Lincoln National 8K Investments in Distribution Drive Growth in Production Across Segments | LNC 31 Oct 07

Lincoln Statistical Report






		third Q U A R T E R









	2 0 0 7






The financial data in this document is dated October 30, 2007 and has not been updated since that date. LNC does not intend to update this document.

Lincoln Financial Group
Statistical Report
Third Quarter
2007

Table of Contents

LFG Analyst Coverage

Notes

Financial Highlights			1 - 4

Consolidated Expense Detail			5
Operating Results Summary			6
Consolidated Statements of Income			7

Consolidating Statements of Income from Operations			8-9
Consolidated Balance Sheet			10
Balance Sheet Data - Segment Highlights			11

Individual Markets
Individual Life Insurance
Income Statements & Operational Data			12
Operational Data			13
Account Value Roll Forward			14
Individual Annuities
Income Statements & Operational Data			15
Account Value Roll Forward			16
Account Values			17

Employer Markets
Defined Contribution
Income Statements & Operational Data			18
Account Value Roll Forward			19
Supplemental Data			20
Executive Benefits
Income Statements & Operational Data			21
Account Value Roll Forward and Supplemental Data			22
Group Protection
Income Statements & Operational Data			23
Supplemental Data			24

Investment Management
Income Statements			25
Assets Under Management Roll Forward			26

Lincoln UK
Income Statements			27
Operational Data			28

Lincoln Financial Media			29

Other Operations			29

Domestic Deposits / Account Balances / Net Flows			30

Investment Data
Assets Managed			31
Other Investment Data			32

9/30/2007		ii
NOTES

On April 3, 2006, we completed our merger with Jefferson Pilot Corporation ("JP") and have included the results of operations and financial
condition of JP since then.

Definitions and Presentation
"Income from Operations," "Operating Revenue," "Return on Capital," and "Station Operating Income" are non-GAAP financial measures
and do not replace GAAP revenue and net income (loss). 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,
	* 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, and
	* 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, and
	* 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, capital securities and junior subordinated debentures issued to affiliated trusts.
	Return on capital is calculated by dividing annualized 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.

*	Station operating income is calculated as communications revenues less operating costs and expenses before depreciation
	and amortization.

Income from operations, operating revenue, return on capital, and station operating income 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,
	spreads, and assets under management.

*	Sales as reported consist of the following:
	* Universal life ("UL"), including Moneyguard, and COLI - first year commissionable premium plus 5% of excess premium
	received, including UL internal replacements
	* Whole life and term - first year paid premium
	* Annuity - deposits from new and existing customers
	* Group Protection - annualized first year premium from new policies
	* Investment Management Retail Sales and Institutional Inflows - contributions, transfer in kind purchases, and reinvested
	dividends for new and existing accounts.

During the third quarter of 2007, we added additional detail to our roll forwards of DAC and VOBA, DSI and DFEL to disclose the net impact
of prospective and retrospective unlocking on amortization for these accounts. This additional information will help explain a source of
volatility in amortization.

*	Prospective unlocking - In the third quarter of each year, we review and update our assumptions used in projecting our future
	estimated gross profits (EGPs) used to amortize DAC, VOBA, DFEL and DSI. These updates to assumptions result in unlocking
	that represent an increase or decrease to our carrying value of DAC, VOBA, DFEL and DSI based upon our updated view of future
	EGPs. The various assumptions that are reviewed include investment margins, mortality, expenses and persistency.

*	Retrospective unlocking - On a quarterly basis, we “true-up” our models for actual gross profits and in-force experience for the
	period, and to the extent that actual experience differs from previously expected a positive or negative retrospective adjustment to
	the amortization of DAC, VOBA, DSI and DFEL is recorded. This update to the models may generate a change in the amortization
	rate which results in a catch-up to the cumulative amortization, by recalculating the DAC, VOBA, DSI and DFEL balances assuming
	that the revised amortization rate had been used since issue.

*	Our unlocking process also includes our reserves for our guaranteed benefit features and is described more fully in “Part II -
	Item 7 - Management’s Discussion and Analysis of Financial Condition, Results of Operations - Critical Accounting Policies” of
	our 2006 Form 10-K.

Book value per share excluding accumulated other comprehensive income ("AOCI") is calculated based upon a non-GAAP financial measure. It is
calculated by dividing (a) stockholders' equity excluding AOCI, by (b) common shares outstanding. We provide book value per share
excluding AOCI to enable investors to analyze the amount of our net worth that is primarily attributable to our business operations. We believe
book value per share excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to
period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP measure.

Pre-tax operating margin is calculated as Income (Loss) from Operations before Federal Income Taxes divided by Operating Revenue.

After-tax operating margin is calculated as Income (Loss) from Operations divided by Operating Revenue.

Reclassifications
Certain amounts reported in prior periods have been reclassified to conform to the current presentation. These reclassifications have no effect
on net income or shareholders' equity in the prior periods.

9/30/2007																						PAGE 1
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]



	For the Quarter Ended September 30												For the Nine Months Ended September 30
	2007			2006									2007			2006
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
*Income from Operations - By Segment*
Individual Life Insurance	$	173.6		$	122.8		$	50.8			41.4	%	$	516.7		$	339.0		$	177.7			52.4	%
Individual Annuities		106.9			129.4			(22.5	)		-17.4	%		358.0			284.8			73.2			25.7	%
Individual Markets		280.5			252.2			28.3			11.2	%		874.7			623.8			250.9			40.2	%
Defined Contribution		41.2			52.5			(11.3	)		-21.5	%		138.2			159.3			(21.1	)		-13.2	%
Executive Benefits		11.0			12.8			(1.8	)		-14.1	%		39.3			36.5			2.8			7.7	%
Group Protection		33.2			28.8			4.4			15.3	%		85.3			65.8			19.5			29.6	%
Employer Markets		85.5			94.0			(8.5	)		-9.0	%		262.9			261.6			1.3			0.5	%
Investment Management		21.8			13.4			8.4			62.7	%		49.3			40.8			8.5			20.8	%
Lincoln UK		10.3			8.3			2.0			24.1	%		32.9			28.9			4.0			13.8	%
Lincoln Financial Media		13.6			14.6			(1.0	)		-6.8	%		39.6			26.5			13.1			49.4	%
Other Operations		(58.9	)		(11.5	)		(47.4	)	NM				(140.7	)		(37.4	)		(103.3	)	NM
*Total Income from Operations ⁽¹⁾*		352.9			371.1			(18.2	)		-4.9	%		1,118.7			944.1			174.6			18.5	%

Realized losses		(23.2	)		(4.1	)		(19.1	)	NM				(10.9	)		(12.3	)		1.4			11.4	%
Net gain (loss) on reinsurance
derivative/trading account securities		(0.5	)		(3.1	)		2.6			83.9	%		1.6			1.9			(0.3	)		-15.8	%
Reserve development/ amortization of related deferred gain		0.4			0.2			0.2			100.0	%		(7.3	)		0.6			(7.9	)	NM
*Net Income*	$	329.6		$	364.1		$	(34.5	)		-9.5	%	$	1,102.1		$	934.3		$	167.8			18.0	%

*Earnings per share (diluted)*

*Income from Operations ⁽¹⁾*	$	1.29		$	1.31		$	(0.02	)		-1.5	%	$	4.06		$	3.80		$	0.26			6.8	%
Realized losses		(0.08	)		(0.01	)		(0.07	)	NM				(0.04	)		(0.05	)		0.01			20.0	%
Net gain (loss) on reinsurance
derivative/trading account securities		-			(0.01	)		0.01			100.0	%		0.01			0.01			-			-
Reserve development/ amortization of related deferred gain		-			-			-		NM				(0.03	)		-			(0.03	)	NM
*Net Income*	$	1.21		$	1.29		$	(0.08	)		-6.2	%	$	4.00		$	3.76		$	0.24			6.4	%



*Operating Revenue- By Segment*
Individual Life Insurance	$	990.1		$	895.3		$	94.8			10.6	%	$	2,919.0		$	2,297.4		$	621.6			27.1	%
Individual Annuities		666.3			596.5			69.8			11.7	%		1,946.7			1,523.9			422.8			27.7	%
Individual Markets		1,656.4			1,491.8			164.6			11.0	%		4,865.7			3,821.2			1,044.5			27.3	%
Defined Contribution		243.4			245.1			(1.7	)		-0.7	%		742.2			743.2			(1.0	)		-0.1	%
Executive Benefits		113.5			104.3			9.2			8.8	%		340.1			262.7			77.4			29.5	%
Group Protection		367.5			332.1			35.4			10.7	%		1,119.0			687.0			432.0			62.9	%
Employer Markets		724.5			681.5			43.0			6.3	%		2,201.3			1,692.9			508.4			30.0	%
Investment Management		150.1			140.4			9.7			6.9	%		451.2			414.6			36.6			8.8	%
Lincoln UK		88.7			72.3			16.4			22.7	%		271.9			223.2			48.7			21.8	%
Lincoln Financial Media		59.8			60.0			(0.2	)		-0.3	%		185.0			117.7			67.3			57.2	%
Other Operations		37.4			51.4			(14.0	)		-27.2	%		122.8			150.7			(27.9	)		-18.5	%
*Total Operating Revenue*		2,716.9			2,497.4			219.5			8.8	%		8,097.9			6,420.2			1,677.7			26.1	%

Realized losses		(35.4	)		(5.8	)		(29.6	)	NM				(17.7	)		(19.4	)		1.7			8.8	%
Gain (loss) on reinsurance
derivative/trading account securities		(1.1	)		(4.7	)		3.6		NM				2.6			3.0			(0.4	)		-13.3	%
Amortization of deferred gain-reserve development		0.6			0.3			0.3			100.0	%		8.7			1.0			7.7		NM
*Total Revenue*	$	2,680.9		$	2,487.2		$	193.7			7.8	%	$	8,091.7		$	6,404.6		$	1,687.1			26.3	%

⁽¹⁾ Income from operations includes after-tax restructuring charges of $4.8 million, or 2 cents per share, and $0.6 million, or 0 cents per share, for the quarters ended September 30, 2007 and
2006, respectively, and $11.3 million, or 4 cents per share, and $7.1 million, or 3 cents per share, for the nine months ended September 30, 2007 and 2006, respectively.

9/30/2007																						PAGE 2
*Financial Highlights*
Unaudited [in Billions]





*Operational Data by Segment*	For the Quarter Ended September 30												For the Nine Months Ended September 30
	2007			2006									2007			2006
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change

*Individual Markets*
Individual Annuities
Gross deposits	$	3.478		$	2.720		$	0.758			27.9	%	$	9.576		$	7.596		$	1.981			26.1	%
Net flows		1.291			0.304			0.987		NM				3.183			1.773			1.410			79.5	%
Account values (gross)		76.106			62.916			13.190			21.0	%		76.106			62.916			13.190			21.0	%
Account values (net of reinsurance)		74.676			60.872			13.804			22.7	%		74.676			60.872			13.804			22.7	%
Individual Life Insurance
Sales (in millions) ⁽¹⁾		179.9			152.5			27.4			18.0	%		563.4			352.8			210.7			59.7	%
Life insurance in-force		517.900			495.699			22.202			4.5	%		517.900			495.699			22.202			4.5	%
Account values		27.875			25.821			2.054			8.0	%		27.875			25.821			2.054			8.0	%
*Employer Markets*
Defined Contribution
Gross deposits ⁽²⁾	$	1.525		$	1.086		$	0.439			40.4	%	$	4.285		$	3.486		$	0.799			22.9	%
Net flows		0.133			0.037			0.096			259.5	%		0.428			0.331			0.096			29.0	%
Account values - annuities		29.471			27.591			1.880			6.8	%		29.471			27.591			1.880			6.8	%
Alliance Mutual Funds		7.165			4.636			2.529			54.6	%		7.165			4.636			2.529			54.6	%
Account values including Alliance Mutual Funds		36.636			32.227			4.409			13.7	%		36.636			32.227			4.409			13.7	%
Executive Benefits
COLI/BOLI sales (in millions)		18.0			16.3			1.7			10.4	%		52.0			50.4			1.6			3.2	%
Life insurance in-force		14.900			15.342			(0.442	)		-2.9	%		14.900			15.342			(0.442	)		-2.9	%
Account values		4.391			4.252			0.140			3.3	%		4.391			4.252			0.140			3.3	%
Group Protection
Annualized sales (in millions)		60.7			50.2			10.5			20.9	%		183.5			95.6			87.9			92.0	%
Loss ratio⁽³⁾		68.6	%		68.4	%	NM			NM				70.7	%		66.6	%	NM			NM
*Investment Management Segment*
Retail sales	$	2.811		$	2.497		$	0.314			12.6	%	$	9.687		$	9.799		$	(0.112	)		-1.1	%
Retail net flows		(0.334	)		(0.300	)		(0.034	)		-11.3	%		(0.378	)		1.327			(1.704	)	NM
Institutional in-flows		2.934			2.406			0.528			21.9	%		8.242			10.214			(1.972	)		-19.3	%
Institutional net flows		0.425			1.046			(0.620	)		-59.3	%		(0.044	)		5.324			(5.368	)	NM
Total Sales and In-flows		5.746			4.904			0.842			17.2	%		17.929			20.013			(2.084	)		-10.4	%
Total Net Flows		0.091			0.745			(0.654	)		-87.8	%		(0.422	)		6.651			(7.073	)	NM
Assets Under Management- Retail and Institutional		99.716			89.511			10.205			11.4	%		99.716			89.511			10.205			11.4	%
Assets Under Management - General Account		67.324			67.410			(0.086	)		-0.1	%		67.324			67.410			(0.086	)		-0.1	%
Assets Under Management - Total Segment		167.040			156.921			10.119			6.4	%		167.040			156.921			10.119			6.4	%
*Consolidated*
Domestic Retail Deposits	$	7.968		$	6.297		$	1.672			26.6	%	$	24.201		$	21.255		$	2.946			13.9	%
Domestic Retail Account Balances		182.458			156.998			25.460			16.2	%		182.458			156.998			25.460			16.2	%
Domestic Retail Net Flows		1.790			0.532			1.257			236.3	%		5.494			4.876			0.618			12.7	%
Domestic Deposits		10.873			8.501			2.371			27.9	%		32.114			30.645			1.470			4.8	%
Domestic Net Flows		2.343			1.717			0.626			36.5	%		5.600			10.254			(4.654	)		-45.4	%
Assets Under Management		251.461			220.300			31.160			14.1	%		251.461			220.300			31.160			14.1	%

⁽¹⁾Sales for Individual Life Insurance consist of first year commissionable premium for Universal life ("UL"), including Moneyguard, and COLI plus 5% of excess
premium received, including UL internal replacements, and first year paid premiums for Whole life and Term products
⁽²⁾Includes deposits for Alliance Mutual Funds which are not included in separate account liabilities on our balance sheet.
⁽³⁾ Represents combined loss ratio for Life, Disability and Dental business.

9/30/2007																						PAGE 3
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended September 30												For the Nine Months Ended September 30
	2007			2006									2007			2006
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change

*Balance Sheet Assets - End of Period*	$	192,216.9		$	171,726.6		$	20,490.3			11.9	%	$	192,216.9		$	171,726.6		$	20,490.3			11.9	%

*Shareholders' Equity*
Beg of period (including AOCI)	$	11,835.7		$	11,404.8		$	430.9					$	12,201.0		$	6,384.4		$	5,816.6
End of period (including AOCI)		11,963.0			12,043.2			(80.1	)					11,963.0			12,043.2			(80.1	)
End of period (excluding AOCI)		11,766.2			11,436.0			330.2						11,766.2			11,436.0			330.2
Average equity (excluding AOCI)		11,726.3			11,437.9			288.4						11,578.7			9,568.0			2,010.6

Return on Equity
Net income/average equity (excluding AOCI)		11.2	%		12.7	%								12.7	%		13.0	%
Inc from operations/average equity (excluding AOCI)		12.0	%		13.0	%								12.9	%		13.2	%

*Return on Capital*
Inc from operations/average capital		9.8	%		10.5	%								10.4	%		10.8	%

*Common Stock Outstanding*
Average for the period - diluted		272.5			282.4			(9.9	)		-3.5	%		275.4			248.0			27.4			11.1	%
End of period - assuming conv of preferreds		269.4			277.6			(8.2	)		-3.0	%		269.4			277.6			(8.2	)		-3.0	%
End of period - diluted		271.7			281.3			(9.6	)		-3.4	%		271.7			281.3			(9.6	)		-3.4	%

Book value (including AOCI)	$	44.41		$	43.39		$	1.03			2.4	%	$	44.41		$	43.39		$	1.03			2.4	%
Book value (excluding AOCI)		43.68			41.20			2.48			6.0	%	$	43.68		$	41.20		$	2.48			6.0	%

*Cash Returned to Shareholders*
Share repurchase - dollar amount	$	174.6		$	350.3		$	(175.7	)				$	686.3		$	855.6		$	(169.3	)
Dividends declared to shareholders		106.1			104.8			1.3						320.4			319.7			0.7
*Total Cash Returned to Shareholders*	$	280.6		$	455.0		$	(174.4	)				$	1,006.7		$	1,175.3		$	(168.6	)

Share repurchase - number of shares		3.092			6.314			(3.221	)					10.307			14.374			(4.066	)
Dividend declared on common stock - per share	$	0.395		$	0.380		$	0.015			3.9	%	$	1.185		$	1.140		$	0.045			3.9	%
Dividend payout ratio ⁽¹⁾		32.6	%		29.5	%								29.6	%		30.3	%
Annualized yield⁽²⁾		2.4	%		2.4	%								2.4	%		2.4	%

*Comprehensive Income (Loss)*
Net income	$	329.6		$	364.1								$	1,102.1		$	934.3
Net unrealized gains (losses) on securities		1.3			629.5									(475.0	)		(18.5	)
Gains (losses) on derivatives		34.5			4.3									30.8			48.5
Foreign currency translation		12.2			8.0									28.4			53.1
Minimum pension liability adjustment		-			0.4									-			(3.7	)
Funded status of employee benefit plans⁽⁴⁾		(0.5	)		-									(0.6	)		-
*Comprehensive Income*	$	377.1		$	1,006.3								$	685.7		$	1,013.6

*Ratios:*
Debt to total capitalization ⁽³⁾		21.6	%		22.2	%								21.6	%		22.2	%
Debt to equity⁽³⁾		27.5	%		28.5	%								27.5	%		28.5	%

Ratings as of October 29, 2007:

A.M. Best

Fitch

Moody's

Standard & Poors

Senior Debt Ratings:

A+

Financial Strength Ratings:

Lincoln National Life Insurance Company

A+

Aa3

First Penn-Pacific Life Insurance Company

A+

AA-

Lincoln Life & Annuity Company of New York

A+

Aa3

⁽¹⁾ Indicated dividend divided by net income 0;

⁽²⁾ Indicated dividend divided by the closing price

⁽³⁾Equity used in calculation excludes accumulated other comprehensive income (loss). Capital securities are considered 25% debt and 75% equity.

⁽⁴⁾SFAS 158 was adopted effective December 31, 2006 which requires the disclosure of the funded status of our pension and post-retirement benefit plans on the balance sheet.

9/30/2007																PAGE 4
*Combined Production Data ⁽¹⁾*
Unaudited [in Billions]

	Three Months Ended													Nine Months Ended
	Sept.		Dec.		March		June		Sept.		%			Sept.		Sept.		%
	2006		2006		2007		2007		2007		Change			2006		2007		Change
Individual Markets
Individual Life Insurance
Sales by Product (millions)
Universal Life
Excluding MoneyGuard	$	119.9	$	177.6	$	166.2	$	145.0	$	143.9		20.0	%	$	300.7	$	455.1		51.3	%
MoneyGuard		8.3		7.8		7.4		9.9		10.9		31.3	%		23.5		28.1		19.6	%
Total		128.2		185.4		173.6		154.9		154.8		20.7	%		324.2		483.2		49.0	%
Variable universal life		13.0		22.1		20.6		17.3		17.7		36.2	%		45.1		55.5		23.1	%
Whole life		0.7		0.6		0.1		0.1		0.3		-57.1	%		2.3		0.6		-73.9	%
Term		10.7		10.0		9.3		7.8		7.2		-32.7	%		33.1		24.2		-26.9	%
*Total Sales by Product*	$	152.5	$	218.1	$	203.5	$	180.0	$	179.9		18.0	%	$	404.8	$	563.5		39.2	%

Individual Annuity Deposits
Fixed	$	0.818	$	0.855	$	0.661	$	0.791	$	1.032		26.2	%	$	2.022	$	2.483		22.8	%
Variable		1.658		2.061		2.000		2.295		2.247		35.5	%		5.191		6.543		26.0	%
Indexed annuities		0.244		0.245		0.160		0.191		0.199		-18.4	%		0.645		0.550		-14.7	%
*Total Individual Annuities*	$	2.720	$	3.161	$	2.821	$	3.277	$	3.478		27.9	%	$	7.858	$	9.576		21.9	%

Employer Markets
Defined Contribution
Fixed	$	0.268	$	0.183	$	0.299	$	0.233	$	0.305		13.8	%	$	0.763	$	0.837		9.7	%
Variable		0.583		0.559		0.655		0.577		0.564		-3.3	%		1.966		1.795		-8.7	%
		0.851		0.742		0.953		0.809		0.869		2.1	%		2.729		2.632		-3.6	%
Alliance Mutual Funds Deposits		0.235		0.357		0.533		0.464		0.656		179.1	%		0.757		1.653		118.4	%
*Total Annuity and Alliance Mutual Funds*	$	1.086	$	1.099	$	1.487	$	1.273	$	1.525		40.4	%	$	3.486	$	4.285		22.9	%

Executive Benefits
COLI/BOLI sales (millions)	$	16.3	$	32.5	$	20.4	$	13.6	$	18.0		10.4	%	$	51.0	$	52.0		2.0	%

Group Protection
Annualized Sales (millions)
Life	$	19.4	$	43.1	$	22.7	$	23.6	$	22.0		13.4	%	$	58.3	$	68.3		17.2	%
Disability		24.7		56.9		28.6		28.9		30.5		23.5	%		81.8		88.0		7.6	%
Dental		6.1		13.1		9.4		9.5		8.3		36.1	%		19.4		27.2		40.2	%

Investment Management
Sales and Inflows
Retail
Annuities	$	0.960	$	0.932	$	1.300	$	0.902	$	0.891		-7.2	%	$	2.715	$	3.093		13.9	%
Mutual funds		1.151		1.768		1.753		1.896		1.543		34.1	%		3.849		5.192		34.9	%
Managed accounts & other		0.386		0.493		0.550		0.474		0.377		-2.3	%		3.235		1.402		-56.7	%
		2.497		3.192		3.603		3.272		2.812		12.6	%		9.799		9.687		-1.1	%
Institutional		2.406		4.888		2.431		2.877		2.934		21.9	%		10.214		8.242		-19.3	%
*Total Sales and Inflows*	$	4.904	$	8.080	$	6.034	$	6.149	$	5.746		17.2	%	$	20.013	$	17.929		-10.4	%


Total Annuity & Alliance
Mutual Fund Deposits
Fixed Annuities
Individual	$	1.062	$	1.100	$	0.821	$	0.982	$	1.231		15.9	%	$	2.667	$	3.034		13.8	%
Employer Markets		0.268		0.183		0.299		0.233		0.305		13.8	%		0.763		0.837		9.7	%
		1.330		1.283		1.120		1.215		1.536		15.5	%		3.430		3.870		12.8	%
Variable Annuities
Individual		1.658		2.061		2.000		2.295		2.247		35.5	%		5.191		6.543		26.0	%
Employer Markets		0.583		0.559		0.655		0.577		0.564		-3.3	%		1.966		1.795		-8.7	%
		2.241		2.619		2.655		2.872		2.811		25.4	%		7.158		8.338		16.5	%
Total Annuities		3.571		3.903		3.775		4.087		4.347		21.7	%		10.588		12.209		15.3	%
Alliance Mutual Funds		0.235		0.357		0.533		0.464		0.656		179.1	%		0.757		1.653		118.4	%
*Total Annuity and Alliance Mutual Funds*	$	3.806	$	4.259	$	4.308	$	4.550	$	5.003		31.5	%	$	11.344	$	13.861		22.2	%

⁽¹⁾ This schedule combines the previously reported data for LNC and JP and does not reflect any adjustments that may have resulted had the April 4, 2006 merger been
completed prior to the periods presented.

9/30/2007																						PAGE 5
*Consolidated Expense Detail*
Unaudited (In Millions)

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change

Commissions	$	382.6		$	464.7		$	446.5		$	462.9		$	470.8			23.1	%	$	957.5		$	1,380.2			44.1	%

General and administrative expenses:
General and administrative expenses		400.6			434.4			392.2			434.5			419.8			4.8	%		1,062.4			1,246.5			17.3	%
Merger-related expenses		12.1			15.8			10.1			23.8			21.9			81.0	%		19.5			55.8			186.2	%
Total general and administrative expenses
excluding Broker/Dealer		412.7			450.2			402.3			458.3			441.7			7.0	%		1,081.9			1,302.3			20.4	%

Restructuring charges		1.0			3.3			3.9			6.2			7.4		NM				10.9			17.4			59.6	%
Taxes, licenses and fees		50.3			48.0			66.1			52.5			53.1			5.6	%		131.2			171.7			30.9	%
Interest ⁽¹⁾		67.3			70.4			61.5			72.8			69.4			3.1	%		154.0			203.6			32.2	%
Total commissions and expenses incurred		914.0			1,036.6			980.2			1,052.7			1,042.4			14.0	%		2,335.5			3,075.3			31.7	%

Less: commissions and expenses capitalized		(424.3	)		(517.9	)		(487.4	)		(504.9	)		(511.4	)		-20.5	%		(1,060.4	)		(1,503.7	)		-41.8	%

Amortization:
DAC/VOBA Amortization, net of interest ⁽³⁾		225.9			278.5			281.6			244.5			262.5			16.2	%		613.1			788.6			28.6	%
Amortization of intangibles		3.1			4.4			4.3			2.8			2.9			-6.5	%		11.6			10.0			-13.8	%
Total amortization		229.0			282.8			285.9			247.3			265.3			15.9	%		624.7			798.6			27.8	%

Broker/Dealer commissions and G&A		76.6			80.0			87.2			92.8			91.8			19.8	%		202.5			271.9			34.3	%

Total	$	795.3		$	881.5		$	865.9		$	887.9		$	888.1			11.7	%	$	2,102.3		$	2,642.0			25.7	%


Merger-related expenses:⁽²⁾
Severance and employee-related charges	$	8.4		$	6.2		$	3.0		$	6.6		$	5.6			-33.3	%	$	21.2		$	15.2			-28.3	%
Systems integration and related expenses		1.5			5.4			5.6			17.7			17.9		NM				2.3			41.2		NM
Other expenses		3.2			7.5			5.4			5.7			5.8			81.3	%		6.3			16.9			168.3	%
Total merger-related expenses	$	13.1		$	19.1		$	14.0		$	30.0		$	29.3			123.7	%	$	29.8		$	73.3			146.0	%

Note: The Consolidated Expense Detail data is presented on a GAAP basis.
⁽¹⁾Interest expense for the fourth quarter 2006 includes $5.6 million related to losses on early extinguishment of debt.
⁽²⁾ Represents merger-related expenses included in general and administrative expenses and restructuring charges.
⁽³⁾In the second quarter of 2007, we recognized certain adjustments that reduced DAC amortization by $23 million.

9/30/2007																						PAGE 6
*Operating Results Summary*
Unaudited [Millions of Dollars, except Common Share Data]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Individual Life Insurance ⁽³⁾	$	895.3		$	958.4		$	971.4		$	957.5		$	990.1			10.6	%	$	2,297.4		$	2,919.0			27.1	%
Individual Annuities		596.5			637.3			605.1			675.3			666.3			11.7	%		1,523.9			1,946.7			27.7	%
Individual Markets		1,491.8			1,595.7			1,576.5			1,632.8			1,656.4			11.0	%		3,821.2			4,865.7			27.3	%
Defined Contribution		245.1			245.0			246.8			252.1			243.4			-0.7	%		743.2			742.2			-0.1	%
Executive Benefits		104.3			109.1			111.7			114.9			113.5			8.8	%		262.7			340.1			29.5	%
Group Protection		332.1			344.8			360.4			391.0			367.5			10.7	%		687.0			1,119.0			62.9	%
Employer Markets		681.5			698.9			718.9			758.0			724.5			6.3	%		1,692.9			2,201.3			30.0	%
Investment Management		140.4			148.9			150.2			151.0			150.1			6.9	%		414.6			451.2			8.8	%
Lincoln UK		72.3			84.8			90.7			92.5			88.7			22.7	%		223.2			271.9			21.8	%
Lincoln Financial Media		60.0			70.2			67.5			57.6			59.8			-0.3	%		117.7			185.0			57.2	%
Other Operations		51.4			45.6			40.0			45.3			37.4			-27.2	%		150.7			122.8			-18.5	%
*Total Operating Revenue*		2,497.4			2,644.1			2,643.8			2,737.2			2,716.9			8.8	%		6,420.2			8,097.9			26.1	%

Realized gains (losses) on investments and derivatives		(5.8	)		12.8			26.4			(8.7	)		(35.4	)	NM				(19.4	)		(17.7	)		8.8	%
Net gain (loss) on reinsurance
derivative/trading account securities		(4.7	)		1.2			(0.2	)		4.0			(1.1	)	NM				3.0			2.6			-13.3	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			7.8			0.6			100.0	%		1.0			8.7		NM
*Total Revenue*	$	2,487.2		$	2,658.4		$	2,670.4		$	2,740.3		$	2,680.9			7.8	%	$	6,404.6		$	8,091.7			26.3	%

*Income from Operations ⁽¹⁾*
Individual Life Insurance	$	122.8		$	157.4		$	166.6		$	176.4		$	173.6			41.4	%	$	339.0		$	516.7			52.4	%
Individual Annuities		129.4			123.8			121.0			130.1			106.9			-17.4	%		284.8			358.0			25.7	%
Individual Markets		252.2			281.1			287.6			306.5			280.5			11.2	%		623.7			874.7			40.2	%
Defined Contribution		52.5			44.6			49.7			47.3			41.2			-21.5	%		159.3			138.2			-13.2	%
Executive Benefits		12.8			12.7			14.4			13.9			11.0			-14.1	%		36.5			39.3			7.7	%
Group Protection		28.8			33.2			23.1			29.0			33.2			15.3	%		65.8			85.3			29.6	%
Employer Markets		94.0			90.5			87.3			90.1			85.5			-9.0	%		261.6			262.9			0.5	%
Investment Management		13.4			14.4			16.2			11.3			21.8			62.7	%		40.8			49.3			20.8	%
Lincoln UK		8.3			9.9			10.9			11.7			10.3			24.1	%		28.9			32.9			13.8	%
Lincoln Financial Media		14.6			17.5			12.4			13.6			13.6			-6.8	%		26.5			39.6			49.4	%
Other Operations		(11.5	)		(38.4	)		(35.2	)		(46.6	)		(58.9	)	NM				(37.4	)		(140.7	)	NM
*Income from Operations ⁽¹⁾*		371.1			375.2			379.1			386.7			352.9			-4.9	%		944.1			1,118.7			18.5	%

Realized gains (losses) on investments and derivatives		(4.1	)		9.4			17.1			(4.9	)		(23.2	)	NM				(12.3	)		(10.9	)		11.4	%
Net gain (loss) on reinsurance
derivative/trading account securities		(3.1	)		0.1			-			2.1			(0.5	)	NM				1.9			1.6			-15.8	%
Reserve development/ amortization of related deferred gain		0.2			0.2			0.2			(7.9	)		0.4			100.0	%		0.6			(7.3	)	NM
Loss on early retirement of debt		-			(3.6	)		-			-			-		NM				-			-		NM
*Net Income*	$	364.1		$	381.3		$	396.5		$	376.0		$	329.6			-9.5	%	$	934.3		$	1,102.1			18.0	%

*OTHER DATA*

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.						Sept.			Sept.
	2006			2006			2007			2007			2007						2006			2007
*Shareholders' Equity*
Beg of period (including AOCI)	$	11,404.8		$	12,043.2		$	12,201.0		$	12,032.2		$	11,835.7					$	6,384.4		$	12,201.0
End of period (including AOCI)		12,043.2			12,201.0			12,032.2			11,835.7			11,963.0						12,043.2			11,963.0
End of period (excluding AOCI)		11,436.0			11,587.9			11,372.5			11,686.4			11,766.2						11,436.0			11,766.2
Average equity (excluding AOCI) ⁽²⁾		11,437.9			11,512.0			11,480.2			11,529.4			11,726.3						9,568.0			11,578.7

*Common Shares Outstanding*
Average for the period - diluted		282.4			280.4			279.5			274.4			272.5						248.0			275.4
End of period - diluted		281.3			280.2			274.0			274.5			271.7						281.3			271.7

*Per Share Data (Diluted)*
Net Income	$	1.29		$	1.36		$	1.42		$	1.37		$	1.21					$	3.76		$	4.00
Income from Operations ⁽¹⁾		1.31			1.34			1.36			1.41			1.29						3.80			4.06

*Shareholders' Equity Per Share*
Shareholders' Equity (including AOCI)	$	43.39		$	44.21		$	44.42		$	43.57		$	44.41					$	43.39		$	44.41
Shareholders' Equity (excluding AOCI)		41.20			41.99			41.98			43.02			43.68						41.20			43.68
Dividends declared (Common Stock)		0.380			0.395			0.395			0.395			0.395						1.140			1.185

*Return on Equity*
Net Income/Average Equity		12.7	%		13.2	%		13.8	%		13.0	%		11.2	%					13.0	%		12.7	%
Inc from Operations/Average Equity		13.0	%		13.0	%		13.2	%		13.4	%		12.0	%					13.2	%		12.9	%

*Market Value of Common Stock*
Highest price	$	63.47		$	66.72		$	71.18		$	74.72		$	72.28					$	63.47		$	74.72
Lowest price		53.94			61.74			64.29			66.90			54.40						52.00			54.40
*Closing price*	$	62.08		$	66.40		$	67.79		$	70.95		$	65.97					$	62.08		$	65.97

⁽¹⁾ Income from operations includes after-tax restructuring charges of $0.6 million, or -0- cents per share, for the third quarter of 2006, $2.1 million, or 1 cent per share, for the fourth quarter of
2006, $2.5 million, or 1 cent per share, for the first quarter of 2007, $4.0 million, or 1 cent per share, for the second quarter of 2007 and $4.8 million, or 2 cents per share, for the third quarter of
2007. Results for the first nine months of 2007 and 2006 include after-tax restructuring charges of $11.3 million, or 4 cents per share, and $7.1 million, or 3 cents per share, respectively.
⁽²⁾Average equity was adjusted to reflect the merger with Jefferson-Pilot effective April 3, 2006.
⁽³⁾In the second quarter of 2007, we recognized certain adjustments that reduced operating revenue by $41 million. There were reductions to expenses that offset most of this reduction in revenue.

9/30/2007																						PAGE 7

*Consolidated Statements of Income*
Unaudited [Millions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Revenue*
Premiums	$	425.7		$	448.1		$	458.9		$	488.9		$	489.1			14.9	%	$	958.4		$	1,436.9			49.9	%
Surrender charges		26.6			29.9			26.9			28.1			25.6			-3.8	%		72.6			80.6			11.0	%
Mortality assessments ⁽¹⁾		294.9			295.9			311.2			299.6			320.7			8.7	%		735.8			931.5			26.6	%
Expense assessments ⁽¹⁾		357.8			432.3			441.0			429.9			505.1			41.2	%		1,037.4			1,376.1			32.6	%
Investment advisory fees		82.9			86.1			90.3			92.7			89.0			7.4	%		241.8			272.0			12.5	%
Communications revenue		59.8			69.6			67.2			57.4			59.7			-0.2	%		117.3			184.4			57.2	%
Net investment income		1,107.9			1,126.3			1,089.5			1,169.8			1,066.9			-3.7	%		2,854.5			3,326.2			16.5	%
Other revenue and fees		123.1			137.2			140.1			152.2			142.1			15.4	%		346.0			434.4			25.5	%
Amortization of deferred gain		18.8			18.8			18.6			18.6			18.6			-1.1	%		56.3			55.8			-0.9	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			7.8			0.6			100.0	%		1.0			8.7		NM
Realized gains (losses)		(10.5	)		13.9			26.2			(4.7	)		(36.6	)	NM				(16.5	)		(15.0	)		9.1	%
*Total Revenue*		2,487.2			2,658.4			2,670.4			2,740.3			2,680.9			7.8	%		6,404.6			8,091.7			26.3	%

*Benefits and Expenses*
Insurance benefits ⁽¹⁾		566.2			562.2			588.8			655.8			675.3			19.3	%		1,356.0			1,920.0			41.6	%
Interest credited to contractholder funds		634.4			646.5			604.5			631.0			625.7			-1.4	%		1,605.0			1,861.1			16.0	%
Communications expenses		31.4			36.9			41.2			31.1			33.4			6.4	%		61.2			105.7			72.7	%
Operating and acquisition expenses		677.6			763.1			738.4			762.6			765.7			13.0	%		1,817.1			2,266.6			24.7	%
Taxes, licenses and fees		50.3			48.0			66.1			52.5			53.1			5.6	%		131.2			171.7			30.9	%
Interest and debt expense		67.3			70.4			61.5			72.8			69.4			3.1	%		154.0			203.6			32.2	%
*Total Benefits and Expenses*		2,027.3			2,127.2			2,100.5			2,205.9			2,222.5			9.6	%		5,124.4			6,528.8			27.4	%


Income Before Federal Income Tax		459.9			531.3			569.9			534.5			458.4			-0.3	%		1,280.2			1,562.8			22.1	%

Federal income taxes		95.8			149.9			173.4			158.5			128.8			34.4	%		346.0			460.8			33.2	%
*Net Income*	$	364.1		$	381.3		$	396.5		$	376.0		$	329.6			-9.5	%	$	934.3		$	1,102.1			18.0	%


Roll Forward of Deferred Acquisition Costs	Three Months Ended																		Nine Months Ended
& Value of Business Acquired	Sept.			Dec.			March			June			Sept.						Sept.			Sept.
	2006			2006			2007			2007			2007						2006			2007
Balance at beginning of period	$	8,328.4		$	8,171.6		$	8,420.4		$	8,534.7		$	9,100.6					$	5,163.3		$	8,420.4
Cumulative effect of adoption of SOP 05-1		-			-			(66.1	)		-			-						-			(66.1	)
Deferral		424.3			517.9			487.4			504.9			511.4						1,060.4			1,503.7
Amortization net of interest: ^{(1) (2)}
Unlocking		3.7			10.6			19.6			26.7			0.3						27.2			46.6
Amortization excluding unlocking		(229.6	)		(289.0	)		(301.2	)		(271.3	)		(262.7	)					(640.3	)		(835.2	)
Deferrals, net of amortization included in operating and acquisition expenses		198.4			239.5			205.8			260.4			249.0						447.4			715.1
Adjustment related to realized (gains) losses
on available-for-sale securities		(8.9	)		(8.9	)		(17.9	)		(1.6	)		0.2						(38.7	)		(19.4	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(359.8	)		(17.4	)		(25.5	)		290.8			(27.9	)					55.8			237.5
Foreign currency translation adjustment		9.7			35.7			4.1			16.3			15.1						65.8			35.5
Business acquired		3.8			-			14.0			-			-						2,478.0			14.0
Balance at end of period	$	8,171.6		$	8,420.4		$	8,534.7		$	9,100.6		$	9,337.0					$	8,171.6		$	9,337.0

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	861.0		$	923.9		$	976.9		$	1,017.9		$	1,105.8					$	795.7		$	976.9
Cumulative effect of adoption of SOP 05-1		-			-			(2.0	)		-			-						-			(2.0	)
Deferral		71.0			77.9			77.2			125.8			97.0						171.2			300.0
Amortization net of interest: ⁽²⁾
Unlocking		21.2			0.7			1.7			6.9			(30.8	)					25.7			(22.3	)
Amortization excluding unlocking		(33.8	)		(43.5	)		(37.7	)		(52.9	)		(51.3	)					(100.5	)		(141.9	)
Deferrals, net of amortization included in expense assessments		58.3			35.1			41.1			79.8			14.9						96.4			135.8
Adjustment related to realized gains
on available-for-sale securities		(0.1	)		-			-			(0.1	)		-						(0.1	)		(0.1	)
Foreign currency translation adjustment		4.7			17.9			2.0			8.1			7.5						32.0			17.7
Balance at end of period	$	923.9		$	976.9		$	1,017.9		$	1,105.8		$	1,128.1					$	923.9		$	1,128.1

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	154.6		$	173.4		$	193.8		$	206.4		$	225.0					$	129.4		$	193.8
Cumulative effect of adoption of SOP 05-1		-			-			(2.8	)		-			-						-			(2.8	)
Deferral		22.2			28.4			23.7			27.4			29.8						57.8			80.9
Amortization net of interest: ⁽²⁾
Unlocking		2.1			0.9			1.0			0.8			0.9						3.6			2.8
Amortization excluding unlocking		(5.4	)		(8.8	)		(9.3	)		(9.6	)		(6.6	)					(17.3	)		(25.4	)
Deferrals, net of amortization included in insurance benefits or interest credited		18.9			20.5			15.5			18.7			24.1						44.1			58.2
Adjustment related to realized gains
on available-for-sale securities		(0.1	)		-			(0.1	)		-			-						(0.1	)		(0.1	)
Balance at end of period	$	173.4		$	193.8		$	206.4		$	225.0		$	249.1					$	173.4		$	249.1


⁽¹⁾In the second quarter of 2007, we recognized certain adjustments that reduced expense assessments by $26 million, reduced mortality assessments by $15 million,
increased insurance benefits by $3 million and reduced DAC amortization by $23 million. 0;
⁽²⁾Amortization net of interest has been restated for all periods in order to conform to the current period presentation, which separately breaks out Unlocking and Amortization
excluding unlocking. There was no impact to total Amortization net of interest in prior periods.

9/30/2007

PAGE 8

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

For the Quarter Ended September 30, 2007

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln

Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

82.7

42.6

0.6

336.8

25.6

0.9

489.1

Surrender charges

14.0

9.8

1.8

25.6

Mortality assessments

303.3

8.4

9.2

(0.3

)

0.3

320.7

Expense assessments

139.8

264.9

63.5

5.3

33.0

(15.6

)

14.3

505.1

Investment advisory fees

111.6

13.8

(36.4

)

89.0

Communications revenue

59.7

Net investment income

444.5

254.1

172.9

98.1

29.5

20.9

0.1

442.3

(395.5

)

1,066.9

Amortization of deferred gain

18.6

Other revenue and fees

6.0

94.9

5.2

1.2

1.3

38.5

1.4

(6.4

)

142.1

Total Operating Revenue

990.1

666.3

243.4

113.5

367.5

150.1

88.7

59.8

461.1

(423.7

)

2,716.9

Operating Expenses

Insurance benefits

258.5

110.9

35.9

235.0

30.2

4.5

0.5

675.3

Interest credited to contractholder funds

255.1

179.6

104.6

50.9

29.7

5.7

625.7

Communications expenses

33.4

Operating and acquisition expenses

191.6

228.5

82.5

10.5

73.3

112.1

42.5

3.7

449.8

(428.8

)

765.7

Taxes, licenses and fees

27.3

6.0

2.2

1.2

8.1

3.9

1.4

3.1

53.1

Interest

0.5

0.3

69.4

(0.9

)

69.4

Total Operating Expenses

732.6

525.5

189.3

98.4

316.4

116.0

72.7

38.8

556.6

(423.7

)

2,222.5

Income (loss) from Operations before Federal income taxes

257.6

140.7

54.1

15.1

51.2

34.1

15.9

21.1

(95.5

)

494.4

Federal income taxes

84.0

33.8

12.9

4.1

17.9

12.3

5.6

7.4

(36.5

)

141.5

Income from Operations

173.6

106.9

41.2

11.0

33.2

21.8

10.3

13.6

(58.9

)

352.9

9/30/2007

PAGE 8(B)

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

For the Quarter Ended September 30, 2006

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

87.0

12.3

0.3

304.1

21.1

0.9

425.7

Surrender charges

18.3

6.6

1.7

26.6

Mortality assessments

278.9

7.2

8.7

294.9

Expense assessments

86.1

189.3

54.0

4.5

23.9

357.8

Investment advisory fees

106.1

(23.3

)

82.9

Communications revenue

59.8

Net investment income

414.4

312.7

184.6

91.0

27.1

18.6

0.1

60.3

(0.7

)

1,107.9

Amortization of deferred gain

18.8

Other revenue and fees

10.6

75.7

4.9

1.3

0.9

34.3

5.8

(10.3

)

123.1

Total Operating Revenue

895.3

596.5

245.1

104.3

332.1

140.4

72.3

60.0

85.7

(34.3

)

2,497.4

Operating Expenses

Insurance benefits

261.1

27.4

35.6

213.3

25.0

3.9

566.2

Interest credited to contractholder funds

247.1

208.2

103.1

39.9

36.1

634.4

Communications expenses

31.4

Operating and acquisition expenses

179.3

222.4

73.2

10.3

66.8

117.6

34.5

4.1

3.3

(33.8

)

677.6

Taxes, licenses and fees

28.3

4.8

1.3

1.4

7.8

2.7

1.5

2.6

50.3

Interest

0.1

0.4

67.2

(0.5

)

67.3

Total Operating Expenses

715.7

462.9

177.6

87.2

287.9

120.3

59.5

37.4

113.1

(34.3

)

2,027.3

Income (loss) from Operations before Federal income taxes

179.6

133.6

67.5

17.1

44.2

20.1

12.8

22.6

(27.4

)

470.1

Federal income taxes

56.8

4.2

15.0

4.3

15.5

6.7

4.5

8.0

(15.9

)

99.1

Income from Operations

122.8

129.4

52.5

12.8

28.8

13.4

8.3

14.6

(11.5

)

371.1

9/30/2007

PAGE 9

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

Nine Months Ended September 30, 2007

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

258.3

72.0

1.3

1,029.5

74.1

1.7

1,436.9

Surrender charges

44.9

29.6

6.1

80.6

Mortality assessments

878.0

25.5

28.1

931.5

Expense assessments

321.6

740.8

186.2

17.4

110.1

(13.8

)

13.8

1,376.1

Investment advisory fees

338.7

13.8

(80.6

)

272.0

Communications revenue

184.4

Net investment income

1,391.8

822.6

535.5

292.2

85.8

59.6

0.6

534.7

(396.6

)

3,326.2

Amortization of deferred gain

55.8

Other revenue and fees

24.5

281.7

14.4

3.7

3.6

112.5

0.1

24.5

(30.6

)

434.4

Total Operating Revenue

2,919.0

1,946.7

742.2

340.1

1,119.0

451.2

271.9

185.0

616.8

(494.0

)

8,097.9

Operating Expenses

Insurance benefits

767.5

164.1

102.3

747.3

100.6

18.4

1,900.0

Interest credited to contractholder funds

760.8

536.0

313.5

146.0

104.6

1,861.1

Communications expenses

105.7

Operating and acquisition expenses

524.4

748.4

225.3

31.9

213.0

361.7

120.7

12.8

520.4

(491.9

)

2,266.6

Taxes, licenses and fees

86.8

20.6

11.7

3.9

27.3

12.0

4.1

5.3

171.7

Interest

0.9

1.1

203.7

(2.1

)

203.6

Total Operating Expenses

2,139.5

1,470.2

550.5

284.1

987.6

373.7

221.3

123.6

852.4

(494.0

)

6,508.8

Income (loss) from Operations before Federal income taxes

779.5

476.6

191.7

56.1

131.4

77.5

50.6

61.3

(235.6

)

1,589.1

Federal income taxes

262.8

118.5

53.5

16.8

46.1

28.2

17.7

21.7

(94.8

)

470.4

Income from Operations

516.7

358.0

138.2

39.3

85.3

49.3

32.9

39.6

(140.7

)

1,118.7

9/30/2007

PAGE 9(B)

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

Nine Months Ended September 30, 2006

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln

Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

228.0

36.8

1.4

633.1

57.6

1.5

958.4

Surrender charges

44.2

22.4

6.1

72.6

Mortality assessments

691.9

18.5

25.4

735.8

Expense assessments

233.5

540.0

164.3

12.6

86.7

0.3

1,037.4

Investment advisory fees

313.6

(71.8

)

241.8

Communications revenue

117.3

Net investment income

1,069.8

723.8

557.8

226.1

52.2

53.4

0.3

173.2

(2.0

)

2,854.5

Amortization of deferred gain

56.3

Other revenue and fees

30.0

200.8

15.1

4.0

1.7

101.0

0.1

12.9

(19.6

)

346.0

Total Operating Revenue

2,297.4

1,523.9

743.2

262.7

687.0

414.6

223.2

117.7

244.1

(93.4

)

6,420.2

Operating Expenses

Insurance benefits

637.3

93.1

98.8

439.3

77.8

9.6

1,356.0

Interest credited to contractholder funds

630.8

472.1

306.2

89.4

106.6

1,605.0

Communications expenses

61.2

Operating and acquisition expenses

451.2

601.5

210.2

19.7

130.8

342.9

100.9

11.9

40.2

(92.0

)

1,817.1

Taxes, licenses and fees

72.1

14.9

7.1

3.7

15.8

9.9

1.5

6.2

131.2

Interest

0.5

0.9

154.0

(1.4

)

154.0

Total Operating Expenses

1,791.4

1,182.0

523.5

211.5

585.9

352.7

178.8

75.5

316.6

(93.4

)

5,124.4

Income (loss) from Operations before Federal income taxes

505.9

341.8

219.7

51.1

101.2

61.9

44.4

42.2

(72.4

)

1,295.8

Federal income taxes

167.0

57.0

60.4

14.6

35.4

21.2

15.5

15.7

(35.0

)

351.8

Income from Operations

339.0

284.8

159.3

36.5

65.8

40.8

28.9

26.5

(37.4

)

944.1

9/30/2007										PAGE 10
*Consolidated Balance Sheet*
Unaudited [Millions of Dollars, except Common Share Data]



	Sept.			Dec.			March			June			Sept.
	2006			2006			2007			2007			2007
*ASSETS*
*Investments*
Corporate bonds	$	45,345.3		$	45,489.4		$	45,484.0		$	44,023.4		$	44,089.7
U.S. government bonds		291.6			263.4			244.3			248.1			239.4
Foreign government bonds		1,144.4			1,141.6			1,077.1			975.0			1,030.0
Asset and mortgage backed securities		8,765.1			8,691.3			9,186.2			9,946.2			10,479.7
State and municipal bonds		160.7			159.4			155.5			158.7			152.1
Preferred stocks - redeemable		117.8			108.3			108.4			95.5			95.3
Common stocks		506.3			525.5			503.8			487.9			499.3
Preferred stocks-equity		155.7			174.7			210.1			198.9			171.0
Total AFS Securities		56,486.9			56,553.7			56,969.5			56,133.8			56,756.4
Trading securities		3,172.5			3,036.3			2,909.7			2,818.3			2,716.6
Mortgage loans		7,580.5			7,384.3			7,416.0			7,310.8			7,280.7
Real estate		424.0			421.3			406.2			387.6			385.0
Policy loans		2,724.9			2,759.7			2,766.8			2,787.0			2,790.2
Other long-term investments		1,218.7			1,332.4			1,381.2			1,430.2			1,618.7
*Total Investments*		71,607.5			71,487.6			71,849.3			70,867.7			71,547.6

Cash and invested cash		1,108.3			1,620.6			900.0			988.6			1,326.2
Premiums and fees receivable		345.6			356.2			374.9			432.3			401.2
Accrued investment income		928.2			866.2			919.2			861.0			916.5
Amount recoverable from reinsurers		8,007.3			7,939.1			8,132.1			8,179.1			8,226.7
Deferred acquisition costs and VOBA		8,171.6			8,420.4			8,534.7			9,100.6			9,337.0
Goodwill		4,498.0			4,499.5			4,520.7			4,521.4			4,521.8
Other		2,703.1			2,770.4			2,948.1			3,201.8			3,036.9
Assets held in separate accounts		74,357.1			80,533.7			83,147.5			89,497.2			92,903.1
*Total Assets*	$	171,726.6		$	178,493.7		$	181,326.4		$	187,649.6		$	192,216.9

*LIABILITIES and SHAREHOLDERS' EQUITY*
*Liabilities*
Insurance and Investment Contract Liabilities:
Reserves	$	13,513.4		$	13,622.1		$	13,864.9		$	13,860.8		$	13,944.9
Unpaid claims		1,206.9			1,149.1			1,149.5			1,171.2			1,148.3
Premium deposit funds		20,708.6			20,541.4			20,115.8			20,201.6			19,885.4
Policyholders' funds ⁽¹⁾		38,149.4			38,603.6			38,924.9			39,216.4			39,911.3
Total Insurance and Investment Contract Liabilities		73,578.3			73,916.1			74,055.2			74,450.0			74,889.9

Short-term debt		559.2			657.6			492.8			230.1			326.3
Long-term debt - senior notes		2,330.4			2,231.0			2,483.4			2,382.4			2,682.5
Long-term debt - subordinated
Capital securities		1,071.9			1,072.0			1,570.7			1,570.8			1,570.9
Junior subordinated debentures issued to
affiliated trusts		332.5			154.6			154.6			154.6			154.6
Embedded derivative - modco		232.5			228.7			229.8			157.5			191.5
Deferred gain on indemnity reinsurance		778.7			759.6			740.7			734.3			715.1
Federal income taxes		911.1			977.9			1,147.6			924.6			998.5
Other liabilities⁽¹⁾		5,531.7			5,761.5			5,271.8			5,712.4			5,821.5
Liabilities related to separate accounts		74,357.1			80,533.7			83,147.5			89,497.2			92,903.1
*Total Liabilities*		159,683.5			166,292.7			169,294.2			175,814.0			180,253.8

Preferred Stock		0.5			0.5			0.5			0.5			0.5
Capital stock		7,448.7			7,450.7			7,318.5			7,362.1			7,308.6
Retained earnings (excl. cumulative effect adjustments)		3,986.7			4,136.7			4,109.8			4,380.1			4,513.4
Cumulative effect of adoption of FIN-48		-			-			(15.4	)		(15.4	)		(15.4	)
Cumulative effect of adoption of SOP 05-1		-			-			(40.9	)		(40.9	)		(40.9	)
Unrealized gains on investments		478.0			492.8			528.1			16.6			17.9
Gains - derivatives		55.9			39.2			46.8			35.5			70.0
Foreign currency		136.5			165.1			168.4			181.4			193.6
Minimum pension liability		(63.2	)		-			-			-			-
Funded status of employee benefit plans		-			(84.0	)		(83.6	)		(84.2	)		(84.6	)
*Total Shareholders' Equity*		12,043.2			12,201.0			12,032.2			11,835.7			11,963.0

*Total Liabilities and Shareholders' Equity*	$	171,726.6		$	178,493.7		$	181,328.0		$	187,649.6		$	192,216.9

*Shareholders' Equity Per Share*	$	43.39		$	44.21		$	44.42		$	43.57		$	44.41

Book Value, Excluding AOCI	$	41.20		$	41.99		$	41.98		$	43.02		$	43.68
Common shares outstanding -assuming conv of
preferreds (in millions)		277.6			276.0			270.9			271.6			269.4

⁽¹⁾ We reclassified historical amounts related to retained assets from Other liabilities to Policyholders' funds in order to conform to the
current period presentation. The impact of these reclassifications was $281.9 million in 2Q07, $312.2 million in 1Q07, $328.4 million
in 4Q06 and $341.1 million in 3Q06.

9/30/2007																					PAGE 11

*Balance Sheet Data - Segment Highlights*
Unaudited [Millions of Dollars]


	Individual				Employer
	Markets				Markets
As of September 30, 2007	Annuities		Life		Defined Contribution		Executive Benefits		Group Protection		Investment Management		Lincoln UK		Lincoln Financial Media		Other Operations⁽¹⁾				Consolidated

*Assets*
Allocated Investments	$	17,711.6	$	29,434.0	$	11,499.7	$	6,180.5	$	1,910.5	$	-	$	1,220.8	$	-		$	3,590.4		$	71,547.6
DAC and VOBA		2,347.4		5,259.6		531.8		273.2		116.4		-		807.3		-			1.2			9,337.0
Goodwill		1,045.6		2,201.0		20.2		-		274.3		262.0		17.0		701.7			-			4,521.8
DSI and other intangibles		248.7		94.0		3.4		-		-		5.7		-		660.5			-			1,012.3
Amounts recoverable from reinsurers		771.5		1,793.8		-		4.2		30.3		-		73.9		-			5,553.0			8,226.7
Assets held in separate accounts		58,148.1		4,702.0		18,548.3		1,871.1		-		-		9,191.8		-			441.8			92,903.1

*Liabilities and Capital*
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		522.7		5,544.0		-		1,775.0		1,246.2		-		1,170.2		-			4,835.2			15,093.2
Contractholder funds		17,770.4		25,043.5		10,883.8		4,312.1		16.1		-		423.6		-			1,347.2			59,796.7
Total Insurance and Inv Contract Liabilities		18,293.1		30,587.4		10,883.8		6,087.1		1,262.3		-		1,593.8		-			6,182.4			74,889.9

Allocated capital ⁽²⁾		3,545.4		8,014.4		906.8		565.5		944.6		316.0		375.2		1,166.3			(4,067.9	)		11,766.2



As of December 31, 2006

*Assets*
Allocated Investments	$	18,686.2	$	27,843.9	$	11,762.6	$	6,088.9	$	1,833.6	$	-	$	1,101.1	$	-		$	4,171.4		$	71,487.6
DAC and VOBA		2,050.4		4,659.4		497.6		265.3		137.6		-		809.0		-			1.3			8,420.4
Goodwill		1,031.6		2,181.3		20.2		-		281.0		261.7		16.2		707.6			-			4,499.5
DSI and other intangibles		193.7		97.0		0.1		-		-		9.3		-		663.1			-			963.2
Amounts recoverable from reinsurers		836.9		1,817.7		-		5.3		27.5		-		70.2		-			5,181.5			7,939.1
Assets held in separate accounts ⁽³⁾		48,014.7		4,256.0		17,459.2		1,617.7		-		-		8,756.9		-			429.3			80,533.7

*Liabilities and Capital*
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		438.1		5,640.7		-		1,778.3		1,183.4		-		1,118.8		-			4,611.8			14,771.2
Contractholder funds ⁽⁴⁾		18,230.4		23,738.0		10,982.9		4,025.5		16.8		-		435.6		-			1,715.9			59,145.0
Total Insurance and Inv Contract Liabilities		18,668.5		29,378.6		10,982.9		5,803.8		1,200.2		-		1,554.4		-			6,327.7			73,916.1

Allocated capital ⁽²⁾		3,432.5		7,345.1		959.8		531.7		923.1		307.8		385.0		1,161.9			(3,458.9	)		11,587.9

⁽¹⁾Includes consolidating adjustments.
⁽²⁾ Allocated capital is based on internal economic capital models plus certain other items (principally intangibles including DAC and VOBA, goodwill and other items).
⁽³⁾ Individual Markets-Life has been decreased by $784.3 million and Employer Markets-Executive Benefits has been increased by $784.3 million to correct previously reported values.
⁽⁴⁾We reclassified historical amounts related to retained assets from Other liabilities to Policyholders' funds in order to conform to the current period presentation. These reclassifications increased Individual Markets Annuities by $24.4 million, Individual Markets Life by $304.0 million and Consolidated results by $328.4 million.

9/30/2007																						PAGE 12
*Individual Markets - Individual Life Insurance*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	87.0		$	93.5		$	87.7		$	87.8		$	82.7			-4.9	%	$	228.0		$	258.3			13.3	%
Surrender charges		18.3			16.1			15.2			15.7			14.0			-23.5	%		44.2			44.9
Mortality assessments ⁽¹⁾		278.9			278.4			292.3			282.4			303.3			8.7	%		691.9			878.0			26.9	%
Expense assessments ⁽¹⁾		86.1			116.4			111.9			69.9			139.8			62.4	%		233.5			321.6			37.7	%
Net investment income		414.4			441.1			454.0			493.3			444.5			7.3	%		1,069.8			1,391.8			30.1	%
Other revenue and fees		10.6			13.0			10.2			8.3			6.0			-43.4	%		30.0			24.5			-18.3	%
*Total Operating Revenue*		895.3			958.4			971.4			957.5			990.1			10.6	%		2,297.4			2,919.0			27.1	%

*Operating Expenses*
Insurance benefits ⁽¹⁾		261.1			249.1			246.0			263.0			258.5			-1.0	%		637.3			767.5			20.4	%
Interest credited to contractholder funds		247.1			251.3			251.7			254.0			255.1			3.2	%		630.8			760.8			20.6	%
Operating and acquisition expenses		207.6			219.0			221.2			171.0			219.0			5.5	%		523.3			611.2			16.8	%
*Total Operating Expenses*		715.7			719.4			718.9			688.0			732.6			2.4	%		1,791.4			2,139.5			19.4	%

Income from operations before Federal income taxes		179.6			239.1			252.5			269.4			257.6			43.4	%		505.9			779.5			54.1	%

Federal income taxes		56.8			81.7			85.9			93.0			84.0			47.9	%		167.0			262.8			57.4	%

*Income from Operations*	$	122.8		$	157.4		$	166.6		$	176.4		$	173.6			41.4	%	$	339.0		$	516.7			52.4	%

*Effective tax rate*		31.6	%		34.2	%		34.0	%		34.5	%		32.6	%					33.0	%		33.7	%

*Average equity*	$	7,223.9		$	7,292.7		$	7,557.8		$	7,790.5		$	7,911.1					$	5,847.2		$	7,753.1
*Return on average equity*		6.8	%		8.6	%		8.8	%		9.1	%		8.8	%					7.7	%		8.9	%


Operating and Acquisition Expenses
Commissions	$	167.1		$	226.5		$	227.1		$	211.7		$	213.1			27.6	%	$	385.1		$	651.9			69.3	%
General and administrative expenses		122.5			116.3			111.0			115.6			104.6			-14.6	%		286.0			331.2			15.8	%
Taxes, licenses and fees		28.3			27.0			32.9			26.6			27.3			-3.3	%		72.1			86.8			20.4	%
Total commissions and expenses incurred		317.9			369.8			371.1			353.8			345.1			8.6	%		743.2			1,070.0			44.0	%
Less: commissions and expenses capitalized		(226.6	)		(291.3	)		(288.9	)		(272.4	)		(270.5	)		-19.3	%		(516.5	)		(831.8	)		-61.0	%
Amortization of DAC and VOBA, net of interest		116.3			140.5			139.1			89.6			144.4			24.1	%		296.6			373.0			25.8	%
Net Operating and Acquisition Expenses	$	207.6		$	219.0		$	221.2		$	171.0		$	219.0			5.5	%	$	523.3		$	611.2			16.8	%

General and administrative expenses -
basis points on account values - Annualized		191			178			166			170			151			(40	)		175			162			(13	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	4,592.2		$	4,524.7		$	4,659.4		$	4,795.8		$	5,126.4					$	2,543.9		$	4,659.4
Deferral		226.6			291.3			288.9			272.4			270.5						516.5			831.8
Amortization net of interest:⁽¹⁾
Unlocking		(5.1	)		2.0			11.3			20.8			(3.8	)					8.3			28.4
Amortization excluding unlocking		(111.2	)		(142.5	)		(150.4	)		(110.5	)		(140.6	)					(304.9	)		(401.4	)
Deferrals, net of amortization included in operating and acquisition expenses		110.3			150.8			149.8			182.8			126.1						219.9			458.7
Adjustment related to realized (gains) losses
on available-for-sale securities		(3.8	)		(6.7	)		(12.5	)		(2.4	)		0.6						(15.1	)		(14.3	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(174.0	)		(9.5	)		(0.9	)		150.2			6.5						9.4			155.8
Business acquired		-			-			-			-			-						1,766.6			-
Balance at end of period	$	4,524.7		$	4,659.4		$	4,795.8		$	5,126.4		$	5,259.6					$	4,524.7		$	5,259.6

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	375.3		$	415.9		$	449.5		$	490.6		$	569.0					$	342.6		$	449.5
Deferral		58.9			65.2			65.5			112.4			83.9						136.4			261.8
Amortization net of interest:
Unlocking		5.0			0.1			2.5			7.1			(27.0	)					7.9			(17.4	)
Amortization excluding unlocking		(23.3	)		(31.7	)		(26.9	)		(41.1	)		(40.7	)					(71.0	)		(108.7	)
Deferrals, net of amortization included in expense assessments		40.6			33.6			41.0			78.4			16.2						73.3			135.7
Balance at end of period	$	415.9		$	449.5		$	490.6		$	569.0		$	585.2					$	415.9		$	585.2

⁽¹⁾In the second quarter of 2007, we recognized certain adjustments that reduced expense assessments by $26 million, reduced mortality assessments by $15 million, increased insurance
benefits by $3 million and reduced DAC amortization by $23 million.

9/30/2007																		PAGE 13
*Individual Markets- Individual Life Insurance*
*Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended													Nine Months Ended
	Sept.		Dec.		March		June		Sept.		%			Sept.		Sept.		%
	2006		2006		2007		2007		2007		Change			2006		2007		Change
*Sales by Product(Millions)⁽¹⁾*
Universal Life
Excluding MoneyGuard	$	119.9	$	177.6	$	166.2	$	145.0	$	143.9		20.0	%	$	258.6	$	455.0		75.9	%
MoneyGuard		8.3		7.8		7.4		9.9		10.9		31.3	%		23.5		28.1		19.6	%
Total		128.2		185.4		173.6		154.9		154.8		20.7	%		282.1		483.2		71.3	%
Variable universal life		13.0		22.1		20.6		17.3		17.7		36.2	%		38.7		55.5		43.4	%
Whole life		0.7		0.6		0.1		0.1		0.3		-57.1	%		1.7		0.6		-64.7	%
Term		10.7		10.0		9.3		7.8		7.2		-32.7	%		30.2		24.2		-19.9	%
Total	$	152.5	$	218.1	$	203.5	$	180.0	$	179.9		18.0	%	$	352.8	$	563.4		59.7	%



*First-Year Paid Premiums (Millions)*
Universal Life
Excluding MoneyGuard	$	269.0	$	351.0	$	367.9	$	315.7	$	303.8		12.9	%	$	638.5	$	987.4		54.6	%
MoneyGuard		54.8		52.3		49.2		65.9		72.4		32.1	%		156.4		187.4		19.8	%
Total		323.9		403.2		417.1		381.6		376.2		16.1	%		794.8		1,174.9		47.8	%
Variable universal life		34.4		53.4		52.5		47.8		46.4		34.9	%		102.0		146.6		43.7	%
Whole life		12.0		16.5		8.4		10.1		11.8		-1.7	%		29.8		30.3		1.7	%
Term		10.4		9.6		9.1		8.2		7.3		-29.8	%		30.4		24.5		-19.4	%
Total	$	380.6	$	482.7	$	487.0	$	447.7	$	441.6		16.0	%	$	957.0	$	1,376.3		43.8	%



*Life Insurance In-Force (Billions)*
Universal life & other	$	263.485	$	267.228	$	272.921	$	276.040	$	279.640		6.1	%	$	263.485	$	279.640		6.1	%
Term insurance		232.214		234.148		235.491		236.155		238.260		2.6	%		232.214		238.260		2.6	%
*Total Life Segment In-Force*	$	495.699	$	501.376	$	508.411	$	512.195	$	517.900		4.5	%	$	495.699	$	517.900		4.5	%




⁽¹⁾Sales for Individual Life Insurance consist of first year commissionable premium for Universal life ("UL"), including Moneyguard, including UL internal replacements, and first year paid premiums for Whole life and Term products.

9/30/2007																						PAGE 14
*Individual Markets - Individual Life Insurance*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
Interest Sensitive Life-Balance Beginning-of-Period	$	21.285		$	21.516		$	21.890		$	22.228		$	22.517			5.8	%	$	11.809		$	21.890			85.4	%
Business acquired		-			-			-			-			-		NM				9.150			-			-100.0	%
Deposits		0.717			0.948			0.882			0.864			0.842			17.4	%		1.917			2.588			35.0	%
Withdrawals & deaths		(0.275	)		(0.301	)		(0.264	)		(0.311	)		(0.258	)		6.2	%		(0.775	)		(0.833	)		-7.5	%
Net flows		0.442			0.647			0.618			0.553			0.585			32.4	%		1.143			1.755			53.5	%
Policyholder assessments⁽⁶⁾		(0.449	)		(0.516	)		(0.523	)		(0.507	)		(0.527	)		-17.4	%		(1.189	)		(1.557	)		-31.0	%
Interest credited		0.239			0.242			0.243			0.243			0.243			1.7	%		0.604			0.729			20.7	%
*Interest Sensitive Life-Balance End-of-Period ⁽¹⁾*	$	21.516		$	21.890		$	22.228		$	22.517		$	22.818			6.1	%	$	21.516		$	22.818			6.1	%

Variable Universal Life-Balance Beginning of Period	$	4.194		$	4.305		$	4.600		$	4.696		$	4.948			18.0	%	$	2.242		$	4.600			105.2	%
Business acquired		-			-			-			-			-		NM				1.918			-			-100.0	%
Deposits		0.036			0.153			0.157			0.142			0.137			280.6	%		0.346			0.436			26.0	%
Withdrawals & deaths		0.013			(0.073	)		(0.077	)		(0.109	)		(0.087	)	NM				(0.194	)		(0.273	)		-40.7	%
Net flows		0.049			0.080			0.080			0.033			0.050			2.0	%		0.153			0.163			6.5	%
Policyholder assessments		(0.076	)		(0.079	)		(0.079	)		(0.080	)		(0.080	)		-5.3	%		(0.197	)		(0.239	)		-21.3	%
Investment income and change in market value		0.137			0.294			0.095			0.299			0.139			1.5	%		0.189			0.532			181.5	%
*Variable Universal Life -Balance End-of-Period*	$	4.305		$	4.600		$	4.696		$	4.948		$	5.057			17.5	%	$	4.305		$	5.057			17.5	%

*Total Segment- Life Insurance Account Value Roll Forward*
Balance Beginning-of-Period	$	25.479		$	25.821		$	26.490		$	26.924		$	27.465			7.8	%	$	14.051		$	26.490			88.5	%
Business acquired		-			-			-			-			-		NM				11.068			-			-100.0	%
Deposits		0.753			1.101			1.039			1.005			0.980			30.1	%		2.264			3.024			33.6	%
Withdrawals & deaths		(0.262	)		(0.374	)		(0.341	)		(0.420	)		(0.345	)		-31.7	%		(0.968	)		(1.106	)		-14.3	%
Net flows		0.491			0.727			0.698			0.586			0.635			29.3	%		1.296			1.918			48.0	%
Policyholder assessments ⁽⁶⁾		(0.524	)		(0.595	)		(0.602	)		(0.586	)		(0.607	)		-15.8	%		(1.386	)		(1.795	)		-29.5	%
Investment income and change in market value		0.377			0.536			0.338			0.542			0.382			1.3	%		0.793			1.262			59.1	%
*Total Segment -Balance End-of-Period*	$	25.821		$	26.490		$	26.924		$	27.465		$	27.875			8.0	%	$	25.821		$	27.875			8.0	%


Life Product Spread Information ⁽²⁾
																Change									Change
*Interest Sensitive Products*																(Basis Points)									(Basis Points)
Net investment income ^{(3) (4) (5)}		6.08	%		6.44	%		6.48	%		6.99	%		6.09	%		1			6.23	%		6.52	%		29
Interest credited to policyholders		4.52	%		4.52	%		4.46	%		4.45	%		4.41	%		(11	)		4.51	%		4.44	%		(7	)
Spread ^{(3) (4)}		1.57	%		1.92	%		2.02	%		2.54	%		1.68	%		11			1.72	%		2.08	%		36

*Traditional Products*
Net investment income ⁽³⁾		6.60	%		6.51	%		6.41	%		6.48	%		6.18	%		(42	)		6.63	%		6.36	%		(27	)


⁽¹⁾ Includes universal life, interest sensitive life, and the 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. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations. 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 traditional investment portfolios divided by
average earning assets. As of September 30, 2007, interest sensitive products represented approximately 82% of total interest sensitive and traditional 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 9 bps in the 3rd quarter of 2007, 22 bps in the 2nd quarter of 2007, 21 bps in the 1st quarter of 2007, 12 bps in the 4th quarter of
2006 and 20 bps in the 3rd quarter of 2006. There was an impact on traditional products of 9 bps in the 3rd quarter of 2007, 14 bps in the 2nd quarter of 2007, 2 bps in the 1st quarter of 2007,
2 bps in the 4th quarter of 2006 and 15 bps in the 3rd quarter of 2006.
⁽⁴⁾ The net investment income and spread above include earnings from alternative investments, such as limited partnerships. The impact of these investments on investment income yields for
interest senstive products was -4 bps in the 3rd quarter of 2007, 70 bps in the 2nd quarter of 2007, 14 bps in the 1st quarter of 2007, 24 bps in the 4th quarter of 2006 and -22 bps in the 3rd
quarter of 2006. The impact of these investments on traditional products was -6 bps in the 3rd quarter of 2007.
⁽⁵⁾The net investment income and spread above is partially offset by amortization associated with prepayment fee income. The impact of this offset was -0- bps in the 3rd quarter of 2007 and 8 bps in the 2nd quarter of 2007.
⁽⁶⁾Interest sensitive policyholder assessments in the second quarter of 2007 includes +.017 related to certain adjustments.

9/30/2007																						PAGE 15
*Individual Markets - Individual Annuities*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	12.3		$	10.7		$	12.8		$	16.6		$	42.6			246.3	%	$	36.8		$	72.0			95.7	%
Surrender charges		6.6			12.3			9.7			10.1			9.8			48.5	%		22.4			29.6			32.3	%
Expense assessments		189.3			215.2			226.0			249.9			264.9			39.9	%		540.0			740.8			37.2	%
Net investment income		312.7			314.8			266.3			302.2			254.1			-18.7	%		723.8			822.6			13.6	%
Other revenue and fees ⁽¹⁾		75.7			84.3			90.4			96.4			94.9			25.4	%		200.8			281.7			40.3	%
*Total Operating Revenue*		596.5			637.3			605.1			675.3			666.3			11.7	%		1,523.9			1,946.7			27.8	%

*Operating Expenses*
Insurance benefits		27.4			11.7			21.4			31.8			110.9		NM				93.1			164.1			76.2	%
Interest credited to contractholder funds		208.2			211.7			166.5			189.9			179.6			-13.7	%		472.1			536.0			13.5	%
Operating and acquisition expenses		227.3			252.6			256.7			278.4			235.0			3.4	%		616.8			770.0			24.8	%
*Total Operating Expenses*		462.9			476.0			444.6			500.0			525.5			13.5	%		1,182.0			1,470.2			24.4	%

Income from operations before Federal income taxes		133.6			161.4			160.5			175.3			140.7			5.3	%		341.8			476.6			39.4	%

Federal income taxes		4.2			37.6			39.5			45.2			33.8		NM				57.0			118.5			107.9	%

*Income from Operations*	$	129.4		$	123.8		$	121.0		$	130.1		$	106.9			-17.4	%	$	284.8		$	358.0			25.7	%

*Effective tax rate*		3.1	%		23.3	%		24.6	%		25.8	%		24.0	%					16.7	%		24.9	%

*Average equity*	$	3,310.4		$	3,388.1		$	3,442.3		$	3,491.1		$	3,537.8					$	2,774.6		$	3,490.4
*Return on average equity*		15.6	%		14.6	%		14.1	%		14.9	%		12.1	%					13.7	%		13.7	%

*Income from Operations - basis points on*
*average account values*		84			76			72			73			58						66			67

Operating and Acquisition Expenses
Commissions	$	146.2		$	167.2		$	152.1		$	178.8		$	188.9			29.2	%	$	397.9		$	519.8			30.6	%
General and administrative expenses		81.8			80.9			69.5			82.4			81.4			-0.5	%		217.9			233.3			7.1	%
Broker-dealer commissions and general and
administrative expenses		76.6			80.0			87.2			92.8			91.8			19.8	%		202.5			271.9			34.3	%
Taxes, licenses and fees		4.8			4.5			8.9			5.7			6.0			25.0	%		14.9			20.6			38.6	%
Total commissions and expenses incurred		309.4			332.6			317.7			359.7			368.2			19.0	%		833.1			1,045.6			25.5	%
Less: commissions and expenses capitalized		(157.6	)		(181.8	)		(157.6	)		(189.3	)		(196.1	)		-24.4	%		(430.3	)		(543.0	)		-26.2	%
Amortization of DAC and VOBA, net of interest	��	75.6			101.7			96.6			108.0			62.9			-16.8	%		214.0			267.5			25.0	%

Net Operating and Acquisition Expenses	$	227.3		$	252.6		$	256.7		$	278.4		$	235.0			3.4	%	$	616.8		$	770.0			24.8	%

General and administrative expenses - basis
points on gross account values - Annualized ⁽²⁾		53			50			41			46			44			(9	)		50			44			(6	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	1,994.4		$	1,974.1		$	2,050.4		$	2,082.0		$	2,236.8					$	1,328.0		$	2,050.4
Cumulative effect of adoption of SOP 05-1		-			-			(27.2	)		-			-						-			(27.2	)
Deferral		157.6			181.8			157.6			189.3			196.1						430.3			543.0
Amortization net of interest
Unlocking		5.4			8.0			10.8			10.3			11.4						15.2			32.5
Excluding unlocking		(80.9	)		(109.8	)		(107.4	)		(118.3	)		(74.3	)					(229.2	)		(300.0	)
Deferrals, net of amortization included in operating and acquisition expenses		82.0			80.0			61.0			81.4			133.2						216.3			275.6
Adjustment related to realized (gains) losses
on available-for-sale securities		(2.4	)		(1.1	)		(2.2	)		1.0			0.2						(9.2	)		(1.0	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(103.6	)		(2.7	)		(14.0	)		72.4			(22.8	)					(13.6	)		35.7
Business acquired		3.8			-			14.0			-			-						452.7			14.0
Balance at end of period	$	1,974.1		$	2,050.4		$	2,082.0		$	2,236.8		$	2,347.4					$	1,974.1		$	2,347.4

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	84.8		$	94.6		$	100.9		$	104.6		$	111.9					$	72.0		$	100.9
Cumulative effect of adoption of SOP 05-1		-			-			(2.0	)		-			-						-			(2.0	)
Deferral		10.0			10.6			9.8			11.8			11.5						29.1			33.1
Amortization net of interest:
Unlocking		3.6			0.5			0.5			0.2			1.4						4.1			2.2
Amortization excluding unlocking		(3.7	)		(4.7	)		(4.4	)		(4.7	)		(2.8	)					(10.5	)		(12.0	)
Deferrals, net of amortization included in expense assessments		9.8			6.3			5.9			7.3			10.1						22.7			23.3
Adjustment related to realized gains
on available-for-sale securities		(0.1	)		-			-			(0.1	)		-						(0.1	)		(0.1	)
Balance at end of period	$	94.6		$	100.9		$	104.6		$	111.9		$	122.0					$	94.6		$	122.0

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	154.6		$	173.4		$	193.7		$	206.2		$	224.7					$	129.4		$	193.7
Cumulative effect of adoption of SOP 05-1		-			-			(2.8	)		-			-						-			(2.8	)
Deferral		22.2			28.2			23.7			27.3			29.7						57.8			80.6
Amortization net of interest:
Unlocking		2.1			0.9			1.0			0.8			0.9						3.6			2.8
Amortization excluding unlocking		(5.4	)		(8.8	)		(9.3	)		(9.6	)		(6.6	)					(17.3	)		(25.5	)
Deferrals, net of amortization included in insurance benefits or interest credited		18.9			20.3			15.4			18.5			24.0						44.1			57.9
Adjustment related to realized gains
on available-for-sale securities		(0.1	)		-			(0.1	)		(0.0	)		(0.0	)					(0.1	)		(0.2	)
Balance at end of period	$	173.4		$	193.7		$	206.2		$	224.7		$	248.7					$	173.4		$	248.7

⁽¹⁾ Primarily broker-dealer revenue.
⁽²⁾ Includes distribution costs.

9/30/2007																						PAGE 16
*Individual Markets - Individual Annuities*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change

*Fixed Annuities - Balance at Beginning of Period*	$	19.533		$	18.939		$	18.545		$	18.139		$	17.867			-8.5	%	$	10.840		$	18.545			71.1	%

Business acquired		-			-			0.040			-			-		NM				9.343			0.040			-99.6	%
Gross deposits		1.062			1.100			0.821			0.982			1.231			15.9	%		2.405			3.034			26.2	%
Withdrawals & deaths		(1.405	)		(1.162	)		(0.887	)		(0.892	)		(0.891	)		36.6	%		(2.850	)		(2.671	)		6.3	%
Net flows		(0.344	)		(0.062	)		(0.066	)		0.090			0.340			198.8	%		(0.445	)		0.363			181.6	%
Transfer from (to) variable annuities		(0.483	)		(0.561	)		(0.557	)		(0.560	)		(0.589	)		-21.9	%		(1.330	)		(1.706	)		-28.3	%
Interest credited		0.211			0.201			0.153			0.172			0.166			-21.3	%		0.473			0.491			3.8	%
Sales inducements deferred		0.022			0.028			0.024			0.027			0.030			36.4	%		0.058			0.081			39.7	%
*Fixed Annuities - Gross*		18.939			18.545			18.139			17.867			17.813			-5.9	%		18.939			17.813			-5.9	%
Reinsurance ceded		(2.045	)		(1.812	)		(1.689	)		(1.598	)		(1.430	)		30.1	%		(2.045	)		(1.430	)		30.1	%
*Fixed Annuities - Balance at End of* *Period ⁽¹⁾*	$	16.894		$	16.733		$	16.449		$	16.270		$	16.383			-3.0	%	$	16.894		$	16.383			-3.0	%


*Variable Annuities - Balance at Beginning of Period*	$	41.537		$	43.977		$	48.169		$	50.300		$	55.171			32.8	%	$	37.655		$	48.169			27.9	%

Business acquired		-			-			-			-			-		NM				0.250			-			-100.0	%
Gross deposits		1.658			2.061			2.000			2.295			2.247			35.5	%		5.191			6.543			26.0	%
Withdrawals & deaths		(1.011	)		(1.107	)		(1.179	)		(1.247	)		(1.296	)		-28.2	%		(2.973	)		(3.722	)		-25.2	%
Net flows		0.648			0.954			0.821			1.048			0.951			46.8	%		2.218			2.820			27.1	%
Transfer from (to) fixed annuities		0.483			0.560			0.556			0.560			0.589			21.9	%		1.330			1.706			28.3	%
Investment increase & change in market value		1.309			2.678			0.754			3.263			1.582			20.9	%		2.524			5.598			121.8	%
*Variable Annuities - Balance at End of* *Period ⁽²⁾*	$	43.977		$	48.169		$	50.300		$	55.171		$	58.293			32.6	%	$	43.977		$	58.293			32.6	%


*Total Annuities - Balance at Beginning of Period*	$	61.070		$	62.916		$	66.714		$	68.438		$	73.038			19.6	%	$	48.495		$	66.714			37.6	%

Business acquired		-			-			0.040			-			-		NM				9.593			0.040			-99.6	%
Gross deposits		2.720			3.161			2.821			3.277			3.478			27.9	%		7.596			9.576			26.1	%
Withdrawals & deaths		(2.416	)		(2.269	)		(2.067	)		(2.139	)		(2.187	)		9.5	%		(5.823	)		(6.393	)		-9.8	%
Net flows		0.304			0.892			0.754			1.138			1.291		NM				1.773			3.183			79.5	%
Transfers		-			(0.001	)		(0.001	)		-			-		NM				-			(0.001	)	NM
Interest credited & change in market value		1.520			2.879			0.907			3.435			1.748			15.0	%		2.997			6.089			103.2	%
Sales inducements deferred		0.022			0.028			0.024			0.027			0.030			36.4	%		0.058			0.081			39.7	%
*Total Annuities - Gross*		62.916			66.714			68.438			73.038			76.106			21.0	%		62.916			76.106			21.0	%
Reinsurance ceded		(2.045	)		(1.812	)		(1.689	)		(1.598	)		(1.430	)		30.1	%		(2.045	)		(1.430	)		30.1	%
*Total Annuities (Net of Ceded) - Balance at End of Period*	$	60.872		$	64.902		$	66.749		$	71.441		$	74.676			22.7	%	$	60.872		$	74.676			22.7	%


*Variable Annuities Under Agreement - Included above*	$	0.169		$	0.170		$	0.163		$	0.164		$	0.161			-4.7	%	$	0.169		$	0.161			-4.7	%

*Incremental Deposits ⁽³⁾:*
Fixed annuities	$	1.058		$	1.086		$	0.815		$	0.976		$	1.224			15.7	%	$	2.381		$	3.015			26.6	%
Variable annuities		1.623			2.036			1.979			2.265			2.217			36.6	%		5.123			6.461			26.1	%
*Total Incremental Deposits*	$	2.681		$	3.122		$	2.794		$	3.241		$	3.441			28.3	%	$	7.504		$	9.476			26.3	%

⁽¹⁾ Includes fixed portion of variable annuities.
⁽²⁾Excludes the fixed portion of variable annuities.
⁽³⁾Incremental Deposits represent gross deposits reduced by transfers from other Lincoln products.

9/30/2007																						PAGE 17
*Individual Markets - Individual Annuities*
*Account Values*
Unaudited [Billions of Dollars]



	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Fixed Annuities - excluding fixed portion of variable contracts*
Deposits	$	0.258		$	0.280		$	0.126		$	0.129		$	0.286			10.9	%	$	0.417		$	0.541			29.7	%
Withdrawals		(1.148	)		(0.943	)		(0.674	)		(0.677	)		(0.651	)		43.3	%		(2.196	)		(2.002	)		8.8	%
Net flows	$	(0.890	)	$	(0.663	)	$	(0.548	)	$	(0.548	)	$	(0.365	)		59.0	%	$	(1.780	)	$	(1.461	)		17.9	%

Gross fixed contract account values	$	11.766		$	11.221		$	10.818		$	10.377		$	10.115			-14.0	%	$	11.766		$	10.115			-14.0	%
Reinsurance ceded		(2.045	)		(1.812	)		(1.689	)		(1.598	)		(1.430	)		30.1	%		(2.045	)		(1.430	)		30.1	%
Net Fixed Contract Account Values	$	9.721		$	9.409		$	9.129		$	8.779		$	8.684			-10.7	%	$	9.721		$	8.684			-10.7	%


*Indexed Annuities*
Deposits	$	0.244		$	0.245		$	0.160		$	0.191		$	0.199			-18.4	%	$	0.472		$	0.550			16.5	%
Withdrawals		(0.068	)		(0.061	)		(0.063	)		(0.061	)		(0.059	)		13.2	%		(0.114	)		(0.182	)		-59.6	%
Net flows	$	0.177		$	0.184		$	0.098		$	0.130		$	0.140			-20.9	%	$	0.358		$	0.368			2.8	%

Indexed Annuity Account Values	$	3.454		$	3.711		$	3.844		$	4.033		$	4.228			22.4	%	$	3.454		$	4.228			22.4	%


*Fixed Portion of Variable Contracts*
Deposits	$	0.559		$	0.575		$	0.535		$	0.662		$	0.746			33.5	%	$	1.516		$	1.943			28.2	%
Withdrawals		(0.190	)		(0.158	)		(0.151	)		(0.154	)		(0.181	)		4.7	%		(0.539	)		(0.487	)		9.6	%
Net flows	$	0.370		$	0.417		$	0.384		$	0.508		$	0.564			52.4	%	$	0.977		$	1.455			48.9	%

Fixed Portion of Variable Contract Account Values	$	3.719		$	3.613		$	3.476		$	3.458		$	3.470			-6.7	%	$	3.719		$	3.470			-6.7	%


*Variable Annuities - including fixed portion of variable contracts*
Deposits	$	2.218		$	2.635		$	2.535		$	2.957		$	2.993			34.9	%	$	6.707		$	8.485			26.5	%
Withdrawals		(1.200	)		(1.265	)		(1.330	)		(1.401	)		(1.477	)		-23.1	%		(3.512	)		(4.208	)		-19.8	%
Net Flows	$	1.017		$	1.371		$	1.205		$	1.556		$	1.516			49.1	%	$	3.195		$	4.278			33.9	%

Variable Contract Account Values	$	47.697		$	51.782		$	53.776		$	58.629		$	61.764			29.5	%	$	47.697		$	61.764			29.5	%

*Average Daily Variable Annuity Account Values*	$	42.342		$	46.514		$	49.284		$	53.465		$	55.827			31.8	%	$	40.968		$	52.922			29.2	%


Individual Annuity Product Spread Information																Change									Change
																(Basis Point)									(Basis Point)
Net investment income ^{(1) (2) (3) (7)}		5.90	%		5.91	%		5.86	%		5.86	%		5.76	%		(14	)		5.78	%		5.83	%		5
Interest credited to policyholders^{(4) (5) (6) (7)}		4.00	%		3.66	%		3.73	%		3.50	%		4.07	%		7			3.93	%		3.76	%		(17	)
Spread ^{(1) (2) (3) (4) (6) (7)}		1.90	%		2.25	%		2.13	%		2.36	%		1.69	%		(21	)		1.85	%		2.07	%		22

⁽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. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations. 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 3 bps in the 3rd quarter of 2007, 8 bps in the 2nd quarter of 2007, 5 bps in the 1st quarter of 2007, 8 bps in the 4th quarter of 2006 and 6 bps in the 3rd quarter of 2006. The impact was 5 bps in the first nine months of 2007 and 5 bps in the first nine months of 2006.
⁽³⁾ We exclude the results of our indexed annuity hedge program from our calculation of spreads, the impact of which affects net investment income and interest credited in approximately equal and offsetting amounts.
⁽⁴⁾ The third quarter and fourth quarter 2006 spreads have been updated to reflect offsetting corrections of surrender charges included within interest credited. No income statement changes were necessary.
⁽⁵⁾ The 2007 spreads reflect a correction (a decrease) to interest credited to policyholders related to a correction to the opening balance sheet of JP that was finalized in the first quarter of 2007. The impact of this correction was 9 bps in the first quarter of 2007 and 3 bps in the first nine months of 2007.
⁽⁶⁾Interest credited and our spreads include the impact of changes in the fair value of the SFAS 133 forward starting option liability related to our indexed annuity products. The impact of these changes in fair value on our spreads was (31) bps in the third quarter of 2007, 24 bps in the second quarter of 2007, (10) bps in the first quarter of 2007, 10 bps in the fourth quarter of 2006 and (16) bps in the third quarter of 2006.
⁽⁷⁾In the second quarter of 2007, we updated previously reported historical investment income yields, interest rate credited to policyholders and interest rate spreads to conform to the presentation in the second quarter of 2007. The impact of the changes on spreads ranged from 1 bp - 10 bps per quarter.

9/30/2007																						PAGE 18
*Employer Markets - Defined Contribution*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Surrender charges	$	1.7		$	1.5		$	2.0		$	2.2		$	1.8			5.9	%	$	6.1		$	6.1			-
Expense assessments		54.0			58.4			59.8			63.0			63.5			17.6	%		164.3			186.2			13.3	%
Net investment income		184.6			180.6			180.3			182.3			172.9			-6.3	%		557.8			535.5			-4.0	%
Other revenue and fees		4.9			4.5			4.7			4.6			5.2			6.1	%		15.1			14.4			-4.6	%
*Total Operating Revenue*		245.1			245.0			246.8			252.1			243.4			-0.7	%		743.2			742.2			-0.1	%

*Operating Expenses*
Interest credited to contractholder funds		103.1			104.4			104.3			104.6			104.6			1.5	%		306.2			313.5			2.4	%
Operating and acquisition expenses		74.5			80.2			71.6			80.6			84.7			13.7	%		217.3			237.0			9.1	%
*Total Operating Expenses*		177.6			184.6			176.0			185.3			189.3			6.6	%		523.5			550.5			5.2	%

Income from operations before Federal income taxes		67.5			60.4			70.8			66.8			54.1			-19.9	%		219.7			191.7			-12.7	%

Federal income taxes		15.0			15.8			21.1			19.5			12.9			-14.0	%		60.4			53.5			-11.4	%

*Income from Operations*	$	52.5		$	44.6		$	49.7		$	47.3		$	41.2			-21.5	%	$	159.3		$	138.2			-13.2	%

*Effective tax rate*		22.3	%		26.2	%		29.8	%		29.2	%		23.8	%					27.5	%		27.9	%

*Average equity*	$	945.7		$	954.9		$	938.5		$	906.6		$	901.4					$	979.1		$	915.5
*Return on average equity*		22.2	%		18.7	%		21.2	%		20.9	%		18.3	%					21.7	%		20.1	%

*Income from Operations - basis points on*
*average account values*		66			54			58			53			46						67			52

Operating and Acquisition Expenses
Commissions	$	23.4		$	20.8		$	19.3		$	21.3		$	19.9			-15.0	%	$	71.8		$	60.5			-15.7	%
General and administrative expenses		56.4			56.5			49.9			54.9			59.8			6.0	%		153.3			164.5			7.3	%
Taxes, licenses and fees		1.3			1.9			5.1			4.4			2.2		NM				7.1			11.7			64.8	%
Total commissions and expenses incurred		81.1			79.2			74.2			80.6			81.9			1.0	%		232.2			236.7			1.9	%
Less: commissions and expenses capitalized		(21.5	)		(18.5	)		(22.2	)		(22.5	)		(23.7	)		-10.2	%		(69.6	)		(68.4	)		1.7	%
Amortization of DAC and VOBA, net of interest		14.9			19.4			19.6			22.5			26.5			77.9	%		54.7			68.6			25.4	%

Net Operating and Acquisition Expenses	$	74.5		$	80.2		$	71.6		$	80.6		$	84.7			13.7	%	$	217.3		$	237.0			9.1	%
		-			-			-			-			-						-			-
General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		71			68			59			62			67			(5	)		65			62			(3	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	564.0		$	503.8		$	497.6		$	489.4		$	541.9					$	454.9		$	497.6
Cumulative effect of adoption of SOP 05-1		-			-			(1.4	)		-			-						-			(1.4	)
Deferral		21.5			18.5			22.2			22.5			23.7						69.6			68.4
Amortization net of interest:
Unlocking		(0.0	)		0.8			(0.5	)		(2.0	)		(5.0	)					(2.1	)		(7.5	)
Amortization excluding unlocking		(14.9	)		(20.1	)		(19.0	)		(20.5	)		(21.5	)					(52.7	)		(61.0	)
Deferrals, net of amortization included in operating and acquisition expenses		6.6			(0.9	)		2.6			(0.0	)		(2.8	)					14.8			(0.2	)
Adjustment related to realized gains
on available-for-sale securities		(2.0	)		(0.2	)		(2.1	)		(0.8	)		(0.6	)					(12.6	)		(3.6	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(64.8	)		(5.1	)		(7.2	)		53.3			(6.8	)					46.7			39.4
Balance at end of period	$	503.8		$	497.6		$	489.4		$	541.9		$	531.8					$	503.8		$	531.8


⁽¹⁾ Includes distribution costs.

9/30/2007																						PAGE 19
*Employer Markets - Defined Contribution*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change

*Fixed Annuities - Balance at Beginning of Period*	$	11.050		$	11.061		$	11.006		$	10.993		$	10.940			-1.0	%	$	11.009		$	11.006			-
Gross deposits⁽¹⁾		0.268			0.183			0.299			0.233			0.305			13.8	%		0.763			0.837			9.7	%
Withdrawals & deaths		(0.426	)		(0.340	)		(0.399	)		(0.376	)		(0.450	)		-5.6	%		(1.100	)		(1.224	)		-11.4	%
Net flows		(0.159	)		(0.157	)		(0.101	)		(0.143	)		(0.144	)		9.4	%		(0.337	)		(0.388	)		-15.1	%
Transfer from (to) variable annuities		0.049			(0.011	)		(0.017	)		(0.012	)		(0.011	)	NM				0.093			(0.040	)	NM
Interest credited		0.121			0.112			0.104			0.102			0.106			-12.4	%		0.296			0.312			5.3	%
*Fixed Annuities - Balance at End of Period⁽²⁾*	$	11.061		$	11.006		$	10.993		$	10.940		$	10.891			-1.5	%	$	11.061		$	10.891			-1.5	%


*Variable Annuities - Balance at Beginning of Period*	$	16.144		$	16.530		$	17.475		$	17.676		$	18.480			14.5	%	$	15.692		$	17.475			11.4	%
Gross deposits⁽¹⁾		0.583			0.559			0.655			0.577			0.564			-3.3	%		1.966			1.795			-8.7	%
Withdrawals & deaths		(0.565	)		(0.669	)		(0.813	)		(0.747	)		(0.810	)		-43.4	%		(1.888	)		(2.370	)		-25.5	%
Net flows		0.018			(0.110	)		(0.158	)		(0.170	)		(0.247	)	NM				0.079			(0.575	)	NM
Transfer from (to) fixed annuities		(0.046	)		0.008			0.004			0.007			(0.028	)		39.1	%		(0.093	)		(0.017	)		81.4	%
Investment increase & change in market value		0.414			1.047			0.354			0.968			0.375			-9.4	%		0.852			1.697			99.3	%
*Variable Annuities - Balance at End of Period ⁽³⁾*	$	16.530		$	17.475		$	17.676		$	18.480		$	18.581			12.4	%	$	16.530		$	18.581			12.4	%

*Total Annuities - Balance at Beginning of Period*	$	27.194		$	27.591		$	28.482		$	28.669		$	29.421			8.2	%	$	26.701		$	28.482			6.7	%
Gross Deposits ⁽¹⁾		0.851			0.742			0.953			0.809			0.869			2.1	%		2.729			2.632			-3.6	%
Withdrawals & deaths		(0.992	)		(1.009	)		(1.212	)		(1.122	)		(1.260	)		-27.0	%		(2.987	)		(3.594	)		-20.3	%
Net flows		(0.141	)		(0.267	)		(0.259	)		(0.313	)		(0.391	)	NM				(0.258	)		(0.962	)	NM
Transfers		0.003			(0.002	)		(0.012	)		(0.005	)		(0.039	)	NM				0.001			(0.057	)	NM
Interest credited & change in market value		0.535			1.160			0.458			1.070			0.481			-10.1	%		1.147			2.009			75.1	%
*Total Annuities - Balance at End of Period*	$	27.591		$	28.482		$	28.669		$	29.421		$	29.471			6.8	%	$	27.591		$	29.471			6.8	%

*Alliance Mutual Funds - Balance at Beginning of Period*	$	4.330		$	4.636		$	5.175		$	5.807		$	6.543			51.1	%	$	3.772		$	5.175			37.2	%
Plan/Participant Rollovers		0.057			0.168			0.279			0.217			0.411		NM				0.203			0.907		NM
Additional contributions		0.178			0.189			0.254			0.247			0.245			37.6	%		0.554			0.746			34.7	%
Gross deposits		0.235			0.357			0.533			0.464			0.656			179.1	%		0.757			1.653			118.5	%
Withdrawals & deaths		(0.057	)		(0.079	)		(0.054	)		(0.077	)		(0.132	)	NM				(0.167	)		(0.263	)		-57.2	%
Net flows		0.178			0.277			0.480			0.387			0.524			194.4	%		0.589			1.390			135.9	%
Transfers		(0.015	)		0.003			0.005			0.040			(0.013	)		13.3	%		(0.009	)		0.032		NM
Interest credited & change in market value		0.143			0.259			0.147			0.310			0.111			-22.4	%		0.284			0.568			99.9	%
*Total Alliance Mutual Funds - Balance at End of Period ⁽⁴⁾*	$	4.636		$	5.175		$	5.807		$	6.543		$	7.165			54.6	%	$	4.636		$	7.165			54.5	%


*Total Defined Contribution Segment Account Values-*
*including Alliance Mutual Funds*
*Balance at Beginning of Period*	$	31.524		$	32.227		$	33.656		$	34.475		$	35.964			14.1	%	$	30.473		$	33.656			10.4	%
Gross deposits ⁽¹⁾		1.086			1.099			1.487			1.273			1.525			40.4	%		3.486			4.285			22.9	%
Withdrawals & deaths		(1.049	)		(1.089	)		(1.266	)		(1.199	)		(1.392	)		-32.7	%		(3.155	)		(3.857	)		-22.3	%
Net flows		0.037			0.010			0.221			0.074			0.133			259.5	%		0.331			0.428			29.1	%
Transfers		(0.012	)		0.000			(0.007	)		0.035			(0.052	)	NM				(0.009	)		(0.025	)	NM
Interest credited & change in market value		0.677			1.419			0.606			1.379			0.592			-12.6	%		1.431			2.576			80.0	%
*Total Defined Contribution Segment Account Values-*
*Balance at End of Period*	$	32.227		$	33.656		$	34.475		$	35.964		$	36.636			13.7	%	$	32.227		$	36.636			13.7	%

*Variable Annuities Under Agreement - Included above*		0.017			0.017			0.016			0.017			0.018			5.9	%		0.017			0.018			5.9	%


*Incremental Deposits⁽⁵⁾ :*
Fixed Annuities	$	0.253		$	0.173		$	0.282		$	0.224		$	0.220			-13.0	%	$	0.733		$	0.725			-1.0	%
Variable Annuities		0.576			0.551			0.581			0.631			0.556			-3.5	%		1.939			1.767			-8.9	%
*Total Annuities Incremental Deposits*		0.829			0.724			0.862			0.855			0.776			-6.4	%		2.672			2.492			-6.7	%
Total Alliance Mutual Funds Incremental Deposits		0.235			0.357			0.533			0.464			0.656			179.1	%		0.757			1.653			118.3	%
*Total Defined Contribution Incremental Deposits*	$	1.064		$	1.080		$	1.396		$	1.318		$	1.431			34.5	%	$	3.429		$	4.145			20.9	%

⁽¹⁾ Gross deposits for the nine months ended September 30, 2006 include approximately $20 million and $110 million of fixed and variable annuity deposits, respectively, resulting from JP employee plan deposits into the LNC employee plan as a result of the merger.
⁽²⁾Includes Fixed Annuity products offered under the Alliance mutual funds and the fixed portion of variable annuities.
⁽³⁾ Excludes the fixed portion of variable annuities.
⁽⁴⁾Represents amounts attributable to Alliance mutual fund net flows. Alliance mutual fund account values are not included in the separate accounts reported on our balance sheet.
⁽⁵⁾ Incremental Deposits represent gross deposits reduced by transfers from other Lincoln products.

9/30/2007																						PAGE 20
*Employer Markets - Defined Contribution*
*Supplemental Data*
Unaudited [Billions of Dollars]



	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Fixed Annuities - excluding fixed portion of variable contracts*
Deposits⁽¹⁾	$	0.157		$	0.093		$	0.198		$	0.146		$	0.221			40.8	%	$	0.413		$	0.565			36.8	%
Withdrawals		(0.162	)		(0.118	)		(0.166	)		(0.140	)		(0.215	)		-32.7	%		(0.383	)		(0.521	)		-36.0	%
Net Flows	$	(0.005	)	$	(0.024	)	$	0.032		$	0.006		$	0.006			220.0	%	$	0.030		$	0.045		50.0		%

Fixed Contract Account Values	$	4.758		$	4.797		$	4.870		$	4.917		$	4.943			3.9	%	$	4.758		$	4.943			3.9	%

*Fixed Portion of Variable Contracts*
Deposits	$	0.111		$	0.090		$	0.100		$	0.087		$	0.084			-24.3	%	$	0.350		$	0.272			-22.3	%
Withdrawals		(0.265	)		(0.222	)		(0.233	)		(0.236	)		(0.235	)		11.3	%		(0.716	)		(0.704	)		1.7	%
Net Flows	$	(0.154	)	$	(0.132	)	$	(0.133	)	$	(0.149	)	$	(0.150	)		2.6	%	$	(0.366	)	$	(0.432	)		-18.0	%

Fixed Portion of Variable Contract Account Values	$	6.303		$	6.210		$	6.123		$	6.023		$	5.948			-5.6	%	$	6.303		$	5.948			-5.6	%

*Variable Annuities - including fixed portion of variable contracts*
Deposits ⁽¹⁾	$	0.694		$	0.649		$	0.755		$	0.664		$	0.648			-6.6	%	$	2.316		$	2.067			-10.8	%
Withdrawals		(0.830	)		(0.891	)		(1.046	)		(0.982	)		(1.045	)		-25.9	%		(2.604	)		(3.074	)		-18.0	%
Net Flows	$	(0.136	)	$	(0.242	)	$	(0.291	)	$	(0.319	)	$	(0.397	)	NM			$	(0.288	)	$	(1.007	)	NM

Variable Contract Account Values	$	22.833		$	23.685		$	23.799		$	24.504		$	24.528			7.4	%	$	22.833		$	24.528			7.4	%

*Average Daily Variable Annuity Account Values*	$	16.116		$	17.164		$	17.582		$	18.377		$	18.162			12.7	%	$	16.187		$	18.043			11.5	%


Total Annuity based Retirement Plan Product Spread Information⁽²⁾																Change									Change
																(Basis Point)									(Basis Point)
Net investment income ^{(3) (4)}		6.41	%		6.23	%		6.20	%		6.13	%		6.00	%		(41	)		6.38	%		6.12	%		(26	)
Interest credited to policyholders		3.73	%		3.79	%		3.81	%		3.82	%		3.84	%		11			3.71	%		3.82	%		11
Spread ^{(3) (4)}		2.68	%		2.44	%		2.39	%		2.31	%		2.16	%		(52	)		2.67	%		2.30	%		(37	)

⁽¹⁾ Gross deposits for the nine months ended September 30, 2006 include approximately $20 million and $110 million of fixed and variable annuity deposits, respectively, resulting from JP employee plan deposits into the LNC employee plan as a result of the merger.
⁽²⁾ 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. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations. 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.
⁽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 was 7 bps in the 3rd quarter of 2007, 9 bps in the 2nd quarter of 2007, 3 bps in the 1st quarter of 2007, 4 bps in the 4th quarter of 2006 and 23 bps in the 3rd quarter of 2006.
⁽⁴⁾The net investment income and spread reported above include earnings from alternative investments, such as limited partnerships and hedge funds. The impact on investment income yields from these investments was (11) bps in the 3rd quarter of 2007, 11 bps in the 2nd quarter of 2007, 7 bps in the 1st quarter of 2007, 9 bps in the 4th quarter of 2006 and 5 bps in the 3rd quarter of 2006. The impact was 2 bps in the first nine months of 2007 and 7 bps in the first nine months of 2006.
⁽⁵⁾In the third quarter of 2007, we updated the previously reported investment income yields, interest rate credited to policyholders and interest rate spreads for the quarter and nine months ended September 30, 2006, in order to conform to the current period presentation. The impact of the changes on spreads was 5 bps and 4 bps for the quarter and nine months ended September 30, 2006, respectively.

9/30/2007																						PAGE 21
*Employer Markets - Executive Benefits*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	0.3		$	3.3		$	0.6		$	0.1		$	0.6			100.0	%	$	1.4		$	1.3			-7.1	%
Surrender charges		0.0			0.0			(0.0	)		0.0			0.0		NM				0.0			0.0		NM
Mortality assessments		7.2			8.5			8.9			8.2			8.4			16.7	%		18.5			25.5			37.8	%
Expense assessments		4.5			5.5			6.2			5.9			5.3			17.8	%		12.6			17.4			38.1	%
Net investment income		91.0			90.5			94.8			99.3			98.1			7.8	%		226.1			292.2			29.2	%
Other revenue and fees		1.3			1.3			1.2			1.3			1.2			-7.7	%		4.0			3.7			-7.5	%
*Total Operating Revenue*		104.3			109.1			111.7			114.9			113.5			8.8	%		262.7			340.1			29.5	%

*Operating Expenses*
Insurance benefits		35.6			39.7			33.1			33.3			35.9			0.8	%		98.8			102.3			3.5	%
Interest credited to contractholder funds		39.9			42.0			44.8			50.3			50.9			27.6	%		89.4			146.0			63.3	%
Operating and acquisition expenses		11.7			9.1			12.7			11.4			11.6			-0.9	%		23.4			35.8			53.0	%
*Total Operating Expenses*		87.2			90.8			90.7			95.0			98.4			12.8	%		211.5			284.1			34.3	%

Income from operations before Federal income taxes		17.1			18.3			21.1			19.9			15.1			-11.7	%		51.1			56.1			9.8	%

Federal income taxes		4.3			5.6			6.6			6.0			4.1			-4.7	%		14.6			16.8			15.1	%

*Income from Operations*	$	12.8		$	12.7		$	14.4		$	13.9		$	11.0			-14.1	%	$	36.5		$	39.3			7.7	%

*Effective tax rate*		25.2	%		30.7	%		31.5	%		30.3	%		27.1	%					28.5	%		29.9	%

*Average equity*	$	519.8		$	528.2		$	539.3		$	527.2		$	536.5					$	459.7		$	534.3
*Return on average equity*		9.8	%		9.6	%		10.7	%		10.5	%		8.2	%					10.6	%		9.8	%


Operating and Acquisition Expenses
Commissions	$	7.1		$	11.2		$	6.5		$	6.8		$	6.5			-8.5	%	$	20.3		$	19.8			-2.5	%
General and administrative expenses		6.2			4.8			4.0			4.2			5.8			-6.5	%		12.6			14.0			11.1	%
Taxes, licenses and fees		1.4			1.3			1.5			1.3			1.2			-14.3	%		3.7			3.9			5.4	%
Total commissions and expenses incurred		14.6			17.3			11.9			12.3			13.4			-8.2	%		36.7			37.7			2.7	%
Less: commissions and expenses capitalized		(6.7	)		(10.9	)		(6.9	)		(6.7	)		(6.6	)		1.5	%		(20.4	)		(20.2	)		1.0	%
Amortization of DAC and VOBA, net of interest		3.8			2.8			7.7			5.8			4.8			26.3	%		7.0			18.3			161.4	%

Net Operating and Acquisition Expenses	$	11.7		$	9.1		$	12.7		$	11.4		$	11.6			-0.9	%	$	23.3		$	35.8			53.6	%

General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		36			27			23			24			33			(3	)		28			26			(2	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	274.1		$	258.0		$	265.3		$	260.5		$	276.2					$	113.6		$	265.3
Deferral		6.7			10.9			6.9			6.7			6.6						20.4			20.2
Amortization net of interest:
Unlocking		(0.2	)		(0.3	)		(2.7	)		(2.3	)		(1.5	)					0.6			(6.4	)
Amortization excluding unlocking		(3.6	)		(2.5	)		(5.1	)		(3.4	)		(3.4	)					(7.6	)		(11.9	)
Deferrals, net of amortization included in operating and acquisition expenses		2.9			8.2			(0.8	)		0.9			1.8						13.4			1.9
Adjustment related to realized (gains) losses
on available-for-sale securities		(0.7	)		(0.8	)		(0.5	)		(0.1	)		0.1						(0.7	)		(0.6	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(18.3	)		(0.1	)		(3.4	)		14.9			(4.8	)					(10.8	)		6.6
Business acquired		-			-			-			-			-						142.5			-
Balance at end of period	$	258.0		$	265.3		$	260.5		$	276.2		$	273.2					$	258.0		$	273.2

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	19.7		$	20.3		$	21.7		$	22.0		$	21.9					$	17.9		$	21.7
Deferral		0.9			1.5			1.1			0.9			0.7						2.9			2.7
Amortization net of interest:
Unlocking		(0.0	)		0.1			(0.3	)		(0.6	)		0.1						0.2			(0.8	)
Amortization excluding unlocking		(0.3	)		(0.2	)		(0.4	)		(0.3	)		(0.3	)					(0.7	)		(1.1	)
Deferrals, net of amortization included in expense assessments		0.6			1.4			0.3			(0.1	)		0.5						2.4			0.7
Balance at end of period	$	20.3		$	21.7		$	22.0		$	21.9		$	22.4					$	20.3		$	22.4

⁽¹⁾ Includes distribution costs.

9/30/2007																						PAGE 22
*Employer Markets - Executive Benefits*
*Account Value Roll Forward and Supplemental Data*
Unaudited [Billions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
COLI/BOLI- Balance Beginning-of-Period	$	4.228		$	4.252		$	4.305		$	4.264		$	4.353			3.0	%	$	1.318		$	4.305			226.6	%
Business acquired		-			-			-			-			-		NM				2.795			-			-100.0	%
Deposits		0.058			0.085			0.065			0.079			0.052			-10.3	%		0.182			0.196			7.7	%
Withdrawals & deaths		(0.069	)		(0.092	)		(0.140	)		(0.053	)		(0.057	)		17.4	%		(0.118	)		(0.250	)	NM
Net flows		(0.011	)		(0.007	)		(0.075	)		0.026			(0.005	)		54.5	%		0.064			(0.054	)	NM
Policyholder assessments		(0.016	)		(0.019	)		(0.018	)		(0.017	)		(0.017	)		-6.3	%		(0.041	)		(0.051	)		-24.4	%
Interest credited and change in market value		0.051			0.079			0.052			0.080			0.060			17.6	%		0.117			0.192			64.1	%
*COLI/BOLI-Balance End-of-Period*	$	4.252		$	4.305		$	4.264		$	4.353		$	4.391			3.3	%	$	4.252		$	4.391			3.3	%


*COLI/BOLI In-Force*	$	15.342		$	15.645		$	14.747		$	14.809		$	14.900			-2.9	%	$	15.342		$	14.900			-2.9	%


*Run Off Institutional Pensions Account Values -*
*Balance at End of Period*	$	2.711		$	2.720		$	2.734		$	2.729		$	2.720			0.3	%	$	2.711		$	2.720			0.3	%

9/30/2007																						PAGE 23
*Employer Markets - Group Protection*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	304.1		$	315.9		$	331.3		$	361.3		$	336.8			10.8	%	$	633.1		$	1,029.5			62.6	%
Net investment income		27.1			28.0			27.9			28.5			29.5			8.9	%		52.2			85.8			64.4	%
Other revenue and fees		0.9			0.8			1.1			1.2			1.3			44.4	%		1.7			3.6			111.8	%
*Total Operating Revenue*		332.1			344.8			360.4			391.0			367.5			10.7	%		687.0			1,119.0			62.9	%

*Operating Expenses*
Insurance benefits		213.3			224.0			246.6			265.7			235.0			10.2	%		439.3			747.3			70.1	%
Operating and acquisition expenses		74.6			69.6			78.3			80.7			81.4			9.1	%		146.6			240.3			63.9	%
*Total Operating Expenses*		287.9			293.6			324.9			346.3			316.4			9.9	%		585.9			987.6			68.6	%

Income from operations before Federal income taxes		44.2			51.2			35.5			44.7			51.2			15.8	%		101.2			131.4			29.8	%

Federal income taxes		15.5			17.9			12.4			15.7			17.9			15.5	%		35.4			46.1			30.2	%

*Income from Operations*	$	28.8		$	33.2		$	23.1		$	29.0		$	33.2			15.3	%	$	65.8		$	85.3			29.6	%

*Effective tax rate*		35.0	%		35.0	%		35.0	%		35.1	%		35.1	%					35.0	%		35.1	%

*Average equity*	$	896.8		$	913.4		$	915.1		$	917.5		$	936.2					$	878.9		$	922.9
*Return on average equity*		12.8	%		14.6	%		10.1	%		12.6	%		14.2	%					15.0	%		12.3	%


Operating and Acquisition Expenses
Commissions	$	36.0		$	36.8		$	39.4		$	41.4		$	40.3			11.9	%	$	73.3		$	121.2			65.3	%
General and administrative expenses		35.5			37.5			32.7			37.5			37.9			6.8	%		67.4			108.1			60.4	%
Taxes, licenses and fees		7.8			6.9			9.7			9.5			8.1			3.8	%		15.8			27.3			72.8	%
Total commissions and expenses incurred		79.3			81.2			81.8			88.4			86.3			8.8	%		156.4			256.6			64.1	%
Less commissions and expenses capitalized		(11.3	)		(14.8	)		(11.2	)		(13.5	)		(13.0	)		-15.0	%		(22.5	)		(37.7	)		-67.6	%
Amortization of DAC and VOBA, net of interest		6.6			3.2			7.6			5.8			8.1			22.7	%		12.6			21.4			69.8	%
																									��
Net Operating and Acquisition Expenses	$	74.6		$	69.6		$	78.3		$	80.7		$	81.4			9.1	%	$	146.6		$	240.3			63.9	%

General and administrative expenses as a
percentage of premiums		11.7	%		11.9	%		9.9	%		10.4	%		11.2	%	NM				10.6	%		10.5	%




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	121.4		$	126.1		$	137.6		$	103.7		$	111.4					$	-		$	137.6
Cumulative effect of adoption of SOP 05-1		-			-			(37.5	)		-			-						-			(37.5	)
Deferral		11.3			14.8			11.2			13.5			13.0						22.5			37.7
Amortization net of interest		(6.6	)		(3.2	)		(7.6	)		(5.8	)		(8.1	)					(12.6	)		(21.4	)
Deferrals, net of amortization included in operating and acquisition expenses		4.7			11.5			3.5			7.8			5.0						9.9			16.3
Business acquired		-			-			-			-			-						116.2			-
Balance at end of period	$	126.1		$	137.6		$	103.7		$	111.4		$	116.4					$	126.1		$	116.4

9/30/2007																			PAGE 24
*Employer Markets - Group Protection*
*Supplemental Data*
Unaudited [Millions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change

*Annualized Sales*
Life	$	19.4		$	43.1		$	22.7		$	23.6		$	22.0			13.4	%	$	34.7		$	68.3			96.8	%
Disability		24.7			56.9			28.6			28.9			30.5			23.5	%		47.6			87.9			84.7	%
Dental		6.1			13.1			9.4			9.5			8.3			36.1	%		13.2			27.2			106.1	%

*Premiums:*
Life	$	109.9		$	112.5		$	118.6		$	125.0		$	123.4			12.3	%	$	221.5		$	367.0			65.7	%
Disability		134.8			138.5			144.8			150.4			151.1			12.1	%		268.8			446.2			66.0	%
Dental		31.7			31.8			32.9			33.5			34.1			7.6	%		63.1			100.5			59.3	%
Other		27.8			33.2			35.0			52.5			28.3			1.8	%		79.7			115.7			45.2	%

Total	$	304.1		$	315.9		$	331.3		$	361.3		$	336.8			10.8	%	$	633.0		$	1,029.5			62.6	%
							��
*Product Line Results:*
Life	$	9.8		$	13.6		$	8.6		$	10.0		$	11.0			12.2	%	$	23.3		$	29.7			27.5	%
Disability		16.1			15.5			13.3			18.1			18.8			16.8	%		37.2			50.2			34.9	%
Dental		2.2			3.0			0.2			(0.1	)		1.3			-40.9	%		3.6			1.4			-61.1	%
Other		0.7			1.1			0.9			1.0			2.2			214.3	%		1.7			4.1			141.2	%

Total	$	28.8		$	33.2		$	23.1		$	29.0		$	33.2			15.3	%	$	65.8		$	85.3			29.6	%

*Loss Ratios:*
Life		72.3	%		69.0	%		75.0	%		73.9	%		71.2	%		-1.6	%		70.1	%		73.3	%		4.7	%
Disability		64.5	%		69.3	%		69.5	%		66.4	%		65.0	%		0.9	%		61.9	%		66.9	%		8.0	%
Dental		71.7	%		68.7	%		79.2	%		79.3	%		74.9	%		4.5	%		73.9	%		77.8	%		5.2	%

Combined loss ratios		68.4	%		69.1	%		72.7	%		70.8	%		68.6	%		0.2	%		66.6	%		70.7	%		6.2	%

9/30/2007																						PAGE 25
*Investment Management*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Investment advisory fees - External ⁽³⁾	$	82.4		$	86.5		$	89.2		$	90.8		$	91.5			11.0	%	$	241.4		$	271.5			12.5	%
Investment advisory fees - Insurance-related ⁽³⁾		23.7			24.7			25.7			21.5			20.1			-15.2	%		72.3			67.3			-6.9	%
Other revenue and fees		34.3			37.7			35.3			38.7			38.5			12.2	%		101.0			112.5			11.4	%
*Operating Revenue*		140.4			148.9			150.2			151.0			150.1			6.9	%		414.6			451.2			8.8	%

*Operating Expenses*
Operating and administrative expenses		120.3			126.2			124.6			133.1			116.0			-3.6	%		352.7			373.7			6.0	%
*Total Operating Expenses*		120.3			126.2			124.6			133.1			116.0			-3.6	%		352.7			373.7			6.0	%

Income from operations before Federal income taxes		20.1			22.7			25.6			17.9			34.1			69.7	%		61.9			77.5			25.2	%

Federal income taxes		6.7			8.3			9.3			6.6			12.3			83.6	%		21.2			28.2			33.0	%

*Income from Operations*	$	13.4		$	14.4		$	16.2		$	11.3		$	21.8			62.7	%	$	40.8		$	49.3			20.8	%

*Effective tax rate*		33.1	%		36.5	%		36.4	%		36.8	%		36.1	%					34.2	%		36.4	%

*Pre-tax Operating Margin ⁽¹⁾*		14.3	%		15.2	%		17.0	%		11.8	%		22.7	%					14.9	%		17.2	%
*After-tax Operating Margin⁽²⁾*		9.6	%		9.7	%		10.8	%		7.5	%		14.5	%					9.8	%		10.9	%


Operating and Acquisition Expenses
General and administrative expenses	$	104.2		$	109.1		$	106.5		$	116.7		$	100.5			-3.6	%	$	299.7		$	323.7			8.0	%
Depreciation and amortization		2.2			2.4			2.6			2.5			2.5			13.6	%		6.8			7.6			11.8	%
Sub-advisory fees		9.8			9.8			10.0			8.4			7.7			-21.4	%		31.4			26.1			-16.9	%
Total general and administrative expenses		116.2			121.3			119.1			127.7			110.7			-4.7	%		337.9			357.5			5.8	%
Taxes, licenses and fees		2.7			3.5			4.1			4.0			3.9			44.4	%		9.9			12.0			21.2	%
Amortization of intangibles		1.4			1.4			1.4			1.4			1.4						5.0			4.2			-16.0	%
Total expenses incurred	$	120.3		$	126.2		$	124.6		$	133.1		$	116.0			-3.6	%	$	352.7		$	373.7			6.0	%


⁽¹⁾ Pre-tax operating margin is calculated as Income (Loss) from Operations before Federal income taxes divided by Operating Revenue.
⁽²⁾ After-tax operating margin is calculated as Income (Loss) from Operations divided by Operating Revenue.
⁽³⁾Investment advisory fees have been restated for 1Q07 and 2Q07 to reflect a reclassification from External to Insurance-related. This change amounted to $0.7 million in 1Q07 and $1.7 million in 2Q07.

9/30/2007																						PAGE 26
*Investment Management*
*Assets Under Management Roll Forward*
Unaudited [Billions of Dollars]



	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change

Retail Fixed - Balance-Beginning-of-Period	$	10.007		$	10.522		$	10.993		$	11.644		$	12.303			22.9	%	$	9.625		$	10.993			14.2	%
Sales ⁽¹⁾		0.981			1.091			1.365			1.494			1.467			49.5	%		2.965			4.326			45.9	%
Redemptions ⁽²⁾		(0.810	)		(0.802	)		(0.910	)		(1.062	)		(1.060	)		-30.9	%		(2.440	)		(3.031	)		-24.2	%
Transfers		0.012			0.028			0.014			(0.005	)		0.027			125.0	%		(0.014	)		0.036		NM
Net Flows		0.183			0.318			0.470			0.428			0.434			137.2	%		0.512			1.332			160.2	%
Net investment gains and change in market value		0.332			0.211			0.181			0.119			0.278			-16.3	%		0.384			0.578			50.5	%
Transfer of assets to third-party ⁽²⁾		-			(0.057	)		-			(0.055	)		-		NM				-			(0.055	)	NM
Transfer of assets to an intercompany manager⁽³⁾		-			-			-			0.166			-		NM				-			0.166		NM
Balance at End-of-Period	$	10.522		$	10.993		$	11.644		$	12.303		$	13.014			23.7	%	$	10.522		$	13.014			23.7	%

Retail Equity - Balance-Beginning-of-Period	$	36.035		$	36.954		$	39.627		$	40.250		$	38.586			7.1	%	$	32.732		$	39.627			21.1	%
Sales ⁽¹⁾		1.516			2.101			2.238			1.778			1.344			-11.3	%		6.834			5.361			-21.6	%
Redemptions ⁽²⁾		(1.984	)		(2.338	)		(2.455	)		(2.487	)		(2.084	)		-5.0	%		(5.958	)		(7.026	)		-17.9	%
Transfers		(0.016	)		(0.030	)		(0.020	)		0.004			(0.029	)		-81.3	%		(0.061	)		(0.044	)		27.9	%
Net Flows		(0.483	)		(0.267	)		(0.237	)		(0.704	)		(0.768	)		-59.0	%		0.815			(1.710	)	NM
Net investment gains and change in market value		1.402			3.074			0.861			2.190			0.348			-75.2	%		3.408			3.398			-0.3	%
Transfer of assets to third-party ⁽²⁾		-			(0.133	)		-			(0.099	)		-		NM				-			(0.099	)	NM
Transfer of assets to an intercompany manager⁽³⁾		-			-			-			(3.051	)		-		NM				-			(3.051	)	NM
Balance at End-of-Period	$	36.954		$	39.627		$	40.250		$	38.586		$	38.166			3.3	%	$	36.954		$	38.166			3.3	%

Total Retail - Balance-Beginning-of-Period	$	46.042		$	47.476		$	50.620		$	51.895		$	50.889			10.5	%	$	42.357		$	50.620			19.5	%
Retail sales-Annuities		0.960			0.932			1.300			0.902			0.891			-7.2	%		2.715			3.093			13.9	%
Retail sales-Mutual Funds		1.151			1.768			1.753			1.896			1.543			34.1	%		3.849			5.192			34.9	%
Retail sales-Managed Accounts & Other		0.386			0.493			0.550			0.474			0.377			-2.3	%		3.235			1.402			-56.7	%
Total Retail Sales⁽¹⁾		2.497			3.192			3.603			3.272			2.811			12.6	%		9.799			9.687			-1.1	%
Redemptions ⁽²⁾		(2.794	)		(3.140	)		(3.365	)		(3.548	)		(3.144	)		-12.5	%		(8.398	)		(10.057	)		-19.8	%
Transfers		(0.003	)		(0.002	)		(0.005	)		(0.001	)		(0.001	)		66.7	%		(0.074	)		(0.008	)		89.2	%
Net Flows		(0.300	)		0.050			0.233			(0.277	)		(0.334	)		-11.3	%		1.327			(0.378	)	NM
Net investment gains and change in market value		1.733			3.285			1.041			2.309			0.626			-63.9	%		3.792			3.976			4.9	%
Transfer of assets to third-party⁽²⁾		-			(0.190	)		-			(0.153	)		-		NM				-			(0.153	)	NM
Transfer of assets to an intercompany manager⁽³⁾		-			-			-			(2.885	)		-		NM				-			(2.885	)	NM
Balance at End-of-Period	$	47.476		$	50.620		$	51.895		$	50.889		$	51.180			7.8	%	$	47.476		$	51.180			7.8	%


Institutional Fixed - Balance-Beginning-of-Period	$	18.154		$	19.387		$	22.841		$	23.469		$	23.565			29.8	%	$	14.699		$	22.841			55.4	%
Inflows ^{(1) (5)}		1.133			3.644			1.560			1.514			2.233			97.1	%		5.847			5.308			-9.2	%
Withdrawals/terminations		(0.516	)		(0.487	)		(0.480	)		(1.271	)		(1.306	)	NM				(1.713	)		(3.057	)		-78.5	%
Transfers		(0.002	)		0.001			0.000			(0.000	)		(0.001	)	NM				0.009			(0.001	)	NM
Net Flows		0.615			3.157			1.081			0.243			0.927			50.7	%		4.143			2.250			-45.7	%
Transfer of assets to an intercompany manager⁽³⁾		-			-			(0.780	)		-			-		NM				-			(0.780	)	NM
Net investment gains and change in market value		0.618			0.297			0.328			(0.147	)		0.345			-44.2	%		0.545			0.527			-3.3	%
Balance at End-of-Period	$	19.387		$	22.841		$	23.469		$	23.565		$	24.837			28.1	%	$	19.387		$	24.837			28.1	%

Institutional Equity - Balance-Beginning-of-Period	$	21.729		$	22.649		$	23.845		$	22.782		$	23.271			7.1	%	$	20.576		$	23.845			15.9	%
Inflows ^{(1) (5)}		1.274			1.244			0.870			1.363			0.701			-45.0	%		4.367			2.935			-32.8	%
Withdrawals/terminations		(0.844	)		(1.734	)		(2.273	)		(1.753	)		(1.202	)		-42.4	%		(3.179	)		(5.228	)		-64.5	%
Transfers		0.001			(0.001	)		0.000			(0.000	)		(0.001	)	NM				(0.007	)		(0.000	)		100.0	%
Net Flows		0.431			(0.490	)		(1.402	)		(0.391	)		(0.501	)	NM				1.182			(2.294	)	NM
Transfer of assets to an intercompany manager⁽³⁾		-			-			-			(0.363	)		-		NM				-			(0.363	)	NM
Net investment gains and change in market value		0.489			1.687			0.339			1.242			0.929			90.0	%		0.890			2.510			182.0	%
Balance at End-of-Period	$	22.649		$	23.845		$	22.782		$	23.271		$	23.699			4.6	%	$	22.649		$	23.699			4.6	%

Total Institutional - Balance-Beginning-of-Period	$	39.883		$	42.035		$	46.686		$	46.251		$	46.836			17.4	%	$	35.276		$	46.686			32.3	%
Inflows⁽¹⁾		2.406			4.888			2.431			2.877			2.934			21.9	%		10.214			8.242			-19.3	%
Withdrawals/terminations		(1.360	)		(2.221	)		(2.753	)		(3.025	)		(2.508	)		-84.4	%		(4.892	)		(8.285	)		-69.4	%
Transfers		(0.000	)		(0.000	)		0.001			(0.001	)		(0.001	)	NM				0.002			(0.001	)	NM
Net Flows		1.046			2.666			(0.321	)		(0.148	)		0.425			-59.4	%		5.324			(0.044	)	NM
Transfer of assets to an intercompany manager⁽³⁾		-			-			(0.780	)		(0.363	)		-		NM				-			(1.143	)	NM
Net investment gains and change in market value		1.107			1.984			0.667			1.096			1.274			15.1	%		1.435			3.037			111.6	%
Balance at End-of-Period	$	42.035		$	46.686		$	46.251		$	46.836		$	48.536			15.5	%	$	42.035		$	48.536			15.5	%

Total Retail and Institutional - At End-of-Period	$	89.511		$	97.307		$	98.146		$	97.725		$	99.716			11.4	%	$	89.511		$	99.716			11.4	%

General Account Assets-End-of-Period ⁽⁴⁾	$	67.410		$	67.437		$	67.658		$	66.423		$	67.324			-0.1	%	$	67.410		$	67.324			-0.1	%

Total Assets Under Management
At End-of-Period	$	156.921		$	164.743		$	165.803		$	164.148		$	167.040			6.4	%	$	156.921		$	167.040			6.4	%

Total Retail and Institutional - Net Flows ⁽²⁾	$	0.745		$	2.717		$	(0.088	)	$	(0.425	)	$	0.091			-87.8	%	$	6.651		$	(0.422	)	NM

Subadvised Assets, included in Assets
Under Management above
Retail	$	16.421		$	18.023		$	18.466		$	16.329		$	16.380			-0.2	%	$	16.421		$	16.380			-0.2	%
Institutional		4.560			4.648			4.645			4.594			4.734			3.8	%		4.560			4.734			3.8	%
Total Subadvised Assets	$	20.982		$	22.671		$	23.111		$	20.922		$	21.114			0.6	%	$	20.982		$	21.114			0.6	%


⁽¹⁾ Sales and in-flows include dividend reinvestments.
⁽²⁾Reflects assets transferred to a third-party manager (Upromise) as a result of Delaware's decision to exit the 529 Plan business. In 4Q06, a reclassification of $190m was made from Redemptions to Transfer of assets to third-party; subsequent 529 Plan assets which transferred in 2Q07 are reflected in Transfer of assets to third-party.
⁽³⁾ Reflects assets that were transferred to an intercompany manager; this transfer does not impact Lincoln's consolidated assets under management.
⁽⁴⁾ Balances for 4Q06 and 1Q07 have been restated to reflect adjustments made to Jefferson Pilot separate accounts. The impact of these changes was $370 million and $366 million, respectively.
⁽⁵⁾ Inflows for 2Q07 have been restated to reflect the reclassification of $43 million between Institutional Fixed and Institutional Equity. This reclassification does not impact total net flows, total inflows or total assets under management.

9/30/2007																						PAGE 27
*Lincoln UK*
*Income Statements*
Unaudited [Millions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	21.1		$	21.0		$	24.2		$	24.3		$	25.6			21.3	%	$	57.6		$	74.1			28.6	%
Mortality assessments		8.7			9.0			10.0			8.9			9.2			5.7	%		25.4			28.1			10.6	%
Expense assessments		23.9			36.8			37.1			39.9			33.0			38.1	%		86.7			110.1			27.0	%
Net investment income		18.6			18.0			19.3			19.4			20.9			12.4	%		53.4			59.6			11.6	%
Other revenue and fees		-			-			0.1			-			-		NM				0.1			0.1			-
*Total Operating Revenue*		72.3			84.8			90.7			92.5			88.7			22.7	%		223.2			271.9			21.8	%

*Operating Expenses*
Insurance benefits		25.0			30.4			36.0			34.4			30.2			20.8	%		77.8			100.6			29.3	%
Operating and acquisition expenses		34.5			39.1			38.0			40.2			42.5			23.2	%		100.9			120.7			19.6	%
*Total Operating Expenses*		59.5			69.5			74.0			74.6			72.7			22.2	%		178.8			221.3			23.8	%

Income from operations before Federal income taxes		12.8			15.3			16.7			18.0			15.9			24.2	%		44.4			50.6			14.0	%

Federal income taxes		4.5			5.4			5.9			6.3			5.6			24.4	%		15.5			17.7			14.2	%

*Income from Operations*	$	8.3		$	9.9		$	10.9		$	11.7		$	10.3			24.1	%	$	28.9		$	32.9			13.8	%

*Effective tax rate on*
*Income from Operations*		35.2	%		35.3	%		35.3	%		35.0	%		35.2	%					34.9	%		35.0	%

*Average equity*	$	406.0		$	392.3		$	384.8		$	382.7		$	378.0					$	416.9		$	381.8
*Return on average equity*		8.2	%		10.1	%		11.3	%		12.2	%		10.9	%					9.3	%		11.5	%


Operating and Acquisition Expenses

Commissions	$	1.4		$	1.1		$	1.0		$	1.0		$	1.3			-7.1	%	$	3.4		$	3.4
General and administrative expenses		25.1			27.9			26.5			26.7			26.9			7.2	%		71.6			80.2			12.0	%
Total commissions and expenses incurred		26.4			29.0			27.6			27.7			28.2			6.8	%		75.0			83.5			11.3	%
Less: commissions and expenses capitalized		(0.6	)		(0.7	)		(0.6	)		(0.6	)		(1.5	)	NM				(1.2	)		(2.6	)	NM
Amortization of DAC and VOBA, net of interest		8.7			10.8			11.0			13.0			15.8			81.6	%		27.1			39.7			46.5	%
																									NM
Net Operating and Acquisition Expenses	$	34.5		$	39.1		$	38.0		$	40.2		$	42.5			23.2	%	$	100.9		$	120.7			19.6	%



Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	781.7		$	783.4		$	809.0		$	802.6		$	806.5					$	743.4		$	809.0
Deferral		0.6			0.7			0.6			0.6			1.5						1.2			2.6
Amortization net of interest:
Unlocking		3.6			-			0.7			(0.1	)		(0.9	)					5.1			(0.3	)
Amortization excluding unlocking		(12.3	)		(10.8	)		(11.7	)		(12.9	)		(14.9	)					(32.2	)		(39.4	)
Deferrals, net of amortization included in operating and acquisition expenses		(8.0	)		(10.1	)		(10.4	)		(12.4	)		(14.3	)					(25.9	)		(37.1	)
Foreign currency translation adjustment		9.7			35.7			4.1			16.3			15.1						65.8			35.5
Balance at end of period	$	783.4		$	809.0		$	802.6		$	806.5		$	807.3					$	783.4		$	807.3


Roll Forward of Deferred Front-End Load

Balance at beginning of period	$	381.2		$	392.8		$	404.5		$	400.4		$	402.6					$	363.1		$	404.5
Deferral		0.8			0.6			0.9			0.7			0.8						2.4			2.4
Amortization net of interest:
Unlocking		12.6			-			(1.0	)		0.1			(5.3	)					13.5			(6.2	)
Amortization excluding unlocking		(6.5	)		(6.8	)		(6.0	)		(6.7	)		(7.4	)					(18.2	)		(20.1	)
Deferrals, net of amortization included in expense assessments		6.9			(6.2	)		(6.1	)		(5.9	)		(11.9	)					(2.3	)		(23.9	)
Foreign currency translation adjustment		4.7			17.9			2.0			8.1			7.5						32.0			17.7
Balance at end of period	$	392.8		$	404.5		$	400.4		$	402.6		$	398.2					$	392.8		$	398.2

9/30/2007																						PAGE 28
*Lincoln UK*
*Operational Data*
Unaudited [Billions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change

Unit Linked Assets
Balance-Beg-of-Period	$	7.857		$	8.118		$	8.757		$	8.906		$	9.168			16.7	%	$	7.320		$	8.757			19.6	%

Deposits		0.105			0.071			0.068			0.100			0.079			-24.8	%		0.247			0.247
Withdrawals (including charges) and Deaths		(0.218	)		(0.232	)		(0.240	)		(0.251	)		(0.251	)		-15.1	%		(0.606	)		(0.742	)		-22.4	%
Net Flows		(0.113	)		(0.161	)		(0.172	)		(0.151	)		(0.172	)		-52.2	%		(0.359	)		(0.495	)		-37.9	%
Investment income and change in market value		0.275			0.424			0.277			0.229			0.025			-90.9	%		0.487			0.531			9.0	%
Foreign Currency Adjustment		0.098			0.376			0.045			0.183			0.171			74.5	%		0.670			0.399		NM
Unit Linked Assets - End-of-Period	$	8.118		$	8.757		$	8.906		$	9.168		$	9.192			13.2	%	$	8.118		$	9.192			13.2	%

Individual Life In-force	$	18.464		$	19.345		$	19.307		$	19.605		$	19.757			7.0	%	$	18.464		$	19.757			7.0	%

Exchange Rate - Dollars to Pounds
For-the-Period		1.878			1.930			1.964			1.989			2.025			7.8	%		1.820			1.993			9.5	%
End-of-Period		1.872			1.958			1.968			2.008			2.046			9.3	%		1.872			2.046			9.3	%

9/30/2007																						PAGE 29
*Lincoln Financial Media*
*Income Statements*
Unaudited [Millions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
*Operating Results*
Communications revenues, net	$	59.8		$	70.0		$	67.2		$	57.4		$	59.7			-0.2	%	$	117.3		$	184.4			57.2	%
Cost of sales		10.3			15.2			17.0			7.7			10.8			4.9	%		17.9			35.5			98.3	%
Operating expenses		21.0			21.7			24.2			23.4			22.5			7.1	%		43.3			70.2			62.1	%
Station operating income		28.5			33.1			26.0			26.3			26.3			-7.7	%		56.1			78.7			40.3	%
Depreciation and amortization		2.7			2.6			4.2			2.7			2.7			-			8.7			9.5			9.2	%
General and administrative expenses		1.4			1.2			1.3			1.0			1.0			-28.6	%		3.2			3.3			3.1	%
Taxes, licenses and fees		1.5			1.8			1.3			1.4			1.4			-6.7	%		1.5			4.1			173.3	%
Net interest expense and other		0.3			0.3			0.1			0.2			0.2			-33.3	%		0.6			0.5			-16.7	%

Income from operations before Federal income taxes		22.6			27.2			19.2			21.1			21.1			-6.6	%		42.2			61.3			45.3	%

Federal income taxes		8.0			9.6			6.8			7.4			7.4			-7.5	%		15.7			21.7			38.2	%

*Income from Operations*	$	14.6		$	17.5		$	12.4		$	13.6		$	13.6			-6.8	%	$	26.5		$	39.6			49.4	%

*Effective tax rate on*
*Income from Operations*		35.4	%		35.4	%		35.5	%		35.3	%		35.3	%					37.2	%		35.3	%





*Other Operations ⁽¹⁾*
Unaudited [Millions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change

*Operating Revenue*
Premiums	$	0.9		$	3.8		$	2.1		$	(1.2	)	$	0.9					$	1.5		$	1.7			13.3	%
Net investment income		59.6			53.1			46.7			44.5			46.8			-21.5	%		171.2			138.1			-19.3	%
Amortization of deferred gain on
indemnity reinsurance ⁽²⁾		18.8			18.8			18.6			18.6			18.6			-1.1	%		56.3			55.8			-0.9	%
Other revenue and fees		(4.5	)		(4.9	)		(2.9	)		3.0			(6.3	)		-40.0	%		(6.4	)		(6.1	)		4.7	%
Inter-segment elimination of investment advisory fees		(23.3	)		(25.2	)		(24.5	)		(19.6	)		(22.6	)		3.0	%		(71.8	)		(66.7	)		7.1	%
*Total Operating Revenue*		51.4			45.6			40.0			45.3			37.4			-27.2	%		150.7			122.8			-18.5	%

*Operating Expenses*
Insurance benefits		3.9			7.3			5.7			7.7			5.0			28.2	%		9.6			18.4			91.7	%
Interest credited to contractholder funds		36.1			37.1			37.1			32.2			35.3			-2.2	%		106.6			104.6			-1.9	%
Operating and acquisition expenses		(7.3	)		33.8			16.9			34.9			43.6		NM				20.0			95.3		NM
Taxes, licenses and fees		2.6			1.2			2.7			(0.5	)		3.1			19.2	%		6.2			5.3			-14.5	%
Interest		66.7			64.3			60.8			72.3			68.5			2.7	%		152.6			201.6			32.1	%
Inter-segment elimination of investment advisory fees		(23.3	)		(25.2	)		(24.5	)		(19.6	)		(22.6	)		3.0	%		(71.8	)		(66.7	)		7.1	%
*Total Operating Expenses*		78.8			118.6			98.6			126.9			132.9			68.7	%		223.1			358.4			60.6	%

Loss from operations before Federal income taxes		(27.4	)		(73.0	)		(58.5	)		(81.6	)		(95.5	)	NM				(72.4	)		(235.6	)	NM

Federal income taxes		(15.9	)		(34.5	)		(23.3	)		(35.1	)		(36.5	)	NM				(35.0	)		(94.8	)	NM

*Loss from Operations*	$	(11.5	)	$	(38.4	)	$	(35.2	)	$	(46.6	)	$	(58.9	)	NM			$	(37.4	)	$	(140.7	)	NM


⁽¹⁾ Includes eliminations of intercompany transactions.
⁽²⁾ Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

9/30/2007																						PAGE 30
*Consolidated Domestic Deposits/Account Balances*
Unaudited [Billions of Dollars]


	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2006			2006			2007			2007			2007			Change			2006			2007			Change
Deposits - For the Period
Individual Markets - Fixed Annuities	$	1.062		$	1.100		$	0.821		$	0.982		$	1.231			15.9	%	$	2.405		$	3.034			26.2	%
Individual Markets - Variable Annuities		1.658			2.061			2.000			2.295			2.247			35.5	%		5.191			6.543			26.0	%
Individual Markets - Life Insurance		0.753			1.101			1.039			1.005			0.980			30.1	%		2.264			3.024			33.6	%
Employer Markets - Fixed Annuities		0.268			0.183			0.299			0.233			0.305			13.8	%		0.763			0.837			9.7	%
Employer Markets - Variable Products⁽¹⁾		0.818			0.916			1.188			1.041			1.219			49.0	%		2.723			3.448			26.6	%
Employer Markets - Executive Benefits		0.058			0.085			0.065			0.079			0.052			-10.3	%		0.182			0.196			7.7	%
Inv Mgmt - Annuities		0.960			0.932			1.300			0.902			0.891			-7.2	%		2.715			3.093			13.9	%
Inv Mgmt - Mutual Funds		1.151			1.768			1.753			1.896			1.543			34.1	%		3.849			5.192			34.9	%
Inv Mgmt - Managed Acct. & Other		0.386			0.493			0.550			0.474			0.377			-2.3	%		3.235			1.402			-56.7	%
Consolidating Adjustments		(0.817	)		(0.833	)		(0.799	)		(0.890	)		(0.878	)		-7.5	%		(2.071	)		(2.567	)		-23.9	%
Total Gross Retail Deposits		6.297			7.805			8.217			8.016			7.968			26.5	%		21.255			24.201			13.9	%

Inv Mgmt - Institutional		2.406			4.888			2.431			2.877			2.934			21.9	%		10.214			8.242			-19.3	%
Consolidating Adjustments		(0.202	)		(0.109	)		(0.112	)		(0.188	)		(0.030	)		85.1	%		(0.824	)		(0.330	)		60.0	%
Total Gross Deposits	$	8.501		$	12.584		$	10.536		$	10.706		$	10.873			27.9	%	$	30.645		$	32.114			4.8	%


Account Balances - End of Period
Individual Markets - Fixed Annuities	$	16.894		$	16.733		$	16.449		$	16.270		$	16.383			-3.0	%	$	16.894		$	16.383			-3.0	%
Individual Markets - Variable Annuities		43.977			48.169			50.300			55.171			58.293			32.6	%		43.977			58.293			32.6	%
Individual Markets - Life Insurance		25.821			26.490			26.924			27.465			27.875			8.0	%		25.821			27.875			8.0	%
Employer Markets - Fixed Annuities		11.061			11.006			10.993			10.940			10.891			-1.5	%		11.061			10.891			-1.5	%
Employer Markets - Variable Products⁽¹⁾		21.166			22.650			23.482			25.024			25.745			21.6	%		21.166			25.745			21.6	%
Employer Markets - Executive Benefits		4.252			4.305			4.264			4.353			4.391			3.3	%		4.252			4.391			3.3	%
Inv Mgmt - Annuities		14.129			15.151			15.467			12.780			12.814			-9.3	%		14.129			12.814			-9.3	%
Inv Mgmt - Mutual Funds		17.068			17.875			18.747			19.894			20.274			18.8	%		17.068			20.274			18.8	%
Inv Mgmt - Managed Acct. & Other		16.279			17.594			17.681			18.215			18.092			11.1	%		16.279			18.092			11.1	%
Consolidating Adjustments		(13.649	)		(14.687	)		(15.025	)		(12.240	)		(12.300	)		9.9	%		(13.649	)		(12.300	)		9.9	%
Total Retail Account Balances		156.998			165.287			169.282			177.871			182.458			16.2	%		156.998			182.458			16.2	%

Inv Mgmt - Institutional		42.035			46.686			46.251			46.836			48.536			15.5	%		42.035			48.536			15.5	%
Consolidating Adjustments		(3.510	)		(3.604	)		(2.829	)		(2.604	)		(2.529	)		27.9	%		(3.510	)		(2.529	)		27.9	%
Total Account Balances	$	195.524		$	208.369		$	212.704		$	222.103		$	228.465			16.8	%	$	195.524		$	228.465			16.8	%


*Total Domestic Net Flows*
Unaudited [Billions of Dollars]

	Three Months Ended																		Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
For the Period Ended	2006			2006			2007			2007			2007			Change			2006			2007			Change

Individual Markets - Life	$	0.491		$	0.727		$	0.698		$	0.586		$	0.635			29.3	%	$	1.296		$	1.918			48.0	%
Individual Markets - Annuities		0.304			0.892			0.754			1.138			1.291		NM				1.773			3.183			79.5	%
Employer Markets - Defined Contribution		0.037			0.010			0.221			0.074			0.133			259.5	%		0.331			0.428			29.3	%
Employer Markets - Executive Benefits		(0.011	)		(0.007	)		(0.075	)		0.026			(0.005	)		54.5	%		0.064			(0.054	)	NM
Investment Management - Retail		(0.300	)		0.050			0.233			(0.277	)		(0.334	)		-11.3	%		1.327			(0.378	)	NM
Consolidating Adjustments		0.012			(0.092	)		(0.004	)		0.330			0.071		NM				0.086			0.396		NM
Total Retail Net Flows		0.532			1.580			1.827			1.877			1.790			236.5	%		4.876			5.494			12.7	%

Investment Management - Institutional		1.046			2.666			(0.321	)		(0.148	)		0.425			-59.4	%		5.324			(0.044	)	NM
Consolidating Adjustments		0.139			0.068			0.048			(0.026	)		0.128			-7.9	%		0.053			0.150		NM
Total Net Flows	$	1.717		$	4.315		$	1.554		$	1.702		$	2.343			36.5	%	$	10.254		$	5.600			-45.4	%


⁽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.

9/30/2007									PAGE 31
*Consolidated Investment Data - Assets Managed*
Unaudited [Billions of Dollars]

	As of & #160;
	Sept.		Dec.		March		June		Sept.		%
	2006		2006		2007		2007		2007		Change
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	55.825	$	55.853	$	56.256	$	55.447	$	56.086		0.5	%
Equity securities - available for sale		0.662		0.700		0.714		0.687		0.670		1.2	%
Trading securities		3.172		3.036		2.910		2.818		2.717		-14.3	%
Other investments		11.948		11.898		11.970		11.916		12.075		1.1	%
Total LNC Investments		71.608		71.488		71.849		70.868		71.548		-0.1	%
Separate accounts		74.357		80.534		83.147		89.497		92.903		24.9	%
Cash and invested cash		1.108		1.621		0.900		0.989		1.326		19.7	%
Total LNC		147.073		153.642		155.897		161.353		165.777		12.7	%

Non-affiliate assets managed		73.227		79.881		81.134		83.709		85.684		17.0	%

Total Assets Managed	$	220.300	$	233.523	$	237.031	$	245.063	$	251.461		14.1	%

Assets Managed by Advisor
Investment Management segment
(See page 26 for additional detail)	$	89.511	$	97.307	$	98.146	$	97.725	$	99.716		11.4	%
DLIA-Corp
(Assets managed internally-see page 26)		67.410		67.437		67.658		66.423		67.324		-0.1	%
Lincoln UK		9.440		10.108		10.255		10.536		10.589		12.2	%
Domestic Policy Loans (excluding Lincoln UK)		2.720		2.755		2.763		2.783		2.786		2.4	%
Non-LNC Affiliates		51.219		55.916		58.209		67.596		71.045		38.7	%
Total Assets Managed	$	220.300	$	233.523	$	237.031	$	245.063	$	251.461		14.1	%

9/30/2007													PAGE 32
*Consolidated Investment Data*
Unaudited [Millions of Dollars]

	Three Months Ended
	Sept.			Dec.			March			June			Sept.			%
	2006			2006			2007			2007			2007			Change

*Net Investment Income*

Fixed maturity AFS securities	$	824.8		$	841.7		$	843.8		$	847.1		$	851.9			3.3	%
Equity AFS securities		7.9			8.5			8.6			11.8			10.4			31.6	%
Trading securities		49.2			48.6			45.4			44.4			44.0			-10.6	%
Mortgage loans on real estate		137.8			128.5			130.6			131.8			123.0			-10.7	%
Real estate		13.3			20.6			15.2			12.5			15.5			16.5	%
Policy loans		43.0			43.7			42.6			44.3			43.0
Invested cash		33.0			15.6			18.2			14.7			18.8			-43.0	%
Other investments		41.3			71.8			29.8			109.7			8.5			-79.4	%
Investment revenue		1,150.3			1,179.0			1,134.2			1,216.2			1,115.2			-3.1	%
Investment expense		(42.4	)		(52.6	)		(44.6	)		(46.3	)		(48.3	)		-13.9	%

*Net Investment Income*	$	1,107.9		$	1,126.3		$	1,089.5		$	1,169.8		$	1,066.9			-3.7	%

Mean Invested Assets (Amortized Cost)	$	70,646.9		$	70,451.4		$	69,905.7		$	70,062.2		$	70,535.5


Ratio of Net Investment Income Over Mean Invested Assets		6.27	%		6.39	%		6.23	%		6.68	%		6.05	%

	Three Months Ended
	Sept.			Dec.			March			June			Sept.			%
	2006			2006			2007			2007			2007			Change
*Realized Investment Gains (Losses)*
Fixed maturities	$	6.7		$	10.6		$	44.2		$	(20.2	)	$	(17.8	)	NM
Equity securities		-			-			2.2			4.0			1.2		NM
Other gains (losses), net		(5.5	)		3.5			(0.1	)		9.4			(5.0	)		9.1	%
Policyholders' interest		2.0			7.6			(1.9	)		(0.2	)		(14.0	)	NM
Capital gains expense		-			-			-			-			-		NM
Sale of affiliate		-			-			-			-			-		NM
Total pretax gains (losses)		3.1			21.7			44.4			(7.0	)		(35.6	)	NM
Amortization of DAC, VOBA and deferred
sales inducements		(8.9	)		(8.9	)		(17.9	)		(1.6	)		0.2			102.2	%
Income taxes		(1.7	)		3.4			9.3			(3.8	)		(12.2	)	NM
Realized investment gains (losses), net of taxes	$	(4.1	)	$	9.4		$	17.1		$	(4.9	)	$	(23.2	)	NM


				As of September 30, 2007									As of December 31, 2006
				Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities [Millions of Dollars]
Fixed Maturity Sec (Fair Value)				$	58,800.5			98.9	%				$	58,889.8			98.8	%
Fixed Maturity Sec (Amortized Cost)					58,591.9			98.9	%					57,725.8			98.9	%

Equity Securities (Fair Value)					672.5			1.1	%					700.2			1.2	%
Equity Securities (Amortized Cost)					669.6			1.1	%					656.8			1.1	%

*% of Available-for-Sale Fixed Maturity Securities (Based on Fair Value)*
Treasuries and AAA								22.9	%								19.6	%
AA or better								33.1	%								28.1	%
BB or less								5.2	%								6.3	%

*General Account Investments*				As of September 30, 2007									As of December 31, 2006
				Amount			% of Total						Amount			% of Total
Fixed maturities- security sector:
Corporate bonds				$	44,089.7			78.6	%				$	45,489.4			81.4	%
U.S. government bonds					239.4			0.4	%					263.4			0.5	%
Foreign government bonds					1,030.0			1.8	%					1,141.6			2.0	%
Mortgage backed securities					10,479.7			18.7	%					8,691.3			15.6	%
State and municipal bonds					152.1			0.3	%					159.4			0.3	%
Preferred stocks - redeemable					95.3			0.2	%					108.3			0.2	%
Total				$	56,086.1			100.0	%				$	55,853.4			100.0	%


	As of & #160;
	Sept.			Dec.			March			June			Sept.			%
	2006			2006			2007			2007			2007			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed Maturity	$	55,824.9		$	55,853.4		$	56,255.6		$	55,447.0		$	56,086.1			0.5	%
Equity		662.0			700.2			713.9			686.8			670.3			1.3	%
Trading securities		3,172.5			3,036.3			2,909.7			2,818.3			2,716.6			-14.4	%
Mortgage loans on real estate & real estate		8,004.5			7,805.6			7,822.2			7,698.4			7,665.7			-4.2	%
Policy loans		2,724.9			2,759.7			2,766.8			2,787.0			2,790.2			2.4	%
Derivative Investments		349.4			415.3			412.6			375.9			554.1			58.6	%
Other investments		869.3			917.1			968.6			1,054.3			1,064.6			22.5	%
Total	$	71,607.5		$	71,487.6		$	71,849.3		$	70,867.7		$	71,547.6			-0.1	%

Lincoln National (LNC) 8-KInvestments in Distribution Drive Growth in Production Across Segments