Lincoln National (LNC) 8-K Long-term earnings drivers and capital position remain strong despite volatile markets

Exhibit 99.2

Lincoln  Statistical Report
		first Q U A R T E R
	2 0 0 8
The financial data in this document is dated April 29, 2008 and has not been updated since that date.  LNC does not intend to update this document.

Lincoln Financial Group

Statistical Report

First Quarter

2008

Table of Contents
LFG Analyst Coverage
Notes
Financial Highlights	1 - 3
Consolidated Expense Detail	4
Operating Results Summary	5
Consolidated Statements of Income	6
Consolidating Statements of Income from Operations - Current Year	7
Consolidating Statements of Income from Operations - Prior Year	7(B)
Consolidated Balance Sheets	8
Balance Sheet Data - Segment Highlights	9
Individual Markets
Individual Life Insurance
Income Statements & Operational Data	10
Operational Data	11
Account Value Roll Forward	12
Individual Annuities
Income Statements & Operational Data	13
Account Value Roll Forward	14
Account Values	15
Employer Markets
Defined Contribution
Income Statements & Operational Data	16
Account Value Roll Forward	17
Account Value Roll Forward - By Product	17(B)
Supplemental Data	18
Executive Benefits
Income Statements & Operational Data	19
Account Value Roll Forward & Supplemental Data	20
Group Protection
Income Statements & Operational Data	21
Supplemental Data	22
Investment Management
Income Statements	23
Assets Under Management Roll Forward	24
Assets Under Management Roll Forward (Continued)	24(B)
Lincoln UK
Income Statements	25
Operational Data	26
Other Operations	27
Discontinued Operations	27
Domestic Deposits / Account Balances / Net Flows	28
Consolidated Investment Data
Assets Managed	29
Other Investment Data	30

LFG Analyst Coverage

First Quarter, 2008

FIRM	ANALYST	PHONE NUMBER
Banc of America Securities	Tamara Kravec	212-583-8212
Bernstein	Suneet Kamath	212-756-4587
Citigroup	Colin Devine	212-816-1682
Credit Suisse	Tom Gallagher	212-538-2010
Deutsche Bank	Darin Arita	212-250-7321
Dowling & Partners	Paul Goulekas	860-676-8600
Fox-Pitt Kelton Cochran Caronia Waller	Mark Finkelstein	312-425-4079
Goldman Sachs & Company	Tom Cholnoky	212-902-3408
JP Morgan	Jimmy Bhullar	212-622-6397
Keefe, Bruyette & Woods, Inc.	Jeff Schuman	860-722-5902
Langen McAlenney	Bob Glasspiegel	860-724-1203
Lehman Brothers	Eric Berg	212-526-2805
Merrill Lynch	Ed Spehar	212-449-4245
Morgan Stanley	Nigel Dally	212-761-6235
Raymond James & Associates Inc.	Steven Schwartz	312-612-7686
UBS	Andrew Kligerman	212-713-2492
Wachovia	John Hall	212-214-8032

Investor inquiries may be directed to:

Jim Sjoreen, Vice President, Investor Relations

Email: Jim.Sjoreen@lfg.com

Voice: (484) 583-1420

Fax: (484) 583-3962

Note: This list is provided for informational purposes only.  LFG does not endorse the analyses, conclusions, or recommendations contained in any report issued by these or any other analysts.

** Statistical data will be available immediately after the release of earnings for each quarter through LNC’s Investor Relations website: http://www.LincolnFinancial.com/investor.

3/31/2008		ii
NOTES
Definitions and Presentation
"Income from Operations," "Operating Revenues," and "Return on Capital" are non-GAAP financial measures and do not replace
GAAP revenues 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 initial impact of the adoption of changes in accounting principles;
	*    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;
	*    Losses on early retirement of debt, including subordinated debt; and
	*    Income (loss) from discontinued operations.
*	Operating revenues represent GAAP revenues excluding the following, as applicable:
	*    Realized gains and 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 stockholders' equity
	represents the effect of leveraging on LNC's consolidated results.
Income from operations, operating revenues, and return on capital are internal measures used by LNC in the management of its
operations.  Management believes that these performance measures explain the results of 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 premiums,
	in force, spreads and assets under management.
*	Sales as reported consist of the following:
	*   Universal Life ("UL"), including MoneyGuard®, and corporate owned life insurance ("COLI") - first year
	commissionable premiums plus 5% of excess premiums received, including UL internal replacements;
	*   Whole Life and Term - first year paid premiums;
	*   Annuity - deposits from new and existing customers;
	*   Group Protection - annualized first year premiums from new policies; and
	*   Investment Management Retail Sales and Institutional Inflows - contributions, transfer in kind purchases
	and reinvested dividends for new and existing accounts.
Our roll forwards of Deferred Acquisition Costs ("DAC") and Value of Business Acquired ("VOBA"), Deferred Sales Inducements
("DSI") and Deferred Front-End Loads ("DFEL") disclose the net impact of prospective and retrospective unlocking on
amortization for these accounts.  This information helps 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 represents 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.  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 and Results of Operations -
	Critical Accounting Policies and Estimates” of our 2007 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

revenues.

After-tax operating margin is calculated as income (loss) from operations divided by operating revenues.

In 2007, we executed plans to divest our television broadcasting, sports programming and Charlotte radio stations.  During the

fourth quarter of 2007, we entered into a definitive agreement to sell our television broadcasting, Charlotte radio and sports

programming businesses.  The divestiture of the sports programming business closed on November 30, 2007, the Charlotte

radio station business closed on January 31, 2008 and the television broadcasting closed on March 31, 2008.  Accordingly, in

the periods prior to the closings, the assets and liabilities of these businesses not sold have been reclassified as held-for-sale

for all periods presented, and are reported within other assets and other liabilities on our Consolidated Balance Sheets.  The

results of operations of these businesses have been reclassified into income from discontinued operations for all periods

presented on the Financial Highlights, Operating Results Summary and Consolidated Statements of Income.

Inter-segment transfer refers to a transfer from Individual Markets - Annuities to Employer Markets - Defined Contribution.

Reclassifications

During the first quarter of 2008, our Institutional Pension business was moved from the Executive Benefits segment to Other

Operations.  Therefore, we have restated prior periods for these segments to conform to the current presentation.  Certain other

amounts reported in prior periods have also been reclassified to conform to the current presentation.  These reclassifications

had no effect on net income or total stockholders' equity in the prior periods.

3/31/2008										PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)
	For the Quarters Ended March 31,
							Change
	2008			2007			Amount			%
Income from Operations - By Segment
Individual Life Insurance	$	145.5		$	166.6		$	(21.1	)		-12.7	%
Individual Annuities		128.9			121.0			7.9			6.5	%
Total Individual Markets		274.4			287.6			(13.2	)		-4.6	%
Defined Contribution		40.2			49.7			(9.5	)		-19.1	%
Executive Benefits		11.9			11.9			-			-
Group Protection		26.3			23.1			3.2			13.9	%
Total Employer Markets		78.4			84.7			(6.3	)		-7.4	%
Investment Management		12.1			16.2			(4.1	)		-25.3	%
Lincoln UK		10.7			10.9			(0.2	)		-1.8	%
Other Operations		(42.3	)		(28.0	)		(14.3	)		-51.1	%
Total Income from Operations (1)		333.3			371.4			(38.1	)		-10.3	%
Realized gain (loss) on investments and derivatives		(27.0	)		17.1			(44.1	)	NM
Net gain on reinsurance
derivatives/trading securities		0.6			-			0.6		NM
Gain on sale of subsidiaries/businesses		1.5			-			1.5		NM
Reserve development, net of related amortization
on business sold through indemnity reinsurance		0.4			0.2			0.2			100.0	%
Income (loss) from discontinued operations (2)		(4.2	)		7.7			(11.9	)	NM
Initial impact of the adoption of SFAS 157		(15.5	)		-			(15.5	)	NM
Net Income	$	289.1		$	396.5		$	(107.4	)		-27.1	%
Earnings per Share (Diluted)
Income from Operations (1)	$	1.28		$	1.33		$	(0.05	)		-3.8	%
Realized gain (loss) on investments and derivatives		(0.10	)		0.06			(0.16	)	NM
Loss on sale of subsidiaries/businesses		0.01			-			0.01		NM
Income (loss) from discontinued operations (2)		(0.02	)		0.03			(0.05	)	NM
Initial impact of the adoption of SFAS 157		(0.06	)		-			(0.06	)	NM
Net Income	$	1.11		$	1.42		$	(0.31	)		-21.8	%
Operating Revenues - By Segment
Individual Life Insurance	$	987.2		$	971.4		$	15.8			1.6	%
Individual Annuities		549.9			605.1			(55.2	)		-9.1	%
Total Individual Markets		1,537.2			1,576.5			(39.3	)		-2.5	%
Defined Contribution		237.8			246.8			(9.0	)		-3.6	%
Executive Benefits		65.6			69.2			(3.6	)		-5.2	%
Group Protection		399.4			360.4			39.0			10.8	%
Total Employer Markets		702.7			676.4			26.3			3.9	%
Investment Management		120.3			150.2			(29.9	)		-19.9	%
Lincoln UK		85.6			90.7			(5.1	)		-5.6	%
Other Operations		118.5			107.6			10.9			10.1	%
Total Operating Revenues		2,564.3			2,601.4			(37.1	)		-1.4	%
Realized gain (loss) on investments and derivatives		(41.0	)		26.4			(67.4	)	NM
Gain (loss) on reinsurance embedded
derivatives/trading securities		0.4			(0.2	)		0.6		NM
Gain on sale of subsidiaries/ businesses		2.5			-			2.5		NM
Amortization of deferred gain on indemnity
reinsurance related to reserve developments		0.7			0.3			0.4			133.3	%
Initial impact of the adoption of SFAS 157		(3.2	)		-			(3.2	)	NM
Total Revenues	$	2,523.6		$	2,628.0		$	(104.4	)		-4.0	%
(1) Income from operations includes restructuring charges, after-tax, of $0.6 million, or -0- cents per share, and $2.5 million, or 1 cent per share, for the quarters ended March 31, 2008 and 2007, respectively.
(2) Contains discontinued operations and the loss on disposal. See Discontinued Operations on page 27 for additional details.

3/31/2008										PAGE 2
Financial Highlights
Unaudited (in billions)
Operational Data by Segment	For the Quarters Ended March 31,
							Change
	2008			2007			Amount			%
Individual Markets
Individual Annuities
Gross deposits	$	3.025		$	2.821		$	0.204			7.2	%
Net flows		1.181			0.754			0.427			56.6	%
Account values (gross)		72.666			68.438			4.228			6.2	%
Account values (net of reinsurance)		71.361			66.749			4.612			6.9	%
Individual Life Insurance
Sales (in millions) (1)		145.4			203.5			(58.0	)		-28.5	%
Life insurance in force		521.047			508.411			12.635			2.5	%
Account values		27.881			26.924			0.957			3.6	%
Employer Markets
Defined Contribution
Gross deposits (2)	$	1.552		$	1.487		$	0.065			4.4	%
Net flows		0.281			0.221			0.060			27.1	%
Account values - annuities		27.509			28.669			(1.160	)		-4.0	%
Alliance and Smart Future Mutual Funds		7.254			5.807			1.447			24.9	%
Account values including Alliance and Smart Future
Mutual Funds		34.763			34.475			0.288			0.8	%
Executive Benefits
COLI/BOLI sales (in millions)		28.2			20.4			7.8			38.2	%
Life insurance in force		15.826			14.747			1.080			7.3	%
Account values		4.460			4.264			0.196			4.6	%
Group Protection
Annualized sales (in millions)		54.1			60.5			(6.5	)		-10.7	%
Loss ratio (3)		71.0	%		72.7	%	NM			NM
Investment Management
Retail sales	$	3.495		$	3.603		$	(0.108	)		-3.0	%
Retail net flows		(0.655	)		0.233			(0.888	)	NM
Institutional inflows		1.229			2.431			(1.202	)		-49.4	%
Institutional net flows		(0.510	)		(0.321	)		(0.189	)		-58.9	%
Total sales and inflows		4.724			6.034			(1.311	)		-21.7	%
Total net flows		(1.166	)		(0.088	)		(1.077	)	NM
Assets under management - retail and institutional		78.537			98.146			(19.608	)		-20.0	%
Assets under management - general account		67.340			67.658			(0.318	)		-0.5	%
Assets under management - total segment		145.877			165.804			(19.927	)		-12.0	%
Consolidated
Domestic retail deposits	$	7.710		$	8.217		$	(0.507	)		-6.2	%
Domestic retail account balances		172.831			169.282			3.549			2.1	%
Domestic retail net flows		1.359			1.827			(0.468	)		-25.6	%
Domestic deposits		8.846			10.536			(1.690	)		-16.0	%
Domestic net flows		0.878			1.554			(0.676	)		-43.5	%
Assets under management		224.725			237.000			(12.275	)		-5.2	%
(1) Sales for Individual Life Insurance consist of first year commissionable premiums for Universal Life ("UL"), including MoneyGuard® , plus 5% of excess premiums received, including UL internal replacements, and first year paid premiums for Whole Life and Term products.
(2) Includes deposits for Alliance and Smart Future Mutual Funds which are not included in separate account liabilities on our Consolidated Balance Sheets.
(3) Represents combined loss ratio for Life, Disability and Dental business.

3/31/2008										PAGE 3
Financial Highlights
Unaudited (millions of dollars)
	For the Quarters Ended March 31,
							Change
	2008			2007			Amount			%
Balance Sheet Assets - End-of-Period	$	185,349.2		$	181,327.1		$	4,022.1			2.2	%
Stockholders' Equity
Beginning-of-period (including AOCI)	$	11,718.4		$	12,201.0		$	(482.6	)
End-of-period (including AOCI)		11,086.3			12,032.2			(945.9	)
End-of-period (excluding AOCI)		11,408.0			11,372.5			35.5
Average equity (excluding AOCI)		11,450.5			11,480.2			(29.6	)
Return on Equity
Net income/average equity (excluding AOCI)		10.1	%		13.8	%
Income from operations/average equity (excluding AOCI)		11.6	%		12.9	%
Return on Capital
Income from operations/average capital		9.2	%		10.4	%
Common Stock Outstanding
Average for the period - diluted		259.9			279.5			(19.6	)		-7.0	%
End-of-period - assuming conversion of preferreds		259.4			270.9			(11.5	)		-4.2	%
End-of-period - diluted		260.5			274.0			(13.5	)		-4.9	%
Book value (including AOCI)	$	42.74		$	44.42		$	(1.68	)		-3.8	%
Book value (excluding AOCI)		43.98			41.98			2.00			4.8	%
Cash Returned to Shareholders
Share repurchase - dollar amount	$	285.7		$	511.7		$	(226.0	)
Dividends declared to shareholders		107.5			106.8			0.8
Total Cash Returned to Shareholders	$	393.3		$	618.5		$	(225.2	)
Share repurchase - number of shares		5.450			7.215			(1.765	)
Dividend declared on common stock - per share	$	0.415		$	0.395		$	0.020			5.1	%
Dividend payout ratio (1)		37.3	%		27.8	%
Annualized yield (2)		3.2	%		2.3	%
Comprehensive Income (Loss)
Net income	$	289.1		$	396.5
Net unrealized gains (losses) on securities		(538.2	)		46.9
Losses on derivatives		(8.8	)		(4.0	)
Foreign currency translation		(0.8	)		3.2
Funded status of employee benefit plans		0.6			0.4
Comprehensive Income (Loss)	$	(257.9	)	$	443.0
Ratios:
Debt to total capitalization (3)		21.7	%		21.9	%
Debt to equity (3)		27.7	%		28.1	%
Ratings as of April 28, 2008:
	A.M. Best			Fitch			Moody's			Standard & Poor's
Senior Debt Ratings:		a		A				A3		A+
Financial Strength Ratings:
Lincoln National Life Insurance Company		A+		AA			Aa3			AA
First Penn-Pacific Life Insurance Company		A+		AA				A1		AA-
Lincoln Life & Annuity Company of New York		A+		AA			Aa3			AA
(1)  Indicated dividend divided by net income.
(2)  Indicated dividend divided by the closing price.
(3) Equity used in calculation excludes AOCI and $375 million of senior notes issued in October of 2007 because the proceeds were reinvested in a pool of long-term assets. Capital securities are considered 25% debt and 75% equity.

3/31/2008																PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Commissions	$	446.5		$	462.9		$	470.8		$	501.9		$	426.6			-4.4	%
General and Administrative Expenses
General and administrative expenses		390.9			432.4			418.2			432.7			400.6			2.5	%
Merger-related expenses		10.1			23.8			21.9			23.6			13.8			36.6	%
Total General and Administrative
Expenses Excluding Broker-Dealer		401.0			456.2			440.1			456.3			414.4			3.3	%
Communications expenses		14.7			15.2			13.2			13.5			15.5			5.9	%
Restructuring charges		3.9			6.2			7.4			2.9			0.9			-76.9	%
Taxes, licenses and fees		65.2			51.8			52.4			48.6			62.3			-4.4	%
Interest and debt expense		61.5			72.8			68.8			80.3			75.9			23.5	%
Total Commissions and Expenses Incurred		992.8			1,065.1			1,052.7			1,103.5			995.7			0.3	%
Less: Commissions and Expenses Capitalized		(487.4	)		(504.9	)		(511.4	)		(554.4	)		(456.6	)		6.3	%
Amortization
DAC/VOBA amortization, net of interest (1) (2)		281.6			244.5			262.5			240.7			280.4			-0.4	%
Amortization of intangibles		2.5			2.5			2.6			2.5			1.6			-37.3	%
Total Amortization		284.1			247.1			265.1			243.3			281.9			-0.8	%
Broker-Dealer Commissions and G&A		87.2			92.8			91.8			100.5			89.2			2.3	%
Total	$	876.7		$	900.1		$	898.2		$	892.9		$	910.3			3.8	%
Merger-Related Expenses (3)
Severance and employee-related charges	$	3.0		$	6.6		$	5.6		$	6.2		$	3.1			3.3	%
Systems integration and related expenses		5.6			17.7			17.9			15.1			9.3			66.1	%
Other expenses		5.4			5.7			5.8			6.6			2.3			-57.4	%
Total Merger-Related Expenses	$	14.0		$	30.0		$	29.3		$	27.9		$	14.7			5.0	%
Note: The Consolidated Expense Detail data is presented on a GAAP basis.
(1) In the second quarter of 2007, we recognized certain adjustments that reduced DAC amortization by $23 million.
(2) For the first quarter of 2008, DAC/VOBA amortization excludes the non-operating expense of $5.4 million related to the initial impact of the
adoption of SFAS 157.
(3) Represents merger-related expenses included in general and administrative expenses and restructuring charges.

3/31/2008																	PAGE 5
Operating Results Summary
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.				Dec.			March			%
	2007			2007			2007				2007			2008			Change
Operating Revenues
Individual Life Insurance (1)	$	971.4		$	957.5		$	990.1			$	1,001.7		$	987.2			1.6	%
Individual Annuities		605.1			675.3			666.3				653.6			549.9			-9.1	%
Individual Markets		1,576.5			1,632.8			1,656.4				1,655.3			1,537.2			-2.5	%
Defined Contribution		246.8			252.1			243.4				243.3			237.8			-3.6	%
Executive Benefits		69.2			66.1			64.2				66.1			65.6			-5.3	%
Group Protection		360.4			391.0			367.5				380.6			399.4			10.8	%
Employer Markets		676.4			709.2			675.2				690.0			702.7			3.9	%
Investment Management		150.2			151.0			150.1				139.0			120.3			-19.9	%
Lincoln UK		90.7			92.5			88.7				98.3			85.6			-5.6	%
Other Operations		107.6			123.1			113.0				126.6			118.5			10.1	%
Total Operating Revenues		2,601.4			2,708.6			2,683.3				2,709.3			2,564.3			-1.4	%
Realized gain (loss) on investments and derivatives		26.4			(8.6	)		(35.4	)			(108.9	)		(41.0	)	NM
Net gain (loss) on reinsurance
derivative/trading account securities		(0.2	)		4.0			(1.1	)			(0.8	)		0.4			277.8	%
Gain on sale of subsidiaries/businesses		-			-			-				6.2			2.5		NM
Amortization of deferred gain on indemnity
reinsurance related to reserve developments		0.3			7.8			0.6				0.7			0.7			98.5	%
Initial impact of the adoption of SFAS 157		-			-			-				-			(3.2	)	NM
Total Revenues	$	2,628.0		$	2,711.8		$	2,647.4			$	2,606.5		$	2,523.6			-4.0	%
Income from Operations (2)
Individual Life Insurance	$	166.6		$	176.4		$	173.6			$	158.8		$	145.5			-12.7	%
Individual Annuities		121.0			130.1			106.9				90.0			128.9			6.5	%
Individual Markets		287.6			306.5			280.5				248.8			274.4			-4.6	%
Defined Contribution		49.7			47.3			41.2				43.1			40.2			-19.1	%
Executive Benefits		11.9			10.8			8.9				11.9			11.9			-0.1	%
Group Protection		23.1			29.0			33.2				28.2			26.3			14.0	%
Employer Markets		84.7			87.1			83.4				83.1			78.4			-7.4	%
Investment Management		16.2			11.3			21.8				27.0			12.1			-25.0	%
Lincoln UK		10.9			11.7			10.3				12.7			10.7			-2.1	%
Other Operations		(28.0	)		(36.2	)		(49.8	)			(59.2	)		(42.3	)		-51.1	%
Income from Operations  (2)		371.4			380.5			346.2				312.3			333.3			-10.3	%
Realized gain (loss) on investments and derivatives		17.1			(4.9	)		(23.2	)			(71.4	)		(27.0	)	NM
Net gain (loss) on reinsurance
derivative/trading account securities		-			2.1			(0.5	)			(0.3	)		0.6		NM
Gain (loss) on sale of subsidiaries/businesses		-			-			-				(1.8	)		1.5		NM
Reserve development, net of related
amortization on business sold through indemnity reinsurance		0.2			(7.9	)		0.4				0.4			0.4			99.1	%
Income (loss) from discontinued operations (3)		7.7			6.3			6.6				(126.8	)		(4.2	)	NM
Initial impact of the adoption of SFAS 157		-			-			-				-			(15.5	)	NM
Net Income	$	396.5		$	376.0		$	329.6			$	112.5		$	289.1			-27.1	%
OTHER DATA
	For the Three Months Ended
	March			June			Sept.				Dec.			March
	2007			2007			2007				2007			2008
Stockholders' Equity
Beginning-of-period (including AOCI)	$	12,201.0		$	12,032.2		$	11,835.7			$	11,962.9		$	11,718.4
End-of-period (including AOCI)		12,032.2			11,835.7			11,962.9				11,718.4			11,086.3
End-of-period (excluding AOCI)		11,372.5			11,686.4			11,766.1				11,493.1			11,408.0
Average equity (excluding AOCI)		11,480.2			11,529.4			11,726.3				11,629.6			11,450.5
Common Shares Outstanding
Average for the period - diluted		279.5			274.4			272.5				269.4			259.9
End-of-period - diluted		274.0			274.5			271.7				266.2			260.5
Per Share Data (Diluted)
Net income	$	1.42		$	1.37		$	1.21			$	0.41		$	1.11
Income from operations   (2)		1.33			1.39			1.27				1.16			1.28
										��
Stockholders' Equity Per Share
Stockholders' Equity (including AOCI)	$	44.42		$	43.57		$	44.41			$	44.32		$	42.74
Stockholders' Equity (excluding AOCI)		41.98			43.02			43.68				43.46			43.98
Dividends declared (common stock)		0.395			0.395			0.395				0.415			0.415
Return on Equity
Net Income/Average Equity		13.8	%		13.0	%		11.2	%			3.9	%		10.1	%
Income from Operations/Average Equity		12.9	%		13.2	%		11.8	%			10.7	%		11.6	%
Market Value of Common Stock
Highest price	$	71.18		$	74.72		$	72.28			$	70.66		$	58.11
Lowest price		64.29			66.90			54.40				55.84			45.50
Closing price	$	67.79		$	70.95		$	65.97			$	58.22		$	52.00
(1) In the second quarter of 2007, we recognized certain adjustments that reduced operating revenues by $41 million. There were reductions to expenses
that offset most of this reduction in revenues.
(2) Income from operations includes after-tax restructuring charges of $0.6 million, or -0- cents per share, for the first quarter of 2008, $1.9 million or 1 cent
per share, for the fourth quarter of 2007, $4.8 million, or 2 cents per share, for the third quarter of 2007, $4.0 million, or 1 cent per share, for the second
quarter of 2007 and $2.5 million, or 1 cent per share, for the first quarter of 2007.
(3) Contains discontinued operations and the loss on disposition. See Discontinued Operations on page 27 for additional details.

3/31/2008																PAGE 6
Consolidated Statements of Income
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Revenues
Insurance premiums	$	458.9		$	488.9		$	489.1		$	507.7		$	508.5			10.8	%
Surrender charges		26.9			28.1			25.6			25.1			27.2			1.1	%
Mortality assessments (1)		311.2			299.6			320.7			328.4			330.8			6.3	%
Expense assessments (1)		441.0			429.9			505.1			512.6			486.2			10.2	%
Investment advisory fees		90.3			92.7			89.0			87.7			76.2			-15.6	%
Net investment income		1,089.5			1,169.8			1,066.4			1,058.3			968.4			-11.1	%
Other revenues and fees		164.9			181.0			168.8			170.8			145.2			-11.9	%
Amortization of deferred gain		18.6			18.6			18.6			18.6			18.5			-0.7	%
Amortization of deferred gain-reserve development		0.3			7.8			0.6			0.7			0.7			98.5	%
Realized gain (loss)		26.2			(4.7	)		(36.5	)		(103.5	)		(38.2	)	NM
Total Revenues		2,628.0			2,711.8			2,647.4			2,606.5			2,523.6			-4.0	%
Benefits and Expenses
Insurance benefits (1)		588.8			655.8			675.3			778.2			691.3			17.4	%
Interest credited to contract holder funds		604.5			631.0			625.7			593.0			509.2			-15.8	%
Operating and acquisition expenses		750.0			775.4			776.9			764.0			766.6			2.2	%
Taxes, licenses and fees		65.2			51.8			52.4			48.6			62.3			-4.4	%
Interest and debt expense		61.5			72.8			68.8			80.3			75.9			23.5	%
Total Benefits and Expenses		2,070.0			2,186.9			2,199.2			2,264.0			2,105.3			1.7	%
Income from continuing operations before taxes		558.0			524.9			448.2			342.5			418.3			-25.0	%
Federal income taxes		169.2			155.2			125.2			103.2			125.0			-26.1	%
Income from Continuing Operations		388.8			369.7			323.0			239.3			293.3			-24.6	%
Income (loss) from discontinued operations,
net of federal income taxes (2)		7.7			6.3			6.6			(126.8	)		(4.2	)	NM
Net Income	$	396.5		$	376.0		$	329.6		$	112.5		$	289.1			-27.1	%
Earnings per Share (Diluted)
Income from continuing operations	$	1.39		$	1.35		$	1.19		$	0.88		$	1.13			-18.7	%
Income (loss) from discontinued operations,
net of federal income taxes (2)		0.03			0.02			0.02			(0.47	)		(0.02	)	NM
Net Income	$	1.42		$	1.37		$	1.21		$	0.41		$	1.11			-21.8	%
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	8,420.4		$	8,534.7		$	9,100.6		$	9,337.0		$	9,579.8
Cumulative effect of adoption of SOP 05-1		(66.1	)		-			-			-			-
Initial impact of the adoption of SFAS 157		-			-			-			-			5.4
Deferrals		487.4			504.9			511.4			554.4			456.6
Amortization, net of interest: (1)
Unlocking		19.6			26.7			0.3			4.6			(1.1	)
Other amortization		(301.2	)		(271.3	)		(262.7	)		(245.4	)		(279.3	)
Deferrals, net of amortization included in
operating and acquisition expenses		205.8			260.4			249.0			313.7			176.2
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(17.9	)		(1.6	)		0.2			63.3			18.3
Adjustment related to unrealized (gains) losses
on available-for-sale securities and derivatives		(25.5	)		290.8			(27.9	)		(111.3	)		216.6
Foreign currency translation adjustment		4.1			16.3			15.1			(22.9	)		(0.9	)
Business acquired		14.0			-			-			-			-
Balance at end-of-period	$	8,534.7		$	9,100.6		$	9,337.0		$	9,579.8		$	9,995.5
Roll Forward of Deferred Front-End Loads
Balance at beginning-of-period	$	976.9		$	1,017.9		$	1,105.8		$	1,128.1		$	1,183.1
Cumulative effect of adoption of SOP 05-1		(2.0	)		-			-			-			-
Initial impact of the adoption of SFAS 157		-			-			-			-			3.2
Deferrals		77.2			125.8			97.0			112.4			102.0
Amortization, net of interest:
Unlocking		1.7			6.9			(30.8	)		(0.4	)		(3.2	)
Other amortization		(37.7	)		(52.9	)		(51.3	)		(45.9	)		(48.9	)
Deferrals, net of amortization included in
expense assessments		41.1			79.8			14.9			66.1			49.9
Adjustment related to realized losses
on available-for-sale securities and derivatives		-			(0.1	)		-			-			-
Foreign currency translation adjustment		2.0			8.1			7.5			(11.2	)		(0.4	)
Balance at end-of-period	$	1,017.9		$	1,105.8		$	1,128.1		$	1,183.1		$	1,235.6
Roll Forward of Deferred Sales Inducements
Balance at beginning-of-period	$	193.8		$	206.4		$	225.0		$	249.1		$	279.2
Cumulative effect of adoption of SOP 05-1		(2.8	)		-			-			-			-
Initial impact of the adoption of SFAS 157		-			-			-			-			1.6
Deferrals		23.7			27.4			29.8			35.5			26.0
Amortization, net of interest:
Unlocking		1.0			0.8			0.9			(0.4	)		1.1
Other amortization		(9.3	)		(9.6	)		(6.6	)		(5.2	)		(10.9	)
Deferrals, net of amortization included in
insurance benefits or interest credited		15.5			18.7			24.1			30.0			16.2
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(0.1	)		-			-			0.1			0.5
Balance at end-of-period	$	206.4		$	225.0		$	249.1		$	279.2		$	297.6
(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.
(2) Contains discontinued operations and the loss on disposition. See Discontinued Operations on page 27 for additional details.

3/31/2008																				PAGE 7
Consolidating Statements of Income from Operations
Unaudited (in millions)
For the Quarter Ended March 31, 2008
	Individual Markets				Employer Markets
	Life		Annuities		Defined Contribution			Executive Benefits			Group Protection		Investment Management		Lincoln UK		Other Operations			Consolidating Adjustments			Consolidated
Operating Revenues
Insurance premiums	$	86.0	$	31.6	$	-		$	0.1		$	370.4	$	-	$	19.1	$	1.4		$	-		$	508.5
Surrender charges		15.8		9.6		1.9			-			-		-		-		-			-			27.2
Mortality assessments		312.6		-		-			9.1			-		-		9.1		-			-			330.8
Expense assessments		116.7		271.1		59.4			4.6			-		-		37.1		(7.2	)		7.7			489.4
Investment advisory fees		-		-		-			-			-		96.2		-		7.6			(27.6	)		76.2
Net investment income		447.4		150.3		171.7			51.9			27.7		-		20.3		99.1			0.1			968.4
Amortization of deferred gain		-		-		-			-			-		-		-		18.5			-			18.5
Other revenues and fees		8.7		87.4		4.8			(0.1	)		1.2		24.1		0.1		31.2			(12.1	)		145.2
Total Operating Revenues		987.2		549.9		237.8			65.6			399.4		120.3		85.6		150.5			(32.0	)		2,564.3
Operating Expenses
Insurance benefits		295.8		17.2		(0.1	)		2.5			269.2		-		30.7		27.8			-			642.9
Interest credited to contract holder funds		258.2		83.0		105.9			38.4			-		-		-		45.8			-			531.4
Operating and acquisition expenses		183.0		266.4		71.9			4.7			79.6		97.4		38.5		62.5			(32.0	)		772.0
Taxes, licenses and fees		29.7		10.4		4.4			2.0			10.0		3.6		-		2.1			-			62.3
Interest and debt expense		-		-		-			-			-		-		-		75.9			-			75.9
Total Operating Expenses		766.8		377.0		182.1			47.6			358.8		101.1		69.2		214.1			(32.0	)		2,084.6
Income (loss) from operations before federal income taxes		220.5		173.0		55.6			18.0			40.6		19.2		16.4		(63.6	)		-			479.7
Federal income taxes		75.0		44.1		15.4			6.1			14.2		7.1		5.7		(21.2	)		-			146.4
Income from Operations	$	145.5	$	128.9	$	40.2		$	11.9		$	26.3	$	12.1	$	10.7	$	(42.3	)	$	-		$	333.3

3/31/2008																			PAGE 7(B)
Consolidating Statements of Income from Operations
Unaudited (in millions)
For the Quarter Ended March 31, 2007
	Individual Markets				Employer Markets
	Life		Annuities		Defined Contribution		Executive Benefits			Group Protection		Investment Management		Lincoln UK		Other Operations			Consolidating Adjustments			Consolidated
Operating Revenues
Insurance premiums	$	87.7	$	12.8	$	-	$	0.1		$	331.3	$	-	$	24.2	$	2.7		$	-		$	458.9
Surrender charges		15.2		9.7		2.0		-			-		-		-		(0.0	)		-			26.9
Mortality assessments		292.3		-		-		8.9			-		-		10.0		-			-			311.2
Expense assessments		111.9		226.0		59.8		4.6			-		-		37.1		1.6			-			441.0
Investment advisory fees		-		-		-		-			-		114.9		-		-			(24.5	)		90.3
Net investment income		454.0		266.3		180.3		55.8			27.9		-		19.3		86.3			(0.3	)		1,089.5
Amortization of deferred gain		-		-		-		-			-		-		-		18.6			-			18.6
Other revenues and fees		10.2		90.4		4.7		(0.1	)		1.1		35.3		0.1		33.7			(10.4	)		164.9
Total Operating Revenues		971.4		605.1		246.8		69.2			360.4		150.2		90.7		142.8			(35.2	)		2,601.4
Operating Expenses
Insurance benefits		246.0		21.4		0.0		2.8			246.6		-		36.0		36.0			-			588.8
Interest credited to contract holder funds		251.7		166.5		104.3		38.2			-		-		-		43.8			-			604.5
Operating and acquisition expenses		188.3		247.5		66.5		9.0			68.6		120.5		38.0		46.6			(34.9	)		750.0
Taxes, licenses and fees		32.9		8.9		5.1		1.2			9.7		4.1		-		3.4			-			65.2
Interest and debt expense		-		0.3		-		-			-		-		-		61.4			(0.3	)		61.5
Total Operating Expenses		718.9		444.6		176.0		51.1			324.9		124.6		74.0		191.2			(35.2	)		2,070.0
Income (loss) from operations before federal income taxes		252.5		160.5		70.8		18.2			35.5		25.6		16.7		(48.3	)		-			531.4
Federal income taxes		85.9		39.5		21.1		6.2			12.4		9.3		5.9		(20.3	)		-			160.1
Income from Operations	$	166.6	$	121.0	$	49.7	$	11.9		$	23.1	$	16.2	$	10.9	$	(28.0	)	$	-		$	371.4

3/31/2008													PAGE 8
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	March			June			Sept.			Dec.			March
	2007			2007			2007			2007			2008
ASSETS
Investments
Corporate bonds	$	45,484.0		$	44,023.4		$	44,089.7		$	44,147.9		$	43,535.4
U.S. Government bonds		244.3			248.1			239.4			222.0			231.9
Foreign government bonds		1,077.1			975.0			1,030.0			1,037.5			1,037.4
Asset and mortgage-backed securities		9,186.2			9,946.2			10,479.7			10,604.6			10,568.8
State and municipal bonds		155.5			158.7			152.1			153.1			153.0
Preferred stocks - redeemable		108.4			95.5			95.3			110.7			97.5
Common stocks		503.8			487.9			499.3			413.9			384.2
Preferred stocks-equity		210.1			198.9			171.0			104.1			90.2
Total AFS Securities		56,969.5			56,133.8			56,756.4			56,793.7			56,098.4
Trading securities		2,909.7			2,818.3			2,716.6			2,730.2			2,713.6
Mortgage loans		7,416.0			7,310.8			7,280.7			7,422.7			7,531.9
Real estate		406.2			387.6			385.0			258.3			175.3
Policy loans		2,766.8			2,787.0			2,790.2			2,834.7			2,804.0
Other long-term investments		1,345.5			1,395.1			1,584.0			1,882.1			2,232.0
Total Investments		71,813.6			70,832.5			71,512.9			71,921.6			71,555.3
Cash and invested cash		904.7			989.1			1,327.5			1,665.5			2,446.8
Premiums and fees receivable		374.9			432.3			401.2			400.6			468.1
Accrued investment income		919.2			861.0			916.5			843.3			917.3
Amount recoverable from reinsurers		8,132.1			8,179.1			8,226.7			8,237.4			8,407.2
Deferred acquisition costs and value of business acquired		8,534.7			9,100.6			9,337.0			9,579.8			9,995.5
Goodwill		4,124.8			4,159.0			4,159.3			4,143.7			4,128.4
Other assets		3,375.6			3,599.5			3,432.6			3,529.9			2,727.6
Separate account assets		83,147.5			89,497.2			92,903.1			91,113.3			84,703.1
Total Assets	$	181,327.1		$	187,650.1		$	192,216.8		$	191,435.1		$	185,349.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Contract benefits and other contract holder funds:
Reserves	$	13,874.7		$	13,870.6		$	14,169.0		$	14,765.6		$	15,299.0
Unpaid claims		1,149.5			1,171.2			1,148.3			1,240.7			1,202.0
Premium deposit funds		20,115.8			20,201.6			19,885.4			19,687.8			19,886.9
Contract holders' funds		38,915.2			39,206.6			39,687.2			39,952.8			40,288.9
Total future contract benefits and other
contract holder funds		74,055.2			74,450.0			74,889.9			75,646.9			76,676.9
		-			-			-			-			-
Short-term debt		493.8			231.0			327.1			550.2			395.6
Long-term debt - senior notes		2,483.4			2,382.4			2,682.5			2,892.7			2,916.4
Long-term debt - subordinated:
Capital securities		1,570.7			1,570.8			1,570.9			1,570.9			1,571.0
Junior subordinated debentures issued to
affiliated trusts		154.6			154.6			154.6			154.6			154.6
Embedded derivative - modco		229.8			157.5			191.5			219.5			205.2
Deferred gain on indemnity reinsurance		740.7			734.3			715.1			695.8			676.6
Federal income taxes		1,066.8			829.2			902.5			938.1			750.0
Other liabilities		5,352.4			5,807.3			5,916.6			5,934.8			6,213.4
Separate account liabilities		83,147.5			89,497.2			92,903.1			91,113.3			84,703.1
Total Liabilities		169,294.9			175,814.4			180,253.8			179,716.7			174,262.9
Preferred stock		0.5			0.5			0.5			0.4			0.4
Capital stock		7,318.5			7,362.1			7,308.6			7,200.5			7,074.8
Retained earnings		4,053.5			4,323.8			4,457.0			4,292.2			4,332.8
Unrealized gains on investments		528.1			16.6			56.0			86.0			(452.2	)
Gains - derivatives		46.8			35.5			31.9			53.0			44.3
Foreign currency		168.4			181.4			193.6			174.8			174.0
Funded status of employee benefit plans		(83.6	)		(84.2	)		(84.6	)		(88.5	)		(87.9	)
Total Stockholders' Equity		12,032.2			11,835.7			11,962.9			11,718.4			11,086.3
Total Liabilities and Stockholders' Equity	$	181,327.1		$	187,650.1		$	192,216.8		$	191,435.1		$	185,349.2
Stockholders' Equity Per Share	$	44.42		$	43.57		$	44.41		$	44.32		$	42.74
Book value, excluding AOCI	$	41.98		$	43.02		$	43.68		$	43.46		$	43.98
Common shares outstanding - assuming conversion of
preferred shares (in millions)		270.9			271.6			269.4			264.4			259.4

3/31/2008																			PAGE 9
Balance Sheet Data - Segment Highlights
Unaudited (in millions)
	Individual Markets
					Employer Markets
As of March 31, 2008	Life		Annuities		Defined Contribution		Executive Benefits			Group Protection		Investment Management		Lincoln UK		Other Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash	$	29,432.5	$	19,099.2	$	11,493.8	$	3,448.5		$	1,934.2	$	119.6	$	1,365.9	$	7,108.4		$	74,002.1
DAC and VOBA		5,670.0		2,570.8		564.2		298.1			129.0		-		760.4		3.0			9,995.5
Goodwill		2,192.3		1,039.8		20.2		-			274.3		247.7		16.5		337.7			4,128.4
DSI and other intangibles		92.0		295.7		4.9		-			-		4.9		-		385.9			783.4
Amounts recoverable from reinsurers		1,967.1		759.3		-		2.0			31.7		-		70.0		5,577.2			8,407.2
Separate account assets		4,216.3		54,850.4		16,265.4		1,039.7			-		-		8,079.5		251.8			84,703.1
Liabilities and Capital
Future contract benefits and other contract holder funds:
Future contract benefits		5,876.4		1,196.7		2.2		353.5			1,300.3		-		1,139.7		6,632.2			16,501.0
Other contract holder funds		25,755.6		17,622.7		11,207.0		3,053.5			16.6		-		394.4		2,126.0			60,175.8
Total future contract benefits and other contract
holder funds		31,632.0		18,819.3		11,209.2		3,407.1			1,316.9		-		1,534.1		8,758.2			76,676.9
Allocated capital (2)		7,732.9		3,570.5		914.1		362.4			983.3		351.4		389.7		(2,896.3	)		11,408.0
As of December 31, 2007
Assets
Allocated investments and cash and invested cash	$	29,473.9	$	18,080.5	$	11,460.9	$	3,498.2		$	1,934.2	$	167.7	$	1,396.1	$	7,575.5		$	73,587.1
DAC and VOBA		5,408.7		2,477.0		513.8		283.0			123.4		-		772.1		1.8			9,579.8
Goodwill		2,201.0		1,045.6		20.2		(0.0	)		274.3		247.0		16.5		339.2			4,143.7
DSI and other intangibles		93.0		278.8		3.4		-			-		5.4		-		385.7			766.3
Amounts recoverable from reinsurers		1,943.6		744.4		-		4.9			31.3		-		69.8		5,443.5			8,237.4
Separate accounts assets		4,615.5		58,508.4		17,845.2		1,032.7			-		-		8,850.4		261.1			91,113.3
Liabilities and Capital
Future contract benefits and other contract holder funds:
Future contract benefits		5,898.7		816.9		0.0		356.2			1,273.0		-		1,146.9		6,057.9			15,549.6
Other contract holder funds		25,388.1		17,749.7		10,891.7		3,039.6			17.2		-		402.9		2,608.1			60,097.3
Total future contract benefits and other contract
holder funds		31,286.8		18,566.6		10,891.7		3,395.9			1,290.2		-		1,549.8		8,666.0			75,646.9
Allocated capital (2)		7,835.8		3,552.7		898.7		353.9			968.3		348.5		361.8		(2,826.5	)		11,493.1
(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).

3/31/2008																PAGE 10
Individual Markets - Individual Life Insurance
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	87.7		$	87.8		$	82.7		$	89.6		$	86.0			-1.9	%
Surrender charges		15.2			15.7			14.0			14.1			15.8			3.7	%
Mortality assessments (1)		292.3			282.4			303.3			310.3			312.6			7.0	%
Expense assessments (1)		111.9			69.9			139.8			112.9			116.7			4.2	%
Net investment income		454.0			493.3			444.5			464.1			447.4			-1.5	%
Other revenues and fees		10.2			8.3			6.0			10.7			8.7			-14.6	%
Total Operating Revenues		971.4			957.5			990.1			1,001.7			987.2			1.6	%
Operating Expenses
Insurance benefits (1)		246.0			263.0			258.5			302.2			295.8			20.3	%
Interest credited to contract holder funds		251.7			254.0			255.1			260.2			258.2			2.6	%
Operating and acquisition expenses		221.2			171.0			219.0			199.0			212.8			-3.8	%
Total Operating Expenses		718.9			688.0			732.6			761.4			766.8			6.7	%
Income from operations before federal income taxes		252.5			269.4			257.6			240.3			220.5			-12.7	%
Federal income taxes		85.9			93.0			84.0			81.5			75.0			-12.7	%
Income from Operations	$	166.6		$	176.4		$	173.6		$	158.8		$	145.5			-12.7	%
Effective tax rate		34.0	%		34.5	%		32.6	%		33.9	%		34.0	%
Average equity	$	7,557.8		$	7,789.2		$	7,911.1		$	7,925.1		$	7,784.3
Return on average equity		8.8	%		9.1	%		8.8	%		8.0	%		7.5	%
Operating and Acquisition Expenses
Commissions	$	227.1		$	211.7		$	213.1		$	211.9		$	182.7			-19.5	%
General and administrative expenses		111.0			115.6			104.6			109.3			103.7			-6.6	%
Taxes, licenses and fees		32.9			26.6			27.3			23.5			29.7			-9.7	%
Total commissions and expenses incurred		371.1			353.8			345.1			344.7			316.1			-14.8	%
Less: commissions and expenses capitalized		(288.9	)		(272.4	)		(270.5	)		(268.1	)		(234.2	)		18.9	%
Amortization of DAC and VOBA, net of interest		139.1			89.6			144.4			122.5			130.8			-5.9	%
Net Operating and Acquisition Expenses	$	221.2		$	171.0		$	219.0		$	199.0		$	212.8			-3.8	%
General and administrative expenses -
basis points on account values - Annualized		166			170			151			156			148			(18	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	4,659.4		$	4,795.8		$	5,126.4		$	5,259.6		$	5,408.7
Deferrals		288.9			272.4			270.5			268.1			234.2
Amortization, net of interest: (1)
Unlocking		11.3			20.8			(3.8	)		6.1			(10.2	)
Other amortization		(150.4	)		(110.5	)		(140.6	)		(128.6	)		(120.6	)
Deferrals, net of amortization included in
operating and acquisition expenses		149.8			182.8			126.1			145.6			103.3
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(12.5	)		(2.4	)		0.6			56.1			7.0
Adjustment related to unrealized (gains)
losses on available-for-sale securities and derivatives		(0.9	)		150.2			6.5			(52.7	)		151.0
Balance at end-of-period	$	4,795.8		$	5,126.4		$	5,259.6		$	5,408.7		$	5,670.0
Roll Forward of Deferred Front-End Loads
Balance at beginning-of-period	$	449.5		$	490.6		$	569.0		$	585.2		$	648.7
Deferrals		65.5			112.4			83.9			98.2			87.5
Amortization, net of interest:
Unlocking		2.5			7.1			(27.0	)		0.7			(3.5	)
Other amortization		(26.9	)		(41.1	)		(40.7	)		(35.4	)		(36.0	)
Deferrals, net of amortization included in
expense assessments		41.0			78.4			16.2			63.5			48.0
Balance at end-of-period	$	490.6		$	569.0		$	585.2		$	648.7		$	696.7
(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.

3/31/2008											PAGE 11
Individual Markets - Individual Life Insurance
Operational Data
Unaudited
	For the Three Months Ended
	March		June		Sept.		Dec.		March		%
	2007		2007		2007		2007		2008		Change
Sales by Product (1) (in millions)
Universal Life
Excluding MoneyGuard®	$	166.1	$	145.0	$	143.9	$	141.3	$	113.7		-31.5	%
MoneyGuard®		7.4		9.9		10.9		12.1		11.0		49.6	%
Total		173.5		154.9		154.8		153.3		124.8		-28.1	%
Variable Universal Life		20.6		17.3		17.7		21.9		15.5		-24.4	%
Term/Whole Life		9.4		7.9		7.5		6.9		5.1		-45.4	%
Total	$	203.5	$	180.0	$	179.9	$	182.1	$	145.4		-28.5	%
First-Year Paid Premiums (in millions)
Universal Life
Excluding MoneyGuard®	$	367.9	$	315.7	$	303.8	$	304.6	$	245.4		-33.3	%
MoneyGuard®		49.2		65.9		72.4		80.4		73.6		49.6	%
Total		417.1		381.6		376.2		385.0		318.9		-23.5	%
Variable Universal Life		52.5		47.8		46.4		48.9		37.0		-29.5	%
Term/Whole Life		17.5		18.3		19.1		24.4		14.0		-19.8	%
Total	$	487.0	$	447.7	$	441.6	$	458.2	$	369.9		-24.0	%
Life Insurance In Force (in billions)
Universal Life and other	$	272.921	$	276.040	$	279.933	$	284.305	$	286.187		4.9	%
Term insurance		235.491		236.155		236.414		235.919		234.860		-0.3	%
Total Life Segment In Force	$	508.411	$	512.195	$	516.347	$	520.224	$	521.047		2.5	%
(1) Sales for Individual Life Insurance consist of first year commissionable premiums for Universal Life ("UL"), including MoneyGuard®, plus 5% of excess
premiums received, including UL internal replacements, and first year paid premiums for Whole Life and Term products.

3/31/2008																PAGE 12
Individual Markets - Individual Life Insurance
Account Value Roll Forward
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Interest Sensitive Life - Balance at Beginning-of-Period	$	21.890		$	22.228		$	22.517		$	22.818		$	23.161			5.8	%
Deposits		0.882			0.864			0.842			0.935			0.824			-6.6	%
Withdrawals and deaths		(0.264	)		(0.311	)		(0.258	)		(0.262	)		(0.314	)		-18.9	%
Net flows		0.618			0.553			0.585			0.673			0.509			-17.6	%
Contract holder assessments (1)		(0.523	)		(0.507	)		(0.527	)		(0.575	)		(0.561	)		-7.3	%
Interest credited		0.243			0.243			0.243			0.246			0.246			1.2	%
Interest Sensitive Life - Balance at End- of-Period (2)	$	22.228		$	22.517		$	22.818		$	23.161		$	23.355			5.1	%
Variable Universal Life - Balance at Beginning-of-Period	$	4.600		$	4.696		$	4.948		$	5.057		$	4.961			7.8	%
Deposits		0.157			0.142			0.137			0.151			0.143			-8.9	%
Withdrawals and deaths		(0.077	)		(0.109	)		(0.087	)		(0.079	)		(0.073	)		5.2	%
Net flows		0.080			0.033			0.050			0.072			0.070			-12.5	%
Contract holder assessments		(0.079	)		(0.080	)		(0.080	)		(0.082	)		(0.082	)		-3.8	%
Investment income and change in market value		0.095			0.299			0.139			(0.087	)		(0.423	)	NM
Variable Universal Life - Balance at End- of-Period	$	4.696		$	4.948		$	5.057		$	4.961		$	4.526			-3.6	%
Total Segment - Life Insurance Account Value Roll Forward
Balance at Beginning-of-Period	$	26.490		$	26.924		$	27.465		$	27.875		$	28.122			6.2	%
Deposits		1.039			1.005			0.980			1.086			0.967			-6.9	%
Withdrawals and deaths		(0.341	)		(0.420	)		(0.345	)		(0.341	)		(0.387	)		-13.5	%
Net flows		0.698			0.586			0.635			0.745			0.579			-17.0	%
Contract holder assessments (1)		(0.602	)		(0.586	)		(0.607	)		(0.657	)		(0.643	)		-6.8	%
Investment income and change in market value		0.338			0.542			0.382			0.159			(0.178	)	NM
Total Segment - Balance at End-of- Period	$	26.924		$	27.465		$	27.875		$	28.122		$	27.881			3.6	%
Life Product Spread Information (3)
																Change
Interest Sensitive Products																(Basis Points)
Net investment income (4) (5) (6)		6.48	%		6.99	%		6.09	%		6.30	%		6.04	%		(44	)
Interest credited to contract holders		4.46	%		4.45	%		4.41	%		4.41	%		4.34	%		(12	)
Spread (4) (5) (6)		2.02	%		2.54	%		1.68	%		1.89	%		1.70	%		(32	)
Traditional Products
Net investment income (4)		6.41	%		6.48	%		6.18	%		6.23	%		6.21	%		(20	)
(1) Interest sensitive contract holder assessments in the second quarter of 2007 includes +.017 related to certain adjustments.
(2) Includes universal life, interest sensitive whole life and the fixed investment option of VUL products.
(3) 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 and reverse repurchase agreement interest expense from our yield and 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 March 31, 2008, interest sensitive products represented approximately 81% of total interest sensitive and traditional earning assets.
(4) 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 4 bps in the 1st quarter of 2008, 16 bps in the 4th quarter of 2007, 9 bps
in the 3rd quarter of 2007, 22 bps in the 2nd quarter of 2007 and 21 bps in the 1st quarter of 2007. There was an impact on traditional products of 15 bps in the
1st quarter of 2008, 2 bps in the 4th quarter of 2007, 9 bps in the 3rd quarter of 2007, 14 bps in the 2nd quarter of 2007 and 2 bps in the 1st quarter of 2007.
(5) 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 sensitive products was (8) bps in the 1st quarter of 2008, 5 bps in the 4th quarter of 2007, (4) bps in the 3rd quarter of 2007,
70 bps in the 2nd quarter of 2007 and 14 bps in the 1st quarter of 2007. The impact of these investments on traditional products was (3) bps in the 1st quarter of
2008, (1) bp in the 4th quarter of 2007 and (6) bps in the 3rd quarter of 2007.
(6) The net investment income and spread above is partially offset by amortization associated with prepayment fee income. The impact of this offset to interest sensitive products was -0- bps in the 1st quarter of 2008, 1 bp in the 4th quarter of 2007, -0- bps in the 3rd quarter of 2007 and 8 bps in the 2nd quarter of 2007. There was an impact on traditional products of 4 bps in the 1st quarter of 2008.

3/31/2008																PAGE 13
Individual Markets - Individual Annuities
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	12.8		$	16.6		$	42.6		$	46.5		$	31.6			146.0	%
Surrender charges		9.7			10.1			9.8			9.1			9.6			-0.9	%
Expense assessments		226.0			249.9			264.9			282.7			271.1			20.0	%
Net investment income		266.3			302.2			254.1			217.7			150.3			-43.6	%
Other revenues and fees (1)		90.4			96.4			94.9			97.6			87.4			-3.3	%
Total Operating Revenues		605.1			675.3			666.3			653.6			549.9			-9.1	%
Operating Expenses
Insurance benefits		21.4			31.8			110.9			144.4			17.2			-19.9	%
Interest credited to contract holder funds		166.5			189.9			179.6			142.2			83.0			-50.1	%
Operating and acquisition expenses		256.7			278.4			235.0			256.4			276.8			7.8	%
Total Operating Expenses		444.6			500.0			525.5			542.9			377.0			-15.2	%
Income from operations before federal income taxes		160.5			175.3			140.7			110.7			173.0			7.7	%
Federal income taxes		39.5			45.2			33.8			20.7			44.1			11.5	%
Income from Operations	$	121.0		$	130.1		$	106.9		$	90.0		$	128.9			6.5	%
Effective tax rate		24.6	%		25.8	%		24.0	%		18.7	%		25.5	%
Average equity	$	3,446.7		$	3,491.1		$	3,537.8		$	3,549.1		$	3,561.6
Return on average equity		14.0	%		14.9	%		12.1	%		10.1	%		14.5	%
Income from Operations - basis points on
average account values		72			73			58			47			71
Operating and Acquisition Expenses
Commissions	$	152.1		$	178.8		$	188.9		$	212.3		$	165.6			8.9	%
General and administrative expenses		69.5			82.4			81.4			98.0			80.2			15.4	%
Broker-dealer commissions and general and
administrative expenses		87.2			92.8			91.8			100.5			89.2			2.3	%
Taxes, licenses and fees		8.9			5.7			6.0			6.1			10.4			17.2	%
Total commissions and expenses incurred		317.7			359.7			368.2			416.8			345.4			8.7	%
Less: commissions and expenses capitalized		(157.6	)		(189.3	)		(196.1	)		(230.5	)		(172.8	)		-9.6	%
Amortization of DAC and VOBA, net of interest		96.6			108.0			62.9			70.0			104.2			7.8	%
Net Operating and Acquisition Expenses	$	256.7		$	278.4		$	235.0		$	256.4		$	276.8			7.8	%
General and administrative expenses - basis
points on gross account values - Annualized (2)		41			46			44			51			44			3
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	2,050.4		$	2,082.0		$	2,236.8		$	2,347.4		$	2,477.0
Cumulative effect of adoption of SOP 05-1		(27.2	)		-			-			-			-
Initial impact of the adoption of SFAS 157		-			-			-			-			5.4
Inter-segment transfer		-			-			-			-			(6.9	)
Deferrals		157.6			189.3			196.1			230.5			172.8
Amortization, net of interest:
Unlocking		10.8			10.3			11.4			(1.8	)		9.3
Other amortization		(107.4	)		(118.3	)		(74.3	)		(68.2	)		(113.4	)
Deferrals, net of amortization included in
operating and acquisition expenses		61.0			81.4			133.2			160.5			68.6
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(2.2	)		1.0			0.2			2.5			9.2
Adjustment related to unrealized (gains)
losses on available-for-sale securities and derivatives		(14.0	)		72.4			(22.8	)		(33.5	)		17.5
Business acquired		14.0			-			-			-			-
Balance at end-of-period	$	2,082.0		$	2,236.8		$	2,347.4		$	2,477.0		$	2,570.8
Roll Forward of Deferred Front-End Loads
Balance at beginning-of-period	$	100.9		$	104.6		$	111.9		$	122.0		$	130.9
Cumulative effect of adoption of SOP 05-1		(2.0	)		-			-			-			-
Initial impact of the adoption of SFAS 157		-			-			-			-			3.2
Deferrals		9.8			11.8			11.5			11.9			11.9
Amortization, net of interest:
Unlocking		0.5			0.2			1.4			(0.4	)		0.7
Other amortization		(4.4	)		(4.7	)		(2.8	)		(2.7	)		(5.0	)
Deferrals, net of amortization included in
expense assessments		5.9			7.3			10.1			8.9			7.6
Adjustment related to realized losses
on available-for-sale securities and derivatives		-			(0.1	)		-			-			-
Balance at end-of-period	$	104.6		$	111.9		$	122.0		$	130.9		$	141.6
Roll Forward of Deferred Sales Inducements
Balance at beginning-of-period	$	193.7		$	206.2		$	224.7		$	248.7		$	278.8
Cumulative effect of adoption of SOP 05-1		(2.8	)		-			-			-			-
Initial impact of the adoption of SFAS 157		-			-			-			-			1.6
Inter-segment transfer		-			-			-			-			(1.3	)
Deferrals		23.7			27.3			29.7			35.5			25.8
Amortization, net of interest:
Unlocking		1.0			0.8			0.9			(0.4	)		1.1
Other amortization		(9.3	)		(9.6	)		(6.6	)		(5.2	)		(10.8	)
Deferrals, net of amortization included in
insurance benefits or interest credited		15.4			18.5			24.0			30.0			16.1
Adjustment related to realized (gains) losses
on available-for-sale securities		(0.1	)		(0.0	)		(0.0	)		0.1			0.5
Balance at end-of-period	$	206.2		$	224.7		$	248.7		$	278.8		$	295.7
(1)  Primarily broker-dealer revenues.
(2)  Includes distribution costs.

3/31/2008																PAGE 14
Individual Markets - Individual Annuities
Account Value Roll Forward
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Balance at Beginning-of- Period	$	18.545		$	18.139		$	17.867		$	17.813		$	17.822			-3.9	%
Business acquired		0.040			-			-			-			-			-100.0	%
Inter-segment transfer		-			-			-			-			(0.089	)	NM
Gross deposits		0.821			0.982			1.231			1.288			1.160			41.3	%
Withdrawals and deaths		(0.887	)		(0.893	)		(0.891	)		(0.706	)		(0.585	)		34.0	%
Net flows		(0.066	)		0.089			0.340			0.582			0.575		NM
Transfer from (to) variable annuities		(0.557	)		(0.560	)		(0.589	)		(0.734	)		(0.680	)		-22.1	%
Interest credited		0.153			0.172			0.166			0.125			0.048			-68.6	%
Sales inducements deferred		0.024			0.027			0.030			0.035			0.026			8.3	%
Fixed Annuities - Gross		18.139			17.867			17.813			17.822			17.701			-2.4	%
Reinsurance ceded		(1.689	)		(1.598	)		(1.430	)		(1.352	)		(1.306	)		22.7	%
Fixed Annuities (Net of Ceded) - Balance at End-of-Period (1)	$	16.449		$	16.270		$	16.383		$	16.470		$	16.395			-0.3	%
Variable Annuities - Balance at Beginning- of-Period	$	48.169		$	50.300		$	55.171		$	58.293		$	58.643			21.7	%
Inter-segment transfer		-			-			-			-			(0.206	)	NM
Gross deposits		2.000			2.295			2.247			2.593			1.865			-6.8	%
Withdrawals and deaths		(1.179	)		(1.247	)		(1.296	)		(1.367	)		(1.259	)		-6.8	%
Net flows		0.821			1.048			0.951			1.226			0.607			-26.1	%
Transfer from (to) fixed annuities		0.556			0.560			0.589			0.734			0.680			22.3	%
Investment increase and change in market value		0.754			3.263			1.582			(1.611	)		(4.758	)	NM
Variable Annuities - Balance at End-of- Period (2)	$	50.300		$	55.171		$	58.293		$	58.643		$	54.966			9.3	%
Total Annuities - Balance at Beginning-of- Period	$	66.714		$	68.438		$	73.038		$	76.106		$	76.464			14.6	%
Business acquired		0.040			-			-			-			-			-100.0	%
Inter-segment transfer		-			-			-			-			(0.295	)	NM
Gross deposits		2.821			3.277			3.478			3.880			3.025			7.2	%
Withdrawals and deaths		(2.067	)		(2.140	)		(2.187	)		(2.072	)		(1.844	)		10.8	%
Net flows		0.754			1.138			1.291			1.808			1.181			56.6	%
Transfers		(0.001	)		-			-			-			(0.001	)		-
Interest credited and change in market value		0.907			3.435			1.748			(1.485	)		(4.710	)	NM
Sales inducements deferred		0.024			0.027			0.030			0.035			0.026			8.3	%
Total Annuities - Gross		68.438			73.038			76.106			76.464			72.666			6.2	%
Reinsurance ceded		(1.689	)		(1.598	)		(1.430	)		(1.352	)		(1.306	)		22.7	%
Total Annuities (Net of Ceded) - Balance at End-of-Period	$	66.749		$	71.441		$	74.676		$	75.113		$	71.361			6.9	%
Variable Annuities Under Agreement - Included Above	$	0.163		$	0.164		$	0.161		$	0.149		$	0.128			-21.5	%
Incremental Deposits: (3)
Fixed annuities	$	0.815		$	0.976		$	1.224		$	1.282		$	1.157			42.0	%
Variable annuities		1.979			2.265			2.217			2.558			1.838			-7.1	%
Total Incremental Deposits	$	2.794		$	3.241		$	3.441		$	3.840		$	2.994			7.2	%
(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.

3/31/2008																PAGE 15
Individual Markets - Individual Annuities
Account Values
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Excluding Fixed Portion of Variable Contracts
Deposits	$	0.126		$	0.129		$	0.286		$	0.231		$	0.086			-31.7	%
Withdrawals and deaths		(0.674	)		(0.677	)		(0.651	)		(0.486	)		(0.378	)		43.9	%
Net flows	$	(0.548	)	$	(0.548	)	$	(0.365	)	$	(0.255	)	$	(0.292	)		46.7	%
Gross fixed contract account values	$	10.818		$	10.377		$	10.115		$	9.960		$	9.767			-9.7	%
Reinsurance ceded		(1.689	)		(1.598	)		(1.430	)		(1.352	)		(1.306	)		22.7	%
Net fixed contract account values	$	9.129		$	8.779		$	8.684		$	8.609		$	8.462			-7.3	%
Indexed Annuities
Deposits	$	0.160		$	0.191		$	0.199		$	0.204		$	0.218			36.3	%
Withdrawals and deaths		(0.063	)		(0.061	)		(0.059	)		(0.062	)		(0.083	)		-31.7	%
Net flows	$	0.098		$	0.130		$	0.140		$	0.143		$	0.135			37.8	%
Indexed Annuity Account Values	$	3.844		$	4.033		$	4.228		$	4.392		$	4.465			16.2	%
Fixed Portion of Variable Contracts
Deposits	$	0.535		$	0.662		$	0.746		$	0.853		$	0.856			60.0	%
Withdrawals and deaths		(0.151	)		(0.155	)		(0.181	)		(0.158	)		(0.124	)		17.9	%
Net flows	$	0.384		$	0.507		$	0.564		$	0.695		$	0.732			90.6	%
Fixed Portion of Variable Contract Account Values	$	3.476		$	3.458		$	3.470		$	3.470		$	3.469			-0.2	%
Variable Annuities - Including Fixed Portion of Variable Contracts
Deposits	$	2.535		$	2.957		$	2.993		$	3.445		$	2.721			7.3	%
Withdrawals and deaths		(1.330	)		(1.402	)		(1.477	)		(1.525	)		(1.383	)		-4.0	%
Net Flows	$	1.205		$	1.555		$	1.516		$	1.921		$	1.338			11.0	%
Variable Contract Account Values	$	53.776		$	58.629		$	61.764		$	62.112		$	58.435			8.7	%
Average Daily Variable Annuity Separate Account Values	$	49.284		$	53.465		$	55.827		$	58.628		$	55.318			12.2	%
Individual Product Spread Information																Change
																(Basis Point)
Net investment income (1) (2) (5)		5.94	%		5.92	%		5.84	%		5.93	%		5.87	%		(7	)
Interest credited to contract holders (3) (4)		3.73	%		3.50	%		4.07	%		4.11	%		4.05	%		32
Spread   (1) (2) (4) (5)		2.21	%		2.42	%		1.77	%		1.82	%		1.82	%		(39	)
(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, reverse repurchase agreement interest expense and inter-segment cash management account interest expense from our yield and spread calculations. The average crediting rate is calculated using interest credited on annuity products before DSI amortization, plus the immediate annuity reserve change (included within benefits), 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. 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.
(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 5 bps in the 1st quarter of 2008, 11 bps in the 4th quarter of 2007, 4 bps in the 3rd quarter of 2007, 11 bps in the 2nd quarter of 2007 and 5 bps in the 1st quarter of 2007.
(3) The 2007 spreads reflect a correction (a decrease) to interest credited to contract holders 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.
(4) Interest credited and our spreads include the impact of changes in the fair value of the SFAS 133/157 forward starting option liability related to our indexed annuity products. The impact of these changes in fair value on our spreads was (24) bps in the 1st quarter of 2008, (34) bps in the fourth quarter of 2007, (31) bps in the third quarter of 2007, 24 bps in the second quarter of 2007 and (10) bps in the first quarter of 2007.
(5) In the first quarter of 2008, we updated previously reported historical net investment income yields and interest rate spreads to conform to the presentation in the first quarter of 2008, which is excluding hedge derivatives and collateral from average earning assets. The impact of the changes on spreads range from 6 bps - 8 bps per quarter.

3/31/2008																PAGE 16
Employer Markets - Defined Contribution
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Surrender charges	$	2.0		$	2.2		$	1.8		$	1.8		$	1.9			-6.9	%
Expense assessments		59.8			63.0			63.5			64.7			59.4			-0.6	%
Net investment income		180.3			182.3			172.9			173.3			171.7			-4.8	%
Other revenues and fees		4.7			4.6			5.2			3.6			4.8			3.6	%
Total Operating Revenues		246.8			252.1			243.4			243.3			237.8			-3.6	%
Operating Expenses
Insurance benefits		0.0			0.0			0.0			0.0			(0.1	)	NM
Interest credited to contract holder funds		104.3			104.6			104.6			104.8			105.9			1.5	%
Operating and acquisition expenses		71.6			80.6			84.7			77.3			76.4			6.6	%
Total Operating Expenses		176.0			185.3			189.3			182.1			182.1			3.5	%
Income from operations before federal income taxes		70.8			66.8			54.1			61.2			55.6			-21.4	%
Federal income taxes		21.1			19.5			12.9			18.1			15.4			-26.8	%
Income from Operations	$	49.7		$	47.3		$	41.2		$	43.1		$	40.2			-19.1	%
Effective tax rate		29.8	%		29.2	%		23.8	%		29.6	%		27.7	%
Average equity	$	936.0		$	906.6		$	901.4		$	902.7		$	906.4
Return on average equity		21.2	%		20.9	%		18.3	%		19.1	%		17.7	%
Income from Operations - basis points on
average account values		58			53			46			47			46
Operating and Acquisition Expenses
Commissions	$	19.3		$	21.3		$	19.9		$	20.3		$	19.6			1.7	%
General and administrative expenses		49.9			54.9			59.8			53.7			51.9			4.1	%
Taxes, licenses and fees		5.1			4.4			2.2			2.1			4.4			-13.6	%
Total commissions and expenses incurred		74.2			80.6			81.9			76.1			75.9			2.3	%
Less: commissions and expenses capitalized		(22.2	)		(22.5	)		(23.7	)		(23.7	)		(23.6	)		-6.2	%
Amortization of DAC and VOBA, net of interest		19.6			22.5			26.5			24.9			24.0			22.8	%
Net Operating and Acquisition Expenses	$	71.6		$	80.6		$	84.7		$	77.3		$	76.4			6.6	%
General and administrative expenses - basis
points on account values - Annualized (1)		59			62			67			59			59			1
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	497.6		$	489.4		$	541.9		$	531.8		$	513.8
Cumulative effect of adoption of SOP 05-1		(1.4	)		-			-			-			-
Inter-segment transfer		-			-			-			-			6.9
Deferrals		22.2			22.5			23.7			23.7			23.6
Amortization, net of interest:
Unlocking		(0.5	)		(2.0	)		(5.0	)		(1.2	)		(2.5	)
Other amortization		(19.0	)		(20.5	)		(21.5	)		(23.7	)		(21.5	)
Deferrals, net of amortization included in
operating and acquisition expenses		2.6			(0.0	)		(2.8	)		(1.2	)		(0.5	)
Adjustment related to realized (gains) losses
on available-for-sale securities		(2.1	)		(0.8	)		(0.6	)		3.4			0.7
Adjustment related to unrealized (gains) losses on available-for-sale securities
		(7.2	)		53.3			(6.8	)		(20.2	)		43.2
Balance at end-of-period	$	489.4		$	541.9		$	531.8		$	513.8		$	564.2
Roll Forward of Deferred Sales Inducements
Balance at beginning-of-period	$	0.1		$	0.2		$	0.3		$	0.4		$	0.4
Inter-segment transfer		-			-			-			-			1.3
Deferrals		0.1			0.1			0.1			0.0			0.2
Amortization, net of interest:
Unlocking		(0.0	)		0.0			(0.0	)		(0.0	)		0.0
Other amortization		0.0			0.0			0.0			0.0			(0.1	)
Deferrals, net of amortization included in
insurance benefits or interest credited		0.1			0.1			0.1			0.0			0.1
Adjustment related to realized (gains) losses
on available-for-sale securities		(0.0	)		(0.0	)		(0.0	)		0.0			0.0
Balance at end-of-period	$	0.2		$	0.3		$	0.4		$	0.4		$	1.9
(1)  Includes distribution costs.

3/31/2008																PAGE 17
Employer Markets - Defined Contribution
Account Value Roll Forward
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Balance at Beginning-of-Period	$	11.006		$	10.993		$	10.940		$	10.891		$	10.889			-1.1	%
Inter-segment transfer		-			-			-			-			0.089		NM
Gross deposits		0.299			0.233			0.305			0.268			0.332			11.0	%
Withdrawals and deaths		(0.399	)		(0.376	)		(0.450	)		(0.411	)		(0.370	)		7.3	%
Net flows		(0.101	)		(0.143	)		(0.144	)		(0.143	)		(0.038	)		62.4	%
Transfer from (to) variable annuities		(0.017	)		(0.012	)		(0.011	)		0.031			0.172		NM
Interest credited		0.104			0.102			0.106			0.111			0.105			1.0	%
Fixed Annuities - Balance at End-of- Period (1)	$	10.993		$	10.940		$	10.891		$	10.889		$	11.217			2.0	%
Variable Annuities - Balance at Beginning-of-Period	$	17.475		$	17.676		$	18.480		$	18.581		$	17.876			2.3	%
Inter-segment transfer		-			-			-			-			0.206		NM
Gross deposits		0.655			0.577			0.564			0.560			0.674			2.9	%
Withdrawals and deaths		(0.813	)		(0.747	)		(0.810	)		(0.842	)		(0.833	)		-2.5	%
Net flows		(0.158	)		(0.170	)		(0.247	)		(0.283	)		(0.158	)		-
Transfer from (to) fixed annuities		0.004			0.007			(0.028	)		(0.012	)		(0.143	)	NM
Investment increase and change in market value		0.354			0.968			0.375			(0.410	)		(1.488	)	NM
Variable Annuities - Balance at End-of- Period (2)	$	17.676		$	18.480		$	18.581		$	17.876		$	16.292			-7.8	%
Total Annuities - Balance at Beginning-of-Period	$	28.482		$	28.669		$	29.421		$	29.471		$	28.765			1.0	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		0.953			0.809			0.869			0.828			1.007			5.7	%
Withdrawals and deaths		(1.212	)		(1.122	)		(1.260	)		(1.253	)		(1.203	)		0.7	%
Net flows		(0.259	)		(0.313	)		(0.391	)		(0.426	)		(0.196	)		24.3	%
Transfers		(0.012	)		(0.005	)		(0.039	)		0.019			0.028		NM
Interest credited and change in market value		0.458			1.070			0.481			(0.300	)		(1.383	)	NM
Total Annuities - Balance at End-of- Period	$	28.669		$	29.421		$	29.471		$	28.765		$	27.509			-4.0	%
Alliance and Smart Future Mutual Funds - Balance at Beginning-of-Period	$	5.175		$	5.807		$	6.543		$	7.165		$	7.293			40.9	%
Plan/Participant Rollovers		0.279			0.217			0.411			0.168			0.221			-20.8	%
Additional contributions		0.254			0.247			0.245			0.269			0.324			27.6	%
Gross deposits		0.533			0.464			0.656			0.437			0.545			2.3	%
Withdrawals and deaths		(0.054	)		(0.077	)		(0.132	)		(0.102	)		(0.069	)		-27.8	%
Net flows		0.480			0.387			0.524			0.335			0.477			-0.6	%
Transfers		0.005			0.040			(0.013	)		(0.023	)		(0.070	)	NM
Interest credited and change in market value		0.147			0.310			0.111			(0.184	)		(0.445	)	NM
Total Alliance and Smart Future Mutual
Funds - Balance at End-of-Period (3)	$	5.807		$	6.543		$	7.165		$	7.293		$	7.254			24.9	%
Total Defined Contribution Segment Account
Values - including Alliance and Smart Future Mutual Funds - Balance at Beginning-of-Period	$	33.656		$	34.475		$	35.964		$	36.636		$	36.058			7.1	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		1.487			1.273			1.525			1.265			1.552			4.4	%
Withdrawals and deaths		(1.266	)		(1.199	)		(1.392	)		(1.356	)		(1.271	)		-0.4	%
Net flows		0.221			0.074			0.133			(0.091	)		0.281			27.1	%
Transfers		(0.007	)		0.035			(0.052	)		(0.004	)		(0.042	)	NM
Interest credited and change in market value		0.606			1.379			0.592			(0.484	)		(1.828	)	NM
Total Defined Contribution Segment Account Values - Balance at End-of-Period	$	34.475		$	35.964		$	36.636		$	36.058		$	34.763			0.8	%
Variable Annuities Under Agreement - Included Above		0.016			0.017			0.018			0.017			0.015			-6.3	%
Incremental Deposits: (4)
Fixed annuities	$	0.282		$	0.224		$	0.220		$	0.197		$	0.285			1.1	%
Variable annuities		0.581			0.631			0.556			0.551			0.667			14.8	%
Total annuities incremental deposits		0.862			0.855			0.776			0.747			0.953			10.6	%
Total Alliance mutual funds incremental deposits		0.533			0.464			0.656			0.437			0.545			2.3	%
Total Defined Contribution Incremental Deposits	$	1.396		$	1.318		$	1.431		$	1.185		$	1.498			7.3	%
(1) Includes fixed annuity products offered under the Alliance Program and the fixed portion of variable annuities.
(2) Excludes the fixed portion of variable annuities.
(3) Represents amounts attributable to Alliance and Smart Future mutual fund net flows. Alliance and Smart Future mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets.
(4) Incremental deposits represent gross deposits reduced by transfers from other Lincoln products.

3/31/2008																PAGE 17(B)
Employer Markets - Defined Contribution
Account Value Roll Forward - By Product
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Total Micro - Small Segment - Balance at Beginning-of-Period	$	7.535		$	7.689		$	8.012		$	8.077		$	7.798			3.5	%
Gross deposits		0.460			0.377			0.391			0.365			0.499			8.5	%
Withdrawals and deaths		(0.451	)		(0.434	)		(0.481	)		(0.565	)		(0.569	)		-26.2	%
Net flows		0.009			(0.056	)		(0.090	)		(0.201	)		(0.070	)	NM
Transfers		(0.005	)		(0.000	)		0.000			0.000			(0.012	)	NM
Investment increase and change in market value		0.150			0.379			0.155			(0.079	)		(0.497	)	NM
Total Micro - Small Segment - Balance at End-of-Period	$	7.689		$	8.012		$	8.077		$	7.798		$	7.218			-6.1	%
Total Mid - Large Segment - Balance at Beginning-of-Period	$	6.975		$	7.734		$	8.555		$	9.232		$	9.463			35.7	%
Gross deposits		0.711			0.590			0.861			0.610			0.769			8.2	%
Withdrawals and deaths		(0.118	)		(0.132	)		(0.263	)		(0.212	)		(0.159	)		-34.7	%
Net flows		0.593			0.458			0.598			0.398			0.610			2.9	%
Transfers		0.002			0.036			(0.051	)		(0.003	)		(0.029	)	NM
Investment increase and change in market value		0.164			0.328			0.130			(0.163	)		(0.423	)	NM
Total Mid - Large Segment - Balance at End-of-Period	$	7.734		$	8.555		$	9.232		$	9.463		$	9.621			24.4	%
Total Multi Fund and Other Variable
Annuities -Balance at Beginning-of-Period	$	19.146		$	19.053		$	19.397		$	19.327		$	18.797			-1.8	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		0.316			0.306			0.273			0.290			0.284			-10.1	%
Withdrawals and deaths		(0.697	)		(0.633	)		(0.649	)		(0.578	)		(0.543	)		22.1	%
Net flows		(0.381	)		(0.327	)		(0.376	)		(0.288	)		(0.259	)		32.0	%
Transfers		(0.004	)		(0.000	)		(0.001	)		(0.000	)		(0.001	)		75.0	%
Investment increase and change in market value		0.292			0.672			0.306			(0.241	)		(0.908	)	NM
Total Multi Fund and Other Variable Annuities-Balance at End-of-Period	$	19.053		$	19.397		$	19.327		$	18.797		$	17.924			-5.9	%
Total Defined Contribution Account Values -
Including Alliance and Smart Future
Mutual Funds - Balance at Beginning-of- Period	$	33.656		$	34.475		$	35.964		$	36.636		$	36.058			7.1	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		1.487			1.273			1.525			1.265			1.552			4.4	%
Withdrawals and deaths		(1.266	)		(1.199	)		(1.392	)		(1.356	)		(1.271	)		-0.4	%
Net flows		0.221			0.074			0.133			(0.091	)		0.281			27.1	%
Transfers		(0.007	)		0.035			(0.052	)		(0.004	)		(0.042	)	NM
Investment increase and change in market value		0.606			1.379			0.592			(0.484	)		(1.828	)	NM
Total Defined Contribution Segment
Account Values - Balance at End-of- Period (1)	$	34.475		$	35.964		$	36.636		$	36.058		$	34.763			0.8	%
(1) Balance at end of period includes Alliance and Smart Future Mutual fund account values.  Alliance and Smart Future Mutual funds are not included in the separate accounts reported on our Consolidated Balance Sheets.

3/31/2008	PAGE 18
Employer Markets - Defined Contribution
Supplemental Data
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Excluding Fixed Portion of Variable Contracts
Deposits	$	0.198		$	0.146		$	0.221		$	0.189		$	0.240			21.2	%
Withdrawals and deaths		(0.166	)		(0.140	)		(0.215	)		(0.203	)		(0.160	)		3.6	%
Net flows	$	0.032		$	0.006		$	0.006		$	(0.014	)	$	0.080			150.0	%
		-			-			-			-			-
Fixed Contract Account Values	$	4.870		$	4.917		$	4.943		$	4.996		$	5.166			6.1	%
Fixed Portion of Variable Contracts
Deposits	$	0.100		$	0.087		$	0.084		$	0.079		$	0.093			-7.0	%
Withdrawals and deaths		(0.233	)		(0.236	)		(0.235	)		(0.208	)		(0.210	)		9.9	%
Net flows	$	(0.133	)	$	(0.149	)	$	(0.150	)	$	(0.129	)	$	(0.117	)		12.0	%
Fixed Portion of Variable Contract Account Values	$	6.123		$	6.023		$	5.948		$	5.893		$	6.051			-1.2	%
Variable Annuities - Including Fixed Portion of Variable Contracts
Deposits	$	0.755		$	0.664		$	0.648		$	0.639		$	0.767			1.6	%
Withdrawals and deaths		(1.046	)		(0.982	)		(1.045	)		(1.050	)		(1.043	)		0.3	%
Net flows	$	(0.291	)	$	(0.319	)	$	(0.397	)	$	(0.411	)	$	(0.276	)		5.2	%
Variable Contract Account Values	$	23.799		$	24.504		$	24.528		$	23.769		$	22.343			-6.1	%
Average Daily Variable Annuity Account Values	$	17.582		$	18.377		$	18.162		$	18.235		$	16.640			-5.4	%
Total Annuity Based Retirement Plan Product Spread Information (1)																Change
																(Basis Point)
Net investment income (2) (3)		6.20	%		6.13	%		6.00	%		6.05	%		5.92	%		(28	)
Interest credited to contract holders		3.81	%		3.82	%		3.84	%		3.85	%		3.81	%		-
Spread (2) (3)		2.39	%		2.31	%		2.16	%		2.20	%		2.11	%		(28	)
(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 amortization related to DSI interest, divided by average fixed account values.
(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 2 bps in the 1st quarter of 2008, 5 bps in the 4th quarter of 2007, 7 bps in the 3rd quarter of 2007, 9 bps in the 2nd quarter of 2007 and 3 bps in the 1st quarter of 2007.
(3) 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 (6) bps in the 1st quarter of 2008, (2) bps in the 4th quarter of 2007, (11) bps in the 3rd quarter of 2007, 11 bps in the 2nd quarter of 2007 and 7 bps in the 1st quarter of 2007.

3/31/2008				PAGE 19
Employer Markets - Executive Benefits
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	0.1		$	0.1		$	0.1		$	0.0		$	0.1			17.5	%
Surrender charges		(0.0	)		0.0			0.0			0.1			(0.0	)	NM
Mortality assessments		8.9			8.2			8.4			9.0			9.1			1.9	%
Expense assessments		4.6			4.7			4.0			4.7			4.6			1.0	%
Net investment income		55.8			53.1			51.8			52.3			51.9			-7.0	%
Other revenues and fees		(0.1	)		0.0			(0.1	)		(0.0	)		(0.1	)		22.9	%
Total Operating Revenues		69.2			66.1			64.2			66.1			65.6			-5.3	%
Operating Expenses
Insurance benefits		2.8			2.7			5.1			6.3			2.5			-9.8	%
Interest credited to contract holder funds		38.2			38.1			37.8			38.0			38.4			0.5	%
Operating and acquisition expenses		10.2			8.8			8.7			3.7			6.7			-34.1	%
Total Operating Expenses		51.1			49.7			51.6			48.0			47.6			-6.9	%
Income from operations before federal income taxes		18.2			16.5			12.7			18.1			18.0			-0.8	%
Federal income taxes		6.2			5.6			3.8			6.2			6.1			-2.1	%
Income from Operations	$	11.9		$	10.8		$	8.9		$	11.9		$	11.9			-0.1	%
Effective tax rate		34.4	%		34.3	%		30.0	%		34.4	%		33.9	%
Average equity	$	357.1		$	345.5		$	336.5		$	346.3		$	358.1
Return on average equity		13.3	%		12.5	%		10.5	%		13.7	%		13.3	%
Operating and Acquisition Expenses
Commissions	$	6.5		$	6.8		$	6.4		$	14.0		$	11.9			82.8	%
General and administrative expenses		1.7			1.9			3.0			2.3			2.7			61.5	%
Taxes, licenses and fees		1.2			1.0			1.0			1.5			2.0			70.0	%
Total commissions and expenses incurred		9.4			9.7			10.4			17.8			16.6			77.4	%
Less: commissions and expenses capitalized		(6.9	)		(6.7	)		(6.6	)		(14.1	)		(11.6	)		-67.5	%
Amortization of DAC and VOBA, net of interest		7.7			5.8			4.8			0.0			1.7			-77.7	%
Net Operating and Acquisition Expenses	$	10.2		$	8.8		$	8.7		$	3.7		$	6.7			-34.1	%
General and administrative expenses - basis
points on account values - Annualized (1)		16			18			27			21			24			8
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	265.3		$	260.5		$	276.2		$	273.2		$	283.0
Deferrals		6.9			6.7			6.6			14.1			11.6
Amortization, net of interest:
Unlocking		(2.7	)		(2.3	)		(1.5	)		2.3			1.1
Other amortization		(5.1	)		(3.4	)		(3.4	)		(2.3	)		(2.8	)
Deferrals, net of amortization included in
operating and acquisition expenses		(0.8	)		0.9			1.8			14.1			9.9
Adjustment related to realized (gains) losses
on available-for-sale securities		(0.5	)		(0.1	)		0.1			0.6			0.2
Adjustment related to unrealized (gains)
losses on available-for-sale securities		(3.4	)		14.9			(4.8	)		(4.9	)		4.9
Balance at end-of-period	$	260.5		$	276.2		$	273.2		$	283.0		$	298.1
Roll Forward of Deferred Front-End Loads
Balance at beginning-of-period	$	21.7		$	22.0		$	21.9		$	22.4		$	23.8
Deferrals		1.1			0.9			0.7			1.4			1.7
Amortization, net of interest:
Unlocking		(0.3	)		(0.6	)		0.1			0.3			0.1
Other amortization		(0.4	)		(0.3	)		(0.3	)		(0.3	)		(0.2	)
Deferrals, net of amortization included in
expense assessments		0.3			(0.1	)		0.5			1.4			1.6
Balance at end-of-period	$	22.0		$	21.9		$	22.4		$	23.8		$	25.5
(1)  Includes distribution costs.

3/31/2008																PAGE 20
Employer Markets - Executive Benefits
Account Value Roll Forward & Supplemental Data
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
COLI/BOLI - Balance at Beginning-of- Period	$	4.305		$	4.264		$	4.353		$	4.391		$	4.436			3.0	%
Deposits (1)		0.065			0.079			0.052			0.107			0.165			153.8	%
Withdrawals and deaths (1)		(0.140	)		(0.053	)		(0.057	)		(0.070	)		(0.094	)		32.9	%
Net flows		(0.075	)		0.026			(0.005	)		0.037			0.071			194.7	%
Contract holder assessments		(0.018	)		(0.017	)		(0.017	)		(0.019	)		(0.020	)		-11.1	%
Interest credited and change in market value		0.052			0.080			0.060			0.027			(0.026	)	NM
COLI/BOLI - Balance at End-of-Period	$	4.264		$	4.353		$	4.391		$	4.436		$	4.460			4.6	%
COLI/BOLI In Force	$	14.747		$	14.809		$	14.900		$	15.292		$	15.826			7.3	%
(1) 1st quarter 2008 Deposits include $0.044 billion and Withdrawals and deaths include $(0.044) billion related to the exchange of legacy Jefferson-Pilot products
with new Lincoln products.

3/31/2008				PAGE 21
Employer Markets - Group Protection
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	331.3		$	361.3		$	336.8		$	349.7		$	370.4			11.8	%
Net investment income		27.9			28.5			29.5			29.5			27.7			-0.6	%
Other revenues and fees		1.1			1.2			1.3			1.4			1.2			9.6	%
Total Operating Revenues		360.4			391.0			367.5			380.6			399.4			10.8	%
Operating Expenses
Insurance benefits		246.6			265.7			235.0			252.1			269.2			9.2	%
Operating and acquisition expenses		78.3			80.7			81.4			85.1			89.6			14.5	%
Total Operating Expenses		324.9			346.3			316.4			337.2			358.8			10.5	%
Income from operations before federal income taxes		35.5			44.7			51.2			43.4			40.6			14.1	%
Federal income taxes		12.4			15.7			17.9			15.2			14.2			14.4	%
Income from Operations	$	23.1		$	29.0		$	33.2		$	28.2		$	26.3			14.0	%
Effective tax rate		35.0	%		35.1	%		35.1	%		35.1	%		35.1	%
Average equity	$	915.1		$	917.5		$	936.2		$	956.4		$	975.8
Return on average equity		10.1	%		12.6	%		14.2	%		11.8	%		10.8	%
Operating and Acquisition Expenses
Commissions	$	39.4		$	41.4		$	40.3		$	43.1		$	43.5			10.5	%
General and administrative expenses		32.7			37.5			37.9			42.8			41.7			27.6	%
Taxes, licenses and fees		9.7			9.5			8.1			6.2			10.0			3.2	%
Total commissions and expenses incurred		81.8			88.4			86.3			92.1			95.3			16.5	%
Less: commissions and expenses capitalized		(11.2	)		(13.5	)		(13.0	)		(16.7	)		(13.8	)		-23.4	%
Amortization of DAC and VOBA, net of interest		7.6			5.8			8.1			9.7			8.1			6.6	%
Net Operating and Acquisition Expenses	$	78.3		$	80.7		$	81.4		$	85.1		$	89.6			14.5	%
General and administrative expenses as a
percentage of premiums		9.9	%		10.4	%		11.2	%		12.2	%		11.3	%		14.14	%
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	137.6		$	103.7		$	111.4		$	116.4		$	123.4
Cumulative effect of adoption of SOP 05-1		(37.5	)		-			-			-			-
Deferrals		11.2			13.5			13.0			16.7			13.8
Amortization, net of interest		(7.6	)		(5.8	)		(8.1	)		(9.7	)		(8.1	)
Deferrals, net of amortization included in
operating and acquisition expenses		3.5			7.8			5.0			7.0			5.7
Balance at end-of-period	$	103.7		$	111.4		$	116.4		$	123.4		$	129.0

3/31/2008										Page 22
Employer Markets - Group Protection
Supplemental Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Annualized Sales
Life	$	22.5		$	23.8		$	22.0		$	53.9		$	21.3			-5.6	%
Disability		28.6			28.9			30.5			72.1			24.9			-12.9	%
Dental		9.4			9.5			8.3			16.6			7.9			-16.3	%
Premiums
Life	$	118.6		$	125.0		$	123.4		$	126.5		$	132.9			12.0	%
Disability		144.8			150.4			151.1			155.2			163.2			12.7	%
Dental		32.9			33.5			34.1			35.2			36.5			10.9	%
Other		35.0			52.5			28.3			32.8			37.8			8.1	%
Total	$	331.3		$	361.3		$	336.8		$	349.7		$	370.4			11.8	%
Product Line Results
Life	$	8.6		$	10.0		$	11.0		$	11.2		$	10.1			17.2	%
Disability		13.3			18.1			18.8			13.7			15.4			15.2	%
Dental		0.2			(0.1	)		1.3			2.1			(0.3	)	NM
Other		0.9			1.0			2.2			1.2			1.2			27.6	%
Total	$	23.1		$	29.0		$	33.2		$	28.2		$	26.3			14.0	%
Loss Ratios
Life		75.0	%		73.9	%		71.2	%		72.1	%		71.9	%		-4.1	%
Disability		69.5	%		66.4	%		65.0	%		69.1	%		68.1	%		-2.0	%
Dental		79.2	%		79.3	%		74.9	%		73.1	%		80.8	%		2.0	%
Combined loss ratios		72.7	%		70.8	%		68.6	%		70.7	%		71.0	%		-2.3	%

3/31/2008																PAGE 23
Investment Management
Income Statements
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Investment advisory fees - external	$	89.2		$	90.8		$	91.5		$	88.2		$	76.2			-14.5	%
Investment advisory fees - inter-segment		25.7			21.5			20.1			19.8			20.0			-22.1	%
Other revenues and fees		35.3			38.7			38.5			31.0			24.1			-31.8	%
Total Operating Revenues		150.2			151.0			150.1			139.0			120.3			-19.9	%
Operating Expenses
Operating and administrative expenses		124.6			133.1			116.0			96.8			101.1			-18.9	%
Total Operating Expenses		124.6			133.1			116.0			96.8			101.1			-18.9	%
Income from operations before federal income taxes		25.6			17.9			34.1			42.2			19.2			-24.8	%
Federal income taxes		9.3			6.6			12.3			15.2			7.1			-24.1	%
Income from Operations	$	16.2		$	11.3		$	21.8		$	27.0		$	12.1			-25.3	%
Effective tax rate		36.4	%		36.8	%		36.1	%		35.9	%		36.8	%
Pre-Tax Operating Margin		17.0	%		11.8	%		22.7	%		30.3	%		16.0	%
After-Tax Operating Margin		10.8	%		7.5	%		14.5	%		19.4	%		10.1	%
Operating and Administrative Expenses
General and administrative expenses	$	106.5		$	116.7		$	100.5		$	81.0		$	87.5			-17.8	%
Depreciation and amortization		2.6			2.5			2.5			2.3			2.2			-15.6	%
Sub-advisory fees		10.0			8.4			7.7			8.1			7.2			-27.6	%
Total general and administrative expenses		119.1			127.7			110.7			91.4			97.0			-18.6	%
Taxes, licenses and fees		4.1			4.0			3.9			4.0			3.6			-11.2	%
Amortization of intangibles		1.4			1.4			1.4			1.4			0.5			-67.8	%
Total Operating and Administrative Expenses	$	124.6		$	133.1		$	116.0		$	96.8		$	101.1			-18.9	%

3/31/2008																PAGE 24
Investment Management
Assets Under Management Roll Forward
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Retail Fixed - Balance at Beginning-of- Period	$	10.993		$	11.644		$	12.303		$	13.014		$	13.463			22.5	%
Sales (1)		1.365			1.494			1.467			1.635			1.981			45.1	%
Redemptions (2)		(0.910	)		(1.062	)		(1.060	)		(1.330	)		(1.395	)		-53.3	%
Transfers		0.014			(0.005	)		0.027			0.017			0.054			285.7	%
Net flows		0.470			0.428			0.434			0.321			0.640			36.2	%
Net investment gains and change in market value		0.181			0.119			0.278			0.145			0.065			-64.1	%
Transfer of assets to third-party (2)		-			(0.055	)		-			(0.018	)		-		NM
Transfer of assets to an intercompany manager (3)		-			0.166			-			-			-		NM
Retail Fixed - Balance at End-of- Period (4)	$	11.644		$	12.303		$	13.014		$	13.463		$	14.168			21.7	%
														-
Retail Equity - Balance at Beginning-of- Period	$	39.627		$	40.250		$	38.586		$	38.166		$	36.250			-8.5	%
Sales (1)		2.238			1.778			1.344			1.957			1.514			-32.4	%
Redemptions (2)		(2.455	)		(2.487	)		(2.084	)		(2.903	)		(2.752	)		-12.1	%
Transfers		(0.020	)		0.004			(0.029	)		(0.025	)		(0.057	)	NM
Net flows		(0.237	)		(0.704	)		(0.768	)		(0.970	)		(1.295	)	NM
Net investment gains and change in market value		0.861			2.190			0.348			(0.915	)		(3.492	)	NM
Transfer of assets to third-party (2)		-			(0.099	)		-			(0.030	)		-		NM
Transfer of assets to an intercompany manager (3)		-			(3.051	)		-			-			-		NM
Retail Equity - Balance at End-of- Period (4)	$	40.250		$	38.586		$	38.166		$	36.250		$	31.463			-21.8	%
Total Retail - Balance at Beginning-of- Period	$	50.620		$	51.895		$	50.889		$	51.180		$	49.713			-1.8	%
Retail sales - annuities		1.300			0.902			0.891			0.954			1.562			20.2	%
Retail sales - mutual funds		1.753			1.896			1.543			2.241			1.592			-9.2	%
Retail sales - managed accounts and other		0.550			0.474			0.377			0.398			0.341			-38.0	%
Total retail sales (1)		3.603			3.273			2.811			3.592			3.495			-3.0	%
Redemptions (2)		(3.365	)		(3.548	)		(3.144	)		(4.233	)		(4.147	)		-23.2	%
Transfers		(0.005	)		(0.001	)		(0.001	)		(0.008	)		(0.003	)		40.0	%
Net flows		0.233			(0.277	)		(0.334	)		(0.649	)		(0.655	)	NM
Net investment gains and change in market value		1.041			2.309			0.626			(0.770	)		(3.427	)	NM
Transfer of assets to third-party (2)		-			(0.153	)		-			(0.048	)		-		NM
Transfer of assets to an intercompany manager (3)		-			(2.885	)		-			-			-		NM
Total Retail - Balance at End-of- Period (4)	$	51.895		$	50.889		$	51.180		$	49.713		$	45.631			-12.1	%
Institutional Fixed - Balance at Beginning-of- Period	$	22.841		$	23.469		$	23.565		$	24.837		$	12.746			-44.2	%
Inflows (1)		1.560			1.514			2.233			0.577			0.243			-84.4	%
Withdrawals/terminations		(0.480	)		(1.271	)		(1.306	)		(0.673	)		(0.638	)		-32.9	%
Transfers		0.000			(0.000	)		(0.001	)		0.138			0.002		NM
Net flows		1.081			0.242			0.927			0.041			(0.394	)	NM
Net investment gains and change in market value		0.328			(0.146	)		0.345			0.180			0.057			-82.6	%
Transfer of assets to third-party (5)		-			-			-			(12.313	)		-		NM
Transfer of assets to an intercompany manager (3)		(0.780	)		-			-			-			-			100.0	%
Institutional Fixed - Balance at End-of- Period (4)	$	23.469		$	23.565		$	24.837		$	12.746		$	12.409			-47.1	%
														-
Institutional Equity - Balance at Beginning- of-Period	$	23.845		$	22.782		$	23.271		$	23.699		$	22.898			-4.0	%
Inflows (1)		0.870			1.363			0.701			1.653			0.986			13.3	%
Withdrawals/terminations		(2.273	)		(1.753	)		(1.202	)		(1.996	)		(1.100	)		51.6	%
Transfers		0.000			(0.000	)		(0.001	)		(0.001	)		(0.002	)	NM
Net flows		(1.402	)		(0.390	)		(0.501	)		(0.343	)		(0.117	)		91.7	%
Net investment gains and change in market value		0.339			1.242			0.929			(0.457	)		(2.284	)	NM
Transfer of assets to an intercompany manager (3)		-			(0.363	)		-			-			-		NM
Institutional Equity - Balance at End- of-Period (4)	$	22.782		$	23.271		$	23.699		$	22.898		$	20.498			-10.0	%
Total Institutional - Balance at Beginning-of- Period	$	46.686		$	46.251		$	46.836		$	48.536		$	35.644			-23.7	%
Inflows (1)		2.431			2.877			2.934			2.230			1.229			-49.4	%
Withdrawals/terminations		(2.753	)		(3.025	)		(2.508	)		(2.669	)		(1.739	)		36.8	%
Transfers		0.001			(0.001	)		(0.001	)		0.137			(0.000	)	NM
Net flows		(0.321	)		(0.148	)		0.425			(0.302	)		(0.510	)		-58.9	%
Net investment gains and change in market value		0.667			1.096			1.274			(0.277	)		(2.227	)	NM
Transfer of assets to third-party (5)		-			-			-			(12.313	)		-		NM
Transfer of assets to an intercompany manager (3)		(0.780	)		(0.363	)		-			-			-			100.0	%
Total Institutional - Balance at End-of- Period (4)	$	46.251		$	46.836		$	48.536		$	35.644		$	32.907			-28.9	%
														-
Total Retail and Institutional - At End-of- Period (4)	$	98.146		$	97.725		$	99.716		$	85.357		$	78.537			-20.0	%
General Account Assets - At End-of- Period (6)	$	67.658		$	66.423		$	67.324		$	67.416		$	67.340			-0.5	%
Total Assets Under Management
At End-of-Period	$	165.804		$	164.148		$	167.040		$	152.774		$	145.877			-12.0	%
Total Retail and Institutional - Net Flows (2)	$	(0.088	)	$	(0.425	)	$	0.091		$	(0.950	)	$	(1.166	)	NM
Sub-Advised Assets, Included in Assets
Under Management Above
Retail	$	18.466		$	16.329		$	16.380		$	16.219		$	14.212			-23.0	%
Institutional		4.645			4.594			4.734			4.570			4.071			-12.4	%
Total Sub-Advised Assets	$	23.111		$	20.922		$	21.114		$	20.789		$	18.283			-20.9	%
(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. 529 Plan assets
which transferred in 2Q07 and 4Q07 are reflected in Transfer of assets to third-party.
(3) Reflects assets that were transferred to an intercompany manager which did not impact Lincoln's consolidated assets under management.
(4) Includes inter-segment and external assets under management.
(5) Reflects the sale of a portion of our institutional fixed-income business to an unaffiliated investment management company in 4Q07.
(6) The 1Q07 balance has been restated to reflect adjustments made to Jefferson Pilot separate accounts. The impact of this change was $366 million.

3/31/2008																PAGE 24(B)
Investment Management
Assets Under Management Roll Forward (Continued) (1)
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Total Separate Account Assets -
Balance at Beginning-of-Period	$	13.729		$	12.982		$	10.226		$	10.175		$	9.672			-29.6	%
Sales/inflows		0.501			0.707			0.545			0.742			0.719			43.5	%
Redemptions/withdrawals/terminations		(0.735	)		(0.766	)		(0.754	)		(1.148	)		(0.679	)		7.6	%
Transfers		-			0.000			(0.000	)		0.133			-		NM
Net flows		(0.233	)		(0.059	)		(0.209	)		(0.273	)		0.040			117.2	%
Net investment gains and change in market value		0.266			0.550			0.159			(0.231	)		(0.520	)	NM
Transfer of assets to an intercompany manager		(0.780	)		(3.248	)		-			-			-			100.0	%
Total Separate Account Assets -
Balance at End-of-Period	$	12.982		$	10.226		$	10.175		$	9.672		$	9.191			-29.2	%
General Account Assets At End-of-Period	$	67.658		$	66.423		$	67.324		$	67.416		$	67.340			-0.5	%
Total Inter-Segment Assets At End-of-Period	$	80.640		$	76.648		$	77.499		$	77.088		$	76.531			-5.1	%
Total External - Balance at Beginning-of- Period (2)	$	83.577		$	85.164		$	87.499		$	89.541		$	75.686			-9.4	%
Sales/inflows		5.533			5.443			5.201			5.080			4.005			-27.6	%
Redemptions/withdrawals/terminations		(5.384	)		(5.807	)		(4.898	)		(5.754	)		(5.207	)		3.3	%
Transfers		(0.005	)		(0.001	)		(0.003	)		(0.004	)		(0.003	)		40.0	%
Net flows		0.145			(0.366	)		0.300			(0.677	)		(1.205	)	NM
Net investment gains and change in market value		1.442			2.854			1.741			(0.817	)		(5.134	)	NM
Transfer of assets to third-party		-			(0.153	)		-			(12.361	)		-		NM
Total External - Balance at End-of- Period	$	85.164		$	87.499		$	89.541		$	75.686		$	69.346			-18.6	%
(1) This roll forward breaks out total assets under management by inter-segment and external balances which include both retail and institutional assets under management.
(2)  Includes Delaware VIP funds.  Lincoln Financial Insurance subsidiaries as well as unaffiliated insurers participate in these funds.

3/31/2008																PAGE 25
Lincoln UK
Income Statements
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	24.2		$	24.3		$	25.6		$	21.2		$	19.1			-21.3	%
Mortality assessments		10.0			8.9			9.2			9.1			9.1			-9.1	%
Expense assessments		37.1			39.9			33.0			46.6			37.1			-0.1	%
Net investment income		19.3			19.4			20.9			21.5			20.3			5.3	%
Other revenues and fees		0.1			-			-			-			0.1			-
Total Operating Revenues		90.7			92.5			88.7			98.3			85.6			-5.6	%
Operating Expenses
Insurance benefits		36.0			34.4			30.2			36.9			30.7			-14.8	%
Operating and acquisition expenses		38.0			40.2			42.5			41.9			38.5			1.4	%
Total Operating Expenses		74.0			74.6			72.7			78.8			69.2			-6.5	%
Income from operations before federal income taxes		16.7			18.0			15.9			19.5			16.4			-1.9	%
Federal income taxes		5.9			6.3			5.6			6.8			5.7			-1.9	%
Income from Operations	$	10.9		$	11.7		$	10.3		$	12.7		$	10.7			-1.9	%
Effective tax rate		35.3	%		35.0	%		35.2	%		34.9	%		34.8	%
Average equity	$	387.6		$	384.9		$	379.1		$	368.5		$	375.7
Return on average equity		11.2	%		12.1	%		10.9	%		13.8	%		11.4	%
Operating and Acquisition Expenses
Commissions	$	1.0		$	1.0		$	1.3		$	1.5		$	1.0			1.0	%
General and administrative expenses		26.5			26.7			26.9			28.1			26.6			0.3	%
Total commissions and expenses incurred		27.6			27.8			28.2			29.6			27.7			0.4	%
Less: commissions and expenses capitalized		(0.6	)		(0.6	)		(1.5	)		(1.4	)		(0.6	)		-9.6	%
Amortization of DAC and VOBA, net of interest		11.0			13.0			15.8			13.7			11.5			4.6	%
Net Operating and Acquisition Expenses	$	38.0		$	40.2		$	42.5		$	41.9		$	38.5			1.4	%
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	809.0		$	802.6		$	806.5		$	807.3		$	772.1
Deferrals		0.6			0.6			1.5			1.4			0.6
Amortization, net of interest:
Unlocking		0.7			(0.1	)		(0.9	)		(0.9	)		1.3
Other amortization		(11.7	)		(12.9	)		(14.9	)		(12.8	)		(12.8	)
Deferrals, net of amortization included in
operating and acquisition expenses		(10.4	)		(12.4	)		(14.3	)		(12.3	)		(10.8	)
Foreign currency translation adjustment		4.1			16.3			15.1			(22.9	)		(0.9	)
Balance at end-of-period	$	802.6		$	806.5		$	807.3		$	772.1		$	760.4
Roll Forward of Deferred Front-End Loads
Balance at beginning-of-period	$	404.5		$	400.4		$	402.6		$	398.2		$	379.3
Deferrals		0.9			0.7			0.8			0.9			0.9
Amortization, net of interest:
Unlocking		(1.0	)		0.1			(5.3	)		(1.0	)		(0.5	)
Other amortization		(6.0	)		(6.7	)		(7.4	)		(7.5	)		(7.7	)
Deferrals, net of amortization included in
expense assessments		(6.1	)		(5.9	)		(11.9	)		(7.7	)		(7.3	)
Foreign currency translation adjustment		2.0			8.1			7.5			(11.2	)		(0.4	)
Balance at end-of-period	$	400.4		$	402.6		$	398.2		$	379.3		$	371.5

3/31/2008																PAGE 26
Lincoln UK
Operational Data
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Unit Linked Assets
Balance at Beginning-of-Period	$	8.757		$	8.906		$	9.168		$	9.192		$	8.850			1.1	%
Deposits		0.068			0.100			0.079			0.075			0.060			-11.8	%
Withdrawals (including charges) and deaths		(0.240	)		(0.251	)		(0.251	)		(0.227	)		(0.213	)		11.3	%
Net flows		(0.172	)		(0.151	)		(0.172	)		(0.152	)		(0.153	)		11.0	%
Investment income and change in market value		0.277			0.229			0.025			0.070			(0.608	)	NM
Foreign currency adjustment		0.045			0.183			0.171			(0.259	)		(0.010	)	NM
Unit Linked Assets - Balance at End-of- Period	$	8.906		$	9.168		$	9.192		$	8.850		$	8.079			-9.3	%
Individual Life In Force	$	19.307		$	19.605		$	19.757		$	19.022		$	18.283			-5.3	%
Exchange Rate - Dollars to Pounds
For-the-Period		1.964			1.989			2.025			2.051			1.987			1.2	%
End-of-Period		1.968			2.008			2.046			1.987			1.985			0.9	%

3/31/2008																PAGE 27
Other Operations (1)
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	2.7		$	(1.2	)	$	1.3		$	0.7		$	1.4			-48.8	%
Net investment income		86.0			90.9			92.7			100.0			99.1			15.3	%
Amortization of deferred gain on
indemnity reinsurance  (2)		18.6			18.6			18.6			18.6			18.5			-0.7	%
Other revenues and fees		0.0			5.6			(3.7	)		1.2			(2.2	)	NM
Communications revenues		24.8			28.8			26.6			26.5			21.7			-12.6	%
Inter-segment elimination of investment advisory fees		(24.5	)		(19.6	)		(22.6	)		(20.3	)		(20.0	)		18.5	%
Total Operating Revenues		107.6			123.1			113.0			126.6			118.5			10.1	%
Operating Expenses
Insurance benefits		36.0			38.3			35.7			36.4			27.8			-23.0	%
Interest credited to contract holder funds		43.8			44.4			48.4			47.8			45.8			4.6	%
Operating and acquisition expenses		21.5			38.5			48.2			55.2			34.9			62.3	%
Taxes, licenses and fees		3.4			0.5			3.9			5.1			2.1			-37.4	%
Interest and debt expenses		61.1			72.6			68.3			79.0			75.9			24.2	%
Communications expenses		14.7			15.2			13.2			13.5			15.5			5.9	%
Inter-segment elimination of investment advisory fees		(24.5	)		(19.6	)		(22.6	)		(20.3	)		(20.0	)		18.5	%
Total Operating Expenses		156.0			189.8			195.2			216.7			182.0			16.7	%
Loss from operations before federal income taxes		(48.3	)		(66.7	)		(82.2	)		(90.1	)		(63.6	)		-31.5	%
Federal income taxes		(20.3	)		(30.6	)		(32.4	)		(30.8	)		(21.2	)		-4.7	%
Loss from Operations	$	(28.0	)	$	(36.2	)	$	(49.8	)	$	(59.2	)	$	(42.3	)		-50.9	%
Run Off Institutional Pensions Account
Values -Balance at End-of-Period	$	2.734		$	2.729		$	2.720		$	2.094		$	2.074			-24.1	%
Discontinued Operations
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Discontinued Operations Before Disposal
Income from discontinued operations before federal income taxes	$	11.9		$	9.6		$	10.2		$	13.9		$	7.4			-37.8	%
Federal income taxes		4.2			3.4			3.6			4.8			2.6			-38.0	%
Income From Discontinued Operations Before Disposal		7.7			6.3			6.6			9.1			4.8			-37.6	%
Disposal
Gain on disposal before federal income taxes		-			-			-			57.1			(12.3	)	NM
Federal income taxes		-			-			-			193.0			(3.3	)	NM
Loss on Disposal		-			-			-			(135.9	)		(9.0	)	NM
Income (Loss) From Discontinued Operations	$	7.7		$	6.3		$	6.6		$	(126.8	)	$	(4.2	)	NM
(1)   Includes inter-segment eliminations of transactions.
(2)  Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

3/31/2008																PAGE 28
Consolidated Domestic Deposits/Account Balances
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Deposits -  For the Period
Individual Markets - fixed annuities (1)	$	0.821		$	0.982		$	1.231		$	1.288		$	1.160			41.3	%
Individual Markets - variable annuities		2.000			2.295			2.247			2.593			1.865			-6.8	%
Individual Markets - Life Insurance		1.039			1.005			0.980			1.086			0.967			-6.9	%
Employer Markets - fixed annuities		0.299			0.233			0.305			0.268			0.332			11.0	%
Employer Markets - variable products (2)		1.188			1.041			1.219			0.997			1.220			2.7	%
Employer Markets - Executive Benefits		0.065			0.079			0.052			0.107			0.165			153.8	%
Investment Management - annuities		1.300			0.902			0.891			0.954			1.562			20.2	%
Investment Management - mutual funds		1.753			1.896			1.543			2.241			1.592			-9.2	%
Investment Management - managed account and other		0.550			0.474			0.377			0.398			0.341			-38.0	%
Consolidating adjustments		(0.799	)		(0.890	)		(0.878	)		(0.926	)		(1.494	)		-87.0	%
Total Gross Retail Deposits		8.217			8.016			7.968			9.005			7.710			-6.2	%
Investment Management - institutional		2.431			2.877			2.934			2.230			1.229			-49.4	%
Consolidating adjustments		(0.112	)		(0.188	)		(0.030	)		(0.192	)		(0.092	)		17.9	%
Total Gross Deposits	$	10.536		$	10.706		$	10.873		$	11.043		$	8.846			-16.0	%
Account Balances - End of Period
Individual Markets - fixed annuities (1)	$	16.449		$	16.270		$	16.383		$	16.470		$	16.395			-0.3	%
Individual Markets - variable annuities		50.300			55.171			58.293			58.643			54.966			9.3	%
Individual Markets - Life Insurance		26.924			27.465			27.875			28.122			27.881			3.6	%
Employer Markets - fixed annuities		10.993			10.940			10.891			10.889			11.217			2.0	%
Employer Markets - variable products (2)		23.482			25.024			25.745			25.168			23.546			0.3	%
Employer Markets - Executive Benefits		4.264			4.353			4.391			4.436			4.460			4.6	%
Investment Management - annuities		15.467			12.780			12.814			12.282			11.697			-24.4	%
Investment Management - mutual funds		18.747			19.894			20.274			19.793			18.690			-0.3	%
Investment Management - managed account and other		17.681			18.215			18.092			17.638			15.244			-13.8	%
Consolidating adjustments		(15.025	)		(12.240	)		(12.300	)		(11.798	)		(11.264	)		25.0	%
Total Retail Account Balances		169.282			177.871			182.458			181.644			172.831			2.1	%
Investment Management - institutional		46.251			46.836			48.536			35.644			32.907			-28.9	%
Consolidating adjustments		(2.829	)		(2.604	)		(2.529	)		(2.357	)		(2.208	)		22.0	%
Total Account Balances	$	212.704		$	222.103		$	228.465		$	214.931		$	203.529			-4.3	%
Total Domestic Net Flows
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Retail Net Flows
Individual Markets - Life Insurance	$	0.698		$	0.586		$	0.635		$	0.745		$	0.579			-17.0	%
Individual Markets - Annuities		0.754			1.138			1.291			1.808			1.181			56.6	%
Employer Markets - Defined Contribution		0.221			0.074			0.133			(0.091	)		0.281			27.1	%
Employer Markets - Executive Benefits		(0.075	)		0.026			(0.005	)		0.037			0.071			194.7	%
Investment Management - retail		0.233			(0.277	)		(0.334	)		(0.649	)		(0.655	)	NM
Consolidating adjustments		(0.004	)		0.330			0.071			0.140			(0.098	)	NM
Total Retail Net Flows		1.827			1.876			1.790			1.991			1.359			-25.6	%
Investment Management - institutional		(0.321	)		(0.148	)		0.425			(0.302	)		(0.510	)		-58.9	%
Consolidating adjustments		0.048			(0.026	)		0.128			0.132			0.030			-37.5	%
Total Net Flows	$	1.554		$	1.702		$	2.343		$	1.821		$	0.878			-43.5	%
(1)  Includes fixed portion of variable annuities.
(2) Includes amounts attributable to Alliance and Smart Future mutual fund net flows. Alliance and Smart Future mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets.

3/31/2008											PAGE 29
Consolidated Investment Data - Assets Managed
Unaudited (in billions)
	As of
	March		June		Sept.		Dec.		March		%
	2007		2007		2007		2007		2008		Change
Assets Managed by Source
LNC's investments and cash:
Fixed maturity securities -
available for sale	$	56.256	$	55.447	$	56.086	$	56.276	$	55.624		-1.1	%
Equity securities - available for sale		0.714		0.687		0.670		0.518		0.474		-33.6	%
Trading securities		2.910		2.818		2.717		2.730		2.714		-6.7	%
Other investments		11.934		11.880		12.040		12.398		12.743		6.8	%
Total LNC investments		71.814		70.832		71.513		71.922		71.555		-0.4	%
Separate accounts		83.147		89.497		92.903		91.113		84.703		1.9	%
Cash and invested cash		0.905		0.989		1.328		1.665		2.447		170.4	%
Total LNC		155.866		161.319		165.744		164.700		158.705		1.8	%
Non-affiliate assets managed		81.134		83.709		85.684		71.975		66.020		-18.6	%
Total Assets Managed	$	237.000	$	245.028	$	251.427	$	236.675	$	224.725		-5.2	%
Assets Managed by Advisor
Investment Management segment
(See page 24 for additional detail)	$	98.146	$	97.725	$	99.716	$	85.357	$	78.537		-20.0	%
DLIA-Corp
(Assets managed internally-see page 24)		67.658		66.423		67.324		67.416		67.340		-0.5	%
Lincoln UK		10.255		10.536		10.589		10.247		9.445		-7.9	%
Domestic policy loans (excluding Lincoln UK)		2.763		2.783		2.786		2.831		2.801		1.4	%
Non-LNC affiliates		58.178		67.562		71.012		70.824		66.602		14.5	%
Total Assets Managed	$	237.000	$	245.028	$	251.427	$	236.675	$	224.725		-5.2	%

3/31/2008																PAGE 30
Consolidated Investment Data - Other Investment Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Net Investment Income
Available-for-sale fixed maturity securities	$	844.0		$	847.3		$	852.0		$	868.0		$	858.7			1.7	%
Available-for-sale equity securities		8.6			11.8			10.4			10.4			9.1			5.7	%
Trading securities		45.4			44.4			44.0			42.4			42.5			-6.4	%
Mortgage loans on real estate		130.6			131.8			123.0			122.0			121.6			-6.9	%
Real estate		15.2			12.5			15.5			13.3			8.0			-47.4	%
Policy loans		42.6			44.3			43.0			44.6			44.6			4.6	%
Invested cash		18.0			14.5			18.7			20.9			18.8			4.3	%
Other investments		29.9			109.8			8.5			(18.0	)		(100.4	)	NM
Investment income		1,134.3			1,216.3			1,115.2			1,103.5			1,002.8			-11.6	%
Investment expense		(44.8	)		(46.5	)		(48.8	)		(45.2	)		(34.4	)		23.2	%
Net Investment Income	$	1,089.5		$	1,169.8		$	1,066.4		$	1,058.3		$	968.4			-11.1	%
Mean Invested Assets (Amortized Cost)	$	69,905.7		$	70,062.2		$	70,535.5		$	70,718.2		$	70,941.2
Ratio of Net Investment Income Over Mean Invested Assets		6.23	%		6.68	%		6.05	%		5.99	%		5.46	%
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Realized Investment Gains (Losses)
Fixed maturities	$	48.1		$	(19.7	)	$	(17.8	)	$	(71.0	)	$	(90.8	)	NM
Equity securities		2.2			3.6			1.2			(110.6	)		2.8			24.7	%
Other gains (losses), net		(4.0	)		9.3			(4.5	)		7.6			22.5		NM
Contract holders' interest		(1.9	)		(0.2	)		(14.0	)		2.0			6.2		NM
Capital gains expense		-			-			-			-			-		NM
Total pre-tax gains (losses)		44.4			(7.1	)		(35.1	)		(172.0	)		(59.3	)	NM
Amortization of DAC, VOBA and deferred
sales inducements		(17.9	)		(1.6	)		(0.3	)		63.2			18.3			202.0	%
Income taxes		9.3			(3.8	)		(12.2	)		(37.4	)		(14.0	)	NM
Realized Investment Gains (Losses), Net of Taxes	$	17.1		$	(4.9	)	$	(23.2	)	$	(71.4	)	$	(27.1	)	NM
				As of March 31, 2008									As of December 31, 2007
				Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)				$	58,335.5			99.2	%				$	59,003.8			99.1	%
Fixed maturity security (amortized cost)					58,952.5			99.1	%					58,578.9			99.1	%
Equity securities (fair value)					476.5			0.8	%					520.0			0.9	%
Equity securities (amortized cost)					558.3			0.9	%					549.9			0.9	%
% of Available-for-Sale Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA								23.4	%								23.1	%
AA or better								32.3	%								32.9	%
BB or less								5.2	%								5.1	%
General Account Investments				As of March 31, 2008									As of December 31, 2007
				Amount			% of Total						Amount			% of Total
Fixed Maturities - Security Sector:
Corporate bonds				$	43,535.4			78.2	%				$	44,147.9			78.5	%
U.S. Government bonds					231.9			0.4	%					222.0			0.4	%
Foreign government bonds					1,037.4			1.9	%					1,037.5			1.8	%
Mortgage-backed securities					10,568.8			19.0	%					10,604.6			18.8	%
State and municipal bonds					153.0			0.3	%					153.1			0.3	%
Preferred stocks - redeemable					97.5			0.2	%					110.7			0.2	%
Total				$	55,624.0			100.0	%				$	56,275.7			100.0	%
	As of
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed maturity	$	56,255.6		$	55,447.0		$	56,086.1		$	56,275.7		$	55,624.0			-1.1	%
Equity		713.9			686.8			670.3			518.0			474.4			-33.5	%
Trading securities		2,909.7			2,818.3			2,716.6			2,730.2			2,713.6			-6.7	%
Mortgage loans on real estate and real estate		7,822.2			7,698.4			7,665.7			7,681.0			7,707.2			-1.5	%
Policy loans		2,766.8			2,787.0			2,790.2			2,834.7			2,804.0			1.3	%
Derivative investments		412.6			375.9			554.1			807.1			1,091.1			164.5	%
Other investments		932.9			1,019.1			1,030.0			1,075.0			1,140.9			22.3	%
Total	$	71,813.6		$	70,832.5		$	71,512.9		$	71,921.6		$	71,555.3			-0.4	%