Lincoln National (LNC) 8-K Results of Operations and Financial Condition

This document is dated February 13, 2006. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

Lincoln Financial Group
Statistical Report
Fourth Quarter
2005
Table of Contents
LFG Analyst Coverage
Notes
Financial Highlights	1 - 6
Ten-Year Summary	7
Quarterly Summary	8
Consolidated Statements of Income	9 - 10
Consolidating Statements of Income from Operations	11 - 12
Five-Year Comparative Balance Sheet	13
Quarterly Balance Sheet	14
Consolidating Balance Sheets	15 - 16
Lincoln Retirement
Income Statement & Operational Data	17 - 18
Account Value Roll Forward	19 - 20
Annuity Account Values	21 - 22
Life Insurance
Income Statements	23 - 24
Operational Data	25
Account Value Roll Forward	26 - 27
Investment Management
Income Statements	28 - 29
Assets Under Management Roll Forward	30 - 31
Lincoln UK
Income Statements	32 - 33
Operational Data	34
Other Operations	35
Restructuring Charges	36
Consolidated
Domestic Retail Deposits / Account Balances	37
Total Domestic Net Flows	37
Assets Managed	38
Investment Data	39
Common Stock / Debt Information	40

12/31/2005		ii
NOTES
Definitions and Presentation
"Income from Operations," "Operating Revenue," and "Return on Capital" are non-GAAP financial measures and do not replace GAAP net income (loss) and revenues. Detailed reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure are included in this statistical supplement.
*We exclude the after-tax effects of the following items from GAAP net income to arrive at income from operations:
	*Realized gains and losses on investments and derivatives,
	*Restructuring charges,
	*Gains and losses related to reinsurance embedded derivatives/trading account securities,
	*The cumulative effect of accounting changes,
	*Reserve changes on business sold through reinsurance net of related deferred gain amortization,
	*Gains and losses on the sale of subsidiaries and blocks of business,
	*Loss on early retirement of debt, including subordinated debt
* Operating revenue represents revenue excluding the following, as applicable:
	*Realized gains or losses on investments and derivatives,
	*Gains and losses related to reinsurance embedded derivatives/trading account securities,
	*Gains and losses on the sale of subsidiaries and blocks of business,
	*Deferred gain amortization related to reserve changes on business sold through reinsurance,
*Return on capital measures the effectiveness of LNC's use of its total capital, which includes equity (excluding accumulated other comprehensive income), debt and junior subordinated debentures issued to affiliated trusts. Return on capital is calculated by dividing income from operations (after adding back interest expense) by average capital. The difference between return on capital and return on shareholders' equity represents the effect of leveraging on LNC's consolidated results.
Income from operations, operating revenue, and return on capital are internal measures used by LNC in the management of its operations. Management believes that these performance measures explain the results of operations of LNC's ongoing operations in a manner that allows for a better understanding of the underlying trends in LNC's current business because the excluded items are either unpredictable and/or not related to decisions regarding the underlying businesses.
*Certain operating and statistical measures are included in this report to provide supplemental data regarding the performance of LNC’s current business. These measures include deposits, sales, net flows, first year premium, inforce, spread, and assets under management.
*On September 24, 2004, LNC completed the sale of its London-based international investment unit to its management. Certain metrics pages (2, 30A, 31A, 37A, 38A) have been presented excluding the investment assets managed by the London-based international investment unit to provide more consistent comparisons between periods.
*Certain reclassifications have been made to the prior periods presented to conform to the December 31, 2005 presentation.
Accounting Changes
*Effective January 1, 2004 LNC Implemented Statement of Position 03-1, "Accounting and reporting by Insurance Enterprises for certain nontraditional long-duration contracts and for Separate Accounts" ("the SOP"). Among other things, the SOP establishes standards for computing reserves for products with guaranteed benefits such as GMDB and for certain riders for Universal Life contracts. The effects of implementing the SOP, including any related effects on DAC from changes in estimated gross profits resulting from implementing the provisions of the SOP were recorded as a cumulative effect adjustment of $24.5 million in the first quarter of 2004.
*Effective January 1, 2003, LNC adopted the fair value recognition method of accounting for its stock option incentive plans under Statement of Financial Accounting Standards ("FAS") No. 123, "Account for Stock-based compensation" ("FAS 123"). LNC adopted the retroactive restatement method under FAS No. 148, "Accounting for Stock-based Compensation - Transition and Disclosure." As a result, LNC restated 2000, 2001, and 2002 to reflect stock-based compensation cost under the fair value method in FAS 123 for all employee awards granted, modified or settled in fiscal years beginning after December 31, 1994. Years prior to 2000 presented in this statistical report have not been restated.

12/31/2005																						PAGE 1
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
	For the Quarter Ended December 31												For the Year Ended December 31
	2005			2004									2005			2004
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Income from Operations - By Segment
Lincoln Retirement	$	117.3		$	100.5		$	16.8			16.7	%	$	471.5		$	414.6		$	56.9			13.7	%
Life Insurance		80.2			74.0			6.2			8.4	%		298.9			280.3			18.6			6.6	%
Investment Management		14.6			5.2			9.3			178.1	%		36.0			43.6			(7.6	)		-17.4	%
Lincoln UK		13.5			16.6			(3.1	)		-18.7	%		43.4			43.5			(0.2	)		-0.5	%
Corporate & Other		6.7			(6.3	)		13.0			NM			1.8			(57.2	)		59.0			NM
Total Income from Operations		232.3			189.9			42.3			22.3	%		851.6			724.8			126.8			17.5	%
Realized gains (losses) on investments and derivatives		(6.1	)		4.3			(10.4	)		NM			(14.5	)		(37.4	)		22.9			61.2	%
Net gain (loss) on reinsurance
derivative/trading account securities		-			(0.8	)		0.8			100.0	%		3.0			(0.6	)		3.7			NM
Gain on sale of subsidiaries/ businesses		-			0.4			(0.4	)		-100.0	%		9.3			61.9			(52.6	)		-85.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2									0.9			0.9
Loss on early retirement of subordinated debt		-			(4.1	)		4.1			100.0	%		-			(4.1	)		4.1			99.8	%
Restructuring charges		(1.1	)		(0.0	)		(1.1	)		NM			(19.1	)		(13.9	)		(5.2	)		-37.4	%
Cumulative effect of accounting change		-			-			-			NM			-			(24.5	)		24.5			100.0	%
Net Income	$	225.3		$	189.9		$	35.4			18.6	%	$	831.1		$	707.0		$	124.0			17.5	%
Earnings per share (diluted)
Income from Operations	$	1.31		$	1.07		$	0.24			22.3	%	$	4.83		$	4.05		$	0.79			19.5	%
Realized gains (losses) on investments and derivatives		(0.03	)		0.02			(0.05	)		NM			(0.08	)		(0.21	)		0.13			61.9	%
Net gain (loss) on reinsurance
derivative/trading account securities		-			-			-			NM			0.02			-			0.02			NM
Gain on sale of subsidiaries/ businesses		-			-			-			NM			0.05			0.35			(0.30	)		-85.7	%
Reserve development/ amortization of related deferred gain		-			-			-			NM			-			-			-			NM
Loss on early retirement of subordinated debt		-			(0.02	)		0.02			100.0	%		-			(0.02	)		0.02			NM
Restructuring charges		-			-			-			NM			(0.11	)		(0.08	)		(0.03	)		-37.5	%
Cumulative effect of accounting change		-			-			-			NM			-			(0.14	)		0.14			100.0	%
Net Income	$	1.28		$	1.07		$	0.21			19.6	%	$	4.72		$	3.95		$	0.77			19.5	%
Operating Revenue- By Segment
Lincoln Retirement	$	573.3		$	539.4		$	33.9			6.3	%	$	2,258.0		$	2,128.0		$	129.9			6.1	%
Life Insurance		519.6			503.7			15.8			3.1	%		1,993.5			1,952.9			40.6			2.1	%
Investment Management		152.7			127.7			25.0			19.6	%		567.8			534.9			32.9			6.2	%
Lincoln UK		62.5			89.3			(26.7	)		-29.9	%		318.4			342.2			(23.8	)		-6.9	%
Corporate & Other		89.2			81.1			8.1			10.0	%		352.1			335.1			17.0			5.1	%
Total Operating Revenue		1,397.4			1,341.2			56.2			4.2	%		5,489.8			5,293.2			196.7			3.7	%
Realized gains (losses) on investments		(9.6	)		7.2			(16.7	)		NM			(21.7	)		(45.7	)		24.0			52.6	%
Gains (losses) on derivatives		0.2			(0.4	)		0.7			156.0	%		(0.5	)		(11.6	)		11.1			96.0	%
Gain (loss) on reinsurance
derivative/trading account securities		0.0			(1.4	)		1.5			102.5	%		4.7			(1.0	)		5.6			NM
Gain on sale of subsidiaries/ businesses		-			0.6			(0.6	)		-100.0	%		14.2			135.0			(120.8	)		-89.5	%
Amortization of deferred gain-reserve development		0.3			0.3			-						1.3			1.3			-			-
Total Revenue	$	1,388.4		$	1,347.5		$	41.0			3.0	%	$	5,487.9		$	5,371.3		$	116.7			2.2	%

12/31/2005																		PAGE 2
Financial Highlights
Unaudited [Billions of Dollars]
Operational Data by Segment	For the Quarter Ended December 31										For the Year Ended December 31
	2005		2004								2005		2004
	Amount		Amount		Change			% Change			Amount		Amount		Change			% Change
Lincoln Retirement
Gross Deposits	$	2.639	$	2.387	$	0.252			10.6	%	$	10.310	$	9.020	$	1.289			14.3	%
Net Flows		0.621		0.794		(0.173	)		-21.8	%		2.887		2.922		(0.036	)		-1.2	%
Account Values (Gross)		72.462		64.788		7.673			11.8	%		72.462		64.788		7.674			11.8	%
Account Values (Net of Reinsurance)		70.229		62.491		7.738			12.4	%		70.229		62.491		7.738			12.4	%
Life Insurance Segment
First Year Premium- Retail (in millions)	$	262.644	$	231.160	$	31.484			13.6	%	$	845.428	$	812.565	$	32.864			4.0	%
First Year Premium- COLI (in millions)		13.113		20.376		(7.264	)		-35.6	%		70.481		73.657		(3.176	)		-4.3	%
First Year Premium- Total (in millions)		275.757		251.537		24.220			9.6	%		915.910		886.222		29.688			3.3	%
In-force		324.369		304.579		19.790			6.5	%		324.369		304.579		19.790			6.5	%
Account Values		15.368		14.382		0.987			6.9	%		15.368		14.382		0.987			6.9	%
Investment Management Segment
Retail Deposits	$	3.158	$	2.519	$	0.639			25.4	%	$	14.056	$	8.992	$	5.064			56.3	%
Retail Net Flows		1.347		1.170		0.177			15.1	%		7.098		3.136		3.961			126.3	%
Institutional In-flows		4.217		2.750		1.467			53.3	%		14.633		11.289		3.344			29.6	%
Institutional Net Flows		1.930		2.095		(0.165	)		-7.9	%		8.861		7.178		1.683			23.4	%
Total Deposits and In-flows		7.375		5.269		2.106			40.0	%		28.689		20.281		8.408			41.5	%
Total Net Flows		3.277		3.265		0.011			0.3	%		15.959		10.314		5.644			54.7	%
Assets Under Management- Retail and Inst'l		77.093		56.029		21.064			37.6	%		77.093		56.029		21.064			37.6	%
Assets Under Management - Insurance-related         Assets		44.483		43.980		0.503			1.1	%		44.483		43.980		0.503			1.1	%
Assets Under Management - Total Segment		121.576		100.009		21.567			21.6	%		121.576		100.009		21.567			21.6	%
Consolidated
Domestic Retail Deposits	$	6.188	$	5.290	$	0.899			17.0	%	$	25.494	$	19.280	$	6.215			32.2	%
Domestic Retail Account Balances		122.004		103.784		18.220			17.6	%		122.004		103.784		18.220			17.6	%
Domestic Retail Net Flows		2.348		2.527		(0.179	)		-7.1	%		11.207		7.335		3.871			52.8	%
Domestic Deposits		10.386		8.038		2.348			29.2	%		40.041		30.479		9.562			31.4	%
Domestic Net Flows		4.368		4.622		(0.254	)		-5.5	%		20.238		14.545		5.693			39.1	%
Assets Under Management		171.718		144.340		27.379			19.0	%		171.718		144.340		27.379			19.0	%
Operational Data (excluding Assets Managed by
Delaware's London-based International Investment Unit)
Investment Management Segment
Retail Deposits	$	3.158	$	2.519	$	0.639			25.4	%	$	14.056	$	8.987	$	5.070			56.4	%
Retail Net Flows		1.347		1.170		0.177			15.1	%		7.099		3.160		3.938			124.6	%
Institutional In-flows		4.217		2.750		1.467			53.3	%		14.633		6.637		7.995			120.5	%
Institutional Net Flows		1.930		2.095		(0.165	)		-7.9	%		8.861		3.884		4.977			128.1	%
Total Deposits and In-flows		7.375		5.269		2.106			40.0	%		28.689		15.624		13.065			83.6	%
Total Net Flows		3.277		3.265		0.011			0.3	%		15.960		7.045		8.915			126.6	%
Assets Under Management- Retail and Inst'l		77.093		56.029		21.064			37.6	%		77.093		56.029		21.064			37.6	%
Assets Under Management - Insurance-related        Assets		44.483		43.980		0.503			1.1	%		44.483		43.980		0.503			1.1	%
Assets Under Management - Total Segment		121.576		100.009		21.567			21.6	%		121.576		100.009		21.567			21.6	%
Consolidated
Domestic Retail Deposits	$	6.188	$	5.290	$	0.899			17.0	%	$	25.494	$	19.274	$	6.220			32.3	%
Domestic Retail Account Balances		122.004		103.784		18.220			17.6	%		122.004		103.784		18.220			17.6	%
Domestic Retail Net Flows		2.348		2.527		(0.179	)		-7.1	%		11.207		7.359		3.847			52.3	%
Domestic Deposits		10.386		8.038		2.348			29.2	%		40.041		25.823		14.219			55.1	%
Domestic Net Flows		4.368		4.622		(0.254	)		-5.5	%		20.238		11.274		8.963			79.5	%
Assets Under Management		171.718		144.340		27.379			19.0	%		171.718		144.340		27.379			19.0	%

12/31/2005																							PAGE 3
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
		For the Quarter Ended December 31												For the Year Ended December 31
		2005			2004									2005			2004
		Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Balance Sheet Assets - End of Period		$	124,787.6		$	116,219.3		$	8,568.3			7.4	%	$	124,787.6		$	116,219.3		$	8,568.3			7.4	%
Shareholders' Equity
Beg of Period (including AOCI)		$	6,284.4		$	5,970.8		$	313.5					$	6,175.6		$	5,811.6		$	364.0
End of Period (including AOCI)			6,384.4			6,175.6			208.8						6,384.4			6,175.6			208.8
End of Period (excluding AOCI)			5,856.6			5,244.9			611.7						5,856.6			5,244.9			611.7
Average Equity (excluding AOCI)			5,757.7			5,185.0			572.8						5,512.2			5,075.5			436.7
Return on Equity
Net Income/Average Equity (excluding AOCI)			15.7	%		14.6	%		1.0	%					15.1	%		13.9	%		1.1	%
Inc from Operations/Average Equity          (excluding AOCI)			16.1	%		14.7	%		1.5	%					15.4	%		14.3	%		1.2	%
Return on Capital
Inc from Operations/Average Capital			13.5	%		12.1	%		1.5	%					12.9	%		11.7	%		1.1	%
Common Stock Outstanding
Average for the Period - Diluted			176.6			176.7			(0.1	)		-0.1	%		176.1			179.0			(2.9	)		-1.6	%
End of Period - Assuming Conv of Pref.			174.0			173.8			0.2			0.1	%		174.0			173.8			0.2			0.1	%
End of Period - Diluted			176.9			176.1			0.8			0.5	%		176.9			176.1			0.8			0.5	%
Book Value (including AOCI)		$	36.69		$	35.53		$	1.16			3.3	%	$	36.69		$	35.53		$	1.16			3.3	%
Book Value (excluding AOCI)		$	33.66		$	30.17		$	3.48			11.5	%	$	33.66		$	30.17		$	3.48			11.5	%
Cash Returned to Shareholders
Share Repurchase - dollar amount		$	-			64.0			(64.0	)				$	103.6			350.2			(246.6	)
Dividends Declared to Shareholders			66.6			63.8			2.8						257.7			250.1			7.6
Total Cash Returned to Shareholders		$	66.6		$	127.8		$	(61.2	)				$	361.3		$	600.3		$	(239.0	)
Share Repurchase - number of shares			-			1.379			(1.379	)					2.331			7.612			(5.281	)
Dividend Declared on Common Stock - per share		$	0.380		$	0.365		$	0.015			4.1	%	$	1.475		$	1.415		$	0.060			4.2	%
	For the Quarter Ended December 31													For the Year Ended December 31
			2005			2004									2005			2004
			Amount			Amount									Amount			Amount
Comprehensive Income (Loss)
Net Income		$	225.3		$	189.9								$	831.1		$	707.0
Foreign Currency Translation			(16.1	)		37.4									(70.9	)		45.3
Net Unrealized Gains (Losses) on Securities			(72.4	)		42.8									(326.3	)		29.8
Losses on Derivatives			(1.5	)		(5.8	)								(6.7	)		(8.1	)
Minimum Pension Liability Adjustment			(2.9	)		(4.8	)								1.0			(5.4	)
Comprehensive Income		$	132.3		$	259.5								$	428.2		$	768.6

12/31/2005																						PAGE 4
Financial Highlights
Unaudited [Millions of Dollars]
	For the Quarter Ended December 31												For the Year Ended  December 31
	2005			2004									2005			2004
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Condensed Consolidated Statements of Income
Revenue:
Insurance Premiums and Fees	$	554.0		$	498.7		$	55.3			11.1	%	$	2,070.6		$	1,885.2		$	185.4			9.8	%
Investment Advisory Fees		79.0			56.0			23.1			41.2	%		279.0			252.5			26.5			10.5	%
Net Investment Income		668.1			674.1			(6.0	)		-0.9	%		2,702.3			2,704.1			(1.8	)		-0.1	%
Realized Gains (Losses) on Investments		(9.6	)		7.2			(16.7	)		NM			(21.7	)		(45.7	)		24.0			52.6	%
Gains (Losses) on Derivatives		0.2			(0.4	)		0.7			156.0	%		(0.5	)		(11.6	)		11.1			96.0	%
Gain (Loss) on Reinsurance
Derivative/Trading Account Securities		-			(1.4	)		1.4			NM			4.7			(1.0	)		5.6			NM
Gain on Sale of Subsidiaries/ Businesses		-			0.6			(0.6	)		NM			14.2			135.0			(120.8	)		-89.5	%
Amortization of Deferred Gain on
Indemnity Reinsurance		19.2			19.4			(0.2	)		-1.0	%		77.0			88.3			(11.3	)		-12.8	%
Other Revenue		77.4			93.4			(16.0	)		-17.2	%		362.3			364.4			(2.1	)		-0.6	%
Total Revenue		1,388.4			1,347.5			41.0			3.0	%		5,487.9			5,371.3			116.7			2.2	%
Benefits and Expenses:
Benefits		586.5			580.9			5.6			1.0	%		2,365.6			2,303.7			62.0			2.7	%
Underwriting, Acquisition,
Insurance and Other Expenses		506.0			517.5			(11.4	)		-2.2	%		2,047.7			2,032.0			15.7			0.8	%
Total Benefits and Expenses		1,092.5			1,098.4			(5.9	)		-0.5	%		4,413.3			4,335.6			77.7			1.8	%
Income before Federal Taxes		295.9			249.1			46.8			18.8	%		1,074.6			1,035.7			39.0			3.8	%
Federal Income Taxes		70.6			59.2			11.4			19.2	%		243.6			304.1			(60.6	)		-19.9	%
Income Before Cumulative Effect of
Accounting Change		225.3			189.9			35.4			18.7	%		831.1			731.5			99.5			13.6	%
Cumulative Effect of Accounting          Change, net of tax		-			-			-			-			-			(24.5	)		24.5			100.0	%
Net Income	$	225.3		$	189.9		$	35.4			18.7	%	$	831.1		$	707.0		$	124.0			17.5	%

12/31/2005										PAGE 5
Financial Highlights
Unaudited [Millions of Dollars]
	As of
	December			December
	2005			2004
	Amount			Amount			Change			% Change
Condensed Consolidated Balance Sheets
Assets:
Investments:
Available for Sale Securities:
Fixed Maturities	$	33,443.2		$	34,700.6		$	(1,257.4	)		-3.6	%
Equities		144.7			161.1			(16.4	)		-10.2	%
Trading Securities		3,246.0			3,237.4			8.7			0.3	%
Mortgage Loans on Real Estate		3,662.6			3,856.9			(194.3	)		-5.0	%
Real Estate		182.7			191.4			(8.7	)		-4.5	%
Policy Loans		1,862.2			1,870.6			(8.4	)		-0.4	%
Other Long-Term Investments		626.9			489.3			137.6			28.1	%
Total Investments		43,168.4			44,507.3			(1,338.8	)		-3.0	%
Deferred Acquisition Costs		4,092.2			3,445.0			647.3			18.8	%
Present Value of In-Force		998.9			1,095.2			(96.3	)		-8.8	%
Goodwill		1,194.2			1,195.9			(1.7	)		-0.1	%
Other Assets		11,586.9			10,771.4			815.6			7.6	%
Assets Held in Separate Accounts		63,746.8			55,204.6			8,542.2			15.5	%
Total Assets	$	124,787.6		$	116,219.3		$	8,568.3			7.4	%
Liabilities and Shareholders' Equity
Liabilities:
Insurance and Investment Contract Liabilities	$	47,222.8		$	47,402.5		$	(179.8	)		-0.4	%
Other Liabilities		7,433.6			7,436.6			(3.0	)		0.0	%
Liabilities Related to Separate Accounts		63,746.8			55,204.6			8,542.2			15.5	%
Total Liabilities		118,403.2			110,043.7			8,359.5			7.6	%
Shareholders' Equity:
Net Unrealized Gains on Securities
and Derivatives		503.9			836.9			(333.0	)		-39.8	%
Minimum Pension Liability Adjustment		(59.5	)		(60.5	)		1.0			1.7	%
Foreign Currency Translation Adjustment		83.4			154.3			(70.9	)		-46.0	%
Other Shareholders' Equity		5,856.6			5,244.9			611.7			11.7	%
Total Shareholders' Equity		6,384.4			6,175.6			208.8			3.4	%
Total Liabilities and Shareholders' Equity	$	124,787.6		$	116,219.3		$	8,568.3			7.4	%

12/31/2005										PAGE 6
Financial Highlights
Unaudited [Millions of Dollars]
	For the Year Ended December 31
	2005			2004
	Amount			Amount			Change			% Change
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	3,445.0		$	3,147.1		$	297.8			9.5	%
Deferral		903.2			844.8			58.2			6.9	%
Amortization		(461.1	)		(490.8	)		29.7			-6.1	%
Included in Total Benefits and Expenses		442.1			354.1			88.0			24.9	%
Adjustment related to realized (gains) losses
on available-for-sale securities		(48.5	)		(45.7	)		(2.8	)		-6.1	%
Adjustment related to unrealized (gains) losses
on available-for-sale securities		313.1			(14.8	)		327.9			NM
Foreign currency translation adjustment		(59.5	)		42.9			(102.4	)		NM
Cumulative effect of accounting change		-			(38.7	)		38.7			100.0	%
Balance at end of period	$	4,092.2		$	3,445.0		$	647.3			18.8	%
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	1,095.2		$	1,196.5		$	(101.3	)		-8.5	%
Amortization		(67.2	)		(120.3	)		53.1			-44.1	%
Foreign currency translation adjustment		(29.0	)		19.6			(48.7	)		NM
Cumulative effect of accounting change		-			(0.6	)		0.6			100.0	%
Balance at end of period	$	998.9		$	1,095.2		$	(96.3	)		-8.8	%
Roll Forward of Deferred Front-End Load*
Balance at beginning of period	$	764.1		$	750.6		$	13.5			1.8	%
Deferral		89.1			104.6			(15.5	)		-14.8	%
Amortization		(85.8	)		(122.8	)		37.1			-30.2	%
Included in Income from Operations		3.3			(18.2	)		21.6			NM
Foreign currency translation adjustment		(43.9	)		31.7			(75.6	)		NM
Balance at end of period	$	723.6		$	764.1		$	(40.5	)		-5.3	%
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

`																												PAGE 7
Ten-Year Summary
Unaudited [Millions of Dollars, except Common Share Data]
For the Year Ended December 31	2005			2004			2003			2002			2001			2000			1999			1998			1997			1996
Operating Revenue
Lincoln Retirement	$	2,258.0		$	2,128.0		$	1,985.1		$	1,985.5		$	2,033.1		$	2,138.9		$	2,128.0		$	2,050.6		$	1,959.5		$	1,759.5
Life Insurance		1,993.5			1,952.9			1,906.1			1,881.7			1,897.5			1,836.4			1,762.6			1,379.5			541.5			527.6
Investment Management		567.8			534.9			474.0			418.5			454.9			517.6			515.0			508.7			447.5			400.6
Lincoln UK		318.4			342.2			274.5			275.4			278.2			430.6			443.6			438.6			425.2			393.3
Corporate & Other		352.1			335.1			284.2			355.0			1,815.9			1,951.9			1,951.6			1,690.6			1,402.2			1,560.0
Total Operating Revenue		5,489.8			5,293.2			4,923.9			4,916.1			6,479.6			6,875.4			6,800.7			6,068.0			4,775.9			4,641.1
Realized gains (losses) on investments
and derivatives		(23.3	)		(61.3	)		(19.8	)		(271.5	)		(114.5	)		(28.3	)		3.0			19.0			122.6			92.5
Net gain (loss) on reinsurance
derivative/trading account securities		5.9			3.1			4.7			-			-			-			-			-			-			-
Gain on sale of subsidiaries/ businesses		14.2			135.0			-			(8.3	)		12.8			-			-			-			-			-
Mark to market adjustment on                 reclassification
from AFS to trading account securities		-			-			371.5			-			-			-			-			-			-			-
Amortization of deferred gain-reserve                development		1.3			1.3			3.6			(0.8	)		-			-			-			-			-			-
Total Revenue	$	5,487.9		$	5,371.3		$	5,283.9		$	4,635.5		$	6,378.0		$	6,847.1		$	6,803.7		$	6,087.1		$	4,898.5		$	4,733.6
Income from Operations
Lincoln Retirement	$	471.5		$	414.6		$	331.9		$	183.4		$	316.2		$	358.1		$	299.4		$	262.4		$	223.0		$	174.6
Life Insurance		298.9			280.3			264.5			269.0			275.3			256.7			212.0			149.2			39.9			41.2
Investment Management		36.0			43.6			34.5			1.8			(6.1	)		25.0			61.0			43.9			18.1			18.6
Lincoln UK		43.4			43.5			43.6			34.6			58.1			59.2			(13.9	)		70.9			(108.3	)		66.0
Corporate & Other		1.8			(57.2	)		(81.8	)		(57.2	)		1.0			(16.0	)		(83.1	)		4.0			(223.3	)		(1.7	)
Operating Income from Cont Oper		851.6			724.8			592.8			431.6			644.4			683.0			475.5			530.4			(50.6	)		298.8
Discontinued Operations		-			-			-			-			-			-			-			-			110.1			135.3
Income from Operations		851.6			724.8			592.8			431.6			644.4			683.0			475.5			530.4			59.4			434.1
Realized gains (losses) on investments and derivatives		(14.5	)		(37.4	)		(12.6	)		(176.4	)		(73.5	)		(17.5	)		3.8			13.7			72.9			57.6
Net gain (loss) on reinsurance
derivative/trading account securities		3.0			(0.6	)		2.7			-			-			-			-			-			-			-
Gain on sale of subsidiaries/ businesses		9.3			61.9			-			(9.4	)		15.0			-			-			-			-			-
Mark to market adjustment on reclassification
from AFS to trading account securities		-			-			241.5			-			-			-			-			-			-			-
Restructuring charges		(19.1	)		(13.9	)		(35.0	)		2.0			(24.7	)		(80.2	)		(18.9	)		(34.3	)		-			-
Loss on early retirement of subordinated debt		-			(4.1	)		(3.7	)		-			-			-			-			-			-			-
Reserve development/ amortization of related
deferred gain		0.9			0.9			(18.5	)		(199.1	)		-			-			-			-			-			-
Cumulative effect of accounting change		-			(24.5	)		(255.2	)		-			(15.6	)		-			-
Discontinued operations included in
income from operations		-			-			-			-			-			-			-			-			(110.1	)		(135.3	)
Income from Continuing Operations		831.1			707.0			511.9			48.8			545.7			585.3			460.4			509.8			22.2			356.4
Discontinued Operations included
in Income from Operations		-			-			-			-			-			-			-			-			911.8			157.2
Net Income	$	831.1		$	707.0		$	511.9		$	48.8		$	545.7		$	585.3		$	460.4		$	509.8		$	934.0		$	513.6
OTHER DATA
Assets	$	124,787.6		$	116,219.3		$	106,744.9		$	93,184.6		$	98,041.6		$	99,870.6		$	103,095.7		$	93,836.3		$	77,174.7		$	71,713.4
Shareholders' Equity
Including AOCI	$	6,384.4		$	6,175.6		$	5,811.6		$	5,347.5		$	5,303.8		$	4,980.6		$	4,263.9		$	5,387.9		$	4,982.9		$	4,470.0
Excluding AOCI		5,856.6			5,244.9			4,942.6			4,612.9			5,130.6			4,946.6			4,699.5			4,785.5			4,500.7			3,990.6
Average Equity (excluding AOCI)		5,512.2			5,075.5			4,756.7			4,983.3			5,057.1			4,831.4			4,786.2			4,636.3			4,172.7			3,851.7
Common Shares Outstanding (millions)
End of Period - Diluted		176.9			176.1			180.7			178.5			189.3			193.2			197.0			203.4			204.7			209.5
Average for the Period - Diluted		176.1			179.0			179.4			184.6			191.5			193.0			200.4			203.3			208.0			208.0
Per Share Data (Diluted)
Net Income from Continuing Operations	$	4.72		$	3.95		$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	0.11		$	1.71
Net Income		4.72			3.95			2.85			0.26			2.85			3.03			2.30			2.51			4.49			2.47
Income (Loss) from Continuing Operations		4.83			4.05			3.30			2.34			3.37			3.54			2.37			2.61			(0.24	)		1.44
Income from Operations		4.83			4.05			3.30			2.34			3.37			3.54			2.37			2.61			0.29			2.09
Shareholders' Equity Per Share
Shareholders' Equity (Including AOCI)	$	36.69		$	35.53		$	32.56		$	30.10		$	28.32		$	26.05		$	21.76		$	26.59		$	24.63		$	21.50
Shareholders' Equity (Excluding AOCI)		33.66			30.17			27.69			25.97			27.39			25.88			23.98			23.62			22.25			19.19
Dividends Declared (Common Stock)		1.475			1.415			1.355			1.295			1.235			1.175			1.115			1.055			0.995			0.935
Return on Equity
Net Income/Average Equity		15.1	%		13.9	%		10.8	%		1.0	%		10.8	%		12.1	%		9.6	%		11.0	%		22.4	%		13.3	%
Inc from Operations/Average Equity		15.4	%		14.3	%		12.5	%		8.7	%		12.7	%		14.1	%		9.9	%		11.4	%		1.4	%		11.3	%
Market Value of Common Stock
High for the Year	$	54.41		$	50.38		$	41.32		$	53.65		$	52.75		$	56.38		$	57.50		$	49.44		$	39.06		$	28.50
Low for the Year		41.59			40.06			24.73			25.15			38.00			22.63			36.00			33.50			24.50			20.38
Close for the Year		53.03			46.68			40.37			31.58			48.57			47.31			40.00			40.91			39.06			26.25

`																									PAGE 8
Quarterly Summary
Unaudited [Millions of Dollars, except Common Share Data]
	Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
For the Quarter Ended	2003			2004			2004			2004			2004			2005			2005			2005			2005
Operating Revenue
Lincoln Retirement	$	506.6		$	528.0		$	534.4		$	526.2		$	539.4		$	538.5		$	573.0		$	573.1		$	573.3
Life Insurance		488.2			483.4			484.8			481.1			503.7			484.2			497.3			492.4			519.6
Investment Management		133.8			135.2			139.0			133.0			127.7			130.4			138.0			146.8			152.7
Lincoln UK		78.4			76.1			81.0			95.8			89.3			74.6			78.4			102.8			62.5
Corporate & Other		63.7			56.1			105.5			92.4			81.1			73.8			95.2			93.8			89.2
Total Operating Revenue		1,270.7			1,278.8			1,344.7			1,328.5			1,341.2			1,301.5			1,382.0			1,409.0			1,397.4
Realized gains (losses) on investments and         derivatives		56.0			(15.9	)		(20.6	)		(27.5	)		6.7			(7.2	)		(4.0	)		(1.6	)		(9.3	)
Net gain (loss) on reinsurance
derivative/trading account securities		4.1			(4.2	)		10.3			(5.6	)		(1.4	)		4.4			(5.1	)		5.3			-
Gain on sale of subsidiaries/ businesses		-			-			24.1			110.3			0.6			14.2			-			-			-
Mark to market adjustment on reclassification
from AFS to trading account securities		371.5			-			-			-			-			-			-			-			-
Amortization of deferred gain-reserve          development		0.3			0.3			0.3			0.3			0.3			0.3			0.3			0.3			0.3
Total Revenue	$	1,702.6		$	1,259.0		$	1,358.7		$	1,406.1		$	1,347.5		$	1,313.2		$	1,373.2		$	1,413.1		$	1,388.4
Income from Operations
Lincoln Retirement	$	94.1		$	102.2		$	101.8		$	110.2		$	100.5		$	98.6		$	119.4		$	136.2		$	117.3
Life Insurance		73.4			74.8			76.2			55.4			74.0			67.7			75.8			75.1			80.2
Investment Management		19.0			12.5			13.4			12.5			5.2			7.4			3.9			10.2			14.6
Lincoln UK		13.0			6.2			10.7			10.1			16.6			10.0			10.3			9.6			13.5
Corporate & Other		(20.8	)		(20.3	)		(20.7	)		(9.9	)		(6.3	)		(11.3	)		9.2			(2.9	)		6.7
Income from Operations		178.7			175.3			181.4			178.2			189.9			172.5			218.6			228.2			232.3
Realized gains (losses) on investments and       derivatives		36.3			(10.3	)		(13.4	)		(17.9	)		4.3			(4.6	)		(2.7	)		(1.1	)		(6.1	)
Net gain (loss) on reinsurance
derivative/trading account securities		2.7			(2.7	)		6.7			(3.7	)		(0.8	)		2.8			(3.3	)		3.5			-
Gain on sale of subsidiaries/ businesses		-			-			15.6			45.9			0.4			9.3			-			-			-
Mark-to-market adjustment on
reclassification from AFS to trading account            securities		241.5			-			-			-			-			-			-			-			-
Reserve development/ amortization of related           deferred gain		0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2
Restructuring charges		(9.8	)		(7.5	)		(3.5	)		(2.9	)		-			(1.3	)		(15.0	)		(1.8	)		(1.1	)
Loss on early retirement of debt		-			-			-			-			(4.1	)		-			-			-			-
Income Before Cumulative Effect of
Accounting Change		449.6			155.0			187.0			199.7			189.9			178.9			197.9			228.9			225.3
Cumulative effect of accounting change, net of tax		(255.2	)		(24.5	)		-			-			-			-			-			-			-
Net Income	$	194.3		$	130.5		$	187.0		$	199.7		$	189.9		$	178.9		$	197.9		$	228.9		$	225.3
OTHER DATA
Assets	$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2		$	118,953.4		$	122,104.6		$	124,787.6
Shareholders' Equity
Beg of Period (including AOCI)	$	5,586.4		$	5,811.6		$	6,143.5		$	5,518.9		$	5,970.8		$	6,175.6		$	6,042.9		$	6,363.5		$	6,284.4
End of Period (including AOCI)		5,811.6			6,143.5			5,518.9			5,970.8			6,175.6			6,042.9			6,363.5			6,284.4			6,384.4
End of Period (excluding AOCI)		4,942.6			5,004.2			5,023.6			5,109.8			5,244.9			5,365.8			5,448.3			5,663.5			5,856.6
Average Equity (excluding AOCI)		4,888.2			5,016.8			5,024.6			5,075.7			5,185.0			5,338.8			5,392.3			5,559.8			5,757.7
Common Shares Outstanding
Average for the Period - Diluted		180.4			181.2			180.3			177.7			176.7			176.6			175.4			175.8			176.6
End of Period - Diluted		180.7			181.4			178.8			177.1			176.1			176.5			174.8			176.3			176.9
Per Share Data (Diluted)
Net Income	$	1.08		$	0.72		$	1.04		$	1.12		$	1.07		$	1.01		$	1.13		$	1.30		$	1.28
Income from Operations		0.99			0.97			1.00			1.00			1.07			0.98			1.25			1.30			1.31
Shareholders' Equity Per Share
Shareholders' Equity (including AOCI)	$	32.56		$	34.36		$	31.32		$	34.15		$	35.53		$	34.74		$	36.86		$	36.23		$	36.69
Shareholders' Equity (excluding AOCI)		27.69			27.99			28.51			29.23			30.17			30.85			31.56			32.65			33.66
Dividends Declared (Common Stock)		0.350			0.350			0.350			0.350			0.365			0.365			0.365			0.365			0.380
Return on Equity
Net Income/Average Equity		15.9	%		10.4	%		14.9	%		15.7	%		14.6	%		13.4	%		14.7	%		16.5	%		15.7	%
Inc from Operations/Average Equity		14.6	%		14.0	%		14.4	%		14.0	%		14.7	%		12.9	%		16.2	%		16.4	%		16.1	%
Market Value of Common Stock
Highest Price	$	41.32		$	48.87		$	50.38		$	47.50		$	48.70		$	49.42		$	47.77		$	52.42		$	54.41
Lowest Price		35.41			40.06			43.26			41.90			40.79			44.36			41.59			46.59			46.94
Closing Price		40.37			47.32			47.25			47.00			46.68			45.14			46.92			52.02			53.03

12/31/2005													PAGE 9
Consolidated Statements of Income
Unaudited [Millions of Dollars]
For the Year Ended December 31	2001			2002			2003			2004			2005
Revenue
Premiums	$	1,704.0		$	315.9		$	281.0		$	298.9		$	308.4
Surrender charges		101.5			87.8			84.7			78.7			73.3
Mortality assessments		533.3			530.3			550.5			558.3			568.3
Expense assessments		880.1			792.7			782.3			949.3			1,120.6
Investment advisory fees		197.2			183.3			205.0			252.5			279.0
Amortization of deferred gain		20.4			75.2			72.3			87.0			75.7
Amortization of deferred gain-reserve development		-			(0.8	)		3.6			1.3			1.3
Other revenue and fees		328.7			299.5			309.7			364.4			362.3
Net investment income		2,708.7			2,631.9			2,638.5			2,704.1			2,702.3
Earnings in unconsolidated affiliates		5.7			(0.6	)		-			-			-
Realized gains (losses) on investments		(105.2	)		(272.7	)		(16.7	)		(45.7	)		(21.7	)
Gains (losses) on derivatives		(9.3	)		1.2			(2.5	)		(11.6	)		(0.5	)
Net gain (loss) on reinsurance
derivative/trading account securities		-			-			4.1			(1.0	)		4.7
Gain on sale of subsidiaries/ businesses		12.8			(8.3	)		-			135.0			14.2
Mark-to-market adjustment on reclassification
from AFS to trading account securities		-			-			371.5			-			-
Total Revenue		6,378.0			4,635.5			5,283.9			5,371.3			5,487.9
Benefits and Expenses
Ins. benefits paid or provided:
Policy benefits		1,820.0			861.0			697.8			696.2			761.6
Div accum & div to policyholders		83.7			76.0			81.6			77.4			77.7
Interest credited to policy bal.		1,506.0			1,617.1			1,617.0			1,570.6			1,570.1
Reserve developments on reins. business sold		-			305.4			32.1			-			-
Def. sales inducements net of amortization		(12.1	)		(12.6	)		(14.1	)		(40.6	)		(43.9	)
Total insurance benefits		3,397.7			2,846.9			2,414.4			2,303.7			2,365.6
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		1,045.2			836.1			904.6			1,133.1			1,287.2
Operating and administrative expenses		1,114.5			928.0			894.4			897.4			914.1
Restructuring charges		38.0			(2.2	)		53.8			21.4			29.5
Taxes, licenses and fees		122.9			106.8			107.4			103.6			95.3
Foreign exchange		(1.4	)		0.3			(0.0	)		-			-
Subtotal		2,319.1			1,869.0			1,960.2			2,155.5			2,326.1
DAC deferral net of amortization		(334.2	)		(268.0	)		(321.6	)		(354.1	)		(442.1	)
PVIF amortization		113.1			136.5			80.2			120.3			67.2
Other intangibles amortization		12.1			8.2			7.9			9.7			7.8
Total underwriting, acquisition,
insurance and other expenses		2,110.1			1,745.8			1,726.8			1,931.5			1,959.0
Goodwill amortization		43.4			-			-			-			-
Interest		121.0			96.6			89.5			94.1			88.7
Loss on early retirement of debt								5.6			6.3
Total Benefits and Expenses		5,672.1			4,689.3			4,236.3			4,335.6			4,413.3
Income (Loss) Before Federal Income Tax and
Cumulative Effect of Accounting Change		705.9			(53.8	)		1,047.6			1,035.7			1,074.6
Federal income taxes		144.7			(102.6	)		280.4			304.1			243.6
Income Before Cumulative Effect of
Accounting Change		561.2			48.8			767.2			731.5			831.1
Cumulative effect of accounting change		(15.6	)		-			(255.2	)		(24.5	)		-
Net Income	$	545.7		$	48.8		$	511.9		$	707.0		$	831.1
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	3,070.5		$	2,866.8		$	2,939.7		$	3,147.1		$	3,445.0
Deferral		701.0			612.4			639.6			844.8			903.2
Amortization		(366.8	)		(344.4	)		(318.0	)		(490.8	)		(461.1	)
Included in Total Benefits and Expenses		334.2			268.0			321.6			354.1			442.1
Adjustment related to realized (gains) losses
on available-for-sale securities		112.9			115.0			(50.2	)		(45.7	)		(48.5	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(187.2	)		(338.5	)		(126.1	)		(14.8	)		313.1
Foreign currency translation adjustment		(16.0	)		56.9			62.1			42.9			(59.5	)
Disposition of business		(425.9	)		-			-			-			-
Other		(21.7	)		(28.4	)		-			(38.7	)		-
Balance at end of period	$	2,866.7		$	2,939.9		$	3,147.1		$	3,445.0		$	4,092.2
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	1,483.3		$	1,362.5		$	1,250.1		$	1,196.5		$	1,095.2
Amortization		(113.1	)		(136.5	)		(80.2	)		(120.3	)		(67.2	)
Foreign currency translation adjustment		(7.0	)		24.1			26.6			19.6			(29.0	)
Other		(0.7	)		-			-			(0.6	)		-
Balance at end of period	$	1,362.5		$	1,250.1		$	1,196.5		$	1,095.2		$	998.9
Roll Forward of Deferred Front-End Load*
Balance at beginning of period	$	550.6		$	589.7		$	656.8		$	750.6		$	764.1
Deferral		107.5			102.5			102.5			104.6			89.1
Amortization		(57.8	)		(75.7	)		(54.4	)		(122.8	)		(85.8	)
Included in Income from Operations		49.7			26.8			48.1			(18.2	)		3.3
Foreign currency translation adjustment		(10.6	)		40.2			45.8			31.7			(43.9	)
Balance at end of period	$	589.7		$	656.8		$	750.6		$	764.1		$	723.6
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

12/31/2005																									PAGE 10
Consolidated Statements of Income
Unaudited [Millions of Dollars]
For the Quarter Ended	Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2004			2004			2004			2004			2005			2005			2005			2005
Revenue
Premiums	$	77.2		$	75.6		$	74.0		$	70.6		$	78.7		$	70.4		$	72.6		$	83.1		$	82.4
Surrender charges		23.0			20.2			19.2			18.2			21.1			20.1			16.6			18.7			18.0
Mortality assessments		138.1			137.9			140.1			139.8			140.4			142.3			142.1			138.8			145.1
Expense assessments		215.9			225.5			230.9			234.5			258.5			256.6			268.1			287.3			308.5
Investment advisory fees		58.3			62.7			66.4			67.4			56.0			59.4			66.9			73.6			79.0
Amortization of deferred gain		17.4			17.9			17.9			32.1			19.1			18.9			18.9			18.9			18.9
Amortization of deferred gain-reserve      development		0.3			0.3			0.3			0.3			0.3			0.3			0.3			0.3			0.3
Other revenue and fees		81.7			61.4			112.9			96.6			93.4			74.0			93.2			117.7			77.3
Net investment income		659.2			677.5			683.1			669.4			674.1			659.8			703.6			670.8			668.1
Realized gains (losses) on investments		64.8			(12.0	)		(17.8	)		(23.0	)		7.2			(8.7	)		(0.6	)		(2.7	)		(9.6	)
Gains (losses) on derivatives		(8.8	)		(3.8	)		(2.8	)		(4.5	)		(0.4	)		1.5			(3.4	)		1.2			0.2
Gain (loss) on reinsurance
derivative/trading account securities		4.1			(4.2	)		10.3			(5.6	)		(1.4	)		4.4			(5.1	)		5.3			0.0
Gain (loss) on sale of subsidiaries/ businesses		-			-			24.1			110.3			0.6			14.2			-			-			-
Mark-to-market adjustment on reclassification
from AFS to trading account securities		371.5			-			-			-			-			-			-			-			-
Total Revenue		1,702.6			1,259.0			1,358.7			1,406.1			1,347.5			1,313.2			1,373.2			1,413.1			1,388.4
Benefits and Expenses
Ins. benefits paid or provided:
Policy benefits		153.6			183.5			184.1			157.3			171.4			174.1			194.8			213.2			179.5
Div accum & div to policyholders		33.8			18.5			18.6			16.7			23.6			18.4			18.4			17.3			23.6
Interest credited to policy bal.		395.7			390.4			390.4			392.5			397.4			389.5			391.8			394.2			394.7
Def. sales inducements net of amortization		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)		(9.4	)		(11.7	)		(11.5	)		(11.3	)
Total insurance benefits		577.5			583.3			583.3			556.1			580.9			572.6			593.3			613.2			586.5
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related               expenses		274.4			278.9			277.7			245.1			331.3			285.0			312.2			332.8			357.2
Operating and administrative expenses		231.4			187.4			252.3			264.6			193.1			212.4			235.2			249.1			217.3
Restructuring charges		15.0			11.5			5.3			4.5			0.1			1.9			23.2			2.7			1.7
Taxes, licenses and fees		27.3			29.5			27.2			25.6			21.3			30.9			23.1			24.1			17.2
Subtotal		548.1			507.4			562.5			539.8			545.8			530.2			593.7			608.8			593.4
DAC deferral net of amortization		(107.3	)		(89.9	)		(93.9	)		(85.4	)		(84.9	)		(70.7	)		(92.3	)		(153.8	)		(125.4	)
PVIF amortization		14.4			24.8			20.5			50.8			24.2			18.9			16.5			18.2			13.6
Other intangibles amortization		2.0			2.0			2.0			2.0			3.8			1.9			1.9			2.0			2.0
Total underwriting, acquisition,
insurance and other expenses		457.1			444.3			491.1			507.1			488.9			480.4			519.8			475.2			483.6
Interest		22.2			22.8			24.7			24.4			22.2			22.4			22.1			21.7			22.4
Loss on early retirement of debt		-			-			-			-			6.3			-			-			-			-
Total Benefits and Expenses		1,056.8			1,050.4			1,099.1			1,087.7			1,098.4			1,075.4			1,135.2			1,110.1			1,092.5
-
Income Before Federal Income Tax and
Cumulative Effect of Accounting Change		645.7			208.6			259.6			318.4			249.1			237.8			238.0			303.0			295.9
Federal income taxes		196.2			53.7			72.6			118.7			59.2			58.9			40.1			74.0			70.6
Income Before Cumulative Effect of
Accounting Change		449.6			155.0			187.0			199.7			189.9			178.9			197.9			228.9			225.3
Cumulative effect of accounting change		(255.2	)		(24.5	)		-			-			-			-			-			-			-
Net Income	$	194.3		$	130.5		$	187.0		$	199.7		$	189.9		$	178.9		$	197.9		$	228.9		$	225.3
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	2,879.7		$	3,147.1		$	2,999.0		$	3,521.4		$	3,326.8		$	3,445.0		$	3,712.7		$	3,554.5		$	3,904.0
Deferral		197.4			198.7			201.8			206.2			238.1			204.9			215.0			229.9			253.5
Amortization		(90.1	)		(108.8	)		(108.0	)		(120.8	)		(153.2	)		(134.2	)		(122.7	)		(76.1	)		(128.1	)
Included in Total Benefits and Expenses		107.3			89.9			93.9			85.4			84.9			70.7			92.3			153.8			125.4
Adjustment related to realized (gains) losses
on available-for-sale securities		(27.9	)		(17.6	)		(6.0	)		(6.2	)		(15.8	)		(11.7	)		(14.3	)		(13.8	)		(8.7	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		145.2			(201.1	)		442.7			(271.2	)		14.7			215.7			(204.8	)		217.4			84.7
Foreign currency translation adjustment		42.8			19.9			(8.4	)		(2.5	)		33.8			(7.0	)		(31.4	)		(8.0	)		(13.2	)
Other		-			(39.2	)		0.2			(0.2	)		0.5			-			-			-			-
Balance at end of period	$	3,147.1		$	2,999.0		$	3,521.4		$	3,326.8		$	3,445.0		$	3,712.7		$	3,554.5		$	3,904.0		$	4,092.2
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	1,192.5		$	1,196.5		$	1,180.0		$	1,155.8		$	1,103.9		$	1,095.2		$	1,073.1		$	1,041.7		$	1,019.4
Amortization		(14.4	)		(24.8	)		(20.5	)		(50.8	)		(24.2	)		(18.9	)		(16.5	)		(18.2	)		(13.6	)
Foreign currency translation adjustment		18.4			8.9			(3.7	)		(1.1	)		15.6			(3.3	)		(14.8	)		(4.1	)		(6.9	)
Other		-			(0.6	)		-			-			-			-			-			-			-
Balance at end of period	$	1,196.5		$	1,180.0		$	1,155.8		$	1,103.9		$	1,095.2		$	1,073.1		$	1,041.7		$	1,019.4		$	998.9
Roll Forward of Deferred Front-End Load*
Balance at beginning of period	$	717.9		$	750.6		$	768.5		$	764.7		$	744.4		$	764.1		$	756.2		$	731.4		$	721.2
Deferral		25.8			25.0			25.8			25.2			28.6			22.6			22.0			20.8			23.7
Amortization		(24.6	)		(21.8	)		(23.3	)		(43.7	)		(34.0	)		(25.2	)		(23.6	)		(25.0	)		(11.9	)
Included in Income from Operations		1.2			3.1			2.4			(18.5	)		(5.3	)		(2.7	)		(1.5	)		(4.2	)		11.8
Foreign currency translation adjustment		31.5			14.7			(6.2	)		(1.8	)		25.0			(5.2	)		(23.3	)		(5.9	)		(9.5	)
Balance at end of period	$	750.5		$	768.5		$	764.7		$	744.4		$	764.1		$	756.2		$	731.4		$	721.2		$	723.6
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

12/31/2005																						PAGE 11
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
For the Quarter Ended December 31	Lincoln Retirement						Life Insurance						Investment Management						Lincoln UK
	Dec			Dec			Dec			Dec			Dec			Dec			Dec			Dec
	2005			2004			2005			2004			2005			2004			2005			2004
Operating Revenue
Premiums	$	9.2		$	9.9		$	57.8		$	53.6		$	-		$	-		$	15.4		$	14.9
Surrender charges		5.9			6.4			11.6			14.2			0.5			0.5			-			-
Mortality assessments		-			-			137.8			130.5			-			-			7.3			9.8
Expense assessments		199.6			157.1			62.3			58.0			17.6			15.5			29.1			28.3
Investment advisory fees		-			-			-			-			103.5			82.8			-			-
Other revenue and fees		(1.9	)		(2.0	)		8.9			8.1			17.8			16.7			(7.1	)		16.0
Net investment income		360.6			368.0			241.2			239.4			13.2			12.3			17.8			20.2
Total Operating Revenue		573.3			539.4			519.6			503.7			152.7			127.7			62.5			89.3
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		49.9			43.4			102.1			106.4			-			-			27.5			21.3
Div accum & div to policyholders		-			-			23.6			23.6			-			-			-			-
Interest credited to policy bal.		202.9			210.4			150.2			147.1			7.1			6.8			-			-
Def. sales inducements net of amortization		(11.3	)		(11.5	)		-			-			-			-			-			-
Total insurance benefits		241.6			242.2			275.9			277.2			7.1			6.8			27.5			21.3
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		162.8			156.7			109.2			99.4			15.9			11.7			0.1			1.0
Operating and administrative expenses		69.8			59.6			43.3			42.9			109.5			100.2			24.2			14.1
Taxes, licenses and fees		1.5			2.5			14.7			12.5			2.8			3.1			0.0			-
Subtotal		234.0			218.8			167.3			154.7			128.2			114.9			24.3			15.1
Net DAC (deferral) amortization		(58.0	)		(49.0	)		(56.1	)		(54.0	)		(3.9	)		(3.9	)		(7.4	)		21.9
PVIF amortization		2.4			2.3			13.8			16.4			-			-			(2.5	)		5.6
Other intangibles amortization		-			-			-			-			2.0			3.8			-			-
Total underwriting, acquisition,
insurance and other expenses		178.4			172.1			124.9			117.1			126.3			114.8			14.3			42.5
Total Operating Expenses		420.0			414.3			400.8			394.3			133.3			121.7			41.8			63.8
Income from Operations before federal taxes		153.4			125.1			118.8			109.5			19.4			6.0			20.7			25.5
Federal income taxes		36.1			24.7			38.6			35.5			4.8			0.8			7.2			8.9
Income from Operations	$	117.3		$	100.5		$	80.2		$	74.0		$	14.6		$	5.2		$	13.5		$	16.6

12/31/2005																PAGE 11A
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
	Corporate and						Consolidating
For the Quarter Ended December 31	Other Operations						Adjustments						Consolidated *
	Dec			Dec			Dec			Dec			Dec			Dec
	2005			2004			2005			2004			2005			2004
Operating Revenue
Premiums	$	-		$	0.3		$	-		$	-		$	82.4		$	78.7
Surrender charges		-			-			-			-			18.0			21.1
Mortality assessments		-			-			-			-			145.1			140.4
Expense assessments		-			(0.5	)		-			-			308.5			258.5
Investment advisory fees		-			-			(24.5	)		(26.8	)		79.0			56.0
Amortization of deferred gain		18.9			19.1			-			-			18.9			19.1
Other revenue and fees		220.7			172.4			(161.1	)		(117.7	)		77.3			93.4
Net investment income		36.5			34.8			(1.3	)		(0.6	)		668.1			674.1
Total Operating Revenue		276.1			226.2			(186.9	)		(145.1	)		1,397.4			1,341.2
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		(0.0	)		0.4			-			-			179.5			171.4
Div accum & div to policyholders		-			-			-			-			23.6			23.6
Interest credited to policy bal.		34.5			33.1			-			-			394.7			397.4
Def. sales inducements net of amortization		-			-			-			-			(11.3	)		(11.5	)
Total insurance benefits		34.4			33.4			-			-			586.5			580.9
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		137.8			87.7			(68.6	)		(25.2	)		357.2			331.3
Operating and administrative expenses		88.4			95.8			(117.3	)		(119.3	)		217.9			193.2
Taxes, licenses and fees		(1.7	)		3.3			-			-			17.2			21.3
Subtotal		224.5			186.9			(185.9	)		(144.5	)		592.3			545.9
Net DAC (deferral) amortization		0.1			0.1			-			-			(125.4	)		(84.9	)
PVIF amortization		-			-			-			-			13.6			24.2
Other intangibles amortization		-			-			-			-			2.0			3.8
Total underwriting, acquisition,
insurance and other expenses		224.6			186.9			(185.9	)		(144.5	)		482.5			489.0
Interest		22.9			22.8			(1.0	)		(0.6	)		21.8			22.1
Foreign exchange adjustment		-			(0.0	)		-			-			-			(0.0	)
Total Operating Expenses		281.8			243.1			(186.9	)		(145.1	)		1,090.9			1,092.0
Income (Loss) from Operations before federal taxes		(5.7	)		(16.9	)								306.5			249.2
Federal income taxes		(12.5	)		(10.6	)								74.3			59.3
Income (Loss) from Operations	$	6.7		$	(6.3	)							$	232.3		$	189.9
* See page 1 for a reconciliation of Income from Operations to consolidated Net Income

12/31/2005																						PAGE 12
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
													Investment
For the Year Ended December 31	Lincoln Retirement						Life Insurance						Management						Lincoln UK
	Dec			Dec			Dec			Dec			Dec			Dec			Dec			Dec
	2005			2004			2005			2004			2005			2004			2005			2004
Operating Revenue
Premiums	$	45.7		$	33.0		$	198.7		$	194.0		$	-		$	-		$	63.3		$	70.3
Surrender charges		27.4			25.0			43.6			51.8			2.3			1.9			-			-
Mortality assessments		-			-			533.6			518.7			-			-			34.8			39.5
Expense assessments		727.1			580.5			213.1			208.6			68.9			56.8			111.5			103.9
Investment advisory fees		-			-			-			-			377.8			358.3			-			-
Other revenue and fees		(6.2	)		(6.3	)		34.0			31.4			65.8			66.2			30.3			52.8
Net investment income		1,463.9			1,495.9			970.7			948.4			53.0			51.7			78.6			75.7
Total Operating Revenue		2,258.0			2,128.0			1,993.5			1,952.9			567.8			534.9			318.4			342.2
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		223.0			189.9			422.3			404.1			-			-			116.0			100.4
Div accum & div to policyholders		-			-			77.7			77.4			-			-			-			-
Interest credited to policy bal.		819.0			836.0			590.2			579.7			27.9			26.9			-			-
Def. sales inducements net of amortization		(43.9	)		(40.6	)		-			-			-			-			-			-
Total insurance benefits		998.1			985.2			1,090.3			1,061.2			27.9			26.9			116.0			100.4
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		626.3			586.7			362.6			331.1			60.1			53.0			2.3			2.9
Operating and administrative expenses		259.2			231.8			176.4			168.6			430.3			392.9			98.3			81.0
Taxes, licenses and fees		10.5			14.6			53.9			49.1			10.7			17.0			0.0			-
Subtotal		895.9			833.1			592.9			548.9			501.1			462.9			100.6			83.9
Net DAC (deferral) amortization		(275.8	)		(247.9	)		(191.9	)		(152.2	)		(19.8	)		(27.1	)		45.1			72.8
PVIF amortization		16.6			20.0			60.6			82.2			-			-			(10.1	)		18.1
Other intangibles amortization		-			-			-			-			7.8			9.7			-			-
Total underwriting, acquisition,
insurance and other expenses		636.7			605.2			461.6			478.9			489.0			445.5			135.7			174.8
Total Operating Expenses		1,634.8			1,590.5			1,551.9			1,540.0			516.9			472.5			251.7			275.2
Income from Operations before federal taxes		623.2			537.6			441.6			412.9			50.9			62.4			66.7			67.0
Federal income taxes		151.7			123.0			142.7			132.6			14.9			18.9			23.4			23.4
Income from Operations	$	471.5		$	414.6		$	298.9		$	280.3		$	36.0		$	43.6		$	43.4		$	43.5

12/31/2005																PAGE 12A
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
	Corporate and						Consolidating
For the Year Ended December 31	Other Operations						Adjustments						Consolidated *
	Dec			Dec			Dec			Dec			Dec			Dec
	2005			2004			2005			2004			2005			2004
Operating Revenue
Premiums	$	0.7		$	1.6		$	-		$	-		$	308.4		$	298.9
Surrender charges		-			-			-			-			73.3			78.7
Mortality assessments		-			-			-			-			568.3			558.3
Expense assessments		-			(0.5	)		-			-			1,120.6			949.3
Investment advisory fees		-			-			(98.8	)		(105.8	)		279.0			252.5
Amortization of deferred gain		75.7			87.0			-			-			75.7			87.0
Other revenue and fees		803.0			629.9			(564.7	)		(409.6	)		362.3			364.4
Net investment income		140.4			134.4			(4.2	)		(1.8	)		2,702.3			2,704.1
Total Operating Revenue		1,019.8			852.3			(667.7	)		(517.2	)		5,489.8			5,293.2
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		0.3			1.9			-			-			761.6			696.2
Div accum & div to policyholders		-			-			-			-			77.7			77.4
Interest credited to policy bal.		133.0			128.0			-			-			1,570.1			1,570.6
Def. sales inducements net of amortization		-			-			-			-			(43.9	)		(40.6	)
Total insurance benefits		133.3			129.9			-			-			2,365.6			2,303.7
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		501.3			317.2			(265.3	)		(157.8	)		1,287.2			1,133.1
Operating and administrative expenses		350.5			380.9			(399.2	)		(357.6	)		915.5			897.5
Taxes, licenses and fees		20.1			22.8			-			-			95.3			103.6
Subtotal		872.0			720.9			(664.5	)		(515.4	)		2,298.0			2,134.3
Net DAC (deferral) amortization		0.4			0.4			-			-			(442.1	)		(354.1	)
PVIF amortization		-			-			-			-			67.2			120.3
Other intangibles amortization		-			-			-			-			7.8			9.7
Total underwriting, acquisition,
insurance and other expenses		872.4			721.3			(664.5	)		(515.4	)		1,930.9			1,910.2
Interest		90.5			95.9			(3.2	)		(1.8	)		87.3			94.0
Foreign Exchange		-			-			-			-			-			-
Total Operating Expenses		1,096.2			947.0			(667.7	)		(517.2	)		4,383.8			4,307.9
Income (Loss) from Operations before federal taxes		(76.4	)		(94.7	)		-			-			1,106.1			985.2
Federal income taxes		(78.1	)		(37.4	)		-			-			254.5			260.5
Income (Loss) from Operations	$	1.8		$	(57.2	)	$	-		$	-		$	851.6		$	724.8
* See page 1 for a reconciliation of Income from Operations to consolidated Net Income

12/31/2005													PAGE 13
Five Year Comparative Balance Sheet
Unaudited [Millions of Dollars except Common Share Data]
	As of December 31,
ASSETS	2001			2002			2003			2004			2005
Investments
Corporate bonds	$	23,105.1		$	25,934.7		$	25,868.5		$	26,889.0		$	25,860.7
U.S. government bonds		410.5			513.6			225.8			163.0			161.8
Foreign government bonds		1,174.7			1,110.2			1,194.6			1,285.9			1,203.3
Mortgage backed securities		3,524.7			5,015.5			5,195.6			6,090.5			5,951.2
State and municipal bonds		44.7			114.4			152.8			166.0			128.8
Preferred stocks-redeemable		85.9			79.0			132.2			106.1			137.4
Common stocks		319.3			228.0			98.4			69.8			55.9
Preferred stocks-equity		151.2			109.2			100.7			91.3			88.8
Total AFS Securities		28,816.1			33,104.7			32,968.6			34,861.7			33,587.9
Trading securities		-			-			3,120.1			3,237.4			3,246.0
Mortgage loans		4,535.5			4,205.5			4,195.0			3,856.9			3,662.6
Real estate		267.9			279.7			112.9			191.4			182.7
Policy loans		1,939.7			1,945.6			1,924.4			1,870.6			1,862.2
Other long-term investments		553.8			464.4			456.7			489.3			626.9
Total Investments		36,113.1			39,999.9			42,777.6			44,507.3			43,168.4
Invest in unconsol affiliates		8.1			-			-			-			-
Cash and invested cash		3,095.5			1,690.5			1,711.2			1,661.7			2,311.7
Premiums and fees receivable		400.1			212.9			352.1			232.9			343.2
Accrued investment income		563.5			536.7			522.7			525.1			526.4
Federal income taxes recoverable		55.5			317.7			45.9			-			-
Amounts recoverable from reinsurers		6,030.4			7,280.0			7,839.2			7,067.5			6,926.3
Deferred acquisition costs		2,866.8			2,939.7			3,147.1			3,445.0			4,092.2
Other intangible assets		68.6			73.0			79.1			106.4			143.3
Present value of in-force		1,362.5			1,250.1			1,196.5			1,095.2			998.9
Goodwill		1,211.8			1,233.2			1,234.7			1,195.9			1,194.2
Other		1,432.4			1,472.5			1,273.5			1,177.7			1,336.1
Assets held in separate accounts		44,833.4			36,178.3			46,565.2			55,204.6			63,746.8
Total Assets	$	98,041.6		$	93,184.6		$	106,744.9		$	116,219.3		$	124,787.6
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Insurance and Investment Contract Liabilities:
Reserves	$	20,454.9		$	22,639.3		$	23,549.8		$	23,242.1		$	23,609.2
Unpaid claims		1,087.5			778.4			1,058.4			1,080.3			1,040.8
Unearned premiums		66.9			141.2			104.5			5.8			2.1
Premium deposit funds		18,585.0			20,518.8			21,769.3			22,215.1			21,713.3
Participating policyholders' funds		100.2			156.7			155.1			145.3			111.2
Other policyholders' funds		562.7			610.9			680.9			714.0			746.1
Total Ins and Inv Contr Liabilities		40,857.2			44,845.3			47,318.1			47,402.5			47,222.8
Federal income tax liabilities		-			-			-			77.6			19.8
Short-term debt		350.2			153.0			44.0			214.4			119.9
Long-term debt		861.8			1,119.2			1,117.5			1,048.6			999.0
Junior subordinated debentures issued to affiliated trusts		474.7			392.7			341.3			339.8			334.0
Embedded derivative - modco		-			-			352.3			375.3			292.2
Other liabilities		4,216.1			4,171.5			4,270.1			4,467.8			4,832.8
Deferred gain on indemnity reinsurance		1,144.5			977.1			924.8			913.0			836.0
Liability related to separate accounts		44,833.4			36,178.3			46,565.2			55,204.6			63,746.8
Total Liabilities		92,737.8			87,837.2			100,933.2			110,043.7			118,403.2
Unrealized gains		217.2			781.6			815.1			836.9			503.9
Foreign currency		(8.0	)		50.8			109.0			154.3			83.4
Minimum pension liability adjustment		(36.0	)		(97.8	)		(55.1	)		(60.5	)		(59.5	)
Shareholders' equity- other		5,130.6			4,612.9			4,942.6			5,244.9			5,856.6
Total Shareholders' Equity		5,303.8			5,347.5			5,811.6			6,175.6			6,384.4
Total Liabilities
and Shareholders' Equity	$	98,041.6		$	93,184.6		$	106,744.9		$	116,219.3		$	124,787.6
Shareholders' Equity Per Share
Book Value, Excluding AOCI	$	27.39		$	25.97		$	27.69		$	30.17		$	33.66
Common shares outstanding (in millions)		187.3			177.6			178.5			173.8			174.0

12/31/2005																									PAGE 14
Quarterly Balance Sheet
Unaudited [Millions of Dollars, except Common Share Data]
	Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2004			2004			2004			2004			2005			2005			2005			2005
ASSETS
Investments
Corporate bonds	$	25,868.5		$	26,209.2		$	25,638.1		$	26,750.0		$	26,889.0		$	26,305.9		$	26,757.7		$	26,453.6		$	25,860.7
U.S. government bonds		225.8			234.2			156.3			162.9			163.0			165.7			174.4			158.3			161.8
Foreign government bonds		1,194.6			1,321.0			1,223.8			1,233.8			1,285.9			1,296.7			1,248.0			1,195.0			1,203.3
Mortgage backed securities		5,195.6			5,617.0			5,524.1			5,793.4			6,090.5			6,193.8			6,503.0			6,237.1			5,951.2
State and municipal bonds		152.8			164.1			164.8			168.8			166.0			156.3			160.8			157.9			128.8
Preferred stocks - redeemable		132.2			120.9			100.7			113.9			106.1			106.5			131.2			123.0			137.4
Common stocks		98.4			97.4			92.3			86.5			69.8			65.2			64.2			62.2			55.9
Preferred stocks-equity		100.7			100.2			90.5			91.6			91.3			89.6			90.3			89.4			88.8
Total AFS Securities		32,968.6			33,864.1			32,990.5			34,400.8			34,861.7			34,379.6			35,129.6			34,476.5			33,587.9
Trading securities		3,120.1			3,191.3			3,087.9			3,223.6			3,237.4			3,206.5			3,345.1			3,287.0			3,246.0
Mortgage loans		4,195.0			3,988.5			3,865.4			3,831.3			3,856.9			3,805.7			3,750.6			3,696.2			3,662.6
Real estate		112.9			104.8			104.3			135.1			191.4			213.4			209.8			196.6			182.7
Policy loans		1,924.4			1,876.7			1,871.3			1,871.9			1,870.6			1,860.5			1,866.9			1,856.4			1,862.2
Other long-term investments		456.7			476.3			442.9			463.8			489.3			516.5			561.3			572.3			626.9
Total Investments		42,777.6			43,501.7			42,362.5			43,926.6			44,507.3			43,982.2			44,863.3			44,085.0			43,168.4
Cash and invested cash		1,711.2			2,255.5			2,213.7			1,996.0			1,661.7			1,499.1			1,658.9			1,601.9			2,311.7
Premiums and fees receivable		352.1			337.5			265.2			248.8			232.9			299.3			222.8			332.6			343.2
Accrued investment income		522.7			547.9			543.7			573.2			525.1			557.6			537.5			565.2			526.4
Federal income taxes recoverable		45.9			-			204.0			-			-			5.0			-			-			-
Amount recoverable from reinsurers		7,839.2			7,865.7			7,138.7			7,031.9			7,067.5			7,336.5			7,241.6			7,211.0			6,926.3
Deferred acquisition costs		3,147.1			2,999.0			3,521.4			3,326.8			3,445.0			3,712.7			3,554.5			3,904.0			4,092.2
Other intangible assets		79.1			85.8			93.6			98.7			106.4			113.8			124.4			134.0			143.3
Present value of in-force		1,196.5			1,180.0			1,155.8			1,103.9			1,095.2			1,073.1			1,041.7			1,019.4			998.9
Goodwill		1,234.7			1,235.2			1,235.0			1,195.0			1,195.9			1,195.7			1,194.8			1,194.6			1,194.2
Other		1,273.5			1,303.7			1,240.6			1,218.4			1,177.7			1,190.0			1,273.9			1,245.5			1,336.1
Assets held in separate accounts		46,565.2			48,557.9			49,343.7			49,657.9			55,204.6			55,387.2			57,240.0			60,811.5			63,746.8
Total Assets	$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2		$	118,953.4		$	122,104.6		$	124,787.6
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Reserves	$	23,549.8		$	23,704.6		$	23,165.1		$	23,010.1		$	23,242.1		$	23,498.2		$	23,555.6		$	23,690.2		$	23,609.2
Unpaid claims		1,058.4			1,076.8			1,083.5			1,067.0			1,080.3			1,164.9			1,114.2			1,037.7			1,040.8
Unearned premiums		104.5			104.3			9.3			7.5			5.8			3.1			1.9			1.2			2.1
Premium deposit funds		21,769.3			21,827.4			22,017.0			22,218.9			22,215.1			22,026.0			22,075.8			21,932.7			21,713.3
Participating policyholders' funds		155.1			171.1			165.9			165.2			145.3			128.1			146.3			123.3			111.2
Other policyholders' funds		680.9			688.1			698.5			703.4			714.0			716.1			717.6			740.2			746.1
Total Ins and Inv Contr Liabilities		47,318.1			47,572.3			47,139.3			47,172.2			47,402.5			47,536.4			47,611.5			47,525.3			47,222.8
Federal income taxes		-			108.1			-			83.8			77.6			-			160.8			31.5			19.8
Short-term debt		44.0			38.0			30.0			-			214.4			194.0			222.5			165.1			119.9
Long-term debt		1,117.5			1,317.7			1,313.7			1,315.4			1,048.6			1,046.6			1,000.6			999.5			999.0
Junior subordinated debentures issued to
affiliated trusts		341.3			344.7			337.6			341.1			339.8			336.6			338.7			335.9			334.0
Embedded derivative - modco		352.3			440.6			252.6			365.5			375.3			313.5			420.3			314.1			292.2
Other liabilities		4,270.1			4,440.4			4,493.6			4,537.9			4,467.8			4,601.3			4,721.1			4,782.1			4,832.8
Deferred gain on indemnity reinsurance		924.8			906.6			888.4			932.4			913.0			893.7			874.5			855.2			836.0
Liab related to separate accounts		46,565.2			48,557.9			49,343.7			49,657.9			55,204.6			55,387.2			57,240.0			60,811.5			63,746.8
Total Liabilities		100,933.2			103,726.4			103,799.0			104,406.3			110,043.7			110,309.3			112,590.0			115,820.2			118,403.2
Unrealized gains on investments		793.1			1,038.0			412.0			780.1			822.9			582.9			851.2			569.0			496.6
Gains - derivatives		22.1			29.0			18.5			19.8			14.0			7.7			11.9			8.9			7.3
Foreign currency		109.0			128.9			120.8			116.9			154.3			146.5			109.4			99.6			83.4
Minimum pension liability		(55.1	)		(56.6	)		(56.0	)		(55.8	)		(60.5	)		(60.0	)		(57.3	)		(56.6	)		(59.5	)
Shareholders' equity- other		4,942.6			5,004.2			5,023.6			5,109.8			5,244.9			5,365.8			5,448.3			5,663.5			5,856.6
Total Shareholders' Equity		5,811.6			6,143.5			5,518.9			5,970.8			6,175.6			6,042.9			6,363.5			6,284.4			6,384.4
Total Liabilities
and Shareholders' Equity	$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2		$	118,953.4		$	122,104.6		$	124,787.6
Shareholders' Equity Per Share
Book Value, Excluding AOCI	$	27.69		$	27.99		$	28.51		$	29.23		$	30.17		$	30.85		$	31.56		$	32.65		$	33.66
Common shares outstanding (in millions)		178.5			178.8			176.2			174.8			173.8			173.9			172.6			173.5			174.0

12/31/2005																			PAGE 15
Consolidating Balance Sheets
Unaudited [Millions of Dollars]
													Investment
	Lincoln Retirement						Life Insurance						Management				Lincoln UK
ASSETS	Dec			Dec			Dec			Dec			Dec		Dec		Dec		Dec
	2005			2004			2005			2004			2005		2004		2005		2004
Investments
Corporate bonds	$	12,688.1		$	13,504.1		$	9,038.9		$	8,887.9		$	515.9	$	533.3	$	646.7	$	739.2
U.S. government bonds		11.3			11.9			71.0			63.8			-		-		-		-
Foreign government bonds		275.9			304.5			176.6			184.7			6.8		6.8		302.2		337.6
Asset/mortgage backed securities		3,277.3			3,332.3			1,901.1			1,739.5			91.9		99.6		-		-
State and municipal bonds		67.2			95.3			42.7			52.4			1.1		1.2		-		-
Preferred stocks-redeemable		61.2			37.6			28.4			25.7			-		-		-		-
Common stocks		-			0.2			0.0			0.2			-		-		43.0		46.4
Preferred stocks-equity		42.2			43.1			14.2			14.8			2.7		2.7		-		-
Total AFS Securities		16,423.1			17,329.1			11,273.0			10,968.9			618.4		643.7		991.9		1,123.3
Trading Securities		1,130.6			1,169.6			-			-			-		-		-		-
Mortgage loans		1,720.6			1,936.3			1,621.4			1,554.2			44.1		62.6		0.0		0.1
Real estate		-			-			-			-			-		-		0.2		0.2
Policy loans		431.7			438.7			1,426.0			1,426.0			-		-		4.4		5.9
Allocated investments		3,645.9			3,891.1			1,545.0			1,442.7			159.5		139.9		-		-
Other long-term investments		155.0			61.8			3.3			9.1			-		-		-		-
Total Investments		23,507.0			24,826.6			15,868.8			15,400.9			822.1		846.3		996.6		1,129.5
Notes receivable from LNC		423.3			107.8			56.8			130.7			76.3		44.4		-		-
Cash and invested cash		(113.3	)		(73.9	)		(40.7	)		18.0			95.3		51.1		245.5		282.9
Premium and fees receivable		(0.0	)		0.2			32.3			25.8			56.7		45.4		-		-
Accrued investment income		236.5			243.3			179.2			173.8			8.2		8.6		20.2		22.1
Amount recoverable from reinsurers		937.2			1,030.7			1,273.0			1,183.4			-		-		59.9		-
Deferred acquisition costs		1,480.5			1,040.4			1,970.0			1,691.9			154.5		120.4		486.3		590.9
Other intangible assets		129.4			85.5			-			-			13.9		20.9		-		-
Present value of in-force		76.0			92.6			665.8			726.5			-		-		257.2		276.1
Goodwill		64.1			64.1			855.1			855.1			260.8		260.8		14.3		15.9
Other		183.0			145.2			507.9			468.0			127.3		96.4		113.9		80.3
Assets held in separate accounts		48,182.0			40,990.1			2,482.7			2,131.1			5,762.5		4,897.2		7,319.6		7,186.2
Total Assets	$	75,105.6		$	68,552.7		$	23,850.9		$	22,805.0		$	7,377.6	$	6,391.5	$	9,513.3	$	9,583.9
		Corporate and						Consolidating
		Other Operations						Adjustments										Consolidated
ASSETS		Dec			Dec			Dec			Dec							Dec		Dec
		2005			2004			2005			2004							2005		2004
Investments
Corporate bonds	$	2,971.1		$	3,224.5		$	-		$	-						$	25,860.7	$	26,889.0
U.S. government bonds		79.5			87.4			-			-							161.8		163.0
Foreign government bonds		441.8			452.3			-			-							1,203.3		1,285.9
Asset/mortgage backed securities		680.9			919.0			-			-							5,951.2		6,090.5
State and municipal bonds		17.7			17.1			-			-							128.8		166.0
Preferred stocks-redeemable		47.9			42.8			-			-							137.4		106.1
Common stocks		13.0			22.9			-			-							55.9		69.8
Preferred stocks-equity		29.6			30.7			-			-							88.8		91.3
Total AFS Securities		4,281.4			4,796.7			-			-							33,587.9		34,861.7
Trading securities		2,115.4			2,067.8			-			-							3,246.0		3,237.4
Mortgage loans		276.5			303.6			-			-							3,662.6		3,856.9
Real estate		182.5			191.1			-			-							182.7		191.4
Policy loans		-			-			-			-							1,862.2		1,870.6
Allocated investments		(5,350.5	)		(5,473.7	)		-			-							-		-
Other long-term investments		468.6			418.4			-			-							626.9		489.3
Total Investments		1,974.0			2,304.0			(0.0	)		(0.0	)						43,168.4		44,507.3
Investments In Consolidated Subs		6,077.7			5,545.6			(6,077.7	)		(5,545.6	)						-		-
Notes receivable from LNC		(521.6	)		(152.9	)		(34.8	)		(130.0	)						-		-
Cash and invested cash		2,124.9			1,383.6			-			-							2,311.7		1,661.7
Premium and fees receivable		254.3			161.5			-			-							343.2		232.9
Accrued investment income		82.2			77.4			-			-							526.4		525.1
Amount recoverable from reinsurers		4,656.2			4,853.5			-			-							6,926.3		7,067.5
Deferred acquisition costs		1.0			1.4			-			-							4,092.2		3,445.0
Other intangible assets		-			-			-			-							143.3		106.4
Present value of in-force		-			-			-			-							998.9		1,095.2
Goodwill		-			-			-			-							1,194.2		1,195.9
Other		414.8			398.8			(10.9	)		(11.0	)						1,336.0		1,177.7
Assets held in separate accounts		-			-			-			-							63,746.8		55,204.6
Total Assets	$	15,063.7		$	14,572.8		$	(6,123.5	)	$	(5,686.7	)					$	124,787.6	$	116,219.3

12/31/2005																				PAGE 16
Consolidating Balance Sheets
Unaudited [Millions of Dollars]
													Investment
	Lincoln Retirement						Life Insurance						Management				Lincoln UK
LIABILITIES and SHAREHOLDERS' EQUITY	Dec			Dec			Dec			Dec			Dec		Dec		Dec			Dec
	2005			2004			2005			2004			2005		2004		2005			2004
Liabilities
Insurance and Inv Contract Liabilities:
Reserves	$	2,251.7		$	2,268.9		$	16,149.7		$	15,411.7		$	-	$	-	$	1,332.0		$	1,491.8
Unpaid claims		29.0			38.4			129.5			158.0			-		-		44.8			51.9
Unearned premiums		-			-			-			-			-		-		-			-
Premium deposit funds		20,816.8			21,336.8			17.3			17.1			739.9		716.0		31.9			29.7
Participating policyholders' funds		-			-			111.2			145.3			-		-		-			-
Other policyholders' funds		-			-			741.1			706.1			-		-		-			-
Total Insurance and Inv Contract Liabilities		23,097.6			23,644.0			17,148.9			16,438.2			739.9		716.0		1,408.6			1,573.5
Federal income taxes		284.3			387.0			92.9			208.3			11.8		6.2		86.9			58.6
Notes payable to LNC		0.8			51.4			-			-			-		-		-			-
Embedded derivative - modco		40.5			80.5			2.8			2.5			-		-		-			-
Other liabilities		154.2			157.1			498.8			520.8			308.3		227.5		209.8			215.0
Deferred gain on indemnity reinsurance		-			-			-			-			-		-		-			-
Liability related to separate accounts		48,182.0			40,990.1			2,482.7			2,131.1			5,762.5		4,897.2		7,319.6			7,186.2
Total Liabilities		71,759.4			65,310.1			20,226.0			19,300.9			6,822.5		5,846.9		9,025.0			9,033.4
Net unrealized gains (losses) on securities		274.3			474.8			140.6			244.2			2.1		3.1		45.2			36.2
Net gains (losses) on derivatives		1.2			4.8			5.9			7.7			-		-		-			-
Foreign currency translation adjustment		-			-			-			-			-		-		65.8			136.4
Minimum pension liability adjustment		-			-			-			-			0.5		-		(53.3	)		(48.6	)
Other shareholders' equity		3,070.7			2,762.9			3,478.4			3,252.3			552.4		541.5		430.6			426.6
Shareholders' Equity		3,346.2			3,242.5			3,624.9			3,504.1			555.1		544.6		488.3			550.6
Total Liabilities and Shareholders' Equity	$	75,105.6		$	68,552.7		$	23,850.9		$	22,805.0		$	7,377.6	$	6,391.5	$	9,513.3		$	9,583.9
		Corporate and						Consolidating
		Other Operations						Adjustments										Consolidated
LIABILITIES and SHAREHOLDERS' EQUITY		Dec			Dec			Dec			Dec							Dec			Dec
		2005			2004			2005			2004							2005			2004
Liabilities
Insurance and Inv Contract Liabilities:
Reserves	$	3,875.9		$	4,069.7		$	-		$	-						$	23,609.2		$	23,242.1
Unpaid claims		837.5			832.0			-			-							1,040.8			1,080.3
Unearned premiums		2.1			5.7			-			-							2.1			5.8
Premium deposit funds		107.4			115.6			-			-							21,713.3			22,215.1
Participating policyholders' funds		-			-			-			-							111.2			145.3
Other policyholders' funds		5.0			7.9			-			-							746.1			714.0
Total Insurance and Inv Contract Liabilities		4,827.8			5,030.9			-			-							47,222.8			47,402.5
Federal income taxes		(456.2	)		(583.3	)		-			0.8							19.8			77.6
Short-term debt		119.9			214.4			-			-							119.9			214.4
Long-term debt		999.0			1,048.6			-			-							999.0			1,048.6
Junior subordinated debentures issued to affiliated trusts		334.0			339.8			-			-							334.0			339.8
Notes payable to LNC		33.9			78.6			(34.8	)		(130.0	)						-			-
Embedded derivative - modco		248.9			292.3			-			-							292.2			375.3
Other liabilities		3,672.6			3,358.4			(10.9	)		(11.0	)						4,832.8			4,467.8
Deferred gain on indemnity reinsurance		836.0			913.0			-			-							836.0			913.0
Liability related to separate accounts		(0.0	)		-			-			-							63,746.8			55,204.6
Total Liabilities		10,615.9			10,692.7			(45.7	)		(140.3	)						118,403.2			110,043.7
Net unrealized gains (losses) on securities		35.8			64.4			(1.4	)		-							496.6			822.9
Gains (losses) on derivatives		0.2			1.6			-			-							7.3			14.0
Foreign currency translation adjustment		10.1			10.4			7.5			7.5							83.4			154.3
Minimum pension liability adjustment		(6.7	)		(11.9	)		-			-							(59.5	)		(60.5	)
Other shareholders' equity		4,408.3			3,815.5			(6,083.9	)		(5,553.9	)						5,856.6			5,244.9
Shareholders' Equity		4,447.8			3,880.1			(6,077.8	)		(5,546.4	)						6,384.4			6,175.6
Total Liabilities and Shareholders' Equity	$	15,063.7		$	14,572.8		$	(6,123.5	)	$	(5,686.7	)					$	124,787.6		$	116,219.3

12/31/2005													PAGE 17
Lincoln Retirement
Income Statements & Operational Data
Unaudited [Millions of Dollars]
For the Year Ended December 31	2001			2002			2003			2004			2005
Operating Revenue
Premiums	$	77.5		$	47.4		$	21.9		$	33.0		$	45.7
Surrender charges		31.2			31.2			28.9			25.0			27.4
Expense assessments		508.6			446.2			441.9			580.5			727.1
Other revenue and fees		16.7			3.3			8.7			(6.3	)		(6.2	)
Net investment income		1,399.1			1,457.5			1,483.7			1,495.9			1,463.9
Total Operating Revenue		2,033.1			1,985.5			1,985.1			2,128.0			2,258.0
Operating Expenses
Benefits paid or provided:
Benefits		263.9			314.1			181.5			189.9			223.0
Interest credited to policy bal.		863.8			903.8			867.7			836.0			819.0
Def. sales inducements net of amortization		(12.1	)		(12.6	)		(14.1	)		(40.6	)		(43.9	)
Total insurance benefits		1,115.7			1,205.3			1,035.1			985.2			998.1
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		386.0			385.4			386.0			586.7			626.3
Operating and administrative expenses		231.8			231.3			226.2			231.8			259.2
Taxes, licenses and fees		13.7			11.5			17.7			14.6			10.5
Subtotal		631.6			628.2			630.0			833.1			895.9
DAC deferral net of amortization		(103.4	)		(73.6	)		(103.0	)		(247.9	)		(275.8	)
PVIF amortization		14.7			31.8			9.5			20.0			16.6
Total underwriting, acquisition,
insurance and other expenses		542.9			586.3			536.5			605.2			636.7
Goodwill amortization		1.2			-			-			-			-
Total Operating Expenses		1,659.8			1,791.7			1,571.6			1,590.5			1,634.8
Operating income before federal taxes		373.3			193.9			413.5			537.6			623.2
Federal income taxes		57.1			10.5			81.6			123.0			151.7
Income from Operations	$	316.2		$	183.4		$	331.9		$	414.6		$	471.5
Effective tax rate		15.3	%		5.4	%		19.7	%		22.9	%		24.3	%
Average capital	$	1,831.4		$	2,339.6		$	2,400.3		$	2,589.1		$	2,797.1
Return on average capital		17.3	%		7.8	%		13.8	%		16.0	%		16.9	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	812.5		$	894.3		$	824.7		$	854.6		$	1,040.4
Deferral		227.8			229.0			223.4			421.9			455.3
Amortization		(124.4	)		(155.4	)		(120.4	)		(174.0	)		(179.5	)
Included in Total Benefits and Expenses		103.4			73.6			103.0			247.9			275.8
Adjustment related to realized (gains) losses
on available-for-sale securities		68.2			73.0			(18.7	)		(28.3	)		(33.5	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(90.0	)		(201.3	)		(54.3	)		8.3			197.7
Other*		0.2			(14.8	)								-
Cumulative effect of accounting change											(42.3	)		-
Balance at end of period	$	894.3		$	824.7		$	854.6		$	1,040.4		$	1,480.5
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	169.2		$	154.5		$	122.7		$	113.2		$	92.6
Amortization		(14.7	)		(31.8	)		(9.5	)		(20.0	)		(16.6	)
Cumulative effect of accounting change		-			-			-			(0.6	)		-
Balance at end of period	$	154.5		$	122.7		$	113.2		$	92.6		$	76.0
*Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

12/31/2005																									PAGE 18
Lincoln Retirement
Income Statements & Operational Data
Unaudited [Millions of Dollars]
For the Quarter Ended	Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2004			2004			2004			2004			2005			2005			2005			2005
Operating Revenue
Premiums	$	5.6		$	6.5		$	7.4		$	9.2		$	9.9		$	10.5		$	7.8		$	18.1		$	9.2
Surrender charges		6.2			5.9			6.0			6.7			6.4			7.4			6.9			7.3			5.9
Expense assessments		124.8			137.3			140.9			145.2			157.1			164.6			173.1			189.8			199.6
Other revenue and fees		0.5			(0.8	)		(2.1	)		(1.3	)		(2.0	)		(1.4	)		(1.6	)		(1.2	)		(1.9	)
Net investment income		369.5			379.0			382.3			366.5			368.0			357.4			386.8			359.1			360.6
Total Operating Revenue		506.6			528.0			534.4			526.2			539.4			538.5			573.0			573.1			573.3
Operating Expenses
Benefits paid or provided:
Benefits		37.1			54.1			52.0			40.5			43.4			52.4			61.5			59.2			49.9
Interest credited to policy balances		214.0			207.8			208.0			209.9			210.4			204.7			206.4			204.9			202.9
Def. sales inducements net of amortization		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)		(9.4	)		(11.7	)		(11.5	)		(11.3	)
Total insurance benefits		245.5			252.8			250.2			240.0			242.2			247.8			256.2			252.5			241.6
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		119.6			141.8			146.9			141.3			156.7			149.7			153.4			160.4			162.8
Operating and administrative expenses		58.5			51.7			58.1			62.5			59.6			56.8			64.2			68.4			69.8
Taxes, licenses and fees		4.0			5.2			3.7			3.2			2.5			3.9			2.4			2.7			1.5
Subtotal		182.2			198.7			208.7			207.0			218.8			210.4			220.0			231.5			234.0
DAC deferral net of amortization		(42.0	)		(60.4	)		(61.2	)		(77.3	)		(49.0	)		(49.4	)		(64.1	)		(104.4	)		(58.0	)
PVIF amortization		1.8			3.3			2.9			11.5			2.3			2.4			2.4			9.6			2.4
Total underwriting, acquisition,
insurance and other expenses		141.9			141.6			150.4			141.1			172.1			163.3			158.3			136.7			178.4
Total Operating Expenses		387.4			394.4			400.6			381.2			414.3			411.1			414.4			389.2			420.0
Operating income before federal taxes		119.2			133.6			133.8			145.0			125.1			127.4			158.6			183.9			153.4
Federal income taxes		25.1			31.4			32.1			34.9			24.7			28.8			39.2			47.7			36.1
Income from Operations	$	94.1		$	102.2		$	101.8		$	110.2		$	100.5		$	98.6		$	119.4		$	136.2		$	117.3
Effective tax rate		21.1	%		23.5	%		24.0	%		24.1	%		19.7	%		22.6	%		24.7	%		25.9	%		23.5	%
Average capital	$	2,425.4		$	2,532.6		$	2,575.1		$	2,560.5		$	2,688.4		$	2,661.3		$	2,718.3		$	2,840.7		$	2,968.0
Return on average capital		15.5	%		16.1	%		15.8	%		17.2	%		14.9	%		14.8	%		17.6	%		19.2	%		15.8	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	721.7		$	854.6		$	748.7		$	1,056.2		$	984.6		$	1,040.4		$	1,214.0		$	1,174.8		$	1,380.6
Deferral		73.5			101.9			105.5			101.5			112.9			107.0			112.7			114.4			121.3
Amortization		(31.5	)		(41.5	)		(44.4	)		(24.2	)		(63.9	)		(57.6	)		(48.6	)		(10.0	)		(63.3	)
Included in Total Benefits and Expenses		42.0			60.4			61.2			77.3			49.0			49.4			64.1			104.4			58.0
Adjustment related to realized (gains) losses
on available-for-sale securities		(16.7	)		(10.2	)		(6.0	)		(1.8	)		(10.3	)		(10.1	)		(8.4	)		(8.0	)		(7.0	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		107.6			(113.9	)		252.4			(147.2	)		17.0			134.2			(94.8	)		109.5			48.9
Other		-			-
Cumulative effect of accounting change		-			(42.3	)		-
Balance at end of period	$	854.6		$	748.7		$	1,056.2		$	984.6		$	1,040.4		$	1,214.0		$	1,174.8		$	1,380.6		$	1,480.5
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	115.0		$	113.2		$	109.4		$	106.4		$	94.9		$	92.6		$	90.3		$	87.9		$	78.3
Amortization		(1.8	)		(3.3	)		(2.9	)		(11.5	)		(2.3	)		(2.4	)		(2.4	)		(9.6	)		(2.4	)
Cumulative effect of accounting change		-			(0.6	)		-			-			-			-			-			-			-
Balance at end of period	$	113.2		$	109.4		$	106.4		$	94.9		$	92.6		$	90.3		$	87.9		$	78.3		$	76.0

12/31/2005													PAGE 19
Lincoln Retirement
Account Value Rollforward
Unaudited [Billions of Dollars]
	2001			2002			2003			2004			2005
Fixed Annuities - Balance at Beginning of Year	$	16.615		$	18.004		$	20.087		$	21.220		$	21.565
Gross Deposits		3.342			3.672			3.125			3.110			2.947
Withdrawals & deaths		(2.448	)		(2.637	)		(2.074	)		(2.227	)		(2.714	)
Net flows		0.894			1.035			1.051			0.884			0.234
Transfer from (to) var annuities		(0.428	)		0.108			(0.817	)		(1.395	)		(1.548	)
Interest credited		0.923			0.940			0.899			0.856			0.838
Fixed Annuities-Gross		18.004			20.087			21.220			21.565			21.089
Reinsurance Ceded		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.233	)
Fixed Annuities - Balance at End of Year*	$	16.491		$	18.085		$	18.868		$	19.268		$	18.856
Variable Annuities - Balance at Beginning of Year	$	39.053		$	33.999		$	26.550		$	33.930		$	40.362
Gross Deposits		2.792			2.381			2.505			5.082			6.296
Withdrawals & deaths		(3.905	)		(3.394	)		(3.181	)		(3.797	)		(4.299	)
Net flows		(1.113	)		(1.014	)		(0.676	)		1.285			1.997
Transfer from (to) fixed annuities		0.435			(0.092	)		0.803			1.387			1.559
Invest inc & change in mkt value		(4.376	)		(6.344	)		7.253			3.760			3.683
Var Annuities - Balance at End of Year **	$	33.999		$	26.550		$	33.930		$	40.362		$	47.601
Total Annuities - Balance at Beginning of Year	$	55.668		$	52.003		$	46.637		$	55.150		$	61.927
Gross Deposits		6.134			6.053			5.630			8.192			9.244
Withdrawals & deaths		(6.353	)		(6.032	)		(5.255	)		(6.023	)		(7.013	)
Net flows		(0.219	)		0.021			0.375			2.169			2.231
Transfers		0.007			0.017			(0.014	)		(0.008	)		0.011
Interest credited & change in mkt value		(3.453	)		(5.404	)		8.152			4.616			4.521
Total Gross Annuities- Balance at End of Year		52.003			46.637			55.150			61.927			68.690
Reinsurance Ceded		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.233	)
Total Annuities (Net of Ceded) - Balance at End of Year	$	50.490		$	44.634		$	52.797		$	59.629		$	66.457
Alliance Mutual Funds - Balance at Beg of Year***	$	0.375		$	0.639		$	0.888		$	1.856		$	2.861
Gross Deposits		0.275			0.362			0.614			0.828			1.066
Withdrawals & deaths		0.049			0.069			0.019			(0.075	)		(0.410	)
Net flows		0.324			0.432			0.632			0.753			0.656
Transfers		(0.007	)		(0.030	)		0.007			(0.031	)		(0.007	)
Interest credited & change in mkt value		(0.052	)		(0.153	)		0.330			0.282			0.262
Total Alliance Mutual Funds - Balance at End of Year	$	0.639		$	0.888		$	1.856		$	2.861		$	3.772
Total Annuities and Alliance Mutual Funds -
Balance Beginning of Year	$	56.042		$	52.642		$	47.525		$	57.006		$	64.788
Gross Deposits		6.409			6.415			6.244			9.020			10.310
Withdrawals & deaths		(6.304	)		(5.962	)		(5.236	)		(6.098	)		(7.423	)
Net flows		0.105			0.453			1.007			2.922			2.887
Transfers		(0.000	)		(0.013	)		(0.008	)		(0.039	)		0.004
Interest credited & change in mkt value		(3.505	)		(5.558	)		8.482			4.898			4.783
Total Gross Annuities and Alliance - Balance End of Year		52.642			47.525			57.006			64.788			72.462
Reinsurance Ceded		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.233	)
Total Annuities and Alliance Mutual Funds
Balance at End of Year - (net of ceded)	$	51.128		$	45.522		$	54.653		$	62.491		$	70.229
Run-off Group Pension Accounts - Not Included above		3.060			2.844			2.947			2.906			2.737
Total Retirement Segment Account Values - (net of ceded)	$	54.189		$	48.367		$	57.600		$	65.397		$	72.966
Var Ann Under Agreement - Included above		0.438			0.298			0.310			0.266			0.216
Incremental Deposits****:
Fixed Annuities Incremental Deposits	$	3.213		$	3.600		$	3.067		$	3.046		$	2.828
Variable Annuities Incremental Deposits		1.985			2.207			2.405			4.928			6.164
Total Annuities Incremental Deposits		5.198			5.807			5.472			7.974			8.992
Total Alliance Mutual Funds Incremental Deposits		0.639			0.362			0.614			0.828			1.066
Total Annuities and Alliance Mutual Funds
Incremental Deposits	$	5.837		$	6.170		$	6.086		$	8.802		$	10.058
* Includes Fixed Annuity products offered under the Alliance program and the fixed portion of variable annuities.
** Excludes the fixed portion of variable annuities.
*** Represents amounts attributable to Alliance program mutual fund net flows. Alliance program mutual fund account values are not included in the separate accounts reported on our balance sheet.
**** Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.

12/31/2005																												PAGE 20
Lincoln Retirement
Account Value Rollforward
Unaudited [Billions of Dollars]
	Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Fixed Annuities - Balance at Beginning of Quarter	$	20.088		$	20.612		$	20.864		$	21.132		$	21.221		$	21.281		$	21.476		$	21.633		$	21.565		$	21.375		$	21.417		$	21.319
Gross Deposits		0.776			0.778			0.778			0.792			0.817			0.779			0.783			0.732			0.740			0.793			0.718			0.696
Withdrawals & deaths		(0.524	)		(0.501	)		(0.492	)		(0.557	)		(0.571	)		(0.515	)		(0.554	)		(0.587	)		(0.778	)		(0.632	)		(0.629	)		(0.676	)
Net flows		0.253			0.277			0.286			0.235			0.246			0.264			0.228			0.145			(0.038	)		0.161			0.090			0.021
Transfer from (to) var annuities		0.046			(0.250	)		(0.243	)		(0.369	)		(0.399	)		(0.280	)		(0.287	)		(0.429	)		(0.359	)		(0.329	)		(0.399	)		(0.460	)
Interest credited		0.226			0.226			0.225			0.223			0.213			0.211			0.215			0.216			0.207			0.210			0.212			0.209
Fixed Annuities - Gross		20.612			20.864			21.132			21.221			21.281			21.476			21.633			21.565			21.375			21.417			21.319			21.089
Reinsurance Ceded		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)		(2.257	)		(2.233	)
Fixed Annuities - Balance at End of           Quarter*	$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084		$	19.141		$	19.062		$	18.856
Variable Annuities - Balance at Beginning of         Quarter	$	26.550		$	25.402		$	29.121		$	30.185		$	33.930		$	35.457		$	36.064		$	36.268		$	40.362		$	40.510		$	42.319		$	45.059
Gross Deposits		0.452			0.468			0.651			0.933			1.156			1.237			1.257			1.433			1.478			1.513			1.585			1.720
Withdrawals & deaths		(0.825	)		(0.759	)		(0.798	)		(0.798	)		(0.930	)		(0.973	)		(0.904	)		(0.990	)		(1.012	)		(1.018	)		(1.136	)		(1.134	)
Net flows		(0.373	)		(0.291	)		(0.147	)		0.135			0.226			0.264			0.352			0.443			0.466			0.495			0.450			0.586
Transfer from (to) fixed annuities		(0.045	)		0.249			0.238			0.361			0.393			0.279			0.288			0.427			0.363			0.333			0.400			0.464
Invest inc & change in mkt value		(0.730	)		3.761			0.973			3.249			0.908			0.064			(0.436	)		3.224			(0.681	)		0.981			1.890			1.493
Variable Annuities - Balance at End of         Quarter **	$	25.402		$	29.121		$	30.185		$	33.930		$	35.457		$	36.064		$	36.268		$	40.362		$	40.510		$	42.319		$	45.059		$	47.601
Total Annuities - Balance at Beginning of         Quarter	$	46.638		$	46.014		$	49.985		$	51.318		$	55.151		$	56.738		$	57.540		$	57.901		$	61.927		$	61.885		$	63.736		$	66.378
Gross Deposits		1.229			1.247			1.430			1.725			1.973			2.016			2.039			2.164			2.218			2.306			2.304			2.416
Withdrawals & deaths		(1.349	)		(1.261	)		(1.290	)		(1.355	)		(1.501	)		(1.487	)		(1.459	)		(1.576	)		(1.790	)		(1.650	)		(1.764	)		(1.809	)
Net flows		(0.120	)		(0.014	)		0.139			0.370			0.472			0.528			0.581			0.588			0.428			0.657			0.539			0.607
Transfers		0.001			(0.001	)		(0.005	)		(0.008	)		(0.006	)		(0.001	)		0.001			(0.002	)		0.004			0.003			0.000			0.003
Interest credited & change in mkt value		(0.504	)		3.986			1.198			3.472			1.121			0.275			(0.221	)		3.440			(0.474	)		1.191			2.102			1.702
Total Annuities - Gross		46.014			49.985			51.318			55.151			56.738			57.540			57.901			61.927			61.885			63.736			66.378			68.690
Reinsurance Ceded		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)		(2.257	)		(2.233	)
Total Annuities (Net of Ceded) -          Bal at End of Quarter	$	43.939		$	47.817		$	49.053		$	52.798		$	54.387		$	55.207		$	55.585		$	59.630		$	59.594		$	61.460		$	64.120		$	66.457
Alliance Mutual Funds - Balance at       Beginning of Quarter***	$	0.888		$	1.072		$	1.336		$	1.524		$	1.856		$	2.162		$	2.335		$	2.430		$	2.861		$	3.163		$	3.432		$	3.672
Gross Deposits		0.196			0.116			0.148			0.154			0.251			0.187			0.167			0.223			0.421			0.222			0.200			0.223
Withdrawals & deaths		0.020			(0.002	)		(0.011	)		0.012			(0.011	)		(0.015	)		(0.032	)		(0.017	)		(0.074	)		(0.022	)		(0.107	)		(0.208	)
Net flows		0.216			0.113			0.138			0.165			0.240			0.172			0.135			0.206			0.347			0.201			0.093			0.014
Transfers		(0.003	)		(0.001	)		0.006			0.004			0.007			(0.013	)		(0.025	)		0.000			0.002			(0.006	)		(0.000	)		(0.003	)
Interest credited & change in mkt value		(0.029	)		0.151			0.045			0.162			0.060			0.013			(0.014	)		0.225			(0.048	)		0.075			0.147			0.088
Total Alliance Mutual Funds -          Balance at End of Quarter	$	1.072		$	1.336		$	1.524		$	1.856		$	2.162		$	2.335		$	2.430		$	2.861		$	3.163		$	3.432		$	3.672		$	3.772
Total Annuities and Alliance Mutual Funds -
Balance at Beginning of Quarter	$	47.525		$	47.086		$	51.321		$	52.842		$	57.007		$	58.900		$	59.875		$	60.331		$	64.788		$	65.048		$	67.168		$	70.050
Gross Deposits		1.424			1.363			1.578			1.879			2.223			2.203			2.207			2.387			2.639			2.529			2.504			2.639
Withdrawals & deaths		(1.329	)		(1.263	)		(1.301	)		(1.343	)		(1.512	)		(1.503	)		(1.490	)		(1.593	)		(1.863	)		(1.671	)		(1.871	)		(2.018	)
Net flows		0.095			0.099			0.277			0.536			0.712			0.701			0.716			0.794			0.776			0.857			0.633			0.621
Transfers		(0.002	)		(0.002	)		0.001			(0.004	)		0.001			(0.014	)		(0.024	)		(0.002	)		0.006			(0.003	)		0.000			0.000
Interest credited & change in mkt value		(0.532	)		4.137			1.243			3.634			1.181			0.288			(0.235	)		3.665			(0.522	)		1.266			2.249			1.790
Total Gross Annuities and Alliance Mutual Funds -
Balance at End of Quarter		47.086			51.321			52.842			57.007			58.900			59.875			60.331			64.788			65.048			67.168			70.050			72.462
Reinsurance Ceded		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)		(2.257	)		(2.233	)
Total Annuities and Alliance             Mutual Funds
Balance at End of Quarter (net of ceded)	$	45.011		$	49.152		$	50.577		$	54.654		$	56.550		$	57.542		$	58.016		$	62.491		$	62.757		$	64.892		$	67.793		$	70.229
Run-off Group Pension Accounts        - Not Included Above		2.836			2.888			2.888			2.947			2.943			2.910			2.857			2.906			2.886			2.883			2.877			2.737
Total Retirement Segment Account Values - (net of ceded)	$	47.847		$	52.040		$	53.466		$	57.601		$	59.493		$	60.452		$	60.872		$	65.397		$	65.643		$	67.775		$	70.669		$	72.966
Var Ann Under Agreement -          Included above		0.283			0.301			0.296			0.310			0.301			0.283			0.261			0.266			0.244			0.232			0.226			0.216
Incremental Deposits****:
Fixed Annuities Incremental Deposits	$	0.753		$	0.768		$	0.767		$	0.779		$	0.795		$	0.767		$	0.767		$	0.718		$	0.719		$	0.779		$	0.689		$	0.642
Variable Annuities Incremental Deposits		0.433			0.444			0.628			0.899			1.120			1.194			1.212			1.402			1.443			1.476			1.558			1.687
Total Annuities Incremental Deposits		1.186			1.212			1.394			1.679			1.914			1.961			1.979			2.120			2.162			2.256			2.247			2.328
Total Alliance Mutual Funds Incremental Deposits		0.196			0.116			0.148			0.154			0.251			0.187			0.167			0.223			0.421			0.222			0.200			0.223
Total Annuities and Alliance Mutual       Funds Incremental Deposits	$	1.382		$	1.328		$	1.543		$	1.833		$	2.165		$	2.148		$	2.146		$	2.342		$	2.582		$	2.478		$	2.447		$	2.551
* Includes Fixed Annuity products offered under the Alliance program and the fixed portion of variable annuities.
** Excludes the fixed portion of variable annuities.
*** Represents amounts attributable to Alliance program mutual fund net flows. Alliance program mutual fund account values are not included in the separate accounts reported on our balance sheet.
**** Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.

12/31/2005													PAGE 21
Lincoln Retirement
Account Values
Unaudited [Billions of Dollars]
	2001			2002			2003			2004			2005
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	1.712		$	1.844		$	1.415		$	1.026		$	0.681
Withdrawals		(1.604	)		(1.473	)		(0.934	)		(1.119	)		(1.456	)
Net Flows	$	0.108		$	0.371		$	0.481		$	(0.093	)	$	(0.776	)
Gross Fixed Contract Account Values				$	10.475		$	11.440		$	11.820		$	11.519
Reinsurance Ceded					(2.003	)		(2.353	)		(2.297	)		(2.233	)
Net Fixed Contract Account Values				$	8.473		$	9.087		$	9.522		$	9.286
Fixed Portion of Variable Contracts
Deposits	$	1.630		$	1.828		$	1.710		$	2.085		$	2.267
Withdrawals		(0.844	)		(1.164	)		(1.140	)		(1.108	)		(1.257	)
Net Flows	$	0.786		$	0.664		$	0.570		$	0.977		$	1.010
Fixed Portion of Variable Contract Account Values				$	9.612		$	9.781		$	9.746		$	9.570
Variable Annuities - including fixed portion of variable contracts
Deposits	$	4.422		$	4.208		$	4.215		$	7.166		$	8.563
Withdrawals		(4.748	)		(4.558	)		(4.320	)		(4.904	)		(5.556	)
Net Flows	$	(0.326	)	$	(0.350	)	$	(0.106	)	$	2.262		$	3.007
Variable Contract Account Values				$	36.162		$	43.711		$	50.108		$	57.171
Average Daily Variable Annuity Account Values	$	35.054		$	30.026		$	29.002		$	36.018		$	42.816
Alliance Mutual Funds Contracts
Deposits	$	0.275		$	0.362		$	0.614		$	0.828		$	1.066
Withdrawals		0.049			0.069			0.019			(0.075	)		(0.410	)
Net Flows	$	0.324		$	0.432		$	0.632		$	0.753		$	0.656
Alliance Mutual Funds Contract Account Values*	$	0.639		$	0.888		$	1.856		$	2.861		$	3.772
Average Daily Alliance Mutual Funds Acct Vals*	$	0.519		$	0.800		$	1.371		$	2.304		$	3.401
* Alliance program mutual fund account values are not included in the separate accounts reported on our balance sheet
Total Annuity Product Spread Information (1)
Net investment income (2) (3)		7.38	%		6.98	%		6.41	%		6.28	%		6.07	%
Interest credited to policyholders		5.33	%		4.87	%		4.25	%		3.92	%		3.81	%
Spread (2) (3)		2.05	%		2.11	%		2.16	%		2.37	%		2.26	%
(1) For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.
(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums.  The impact of these premiums on investment income and spread was 8 bps in 2005, 20 bps in 2004, 6 bps in 2003 and 7 bps in 2002.
(3) 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 6 bps to the yield and spread for the full year.

12/31/2005																															PAGE 22
Lincoln Retirement
Account Values
Unaudited [Billions of Dollars]
	Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.368		$	0.356		$	0.344		$	0.347		$	0.365		$	0.249		$	0.220		$	0.192		$	0.198		$	0.180		$	0.145		$	0.158
Withdrawals		(0.208	)		(0.235	)		(0.238	)		(0.253	)		(0.269	)		(0.261	)		(0.286	)		(0.302	)		(0.454	)		(0.303	)		(0.326	)		(0.374	)
Net Flows	$	0.160		$	0.121		$	0.106		$	0.094		$	0.096		$	(0.013	)	$	(0.066	)	$	(0.110	)	$	(0.256	)	$	(0.123	)	$	(0.182	)	$	(0.216	)
Gross Fixed Contract Account Values	$	10.759		$	11.001		$	11.226		$	11.440		$	11.649		$	11.755		$	11.811		$	11.820		$	11.684		$	11.681		$	11.618		$	11.519
Reinsurance Ceded		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)		(2.257	)		(2.233	)
Net Fixed Contract Account Values	$	8.684		$	8.832		$	8.962		$	9.087		$	9.299		$	9.422		$	9.495		$	9.522		$	9.392		$	9.404		$	9.360		$	9.286
Fixed Portion of Variable Contracts
Deposits	$	0.408		$	0.422		$	0.434		$	0.445		$	0.452		$	0.530		$	0.563		$	0.540		$	0.541		$	0.613		$	0.574		$	0.539
Withdrawals		(0.316	)		(0.266	)		(0.254	)		(0.304	)		(0.302	)		(0.253	)		(0.268	)		(0.284	)		(0.324	)		(0.329	)		(0.302	)		(0.302	)
Net Flows	$	0.093		$	0.156		$	0.180		$	0.141		$	0.151		$	0.277		$	0.294		$	0.255		$	0.218		$	0.284		$	0.271		$	0.237
Fixed Portion of Variable Contract Account Values	$	9.853		$	9.864		$	9.906		$	9.781		$	9.631		$	9.721		$	9.822		$	9.746		$	9.691		$	9.736		$	9.702		$	9.570
Variable Annuities - including fixed portion of variable contracts
Deposits	$	0.861		$	0.891		$	1.086		$	1.378		$	1.608		$	1.767		$	1.819		$	1.972		$	2.020		$	2.126		$	2.159		$	2.258
Withdrawals		(1.141	)		(1.026	)		(1.052	)		(1.102	)		(1.232	)		(1.226	)		(1.172	)		(1.274	)		(1.336	)		(1.347	)		(1.438	)		(1.436	)
Net Flows	$	(0.280	)	$	(0.135	)	$	0.034		$	0.276		$	0.376		$	0.541		$	0.647		$	0.698		$	0.684		$	0.780		$	0.721		$	0.823
Variable Contract Account Values	$	35.255		$	38.985		$	40.091		$	43.711		$	45.088		$	45.785		$	46.090		$	50.108		$	50.202		$	52.056		$	54.760		$	57.171
Average Daily Variable Annuity Account Values	$	25.899		$	27.933		$	30.016		$	32.158		$	35.116		$	35.354		$	35.334		$	38.269		$	40.378		$	41.010		$	44.099		$	45.828
Alliance Mutual Fund Contracts
Deposits	$	0.196		$	0.116		$	0.148		$	0.154		$	0.251		$	0.187		$	0.167		$	0.223		$	0.421		$	0.222		$	0.200		$	0.223
Withdrawals		0.020			(0.002	)		(0.011	)		0.012			(0.011	)		(0.015	)		(0.032	)		(0.017	)		(0.074	)		(0.022	)		(0.107	)		(0.208	)
Net Flows	$	0.216		$	0.113		$	0.138		$	0.165		$	0.240		$	0.172		$	0.135		$	0.206		$	0.347		$	0.201		$	0.093		$	0.014
Alliance Mutual Funds Contract Account Values *	$	1.072		$	1.336		$	1.524		$	1.856		$	2.162		$	2.335		$	2.430		$	2.861		$	3.163		$	3.432		$	3.672		$	3.772
Average Alliance Mutual Funds Account Values*	$	1.008		$	1.262		$	1.474		$	1.739		$	2.044		$	2.211		$	2.341		$	2.620		$	3.038		$	3.270		$	3.592		$	3.728
* Alliance program mutual fund account values are not included in the separate accounts reported on our balance sheet
Total Annuity Product Spread Information (1)
Net investment income (2)(3)		6.61	%		6.49	%		6.42	%		6.13	%		6.43	%		6.34	%		6.14	%		6.23	%		6.05	%		6.06	%		6.04	%		6.13	%
Interest credited to policyholders		4.42	%		4.29	%		4.20	%		4.09	%		3.97	%		3.93	%		3.90	%		3.87	%		3.82	%		3.81	%		3.80	%		3.79	%
Spread (2)(3)		2.19	%		2.20	%		2.22	%		2.04	%		2.46	%		2.41	%		2.24	%		2.36	%		2.23	%		2.25	%		2.24	%		2.34	%
(1) For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are  included in account values for this calculation since assets (and therefore margin) are retained under these agreements.
(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread was 11 bps in the 4th quarter of 2005, 4 bps in the 3rd quarter of 2005, 9 bps in the 2nd quarter of 2005, 8 bps in the 1st quarter of 2005, 17 bps in the 4th quarter of 2004, 19 bps in the 3rd quarter of 2004, 38 bps in the 2nd quarter of 2004, 7 bps in the first quarter of 2004 and 3 bps in the fourth quarter of 2003.
(3) 1st quarter 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 27 bps to the yield and spread.

12/31/2005													PAGE 23
Life Insurance Segment
Income Statements
Unaudited [Millions of Dollars]
For the Year Ended December 31	2001			2002			2003			2004			2005
Operating Revenue
Premiums	$	212.4		$	203.8		$	194.9		$	194.0		$	198.7
Surrender charges		66.1			54.1			53.6			51.8			43.6
Mortality assessments		499.4			501.5			516.7			518.7			533.6
Expense assessments		191.4			199.5			201.8			208.6			213.1
Other revenue and fees		17.9			23.7			28.0			31.4			34.0
Net investment income		910.2			899.1			911.1			948.4			970.7
Total Operating Revenue		1,897.5			1,881.7			1,906.1			1,952.9			1,993.5
Operating Expenses
Benefits paid or provided:
Benefits		418.6			427.4			416.0			404.0			422.4
Div accum & div to policyholders		78.5			76.0			81.6			77.4			77.7
Interest credited to policy bal.		569.9			598.6			598.2			579.7			590.2
Total insurance benefits		1,067.0			1,101.9			1,095.8			1,061.2			1,090.3
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		318.4			330.2			350.1			331.1			362.6
Operating and administrative expenses		166.8			162.2			166.2			168.6			176.4
Taxes, licenses and fees		49.2			53.2			62.2			49.1			53.9
Subtotal		534.5			545.6			578.5			548.9			592.9
DAC deferral net of amortization		(229.8	)		(230.7	)		(235.2	)		(152.2	)		(191.9	)
PVIF amortization		75.9			73.9			81.4			82.2			60.6
Total underwriting, acquisition,
insurance and other expenses		380.5			388.8			424.7			478.9			461.6
Goodwill amortization		23.7			-			-			-			-
Total Operating Expenses		1,471.2			1,490.8			1,520.6			1,540.0			1,551.9
														0.0
Operating income before federal taxes		426.3			390.9			385.5			412.9			441.6
Federal income taxes		151.0			121.9			120.9			132.6			142.7
Income from Operations	$	275.3		$	269.0		$	264.5		$	280.3		$	298.9
Effective Tax Rate		35.4	%		31.2	%		31.4	%		32.1	%		32.3	%
Average capital	$	2,734.4		$	2,846.3		$	2,849.9		$	3,036.1		$	3,415.4
Return on average capital		10.1	%		9.4	%		9.3	%		9.2	%		8.8	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	1,079.3		$	1,265.7		$	1,424.5		$	1,578.3		$	1,691.9
Deferral		324.8			336.5			370.8			365.2			396.9
Amortization		(95.0	)		(105.8	)		(135.5	)		(213.0	)		(205.0	)
Included in Total Operating Expenses		229.8			230.7			235.2			152.2			191.9
Adjustment related to realized (gains) losses
on available-for-sale securities		43.0			39.7			(31.9	)		(16.1	)		(14.6	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(89.0	)		(130.9	)		(49.5	)		(25.6	)		100.7
Other*		2.5			19.3			-			3.2			-
Balance at end of period	$	1,265.7		$	1,424.5		$	1,578.3		$	1,691.9		$	1,970.0
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	1,040.5		$	963.9		$	890.0		$	808.6		$	726.5
Amortization		(75.9	)		(73.9	)		(81.4	)		(82.2	)		(60.6	)
Other		(0.7	)		-			-			-			-
Balance at end of period	$	963.9		$	890.0		$	808.6		$	726.5		$	665.8
Roll Forward of Deferred Front-End Loads**
Balance at beginning of period	$	133.0		$	179.7		$	228.6		$	292.7		$	326.6
Deferral		74.1			85.8			92.1			98.0			84.9
Amortization		(27.4	)		(37.0	)		(27.9	)		(64.1	)		(50.9	)
Included in Income from Operations		46.7			48.9			64.1			33.9			33.9
Balance at end of period	$	179.7		$	228.6		$	292.7		$	326.6		$	360.5
*Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002. 2004 reflects the DAC unlocking resulting from the implementation of SOP 03-1.
** Included in Insurance and Investment Contract Liabilities on the Balance Sheet.

12/31/2005																									PAGE 24
Life Insurance Segment
Income Statements
Unaudited [Millions of Dollars]
For the Quarter Ended	Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2004			2004			2004			2004			2005			2005			2005			2005
Premiums	$	52.2		$	47.9		$	48.3		$	44.3		$	53.6		$	45.6		$	47.9		$	47.5		$	57.8
Surrender charges		16.1			13.8			12.7			11.1			14.2			12.0			9.1			10.8			11.6
Mortality assessments		128.4			128.5			129.6			130.1			130.5			133.3			132.7			129.8			137.8
Expense assessments		55.0			49.8			51.0			49.8			58.0			48.8			50.2			51.8			62.3
Other revenue and fees		8.4			7.8			8.2			7.3			8.1			8.2			8.2			8.6			8.9
Net investment income		228.1			235.7			234.9			238.4			239.4			236.3			249.2			244.1			241.2
Total Operating Revenue		488.2			483.4			484.8			481.1			503.7			484.2			497.3			492.4			519.6
Operating Expenses
Benefits paid or provided:
Benefits		83.2			97.4			104.4			95.8			106.4			97.4			105.0			117.9			102.0
Div accum & div to policyholders		33.8			18.5			18.6			16.7			23.6			18.4			18.4			17.3			23.6
Interest credited to policy bal.		147.5			144.8			143.9			143.8			147.1			145.8			145.2			149.0			150.2
Total insurance benefits		264.5			260.7			267.0			256.3			277.2			261.6			268.6			284.3			275.8
Underwriting, acquisition,
insurance and other expenses:
Commissions and other-volume related expenses		106.9			78.0			73.0			80.7			99.4			77.2			83.5			92.6			109.2
Operating and administrative expenses		45.4			38.5			40.7			46.5			42.9			40.7			42.2			50.3			43.3
Taxes, licenses and fees		18.0			12.4			11.5			12.8			12.5			14.7			12.5			11.9			14.7
Subtotal		170.3			128.9			125.2			140.0			154.7			132.6			138.2			154.8			167.3
DAC deferral net of amortization		(74.1	)		(35.0	)		(37.3	)		(25.9	)		(54.0	)		(25.2	)		(34.0	)		(76.6	)		(56.1	)
PVIF amortization		19.9			18.5			17.5			29.8			16.4			15.5			12.5			18.9			13.8
Total underwriting, acquisition,
insurance and other expenses		116.1			112.4			105.4			144.0			117.1			122.9			116.7			97.1			124.9
Total Operating Expenses		380.6			373.1			372.4			400.3			394.3			384.5			385.3			381.3			400.8
Operating income before federal taxes		107.6			110.3			112.4			80.7			109.5			99.7			112.0			111.1			118.8
-					-			-			-			-			-			-			-			-
Federal income taxes		34.3			35.5			36.2			25.4			35.5			32.0			36.2			36.0			38.6
-					-			-			-			-			-			-			-			-
Income from Operations	$	73.4		$	74.8		$	76.2		$	55.4		$	74.0		$	67.7		$	75.8		$	75.1		$	80.2
Effective Tax Rate		31.8	%		32.2	%		32.2	%		31.4	%		32.4	%		32.1	%		32.3	%		32.4	%		32.5	%
Average capital	$	2,893.7		$	2,927.4		$	2,993.5		$	3,086.4		$	3,137.0		$	3,300.3		$	3,417.8		$	3,432.9		$	3,510.7
Return on average capital		10.1	%		10.2	%		10.2	%		7.2	%		9.4	%		8.2	%		8.9	%		8.8	%		9.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	1,483.4		$	1,578.3		$	1,534.8		$	1,734.8		$	1,646.4		$	1,691.9		$	1,786.7		$	1,714.8		$	1,884.1
Deferral		112.1			83.7			81.1			90.8			109.7			85.0			91.1			102.0			118.9
Amortization		(38.0	)		(48.7	)		(43.8	)		(64.9	)		(55.7	)		(59.8	)		(57.0	)		(25.3	)		(62.8	)
Included in Total Operating Expenses		74.1			35.0			37.3			25.9			54.0			25.2			34.0			76.6			56.1
Adjustment related to realized (gains) losses
on available-for-sale securities		(11.0	)		(3.8	)		(2.4	)		(4.8	)		(5.0	)		(2.0	)		(5.9	)		(5.4	)		(1.3	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		31.9			(77.6	)		165.0			(109.3	)		(3.7	)		71.6			(100.1	)		98.1			31.1
Other*		-			3.0			0.2			(0.1	)		0.2			-			-			-			-
Balance at end of period	$	1,578.3		$	1,534.8		$	1,734.8		$	1,646.4		$	1,691.9		$	1,786.7		$	1,714.8		$	1,884.1		$	1,970.0
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	828.5		$	808.6		$	790.1		$	772.6		$	742.8		$	726.5		$	710.9		$	698.5		$	679.6
Amortization		(19.9	)		(18.5	)		(17.5	)		(29.8	)		(16.4	)		(15.5	)		(12.5	)		(18.9	)		(13.8	)
Balance at end of period	$	808.6		$	790.1		$	772.6		$	742.8		$	726.5		$	710.9		$	698.5		$	679.6		$	665.8
Roll Forward of Deferred Front-End Loads**
Balance at beginning of period	$	283.1		$	292.7		$	301.5		$	312.2		$	316.4		$	326.6		$	327.9		$	331.5		$	355.4
Deferral		23.6			22.8			24.1			23.8			27.3			21.1			20.9			19.9			23.0
Amortization		(14.0	)		(14.0	)		(13.4	)		(19.6	)		(17.1	)		(19.7	)		(17.3	)		4.0			(17.9	)
Included in Income from Operations		9.6			8.9			10.7			4.2			10.2			1.4			3.6			23.9			5.1
Balance at end of period	$	292.7		$	301.5		$	312.2		$	316.4		$	326.6		$	327.9		$	331.5		$	355.4		$	360.5
*First quarter of 2004 reflects the DAC unlocking resulting from the implementation of SOP 03-1.
** Included in Insurance and Investment Contract Liabilities on the Balance Sheet

12/31/2005																							PAGE 25
Life Insurance Segment
Operational Data
Unaudited [Millions of Dollars]
For the Year Ended December 31															2001		2002		2003		2004		2005
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard															$ 184.7		$ 356.9		$ 417.0		$ 401.1		$ 438.4
MoneyGuard															107.9		138.4		224.7		244.5		226.0
Total															292.7		495.3		641.6		645.6		664.4
Variable Universal Life															228.6		134.5		79.4		84.8		106.6
Whole Life															26.3		30.3		34.4		41.2		40.7
Term															30.8		32.3		40.2		41.0		33.8
Total Retail															578.4		692.3		795.7		812.6		845.4
Corporate Owned Life Insurance (COLI)															47.3		88.1		125.6		73.7		70.5
Total															$ 625.6		$ 780.4		$ 921.3		$ 886.2		$ 915.9
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors															$ 196.1		$ 201.7		$ 223.5		$ 209.3		$ 183.1
Lincoln Financial Distributors															413.0		556.3		631.9		623.7		676.2
Other*															16.6		22.4		65.8		53.2		56.6
Total by Distribution															$ 625.6		$ 780.4		$ 921.3		$ 886.2		$ 915.9
Life Insurance In-Force (Billions)
Universal Life & Other															$ 121.168		$ 126.016		$ 129.623		$ 132.120		$136.519
Term Insurance															113.226		127.880		151.717		172.459		187.850
Total Life Segment In-Force															$ 234.394		$ 253.896		$ 281.340		$ 304.579		$324.369
For the Quarter Ended	Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec
	2003		2003		2003		2003		2004		2004		2004		2004		2005		2005		2005		2005
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard	$	84.5	$	93.8	$	114.2	$	124.5	$	95.7	$	100.7	$	90.1	$	114.5	$	87.1	$	104.1	$	102.9	$	144.4
MoneyGuard		46.3		48.9		58.2		71.4		56.2		61.1		60.7		66.6		49.4		53.4		60.7		62.5
Total		130.8		142.7		172.3		195.9		151.9		161.8		150.8		181.1		136.4		157.4		163.6		206.9
Variable Universal Life		24.4		14.1		16.6		24.4		22.5		17.7		17.2		27.5		25.9		23.8		23.4		33.4
Whole Life		6.5		7.1		8.5		12.3		10.8		7.6		9.7		13.1		7.8		8.3		10.2		14.4
Term		9.1		9.6		10.5		10.9		10.5		10.6		10.4		9.4		9.2		8.6		8.0		8.0
Total Retail		170.7		173.5		208.0		243.5		195.6		197.8		188.1		231.2		179.3		198.1		205.3		262.6
Corporate Owned Life Insurance (COLI)		10.6		61.8		23.7		29.6		14.2		9.9		29.2		20.4		24.8		10.2		22.3		13.1
Total	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5	$	204.1	$	208.4	$	227.6	$	275.8
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	$	42.1	$	46.8	$	66.2	$	68.5	$	47.7	$	47.2	$	48.2	$	66.1	$	43.1	$	44.3	$	45.6	$	50.1
Lincoln Financial Distributors		131.7		148.3		156.8		195.2		151.4		152.9		152.0		167.4		149.7		153.5		173.0		200.0
Other*		7.5		40.2		8.7		9.4		10.6		7.5		17.1		18.0		11.3		10.6		9.0		25.7
Total by Distribution	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5	$	204.1	$	208.4	$	227.6	$	275.8
Insurance In-Force (Billions)
Universal Life & Other	$	126.414	$	127.276	$	127.855	$	129.623	$	129.669	$	130.294	$	130.989	$	132.120	$	132.436	$	133.347	$	134.483	$	136.519
Term Insurance		133.251		139.191		145.480		151.717		157.338		162.953		167.979		172.459		176.541		180.659		184.334		187.850
Total Segment In-Force	$	259.666	$	266.467	$	273.335	$	281.340	$	287.007	$	293.247	$	298.967	$	304.579	$	308.976	$	314.005	$	318.817	$	324.369
*Other consists of distribution arrangements with third-party intermediaries.

12/31/2005													PAGE 26
Life Insurance Segment
Life Insurance Account Value Rollforward
Unaudited [Billions of Dollars]
	2001			2002			2003			2004			2005
Universal Life-Bal Beg-of-Year	$	6.976		$	7.508		$	8.211		$	9.030		$	9.648
Deposits		1.043			1.332			1.532			1.433			1.432
Withdrawals & deaths		(0.319	)		(0.426	)		(0.437	)		(0.474	)		(0.422	)
Net flows		0.724			0.906			1.095			0.959			1.010
Policyholder assessments		(0.598	)		(0.648	)		(0.702	)		(0.753	)		(0.804	)
Interest credited		0.405			0.428			0.427			0.413			0.418
Acq of new business/transfers between segments		-			0.018			-			-			-
Universal Life-Bal End of Year (1)	$	7.508		$	8.211		$	9.030		$	9.648		$	10.271
Variable Universal Life-Bal Beg-of-Year	$	1.808		$	1.746		$	1.690		$	2.195		$	2.520
Deposits		0.584			0.504			0.448			0.560			0.535
Withdrawals & deaths		(0.251	)		(0.193	)		(0.208	)		(0.315	)		(0.242	)
Net flows		0.332			0.311			0.240			0.245			0.294
Policyholder assessments		(0.170	)		(0.186	)		(0.191	)		(0.194	)		(0.202	)
Invest inc & chg in mkt value		(0.225	)		(0.313	)		0.457			0.273			0.249
Acq of new business/transfers between segments		-			0.132			-			-			-
Variable Universal Life -Bal end of year	$	1.746		$	1.690		$	2.195		$	2.520		$	2.861
Interest Sensitive Whole Life - Bal Beg-of-Year	$	2.062		$	2.123		$	2.186		$	2.195		$	2.214
Deposits		0.307			0.301			0.279			0.250			0.272
Withdrawals & deaths		(0.200	)		(0.199	)		(0.236	)		(0.207	)		(0.220	)
Net flows		0.107			0.103			0.043			0.043			0.052
Policyholder assessments		(0.164	)		(0.167	)		(0.159	)		(0.149	)		(0.176	)
Interest credited		0.118			0.127			0.125			0.126			0.146
Int Sensitive Whole Life-Bal End -of -Year	$	2.123		$	2.186		$	2.195		$	2.214		$	2.236
Total Segment- Life Insurance Account Values
Bal Beg-of-Year	$	10.847		$	11.377		$	12.086		$	13.420		$	14.382
Deposits		1.934			2.138			2.259			2.243			2.240
Withdrawals & deaths		(0.771	)		(0.818	)		(0.881	)		(0.996	)		(0.884	)
Net flows		1.163			1.320			1.377			1.247			1.356
Policyholder assessments		(0.931	)		(1.002	)		(1.053	)		(1.096	)		(1.182	)
Invest inc & change in market value		0.299			0.241			1.009			0.812			0.813
Acq of new business/transfers between segments		-			0.150			-			-			-
Total Segment -Bal end of year	$	11.377		$	12.086		$	13.420		$	14.382		$	15.368
Life Product Spread Information (2)
Interest Sensitive Products
Net investment income (3)(4)		7.63	%		7.30	%		6.97	%		6.67	%		6.32	%
Interest credited to policyholders		5.86	%		5.77	%		5.36	%		4.85	%		4.69	%
Spread (3)(4)		1.77	%		1.53	%		1.61	%		1.81	%		1.63	%
Traditional Products
Net investment income (3)(4)		7.49	%		7.42	%		6.99	%		6.90	%		6.43	%
(1) Includes fixed investment option of VUL products.
(2) Interest Sensitive Products - For the life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of year ends 2001, 2002, 2003, 2004 and 2005, interest sensitive products represented 86%, 87%, 88%, 88%,and 89%, respectively, of total interest sensitive and traditional non-par earning assets.
(3) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums.  The impact of these premiums on investment income and spread for interest sensitive products was 7 bps in 2005, 20 bps in 2004, 3 bps in 2003, 4 bps in 2002, and 6 bps in 2001. The impact for traditional products was 6 bps in 2005, 18 bps in 2004, 6 bpsin 2003, 5 bps in 2002, and 13 bps in 2001.
(4) 2004 includes income from contingent interest received, which contributed $6.5 million to net investment income or 6 bps to the yield and spread on Interest Sensitive Products and $2.4 million to net investment income or 17 bps to the yield and spread on Traditional Products.

12/31/2005																															PAGE 27
Life Insurance Segment
Life Insurance Account Value Roll Forward
Unaudited [Billions of Dollars]
	Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Universal Life-Bal Beg-of-Quarter	$	8.211		$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444		$	9.648		$	9.764		$	9.902		$	10.053
Deposits		0.316			0.350			0.426			0.440			0.342			0.345			0.333			0.413			0.321			0.333			0.349			0.429
Withdrawals & deaths		(0.107	)		(0.101	)		(0.117	)		(0.113	)		(0.117	)		(0.128	)		(0.112	)		(0.117	)		(0.115	)		(0.101	)		(0.103	)		(0.105	)
Net flows		0.210			0.249			0.309			0.327			0.225			0.217			0.221			0.296			0.207			0.233			0.246			0.324
Policyholder assessments		(0.168	)		(0.171	)		(0.178	)		(0.185	)		(0.183	)		(0.187	)		(0.188	)		(0.196	)		(0.194	)		(0.198	)		(0.200	)		(0.213	)
Interest credited		0.106			0.106			0.108			0.106			0.103			0.102			0.103			0.105			0.103			0.103			0.105			0.107
Universal Life-Bal End-of-Quarter (1)	$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444		$	9.648		$	9.764		$	9.902		$	10.053		$	10.271
Variable Universal Life-Bal Beg of Quarter	$	1.690		$	1.689		$	1.930		$	1.991		$	2.195		$	2.249		$	2.277		$	2.275		$	2.520		$	2.500		$	2.587		$	2.734
Deposits		0.118			0.114			0.093			0.123			0.106			0.108			0.156			0.192			0.130			0.131			0.138			0.136
Withdrawals & deaths		(0.036	)		(0.050	)		(0.048	)		(0.074	)		(0.073	)		(0.042	)		(0.089	)		(0.111	)		(0.069	)		(0.062	)		(0.065	)		(0.045	)
Net flows		0.082			0.064			0.045			0.049			0.032			0.066			0.067			0.081			0.061			0.068			0.073			0.091
Policyholder assessments		(0.049	)		(0.048	)		(0.046	)		(0.049	)		(0.048	)		(0.048	)		(0.048	)		(0.050	)		(0.049	)		(0.049	)		(0.050	)		(0.054	)
Invest inc & chg in mkt value		(0.034	)		0.225			0.062			0.204			0.070			0.011			(0.021	)		0.214			(0.031	)		0.067			0.125			0.089
Variable Universal Life -Bal End-of-Quarter	$	1.689		$	1.930		$	1.991		$	2.195		$	2.249		$	2.277		$	2.275		$	2.520		$	2.500		$	2.587		$	2.734		$	2.861
Interest Sensitive Whole Life - Bal Beg-of-Quarter	$	2.186		$	2.185		$	2.191		$	2.185		$	2.195		$	2.182		$	2.185		$	2.193		$	2.214		$	2.201		$	2.202		$	2.213
Deposits		0.051			0.062			0.067			0.098			0.054			0.055			0.059			0.082			0.061			0.062			0.066			0.083
Withdrawals & deaths		(0.046	)		(0.050	)		(0.066	)		(0.073	)		(0.063	)		(0.047	)		(0.047	)		(0.050	)		(0.068	)		(0.055	)		(0.048	)		(0.048	)
Net flows		0.005			0.012			0.001			0.026			(0.009	)		0.008			0.012			0.032			(0.007	)		0.007			0.018			0.035
Policyholder assessments		(0.036	)		(0.038	)		(0.039	)		(0.047	)		(0.036	)		(0.036	)		(0.036	)		(0.041	)		(0.045	)		(0.043	)		(0.043	)		(0.045	)
Interest credited		0.030			0.032			0.032			0.031			0.032			0.031			0.032			0.030			0.039			0.037			0.036			0.034
Int Sensitive Whole Life-Bal        End-of-Quarter	$	2.185		$	2.191		$	2.185		$	2.195		$	2.182		$	2.185		$	2.193		$	2.214		$	2.201		$	2.202		$	2.213		$	2.236
Total Segment- Life Insurance Account Values
Bal Beg-of-Quarter	$	12.086		$	12.233		$	12.663		$	12.958		$	13.420		$	13.606		$	13.770		$	13.912		$	14.382		$	14.466		$	14.691		$	15.001
Deposits		0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512			0.527			0.553			0.648
Withdrawals & deaths		(0.190	)		(0.202	)		(0.231	)		(0.259	)		(0.254	)		(0.217	)		(0.248	)		(0.278	)		(0.252	)		(0.218	)		(0.216	)		(0.198	)
Net flows		0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408			0.260			0.309			0.337			0.450
Policyholder assessments		(0.252	)		(0.257	)		(0.262	)		(0.280	)		(0.267	)		(0.271	)		(0.272	)		(0.287	)		(0.287	)		(0.290	)		(0.293	)		(0.312	)
Invest inc & change in market value		0.103			0.363			0.202			0.341			0.205			0.145			0.114			0.348			0.111			0.206			0.266			0.230
Total Segment -Bal            End-of-Quarter	$	12.233		$	12.663		$	12.958		$	13.420		$	13.606		$	13.770		$	13.912		$	14.382		$	14.466		$	14.691		$	15.001		$	15.368
Life Product Spread Information (2)
Interest Sensitive Products
Net investment income (3)(4)		7.21	%		7.09	%		6.90	%		6.73	%		6.84	%		6.70	%		6.62	%		6.50	%		6.32	%		6.35	%		6.35	%		6.26	%
Interest credited to policyholders		5.56	%		5.43	%		5.37	%		5.12	%		4.97	%		4.89	%		4.79	%		4.80	%		4.75	%		4.65	%		4.70	%		4.66	%
Spread (3)(4)		1.65	%		1.65	%		1.53	%		1.61	%		1.87	%		1.81	%		1.83	%		1.69	%		1.57	%		1.71	%		1.65	%		1.60	%
Traditional Products
Net investment income (3)(4)		7.16	%		7.13	%		6.99	%		6.72	%		7.33	%		6.61	%		6.97	%		6.60	%		6.43	%		6.50	%		6.40	%		6.36	%
(1) Includes fixed investment option of VUL products.
(2) Interest Sensitive Products - For the life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of December 31, 2005, interest sensitive products represented 89% of total interest sensitive and traditional non-par earning assets.
(3) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread for interest sensitive products was 11 bps in the 4th quarter of 2005, 4 bps in the 3rd quarter of 2005, 12 bps in the 2nd quarter of 2005, 0 bps in the 1st quarter of 2005, 13 bps in the 4th quarter of 2004, 29 bps in the 3rd quarter of 2004, 32 bps in the 2nd quarter of 2004, 7 bps in the 1st quarter of 2004, and 1bp in the 4th quarter of 2003. There was an impact on traditional products of 0 bps in the 4th quarter of 2005, 6 bps in the 3rd quarter of 2005, 12 bps in the 2nd quarter of 2005, 5 bps in the 1st quarter of 2005, 7 bps in the 4th quarter of 2004, 59 bps in the 3rd quarter of 2004, 5 bps in the 2nd quarter of 2004, 0 bps in the 1st quarter of 2004, and 10 bps during the 4th quarter of 2003.
(4) First quarter 2004 includes income from contingent interest received, which contributed $6.5 million to net investment income or 25 bps to the yield and spread on Interest Sensitive Products and $2.4 million to net investment income or 72 bps to the yield and spread on Traditional Products.

12/31/2005													PAGE 28
Investment Management
Income Statements
Unaudited [Millions of Dollars]
For the Year Ended December 31	2001			2002			2003			2004			2005
Operating Revenue
Investment advisory fees - External	$	197.2		$	183.3		$	205.0		$	252.5		$	279.0
Investment advisory fees - Insurance-related assets		105.0			97.7			101.2			105.8			98.8
Other revenue and fees		51.7			46.5			72.8			66.2			65.8
Surrender charges		2.2			2.4			2.3			1.9			2.3
Expense assessments		45.3			38.1			42.8			56.8			68.9
Net investment income		53.6			50.5			49.9			51.7			53.0
Operating Revenue		454.9			418.5			474.0			534.9			567.8
Operating Expenses
Interest credited to policy bal.		38.7			31.3			26.4			26.9			27.9
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		31.6			35.5			42.2			53.0			60.1
Operating and administrative expenses		344.6			335.5			368.7			392.9			430.3
DAC deferral net of amortization		(4.7	)		(9.2	)		(22.8	)		(27.1	)		(19.8	)
Taxes, licenses and fees		16.8			13.0			10.3			17.0			10.7
Subtotal		388.2			374.9			398.4			435.8			481.2
Other intangibles amortization		10.8			8.2			7.9			9.7			7.8
Total underwriting, acquisition,
insurance and other expenses		399.0			383.2			406.3			445.5			489.0
Goodwill amortization		16.2			-			-			-			-
Total Operating Expenses		454.0			414.4			432.7			472.5			516.9
Operating income before federal taxes		0.9			4.1			41.3			62.4			50.9
Federal income taxes		7.0			2.2			6.8			18.9			14.9
Income (Loss) from Operations	$	(6.1	)	$	1.8		$	34.5		$	43.6		$	36.0
Effective tax rate		NM			54.8	%		16.5	%		30.2	%		29.3	%
Average capital (securities at cost)	$	557.0		$	581.2		$	602.4		$	610.9		$	544.9
Return on average capital		(1.1	%)		0.3	%		5.7	%		7.1	%		6.6	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	81.1		$	85.6		$	90.8		$	91.8		$	120.4
Deferral		35.6			42.0			42.0			51.4			48.2
Amortization		(30.8	)		(32.9	)		(19.2	)		(24.3	)		(28.3	)
Included in Total Benefits and Expenses		4.7			9.2			22.8			27.1			19.8
Adjustment related to realized (gains) losses
on available-for-sale securities		1.6			2.3			0.5			(1.3	)		(0.4	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(1.8	)		(6.3	)		(22.2	)		2.7			14.6
Balance at end of period	$	85.6		$	90.8		$	91.8		$	120.4		$	154.5
Certain reclassifications have been made to present financial information for the Investment Management segment's 401(k) Director product on a basis consistent with the reporting for similar products in the Lincoln Retirement and Life Insurance segments.

12/31/2005																									PAGE 29
Investment Management
Income Statements
Unaudited [Millions of Dollars]
For the Quarter Ended	Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2004			2004			2004			2004			2005			2005			2005			2005
Operating Revenue
Investment advisory fees - External	$	58.3		$	62.7		$	66.4		$	67.4		$	56.0		$	59.4		$	66.9		$	73.6		$	79.0
Investment advisory fees - Insurance-related                assets		26.2			26.5			26.1			26.4			26.8			24.8			24.6			24.9			24.5
Other revenue and fees		23.7			19.1			16.7			13.7			16.7			16.0			14.9			17.1			17.8
Surrender charges		0.7			0.5			0.5			0.4			0.5			0.7			0.5			0.6			0.5
Expense assessments		12.4			14.1			14.7			12.5			15.5			16.6			16.8			17.9			17.6
Net investment income		12.5			12.2			14.6			12.7			12.3			12.9			14.2			12.7			13.2
Operating Revenue		133.8			135.2			139.0			133.0			127.7			130.4			138.0			146.8			152.7
Operating Expenses
Interest credited to policy bal.		6.6			6.6			6.7			6.9			6.8			6.8			7.0			7.0			7.1
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related              expenses		12.0			14.0			14.4			12.9			11.7			14.8			13.0			16.4			15.9
Operating and administrative expenses		99.1			96.1			98.5			98.1			100.2			96.4			111.5			112.8			109.5
DAC deferral net of amortization		(4.4	)		(5.6	)		(8.1	)		(9.5	)		(3.9	)		(3.3	)		(2.7	)		(9.9	)		(3.9	)
Taxes, licenses and fees		2.1			3.9			5.5			4.6			3.1			3.0			2.3			2.7			2.8
Subtotal		108.7			108.5			110.3			106.0			111.0			110.9			124.1			122.0			124.2
Other intangibles amortization		2.0			2.0			2.0			2.0			3.8			1.9			1.9			2.0			2.0
Total underwriting, acquisition,
insurance and other expenses		110.7			110.4			112.3			108.0			114.8			112.8			126.0			124.0			126.2
Total Operating Expenses		117.3			117.0			118.9			114.8			121.7			119.6			133.0			131.0			133.3
Operating income before federal taxes		16.4			18.2			20.1			18.2			6.0			10.7			5.0			15.7			19.4
Federal income taxes		(2.6	)		5.6			6.7			5.7			0.8			3.3			1.2			5.6			4.8
Income from Operations	$	19.0		$	12.5		$	13.4		$	12.5		$	5.2		$	7.4		$	3.9		$	10.2		$	14.6
Effective tax rate		NM			31.1	%		33.4	%		31.3	%		13.6	%		31.2	%		23.1	%		35.4	%		24.9	%
Average capital (securities at cost)	$	623.0		$	634.2		$	634.8		$	627.2		$	547.3		$	548.0		$	542.5		$	540.1		$	549.0
Return on average capital		12.2	%		7.9	%		8.4	%		8.0	%		3.8	%		5.4	%		2.8	%		7.5	%		10.6	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	81.9		$	91.8		$	84.2		$	120.1		$	115.3		$	120.4		$	133.8		$	126.7		$	146.2
Deferral		10.2			11.7			13.4			12.5			13.8			12.2			10.6			12.8			12.6
Amortization		(5.8	)		(6.1	)		(5.3	)		(3.0	)		(10.0	)		(8.9	)		(7.8	)		(2.9	)		(8.6	)
Included in Total Benefits and Expenses		4.4			5.6			8.1			9.5			3.9			3.3			2.7			9.9			3.9
Adjustment related to realized (gains) losses
on available-for-sale securities		(0.2	)		(3.6	)		2.4			0.4			(0.5	)		0.4			(0.0	)		(0.4	)		(0.4	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		5.7			(9.6	)		25.4			(14.8	)		1.7			9.8			(9.9	)		9.9			4.8
Balance at end of period	$	91.8		$	84.2		$	120.1		$	115.3		$	120.4		$	133.8		$	126.7		$	146.2		$	154.5
Certain reclassifications have been made to present financial information for the Investment Management segment's 401(k) Director product on a basis consistent with the reporting for similar products in the Lincoln Retirement and Life Insurance segments.

12/31/2005													PAGE 30
Investment Management
Assets Under Management Rollforward
Unaudited [Billions of Dollars]
	2001			2002			2003			2004			2005
Retail Fixed - Bal Beg-of-Period	$	6.605		$	7.118		$	7.631		$	8.186		$	8.257
Fund Sales		0.876			1.218			1.792			1.882			2.483
Redemptions		(1.051	)		(1.182	)		(1.442	)		(1.520	)		(1.476	)
Net Money Market		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.060	)
Transfers		0.405			0.206			(0.168	)		(0.212	)		(0.082	)
Net Flows		0.184			0.192			0.154			0.037			0.865
Market		0.330			0.321			0.401			0.290			0.079
Transfer of Assets Under Administration(1)		-			-			-			(0.256	)		(0.001	)
Balance end of period	$	7.118		$	7.631		$	8.186		$	8.257		$	9.199
Retail Equity - Bal Beg-of-Period	$	21.525		$	17.990		$	14.917		$	20.887		$	26.130
Fund Sales		2.817			4.477			3.791			7.110			11.573
Redemptions		(2.838	)		(3.690	)		(2.830	)		(4.054	)		(5.138	)
Transfers		(0.538	)		(0.173	)		0.156			0.042			(0.203	)
Net Flows		(0.560	)		0.614			1.117			3.099			6.233
Market		(2.975	)		(3.688	)		4.854			3.256			3.114
Sale of subsidiary/Transfer of Assets Under
Administration (1) (2)		-			-			-			(1.112	)		(0.003	)
Balance at end of period	$	17.990		$	14.917		$	20.887		$	26.130		$	35.474
Total Retail - Bal Beg-of-Period	$	28.130		$	25.108		$	22.547		$	29.073		$	34.387
Retail Sales-Annuities		1.701			2.751			2.151			2.757			2.957
Retail Sales-Mutual Funds		1.523			1.829			2.315			3.235			4.860
Retail Sales-Managed Acct. & Other		0.469			1.115			1.116			2.999			6.239
Total Retail Sales		3.693			5.695			5.583			8.992			14.056
Redemptions		(3.889	)		(4.873	)		(4.272	)		(5.574	)		(6.613	)
Net Money Market		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.060	)
Transfers		(0.133	)		0.033			(0.012	)		(0.170	)		(0.285	)
Net Flows		(0.375	)		0.806			1.271			3.136			7.098
Market		(2.646	)		(3.366	)		5.255			3.546			3.193
Sale of subsidiary/Transfer of Assets Under
Administration (1) (2)		-			-			-			(1.368	)		(0.004	)
Balance at end of period(1) (2)	$	25.108		$	22.547		$	29.073		$	34.387		$	44.673
Institutional Fixed - Bal Beg-of-Period	$	6.111		$	5.489		$	7.237		$	8.399		$	9.960
Inflows		0.643			2.281			1.937			5.134			4.277
Withdrawals/Terminations		(1.229	)		(1.146	)		(1.226	)		(0.593	)		(1.300	)
Transfers		0.017			0.004			0.005			0.009			0.000
Net Flows (2)		(0.569	)		1.139			0.716			4.549			2.977
Market		(0.053	)		0.608			0.447			0.135			0.104
Sale of Subsidiary (2)		-			-			-			(3.124	)		-
Balance at end of period (2)	$	5.489		$	7.237		$	8.399		$	9.960		$	13.042
Institutional Equity - Bal Beg-of-Period	$	19.114		$	17.815		$	16.711		$	25.322		$	11.682
Inflows		3.183			2.913			3.922			6.155			10.356
Withdrawals/Terminations		(2.879	)		(1.991	)		(2.178	)		(3.583	)		(4.520	)
Transfers		0.035			0.045			0.018			0.057			0.048
Net Flows		0.338			0.967			1.762			2.629			5.884
Market		(1.637	)		(2.071	)		6.849			2.394			1.813
Sale of Subsidiary (2)		-			-			-			(18.664	)		-
Balance at end of period	$	17.815		$	16.711		$	25.322		$	11.682		$	19.379
Total Institutional - Bal Beg-of-Period	$	25.225		$	23.305		$	23.948		$	33.722		$	21.643
Inflows		3.826			5.194			5.859			11.289			14.633
Withdrawals/Terminations		(4.109	)		(3.137	)		(3.404	)		(4.176	)		(5.820	)
Transfers		0.052			0.050			0.023			0.066			0.048
Net Flows		(0.231	)		2.106			2.478			7.178			8.861
Market		(1.690	)		(1.463	)		7.296			2.530			1.917
Sale of Subsidiary (2)		-			-			-			(21.787	)		-
Balance at end of period	$	23.305		$	23.948		$	33.722		$	21.643		$	32.420
Total Retail/Institutional - At end of period	$	48.412		$	46.495		$	62.794		$	56.029		$	77.093
Insurance-related Assets - At end of period	$	38.119		$	41.104		$	43.024		$	43.980		$	44.483
Total Retail/Inst - Net Flows	$	(0.606	)	$	2.912		$	3.749		$	10.314		$	15.959
Total Assets Under Management
At end of period	$	86.531		$	87.599		$	105.818		$	100.009		$	121.576
Subadvised Assets, included in Assets Under Management above
Retail	$	3.330		$	2.460		$	3.750		$	10.740		$	17.162
Institutional		0.030			0.020			0.030			3.740			4.782
Total Subadvised Assets	$	3.360		$	2.480		$	3.780		$	14.480		$	21.945
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively.
(2) In the third quarter of 2004, the Investment Management segment sold its London-based international investment unit. Assets under management transferred as a result of the sale were $22.1 billion. See page 30A for assets under management without the London-based international investment unit. In addition, the London-based international investment unit began subadvising certain retail and institutional assets in the third quarter of 2004.

12/31/2005													PAGE 30A
Investment Management (excluding Assets Managed by
Delaware's London-based International Investment Unit)
Assets Under Management Rollforward
Unaudited [Billions of Dollars]
	2001			2002			2003			2004			2005
Retail Fixed - Bal Beg-of-Period	$	6.604		$	7.118		$	7.631		$	8.186		$	8.257
Fund Sales		0.876			1.218			1.792			1.882			2.483
Redemptions		(1.051	)		(1.182	)		(1.442	)		(1.520	)		(1.476	)
Net Money Market		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.060	)
Transfers		0.405			0.206			(0.168	)		(0.212	)		(0.082	)
Net Flows		0.184			0.192			0.154			0.037			0.865
Market		0.330			0.321			0.401			0.290			0.079
Transfer of Assets Under        Administration (1)		-			-			-			(0.256	)		(0.001	)
Balance end of period	$	7.118		$	7.631		$	8.186		$	8.257		$	9.199
Retail Equity - Bal Beg-of-Period	$	21.525		$	17.990		$	14.624		$	20.564		$	26.130
Fund Sales		2.817			4.182			3.780			7.105			11.573
Redemptions		(2.838	)		(3.684	)		(2.765	)		(4.024	)		(5.138	)
Transfers		(0.538	)		(0.173	)		0.156			0.042			(0.203	)
Net Flows		(0.560	)		0.325			1.171			3.123			6.233
Market		(2.975	)		(3.691	)		4.769			3.236			3.114
Transfer of Assets        Under Administration (1)		-			-			-			(0.793	)		(0.003	)
Balance at end of period	$	17.990		$	14.624		$	20.564		$	26.130		$	35.474
Total Retail - Bal Beg-of-Period	$	28.129		$	25.108		$	22.255		$	28.750		$	34.387
Retail Sales-Annuities		1.701			2.456			2.140			2.752			2.957
Retail Sales-Mutual Funds		1.523			1.829			2.315			3.235			4.860
Retail Sales-Managed Acct. & Other		0.469			1.115			1.116			2.999			6.239
Total Retail Sales		3.693			5.399			5.572			8.987			14.056
Redemptions		(3.889	)		(4.867	)		(4.207	)		(5.544	)		(6.613	)
Net Money Market		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.060	)
Transfers		(0.133	)		0.033			(0.012	)		(0.170	)		(0.285	)
Net Flows		(0.375	)		0.517			1.325			3.160			7.098
Market		(2.646	)		(3.370	)		5.171			3.526			3.193	��
Transfer of Assets        Under Administration (1)		-			-			-			(1.049	)		(0.004	)
Balance at end of period	$	25.108		$	22.255		$	28.750		$	34.387		$	44.673
Institutional Fixed - Bal Beg-of-Period	$	3.590		$	3.377		$	5.147		$	5.981		$	9.960
Inflows		0.388			2.177			1.540			4.356			4.277
Withdrawals/Terminations		(0.586	)		(0.541	)		(0.635	)		(0.452	)		(1.300	)
Transfers		0.017			0.004			(0.126	)		0.009			0.000
Net Flows		(0.181	)		1.640			0.779			3.913			2.977
Market		(0.032	)		0.130			0.055			0.067			0.104
Balance at end of period	$	3.377		$	5.147		$	5.981		$	9.960		$	13.042
Institutional Equity - Bal Beg-of-Period	$	9.664		$	8.185		$	7.201		$	10.318		$	11.682
Inflows		1.555			1.532			1.780			2.281			10.356
Withdrawals/Terminations		(2.334	)		(1.333	)		(1.161	)		(2.428	)		(4.520	)
Transfers		0.035			0.045			0.034			0.118			0.048
Net Flows		(0.744	)		0.245			0.653			(0.029	)		5.884
Market		(0.735	)		(1.229	)		2.463			1.393			1.813
Balance at end of period	$	8.185		$	7.201		$	10.318		$	11.682		$	19.379
Total Institutional - Bal Beg-of-Period	$	13.255		$	11.562		$	12.348		$	16.299		$	21.643
Inflows		1.943			3.709			3.320			6.637			14.633
Withdrawals/Terminations		(2.920	)		(1.874	)		(1.796	)		(2.880	)		(5.820	)
Transfers		0.052			0.050			(0.092	)		0.127			0.048
Net Flows		(0.925	)		1.885			1.433			3.884			8.861
Market		(0.767	)		(1.099	)		2.518			1.459			1.917
Balance at end of period	$	11.562		$	12.348		$	16.299		$	21.643		$	32.420
Total Retail/Institutional - At end of period	$	36.670		$	34.603		$	45.049		$	56.029		$	77.093
Insurance-related Assets - At end of period	$	38.119		$	41.104		$	43.024		$	43.980		$	44.483
Total Retail/Inst - Net Flows	$	(1.301	)	$	2.402		$	2.757		$	7.045		$	15.959
Total Assets Under Management
At end of period	$	74.789		$	75.707		$	88.072		$	100.009		$	121.576
Subadvised Assets, included in Assets Under Management above
Retail	$	3.330		$	2.460		$	3.750		$	10.740		$	17.162
Institutional		0.030			0.020			0.030			3.740			4.782
Total Subadvised Assets	$	3.360		$	2.480		$	3.780		$	14.480		$	21.945
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively.
(2) This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

12/31/2005																																		PAGE 31
Investment Management
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]
	Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Retail Fixed - Bal-Beg-of-Qtr	$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501		$	8.823		$	9.061
Fund Sales		0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493			0.608			0.612			0.602			0.661
Redemptions		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)		(0.373	)		(0.325	)		(0.346	)		(0.432	)
Net Money Market		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)		(0.010	)		(0.010	)
Transfers		0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)		0.104			(0.107	)		0.023			(0.102	)
Net Flows		0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134			0.314			0.166			0.268			0.117
Market		0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125			(0.068	)		0.156			(0.030	)		0.021
Transfer of Assets Under        Administration(1)																				(0.194	)		(0.062	)		(0.001	)		-			-			-
Balance at End-of-Qtr	$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501		$	8.823		$	9.061		$	9.199
Retail Equity - Bal-Beg-of-Qtr	$	14.917		$	14.286		$	16.906		$	17.961		$	20.887		$	22.546		$	23.223		$	22.620		$	26.130		$	26.970		$	29.898		$	33.449
Fund Sales		0.717			0.813			1.051			1.210			1.938			1.666			1.480			2.026			2.773			3.421			2.882			2.497
Redemptions		(0.803	)		(0.612	)		(0.706	)		(0.710	)		(0.992	)		(1.028	)		(1.081	)		(0.953	)		(1.325	)		(1.305	)		(1.198	)		(1.310	)
Transfers		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)		(0.183	)		0.049			(0.111	)		0.042
Net Flows		(0.145	)		0.213			0.457			0.592			0.944			0.634			0.485			1.036			1.265			2.166			1.573			1.229
Market		(0.486	)		2.408			0.598			2.334			0.715			0.044			(0.188	)		2.685			(0.423	)		0.763			1.979			0.796
Sale of Subsidiary/Transfer of Assets
Under Administration (1) (2)		-			-			-			-			-			-			(0.901	)		(0.211	)		(0.003	)		-			-			-
Balance at End-of-Qtr	$	14.286		$	16.906		$	17.961		$	20.887		$	22.546		$	23.223		$	22.620		$	26.130		$	26.970		$	29.898		$	33.449		$	35.474
Total Retail - Bal-Beg-of-Qtr	$	22.547		$	22.193		$	25.096		$	26.044		$	29.073		$	30.859		$	31.375		$	30.680		$	34.387		$	35.471		$	38.720		$	42.509
Retail Sales-Annuities		0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737			0.735			0.655			0.752			0.815
Retail Sales-Mutual Funds		0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255			1.159			1.110
Retail Sales-Managed Acct. & Other		0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123			1.573			1.232
Total Retail Sales		1.141			1.282			1.494			1.666			2.451			2.117			1.905			2.519			3.381			4.034			3.484			3.158
Redemptions		(1.130	)		(0.930	)		(1.141	)		(1.071	)		(1.409	)		(1.491	)		(1.422	)		(1.252	)		(1.697	)		(1.630	)		(1.545	)		(1.741	)
Net Money Market		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)		(0.010	)		(0.010	)
Transfers		0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)		(0.079	)		(0.058	)		(0.089	)		(0.060	)
Net Flows		0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170			1.579			2.331			1.841			1.347
Market		(0.369	)		2.601			0.578			2.444			0.818			(0.101	)		0.019			2.810			(0.491	)		0.919			1.948			0.817
Sale of Subsidiary/Transfer of Assets
Under Administration (1) (2)		-			-			-			-			-			-			(1.095	)		(0.273	)		(0.004	)		-			-			-
Balance at End-of-Qtr	$	22.193		$	25.096		$	26.044		$	29.073		$	30.859		$	31.375		$	30.680		$	34.387		$	35.471		$	38.720		$	42.509		$	44.673
Institutional Fixed - Bal-Beg-of-Qtr	$	7.237		$	7.605		$	7.753		$	8.077		$	8.399		$	9.028		$	9.906		$	7.906		$	9.960		$	11.002		$	11.769		$	12.219
Inflows		0.592			0.126			0.556			0.663			0.806			1.281			0.947			2.100			1.211			1.289			0.840			0.937
Withdrawals/Terminations		(0.308	)		(0.188	)		(0.226	)		(0.503	)		(0.218	)		(0.135	)		(0.163	)		(0.077	)		(0.130	)		(0.742	)		(0.296	)		(0.132	)
Transfers		0.002			0.003			(0.000	)		(0.000	)		0.005			0.002			0.001			0.001			0.000			0.001			0.001			(0.001	)
Net Flows		0.286			(0.059	)		0.330			0.160			0.593			1.148			0.784			2.024			1.082			0.548			0.545			0.803
Market		0.083			0.207			(0.006	)		0.163			0.036			(0.271	)		0.339			0.031			(0.040	)		0.219			(0.095	)		0.019
Sale of Subsidiary (2)		-			-			-			-			-			-			(3.124	)		-			-			-			-			-
Balance at End-of-Qtr	$	7.605		$	7.753		$	8.077		$	8.399		$	9.028		$	9.906		$	7.906		$	9.960		$	11.002		$	11.769		$	12.219		$	13.042
Institutional Equity - Bal-Beg-of-Qtr	$	16.711		$	15.920		$	19.607		$	21.008		$	25.322		$	27.188		$	28.362		$	10.490		$	11.682		$	11.549		$	15.474		$	17.760
Inflows		0.494			0.727			1.386			1.315			1.817			2.049			1.638			0.650			0.576			4.563			1.937			3.280
Withdrawals/Terminations		(0.459	)		(0.381	)		(0.921	)		(0.419	)		(0.762	)		(1.161	)		(1.053	)		(0.607	)		(0.473	)		(1.000	)		(0.888	)		(2.160	)
Transfers		0.008			0.002			0.003			0.005			0.012			0.006			0.010			0.029			0.033			(0.003	)		0.012			0.006
Net Flows		0.044			0.348			0.469			0.901			1.068			0.895			0.595			0.072			0.135			3.560			1.061			1.127
Market		(0.835	)		3.339			0.932			3.413			0.798			0.280			0.196			1.120			(0.269	)		0.365			1.225			0.492
Sale of Subsidiary (2)		-			-			-			-			-			-			(18.664	)		-			-			-			-			-
Balance at End-of-Qtr	$	15.920		$	19.607		$	21.008		$	25.322		$	27.188		$	28.362		$	10.490		$	11.682		$	11.549		$	15.474		$	17.760		$	19.379
Total Institutional - Bal-Beg-of-Qtr	$	23.948		$	23.526		$	27.360		$	29.085		$	33.722		$	36.216		$	38.268		$	18.396		$	21.643		$	22.551		$	27.243		$	29.979
Inflows		1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750			1.787			5.852			2.777			4.217
Withdrawals/Terminations		(0.767	)		(0.568	)		(1.147	)		(0.922	)		(0.980	)		(1.296	)		(1.216	)		(0.684	)		(0.603	)		(1.742	)		(1.183	)		(2.292	)
Transfers		0.010			0.005			0.003			0.005			0.017			0.008			0.011			0.030			0.033			(0.002	)		0.012			0.005
Net Flows		0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095			1.217			4.108			1.606			1.930
Market		(0.752	)		3.546			0.926			3.576			0.834			0.009			0.535			1.151			(0.308	)		0.584			1.130			0.511
Sale of Subsidiary (2)		-			-			-			-			-			-			(21.787	)		-			-			-			-			-
Balance at End-of-Qtr	$	23.526		$	27.360		$	29.085		$	33.722		$	36.216		$	38.268		$	18.396		$	21.643		$	22.551		$	27.243		$	29.979		$	32.420
Total Retail/Inst - At End-of-Qtr	$	45.718		$	52.456		$	55.129		$	62.794		$	67.075		$	69.643		$	49.076		$	56.029		$	58.022		$	65.963		$	72.488		$	77.093
Insurance-related Assets-End-of-Qtr	$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980		$	44.210		$	45.219		$	44.503		$	44.483
Total Retail/Inst - Net Flows	$	0.344		$	0.591		$	1.169		$	1.645		$	2.629		$	2.660		$	1.760		$	3.265		$	2.796		$	6.439		$	3.447		$	3.277
Total Assets Under Management
At End-of-Qtr	$	87.848		$	96.313		$	98.113		$	105.818		$	111.081		$	112.172		$	93.123		$	100.009		$	102.231		$	111.182		$	116.992		$	121.576
Subadvised Assets, included in Assets Under Management above
Retail	$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740		$	12.178		$	13.712		$	15.905		$	17.162
Institutional		0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740			3.921			4.221			4.641			4.782
Total Subadvised Assets	$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480		$	16.100		$	17.933		$	20.545		$	21.945
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively.
(2) In the third quarter of 2004, the Investment Management segment sold its London-based international investment unit. Assets under management transferred as a result of the sale were $22.1 billion. See page 31A for assets under management without the London-based international investment unit. In addition, the London-based international investment unit began subadvising certain retail and institutional assets in the third quarter of 2004.

12/31/2005																												PAGE 31A
Investment Management (excluding Assets
Managed by Delaware's London-based International Investment Unit)
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]
	Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Retail Fixed - Bal-Beg-of-Qtr	$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501		$	8.823		$	9.061
Fund Sales		0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493			0.608			0.612			0.602			0.661
Redemptions		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)		(0.373	)		(0.325	)		(0.346	)		(0.432	)
Net Money Market		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)		(0.010	)		(0.010	)
Transfers		0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)		0.104			(0.107	)		0.023			(0.102	)
Net Flows		0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134			0.314			0.166			0.268			0.117
Market		0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125			(0.068	)		0.156			(0.030	)		0.021
Transfer of Assets Under         Administration (1)		-			-			-			-			-			-			(0.194	)		(0.062	)		(0.001	)		-			-			-
Balance at End-of-Qtr	$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501		$	8.823		$	9.061		$	9.199
Retail Equity - Bal-Beg-of-Qtr	$	14.624		$	14.048		$	16.622		$	17.673		$	20.564		$	22.225		$	22.906		$	22.620		$	26.130		$	26.970		$	29.898		$	33.449
Fund Sales		0.712			0.812			1.048			1.208			1.936			1.664			1.478			2.026			2.773			3.421			2.882			2.497
Redemptions		(0.765	)		(0.608	)		(0.698	)		(0.694	)		(0.979	)		(1.019	)		(1.074	)		(0.953	)		(1.325	)		(1.305	)		(1.198	)		(1.310	)
Transfers		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)		(0.183	)		0.049			(0.111	)		0.042
Net Flows		(0.111	)		0.214			0.462			0.606			0.956			0.641			0.490			1.036			1.265			2.166			1.573			1.229
Market		(0.465	)		2.359			0.589			2.285			0.706			0.039			(0.194	)		2.685			(0.423	)		0.763			1.979			0.796
Transfer of Assets Under        Administration (1)		-			-			-			-			-			-			(0.582	)		(0.211	)		(0.003	)		-			-			-
Balance at End-of-Qtr	$	14.048		$	16.622		$	17.673		$	20.564		$	22.225		$	22.906		$	22.620		$	26.130		$	26.970		$	29.898		$	33.449		$	35.474
Total Retail - Bal-Beg-of-Qtr	$	22.255		$	21.955		$	24.812		$	25.756		$	28.750		$	30.538		$	31.057		$	30.680		$	34.387		$	35.471		$	38.720		$	42.509
Retail Sales-Annuities		0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737			0.735			0.655			0.752			0.815
Retail Sales-Mutual Funds		0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255			1.159			1.110
Retail Sales-Managed Acct. & Other		0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123			1.573			1.232
Total Retail Sales		1.136			1.280			1.491			1.664			2.449			2.115			1.903			2.519			3.381			4.034			3.484			3.158
Redemptions		(1.092	)		(0.926	)		(1.133	)		(1.055	)		(1.396	)		(1.481	)		(1.415	)		(1.252	)		(1.697	)		(1.630	)		(1.545	)		(1.741	)
Net Money Market		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)		(0.010	)		(0.010	)
Transfers		0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)		(0.079	)		(0.058	)		(0.089	)		(0.060	)
Net Flows		0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170			1.579			2.331			1.841			1.347
Market		(0.347	)		2.552			0.569			2.396			0.808			(0.105	)		0.013			2.810			(0.491	)		0.919			1.948			0.817
Transfer of Assets Under        Administration (1)		-			-			-			-			-			-			(0.776	)		(0.273	)		(0.004	)		-			-			-
Balance at End-of-Qtr	$	21.955		$	24.812		$	25.756		$	28.750		$	30.538		$	31.057		$	30.680		$	34.387		$	35.471		$	38.720		$	42.509		$	44.673
Institutional Fixed - Bal-Beg-of-Qtr	$	5.147		$	5.530		$	5.481		$	5.834		$	5.981		$	6.501		$	6.980		$	7.906		$	9.960		$	11.002		$	11.769		$	12.219
Inflows		0.553			0.120			0.516			0.351			0.655			0.776			0.825			2.100			1.211			1.289			0.840			0.937
Withdrawals/Terminations		(0.158	)		(0.152	)		(0.089	)		(0.236	)		(0.138	)		(0.109	)		(0.127	)		(0.077	)		(0.130	)		(0.742	)		(0.296	)		(0.132	)
Transfers		0.002			(0.099	)		(0.056	)		0.028			0.005			0.002			0.001			0.001			0.000			0.001			0.001			(0.001	)
Net Flows		0.397			(0.132	)		0.371			0.143			0.521			0.669			0.699			2.024			1.082			0.548			0.545			0.803
Market		(0.013	)		0.083			(0.019	)		0.004			(0.001	)		(0.191	)		0.227			0.031			(0.040	)		0.219			(0.095	)		0.019
Balance at End-of-Qtr	$	5.530		$	5.481		$	5.834		$	5.981		$	6.501		$	6.980		$	7.906		$	9.960		$	11.002		$	11.769		$	12.219		$	13.042
Institutional Equity - Bal-Beg-of-Qtr	$	7.201		$	7.041		$	8.462		$	8.826		$	10.318		$	10.713		$	10.435		$	10.490		$	11.682		$	11.549		$	15.474		$	17.760
Inflows		0.339			0.347			0.571			0.524			0.552			0.596			0.484			0.650			0.576			4.563			1.937			3.280
Withdrawals/Terminations		(0.182	)		(0.232	)		(0.516	)		(0.231	)		(0.501	)		(0.959	)		(0.361	)		(0.607	)		(0.473	)		(1.000	)		(0.888	)		(2.160	)
Transfers		0.008			0.002			0.003			0.021			(0.012	)		0.073			0.029			0.029			0.033			(0.003	)		0.012			0.006
Net Flows		0.165			0.116			0.059			0.314			0.038			(0.290	)		0.152			0.072			0.135			3.560			1.061			1.127
Market		(0.326	)		1.305			0.305			1.178			0.357			0.012			(0.096	)		1.120			(0.269	)		0.365			1.225			0.492
Balance at End-of-Qtr	$	7.041		$	8.462		$	8.826		$	10.318		$	10.713		$	10.435		$	10.490		$	11.682		$	11.549		$	15.474		$	17.760		$	19.379
Total Institutional - Bal-Beg-of-Qtr	$	12.348		$	12.571		$	13.943		$	14.660		$	16.299		$	17.215		$	17.414		$	18.396		$	21.643		$	22.551		$	27.243		$	29.979
Inflows		0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750			1.787			5.852			2.777			4.217
Withdrawals/Terminations		(0.340	)		(0.385	)		(0.604	)		(0.466	)		(0.640	)		(1.068	)		(0.488	)		(0.684	)		(0.603	)		(1.742	)		(1.183	)		(2.292	)
Transfers		0.010			(0.098	)		(0.053	)		0.049			(0.007	)		0.075			0.030			0.030			0.033			(0.002	)		0.012			0.005
Net Flows		0.562			(0.016	)		0.430			0.457			0.560			0.379			0.851			2.095			1.217			4.108			1.606			1.930
Market		(0.339	)		1.388			0.287			1.182			0.356			(0.179	)		0.131			1.151			(0.308	)		0.584			1.130			0.511
Balance at End-of-Qtr	$	12.571		$	13.943		$	14.660		$	16.299		$	17.215		$	17.414		$	18.396		$	21.643		$	22.551		$	27.243		$	29.979		$	32.420
Total Retail/Inst - At End-of-Qtr	$	34.527		$	38.755		$	40.416		$	45.049		$	47.753		$	48.471		$	49.076		$	56.029		$	58.022		$	65.963		$	72.488		$	77.093
Insurance-related Assets-End-of-Qtr	$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980		$	44.210		$	45.219		$	44.503		$	44.483
Total Retail/Inst - Net Flows	$	0.610		$	0.288		$	0.805		$	1.055		$	1.540		$	1.003		$	1.236		$	3.265		$	2.796		$	6.439		$	3.447		$	3.277
Total Assets Under Management
At End-of-Qtr	$	76.656		$	82.612		$	83.400		$	88.072		$	91.759		$	91.000		$	93.123		$	100.009		$	102.231		$	111.182		$	116.992		$	121.576
Subadvised Assets, included in       Assets Under Management above
Retail	$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740		$	12.178		$	13.712		$	15.905		$	17.162
Institutional		0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740			3.921			4.221			4.641			4.782
Total Subadvised Assets	$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480		$	16.100		$	17.933		$	20.545		$	21.945
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively.
(2) This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

12/31/2005													PAGE 32
Lincoln UK
Income Statements
Unaudited [Millions of Dollars]
For the Year Ended December 31	2001			2002			2003			2004			2005
Operating Revenue
Premiums	$	46.1		$	50.6		$	62.2		$	70.3		$	63.3
Mortality assessments		33.9			32.4			35.7			39.5			34.8
Expense assessments		134.8			105.3			93.9			103.9			111.5
Other revenue and fees		(1.4	)		24.9			18.6			52.8			30.3
Net investment income		64.8			62.1			64.1			75.7			78.6
Total Operating Revenue		278.2			275.4			274.5			342.2			318.4
Operating Expenses
Benefits paid or provided		83.4			84.2			98.6			100.4			116.0
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		10.8			6.1			3.8			2.9			2.3
Operating and administrative expenses		82.5			77.0			78.3			81.0			98.3
Subtotal		93.2			83.1			82.1			83.9			100.6
DAC deferral net of amortization		31.7			46.5			39.1			72.8			45.1
PVIF amortization		22.5			30.8			(10.7	)		18.1			(10.1	)
Total underwriting, acquisition,
insurance and other expenses		147.4			160.5			110.4			174.8			135.7
Goodwill amortization		0.6			-			-			-			-
Total Operating Expenses		231.5			244.7			209.0			275.2			251.7
Operating income before federal taxes		46.8			30.7			65.5			67.0			66.7
Federal income taxes		(11.3	)		(3.9	)		21.9			23.4			23.4
Income from Operations	$	58.1		$	34.6		$	43.6		$	43.5		$	43.4
Effective tax rate		(24.2	%)		(12.8	%)		33.4	%		35.0	%		35.0	%
Average capital	$	593.8		$	549.9		$	478.9		$	435.4		$	446.8
Return on average capital		9.8	%		6.3	%		9.1	%		10.0	%		9.7	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period				$	587.3		$	597.6		$	620.6		$	590.8
Deferral					3.4			3.5			6.3			2.8
Amortization					(50.0	)		(42.5	)		(79.1	)		(47.9	)
Included in Total Operating Expenses					(46.5	)		(39.1	)		(72.8	)		(45.1	)
Foreign currency translation adjustment					56.8			62.1			42.9			(59.5	)
Balance at end of period				$	597.6		$	620.6		$	590.8		$	486.3
Roll Forward of Present Value of In-Force
Balance at beginning of period				$	244.0		$	237.3		$	274.7		$	276.2
Amortization					(30.8	)		10.7			(18.1	)		10.1
Foreign currency translation adjustment					24.1			26.7			19.6			(29.0	)
Balance at end of period				$	237.3		$	274.7		$	276.2		$	257.2
Roll Forward of Deferred Front-End Load*
Balance at beginning of period	$	417.6		$	410.0		$	428.2		$	457.9		$	437.5
Deferral		33.4			16.7			10.4			6.6			4.2
Amortization		(30.4	)		(38.7	)		(26.4	)		(58.7	)		(34.8	)
Included in Income from Operations		3.0			(22.0	)		(16.0	)		(52.1	)		(30.6	)
Foreign currency translation adjustment		(10.6	)		40.2			45.8			31.7			(43.9	)
Balance at end of period	$	410.0		$	428.2		$	457.9		$	437.5		$	363.1
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

12/31/2005																									PAGE 33
Lincoln UK
Income Statements
Unaudited [Millions of Dollars]
For the Quarter Ended	Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2004			2004			2004			2004			2005			2005			2005			2005
Operating Revenue
Premiums	$	19.3		$	18.1		$	19.6		$	17.7		$	14.9		$	14.6		$	16.4		$	16.9		$	15.4
Mortality assessments		8.7			9.6			10.4			9.7			9.8			9.0			9.4			9.0			7.3
Expense assessments		24.6			24.2			24.4			27.0			28.3			26.6			27.9			27.9			29.1
Other revenue and fees		9.6			5.8			8.3			22.8			16.0			4.1			5.2			28.1			(7.1	)
Net investment income		16.2			18.5			18.3			18.7			20.2			20.3			19.6			20.9			17.8
Total Operating Revenue		78.4			76.1			81.0			95.8			89.3			74.6			78.4			102.8			62.5
Operating Expenses
Benefits paid or provided		33.3			29.0			28.8			21.4			21.3			25.1			27.9			35.5			27.5
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related       expenses		0.8			0.6			0.6			0.7			1.0			0.6			0.7			0.9			0.1
Operating and administrative expenses		20.0			23.0			22.3			21.6			14.1			25.4			23.8			24.9			24.2
Subtotal		20.8			23.5			22.9			22.4			15.1			25.9			24.5			25.8			24.3
DAC deferral net of amortization		13.1			11.0			12.6			27.2			21.9			7.1			8.4			37.0			(7.4	)
PVIF amortization		(7.3	)		3.0			0.1			9.4			5.6			1.0			1.7			(10.2	)		(2.5	)
Total underwriting, acquisition,
insurance and other expenses		26.6			37.6			35.7			59.0			42.5			34.0			34.7			52.7			14.3
Total Operating Expenses		59.9			66.6			64.5			80.3			63.8			59.2			62.6			88.1			41.8
Operating income before federal income taxes		18.5			9.5			16.5			15.5			25.5			15.5			15.9			14.7			20.7
Federal income taxes		5.4			3.3			5.8			5.4			8.9			5.4			5.6			5.1			7.2
Income from Operations	$	13.0		$	6.2		$	10.7		$	10.1		$	16.6		$	10.0		$	10.3		$	9.6		$	13.5
Effective tax rate on
Income from Operations		29.5	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
Average capital	$	443.1		$	447.9		$	421.2		$	432.5		$	439.9		$	440.2		$	446.4		$	452.7		$	447.8
Return on average capital		11.8	%		5.5	%		10.2	%		9.3	%		15.1	%		9.1	%		9.2	%		8.4	%		12.0	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	590.9		$	620.7		$	629.6		$	608.6		$	578.9		$	590.9		$	576.9		$	537.0		$	492.0
Deferral		1.6			1.5			1.8			1.4			1.6			0.7			0.7			0.7			0.7
Amortization		(14.7	)		(12.5	)		(14.4	)		(28.6	)		(23.5	)		(7.8	)		(9.1	)		(37.7	)		6.7
Included in Total Operating Expenses		(13.1	)		(11.0	)		(12.6	)		(27.2	)		(21.9	)		(7.1	)		(8.4	)		(37.0	)		7.4
Foreign currency translation adjustment		42.8			19.9			(8.4	)		(2.5	)		33.8			(7.0	)		(31.4	)		(8.0	)		(13.2	)
Balance at end of period	$	620.7		$	629.6		$	608.6		$	578.9		$	590.9		$	576.9		$	537.0		$	492.0		$	486.3
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	249.0		$	274.7		$	280.5		$	276.7		$	266.2		$	276.1		$	271.9		$	255.3		$	261.5
Amortization		7.3			(3.0	)		(0.1	)		(9.4	)		(5.6	)		(1.0	)		(1.7	)		10.2			2.5
Foreign currency translation adjustment		18.4			8.9			(3.7	)		(1.1	)		15.6			(3.3	)		(14.8	)		(4.1	)		(6.9	)
Balance at end of period	$	274.7		$	280.5		$	276.7		$	266.2		$	276.1		$	271.9		$	255.3		$	261.5		$	257.2
Roll Forward of Deferred Front-End Load
Balance at beginning of period	$	434.8		$	457.9		$	466.9		$	452.5		$	428.0		$	437.5		$	428.3		$	399.8		$	365.8
Deferral		2.2			2.1			1.7			1.4			1.3			1.5			1.1			0.9			0.7
Amortization		(10.6	)		(7.8	)		(9.9	)		(24.1	)		(16.8	)		(5.5	)		(6.2	)		(29.0	)		6.0
Included in Income from Operations		(8.5	)		(5.7	)		(8.2	)		(22.7	)		(15.5	)		(4.0	)		(5.1	)		(28.1	)		6.7
Foreign currency translation adjustment		31.5			14.7			(6.2	)		(1.8	)		25.0			(5.2	)		(23.3	)		(5.9	)		(9.5	)
Balance at end of period	$	457.9		$	466.9		$	452.5		$	428.0		$	437.5		$	428.3		$	399.8		$	365.8		$	363.1
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

12/31/2005																												PAGE 34
Lincoln UK
Operational Data
Unaudited [Billions of Dollars]
For the Year Ended December 31																						2001			2002			2003			2004			2005
Unit Linked Assets -     Beg-of-Year																						$ 6.441			$ 5.607			$ 5.079			$ 6.390			$ 7.186
Deposits																						0.481			0.453			0.392			0.378			0.389
Withdrawals (incl. chgs)        & Deaths																						(0.529)			(0.519)			(0.614)			(0.712)			(0.728)
Net Flows																						(0.048)			(0.066)			(0.222)			(0.335)			(0.339)
Inv Inc & Chg in Mkt Val																						(0.617)			(1.004)			0.918			0.648			1.243
Foreign Currency Adjustment																						(0.169)			0.542			0.616			0.482			(0.770)
Unit Linked Assets      - end of year																						$ 5.607			$ 5.079			$ 6.390			$ 7.186			$ 7.320
Individual Life In-force																						$ 20.878			$ 18.896			$ 20.393			$ 20.378			$17.521
Exchange Rate - Dollars to Pounds
For-the-Period																						1.441			1.503			1.638			1.834			1.821
End-of-Period																						1.456			1.610			1.786			1.919			1.719
For the Quarter Ended	Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Unit Linked Assets
Balance-Beg-of-Quarter	$	5.079		$	4.748		$	5.468		$	5.692		$	6.390		$	6.528		$	6.476		$	6.468		$	7.186		$	7.173		$	6.903		$	7.180
Deposits		0.094			0.090			0.113			0.095			0.083			0.085			0.102			0.108			0.075			0.070			0.088			0.156
Withdrawals (incl. chgs)         & Deaths		(0.153	)		(0.137	)		(0.152	)		(0.172	)		(0.172	)		(0.177	)		(0.175	)		(0.188	)		(0.175	)		(0.183	)		(0.192	)		(0.178	)
Net Flows		(0.059	)		(0.047	)		(0.039	)		(0.077	)		(0.090	)		(0.092	)		(0.074	)		(0.080	)		(0.100	)		(0.113	)		(0.104	)		(0.023	)
Inv Inc & Chg in Mkt Val		(0.184	)		0.549			0.205			0.348			0.020			0.127			0.091			0.411			0.171			0.233			0.492			0.347
Foreign Currency Adjustment		(0.087	)		0.218			0.059			0.427			0.207			(0.087	)		(0.025	)		0.387			(0.085	)		(0.390	)		(0.111	)		(0.184	)
Unit Linked Assets -     End-of-Quarter	$	4.748		$	5.468		$	5.692		$	6.390		$	6.528		$	6.476		$	6.468		$	7.186		$	7.173		$	6.903		$	7.180		$	7.320
Individual Life In-force	$	18.512		$	19.138		$	19.258		$	20.393		$	20.522		$	19.846		$	19.380		$	20.378		$	19.820		$	18.479		$	18.175		$	17.521
Exchange Rate -    Dollars to Pounds
For-the-Quarter		1.605			1.618			1.615			1.714			1.836			1.814			1.813			1.875			1.904			1.855			1.779			1.747
End-of-Quarter		1.580			1.656			1.664			1.786			1.844			1.819			1.812			1.919			1.896			1.792			1.764			1.719

12/31/2005																									PAGE 35
Other Operations
Unaudited [Millions of Dollars]
For the Year Ended December 31													2001			2002			2003			2004			2005
Operating Revenue by Source:
Lincoln Financial Advisors													$	360.7		$	318.0		$	316.9		$	383.6		$	514.0
Lincoln Financial Distributors														113.4			127.3			140.9			245.2			290.7
Total Distribution														474.0			445.4			457.8			628.8			804.7
Reinsurance														1,699.4			-			-			-			-
Amortization of deferred gain on indemnity reinsurance*														20.4			75.2			72.3			87.0			75.7
Other [Including
Consolidating Adjustments]														(377.9	)		(165.6	)		(245.8	)		(380.7	)		(528.3	)
Total Operating Revenue													$	1,815.9		$	355.0		$	284.2		$	335.1		$	352.1
Income (Loss) from Operations by Source:
Lincoln Financial Advisors													$	(20.1	)	$	(31.4	)	$	(33.2	)	$	(17.8	)	$	(13.2	)
Lincoln Financial Distributors														(33.2	)		(35.2	)		(33.4	)		(23.7	)		(22.8	)
Total Distribution														(53.3	)		(66.6	)		(66.6	)		(41.5	)		(36.1	)
Reinsurance														128.8			-			-			-			-
Amortization of deferred gain on indemnity         reinsurance*														12.9			48.9			47.0			56.5			49.2
LNC Financing														(77.9	)		(43.0	)		(56.7	)		(61.0	)		(57.6	)
Other Corporate(1)														(9.5	)		3.5			(5.4	)		(11.3	)		46.3
Income (Loss) from Operations													$	1.0		$	(57.2	)	$	(81.8	)	$	(57.2	)	$	1.8
		Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
For the Quarter Ended		2003			2004			2004			2004			2004			2005			2005			2005			2005
Operating Revenue by Source:
Lincoln Financial Advisors	$	95.5		$	92.0		$	96.0		$	91.7		$	103.9		$	128.1		$	125.2		$	124.5		$	136.2
Lincoln Financial Distributors		43.9			57.5			58.4			59.9			69.4			63.5			68.9			73.2			85.1
Total Distribution		139.5			149.6			154.4			151.6			173.2			191.6			194.1			197.7			221.3
Amortization of deferred gain on
indemnity reinsurance*		17.4			17.9			17.9			32.1			19.1			18.9			18.9			18.9			18.9
Other [Including
Consolidating Adjustments]		(93.1	)		(111.3	)		(66.8	)		(91.2	)		(111.3	)		(136.7	)		(117.8	)		(122.8	)		(151.0	)
Total Operating Revenue	$	63.7		$	56.1		$	105.5		$	92.4		$	81.1		$	73.8		$	95.2		$	93.8		$	89.2
Income from Operations by Source:
Lincoln Financial Advisors	$	(8.0	)	$	(8.7	)	$	(5.3	)	$	(3.5	)	$	(0.3	)	$	(7.6	)	$	(4.4	)	$	(4.4	)	$	3.2
Lincoln Financial Distributors		(7.1	)		(4.6	)		(6.4	)		(6.3	)		(6.3	)		(6.0	)		(5.4	)		(7.9	)		(3.5	)
Total Distribution		(15.1	)		(13.3	)		(11.8	)		(9.8	)		(6.6	)		(13.6	)		(9.8	)		(12.3	)		(0.3	)
Amortization of deferred gain on
indemnity reinsurance*		11.3			11.6			11.7			20.8			12.4			12.3			12.3			12.3			12.3
LNC Financing		(13.7	)		(14.6	)		(15.7	)		(16.0	)		(14.6	)		(14.6	)		(14.5	)		(14.2	)		(14.4	)
Other Corporate(1)		(3.4	)		(4.0	)		(4.8	)		(5.0	)		2.5			4.7			21.1			11.3			9.1
Income(Loss) from Operations	$	(20.8	)	$	(20.3	)	$	(20.7	)	$	(9.9	)	$	(6.3	)	$	(11.3	)	$	9.2		$	(2.9	)	$	6.7
* Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.
(1)Includes a reduction of the valuation allowance on the deferred tax asset of our foreign life reinsurance subsidiary of $5.7 million in the 1st quarter of 2005, $23.5 million in the 2nd quarter of 2005, $13.3 million in the 3rd quarter of 2005, $4.3 million in the 4th quarter of 2005, $46.8 million for full year 2005 and $4.4 million for the fourth quarter of 2004.

3/31/2005																									PAGE 36
Restructuring Charges (After-tax)
Unaudited [Millions of Dollars]
For the Year Ended December 31													2001			2002			2003			2004			2005
Lincoln Retirement													$	(1.3	)	$	(1.0	)	$	(13.1	)	$	(3.5	)	$	(11.3	)
Life Insurance														(3.5	)		-			(12.7	)		(3.1	)		(3.1	)
Investment Management														(0.4	)		0.3			(4.6	)		(0.8	)		0.2
Lincoln UK														-			1.7			-			-			-
Corporate & Other														(19.5	)		1.1			(4.7	)		(6.4	)		(4.9	)
Total													$	(24.7	)	$	2.0		$	(35.0	)	$	(13.9	)	$	(19.1	)
For the quarter ended		Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
		2003			2004			2004			2004			2004			2005			2005			2005			2005
Lincoln Retirement	$	(3.6	)	$	(1.2	)	$	(1.2	)	$	(1.7	)	$	0.5		$	(0.4	)	$	(10.0	)	$	(0.2	)	$	(0.7	)
Life Insurance		(2.7	)		(1.8	)		(0.4	)		(0.6	)		(0.4	)		(0.6	)		(2.4	)		(0.1	)		0.0
Investment Management		(1.1	)		(1.0	)		(0.0	)		(0.0	)		0.2			-			0.2			-			-
Lincoln UK		-			-			-			-			-			-			-			-			-
Corporate & Other		(2.4	)		(3.6	)		(1.9	)		(0.7	)		(0.3	)		(0.2	)		(2.8	)		(1.5	)		(0.4	)
Total	$	(9.8	)	$	(7.5	)	$	(3.5	)	$	(2.9	)	$	(0.0	)	$	(1.3	)	$	(15.0	)	$	(1.8	)	$	(1.1	)

12/31/2005																															PAGE 37
Consolidated Domestic Deposits/Account Balances
Unaudited [Billions of Dollars]
																						2001			2002			2003			2004			2005
Deposits - For the Year
Lincoln Retirement -     Fixed Annuities																						$ 3.342			$ 3.672			$ 3.125			$ 3.110			$ 2.947
Lincoln Retirement -    Variable Products(1)																						3.067			2.743			3.119			5.910			7.362
Lincoln Retirement -     Life Insurance																						0.012			-			-			-			-
Life Insurance Segment -    Life Insurance																						1.934			2.138			2.259			2.243			2.240
Inv Mgmt - Annuities																						1.701			2.751			2.151			2.757			2.957
Inv Mgmt - Mutual Funds																						1.523			1.829			2.315			3.235			4.860
Inv Mgmt - Managed Acct.      & Other																						0.469			1.115			1.116			2.999			6.239
Consolidating Adjustments																						(0.608)			(1.576)			(0.864)			(0.975)			(1.111)
Total Gross       Retail Deposits																						11.439			12.671			13.222			19.280			25.494
Investment Management Segment- Instit.																						3.826			5.194			5.859			11.289			14.633
Consolidating Adjustments																						(0.207)			(0.232)			(0.150)			(0.089)			(0.086)
Total Gross Deposits																						$ 15.058			$ 17.634			$ 18.931			$ 30.479			$ 40.041
Account Balances -    End of Year
Lincoln Retirement -     Fixed Annuities																						$ 16.491			$ 18.085			$ 18.868			$ 19.268			$ 18.856
Lincoln Retirement -    Variable Products(1)																						34.638			27.438			35.786			43.223			51.373
Lincoln Retirement -    Life Insurance																						0.149			-			-			-			-
Life Insurance Segment -     Life Insurance																						11.377			12.086			13.420			14.382			15.368
Inv Mgmt - Annuities																						11.835			9.981			12.691			14.494			16.103
Inv Mgmt - Mutual Funds																						11.554			10.296			12.614			13.251			15.679
Inv Mgmt - Managed Acct.     & Other																						1.719			2.270			3.768			6.642			12.893
Consolidating Adjustments																						(6.676)			(5.123)			(6.553)			(7.476)			(8.269)
Total Retail Account       Balances																						81.088			75.033			90.593			103.784			122.004
Investment Management Segment- Instit.																						23.305			23.948			33.722			21.643			32.420
Consolidating Adjustments																						(1.211)			(0.924)			(1.183)			(1.248)			(1.166)
Total Account Balances																						$ 103.181			$ 98.057			$ 123.132			$ 124.179			$153.258
	Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
	2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Deposits - For the Quarter
Lincoln Retirement -    Fixed Annuities	$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732		$	0.740		$	0.793		$	0.718		$	0.696
Lincoln Retirement -    Variable Products(1)		0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899			1.736			1.785			1.942
Life Insurance Segment -     Life Insurance		0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512			0.527			0.553			0.648
Inv Mgmt - Annuities		0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737			0.735			0.655			0.752			0.815
Inv Mgmt - Mutual Funds		0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255			1.159			1.110
Inv Mgmt - Managed Acct.     & Other		0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123			1.573			1.232
Consolidating Adjustments		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)		(0.282	)		(0.230	)		(0.343	)		(0.255	)
Total Gross Retail       Deposits		2.880			2.960			3.370			4.012			4.905			4.648			4.436			5.290			6.249			6.859			6.197			6.188
Investment Management Segment- Instit.		1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750			1.787			5.852			2.777			4.217
Consolidating Adjustments		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)		(0.015	)		(0.034	)		(0.017	)		(0.020	)
Total Gross Deposits	$	3.913		$	3.788		$	5.288		$	5.943		$	7.509		$	7.945		$	6.988		$	8.038		$	8.021		$	12.677		$	8.958		$	10.386
Account Balances -    End of Quarter
Lincoln Retirement -    Fixed Annuities	$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084		$	19.141		$	19.062		$	18.856
Lincoln Retirement -   Variable Products(1)		26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223			43.673			45.751			48.731			51.373
Life Insurance Segment -    Life Insurance		12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382			14.466			14.691			15.001			15.368
Inv Mgmt - Annuities		9.660			11.002			11.392			12.691			13.294			13.355			13.074			14.494			14.356			14.844			15.658			16.103
Inv Mgmt - Mutual Funds		10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251			13.478			14.385			15.173			15.679
Inv Mgmt - Managed Acct.     & Other		2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642			7.638			9.492			11.679			12.893
Consolidating Adjustments		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)		(7.758	)		(8.025	)		(7.967	)		(8.269	)
Total Retail Account       Balances		74.546			81.283			83.787			90.593			94.133			95.860			95.393			103.784			104.936			110.278			117.337			122.004
Investment Management Segment- Instit.		23.526			27.360			29.085			33.722			36.216			38.268			18.396			21.643			22.551			27.243			29.979			32.420
Consolidating Adjustments		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)		(1.166	)		(1.198	)		(1.163	)		(1.166	)
Total Account Balances	$	97.140		$	107.595		$	111.828		$	123.132		$	129.173		$	132.961		$	112.649		$	124.179		$	126.321		$	136.323		$	146.154		$	153.258
Total Domestic Net Flows
Unaudited [Billions of Dollars]
For the Year																							2001			2002			2003			2004			2005
Lincoln Retirement(1)																						$	0.105		$	0.453		$	1.007		$	2.922		$	2.887
Life Insurance Segment																							1.163			1.320			1.377			1.247			1.356
Investment Management    Segment- Retail																							(0.375	)		0.806			1.271			3.136			7.098
Consolidating Adjustments																							0.035			(0.082	)		0.064			0.030			(0.133	)
Total Retail Net Flows																							0.927			2.496			3.719			7.335			11.207
Investment Management Segment- Institutional																							(0.231	)		2.106			2.478			7.178			8.861
Consolidating Adjustments																							(0.015	)		0.005			(0.002	)		0.031			0.170
Total Net Flows																						$	0.681		$	4.608		$	6.195		$	14.545		$	20.238
		Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
For the Quarter		2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Lincoln Retirement(1)	$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794		$	0.776		$	0.857		$	0.633		$	0.621
Life Insurance Segment		0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408			0.260			0.309			0.337			0.450
Investment Management    Segment- Retail		0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170			1.579			2.331			1.841			1.347
Consolidating Adjustments		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154			(0.021	)		0.006			(0.049	)		(0.069	)
Total Retail Net Flows		0.568			0.723			0.965			1.464			1.832			1.669			1.308			2.527			2.593			3.504			2.762			2.348
Investment Management     Segment- Instit.		0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095			1.217			4.108			1.606			1.930
Consolidating Adjustments		(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000			0.040			0.008			0.031			0.090
Total Net Flows	$	0.868		$	1.021		$	1.799		$	2.508		$	3.530		$	3.710		$	2.682		$	4.622		$	3.851		$	7.619		$	4.399		$	4.368
(1) Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.
Amounts for the Investment Management segment exclude amounts reported as Assets Under Management - Insurance-related Assets.

12/31/2005																															PAGE 37A
Consolidated Domestic Deposits/Account Balances (excluding Assets
Managed by Delaware's London-based International Investment Unit)
Unaudited [Billions of Dollars]
																						2001			2002			2003			2004			2005
Deposits - For the Year
Lincoln Retirement - Fixed Annuities																						$	3.342		$	3.672		$	3.125		$	3.110		$	2.947
Lincoln Retirement - Variable Products(1)																							3.067			2.743			3.119			5.910			7.362
Lincoln Retirement - Life Insurance																							0.012			-			-			-			-
Life Insurance Segment - Life Insurance																							1.934			2.138			2.259			2.243			2.240
Inv Mgmt - Annuities																							1.701			2.456			2.140			2.752			2.957
Inv Mgmt - Mutual Funds																							1.523			1.829			2.315			3.235			4.860
Inv Mgmt - Managed Acct. & Other																							0.469			1.115			1.116			2.999			6.239
Consolidating Adjustments																							(0.608	)		(1.576	)		(0.864	)		(0.975	)		(1.111	)
Total Gross Retail Deposits																							11.439			12.376			13.210			19.274			25.494
Investment Management Segment- Instit.																							1.943			3.709			3.320			6.637			14.633
Consolidating Adjustments																							(0.207	)		(0.232	)		(0.150	)		(0.089	)		(0.086	)
Total Gross Deposits																						$	13.175		$	13.175		$	16.380		$	25.822		$	40.041
Account Balances - End of Year
Lincoln Retirement - Fixed Annuities																						$	16.491		$	18.085		$	18.868		$	19.268		$	18.856
Lincoln Retirement - Variable Products(1)																							34.638			27.438			35.786			43.223			51.373
Lincoln Retirement - Life Insurance																							0.149			-			-			-			-
Life Insurance Segment - Life Insurance																							11.377			12.086			13.420			14.382			15.368
Inv Mgmt - Annuities																							11.835			9.688			12.368			14.494			16.103
Inv Mgmt - Mutual Funds																							11.554			10.296			12.614			13.251			15.679
Inv Mgmt - Managed Acct. & Other																							1.719			2.270			3.768			6.642			12.893
Consolidating Adjustments																							(6.676	)		(5.123	)		(6.553	)		(7.476	)		(8.269	)
Total Retail Account Balances																							81.088			74.741			90.271			103.784			122.004
Investment Management Segment- Instit.																							11.562			12.348			16.299			21.643			32.420
Consolidating Adjustments																							(1.211	)		(0.924	)		(1.183	)		(1.248	)		(1.166	)
Total Account Balances																						$	91.439		$	86.165		$	105.387		$	124.179		$	153.258
		Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
		2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732		$	0.740		$	0.793		$	0.718		$	0.696
Lincoln Retirement - Variable Products(1)		0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899			1.736			1.785			1.942
Life Insurance Segment - Life Insurance		0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512			0.527			0.553			0.648
Inv Mgmt - Annuities		0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737			0.735			0.655			0.752			0.815
Inv Mgmt - Mutual Funds		0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255			1.159			1.110
Inv Mgmt - Managed Acct. & Other		0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123			1.573			1.232
Consolidating Adjustments		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)		(0.282	)		(0.230	)		(0.343	)		(0.255	)
Total Gross Retail Deposits		2.875			2.958			3.367			4.010			4.903			4.646			4.435			5.290			6.249			6.859			6.197			6.188
Investment Management Segment- Instit.		0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750			1.787			5.852			2.777			4.217
Consolidating Adjustments		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)		(0.015	)		(0.034	)		(0.017	)		(0.020	)
Total Gross Deposits	$	3.714		$	3.400		$	4.430		$	4.837		$	6.090		$	5.983		$	5.711		$	8.038		$	8.021		$	12.677		$	8.958		$	10.386
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084		$	19.141		$	19.062		$	18.856
Lincoln Retirement - Variable Products(1)		26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223			43.673			45.751			48.731			51.373
Life Insurance Segment - Life Insurance		12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382			14.466			14.691			15.001			15.368
Inv Mgmt - Annuities		9.423			10.718			11.104			12.368			12.973			13.037			13.074			14.494			14.356			14.844			15.658			16.103
Inv Mgmt - Mutual Funds		10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251			13.478			14.385			15.173			15.679
Inv Mgmt - Managed Acct. & Other		2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642			7.638			9.492			11.679			12.893
Consolidating Adjustments		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)		(7.758	)		(8.025	)		(7.967	)		(8.269	)
Total Retail Account Balances		74.309			80.999			83.499			90.271			93.812			95.542			95.393			103.784			104.936			110.278			117.337			122.004
Investment Management Segment- Instit.		12.571			13.943			14.660			16.299			17.215			17.414			18.396			21.643			22.551			27.243			27.243			32.420
Consolidating Adjustments		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)		(1.166	)		(1.198	)		(1.163	)		(1.166	)
Total Account Balances	$	85.948		$	93.894		$	97.115		$	105.387		$	109.851		$	111.789		$	112.649		$	124.179		$	126.321		$	136.323		$	143.417		$	153.258
Total Domestic Net Flows (excluding Assets
Managed by Delaware's London-based International Investment Unit)
For the Year																							2001			2002			2003			2004			2005
Lincoln Retirement(1)																							0.105			0.453			1.007			2.922			2.887
Life Insurance Segment																							1.163			1.320			1.377			1.247			1.356
Investment Management Segment- Retail																							(0.375	)		0.517			1.325			3.160			7.098
Consolidating Adjustments																							0.035			(0.082	)		0.064			0.030			(0.133	)
Total Retail Net Flows																							0.927			2.207			3.773			7.359			11.207
Investment Management Segment- Institutional																							(0.925	)		1.885			1.433			3.884			8.861
Consolidating Adjustments																							(0.015	)		0.005			(0.002	)		0.031			0.170
Total Net Flows																						$	(0.013	)	$	4.097		$	5.203		$	11.274		$	20.238
		Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
For the Quarter		2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Lincoln Retirement(1)	$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794		$	0.776		$	0.857		$	0.633		$	0.621
Life Insurance Segment		0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408			0.260			0.309			0.337			0.450
Investment Management Segment- Retail		0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170			1.579			2.331			1.841			1.347
Consolidating Adjustments		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154			(0.021	)		0.006			(0.049	)		(0.069	)
Total Retail Net Flows		0.602			0.725			0.970			1.478			1.843			1.676			1.313			2.527			2.593			3.504			2.762			2.348
Investment Management Segment- Instit.		0.562			(0.016	)		0.430			0.457			0.560			0.379			0.850			2.095			1.217			4.108			1.606			1.930
Consolidating Adjustments		(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000			0.040			0.008			0.031			0.090
Total Net Flows	$	1.134		$	0.718		$	1.435		$	1.918		$	2.441		$	2.054		$	2.157		$	4.622		$	3.851		$	7.619		$	4.399		$	4.368
(1) Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.
This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.
Amounts for the Investment Management segment exclude amounts reported as Assets Under Management - Insurance-related Assets.

12/31/2005																			PAGE 38
Consolidated Investment Data - Assets Managed
Unaudited [Billions of Dollars]
For the Year Ended December 31															2001		2002		2003		2004		2005
Assets Managed by Source
LNC's Investments and Cash
Fixed maturity securities - available         for sale															$ 28.346		$ 32.767		$ 32.769		$ 34.701		$ 33.443
Equity securities - available for sale															0.470		0.337		0.199		0.161		0.145
Trading securities															-		-		3.120		3.237		3.246
Other investments															7.297		6.895		6.689		6.408		6.334
Total LNC Investments															36.113		40.000		42.778		44.507		43.168
Separate accounts															44.833		36.178		46.565		55.205		63.747
Cash and invested cash															3.095		1.691		1.711		1.662		2.312
Total LNC															84.042		77.869		91.054		101.374		109.227
Non-affiliate assets managed															38.421		38.052		49.587		42.966		62.491
Total Assets Managed															$ 122.463		$ 115.921		$ 140.641		$ 144.340		$ 171.718
Assets Managed by Advisor
Investment Management segment															$ 48.412		$ 46.495		$ 62.794		$ 56.029		$ 77.093
(See page 30 for additional detail)
DLIA-Corp															38.119		41.104		43.024		43.980		44.483
(Assets managed internally-see page 30)
Lincoln UK															6.847		6.351		7.668		8.599		8.562
Policy Loans (within business units)															1.940		1.946		1.924		1.871		1.862
Non-LNC Affiliates															27.145		20.026		25.231		33.862		39.718
Total Assets Managed															$ 122.463		$ 115.921		$ 140.641		$ 144.340		$171.718
	Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec
For the Quarter Ended	2003		2003		2003		2003		2004		2004		2004		2004		2005		2005		2005		2005
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701	$	34.225	$	34.975	$	34.325	$	33.443
Equity securities - available for sale		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161		0.155		0.155		0.152		0.145
Trading securities		-		-		-		3.120		3.191		3.088		3.224		3.237		3.207		3.345		3.287		3.246
Other investments		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408		6.396		6.389		6.322		6.334
Total LNC Investments		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507		43.982		44.863		44.085		43.168
Separate accounts		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205		55.387		57.240		60.812		63.747
Cash and invested cash		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662		1.499		1.659		1.602		2.312
Total LNC		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374		100.868		103.762		106.498		109.227
Non-affiliate assets managed		37.501		42.917		45.176		49.587		54.977		57.361		37.060		42.966		44.618		52.199		58.473		62.491
Total Assets Managed	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340	$	145.487	$	155.961	$	164.972	$	171.718
Assets Managed by Advisor
Investment Management segment	$	45.718	$	52.456	$	55.129	$	62.794	$	67.075	$	69.643	$	49.076	$	56.029	$	58.022	$	65.963	$	72.488	$	77.093
(See page 31 for additional detail)
DLIA-Corp		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980		44.210		45.219		44.503		44.483
(Assets managed internally-see page 31)
Lincoln UK		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599		8.578		8.278		8.518		8.562
Policy Loans (within business units)		1.929		1.920		1.910		1.924		1.877		1.871		1.872		1.871		1.860		1.867		1.856		1.862
Non-LNC Affiliates		19.181		22.439		23.933		25.231		28.497		29.476		29.877		33.862		32.816		34.635		37.605		39.718
Total Assets Managed	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340	$	145.487	$	155.961	$	164.972	$	171.718

12/31/2005																					PAGE 38A
Consolidated Investment Data - Assets Managed (excluding Assets
Managed by Delaware's London-based International Investment Unit)
Unaudited [Billions of Dollars]
For the Year Ended December 31															2001		2002		2003		2004		2005
Assets Managed by Source
LNC's Investments and Cash
Fixed maturity securities - available         for sale															$	28.346	$	32.767	$	32.769	$	34.701	$	33.443
Equity securities - available for sale																0.470		0.337		0.199		0.161		0.145
Trading securities																-		-		3.120		3.237		3.246
Other investments																7.297		6.895		6.689		6.408		6.334
Total LNC Investments																36.113		40.000		42.778		44.507		43.168
Separate accounts																44.833		36.178		46.565		55.205		63.747
Cash and invested cash																3.095		1.691		1.711		1.662		2.312
Total LNC																84.042		77.869		91.054		101.374		109.227
Non-affiliate assets managed																26.679		26.159		31.842		42.966		62.491
Total Assets Managed															$	110.721	$	104.028	$	122.896	$	144.340	$	171.718
Assets Managed by Advisor
Investment Management segment															$	36.670	$	34.602	$	45.049	$	56.029	$	77.093
(See page 30A for additional detail)
DLIA-Corp																38.119		41.104		43.024		43.980		44.483
(Assets managed internally-see          page 30A)
Lincoln UK																6.847		6.351		7.668		8.599		8.562
Policy Loans (within business units)																1.940		1.946		1.924		1.871		1.862
Non-LNC Affiliates																27.145		20.026		25.231		33.862		39.718
Total Assets Managed															$	110.721	$	104.028	$	122.896	$	144.340	$	171.718
		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec
For the Quarter Ended		2003		2003		2003		2003		2004		2004		2004		2004		2005		2005		2005		2005
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701	$	34.225	$	34.975	$	34.325	$	33.443
Equity securities - available for sale		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161		0.155		0.155		0.152		0.145
Trading securities		-		-		-		3.120		3.191		3.088		3.224		3.237		3.207		3.345		3.287		3.246
Other investments		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408		6.396		6.389		6.322		6.334
Total LNC Investments		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507		43.982		44.863		44.085		43.168
Separate accounts		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205		55.387		57.240		60.812		63.747
Cash and invested cash		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662		1.499		1.659		1.602		2.312
Total LNC		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374		100.868		103.762		106.498		109.227
Non-affiliate assets managed		26.309		29.216		30.463		31.842		35.655		36.190		37.060		42.966		44.618		52.199		58.473		62.491
Total Assets Managed	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340	$	145.486	$	155.961	$	164.972	$	171.718
Assets Managed by Advisor
Investment Management segment	$	34.527	$	38.755	$	40.416	$	45.049	$	47.753	$	48.471	$	49.076	$	56.029	$	58.022	$	65.963	$	72.488	$	77.093
(See page 31A for additional detail)
DLIA-Corp		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980		44.210		45.219		44.503		44.483
(Assets managed internally-see          page 31A)
Lincoln UK		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599		8.578		8.278		8.518		8.562
Policy Loans (within business units)		1.929		1.920		1.910		1.924		1.877		1.871		1.872		1.871		1.860		1.867		1.856		1.862
Non-LNC Affiliates		19.181		22.439		23.933		25.231		28.497		29.476		29.878		33.862		32.816		34.635		37.605		39.718
Total Assets Managed	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340	$	145.486	$	155.961	$	164.972	$	171.718
NOTE: This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

12/31/2005																									PAGE 39
Consolidated Investment Data
Unaudited [Millions of Dollars]
For the Year Ended December 31													2001			2002			2003			2004			2005
Net Investment Income
Fixed maturity AFS securities													$	2,121.0		$	2,117.0		$	2,113.2		$	2,005.7		$	2,030.5
Equity AFS securities														17.6			15.4			12.3			10.9			9.6
Trading securities														-			-			46.5			193.5			193.7
Mortgage loans on real estate														374.5			356.8			338.3			350.1			287.6
Real estate														49.5			47.4			43.9			26.9			50.1
Policy loans														125.3			134.5			123.2			119.8			118.4
Invested cash														68.4			37.6			7.8			32.2			63.0
Other investments														69.4			16.3			48.8			55.3			61.1
Investment revenue														2,825.9			2,725.0			2,734.0			2,794.4			2,813.9
Investment expense														(117.1	)		(93.1	)		(95.4	)		(90.3	)		(111.6	)
Net Investment Income														2,708.7			2,631.9			2,638.5			2,704.1			2,702.3
Gross-up of Tax Exempt Income														7.2			7.5			7.7			7.7			7.1
Adjusted Net Investment Income													$	2,715.9		$	2,639.4		$	2,646.2		$	2,711.8		$	2,709.4
Mean Invested Assets (Amortized Cost)													$	37,616.9		$	38,828.5		$	41,042.8		$	43,216.4		$	43,933.3
Ratio of Adjusted Net Invest Income
Over Mean Invested Assets														7.22	%		6.80	%		6.45	%		6.27	%		6.17	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments													$	(68.7	)	$	(177.2	)	$	(11.0	)	$	(30.0	)	$	(14.5	)
Gains(Losses) on Derivatives														(4.9	)		0.8			(1.6	)		(7.4	)		(0.0	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)														183.7			557.7			39.8			29.8			(326.3	)
Incr (Decr) on Derivatives														21.4			24.4			(6.3	)		(8.1	)		(6.7	)
Securities Available-for-Sale
[Billions of Dollars]
Fixed Maturity Sec (Fair Value)														28.346			32.767			35.887			37.936			36.687
Fixed Maturity Sec (Amortized Cost)														27.956			31.103			33.743			35.692			35.348
Equity Securities (Fair Value)														0.470			0.337			0.201			0.163			0.147
Equity Securities (Amortized Cost)														0.444			0.334			0.176			0.148			0.139
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA														17.2	%		20.1	%		22.8	%		23.5	%		23.4	%
AA or better														23.6	%		25.8	%		29.3	%		29.9	%		30.9	%
BB or less														8.3	%		6.6	%		6.8	%		7.0	%		7.4	%
		Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
For the Quarter Ended		2003			2004			2004			2004			2004			2005			2005			2005			2005
Net Investment Income
Fixed maturity AFS securities	$	487.5		$	493.0		$	496.4		$	501.5		$	514.8		$	505.1		$	509.8		$	505.7		$	509.7
Equity AFS securities		2.7			2.4			2.0			2.2			4.4			1.8			2.0			2.4			3.3
Trading securities		46.5			47.5			48.6			47.7			49.7			47.6			48.8			48.6			48.7
Mortgage loans on real estate		77.9			100.4			92.1			83.8			73.8			70.9			70.7			70.9			75.1
Real estate		13.2			7.6			5.9			8.0			5.4			4.3			31.7			8.5			5.6
Policy loans		30.8			29.2			29.6			29.7			31.3			29.6			29.8			29.8			29.2
Invested cash		1.7			3.5			5.2			5.6			17.9			12.7			14.0			17.0			19.2
Other investments		20.9			15.0			23.8			14.0			2.4			13.5			24.2			16.4			7.0
Investment revenue		681.3			698.6			703.6			692.4			699.8			685.6			731.1			699.3			697.9
Investment expense		(22.1	)		(21.0	)		(20.5	)		(23.0	)		(25.7	)		(25.8	)		(27.5	)		(28.5	)		(29.8	)
Net Investment Income		659.2			677.5			683.1			669.4			674.1			659.8			703.6			670.8			668.1
Gross-up of Tax Exempt Income		1.8			1.7			1.6			1.7			2.6			1.6			1.6			1.8			2.1
Adjusted Net Invest Income	$	661.0		$	679.3		$	684.8		$	671.1		$	676.6		$	661.4		$	705.2		$	672.6		$	670.2
Mean Invested Assets (Amortized Cost)	$	41,999.1		$	42,615.7		$	42,987.4		$	43,499.3		$	43,763.4		$	43,851.9		$	43,806.2		$	44,040.1		$	44,035.2
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets		6.30	%		6.38	%		6.37	%		6.17	%		6.18	%		6.03	%		6.44	%		6.11	%		6.09	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments		42.0			(7.9	)		(11.6	)		(14.5	)		3.9			(6.0	)		(0.2	)		(2.0	)		(6.2	)
Gains (Losses) on Derivatives		(5.7	)		(2.5	)		(1.8	)		(3.4	)		0.3			1.4			(2.5	)		0.9			0.1
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)		(11.4	)		244.9			(626.0	)		368.1			42.8			(240.0	)		268.4			(282.2	)		(72.4	)
Incr (Decr) on Derivatives		(1.1	)		6.9			(10.5	)		1.3			(5.8	)		(6.3	)		4.2			(3.0	)		(1.5	)
Available-for-Sale and Trading Securities
[Billions of Dollars]
Fixed Maturity Sec (Fair Value)		35.887			36.856			35.894			37.444			37.936			37.429			38.318			37.610			36.687
Fixed Maturity Sec (Amortized Cost)		33.743			34.031			34.648			35.256			35.692			35.849			35.977			36.049			35.348
Equity Securities (Fair Value)		0.201			0.200			0.185			0.180			0.163			0.157			0.157			0.154			0.147
Equity Securities (Amortized Cost)		0.176			0.171			0.162			0.156			0.148			0.145			0.144			0.141			0.139
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA		22.8	%		23.4	%		23.3	%		23.6	%		23.5	%		24.4	%		24.8	%		24.5	%		23.4	%
AA or better		29.3	%		29.6	%		29.5	%		29.7	%		29.9	%		32.2	%		32.1	%		31.9	%		30.9	%
BB or less		6.8	%		6.9	%		7.1	%		6.9	%		7.0	%		6.2	%		6.5	%		7.3	%		7.4	%

12/31/2005																															PAGE 40
Common Stock / Debt Information
Unaudited [Dollars per Share, except Percentages]
For the Year Ended December 31				1995			1996			1997			1998			1999			2000			2001			2002			2003			2004			2005
Common Stock [1]
Highest Price				$	26.875		$	28.500		$	39.063		$	49.438		$	57.500		$	56.375		$	52.750		$	53.650		$	41.320		$	50.380		$	54.410
Lowest Price					17.313			20.375			24.500			33.500			36.000			22.625			38.000			25.150			24.730			40.060			41.590
Closing Price					26.875			26.250			39.063			40.907			40.000			47.313			48.570			31.580			40.370			46.680			53.030
Dividend Payout Ratio [2]					39.7	%		38.2	%		22.8	%		43.9	%		50.5	%		38.3	%		44.9	%		273.5	%		49.1	%		37.0	%		32.2	%
Yield [3]					3.4	%		3.7	%		2.7	%		2.7	%		2.9	%		2.6	%		2.6	%		4.2	%		3.5	%		3.1	%		2.8	%
Preferred Stock Dividend (Millions)				$	8.644		$	0.112		$	0.106		$	0.100		$	0.089		$	0.078		$	0.071		$	0.061		$	0.057		$	0.052		$	0.048
Debt: (End of Period)
Senior Debt Ratings
A.M. Best																				a			a			a			a-			a-			a-
Fitch					AA-			AA-			AA-			A+			A+			A+			A+			A			A			A			A
Moody's					A2			A2			A2			A2			A2			A3			A3			A3			A3			A3			A3
Standard and Poors					A			A			A			A-			A-			A-			A-			A-			A-			A-			A-
Claims Paying Ratings:
Lincoln Life - A.M. Best					A+			A+			A+			A			A			A			A			A+			A+			A+			A+
Lincoln Life - Fitch					AA+			AA+			AA+			AA+			AA+			AA			AA			AA			AA			AA			AA
Lincoln Life - Moody's					Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3
Lincoln Life - Standard & Poors					AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
First Penn - A.M. Best*					A+			A+			A+			A			A			A			A			A+			A+			A+			A+
First Penn - Fitch											AA+			AA+			AA+			AA			AA			AA			AA			AA			AA
First Penn - Moody's											A1			A1			A1			A1			A1			A1			A1			A1			A1
First Penn - Standard & Poors*					AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
LLA of New York - A.M. Best*								A+			A+			A			A			A			A			A+			A+			A+			A+
LLA of New York - Fitch*											AA+			AA+			AA+			AA			AA			AA			AA			AA			AA
LLA of New York - Moody's								A1			A1			A1			A1			A1			A1			A1			A1			A1			A1
LLA of New York - Standard & Poors*								AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
Ratios
Debt to Total Capitalization [4]					22.8	%		18.8	%		17.0	%		21.2	%		23.2	%		20.8	%		21.3	%		23.4	%		20.7	%		20.9	%		17.6	%
Debt to Equity [4]					29.5	%		23.1	%		20.5	%		26.9	%		30.3	%		26.3	%		27.0	%		30.5	%		26.1	%		26.5	%		21.3	%
		Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
For the Quarter Ended		2003			2003			2003			2003			2004			2004			2004			2004			2005			2005			2005			2005
Common Stock:
Highest Price	$	35.700		$	37.500		$	38.640		$	41.320		$	48.870		$	50.380		$	47.500		$	48.700		$	49.420		$	47.770		$	52.420		$	54.410
Lowest Price		24.730			27.870			34.630			35.410			40.060			43.260			41.900			40.790			44.360			41.590			46.590			46.940
Closing Price		28.000			35.630			35.380			40.370			47.320			47.250			47.000			46.680			45.140			46.920			52.020			53.030
Yield [3]		4.8	%		3.8	%		3.8	%		3.5	%		3.0	%		3.0	%		3.0	%		3.1	%		3.2	%		3.1	%		2.8	%		2.9	%
																��
Preferred Stock Dividend	$	0.015		$	0.014		$	0.016		$	0.014		$	0.013		$	0.013		$	0.013		$	0.013		$	0.012		$	0.012		$	0.012		$	0.012
(Millions)
Debt: (End of Period)
Senior Debt Ratings
A.M. Best		a			a			a			a-			a-			a-			a-			a-			a-			a-			a-			a-
Fitch		A			A			A			A			A			A			A			A			A			A			A			A
Moody's		A3			A3			A3			A3			A3			A3			A3			A3			A3			A3			A3			A3
Standard and Poors		A-			A-			A-			A-			A-			A-			A-			A-			A-			A-			A-			A-
Claims Paying Ratings:
Lincoln Life - A.M. Best		A+			A+			A+			A+			A+			A+			A+			A+			A+			A+			A+			A+
Lincoln Life - Fitch		AA			AA			AA			AA			AA			AA			AA			AA			AA			AA			AA			AA
Lincoln Life - Moody's		Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3
Lincoln Life - Standard & Poors		AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
First Penn - A.M. Best*		A+			A+			A+			A+			A+			A+			A+			A+			A+			A+			A+			A+
First Penn - Fitch		AA			AA			AA			AA			AA			AA			AA			AA			AA			AA			AA			AA
First Penn - Moody's		A1			A1			A1			A1			A1			A1			A1			A1			A1			A1			A1			A1
First Penn - Standard & Poors*		AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
LLA of New York - A.M. Best*		A+			A+			A+			A+			A+			A+			A+			A+			A+			A+			A+			A+
LLA of New York - Fitch*		AA			AA			AA			AA			AA			AA			AA			AA			AA			AA			AA			AA
LLA of New York - Moody's		A1			A1			A1			A1			A1			A1			A1			A1			A1			A1			A1			A1
LLA of New York - Standard & Poors*		AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
Ratios
Debt to Total Capitalization [4]		23.1	%		22.3	%		21.5	%		20.7	%		22.8	%		22.6	%		22.0	%		20.9	%		20.3	%		19.9	%		18.6	%		17.6	%
Debt to Equity [4]		30.0	%		28.7	%		27.5	%		26.1	%		29.5	%		29.1	%		28.1	%		26.5	%		25.5	%		24.8	%		22.9	%		21.3	%

* Rating based on affiliation with Lincoln Life

[1] Stock prices include the 2-for-1split in June 1999

[2] Indicated dividend divided by net income

[3] Indicated dividend divided by the closing price

[4] Equity used in calculation excludes accumulated other comprehensive income (loss). Junior subordinated debentures issued to affiliated trusts (hybrid securities) are considered 50% debt and 50% equity.