.02)	NM			2.83		(3.19)	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		—	-100.0	%		0.03		—	-100.0	%
Adjusted income (loss) from operations	$	1.47	$	1.22	$	1.87	$	2.06	$	1.91	29.9	%	$	5.32	$	7.07	32.9	%

(1)	The twelve month period ended December 31, 2023 has been recast to conform to the current period presentation. See page 1 for further information.
(2)	For the third quarter of 2023, includes certain legal accruals of $(0.08); for the first quarter of 2024, includes certain legal accruals of $(0.65) primarily related to the
	settlement of cost of insurance litigation; for the fourth quarter of 2024, includes certain legal accruals of $(0.09) and regulatory accruals of $(0.07) related to
	estimated state guaranty fund assessments net of estimated state premium tax recoveries in the fourth quarter of 2024.
(3)	Includes severance expense related to initiatives to realign the workforce of $(0.02), $(0.02), $(0.29), $(0.04), $(0.09), and $(0.01) in the first quarter of 2023, second quarter
	of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth 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), $(0.01), and $(0.01) in the second quarter
	of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively.
(5)	Includes deferred compensation mark-to-market adjustment of $0.07, $(0.05), $0.01, $(0.04), $(0.08), $(0.01), 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, third quarter of 2024, and fourth 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 Twelve Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Stockholders’ Equity, End-of-Period
Stockholders' equity	$	6,893	$	7,546	$	7,949	$	9,013	$	8,269	20.0	%	$	6,893	$	8,269	20.0	%
Less:
Preferred stock		986		986		986		986		986	0.0%			986		986	0.0%
AOCI		(3,476)		(3,951)		(4,369)		(2,682)		(5,036)	-44.9	%		(3,476)		(5,036)	-44.9	%
Stockholders’ equity, excluding AOCI and preferred stock		9,383		10,511		11,332		10,709		12,319	31.3	%		9,383		12,319	31.3	%
MRB-related impacts		1,083		2,575		2,673		2,147		3,165	192.2	%		1,083		3,165	192.2	%
GLB and GDB hedge instruments gains (losses)		(2,085)		(2,675)		(2,770)		(2,763)		(3,062)	-46.9	%		(2,085)		(3,062)	-46.9	%
Reinsurance-related embedded derivatives and portfolio gains (losses)		(638)		(476)		(269)		(642)		(151)	76.3	%		(638)		(151)	76.3	%
Adjusted stockholders' equity	$	11,023	$	11,087	$	11,698	$	11,967	$	12,367	12.2	%	$	11,023	$	12,367	12.2	%
Stockholders’ Equity, Average
Stockholders' equity	$	5,046	$	7,219	$	7,747	$	8,481	$	8,641	71.2	%	$	5,437	$	8,022	47.5	%
Less:
Preferred stock		986		986		986		986		986	0.0%			986		986	0.0%
AOCI		(5,979)		(3,714)		(4,160)		(3,526)		(3,860)	35.4	%		(5,563)		(3,815)	31.4	%
Stockholders’ equity, excluding AOCI and preferred stock		10,039		9,947		10,921		11,021		11,515	14.7	%		10,014		10,851	8.4	%
MRB-related impacts		1,314		1,829		2,624		2,410		2,656	102.1	%		257		2,380	NM
GLB and GDB hedge instruments gains (losses)		(1,857)		(2,380)		(2,723)		(2,767)		(2,913)	-56.9	%		(1,155)		(2,695)	NM
Reinsurance-related embedded derivatives and portfolio gains (losses)		(318)		(557)		(372)		(455)		(396)	-24.5	%		(80)		(445)	NM
Adjusted average stockholders' equity	$	10,900	$	11,055	$	11,392	$	11,833	$	12,168	11.6	%	$	10,992	$	11,611	5.6	%
Book Value Per Common Share
Book value per share	$	34.81	$	38.46	$	40.78	$	46.97	$	42.60	22.4	%	$	34.81	$	42.60	22.4	%
Less:
AOCI		(20.49)		(23.17)		(25.59)		(15.70)		(29.46)	-43.8	%		(20.49)		(29.46)	-43.8	%
Book value per share, excluding AOCI		55.30		61.63		66.37		62.67		72.06	30.3	%		55.30		72.06	30.3	%
Less:
MRB-related gains (losses)		6.38		15.10		15.66		12.56		18.51	190.1	%		6.38		18.51	190.1	%
GLB and GDB hedge instruments gains (losses)		(12.29)		(15.69)		(16.22)		(16.17)		(17.91)	-45.7	%		(12.29)		(17.91)	-45.7	%
Reinsurance-related embedded derivatives and portfolio gains (losses)		(3.76)		(2.79)		(1.58)		(3.76)		(0.88)	76.6	%		(3.76)		(0.88)	76.6	%
Adjusted book value per share	$	64.97	$	65.01	$	68.51	$	70.04	$	72.34	11.3	%	$	64.97	$	72.34	11.3	%

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