8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

                  April 28, 2010               

Date of Report (Date of earliest event reported)

                  Lincoln National Corporation              

(Exact name of registrant as specified in its charter)

Indiana	1-6028	35-1140070
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

150 N. Radnor Chester Road, Radnor, PA 19087

(Address of principal executive offices)  (Zip Code)

(484) 583-1400

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On April 28, 2010, the registrant issued a press release announcing its financial results for the quarter ended March 31, 2010, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The registrant’s statistical supplement for the quarter ended March 31, 2010, is attached as Exhibit 99.2 and is incorporated herein by reference, and a general account supplement as of March 31, 2010, is attached as Exhibit 99.3 and is incorporated herein by reference.

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 9.01.  Financial Statements and Exhibits

(c)   Exhibits.

The following exhibits are being furnished with this Form 8-K.

Exhibit Number	Description
99.1	Press release dated April 28, 2010, announcing Lincoln National Corporation’s financial results for the quarter ended March 31, 2010.
99.2	Lincoln National Corporation Statistical Supplement for the Quarter Ended March 31, 2010.
99.3	Lincoln National Corporation General Account Supplement as of March 31, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LINCOLN NATIONAL CORPORATION

By         /s/ Douglas N. Miller

Name:  Douglas N. Miller

Title:    Vice President and Chief Accounting Officer

Date:  April 28, 2010

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release dated April 28, 2010, announcing Lincoln National Corporation’s financial results for the quarter ended March 31, 2010.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended March 31, 2010.
99.3	Lincoln National Corporation General Account Supplement as of March 31, 2010.

EX-99.1

                         NEWS RELEASE

Lincoln Financial Group Reports First Quarter 2010 Results

_____________________________________________

Account Value Growth Drives Earnings Increase

All Businesses Record Positive Net Flows

Philadelphia, PA, April 28, 2010 – Lincoln Financial Group (NYSE:LNC) today reported net income for the first quarter of 2010 of $283 million, or $0.85 per diluted share available to common stockholders, compared to a net loss in the first quarter of 2009 of $579 million, or $2.27 per diluted share.  Net income in the first quarter of 2010 included net realized losses of $27 million, after tax, or $0.09 per share, versus the prior year quarter, which included net realized losses of $136 million, or $0.54 per share.  The current quarter included income from discontinued operations of $28 million, or $0.09 per share, including a gain on the disposition of Lincoln UK and Delaware Investments.  The 2009 quarter included a non-cash charge of $600 mil lion, after tax, or $2.35 per share, for the impairment of goodwill in the annuity business.

	For the Quarter Ended
($ in millions except per share data)	2010		2009
Net Income (Loss)	$	283	$	(579	)
Net Income (Loss) per diluted share available to common stockholders		0.85		(2.27	)
Income from Operations		276		163
Income from Operations per diluted share available to common stockholders		0.83		0.64
Average Diluted Shares		312.1		257.8

*The per share calculation used in the losses per share represent basic shares.

The first quarter income from operations was $276 million, or $0.83 per diluted share available to common stockholders, compared to $163 million, or $0.64 per diluted share, in the first quarter of 2009. Income from operations in the current quarter reflected growth in average variable account values versus the prior year quarter driven by positive net flows and improvement in equity markets, favorable unlocking of deferred acquisition costs (“DAC”) in the annuity business and unfavorable mortality in the individual and group life businesses.

1

The 2010 earnings available to common stockholders per share reflect the accrued dividend and accretion of discount on the series B preferred stock of $18.4 million.

First Quarter 2010 Operating Highlights:

·   Consolidated deposits of $4.7 billion and positive net flows of $1.3 billion.

·   Total account balances increased 27% year-over-year to $146 billion, driven by strong net flows and improved equity markets.

·   Life sales of $143 million driven by strength in MoneyGuardÒ and term life with a combined growth rate of 74% year-over-year.

·   Individual variable annuity deposits of $1.9 billion up 18% and net flows of $552 million up 26%, year-over-year.

·   Defined Contribution account values of $37 billion up 29% year-over-year.

·   Group Protection annualized sales of $63 million up 16% year-over-year.

·   Net unrealized position improves to a $1.2 billion, pre-tax, net unrealized gain.

Dennis R. Glass, president and CEO, said, “Our results in the quarter reflect our ability to drive growth in our businesses with quality products and strong distribution along with the benefits of continued improvement in the capital markets.  Positive net flows driven by solid sales results and good persistency were evident in all of our businesses.  Mortality experience was elevated in the quarter in both the individual and group life businesses, but in both instances, we expect mortality to return to more normal levels in future periods.

“We entered 2010 in a very strong capital position and saw it strengthened in the first quarter. We continued to see investment losses decline and our net unrealized position shifted to a solid net gain.  We are encouraged by improving signs in the economy and our franchise remains well positioned to take advantage of the strong demand for insurance products and increasing need for advice.”

2

First Quarter 2010 – Segment Results

Retirement Solutions

Individual Annuities

The Individual Annuities segment reported income from operations of $119 million in the first quarter of 2010 versus income from operations of $74 million in the year-ago period, reflecting a 34% increase in the average annuity account values. The 2010 quarter included a net positive impact of approximately $21 million, after tax, primarily attributable to DAC unlocking.

Gross annuity deposits were $2.3 billion and net flows were $575 million, up 4% and 34%, respectively, versus the prior year.

Defined Contribution

Defined Contribution reported income from operations of $36 million, versus income from operations of $30 million for the same period a year ago, reflecting a 26% increase in the average account values.

Gross deposits of $1.3 billion were down 16% versus the prior year quarter.  Total net flows in the current quarter were $109 million as compared to $657 million in the 2009 quarter.  The year-over-year declines are primarily attributable to the timing of the placement of a few large cases.

Insurance Solutions

Life Insurance

Life Insurance income from operations was $137 million, compared to $142 million in the first quarter of 2009.  The life insurance segment’s results in 2010 included net negative items totaling approximately $14 million, including unfavorable mortality of $8 million.

Life insurance sales were $143 million reflecting strong double-digit sales increases of MoneyGuardÒ and term life insurance offset by lower universal and variable universal life insurance sales.   The sales trend in higher policy count and smaller average face amount continued in the quarter.

3

Group Protection

For the first quarter, Group Protection’s income from operations was $21 million, compared to $26 million in the prior-year period.  The quarter included $10 million of negative loss ratio experience relative to expectations.  The non-medical loss ratio was 75% in the current quarter, compared to 71% and 69% in the first and fourth quarters of 2009, respectively.  The unfavorable development in the current quarter’s loss ratio was driven primarily by unfavorable mortality experience in group life.

Non-medical net earned premiums were $375 million in the first quarter, up 6% over the year-ago period.  Annualized sales of $63 million increased 16% year-over-year.

Other Operations

The operating loss in Other Operations was $37 million in the quarter, versus a loss of $109 million in the prior-year quarter. The 2010 quarter included a net negative impact of approximately $4 million, after tax, related primarily to expenses.  The 2009 quarter included a charge of $64 million, after tax, related to the unfavorable arbitration ruling with Swiss Re.

Alternative Investment Income

Income from operations in the first quarter of 2010 included alternative investment income of $9 million, after DAC, after tax, compared to a loss of $2 million in the year-ago quarter and income of $22 million in the fourth quarter of 2009.  The company's alternative investment portfolio, of approximately $700 million of book value, performed consistent with our long-term return expectations.

Realized Gains and Losses

The company reported a net realized loss in the quarter of $27 million compared to a net realized loss of $136 million in the year-ago quarter.

Total gross realized losses in the 2010 quarter on general account investments were $108 million, pre tax, as compared to $247 million in the prior-year quarter and $212 million in the fourth quarter of 2009.  Losses in the current quarter were primarily related to residential mortgage-backed securities and commercial real estate.

4

Unrealized Gains and Losses

The company reported a net unrealized gain of $1.2 billion, pre-tax, on its available for sale securities at March 31, 2010.  This compares to a net unrealized loss of $6.8 billion at March 31, 2009, and a net unrealized loss of $43 million at December 31, 2009.

Book Value

As of March 31, 2010, the book value per share of common stock, including accumulated other comprehensive income (“AOCI”), was $38.19 compared to $28.59 a year ago. Book value per share, excluding AOCI, was $37.19, compared to $40.20 a year ago.

In the quarter, the companyadopted Accounting Standards Update (“ASU”) No. 2009-17, “Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities” (“ASU 2009-17”) effective January 1, 2010.  This resulted in a decrease in shareholder’s equity, excluding AOCI, of $169 million, after tax, or $0.56 of book value per share related to the company’s investment in credit linked notes.

This press release may contain statements that are forward-looking, and actual results may differ materially, especially given the current economic and credit conditions. Please see the Forward-Looking Statements – Cautionary Language that follow for additional factors that may cause actual results to differ materially from our current expectations. 

The tables attached to this release define and reconcile income from operations, return on equity (“ROE”), and book value per share excluding AOCI, non-GAAP measures, to net income, ROE, and book value per share including AOCI calculated in accordance with GAAP.

Lincoln Financial Group will discuss the company’s first quarter results with investors in a conference call beginning at 11:00 a.m. (ET) on Thursday, April 29, 2010. Interested persons are invited to listen through the internet. Please go to www.LincolnFinancial.com/webcast at least fifteen minutes prior to the event to register, download and install any necessary streaming media software. Interested persons may also listen to the call by dialing the following numbers:

Dial:           (877) 776-4049 (Domestic)

   (914) 495-8602 (International)

5

- Ask for the Lincoln National Conference Call.

The company will also post its first quarter 2010 statistical supplement and a general account supplement on its Web site, www.LincolnFinancial.com/earnings.

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $146 billion as of March 31, 2010. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.

Contacts:       Jim Sjoreen                                                                  Laurel O’Brien

484 583-1420                                                                484 583-1735

Investor Relations                                                     Media Relations

Investorrelations@LFG.com                                    mediarelations@LFG.com

6

Definition of Income (Loss) from Operations and ROE

Income (loss) from operations and ROE, as used in the earnings release, are non-GAAP financial measures and are not substitutes for net income (loss) and ROE, calculated using GAAP measures.  We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at income (loss) from operations: realized gains and losses associated with the following ("excluded realized gain (loss)"): sale or disposal of securities; impairments of securities; change in the fair value of embedded derivatives within certain reinsurance arrangements and the change in the fair value of our trading securities; change in the fair value of the derivatives we own to hedge our guaranteed death benefit ("GDB") riders within our variable annuities, which is referred to as "GDB derivatives results"; change in the fair value of the emb edded derivatives of our guaranteed living benefit (“GLB”) riders within our variable annuities accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”), net of the change in the fair value of the derivatives we own to hedge the changes in the embedded derivative reserves, the net of which is referred to as “GLB net derivative results”; and changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“indexed annuity forward-starting option”); change in reserves accounted for under the Financial Services - Insurance - Claim Costs and Liabilities for Future Policy Benefits Subtop ic of the FASB ASC resulting from benefit ratio unlocking on our GDB and GLB riders ("benefit ratio unlocking"); income (loss) from the initial adoption of new accounting standards; income (loss) from reserve changes (net of related amortization) on business sold through reinsurance; gain (loss) on early extinguishment of debt; losses from the impairment of intangible assets; and income (loss) from discontinued operations.

The earnings used to calculate ROE, as used in the earnings release, are income (loss) from operations.  Income (loss) from operations is an internal measure used by the company in the management of its operations.  Management believes that this performance measure explains the results of the company's ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company's current business because the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments.

The company uses its prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in its financial statements and federal income tax returns when reconciling non-GAAP measures to the most comparable GAAP measure.

($ in millions, except per share data)
	For the Three Months Ended
	March 31,
	2010			2009
Net Income (Loss) Available to Common Stockholders	$	265.0		$	(579.0	)
Less:
Preferred stock dividends and accretion of discount		(18.4	)		-
Minority interest adjustment		-			(0.1	)
Net Income (Loss)		283.4			(578.9	)
Less:
Excluded net realized loss, after-tax		(26.5	)		(136.4	)
Benefit ratio unlocking, after-tax		5.5			(52.0	)
Income from reserve changes (net of related
amortization) on business sold through reinsurance, after-tax		0.4			0.4
Gain on early extinguishment of debt, after tax		-			41.8
Impairment of intangibles, after-tax		-			(603.5	)
Income from discontinued operations, after-tax		27.9			7.7
Income from Operations	$	276.1		$	163.1
Earnings (Loss) Per Share (Diluted)
Income from operations	$	0.83		$	0.64
Net income (loss) (1)		0.85			(2.27	)
Average Equity
(Excluding AOCI)	$	12,013.9		$	10,539.5
Return on Equity
Net income (loss)		9.4	%		-22.0	%
Income from operations		9.2	%		6.2	%

(1)   In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been anti-dilutive. This same concept applies to our income from operations as well.

7

Definition of Book Value Per Share Excluding AOCI

Book value per share excluding AOCI is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) stockholders' equity excluding AOCI and Series B preferred stock balances as it is non-convertible (issued and sold to the U.S. Treasury in connection with the Troubled Asset Relief Program Capital Purchase Program as part of the Emergency Economic Stabilization Act of 2008), by (b) common shares outstanding, assuming conversion of Series A preferred shares. 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. Management believes 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 chan ges in interest rates.  Book value per share is the most directly comparable GAAP measure.  A reconciliation of book value per share to book value per share excluding AOCI as of  March 31, 2010 and 2009 is set forth below.

	As of March 31,
	2010		2009
Book value per share, including AOCI (1)	$	38.19	$	28.59
Per share impact of AOCI		1.00		(11.61	)
Book value per share, excluding AOCI (1)	$	37.19	$	40.20

(1)  These computations exclude Series B preferred stock balances as it is non-convertible.

LINCOLN NATIONAL CORPORATION

DIGEST OF EARNINGS

($ in millions, except per share data)
	For the Three Months Ended
	March 31,
	2010			2009
Revenues	$	2,527.4		$	2,132.1
Net Income (Loss)	$	283.4		$	(578.9	)
Preferred stock dividends and accretion of discount		(18.4	)		-
Minority interest adjustment		-			(0.1	)
Net Income (Loss) Available to Common Stockholders		265.0			(579.0	)
Earnings (Loss) Per Common Share - Basic	$	0.88		$	(2.27	)
Earnings (Loss) Per Common Share - Diluted (1)		0.85			(2.27	)
Average Shares - Basic		302,221,901			255,558,961
Average Shares - Diluted		312,088,530			257,789,383

(1)   In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been anti-dilutive.  This same concept applies to our income from operations as well.

8

Forward Looking Statements — Cautionary Language

Certain statements made in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA").  A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe", "anticipate", "expect", "estimate", "project", "will", "shall" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance.  In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings.  Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements.  Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements include, among others:

·   Continued deterioration in general economic and business conditions, both domestic and foreign, that may affect foreign exchange rates, premium levels, claims experience, the level of pension benefit costs and funding and investment results;

·   Continued economic declines and credit market illiquidity could cause Lincoln to realize additional impairments on investments and certain intangible assets, including goodwill and a valuation allowance against deferred tax assets, which may reduce future earnings and/or affect Lincoln’s financial condition and ability to raise additional capital or refinance existing debt as it matures;

·   Continued uncertainty about the impact of existing or new stimulus legislation on the economy;

·   The cost and other consequences of Lincoln’s participation in the Capital Purchase Program, including the impact of existing and future regulations to which Lincoln and/or its subsidiaries may become subject;

·   Legislative, regulatory or tax changes, both domestic and foreign, that affect the cost of, or demand for, Lincoln subsidiaries’ products, the required amount of reserves and/or surplus, or otherwise affect Lincoln’s ability to conduct business, including changes to statutory reserves and/or risk-based capital (“RBC”) requirements related to secondary guarantees under universal life and variable annuity products such as Actuarial Guideline (“AG”) 43 (“AG43” also known as Commissioners Annuity Reserve Valuation Method for Variable Annuities or “VACARVM”); restrictions on revenue sharing and 12b-1 payments; and the potential for U.S. Federal tax reform;

·   The initiation of legal or regulatory proceedings against Lincoln, and the outcome of any legal or regulatory proceedings, such as:  adverse actions related to present or past business practices common in businesses in which Lincoln and its subsidiaries compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and extra-contractual and class action damage cases; new decisions that result in changes in law; and  unexpected trial court rulings;

·   Changes in interest rates causing a reduction of investment income, the margins of Lincoln subsidiaries’ fixed annuity and life insurance businesses and demand for their products;

·   A decline in the equity markets causing a reduction in the sales of Lincoln subsidiaries’ products, a reduction of asset-based fees that Lincoln subsidiaries charge on various investment and insurance products, an acceleration of amortization of deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads and an increase in liabilities related to guaranteed benefit features of Lincoln subsidiaries’ variable annuity products;

·   Ineffectiveness of Lincoln’s various hedging strategies used to offset the impact of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates;

·   A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing Lincoln subsidiaries’ products, in establishing related insurance reserves and in the amortization of intangibles that may result in an increase in reserves and a decrease in net income;

·   Changes in GAAP that may result in unanticipated changes to Lincoln’s  net income;

·   Lowering of one or more of Lincoln's debt ratings issued by nationally recognized statistical rating organizations and the adverse impact such action may have on Lincoln's ability to raise capital and on its liquidity and financial condition;

·   Lowering of one or more of the insurer financial strength ratings of Lincoln’s insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability of Lincoln’s insurance subsidiaries and liquidity;

·   Significant credit, accounting, fraud or corporate governance issues that may adversely affect the value of certain investments in Lincoln’s portfolios requiring that Lincoln realize losses on such investments;

·   The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Lincoln’s ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;

·   The adequacy and collectibility of reinsurance that Lincoln has purchased;

·   Acts of terrorism, a pandemic, war or other man-made and natural catastrophes that may adversely affect Lincoln’s businesses and the cost and availability of reinsurance;

·   Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that Lincoln subsidiaries can charge for their products;

·   The unknown impact on Lincoln subsidiaries’ businesses resulting from changes in the demographics of their client base, as aging baby-boomers move from the asset-accumulation stage to the asset-distribution stage of life; and

·   Loss of key management, financial planners or wholesalers.

The risks included here are not exhaustive. Lincoln's annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC include additional factors which could impact the business of Lincoln's subsidiaries and Lincoln’s financial performance. Moreover, Lincoln and its subsidiaries operates in a rapidly changing and competitive environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors.

Further, it is not possible to assess the impact of all risk factors on business of Lincoln's subsidiaries or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this release.

9

EX-99.2

Lincoln Financial Group
Table of Contents
First Quarter 2010
Lincoln Financial Group Analyst Coverage		i
Notes	ii-iii
Financial Highlights		1 - 3
Consolidated Operating Expense Detail		4
Selected Financial Results Summary		5
Details Underlying Realized Loss, After-DAC		6
Consolidated Statements of Income		7
Consolidated Roll Forwards of DAC, VOBA, DFEL and DSI		8
Consolidating Statements of Income from Operations - Current Year - Quarter		9
Consolidating Statements of Income from Operations - Prior Year - Quarter		10
Consolidated Balance Sheets and Selected Share Data		11
Balance Sheet Data - Segment Highlights		12
Retirement Solutions
Annuities:
Income Statements and Operational Data		13
DAC, VOBA, DFEL and DSI Roll Forwards		14
Account Value Roll Forwards and Information		15
Account Value Information		16
Interest Rate Spread Information, GLB Expense Assessments, GLB Attributed Fee
and GLB Account Values by Type		17
Defined Contribution:
Income Statements, Operational Data and DAC, VOBA and DSI Roll Forwards		18
Account Value Roll Forwards and Information		19
Account Value Roll Forwards by Product		20
Account Value and Interest Rate Spread Information		21
Insurance Solutions
Life Insurance:
Income Statements, Operational Data and DAC, VOBA and DFEL Roll Forwards		22
Operational Data and Account Value Roll Forwards		23
Group Protection:
Income Statements and Operational Data		24
Other Operations		25
Discontinued Operations		25
Consolidated Deposits, Account Balances and Net Flows		26
Consolidated Investment Data		27

3/31/2010			i
Lincoln Financial Group Analyst Coverage
First Quarter 2010
Firm	Analyst	Phone Number
Bank of America - Merrill Lynch	Ed Spehar	212-449-4245
Barclays Capital	Eric Berg	212-526-2805
Citigroup	Colin Devine	212-816-1682
Credit Suisse	Tom Gallagher	212-538-2010
Deutsche Bank	Darin Arita	212-250-7321
Dowling and Partners	Sean Rourke	860-676-8600
FBR Capital Markets	Randy Binner	703-312-1890
Goldman Sachs and Company	Christopher Neczypor	212-357-8512
JP Morgan Securities	Jimmy Bhullar	212-622-6397
Keefe, Bruyette and Woods	Jeff Schuman	860-722-5902
Langen McAlenney	Bob Glasspiegel	860-724-1203
Macquarie Securities	Mark Finkelstein	312-425-4079
Morgan Stanley	Nigel Dally	212-761-4132
Raymond James and Associates	Steven Schwartz	312-612-7686
Sandler O'Neil and Partners	Edward Shields	312-281-3487
Sanford C. Bernstein & Co.	Suneet Kamath	212-756-4587
Sterne, Agee and Leach, Inc.	John Nadel	212-338-4717
UBS	Andrew Kligerman	212-713-2492
Wells Fargo Securities	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
Notes
This list is provided for informational purposes only.  Lincoln Financial Group does not endorse
the analyses, conclusions, or recommendations contained in any report issued by these or any
other analysts.
Lincoln Financial Group's Statistical Report will be available immediately after the release of
earnings for each quarter through our Investor Relations website:  www.LincolnFinancial.com/investor

3/31/2010				ii
NOTES
Definitions and Presentation
"Income (loss) from operations," "operating revenues" and "return on capital" are non-GAAP financial measures and do not replace GAAP
revenues, net income (loss) and return on stockholders' equity.  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 (loss) to arrive at income (loss) from operations:
	•	Realized gains and losses associated with the following ("excluded realized gain (loss)"):
		•	Sale or disposal of securities;
		•	Impairments of securities;
		•	Change in the fair value of embedded derivatives within certain reinsurance arrangements and the change in the fair value of our trading
			securities;
		•	Change in the fair value of the derivatives we own to hedge our guaranteed death benefit ("GDB") riders within our variable annuities, which
			is referred to as "GDB derivatives results";
		•	Change in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders within our variable annuities accounted
			for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative
			reserves”), net of the change in the fair value of the derivatives we own to hedge the changes in the embedded derivative reserves, the net of
			which is referred to as “GLB net derivative results”; and
		•	Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract
			holder index allocations applicable to future reset periods for our indexed annuity products accounted for under the Derivatives and Hedging
			and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“indexed annuity forward-starting option”).
	•	Change in reserves accounted for under the Financial Services - Insurance - Claim Costs and Liabilities for Future Policy Benefits Subtopic of
		the FASB ASC resulting from benefit ratio unlocking on our GDB and GLB riders ("benefit ratio unlocking");
	•	Income (loss) from the initial adoption of new accounting standards;
	•	Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance;
	•	Gain (loss) on early extinguishment of debt;
	•	Losses from the impairment of intangible assets; and
	•	Income (loss) from discontinued operations.
	•	Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:
		•	Excluded realized gain (loss);
		•	Amortization of deferred front-end loads ("DFEL") arising from changes in GDB and GLB benefit ratio unlocking;
		•	Amortization of deferred gains arising from the reserve changes on business sold through reinsurance; and
		•	Revenue adjustments from the initial adoption of new accounting standards.
	•	Return on capital measures the effectiveness of our use of 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 (loss) 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 our consolidated results.
Income (loss) from operations, operating revenues and return on capital are financial measures we use to evaluate and assess our results.  Our
management and Board of Directors believe that these performance measures explain the results of our ongoing businesses in a manner that
allows for a better understanding of the underlying trends in our current business because the excluded items are unpredictable and not
necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions
regarding these items do not necessarily relate to the operations of the individual segments.
	•	Certain operating and statistical measures are included in this report to provide supplemental data regarding the performance of our
		current business.  These measures include deposits, sales, net flows, first-year premiums, in force and spreads.
	•	Sales as reported consist of the following:
		•	Universal life ("UL") (excluding linked-benefit products) and variable universal life ("VUL"), including corporate-owned life
			insurance ("COLI") and bank-owned life insurance ("BOLI") - first year commissionable premiums plus 5% of excess premiums
			received, including an adjustment for internal replacements at approximately 50% of target;
		•	Whole life and term - 100% of first year paid premiums;
		•	Linked-benefit - 15% of premium deposits;
		•	Annuities - deposits from new and existing customers;
		•	Group Protection - annualized first year premiums from new policies; and
Our roll forwards of deferred acquisition costs ("DAC") and value of business acquired ("VOBA"), deferred sales inducements ("DSI") and 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, DSI and the calculations of embedded derivatives and reserves for
		annuity and life insurance products with certain guarantees.  We may also have prospective unlocking if we experience long-term
		or significant deviations from expected equity market returns requiring a change to best estimate projections of EGPs and reversion
		to the mean ("RTM") prospective unlocking of DAC, VOBA, DFEL, DSI and other contract holder funds.  These updates to assumptions
		result in unlocking that represent an increase or decrease to our carrying value of DAC, VOBA, DFEL, DSI and other contract holder
		funds based upon our updated view of future EGPs.  The various assumptions that are reviewed include investment margins, mortality,
		retention and rider utilization.  In addition, in the third quarter of each year during our annual prospective unlocking review, we may
		identify and implement actuarial modeling refinements which can result in prospective and retrospective unlocking impacts that impact
		DAC, VOBA, DSI, DFEL and embedded derivatives and reserves for annuity and life products with living and death benefit guarantee reserves.

			iii
	•	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.
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 and Series B preferred stock balances as it is non-convertible (issued and sold to the
U.S. Treasury in connection with the Troubled Asset Relief Program Capital Purchase Program as part of the Emergency Economic Stabilization Act
of 2008), by (b) common shares outstanding, assuming conversion of Series A preferred shares.  We provide book value per share excluding AOCI
to enable investors to analyze the amount of our net worth that is attributable primarily to our business operations. 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.
We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently
in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
In June 2009, the FASB issued Accounting Standards Update (“ASU”) No. 2009-17, “Improvements to Financial Reporting by Enterprises Involved
with Variable Interest Entities” (“ASU 2009-17”), which amended the consolidation guidance for variable interest entities (“VIEs”). For a more detailed
description of ASU 2009-17, see “Future Adoption of New Accounting Standards – Consolidations Topic” in Note 2 of our 2009 Form 10-K.
Effective January 1, 2010, we adopted the amendments in ASU 2009-17, and accordingly reconsidered our involvement with all our VIEs and the
primary beneficiary of the VIEs.  In accordance with ASU 2009-17, we are the beneficiary of the VIEs associated with our  investments in credit-linked
notes, and as such, we have consolidated all the assets and liabilities of these VIEs, and recorded a cumulative effect adjustment of $169 million,
after-tax, to reduce the beginning balance of retained earnings as of January 1, 2010.
Throughout the document, "after-DAC" refers to the associated amortization expense of DAC, VOBA, DSI and DFEL and changes in other contract
holder funds and funds withheld reinsurance liabilities.
Reclassifications
In addition to the items discussed above, certain amounts reported in prior periods have been reclassed to the presentation adopted in the current period.
These reclassifications had no effect on net income, income from operations or stockholders' equity in the prior period.

3/31/2010										PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)
	For the Three Months Ended March 31,
							Change
	2010			2009			Amount			%
Income from Operations - By Segment
Annuities	$	118.7		$	73.9		$	44.8			60.6	%
Defined Contribution		35.9			29.8			6.1			20.5	%
Total Retirement Solutions		154.6			103.7			50.9			49.1	%
Life Insurance		136.7			142.2			(5.5	)		-3.9	%
Group Protection		21.4			25.7			(4.3	)		-16.7	%
Total Insurance Solutions		158.1			167.9			(9.8	)		-5.8	%
Other Operations		(36.6	)		(108.5	)		71.9			66.3	%
Income from Operations (1)		276.1			163.1			113.0			69.3	%
Excluded realized loss, after-tax  (2) (3)		(26.5	)		(136.4	)		109.9			80.6	%
Benefit ratio unlocking, after-tax (3)		5.5			(52.0	)		57.5			110.6	%
Income from reserve changes (net of related amortization)
on business sold through reinsurance, after-tax (3)		0.4			0.4			-			0.0	%
Gain on early extinguishment of debt, after-tax (3)		-			41.8			(41.8	)		-100.0	%
Impairment of intangibles, after-tax (3)		-			(603.5	)		603.5			100.0	%
Income from discontinued operations, after-tax (4)		27.9			7.7			20.2			262.3	%
Net Income (Loss)		283.4			(578.9	)		862.3			149.0	%
Preferred stock dividends and accretion of discount		(18.4	)		-			(18.4	)	NM
Minority interest adjustment (5)		-			(0.1	)		0.1			100.0	%
Net Income (Loss) Available to Common Stockholders	$	265.0		$	(579.0	)	$	844.0			145.8	%

Earnings Per Common Share - Diluted
Income from operations (1) (6)	$	0.83		$	0.64		$	0.19		29.7	%
Excluded realized loss, after-tax  (2) (3) (6)		(0.09	)		(0.54	)		0.45		83.3	%
Benefit ratio unlocking, after-tax (3) (6)		0.02			(0.20	)		0.22		110.0	%
Gain on early extinguishment of debt, after-tax (3) (6)		-			0.16			(0.16	)	-100.0	%
Impairment of intangibles, after-tax (3) (6)		-			(2.36	)		2.36		100.0	%
Income from discontinued operations, after-tax  (4) (6)		0.09			0.03			0.06		200.0	%
Net Income (Loss)	$	0.85		$	(2.27	)	$	3.12		137.4	%

Operating Revenues - By Segment
Annuities	$	629.9		$	521.7		$	108.2	20.7	%
Defined Contribution		240.5			218.5			22.0	10.1	%
Total Retirement Solutions		870.4			740.2			130.2	17.6	%
Life Insurance		1,127.8			1,076.2			51.6	4.8	%
Group Protection		445.2			421.4			23.8	5.6	%
Total Insurance Solutions		1,573.0			1,497.6			75.4	5.0	%
Other Operations		123.9			105.4			18.5	17.6	%
Total Operating Revenues		2,567.3			2,343.2			224.1	9.6	%
Excluded realized loss, pre-tax (2)		(40.9	)		(207.6	)		166.7	80.3	%
Amortization income of DFEL associated with benefit
ratio unlocking, pre-tax		0.3			(4.2	)		4.5	107.1	%
Amortization of deferred gains arising from reserve
changes on business sold through reinsurance, pre-tax		0.7			0.7			-	-
Total Revenues	$	2,527.4		$	2,132.1		$	395.3	18.5	%

(1)	Income from operations includes restructuring charges. See page 5 for detail.
(2)	See page 6 for detail.
(3)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
(4)	Includes discontinued operations and the loss on disposal. See Discontinued Operations on page 25 for details.
(5)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(6)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been anti-dilutive. This same concept applies to our income (loss) from operations as well.

3/31/2010										PAGE 2
Financial Highlights (Continued)
Unaudited (billions of dollars)
	For the Three Months Ended March 31,
							Change
	2010			2009			Amount			%
Retirement Solutions - Annuities
Gross deposits	$	2.276		$	2.188		$	0.088			4.0	%
Net flows		0.575			0.430			0.145			33.7	%
Account values (gross)		77.857			57.155			20.702			36.2	%
Account values (net of reinsurance)		76.846			56.061			20.785			37.1	%
Retirement Solutions - Defined Contribution
Gross deposits (1)		1.307			1.561			(0.254	)		-16.3	%
Net flows		0.109			0.657			(0.548	)		-83.4	%
Account values - annuities		25.670			21.645			4.025			18.6	%
Alliance and Smart Future mutual funds		11.029			6.848			4.181			61.1	%
Total annuities and mutual fund account values		36.699			28.493			8.206			28.8	%
Insurance Solutions - Life Insurance
Sales (in millions)	$	142.6		$	145.2		$	(2.6	)		-1.8	%
Life insurance in force		546.319			525.234			21.085			4.0	%
Account values (net of reinsurance)		32.074			30.031			2.043			6.8	%
Insurance Solutions - Group Protection
Annualized sales (in millions)		63.1			54.3			8.8			16.2	%
Loss ratio (2)		74.8	%		70.8	%	NM			NM
Consolidated
Total deposits	$	4.660		$	4.807		$	(0.147	)		-3.1	%
Total account balances		145.619			114.585			31.034			27.1	%
Total net flows		1.286			1.644			(0.358	)		-21.8	%

(1)	Includes deposits for mutual funds. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.
(2)	Represents combined loss ratio for life, disability and dental businesses.

3/31/2010										PAGE 3
Financial Highlights (Continued)
Unaudited (millions of dollars)
	For the Three Months Ended March 31,
							Change
	2010			2009			Amount			%
Balance Sheet Assets - End-of-Period	$	181,621.4		$	157,426.9		$	24,194.5			15.4	%
Stockholders' Equity
Beginning-of-period (including AOCI)	$	11,700.2		$	7,976.8		$	3,723.4			46.7	%
End-of-period (including AOCI)		12,368.5			7,323.5			5,045.0			68.9	%
End-of-period (excluding AOCI)		12,066.3			10,298.6			1,767.7			17.2	%
Average equity (excluding AOCI)		12,013.9			10,539.5			1,474.4			14.0	%
Return on Equity
Net income (loss)/average equity (excluding AOCI)		9.4	%		-22.0	%
Income (loss) from operations/average equity (excluding AOCI)		9.2	%		6.2	%
Return on Capital
Income (loss) from operations/average capital		7.4	%		5.1	%
Common Shares Outstanding
Average for the period - basic		302.2			255.6			46.6			18.2	%
Average for the period - diluted		312.1			257.8			54.3			21.1	%
End-of-period - assuming conversion of preferreds (1)		302.6			256.2			46.4			18.1	%
End-of-period - diluted		313.0			258.1			54.9			21.3	%
Book value per common share (including AOCI) (2)	$	38.19		$	28.59		$	9.60			33.6	%
Book value per common share (excluding AOCI) (2)		37.19			40.20			(3.01	)		-7.5	%
Cash Returned to Common Stockholders
Common dividends declared	$	3.0		$	2.6			0.4			15.4	%
Dividend declared on common stock - per share	$	0.010		$	0.010		$	-			0.0	%
Dividend payout ratio		1.2	%		-0.4	%
Annualized yield (3)		0.1	%		0.6	%
Comprehensive Income (Loss)
Net income (loss)	$	283.4		$	(578.9	)	$	862.3			149.0	%
Net unrealized gain (loss) on available-for-sale securities		551.2			(45.0	)		596.2		NM
Unrealized other-than-temporary impairment on
available-for-sale securities		1.2			(75.2	)		76.4			101.6	%
Net unrealized gain (loss) on derivative instruments		9.6			(69.3	)		78.9			113.9	%
Foreign currency translation adjustment		(1.2	)		16.9			(18.1	)	NM
Funded status of employee benefit plans		2.8			0.9			1.9			211.1	%
Comprehensive Income (Loss)	$	847.0		$	(750.6	)	$	1,597.6			212.8	%
Leverage Ratio (4)		26.8	%		26.7	%

	Ratings as of April 28, 2010
								Standard &
		A.M. Best		Fitch		Moody's		Poor's
Senior Debt Ratings			a-	BBB		Baa2		A-
Financial Strength Ratings
Lincoln National Life Insurance Company			A+		A+		A2	AA-
First Penn-Pacific Life Insurance Company			A+		A+		A2	A+
Lincoln Life & Annuity Company of New York			A+		A+		A2	AA-

(1)	The holders of our Series B preferred stock have no right to exchange or convert such shares into any other securities, therefore these shares have not been converted in this calculation.
(2)	These computations exclude Series B preferred stock balances as it is non-convertible.
(3)	Indicated dividend divided by the closing price.
(4)	The numerator in this calculation is arrived at by adding our total debt, $5,161, excluding 75% of our capital securities, $1,114, and all of our $373 million senior note, which is net of the unamortized discount, issued in October 2007 because the proceeds were reinvested in a pool of long-term assets, plus our Series B preferred stock liquidation value of $950 million. The denominator in this calculation is arrived at by adding the numerator, $4,624, excluding the Series B preferred stock liquidation value, plus our stockholders' equity, excluding AOCI, $12,066, plus 75% of our capital securities, plus all of our senior notes.

3/31/2010																PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Commissions	$	360.0		$	358.2		$	403.9		$	421.2		$	379.7			5.5	%
General and Administrative Expenses
General and administrative expenses		306.3			311.4			317.3			351.7			310.8			1.5	%
Merger-related expenses		6.7			4.4			2.5			2.8			2.3			-65.7	%
Total General and Administrative Expenses,
Excluding Broker-Dealer		313.0			315.8			319.8			354.5			313.1			0.0	%
Communications expenses		12.9			13.5			13.2			12.9			13.8			7.0	%
Restructuring charges associated with merger-
related cost saving initiatives		-			-			0.1			-			-		NM
Restructuring charges for expense initiatives		5.1			28.6			0.5			0.3			-			-100.0	%
Taxes, licenses and fees		54.6			43.0			48.2			24.3			57.5			5.3	%
Interest and debt expense		64.7			60.9			68.0			68.1			68.1			5.3	%
Total Commissions and Expenses Incurred		810.3			820.0			853.7			881.3			832.2			2.7	%
Less: Commissions and Expenses Capitalized		(383.5	)		(385.4	)		(422.5	)		(460.0	)		(385.1	)		-0.4	%
Total Expenses Incurred, Excluding
Amortization and Broker-Dealer Expenses		426.8			434.6			431.2			421.3			447.1			4.8	%
Amortization
Amortization of DAC and VOBA, net of interest		237.7			231.7			311.4			260.9			258.1			8.6	%
Amortization of intangibles		1.1			1.0			1.1			1.0			1.0			-9.1	%
Total Amortization		238.8			232.7			312.5			261.9			259.1			8.5	%
Broker-Dealer Commissions and Other Expenses		64.1			69.2			73.6			81.1			73.6			14.8	%
Total	$	729.7		$	736.5		$	817.3		$	764.3		$	779.8			6.9	%
Merger-Related Expenses (1)
Severance and employee-related charges	$	0.7		$	0.6		$	0.3		$	0.5		$	0.2			-71.4	%
Systems integration and related expenses		5.1			2.6			1.5			1.4			2.0			-60.8	%
Other expenses		0.9			1.2			0.8			0.9			0.1			-88.9	%
Total Merger-Related Expenses	$	6.7		$	4.4		$	2.6		$	2.8		$	2.3			-65.7	%

(1) Represents merger-related expenses included in general and administrative expenses and restructuring charges.

3/31/2010																PAGE 5
Selected Financial Results Summary
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Operating Revenues
Annuities	$	521.7		$	552.5		$	598.2		$	628.9		$	629.9			20.7	%
Defined Contribution		218.5			223.5			240.6			243.7			240.5			10.1	%
Total Retirement Solutions		740.2			776.0			838.8			872.6			870.4			17.6	%
Life Insurance		1,076.2			1,002.2			1,089.1			1,125.9			1,127.8			4.8	%
Group Protection		421.4			442.9			414.6			433.6			445.2			5.6	%
Total Insurance Solutions		1,497.6			1,445.1			1,503.7			1,559.5			1,573.0			5.0	%
Other Operations		105.4			115.4			119.6			126.4			123.9			17.6	%
Total Operating Revenues		2,343.2			2,336.5			2,462.1			2,558.5			2,567.3			9.6	%
Excluded realized loss, pre-tax (1)		(207.6)			(454.6	)		(381.1	)		(156.6	)		(40.9	)		80.3	%
Amortization of DFEL associated with benefit
ratio unlocking, pre-tax		(4.2	)		(0.2	)		0.2			-			0.3			107.1	%
Amortization of deferred gains arising from reserve
changes on business sold through reinsurance, pre-tax		0.7			0.7			0.7			0.5			0.7			0.0	%
Total Revenues	$	2,132.1		$	1,882.4		$	2,081.9		$	2,402.4		$	2,527.4			18.5	%
Income (Loss) from Operations
Annuities	$	73.9		$	65.4		$	94.5		$	119.7		$	118.7			60.6	%
Defined Contribution		29.8			27.7			42.6			33.3			35.9			20.5	%
Total Retirement Solutions		103.7			93.1			137.1			153.0			154.6			49.1	%
Life Insurance		142.2			132.9			136.5			157.6			136.7			-3.9	%
Group Protection		25.7			33.6			34.5			30.1			21.4			-16.7	%
Total Insurance Solutions		167.9			166.5			171.0			187.7			158.1			-5.8	%
Other Operations		(108.5	)		(52.3	)		(32.6	)		(43.5	)		(36.6	)		66.3	%
Income from Operations		163.1			207.3			275.5			297.2			276.1			69.3	%
Excluded realized loss, after-tax (1) (2)		(136.4)			(296.8	)		(248.3	)		(98.3	)		(26.5	)		80.6	%
Benefit ratio unlocking, after-tax (2)		(52.0	)		80.9			52.3			7.6			5.5			110.6	%
Income from reserve changes (net of related
amortization) on business sold through reinsurance, after-tax (2)		0.4			0.4			0.4			0.5			0.4			0.0	%
Gain on early extinguishment of debt, after-tax (2)		41.8			-			-			-			-			-100.0	%
Impairment of intangibles, after-tax (2)		(603.5	)		0.6			1.4			(108.8	)		-			100.0	%
Income (loss) from discontinued operations, after-   tax (3)		7.7			(153.8	)		72.0			4.1			27.9			262.3	%
Net Income (Loss)		(578.9	)		(161.4	)		153.3			102.3			283.4			149.0	%
Preferred stock dividends and accretion of discount		-			-			(16.3	)		(18.2	)		(18.4	)	NM
Minority interest adjustment (4)		(0.1	)		-			-			-			-			100.0	%
Net Income (Loss) Available to Common
Stockholders	$	(579.0	)	$	(161.4	)	$	137.0		$	84.1		$	265.0			145.8	%
Stockholders' Equity
Beginning-of-period (including AOCI)	$	7,976.8		$	7,323.5		$	9,074.9		$	11,655.5		$	11,700.2
End-of-period (including AOCI)		7,323.5			9,074.9			11,655.5			11,700.2			12,368.5
End-of-period (excluding AOCI)		10,298.6			10,782.3			11,876.0			11,961.6			12,066.3
Average equity (excluding AOCI)		10,539.5			10,540.5			11,329.1			11,918.8			12,013.9
Restructuring Charges, After-Tax	$	3.3		$	18.6		$	0.4		$	0.2		$	0.0
Common Shares Outstanding
Average for the period - basic		255.6			260.1			301.8			301.9			302.2
Average for the period - diluted		257.8			262.4			310.0			311.6			312.1
End-of-period - diluted		258.1			304.2			311.8			311.8			313.0
Earnings (Loss) Per Common Share - Diluted
Income (loss) from operations (5)	$	0.64		$	0.80		$	0.84		$	0.90		$	0.83
Net income (loss) (5)		(2.27	)		(0.62	)		0.44			0.27			0.85
Restructuring charges		(0.01	)		(0.07	)		(0.00	)		(0.00	)		(0.00	)
Stockholders' Equity Per Common Share
Stockholders' equity (including AOCI) (6)	$	28.59		$	30.02		$	35.91		$	36.02		$	38.19
Stockholders' equity (excluding AOCI) (6)		40.20			35.67			36.64			36.89			37.19
Dividends declared (common stock)		0.010			0.010			0.010			0.010			0.010
Return on Equity
Net income (loss)/average equity		-22.0	%		-6.1	%		5.4	%		3.4	%		9.4	%
Income (loss) from operations/average equity		6.2	%		7.9	%		9.7	%		10.0	%		9.2	%
Market Value of Common Shares
Highest price	$	25.59		$	19.99		$	27.82		$	28.10		$	30.74
Lowest price		4.90			5.52			14.34			21.99			22.52
Closing price		6.69			17.21			25.91			24.88			30.70

(1)	See page 6 for detail.
(2)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
(3)	Includes discontinued operations and the loss on disposal. See Discontinued Operations on page 25 for details.
(4)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(5)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been anti-dilutive. This same concept applies to our income (loss) from operations as well.
(6)	These computations exclude Series B preferred stock balances as it is non-convertible.

3/31/2010																PAGE 6
Details Underlying Realized Loss, After-DAC
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Pre-Tax
Operating realized gain (loss):
Indexed annuity net derivatives results (1)	$	(0.2	)	$	0.2		$	0.3		$	-		$	0.4			300.0	%
GLB (2)		11.8			11.5			14.7			15.8			15.0			27.1	%
Total operating realized gain		11.6			11.7			15.0			15.8			15.4			32.8	%
Realized loss related to certain investments (3)		(150.1	)		(158.3	)		(135.6	)		(128.1	)		(44.4	)		70.4	%
Gain (loss) on certain reinsurance
derivative/trading securities (4)		21.7			(9.4	)		70.5			(12.5	)		2.0			-90.8	%
GLB net derivatives results (5)		(125.6	)		(150.5	)		(227.9	)		2.8			11.9			109.5	%
GDB derivatives results (6)		45.8			(140.8	)		(84.2	)		(21.7	)		(13.0	)	NM
Indexed annuity forward-starting option (7)		0.6			3.4			(3.9	)		2.9			2.6		NM
Gain on sale of subsidiaries/businesses		-			1.0			-			-			-		NM
Total excluded realized loss		(207.6	)		(454.6	)		(381.1	)		(156.6	)		(40.9	)		80.3	%
Total Realized Loss	$	(196.0	)	$	(442.9	)	$	(366.1	)	$	(140.8	)	$	(25.5	)		87.0	%
After-Tax
Operating realized gain (loss):
Indexed annuity net derivatives results (1) (8)	$	(0.1	)	$	0.1		$	0.2		$	-		$	0.3		NM
GLB (2) (8)		7.6			7.5			9.6			10.3			9.8			28.9	%
Total operating realized gain		7.5			7.6			9.8			10.3			10.1			34.7	%
Realized loss related to certain investments (3) (8)		(97.6	)		(102.9	)		(88.0	)		(83.3	)		(28.8	)		70.5	%
Gain (loss) on certain reinsurance
derivative/trading securities (4) (8)		14.1			(6.1	)		45.8			(8.1	)		1.3			-90.8	%
GLB net derivatives results (5) (8)		(81.6	)		(97.9	)		(148.0	)		1.7			7.7			109.4	%
GDB derivatives results (6) (8)		28.3			(92.8	)		(55.6	)		(10.5	)		(8.4	)	NM
Indexed annuity forward-starting option (7) (8)		0.4			2.2			(2.5	)		1.9			1.7		NM
Gain on sale of subsidiaries/businesses (8)		-			0.7			-			-			-		NM
Total excluded realized loss		(136.4	)		(296.8	)		(248.3	)		(98.3	)		(26.5	)		80.6	%
Total Realized Loss	$	(128.9	)	$	(289.2	)	$	(238.5	)	$	(88.0	)	$	(16.4	)		87.3	%
Components of GLB Net Derivatives Results
Net valuation premium, net of reinsurance, after-
DAC	$	22.2		$	27.4		$	31.2		$	34.8		$	25.8			16.2	%
Change in reserves hedged, after-DAC:
Unlocking		-			-			(25.7	)		(240.8	)		-		NM
Other		233.2			1,977.7			208.9			644.6			190.0			-18.5	%
Change in market value of derivative assets, after-
DAC		(297.9	)		(1,846.3	)		(241.1	)		(548.9	)		(198.0	)		33.5	%
Hedge program effectiveness (ineffectiveness),
after-DAC		(64.7	)		131.4			(57.9	)		(145.1	)		(8.0	)		87.6	%
Change in reserves not hedged (NPR component),
after-DAC		(55.4	)		(333.0	)		(212.0	)		54.1			(0.9	)		98.4	%
Change in derivative assets not hedged (NPR
component)		(11.9	)		17.0			5.0			4.7			(1.0	)		91.6	%
Associated amortization expense of DAC, VOBA,
DSI and DFEL:
Unlocking		(59.4	)		(83.7	)		(76.5	)		43.5			4.7			107.9	%
Other amortization		43.6			90.4			82.3			10.8			(8.7	)	NM
GLB Net Derivatives Results	$	(125.6	)	$	(150.5	)	$	(227.9	)	$	2.8		$	11.9			109.5	%

(1)	Represents the net difference between the change in the fair value of the S&P 500 Index® call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity products.  The change in the fair value of the liability for the embedded derivative represents the amount that is credited to the indexed annuity contract.
(2)	Represents the "risk/profit margin" portion of the attributed GLB rider fees. We have certain GLB variable annuity riders with GWB and GIB features that are embedded derivatives.  We attribute to the embedded derivative the portion of total fees collected from the contract holder that relates to the GLB riders (the “attributed fees”).  These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract (the “net valuation premium”) plus a margin that a theoretical market participant would include for risk/profit (the “risk/profit margin”).  We include the net valuation premium of the GLB attributed rider fees in excluded realized gain (loss).  For our Retirement Solutions – Annuities and Retirement Solutions –  Defined Contribution segments, the total fees collected from the contract holders in excess of the GLB attributed fees are reported in insurance fees.
(3)	See page 27 for detail.
(4)	Represents changes in the fair values of total return swaps (embedded derivatives) theoretically included in our various modified coinsurance and coinsurance with funds withheld reinsurance arrangements that have contractual returns related to various assets and liabilities associated with these arrangements.  Changes in the fair value of these derivatives are offset by the change in fair value of trading securities in the portfolios that support these arrangements.
(5)	Represents the net valuation premium, the change in the fair value of the embedded derivative liabilities of our GLB products, the change in the fair value of the derivative instruments we own to hedge the embedded derivative, the cost of purchasing the derivative instruments, and the associated changes to DAC, VOBA, DSI, and DFEL.
(6)	Represents the change in the fair value of the derivatives we own to hedge the change in the GDB riders.
(7)	Represents changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products.
(8)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.

3/31/2010																PAGE 7
Consolidated Statements of Income
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Revenues
Insurance premiums	$	508.2		$	541.8		$	490.4		$	523.8		$	531.8			4.6	%
Surrender charges		31.8			36.8			43.2			40.6			42.7			34.3	%
Mortality assessments		344.1			320.0			317.1			317.8			317.9			-7.6	%
Expense assessments		324.9			333.9			405.3			406.9			427.5			31.6	%
Net investment income		1,013.3			970.6			1,071.3			1,122.3			1,106.1			9.2	%
Realized loss:
Total other-than-temporary impairment losses on securities		(210.6	)		(220.1	)		(147.5	)		(88.7	)		(75.9	)		64.0	%
Portion of loss recognized in other comprehensive income		89.1			102.5			67.8			15.4			23.5			-73.6	%
Net other-than-temporary impairment losses on
securities recognized in earnings		(121.5	)		(117.6	)		(79.7	)		(73.3	)		(52.4	)		56.9	%
Realized gain (loss), excluding other-than-temporary
impairment losses on securities		(74.5	)		(325.3	)		(286.4	)		(67.5	)		26.9			65.8	%
Total realized loss (1)		(196.0	)		(442.9	)		(366.1	)		(140.8	)		(25.5	)		87.0	%
Amortization of deferred gains on business sold
through reinsurance		19.0			18.3			18.4			20.3			18.9			-0.5	%
Other revenues and fees		86.8			103.9			102.3			111.5			108.0			24.4	%
Total Revenues		2,132.1			1,882.4			2,081.9			2,402.4			2,527.4			18.5	%
Benefits and Expenses
Interest credited		626.9			606.9			614.2			614.9			617.7			-1.5	%
Benefits		920.1			574.6			577.2			763.9			779.2			-15.3	%
Underwriting, acquisition, insurance and other expenses		643.5			694.5			761.4			694.6			713.7			10.9	%
Interest and debt expense		0.4			60.9			68.0			68.1			68.1		NM
Impairment of intangibles		603.7			(0.6	)		(1.4	)		127.8			-			-100.0	%
Total Benefits and Expenses		2,794.6			1,936.3			2,019.4			2,269.3			2,178.7			-22.0	%
Income (loss) from continuing operations before taxes		(662.5	)		(53.9	)		62.5			133.1			348.7			152.6	%
Federal income tax expense (benefit)		(75.9	)		(46.3	)		(18.8	)		34.9			93.2			222.8	%
Income (Loss) from Continuing Operations		(586.6	)		(7.6	)		81.3			98.2			255.5			143.6	%
Income (loss) from discontinued operations, net of
federal income tax expense (benefit) (2)		7.7			(153.8	)		72.0			4.1			27.9			262.3	%
Net Income (Loss)		(578.9	)		(161.4	)		153.3			102.3			283.4			149.0	%
Preferred stock dividends and accretion of discount		-			-			(16.3	)		(18.2	)		(18.4	)	NM
Minority interest adjustment (3)		(0.1	)		-			-			-			-			100.0	%
Net Income (Loss) Available to Common
Stockholders	$	(579.0	)	$	(161.4	)	$	137.0		$	84.1		$	265.0			145.8	%
Earnings (Loss) Per Common Share (Diluted) (4)
Income (loss) from continuing operations	$	(2.30	)	$	(0.03	)	$	0.21		$	0.26		$	0.76			133.0	%
Income (loss) from discontinued operations, net of
federal income tax expense (benefit) (2)		0.03			(0.59	)		0.23			0.01			0.09			200.0	%
Net Income (Loss)	$	(2.27	)	$	(0.62	)	$	0.44		$	0.27		$	0.85			137.4	%

(1)	See page 6 for detail.
(2)	Contains discontinued operations and the loss on disposition.  See Discontinued Operations on page 25 for additional details.
(3)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(4)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been anti-dilutive.

3/31/2010													PAGE 8
Consolidated Roll Forwards of DAC, VOBA, DFEL and DSI
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March
DAC and VOBA	2009			2009			2009			2009			2010
Balance as of beginning-of-period	$	11,403.3		$	11,399.4		$	10,455.9		$	9,182.3		$	9,509.6
Business sold through reinsurance		(292.9	)		-			-			-			-
Deferrals		383.5			385.4			422.5			460.0			385.1
Amortization, net of interest:
Unlocking		(32.6	)		(0.5	)		(39.9	)		12.7			43.3
Amortization, net of interest, excluding unlocking		(205.1	)		(231.2	)		(271.5	)		(273.6	)		(301.4	)
Deferrals, net of amortization included in operating
underwriting, acquisition, insurance and other expenses		145.8			153.7			111.1			199.1			127.0
Amortization, net of interest, associated with benefit ratio unlocking		21.4			(18.9	)		(12.1	)		(1.1	)		(1.8	)
Adjustment related to realized (gains) losses		6.9			70.5			31.2			82.1			(8.6	)
Adjustment related to unrealized (gains) losses		114.9			(1,148.8	)		(1,403.8	)		47.2			(431.1	)
Balance as of End-of-Period	$	11,399.4		$	10,455.9		$	9,182.3		$	9,509.6		$	9,195.1

DFEL
Balance as of beginning-of-period	$	1,019.4		$	1,076.2		$	1,160.8		$	1,220.3		$	1,337.6
Business sold through reinsurance		(11.0	)		-			-			-			-
Deferrals		107.5			112.5			124.0			151.6			135.2
Amortization, net of interest:
Unlocking		(4.9	)		(0.9	)		(30.7	)		(2.0	)		(7.0	)
Amortization, net of interest, excluding unlocking		(32.8	)		(28.3	)		(36.6	)		(34.4	)		(44.0	)
Deferrals, net of amortization included in operating
expense assessments		69.8			83.3			56.7			115.2			84.2
Amortization, net of interest, associated with benefit
ratio unlocking		4.1			0.2			(0.2	)		-			(0.3	)
Adjustment related to realized gains (losses)		(6.8	)		0.9			2.2			2.8			(1.3	)
Adjustment related to unrealized gains (losses)		0.7			0.2			0.8			(0.7	)		(74.9	)
Balance as of End-of-Period	$	1,076.2		$	1,160.8		$	1,220.3		$	1,337.6		$	1,345.3

DSI
Balance as of beginning-of-period	$	262.7		$	279.4		$	289.1		$	305.0		$	323.3
Deferrals		15.9			19.2			20.1			21.1			19.5
Amortization, net of interest:
Unlocking		(1.7	)		(0.1	)		3.6			2.5			2.1
Amortization, net of interest, excluding unlocking		(4.9	)		(9.9	)		(10.2	)		(6.3	)		(15.0	)
Deferrals, net of amortization included in operating
insurance benefits or interest credited		9.3			9.2			13.5			17.3			6.6
Amortization, net of interest, associated with benefit
ratio unlocking		2.4			(1.7	)		(1.1	)		(0.1	)		(0.2	)
Adjustment related to realized (gains) losses		4.8			2.9			3.1			2.0			(1.9	)
Adjustment related to unrealized (gains) losses		0.2			(0.7	)		0.4			(0.9	)		(28.4	)
Balance as of End-of-Period	$	279.4		$	289.1		$	305.0		$	323.3		$	299.4

3/31/2010												PAGE 9
Consolidating Statements of Income From Operations
For the Quarter Ended March 31, 2010
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	9.9	$	-	$	112.3	$	409.9	$	(0.3	)	$	531.8
Surrender charges		10.9		1.1		30.8		-		-			42.8
Mortality assessments		-		-		317.9		-		-			317.9
Expense assessments		249.2		49.1		128.7		-		-			427.0
Net investment income		270.8		186.2		530.1		33.6		85.4			1,106.1
Operating realized gain (2)		15.3		0.1		-		-		-			15.4
Amortization of deferred gain on business sold
through reinsurance		-		-		-		-		18.2			18.2
Other revenues and fees		73.8		4.0		8.0		1.7		20.6			108.1
Total Operating Revenues		629.9		240.5		1,127.8		445.2		123.9			2,567.3
Operating Expenses
Interest credited		176.2		110.4		296.9		0.5		33.6			617.6
Benefits		43.8		2.0		398.9		310.7		34.1			789.5
Underwriting, acquisition, insurance and other expenses		259.8		77.9		230.0		101.1		43.1			711.9
Interest and debt expense		-		-		-		-		68.1			68.1
Total Operating Expenses		479.8		190.3		925.8		412.3		178.9			2,187.1
Income (loss) from operations before federal income tax        expense (benefit)		150.1		50.2		202.0		33.0		(55.0	)		380.3
Federal income tax expense (benefit)		31.4		14.3		65.3		11.6		(18.4	)		104.2
Income (Loss) from Operations	$	118.7	$	35.9	$	136.7	$	21.4	$	(36.6	)	$	276.1

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 13 and 18.

3/31/2010														PAGE 10
Consolidating Statements of Income From Operations
For the Quarter Ended March 31, 2009
Unaudited (in millions)
	Retirement Solutions						Insurance Solutions
				Defined			Life		Group		Other
	Annuities			Contribution			Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	27.1		$	-		$	90.5	$	389.8	$	0.8		$	508.2
Surrender charges		9.2			1.0			21.6		-		-			31.8
Mortality assessments		-			-			344.1		-		-			344.1
Expense assessments		172.5			39.6			116.5		-		-			328.6
Net investment income		240.4			175.5			497.7		30.1		69.7			1,013.4
Operating realized gain (2)		11.5			0.1			-		-		-			11.6
Amortization of deferred gain on business sold
through reinsurance		-			-			-		-		18.4			18.4
Other revenues and fees		61.0			2.3			5.8		1.5		16.5			87.1
Total Operating Revenues		521.7			218.5			1,076.2		421.4		105.4			2,343.2
Operating Expenses
Interest credited		163.6			111.5			302.8		0.6		50.9			629.4
Benefits		75.8			(1.8	)		355.7		282.0		106.6			818.3
Underwriting, acquisition, insurance and other expenses		219.7			72.4			224.0		99.3		49.4			664.8
Interest and debt expense		-			-			-		-		64.7			64.7
Total Operating Expenses		459.1			182.1			882.5		381.9		271.6			2,177.2
Income (loss) from operations before federal income tax          expense (benefit)		62.6			36.4			193.7		39.5		(166.2	)		166.0
Federal income tax expense (benefit)		(11.3	)		6.6			51.5		13.8		(57.7	)		2.9
Income (Loss) from Operations	$	73.9		$	29.8		$	142.2	$	25.7	$	(108.5	)	$	163.1

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 13 and 18.

3/31/2010													PAGE 11
Consolidated Balance Sheets and Selected Share Data
Unaudited (millions of dollars)
	As of
	March			June			Sept.			Dec.			March
	2009			2009			2009			2009			2010
ASSETS
Investments:
Corporate bonds	$	37,076.2		$	42,489.5		$	46,304.6		$	45,860.3		$	47,446.2
U.S. Government bonds		233.4			221.2			221.7			194.2			198.3
Foreign government bonds		479.6			479.8			492.9			504.9			456.1
Mortgage-backed securities		9,754.6			9,889.7			10,946.9			11,103.3			11,365.4
State and municipal bonds		226.6			906.6			1,464.9			1,967.6			2,198.1
VIEs' fixed maturity securities		-			-			-			-			579.5
Preferred stocks - redeemable		765.1			1,063.0			1,235.2			1,188.0			1,216.7
Common stocks		132.8			171.9			211.6			198.4			222.3
Preferred stocks - equity		42.9			64.4			71.4			80.0			87.7
Total available-for-sale securities		48,711.2			55,286.1			60,949.2			61,096.7			63,770.3
Trading securities		2,245.6			2,316.7			2,547.9			2,504.6			2,532.5
Mortgage loans on real estate		7,615.9			7,468.3			7,276.7			7,177.8			7,012.5
Real estate		129.2			159.2			154.3			173.8			200.6
Policy loans		2,905.6			2,896.9			2,893.0			2,897.8			2,902.8
Derivative investments		2,226.1			1,233.8			1,282.0			1,010.1			992.4
Other investments		1,476.2			1,187.1			1,079.6			1,057.2			1,046.4
Total investments		65,309.8			70,548.1			76,182.7			75,918.0			78,457.5
Cash and invested cash		5,386.9			2,399.5			3,159.0			4,024.7			3,444.7
DAC and VOBA		11,399.4			10,455.9			9,182.3			9,509.6			9,195.1
Premiums and fees receivable		462.7			400.2			323.4			320.9			397.4
Accrued investment income		865.0			881.5			943.2			889.2			940.0
Reinsurance recoverables		7,976.0			7,729.3			7,664.1			6,425.9			6,520.1
Reinsurance related derivative assets		106.9			45.8			-			-			-
Goodwill		3,096.4			3,096.4			3,096.4			3,013.5			3,013.5
Other assets		9,888.5			10,396.8			10,827.1			3,831.4			3,223.9
Separate account assets		52,935.3			61,090.9			70,111.0			73,500.1			76,429.2
Total Assets	$	157,426.9		$	167,044.4		$	181,489.2		$	177,433.3		$	181,621.4
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	18,038.8		$	16,127.5		$	15,970.2		$	15,287.4		$	15,269.9
Other contract holder funds		61,262.3			62,427.6			63,956.3			64,818.5			65,452.3
Short-term debt		1,435.7			454.5			400.2			349.9			101.2
Long-term debt		4,344.9			4,775.1			4,788.6			5,050.4			5,060.3
Reinsurance related derivative liabilities		-			-			39.1			30.5			46.6
Funds withheld reinsurance liabilities		1,215.0			1,222.3			1,219.8			1,260.6			1,216.4
Deferred gain on indemnity reinsurance		547.7			529.1			510.8			543.4			524.7
Payables for collateral under securities loaned and derivatives		2,385.9			1,712.1			2,239.8			1,906.7			1,827.7
VIEs' liabilities		-			-			-			-			142.0
Other liabilities		7,937.8			9,630.4			10,597.9			2,985.6			3,182.6
Separate account liabilities		52,935.3			61,090.9			70,111.0			73,500.1			76,429.2
Total liabilities		150,103.4			157,969.5			169,833.7			165,733.1			169,252.9
Stockholders' Equity
Series A preferred stock		0.4			0.4			0.4			0.4			0.4
Series B preferred stock		-			-			799.9			806.3			812.8
Common stock		7,033.5			7,681.5			7,841.7			7,839.9			7,845.3
Retained earnings		3,264.7			3,100.4			3,234.0			3,315.0			3,407.8
Accumulated other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities		(2,699.5	)		(1,448.8	)		126.8			49.4			600.6
Unrealized other-than-temporary impairment on available-
for-sale securities		(75.2	)		(117.7	)		(121.8	)		(115.1	)		(113.9	)
Net unrealized gain on derivative instruments		57.8			53.7			10.8			11.4			21.0
Foreign currency translation adjustment		23.2			91.5			68.2			2.9			1.7
Funded status of employee benefit plans		(281.4	)		(286.1	)		(304.5	)		(210.0	)		(207.2	)
Total accumulated other comprehensive loss		(2,975.1	)		(1,707.4	)		(220.5	)		(261.4	)		302.2
Total stockholders' equity		7,323.5			9,074.9			11,655.5			11,700.2			12,368.5
Total Liabilities and Stockholders' Equity	$	157,426.9		$	167,044.4		$	181,489.2		$	177,433.3		$	181,621.4
Share Data Per Common Share
Stockholders' equity per share (1)	$	28.59		$	30.02		$	35.91		$	36.02		$	38.19
Book value, excluding AOCI (1)		40.20			35.67			36.64			36.89			37.19
Common shares outstanding - assuming conversion of
Series A preferred shares (in millions)		256.2			302.3			302.3			302.4			302.6

(1) These computations exclude Series B preferred stock balances as it is non-convertible.

3/31/2010												PAGE 12
Balance Sheet Data - Segment Highlights
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
As of March 31, 2010			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash (2)	$	21,348.0	$	13,338.7	$	36,037.1	$	2,371.4	$	8,807.0		$	81,902.2
DAC and VOBA		2,285.0		462.1		6,285.0		163.0		-			9,195.1
Goodwill		439.8		20.2		2,188.5		274.3		90.7			3,013.5
DSI and other intangibles		296.9		4.5		84.0		-		118.1			503.5
Reinsurance recoverables		514.5		-		1,895.9		39.0		4,070.7			6,520.1
Separate account assets		57,734.3		13,240.8		5,273.7		-		180.4			76,429.2
Liabilities and Capital
Future contract benefits		1,235.9		2.1		6,491.1		1,480.2		6,060.6			15,269.9
Other contract holder funds		19,684.7		12,414.0		31,617.0		207.9		1,528.7			65,452.3
Allocated capital (3)		2,931.5		1,045.5		8,363.9		1,085.0		(1,359.6	)		12,066.3
As of December 31, 2009
Assets
Allocated investments and cash and invested cash (2)	$	21,113.4	$	13,053.4	$	35,072.6	$	2,296.1	$	8,407.2		$	79,942.7
DAC and VOBA		2,381.0		537.7		6,427.9		159.5		3.5			9,509.6
Goodwill		439.8		20.2		2,188.5		274.3		90.7			3,013.5
DSI and other intangibles		320.6		4.6		85.0		-		118.2			528.4
Reinsurance recoverables		531.8		-		1,870.8		39.9		3,983.4			6,425.9
Separate accounts assets		55,286.9		12,949.6		5,088.3		-		175.3			73,500.1
Liabilities and Capital
Future contract benefits		1,439.0		2.6		6,434.7		1,446.3		5,964.8			15,287.4
Other contract holder funds		19,565.6		12,239.8		31,287.4		193.1		1,532.6			64,818.5
Allocated capital (3)		2,785.0		1,070.6		8,144.1		1,065.1		(1,103.2	)		11,961.6

(1)	Includes inter-segment eliminations.
(2)	Includes inter-segment cash management balances our segments utilize to borrow money to meet their short-term needs and also to invest short-term funds with other segments. These balances eliminate in consolidation.
(3)	Allocated capital is based on internal economic capital models plus certain other items (principally intangibles, including DAC and VOBA, goodwill and other items).

3/31/2010																PAGE 13
Retirement Solutions - Annuities
Income Statements and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Operating Revenues
Insurance premiums (1)	$	27.1		$	32.5		$	17.3		$	11.9		$	9.9			-63.5	%
Surrender charges		9.2			8.9			9.0			9.3			10.9			18.5	%
Expense assessments		172.5			187.3			214.3			230.1			249.2			44.5	%
Net investment income		240.4			243.9			271.5			281.2			270.8			12.6	%
Operating realized gain (2)		11.5			11.6			14.9			15.8			15.3			33.0	%
Other revenues and fees (3)		61.0			68.3			71.2			80.6			73.8			21.0	%
Total Operating Revenues		521.7			552.5			598.2			628.9			629.9			20.7	%
Operating Expenses
Interest credited		163.6			170.4			175.9			172.5			176.2			7.7	%
Benefits (1)		75.8			67.0			51.5			47.5			43.8			-42.2	%
Underwriting, acquisition, insurance and other   expenses		219.7			238.5			258.8			266.0			259.8			18.3	%
Total Operating Expenses		459.1			475.9			486.2			486.0			479.8			4.5	%
Income from operations before federal income tax
expense		62.6			76.6			112.0			142.9			150.1			139.8	%
Federal income tax expense (benefit)		(11.3	)		11.2			17.5			23.2			31.4		NM
Income from Operations	$	73.9		$	65.4		$	94.5		$	119.7		$	118.7			60.6	%
Effective Tax Rate		-18.1	%		14.6	%		15.6	%		16.2	%		20.9	%
Average Equity	$	3,193.4		$	2,912.1		$	2,814.2		$	2,785.6		$	2,858.3
Return on Average Equity		9.3	%		9.0	%		13.4	%		17.2	%		16.6	%
Income from Operations - Basis Points on
Average Account Values - Annualized		52			42			55			65			63			11
Operating Realized Gain (Loss) (2)
Indexed annuity net derivatives results (4)	$	(0.2	)	$	0.2		$	0.4		$	-		$	0.4			300.0	%
GLB (5)		11.7			11.4			14.5			15.8			14.9			27.4	%
Total Operating Realized Gain	$	11.5		$	11.6		$	14.9		$	15.8		$	15.3			33.0	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	124.6		$	157.2		$	185.3		$	161.1		$	150.0			20.4	%
General and administrative expenses		72.1			76.2			82.5			85.9			78.0			8.2	%
Broker-dealer commissions and general and
administrative expenses		64.1			69.2			73.6			81.1			73.6			14.8	%
Taxes, licenses and fees		5.7			6.7			6.3			4.0			9.1			59.6	%
Total commissions and expenses incurred		266.5			309.3			347.7			332.1			310.7			16.6	%
Less: commissions and expenses capitalized		(127.3	)		(158.2	)		(181.0	)		(157.2	)		(131.6	)		-3.4	%
Amortization of DAC and VOBA, net of interest		80.5			87.4			92.1			91.1			80.7			0.2	%
Total Underwriting, Acquisition, Insurance
and Other Expenses	$	219.7		$	238.5		$	258.8		$	266.0		$	259.8			18.3	%
General and Administrative Expenses - Basis
Points on Average Account Values - Annualized (6)		51			49			48			47			41			(10	)

(1)	Includes our single premium immediate annuities, which have a corresponding offset to benefits for changes in reserves.
(2)	Included in income from operations.
(3)	Primarily broker-dealer revenues.
(4)	See note (1) on page 6 for details.
(5)	See note (2) on page 6 for details.
(6)	Includes distribution costs.

3/31/2010													PAGE 14
Retirement Solutions - Annuities
DAC, VOBA, DFEL and DSI Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March
DAC and VOBA	2009			2009			2009			2009			2010
Balance as of beginning-of-period	$	2,976.9		$	3,056.6		$	2,698.1		$	2,286.6		$	2,381.0
Deferrals		127.3			158.2			181.0			157.2			131.6
Amortization, net of interest:
Unlocking		(17.8	)		5.0			5.1			16.2			59.4
Amortization, net of interest, excluding unlocking		(62.7	)		(92.4	)		(97.2	)		(107.3	)		(140.1	)
Deferrals, net of amortization included in operating
underwriting, acquisition, insurance and other expenses		46.8			70.8			88.9			66.1			50.9
Amortization, net of interest, associated with benefit
ratio unlocking		19.8			(16.9	)		(11.0	)		(0.9	)		(1.3	)
Adjustment related to realized (gains) losses		(18.2	)		22.5			26.2			43.9			(11.5	)
Adjustment related to unrealized (gains) losses		31.3			(434.9	)		(515.6	)		(14.7	)		(134.1	)
Balance as of End-of-Period	$	3,056.6		$	2,698.1		$	2,286.6		$	2,381.0		$	2,285.0
DFEL
Balance as of beginning-of-period	$	130.3		$	134.5		$	146.5		$	162.2		$	182.1
Deferrals		10.6			12.3			15.8			17.6			17.0
Amortization, net of interest:
Unlocking		(2.0	)		(0.2	)		(2.8	)		0.9			1.1
Amortization, net of interest, excluding unlocking		(0.7	)		1.1			1.0			1.8			(5.5	)
Deferrals, net of amortization included in operating
expense assessments		7.9			13.2			14.0			20.3			12.6
Amortization, net of interest, associated with benefit
ratio unlocking		4.1			0.2			(0.2	)		-			(0.3	)
Adjustment related to realized gains (losses)		(7.6	)		(1.4	)		1.8			(0.4	)		(1.3	)
Adjustment related to unrealized gains (losses)		(0.2	)		-			0.1			-			(2.1	)
Balance as of End-of-Period	$	134.5		$	146.5		$	162.2		$	182.1		$	191.0
DSI
Balance as of beginning-of-period	$	260.7		$	277.2		$	286.6		$	302.4		$	320.6
Deferrals		15.7			18.7			20.0			21.0			19.4
Amortization, net of interest:
Unlocking		(1.7	)		(0.2	)		3.6			2.6			2.1
Amortization, net of interest, excluding unlocking		(4.7	)		(9.7	)		(10.2	)		(6.4	)		(15.0	)
Deferrals, net of amortization included in operating
interest credited		9.3			8.8			13.4			17.2			6.5
Amortization, net of interest, associated with benefit
ratio unlocking		2.4			(1.7	)		(1.1	)		(0.1	)		(0.2	)
Adjustment related to realized (gains) losses		4.7			2.9			3.1			2.0			(1.9	)
Adjustment related to unrealized (gains) losses		0.1			(0.6	)		0.4			(0.9	)		(28.1	)
Balance as of End-of-Period	$	277.2		$	286.6		$	302.4		$	320.6		$	296.9

3/31/2010																PAGE 15
Retirement Solutions - Annuities
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Fixed Annuities
Balance as of beginning-of-period	$	17.655		$	17.854		$	18.596		$	19.766		$	19.940			12.9	%
Gross deposits		1.361			1.774			2.025			1.195			1.138			-16.4	%
Withdrawals and deaths		(0.765	)		(0.646	)		(0.501	)		(0.523	)		(0.486	)		36.5	%
Net flows		0.596			1.128			1.524			0.672			0.652			9.4	%
Transfers to variable annuities		(0.558	)		(0.582	)		(0.610	)		(0.726	)		(0.772	)		-38.4	%
Interest credited		0.145			0.177			0.237			0.207			0.203			40.0	%
Sales inducements deferred		0.016			0.019			0.019			0.021			0.019			18.8	%
Balance as of End-of-Period (Gross)		17.854			18.596			19.766			19.940			20.042			12.3	%
Reinsurance ceded		(1.094	)		(1.065	)		(1.049	)		(1.027	)		(1.011	)		7.6	%
Balance as of End-of-Period (Net of Ceded) (1)	$	16.760		$	17.531		$	18.717		$	18.913		$	19.031			13.6	%
Variable Annuities
Balance as of beginning-of-period	$	40.925		$	39.301		$	45.523		$	52.429		$	55.368			35.3	%
Gross deposits		0.827			0.851			1.063			1.266			1.138			37.6	%
Withdrawals and deaths		(0.993	)		(0.944	)		(0.977	)		(1.120	)		(1.215	)		-22.4	%
Net flows		(0.166	)		(0.093	)		0.086			0.146			(0.077	)		53.6	%
Transfers from fixed annuities		0.558			0.582			0.609			0.726			0.772			38.4	%
Investment increase and change in market value		(2.016	)		5.733			6.211			2.067			1.752			186.9	%
Balance as of End-of-Period (2)	$	39.301		$	45.523		$	52.429		$	55.368		$	57.815			47.1	%
Total Annuities
Balance as of beginning-of-period	$	58.580		$	57.155		$	64.119		$	72.195		$	75.308			28.6	%
Gross deposits		2.188			2.625			3.088			2.461			2.276			4.0	%
Withdrawals and deaths		(1.758	)		(1.590	)		(1.478	)		(1.643	)		(1.701	)		3.2	%
Net flows		0.430			1.035			1.610			0.818			0.575			33.7	%
Transfers between fixed and variable accounts		-			-			(0.001	)		-			-		NM
Interest credited and change in market value		(1.871	)		5.910			6.448			2.274			1.955			204.5	%
Sales inducements deferred		0.016			0.019			0.019			0.021			0.019			18.8	%
Balance as of End-of-Period (Gross)		57.155			64.119			72.195			75.308			77.857			36.2	%
Reinsurance ceded		(1.094	)		(1.065	)		(1.049	)		(1.027	)		(1.011	)		7.6	%
Balance as of End-of-Period (Net of Ceded)	$	56.061		$	63.054		$	71.146		$	74.281		$	76.846			37.1	%
Variable Annuities Under Agreement - Included Above	$	0.069		$	0.076		$	0.082		$	0.082		$	0.082			18.8	%
Incremental Deposits: (3)
Fixed annuities	$	1.358		$	1.774		$	2.023		$	1.194		$	1.137			-16.3	%
Variable annuities		0.824			0.849			1.059			1.263			1.134			37.6	%
Total Incremental Deposits	$	2.182		$	2.623		$	3.082		$	2.457		$	2.271			4.1	%

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

3/31/2010																PAGE 16
Retirement Solutions - Annuities
Account Value Information
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion of Variable
Contracts
Deposits	$	0.235		$	0.248		$	0.414		$	0.082		$	0.087			-63.0	%
Withdrawals and deaths		(0.397	)		(0.328	)		(0.283	)		(0.299	)		(0.264	)		33.5	%
Net flows	$	(0.162	)	$	(0.080	)	$	0.131		$	(0.217	)	$	(0.177	)		-9.3	%
Gross fixed contract account values	$	8.959		$	8.981		$	9.219		$	9.102		$	9.015			0.6	%
Reinsurance ceded		(1.094	)		(1.065	)		(1.049	)		(1.027	)		(1.011	)		7.6	%
Net fixed contract account values	$	7.865		$	7.916		$	8.170		$	8.075		$	8.004			1.8	%
Indexed Annuities
Deposits	$	0.367		$	0.651		$	0.846		$	0.318		$	0.324			-11.7	%
Withdrawals and deaths		(0.214	)		(0.187	)		(0.115	)		(0.120	)		(0.124	)		42.1	%
Net flows	$	0.153		$	0.464		$	0.731		$	0.198		$	0.200			30.7	%
Indexed Annuity Account Values	$	5.195		$	5.716		$	6.557		$	6.839		$	7.131			37.3	%
Fixed Portion of Variable Contracts
Deposits	$	0.759		$	0.875		$	0.765		$	0.795		$	0.727			-4.2	%
Withdrawals and deaths		(0.155	)		(0.131	)		(0.104	)		(0.103	)		(0.098	)		36.8	%
Net flows	$	0.604		$	0.744		$	0.661		$	0.692		$	0.629			4.1	%
Fixed Portion of Variable Contract Account Values	$	3.699		$	3.899		$	3.990		$	3.999		$	3.896			5.3	%
Variable Annuities, Including Fixed Portion of
Variable Contracts
Deposits	$	1.586		$	1.726		$	1.829		$	2.060		$	1.865			17.6	%
Withdrawals and deaths		(1.148	)		(1.075	)		(1.082	)		(1.222	)		(1.313	)		-14.4	%
Net flows	$	0.438		$	0.651		$	0.747		$	0.838		$	0.552			26.0	%
Variable Contract Account Values	$	43.000		$	49.422		$	56.419		$	59.367		$	61.711			43.5	%
Average Daily Variable Annuity Separate Account
Values	$	39.035		$	43.828		$	49.135		$	54.013		$	55.809			43.0	%

3/31/2010																PAGE 17
Retirement Solutions - Annuities
Interest Rate Spread Information, GLB Expense Assessments,
GLB Attributed Fee and GLB Account Values by Type
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
																(Basis Point)
Interest Rate Spread (1)																Change
Fixed maturity securities, mortgage loans on real estate
and other, net of investment expenses (2)		5.28	%		5.44	%		5.68	%		5.59	%		5.63	%		35
Commercial mortgage loan prepayment and bond
make whole premiums		0.00	%		0.01	%		0.02	%		0.08	%		0.02	%		2
Alternative investments		-0.01	%		0.00	%		0.01	%		0.00	%		0.00	%		1
Net investment income yield on reserves		5.27	%		5.45	%		5.71	%		5.67	%		5.65	%		38
Interest rate credited to contract holders		3.85	%		3.81	%		3.80	%		3.65	%		3.52	%		(33	)
Interest rate spread		1.42	%		1.64	%		1.91	%		2.02	%		2.13	%		71
Variable Annuity Expense Assessments
(in millions) (3)	$	213.8		$	234.6		$	265.7		$	287.4		$	300.8			40.7	%
GLB Expense Assessments (in millions) (4)	$	47.9		$	50.6		$	54.7		$	58.9		$	63.6			32.8	%
Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenues and
income (loss) from operations (5)	$	16.2		$	16.9		$	17.5		$	18.6		$	22.8			40.7	%
Attributed fee excluded from operating revenues
and income (loss) from operations (6)		25.5			30.6			34.3			37.9			28.9			13.3	%
Total Attributed Fees on GLB	$	41.7		$	47.5		$	51.8		$	56.5		$	51.7			24.0	%
GLB Account Values by Type
Guaranteed withdrawal benefits (7)	$	14.910		$	17.973		$	21.462		$	23.500		$	25.179			68.9	%
Guaranteed income benefits (8)		6.623			7.708			8.835			9.333			9.851			48.7	%
Total GLB Account Values	$	21.533		$	25.681		$	30.297		$	32.833		$	35.030			62.7	%

(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 invested assets on reserves.  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 before DSI amortization, plus the imme diate 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.
(2)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets.  The increased cash and short-term investment balances for the three months ended March 2009, June 2009, September 2009, and December 2009 reduced our yields by approximately 40 bps, 33 bps, 3 bps and 5 bps, respectively.  There was no impact for the three months ended March 2010.
(3)	Comprised of the variable annuity expense assessments included in the expense assessments line item on page 13 and the amounts presented in the components of attributed fees on GLB, as described in footnotes 5 and 6 and disclosed above.
(4)	Comprised of the GLB expense assessments included in the expense assessments line item on page 13 and the amounts presented in the components of attributed fees on GLB, as described in footnotes 5 and 6 and disclosed above.
(5)	Includes the risk/profit margin portion of the GLB attributed rider fees in operating realized gain (loss) and the amount reported in expense assessments.  See note (2) on page 6 for further discussion.
(6)	Includes the net valuation premium of the GLB attributed rider fees in excluded realized gain (loss).  See note (5) on page 6 for further discussion.
(7)	Guaranteed withdrawal benefits include features that offer the contract holder a guarantee equal to the initial deposit (or contract value, if elected after issue), adjusted for any subsequent purchase payments or withdrawals.
(8)	For our guaranteed income benefits, we offer other product riders allowing variable annuity contract holders access and control during the income distribution phase of their contract.  This added flexibility allows the contract holder to access the account value for transfers, additional withdrawals and other service features, such as portfolio rebalancing.

3/31/2010																PAGE 18
Retirement Solutions - Defined Contribution
Income Statements, Operational Data and DAC, VOBA and DSI Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Operating Revenues
Surrender charges	$	1.0		$	1.3		$	1.3		$	0.9		$	1.1			10.0	%
Expense assessments		39.6			43.4			46.5			48.8			49.1			24.0	%
Net investment income		175.5			175.6			189.8			190.6			186.2			6.1	%
Operating realized gain (1)		0.1			0.1			0.1			0.1			0.1			0.0	%
Other revenues and fees		2.3			3.1			2.9			3.3			4.0			73.9	%
Total Operating Revenues		218.5			223.5			240.6			243.7			240.5			10.1	%
Operating Expenses
Interest credited		111.5			112.0			110.9			111.1			110.4			-1.0	%
Benefits		(1.8	)		(0.7	)		(0.3	)		(0.2	)		2.0			211.1	%
Underwriting, acquisition, insurance and other    expenses		72.4			73.9			70.6			83.4			77.9			7.6	%
Total Operating Expenses		182.1			185.2			181.2			194.3			190.3			4.5	%
Income from operations before federal income tax   expense		36.4			38.3			59.4			49.4			50.2			37.9	%
Federal income tax expense		6.6			10.6			16.8			16.1			14.3			116.7	%
Income from Operations	$	29.8		$	27.7		$	42.6		$	33.3		$	35.9			20.5	%
Effective Tax Rate		18.1	%		27.7	%		28.3	%		32.6	%		28.5	%
Average Equity	$	1,009.7		$	1,050.0		$	1,025.2		$	1,040.8		$	1,058.1
Return on Average Equity		11.8	%		10.6	%		16.6	%		12.8	%		13.6	%
Income from Operations - Basis Points on
Average Account Values - Annualized		42			37			52			38			40			(2	)
Operating Realized Gain (1)
GLB (2)	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%
Total Operating Realized Gain	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	14.0		$	15.5		$	16.4		$	18.1		$	16.3			16.4	%
General and administrative expenses		53.6			53.7			53.3			59.2			52.9			-1.3	%
Taxes, licenses and fees		3.6			3.0			2.7			2.9			3.8			5.6	%
Total commissions and expenses incurred		71.2			72.2			72.4			80.2			73.0			2.5	%
Less: commissions and expenses capitalized		(18.3	)		(17.0	)		(15.4	)		(17.9	)		(15.9	)		13.1	%
Amortization of DAC and VOBA, net of interest		19.5			18.7			13.6			21.1			20.8			6.7	%
Total Underwriting, Acquisition, Insurance
and Other Expenses	$	72.4		$	73.9		$	70.6		$	83.4		$	77.9			7.6	%
General and Administrative Expenses - Basis Points
on Average Account Values - Annualized (3)		76			71			65			68			59			(17	)
DAC and VOBA
Balance as of beginning-of-period	$	883.3		$	918.2		$	762.7		$	550.4		$	537.7
Deferrals		18.3			17.0			15.4			17.9			15.9
Amortization, net of interest:
Unlocking		(2.2	)		0.1			7.8			0.1			(1.4	)
Amortization, net of interest, excluding unlocking		(17.3	)		(18.8	)		(21.4	)		(21.2	)		(19.4	)
Deferrals, net of amortization included in operating
underwriting, acquisition, insurance and other    expenses		(1.2	)		(1.7	)		1.8			(3.2	)		(4.9	)
Amortization, net of interest, associated with benefit
ratio unlocking		1.6			(2.0	)		(1.1	)		(0.2	)		(0.4	)
Adjustment related to realized losses		2.5			5.6			2.3			0.8			0.4
Adjustment related to unrealized (gains) losses		32.0			(157.4	)		(215.3	)		(10.1	)		(70.7	)
Balance as of End-of-Period	$	918.2		$	762.7		$	550.4		$	537.7		$	462.1
DSI
Balance as of beginning-of-period	$	2.0		$	2.2		$	2.5		$	2.6		$	2.7
Deferrals		0.3			0.4			0.2			0.1			0.1
Amortization, net of interest:
Unlocking		-			-			0.1			-			-
Amortization, net of interest, excluding unlocking		(0.1	)		(0.1	)		(0.2	)		(0.1	)		(0.1	)
Deferrals, net of amortization included in operating
interest credited		0.2			0.3			0.1			-			-
Adjustment related to realized losses		-			-			-			0.1			-
Adjustment related to unrealized gains		-			-			-			-			(0.2	)
Balance as of End-of-Period	$	2.2		$	2.5		$	2.6		$	2.7		$	2.5

(1)	Included in income (loss) from operations.
(2)	See note (2) on page 6 for details.
(3)	Includes distribution costs.

3/31/2010																PAGE 19
Retirement Solutions - Defined Contribution
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Fixed Annuities
Balance as of beginning-of-period	$	11.638		$	11.924		$	12.070		$	12.158		$	12.246			5.2	%
Gross deposits		0.409			0.328			0.306			0.299			0.316			-22.7	%
Withdrawals and deaths		(0.383	)		(0.326	)		(0.327	)		(0.368	)		(0.341	)		11.0	%
Net flows		0.026			0.002			(0.021	)		(0.069	)		(0.025	)	NM
Transfers from variable annuities		0.150			0.037			(0.003	)		0.044			0.090			-40.0	%
Interest credited		0.110			0.107			0.112			0.113			0.109			-0.9	%
Balance as of End-of-Period  (1)	$	11.924		$	12.070		$	12.158		$	12.246		$	12.420			4.2	%
Variable Annuities
Balance as of beginning-of-period	$	10.588		$	9.721		$	11.102		$	12.620		$	12.953			22.3	%
Gross deposits		0.418			0.368			0.387			0.413			0.441			5.5	%
Withdrawals and deaths		(0.412	)		(0.416	)		(0.471	)		(0.589	)		(0.637	)		-54.6	%
Net flows		0.006			(0.048	)		(0.084	)		(0.176	)		(0.196	)	NM
Transfers to fixed annuities		(0.166	)		(0.019	)		0.021			(0.012	)		(0.022	)		86.7	%
Investment increase and change in market value		(0.707	)		1.448			1.581			0.521			0.515			172.8	%
Balance as of End-of-Period (2)	$	9.721		$	11.102		$	12.620		$	12.953		$	13.250			36.3	%
Total Annuities
Balance as of beginning-of-period	$	22.226		$	21.645		$	23.172		$	24.778		$	25.199			13.4	%
Gross deposits		0.827			0.696			0.693			0.712			0.757			-8.5	%
Withdrawals and deaths		(0.795	)		(0.742	)		(0.798	)		(0.957	)		(0.978	)		-23.0	%
Net flows		0.032			(0.046	)		(0.105	)		(0.245	)		(0.221	)	NM
Transfers between fixed and variable accounts		(0.016	)		0.018			0.018			0.032			0.068		NM
Interest credited and change in market value		(0.597	)		1.555			1.693			0.634			0.624			204.5	%
Balance as of End-of-Period	$	21.645		$	23.172		$	24.778		$	25.199		$	25.670			18.6	%
Alliance and Smart Future Mutual Funds
Balance as of beginning-of-period	$	6.652		$	6.848		$	8.155		$	9.544		$	10.103			51.9	%
Plan/participant rollovers		0.338			0.071			0.057			0.086			0.103			-69.5	%
Additional contributions		0.396			0.363			0.353			0.360			0.447			12.9	%
Gross deposits		0.734			0.434			0.410			0.446			0.550			-25.1	%
Withdrawals and deaths		(0.109	)		(0.132	)		(0.161	)		(0.263	)		(0.220	)	NM
Net flows		0.625			0.302			0.249			0.183			0.330			-47.2	%
Transfers		-			(0.008	)		(0.003	)		(0.032	)		(0.063	)	NM
Other (3)		-			-			-			-			0.186		NM
Interest credited and change in market value		(0.429	)		1.013			1.143			0.408			0.473			210.3	%
Balance as of End-of-Period (4)	$	6.848		$	8.155		$	9.544		$	10.103		$	11.029			61.1	%
Total Annuities and Mutual Funds
Balance as of beginning-of-period	$	28.878		$	28.493		$	31.327		$	34.322		$	35.302			22.2	%
Gross deposits		1.561			1.130			1.103			1.158			1.307			-16.3	%
Withdrawals and deaths		(0.904	)		(0.874	)		(0.959	)		(1.220	)		(1.198	)		-32.5	%
Net flows		0.657			0.256			0.144			(0.062	)		0.109			-83.4	%
Transfers		(0.016	)		0.010			0.015			-			0.005			131.3	%
Other (3)		-			-			-			-			0.186		NM
Interest credited and change in market value		(1.026	)		2.568			2.836			1.042			1.097			206.9	%
Balance as of End-of-Period	$	28.493		$	31.327		$	34.322		$	35.302		$	36.699			28.8	%
Variable Annuities Under Agreement - Included Above	$	0.007		$	0.008		$	0.009		$	0.009		$	0.009			28.6	%
Incremental Deposits: (5)
Fixed annuities	$	0.407		$	0.327		$	0.305		$	0.298		$	0.315			-22.6	%
Variable annuities		0.418			0.367			0.387			0.413			0.440			5.3	%
Total annuities incremental deposits		0.825			0.694			0.692			0.711			0.755			-8.5	%
Total Alliance mutual funds incremental deposits		0.734			0.434			0.410			0.446			0.550			-25.1	%
Total Incremental Deposits	$	1.559		$	1.128		$	1.102		$	1.157		$	1.305			-16.3	%

(1)	Includes fixed annuity products offered under our mutual fund products and the fixed portion of variable annuities.
(2)	Excludes the fixed portion of variable annuities.
(3)	Represents LINCOLN ALLIANCE® program assets held by a third-party trustee that were not previously included in the account value roll forward. Effective January 1, 2010, all such LINCOLN ALLIANCE® program activity was included in the account value roll forward.
(4)	Includes mutual fund account values and other third party trustee-held assets as mentioned in footnote three. These items are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.
(5)	Represents gross deposits reduced by transfers from other Lincoln products.

3/31/2010																PAGE 20
Retirement Solutions - Defined Contribution
Account Value Roll Forwards by Product
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Total Micro - Small Segment
Balance as of beginning-of-period	$	4.888		$	4.710		$	5.234		$	5.785		$	5.863			19.9	%
Gross deposits		0.306			0.256			0.290			0.305			0.342			11.8	%
Withdrawals and deaths		(0.266	)		(0.268	)		(0.319	)		(0.420	)		(0.422	)		-58.6	%
Net flows		0.040			(0.012	)		(0.029	)		(0.115	)		(0.080	)	NM
Transfers between fixed and variable accounts		(0.004	)		-			-			0.002			(0.001	)		75.0	%
Investment increase and change in market value		(0.214	)		0.536			0.580			0.191			0.184			186.0	%
Balance as of End-of-Period	$	4.710		$	5.234		$	5.785		$	5.863		$	5.966			26.7	%
Total Mid - Large Segment
Balance as of beginning-of-period	$	9.540		$	9.920		$	11.425		$	12.972		$	13.653			43.1	%
Gross deposits		1.026			0.661			0.617			0.650			0.769			-25.0	%
Withdrawals and deaths		(0.233	)		(0.211	)		(0.259	)		(0.407	)		(0.350	)		-50.2	%
Net flows		0.793			0.450			0.358			0.243			0.419			-47.2	%
Transfers between fixed and variable accounts		(0.013	)		0.010			0.016			(0.001	)		0.006			146.2	%
Other (1)		-			-			-			-			0.186		NM
Investment increase and change in market value		(0.400	)		1.045			1.173			0.439			0.503			225.8	%
Balance as of End-of-Period	$	9.920		$	11.425		$	12.972		$	13.653		$	14.767			48.9	%
Total Multi-Fund® and Other Variable Annuities
Balance as of beginning-of-period	$	14.450		$	13.863		$	14.668		$	15.565		$	15.786			9.2	%
Gross deposits		0.229			0.213			0.196			0.203			0.196			-14.4	%
Withdrawals and deaths		(0.405	)		(0.395	)		(0.381	)		(0.393	)		(0.426	)		-5.2	%
Net flows		(0.176	)		(0.182	)		(0.185	)		(0.190	)		(0.230	)		-30.7	%
Transfers between fixed and variable accounts		0.001			-			(0.001	)		(0.001	)		-			-100.0	%
Investment increase and change in market value		(0.412	)		0.987			1.083			0.412			0.410			199.5	%
Balance as of End-of-Period	$	13.863		$	14.668		$	15.565		$	15.786		$	15.966			15.2	%
Total Annuities and Mutual Funds
Balance as of beginning-of-period	$	28.878		$	28.493		$	31.327		$	34.322		$	35.302			22.2	%
Gross deposits		1.561			1.130			1.103			1.158			1.307			-16.3	%
Withdrawals and deaths		(0.904	)		(0.874	)		(0.959	)		(1.220	)		(1.198	)		-32.5	%
Net flows		0.657			0.256			0.144			(0.062	)		0.109			-83.4	%
Transfers between fixed and variable accounts		(0.016	)		0.010			0.015			-			0.005			131.3	%
Other (1)		-			-			-			-			0.186		NM
Investment increase and change in market value		(1.026	)		2.568			2.836			1.042			1.097			206.9	%
Balance as of End-of-Period (2)	$	28.493		$	31.327		$	34.322		$	35.302		$	36.699			28.8	%

(1)	Represents LINCOLN ALLIANCE® program assets held by a third-party trustee that were not previously included in the account value roll forward. Effective January 1, 2010, all such LINCOLN ALLIANCE® program activity was included in the account value roll forward.
(2)	Includes mutual fund account values and other trustee-held assets as mentioned in footnote one. These items are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.

3/31/2010																PAGE 21
Retirement Solutions - Defined Contribution
Account Value and Interest Rate Spread Information
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion of Variable
Contracts
Deposits	$	0.316		$	0.244		$	0.227		$	0.224		$	0.236			-25.3	%
Withdrawals and deaths		(0.185	)		(0.132	)		(0.149	)		(0.201	)		(0.174	)		5.9	%
Net flows	$	0.131		$	0.112		$	0.078		$	0.023		$	0.062			-52.7	%
Fixed Contract Account Values	$	5.773		$	5.879		$	6.030		$	6.139		$	6.324			9.5	%
Fixed Portion of Variable Contracts
Deposits	$	0.093		$	0.084		$	0.079		$	0.075		$	0.080			-14.0	%
Withdrawals and deaths		(0.198	)		(0.194	)		(0.178	)		(0.167	)		(0.167	)		15.7	%
Net flows	$	(0.105	)	$	(0.110	)	$	(0.099	)	$	(0.092	)	$	(0.087	)		17.1	%
Fixed Portion of Variable Contract Account Values	$	6.150		$	6.191		$	6.128		$	6.107		$	6.096			-0.9	%
Variable Annuities, Including Fixed Portion of
Variable Contracts
Deposits	$	0.511		$	0.452		$	0.466		$	0.488		$	0.521			2.0	%
Withdrawals and deaths		(0.610	)		(0.610	)		(0.649	)		(0.756	)		(0.804	)		-31.8	%
Net flows	$	(0.099	)	$	(0.158	)	$	(0.183	)	$	(0.268	)	$	(0.283	)	NM
Variable Contract Account Values	$	15.872		$	17.293		$	18.748		$	19.060		$	19.346			21.9	%
Average Daily Variable Annuity Separate Account
Values	$	9.846		$	10.768		$	11.881		$	12.726		$	12.909			31.1	%
																(Basis Point)
Interest Rate Spread (1)																Change
Fixed maturity securities, mortgage loans on real estate
and other, net of investment expenses (2)		5.70	%		5.79	%		5.85	%		5.72	%		5.71	%		1
Commercial mortgage loan prepayment and bond make
whole premiums		0.00	%		0.01	%		0.08	%		0.08	%		0.01	%		1
Alternative investments		-0.01	%		-0.02	%		0.03	%		0.02	%		0.02	%		3
Net investment income yield on reserves		5.69	%		5.78	%		5.96	%		5.82	%		5.74	%		5
Interest rate credited to contract holders		3.78	%		3.73	%		3.66	%		3.63	%		3.58	%		(20	)
Interest rate spread		1.91	%		2.05	%		2.30	%		2.19	%		2.16	%		25

(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 invested assets on reserves.  We exclude net investment income earned on investments supporting statutory surplus from our spread calculations.  The average crediting rate is calculated as interest credited before DSI amortization, plus the immediate annuity reserve change (included within benefits), divided by the average fixed account values, including the fix ed portion of variable annuities.

(2)

Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets.  The increased cash and short-term investment balances for the three months ended March 2009, June 2009, September 2009, and December 2009 reduced our yields by approximately 16 bps, 18 bps, 11 bps and 6 bps, respectively.  There was no impact for the three months ended March 2010.

3/31/2010																PAGE 22
Insurance Solutions - Life Insurance
Income Statements, Operational Data and DAC, VOBA and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Operating Revenues
Insurance premiums	$	90.5		$	93.3		$	93.5		$	115.2		$	112.3			24.1	%
Surrender charges		21.6			26.7			32.8			30.5			30.8			42.6	%
Mortality assessments		344.1			320.0			317.1			317.6			317.9			-7.6	%
Expense assessments		116.5			103.0			144.1			127.4			128.7			10.5	%
Net investment income		497.7			453.3			495.3			528.2			530.1			6.5	%
Amortization of deferred loss on business sold
through reinsurance		-			(0.7	)		(0.7	)		1.4			-		NM
Other revenues and fees		5.8			6.6			7.0			5.6			8.0			37.9	%
Total Operating Revenues		1,076.2			1,002.2			1,089.1			1,125.9			1,127.8			4.8	%
Operating Expenses
Interest credited		302.8			290.8			292.9			297.7			296.9			-1.9	%
Benefits		355.7			323.0			320.7			374.6			398.9			12.1	%
Underwriting, acquisition, insurance and other   expenses		224.0			191.7			283.9			221.5			230.0			2.7	%
Total Operating Expenses		882.5			805.5			897.5			893.8			925.8			4.9	%
Income from operations before federal income tax   expense		193.7			196.7			191.6			232.1			202.0			4.3	%
Federal income tax expense		51.5			63.8			55.1			74.5			65.3			26.8	%
Income from Operations	$	142.2		$	132.9		$	136.5		$	157.6		$	136.7			-3.9	%
Effective Tax Rate		26.6	%		32.4	%		28.8	%		32.1	%		32.3	%
Average Equity	$	8,235.3		$	7,980.9		$	8,053.3		$	8,348.8		$	8,254.0
Return on Average Equity		6.9	%		6.7	%		6.8	%		7.6	%		6.6	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	176.9		$	141.9		$	159.0		$	197.8		$	167.1			-5.5	%
General and administrative expenses		110.2			109.5			112.5			122.4			106.9			-3.0	%
Taxes, licenses and fees		33.3			22.9			30.7			28.5			32.2			-3.3	%
Amortization of sales force intangibles		1.0			1.0			1.0			1.0			1.0			0.0	%
Total commissions and expenses incurred		321.4			275.3			303.2			349.7			307.2			-4.4	%
Less: commissions and expenses capitalized		(224.5	)		(197.5	)		(213.4	)		(264.2	)		(223.0	)		0.7	%
Amortization of DAC and VOBA, net of interest		127.1			113.9			194.1			136.0			145.8			14.7	%
Total Underwriting, Acquisition, Insurance
and Other Expenses	$	224.0		$	191.7		$	283.9		$	221.5		$	230.0			2.7	%
General and Administrative Expenses - Basis Points
on Average Account Values - Annualized		139			144			145			155			134			(5	)
DAC and VOBA
Balance as of beginning-of-period	$	7,399.4		$	7,280.9		$	6,846.9		$	6,189.4		$	6,427.9
Business sold through reinsurance		(292.9	)		-			-			-			-
Deferrals		224.5			197.5			213.4			264.2			223.0
Amortization, net of interest:
Unlocking		(12.6	)		(5.5	)		(52.8	)		(3.7	)		(14.7	)
Other amortization, net of interest, excluding unlocking		(114.5	)		(108.4	)		(141.3	)		(132.3	)		(131.1	)
Deferrals, net of amortization included in operating
underwriting, acquisition, insurance and other expenses		97.4			83.6			19.3			128.2			77.2
Adjustment related to realized losses		20.0			41.1			1.7			38.3			2.5
Adjustment related to unrealized (gains) losses		57.0			(558.7	)		(678.5	)		72.0			(222.6	)
Balance as of End-of-Period	$	7,280.9		$	6,846.9		$	6,189.4		$	6,427.9		$	6,285.0
DFEL
Balance as of beginning-of-period	$	888.7		$	941.4		$	1,014.0		$	1,057.8		$	1,155.2
Business sold through reinsurance		(11.0	)		-			-			-			-
Deferrals		96.9			100.3			108.2			133.8			118.3
Amortization, net of interest:
Unlocking		(2.9	)		(0.7	)		(27.9	)		(3.0	)		(8.1	)
Other amortization, net of interest, excluding unlocking		(32.1	)		(29.6	)		(37.7	)		(36.0	)		(38.5	)
Deferrals, net of amortization included in operating
expense assessments		61.9			70.0			42.6			94.8			71.7
Adjustment related to realized losses		0.9			2.4			0.3			3.1			0.1
Adjustment related to unrealized gains (losses)		0.9			0.2			0.9			(0.5	)		(73.0	)
Balance as of End-of-Period	$	941.4		$	1,014.0		$	1,057.8		$	1,155.2		$	1,154.0

3/31/2010																PAGE 23
Insurance Solutions - Life Insurance
Operational Data and Account Value Roll Forwards
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Sales by Product (in millions)
UL
Excluding MoneyGuard®	$	102.7		$	84.9		$	91.0		$	117.7		$	90.1			-12.3	%
MoneyGuard®		11.0			14.3			18.4			23.3			18.5			68.2	%
Total		113.7			99.2			109.4			141.0			108.6			-4.5	%
VUL		9.0			7.1			6.7			13.3			7.7			-14.4	%
COLI and BOLI (1)		11.7			4.7			14.4			20.7			6.8			-41.9	%
Term/Whole Life		10.8			12.7			15.7			19.8			19.5			80.6	%
Total	$	145.2		$	123.7		$	146.2		$	194.8		$	142.6			-1.8	%
First Year Paid Premiums (in millions)
UL
Excluding MoneyGuard®	$	230.5		$	216.2		$	238.3		$	329.5		$	262.5			13.9	%
MoneyGuard®		73.1			94.9			122.1			154.4			122.4			67.4	%
Total		303.6			311.1			360.4			483.9			384.9			26.8	%
VUL		25.2			20.1			10.2			38.6			17.1			-32.1	%
COLI and BOLI (1)		52.0			16.1			33.8			46.9			11.9			-77.1	%
Term/Whole Life		18.8			23.0			28.2			37.3			19.1			1.6	%
Total	$	399.6		$	370.3		$	432.6		$	606.7		$	433.0			8.4	%
Life Insurance In Force
UL and other	$	288.826		$	288.632		$	289.124		$	291.879		$	292.204			1.2	%
Term insurance		236.408			238.901			242.889			248.726			254.115			7.5	%
Total	$	525.234		$	527.533		$	532.013		$	540.605		$	546.319			4.0	%
Interest-Sensitive Life
Balance as of beginning-of-period	$	27.502		$	27.617		$	27.709		$	27.825		$	28.192			2.5	%
Deposits		0.815			0.840			0.899			1.067			0.910			11.7	%
Withdrawals and deaths		(0.358	)		(0.391	)		(0.417	)		(0.296	)		(0.367	)		-2.5	%
Net flows		0.457			0.449			0.482			0.771			0.543			18.8	%
Contract holder assessments		(0.631	)		(0.645	)		(0.657	)		(0.698	)		(0.673	)		-6.7	%
Interest credited		0.289			0.288			0.291			0.294			0.293			1.4	%
Balance as of End-of-Period (Gross) (2)		27.617			27.709			27.825			28.192			28.355			2.7	%
Reinsurance ceded		(0.938	)		(0.930	)		(0.923	)		(0.917	)		(0.911	)		2.9	%
Balance as of End-of-Period (Net of Ceded) (2)	$	26.679		$	26.779		$	26.902		$	27.275		$	27.444			2.9	%
VUL
Balance as of beginning-of-period	$	4.251		$	3.992		$	4.562		$	5.176		$	5.287			24.4	%
Deposits		0.243			0.180			0.174			0.233			0.167			-31.3	%
Withdrawals and deaths		(0.143	)		(0.089	)		(0.095	)		(0.243	)		(0.108	)		24.5	%
Net flows		0.100			0.091			0.079			(0.010	)		0.059			-41.0	%
Contract holder assessments		(0.094	)		(0.088	)		(0.091	)		(0.092	)		(0.090	)		4.3	%
Investment income and change in market value		(0.265	)		0.567			0.626			0.213			0.211			179.6	%
Balance as of End-of-Period (Gross)		3.992			4.562			5.176			5.287			5.467			36.9	%
Reinsurance ceded		(0.640	)		(0.719	)		(0.807	)		(0.820	)		(0.837	)		-30.8	%
Balance as of End-of-Period (Net of Ceded)	$	3.352		$	3.843		$	4.369		$	4.467		$	4.630			38.1	%
Total Life Insurance
Balance as of beginning-of-period	$	31.753		$	31.609		$	32.271		$	33.001		$	33.479			5.4	%
Deposits		1.058			1.020			1.073			1.300			1.077			1.8	%
Withdrawals and deaths		(0.501	)		(0.480	)		(0.512	)		(0.539	)		(0.475	)		5.2	%
Net flows		0.557			0.540			0.561			0.761			0.602			8.1	%
Contract holder assessments		(0.725	)		(0.733	)		(0.748	)		(0.790	)		(0.763	)		-5.2	%
Investment income and change in market value		0.024			0.855			0.917			0.507			0.504		NM
Balance as of End-of-Period (Gross)		31.609			32.271			33.001			33.479			33.822			7.0	%
Reinsurance ceded		(1.578	)		(1.649	)		(1.730	)		(1.737	)		(1.748	)		-10.8	%
Balance as of End-of-Period (Net of Ceded)	$	30.031		$	30.622		$	31.271		$	31.742		$	32.074			6.8	%
																(Basis Point)
Interest-Sensitive Products Interest Rate Spreads (3)																Change
Fixed maturity securities, mortgage loans on real
estate and other, net of investment expenses (4)		5.83	%		6.03	%		5.97	%		5.88	%		5.82	%		(1	)
Commercial mortgage loan prepayment and bond make whole premiums		0.00	%		0.06	%		0.04	%		0.07	%		0.05	%		5
Alternative investments		-0.06	%		-0.71	%		-0.29	%		0.05	%		0.18	%		24
Net investment income yield on reserves		5.77	%		5.38	%		5.72	%		6.00	%		6.05	%		28
Interest rate credited to contract holders		4.25	%		4.20	%		4.22	%		4.25	%		4.18	%		(7	)
Interest rate spread		1.52	%		1.18	%		1.50	%		1.75	%		1.87	%		35
Traditional Products Interest Rate Spreads (5)
Fixed maturity securities, mortgage loans on real
estate and other, net of investment expenses		6.00	%		5.96	%		5.98	%		6.01	%		6.23	%		23
Commercial mortgage loan prepayment and bond make whole premiums		0.01	%		0.01	%		0.01	%		0.00	%		0.00	%		(1	)
Alternative investments		-0.01	%		-0.01	%		0.02	%		0.01	%		0.02	%		3
Net investment income yield on reserves		6.00	%		5.96	%		6.01	%		6.02	%		6.25	%		25

(1)	COLI and BOLI are interest-sensitive and contain both UL and VUL products.
(2)	Includes UL, interest-sensitive whole life and the fixed investment option of VUL products.
(3)	For the interest-sensitive 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.
(4)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets. The increased cash and short-term investment balances for the three months ended March 2009, September 2009, December 2009 and March 2010 reduced our yields by approximately 11 bps, 4 bps, 13 bps and 11 bps, respectively. There was no impact for the three months ended June 2009.
(5)	For the traditional life 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, 2010, interest-sensitive products represented approximately 87% of total interest-sensitive and traditional earning assets.

3/31/2010																PAGE 24
Insurance Solutions - Group Protection
Income Statements and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Operating Revenues
Insurance premiums	$	389.8		$	413.3		$	379.5		$	396.4		$	409.9			5.2	%
Mortality assessments		-			-			0.1			-			-		NM
Net investment income		30.1			28.1			33.5			35.7			33.6			11.6	%
Other revenues and fees		1.5			1.5			1.5			1.5			1.7			13.3	%
Total Operating Revenues		421.4			442.9			414.6			433.6			445.2			5.6	%
Operating Expenses
Interest credited		0.6			0.5			0.5			0.7			0.5			-16.7	%
Benefits		282.0			292.7			261.6			281.1			310.7			10.2	%
Underwriting, acquisition, insurance and other expenses		99.3			98.0			99.3			105.4			101.1			1.8	%
Total Operating Expenses		381.9			391.2			361.4			387.2			412.3			8.0	%
Income from operations before federal income tax expense		39.5			51.7			53.2			46.4			33.0			-16.5	%
Federal income tax expense		13.8			18.1			18.7			16.3			11.6			-15.9	%
Income from Operations	$	25.7		$	33.6		$	34.5		$	30.1		$	21.4			-16.7	%
Effective Tax Rate		34.9	%		35.0	%		35.2	%		35.1	%		35.2	%
Average Equity	$	1,014.7		$	1,047.5		$	1,056.8		$	1,061.7		$	1,075.0
Return on Average Equity		10.1	%		12.8	%		13.1	%		11.3	%		8.0	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	44.2		$	43.6		$	43.3		$	44.5		$	46.9			6.1	%
General and administrative expenses		47.4			48.2			48.1			60.0			46.9			-1.1	%
Taxes, licenses and fees		10.5			7.3			9.3			9.1			10.9			3.8	%
Total commissions and expenses incurred		102.1			99.1			100.7			113.6			104.7			2.5	%
Less: commissions and expenses capitalized		(13.2	)		(12.5	)		(12.8	)		(20.8	)		(14.6	)		-10.6	%
Amortization of DAC and VOBA, net of interest		10.4			11.4			11.4			12.6			11.0			5.8	%
Total Underwriting, Acquisition, Insurance
and Other Expenses	$	99.3		$	98.0		$	99.3		$	105.4		$	101.1			1.8	%
General and Administrative Expenses as a
Percentage of Premiums		12.2	%		11.7	%		12.7	%		15.1	%		11.4	%
DAC and VOBA
Balance as of beginning-of-period	$	145.9		$	148.7		$	149.8		$	151.2		$	159.5
Deferrals		13.2			12.5			12.8			20.9			14.6
Amortization, net of interest		(10.4	)		(11.4	)		(11.4	)		(12.6	)		(11.1	)
Deferrals, net of amortization included in operating
underwriting, acquisition, insurance and other expenses		2.8			1.1			1.4			8.3			3.5
Balance as of End-of-Period	$	148.7		$	149.8		$	151.2		$	159.5		$	163.0
Annualized Sales by Product Line
Life	$	22.7		$	21.1		$	31.4		$	67.2		$	24.0			5.7	%
Disability		23.5			29.3			38.5			78.3			28.8			22.6	%
Dental		8.1			9.1			9.9			21.3			10.3			27.2	%
Total	$	54.3		$	59.5		$	79.8		$	166.8		$	63.1			16.2	%
Insurance Premiums by Product Line
Life	$	142.4		$	147.4		$	142.2		$	152.1		$	157.2			10.4	%
Disability		174.0			171.1			173.0			174.1			178.3			2.5	%
Dental		37.5			37.2			36.2			37.7			39.5			5.3	%
Other		35.9			57.6			28.1			32.5			34.9			-2.8	%
Total	$	389.8		$	413.3		$	379.5		$	396.4		$	409.9			5.2	%
Income from Operations by Product Line
Life	$	0.6		$	12.5		$	16.0		$	13.3		$	3.4		NM
Disability		25.3			20.7			17.3			15.6			18.6			-26.5	%
Dental		(1.1	)		(1.5	)		(0.6	)		1.1			(1.8	)		-63.6	%
Other		0.9			1.9			1.8			0.1			1.2			33.3	%
Total	$	25.7		$	33.6		$	34.5		$	30.1		$	21.4			-16.7	%
Loss Ratios by Product Line
Life		81.6	%		70.3	%		66.6	%		69.6	%		82.4	%
Disability		59.1	%		62.4	%		66.8	%		67.5	%		65.5	%
Dental		84.2	%		86.1	%		79.7	%		76.6	%		86.1	%
Combined Loss Ratios		70.8	%		68.2	%		68.1	%		69.3	%		74.8	%

3/31/2010																PAGE 25
Other Operations
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Operating Revenues
Insurance premiums	$	0.8		$	2.7		$	0.1		$	0.4		$	(0.3	)	NM
Net investment income		69.7			69.8			81.1			86.5			85.4			22.5	%
Amortization of deferred gain on business sold
through reinsurance (1)		18.4			18.4			18.3			18.3			18.2			-1.1	%
Other revenues and fees		1.7			5.4			2.9			4.5			5.1			200.0	%
Communications revenues		14.8			19.1			17.2			16.7			15.5			4.7	%
Total Operating Revenues		105.4			115.4			119.6			126.4			123.9			17.6	%
Operating Expenses
Interest credited		50.9			31.4			32.9			32.8			33.6			-34.0	%
Benefits		106.6			36.0			36.0			79.0			34.1			-68.0	%
Underwriting, acquisition, insurance and other expenses		35.0			56.8			24.3			27.5			27.8			-20.6	%
Taxes, licenses and fees		1.5			3.1			(0.9	)		(20.2	)		1.5			0.0	%
Interest and debt expenses		64.7			60.9			68.0			68.1			68.1			5.3	%
Communications expenses		12.9			13.5			13.3			12.9			13.8			7.0	%
Total Operating Expenses		271.6			201.7			173.6			200.1			178.9			-34.1	%
Loss from operations before federal income tax benefit		(166.2	)		(86.3	)		(54.0	)		(73.7	)		(55.0	)		66.9	%
Federal income tax benefit		(57.7	)		(34.0	)		(21.4	)		(30.2	)		(18.4	)		68.1	%
Loss From Operations	$	(108.5	)	$	(52.3	)	$	(32.6	)	$	(43.5	)	$	(36.6	)		66.3	%
Run Off Institutional Pensions Account Values -
Balance at End-of-Period	$	1.931		$	1.928		$	1.931		$	1.911		$	1.909			-1.1	%

	Discontinued Operations
	Unaudited (in millions)
		For the Three Months Ended
		March		June			Sept.			Dec.		March			%
		2009		2009			2009			2009		2010			Change
Discontinued Operations Before Disposal
Income from discontinued operations before federal
income tax expense		$	13.2	$	27.0		$	27.3		$	7.2	$	(16.9	)	NM
Federal income tax expense			5.5		10.8			10.3			4.1		(2.6	)	NM
Income (Loss) From Discontinued Operations
Before Disposal			7.7		16.2			17.0			3.1		(14.3	)	NM
Disposal
Gain (loss) on disposal before federal income tax
expense (benefit)			-		(237.0	)		16.7			1.0		64.8		NM
Federal income tax expense (benefit)			-		(67.0	)		(38.3	)		-		22.6		NM
Gain (Loss) on Disposal			-		(170.0	)		55.0			1.0		42.2		NM
Income (Loss) From Discontinued Operations		$	7.7	$	(153.8	)	$	72.0		$	4.1	$	27.9			262.3	%

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

3/31/2010																PAGE 26
Consolidated Deposits, Account Balances and Net Flows
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Deposits
Retirement Solutions:
Annuities - fixed annuities (1)	$	1.361		$	1.774		$	2.025		$	1.195		$	1.138			-16.4	%
Defined Contribution - fixed annuities		0.409			0.328			0.306			0.299			0.316			-22.7	%
Annuities - variable annuities		0.827			0.851			1.063			1.266			1.138			37.6	%
Defined Contribution - variable products (2)		1.152			0.802			0.797			0.859			0.991			-14.0	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.815			0.840			0.899			1.067			0.910			11.7	%
VUL		0.243			0.180			0.174			0.233			0.167			-31.3	%
Total Deposits	$	4.807		$	4.775		$	5.264		$	4.919		$	4.660			-3.1	%
	As of
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Account Balances
Retirement Solutions:
Annuities - fixed annuities (1)	$	16.760		$	17.531		$	18.717		$	18.913		$	19.031			13.6	%
Defined Contribution - fixed annuities		11.924			12.070			12.158			12.246			12.420			4.2	%
Annuities - variable annuities		39.301			45.523			52.429			55.368			57.815			47.1	%
Defined Contribution - variable products (2)		16.569			19.257			22.164			23.056			24.279			46.5	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		26.679			26.779			26.902			27.275			27.444			2.9	%
VUL		3.352			3.843			4.369			4.467			4.630			38.1	%
Total Account Balances	$	114.585		$	125.003		$	136.739		$	141.325		$	145.619			27.1	%
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Net Flows
Retirement Solutions:
Annuities - fixed annuities (1)	$	0.596		$	1.128		$	1.524		$	0.672		$	0.652			9.4	%
Defined Contribution - fixed annuities		0.026			0.002			(0.021	)		(0.069	)		(0.025	)	NM
Annuities - variable annuities		(0.166	)		(0.093	)		0.086			0.146			(0.077	)		53.6	%
Defined Contribution - variable products (2)		0.631			0.254			0.165			0.007			0.134			-78.8	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.457			0.449			0.482			0.771			0.543			18.8	%
VUL		0.100			0.091			0.079			(0.010	)		0.059			-41.0	%
Total Net Flows	$	1.644		$	1.831		$	2.315		$	1.517		$	1.286			-21.8	%

(1)	Includes fixed portion of variable annuities.
(2)	Includes amounts attributable to mutual fund net flows. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.

3/31/2010																PAGE 27
Consolidated Investment Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2009			2009			2009			2009			2010			Change
Net Investment Income
Available-for-sale fixed maturity securities	$	824.9		$	854.6		$	904.7		$	903.4		$	905.5			9.8	%
Available-for-sale equity securities		1.7			1.8			1.8			2.2			1.8			5.9	%
Available-for-sale VIEs' fixed maturity securities		-			-			-			-			3.8		NM
Trading securities		39.6			39.0			40.0			40.2			39.4			-0.5	%
Mortgage loans on real estate		119.2			120.0			114.2			118.2			112.8			-5.4	%
Real estate		3.8			3.5			3.6			8.1			6.6			73.7	%
Policy loans		44.3			42.2			41.9			43.2			42.1			-5.0	%
Invested cash		8.3			4.1			1.0			1.6			1.4			-83.1	%
Other investments		(2.2	)		(67.4	)		(6.7	)		36.5			22.4		NM
Investment income		1,039.6			997.8			1,100.5			1,153.4			1,135.8			9.3	%
Investment expense		(26.3	)		(27.2	)		(29.2	)		(31.1	)		(29.7	)		-12.9	%
Net Investment Income	$	1,013.3		$	970.6		$	1,071.3		$	1,122.3		$	1,106.1			9.2	%
Average Invested Assets (Amortized Cost)	$	69,583.2		$	71,331.0		$	73,791.1		$	74,731.7		$	75,458.8
Ratio of Net Investment Income Over Average
Invested Assets		5.82	%		5.44	%		5.81	%		6.01	%		5.86	%
Realized Loss Related to Investments
Available-for-sale fixed maturity securities:
Gross gains	$	53.7		$	32.8		$	23.4		$	51.5		$	49.8			-7.3	%
Gross losses		(241.3	)		(172.1	)		(165.9	)		(129.3	)		(83.6	)		65.4	%
Equity securities:
Gross gains		3.1			0.5			0.5			1.5			0.1			-96.8	%
Gross losses		(2.6	)		(6.0	)		(7.8	)		(10.9	)		(3.5	)		-34.6	%
Gain (loss) on other investments		(2.1	)		(57.9	)		1.6			(72.0	)		(21.6	)	NM
Associated amortization of DAC, VOBA, DSI,
DFEL and changes in other contract holder funds
and funds withheld reinsurance liabilities		55.6			48.4			24.7			32.6			3.8			-93.2	%
Total realized loss on investments, excluding
trading securities		(133.6	)		(154.3	)		(123.5	)		(126.6	)		(55.0	)		58.8	%
Loss on certain derivative instruments		(16.5	)		(4.0	)		(12.1	)		(1.5	)		10.6			164.2	%
Total, pre-tax		(150.1	)		(158.3	)		(135.6	)		(128.1	)		(44.4	)		70.4	%
Income taxes		(52.5	)		(55.4	)		(47.6	)		(44.8	)		(15.6	)		70.3	%
Total, After-Tax	$	(97.6	)	$	(102.9	)	$	(88.0	)	$	(83.3	)	$	(28.8	)		70.5	%

	As of March 31, 2010					As of December 31, 2009
	Amount		% of Total			Amount		% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)	$	65,990.7		99.5	%	$	63,320.8		99.6	%
Fixed maturity securities (amortized cost)		64,504.7		99.4	%		63,097.0		99.4	%
Equity securities (fair value)		312.1		0.5	%		280.5		0.4	%
Equity securities (amortized cost)		378.6		0.6	%		383.7		0.6	%
% of Available-for-Sale Fixed Maturity Securities,
Based on Fair Value
Treasuries and AAA				20.1	%				19.3	%
AA or better				28.8	%				27.3	%
BB or less				6.1	%				6.9	%

General Account Investments	As of March 31, 2010					As of December 31, 2009
	Amount		% of Total			Amount		% of Total
Fixed Maturities - Security Sector:
Corporate bonds	$	47,446.2		74.8	%	$	45,860.3		75.4	%
U.S. Government bonds		198.3		0.3	%		194.2		0.3	%
Foreign government bonds		456.1		0.7	%		504.9		0.8	%
Mortgage-backed securities		11,365.4		17.9	%		11,103.3		18.3	%
State and municipal bonds		2,198.1		3.5	%		1,967.6		3.2	%
Preferred stocks - redeemable		1,216.7		1.9	%		1,188.0		2.0	%
VIEs		579.5		0.9	%		-		0.0	%
Total	$	63,460.3		100.0	%	$	60,818.3		100.0	%

	As of
	March		June		Sept.		Dec.		March		%
Composition of Investment Portfolio	2009		2009		2009		2009		2010		Change
Available-for-sale securities, at fair value:
Fixed maturity	$	48,535.5	$	55,049.8	$	60,666.2	$	60,818.3	$	62,880.8		29.6	%
Equity		175.7		236.3		283.0		278.4		310.0		76.4	%
VIEs' fixed maturity		-		-		-		-		579.5	NM
Trading securities		2,245.6		2,316.7		2,547.9		2,504.6		2,532.5		12.8	%
Mortgage loans on real estate and real estate		7,745.1		7,627.5		7,431.0		7,351.6		7,213.1		-6.9	%
Policy loans		2,905.6		2,896.9		2,893.0		2,897.8		2,902.8		-0.1	%
Derivative investments		2,226.1		1,233.8		1,282.0		1,010.1		992.4		-55.4	%
Other investments		1,476.2		1,187.1		1,079.6		1,057.2		1,046.4		-29.1	%
Total	$	65,309.8	$	70,548.1	$	76,182.7	$	75,918.0	$	78,457.5		20.1	%

EX-99.3

	Lincoln Financial Group
	Available-For-Sale (AFS) by Industry Classifications
	Amounts in Millions
		As of 3/31/2010												As of 12/31/2009
		Amortized		Unrealized		Unrealized			Fair		% Fair			Amortized		Unrealized		Unrealized			Fair		% Fair
AFS - Fixed Maturities		Cost		Gains		(Losses)			Value		Value			Cost		Gains		(Losses)			Value		Value
Corporate
Financial Services		$	8,471	$	334	$	(201	)	$	8,604		13.6	%	$	8,260	$	248	$	(341	)	$	8,167		13.3	%
	Basic Industry		2,291		141		(43	)		2,389		3.8	%		2,304		116		(57	)		2,363		3.9	%
	Capital Goods		3,172		173		(32	)		3,313		5.2	%		2,995		149		(26	)		3,118		5.1	%
	Communications		2,701		204		(40	)		2,865		4.5	%		2,817		200		(51	)		2,966		4.9	%
Consumer Cyclical			2,533		152		(56	)		2,629		4.1	%		2,589		141		(66	)		2,664		4.4	%
Consumer Non-Cyclical			6,137		411		(16	)		6,532		10.3	%		5,568		380		(16	)		5,932		9.8	%
	Energy		4,327		331		(12	)		4,646		7.3	%		4,251		290		(22	)		4,519		7.4	%
	Technology		1,192		83		(3	)		1,272		2.0	%		1,121		76		(4	)		1,193		2.0	%
	Transportation		1,183		77		(9	)		1,251		2.0	%		1,224		85		(15	)		1,294		2.1	%
	Industrial Other		697		44		(7	)		734		1.2	%		709		35		(11	)		733		1.2	%
	Utilities		9,221		494		(54	)		9,661		15.2	%		8,941		415		(81	)		9,275		15.2	%
ABS
	CDO / CLN [1]		130		14		(14	)		130		0.2	%		735		11		(296	)		450		0.7	%
	CRE CDO		53		-		(22	)		31		0.0	%		54		-		(24	)		30		0.0	%
	Credit Card [1]		831		25		(7	)		849		1.3	%		265		9		(9	)		265		0.4	%
	Home Equity		1,062		2		(356	)		708		1.1	%		1,099		1		(428	)		672		1.1	%
Manufactured Housing			119		1		(7	)		113		0.2	%		122		1		(11	)		112		0.2	%
	Auto Loan		218		5		-			223		0.4	%		220		5		-			225		0.4	%
	Other		221		17		(3	)		235		0.4	%		230		12		(3	)		239		0.4	%
CMBS
Non-Agency Backed			2,374		79		(318	)		2,135		3.4	%		2,436		49		(354	)		2,131		3.5	%
CMOs
	Agency Backed		4,276		287		(2	)		4,561		7.2	%		4,494		252		(23	)		4,723		7.8	%
Non-Agency Backed			1,812		8		(411	)		1,409		2.2	%		1,697		5		(454	)		1,248		2.1	%
Pass Thrus
	Agency Backed		3,163		71		(10	)		3,224		5.1	%		2,912		64		(14	)		2,962		4.9	%
Non-Agency Backed			66		-		(6	)		60		0.1	%		69		-		(8	)		61		0.1	%
Municipals
	Taxable		2,104		29		(28	)		2,105		3.3	%		1,900		13		(53	)		1,860		3.1	%
	Tax-Exempt		18		-		-			18		0.0	%		35		-		-			35		0.1	%
Government/Gov Agencies
	United States		1,106		92		(10	)		1,188		1.9	%		963		85		(14	)		1,034		1.7	%
	Foreign		1,327		60		(29	)		1,358		2.1	%		1,345		53		(39	)		1,359		2.2	%
Preferred Stock Redeemable & Hybrids			1,351		38		(172	)		1,217		1.9	%		1,402		36		(250	)		1,188		2.0	%
AFS - Fixed Maturities			62,156		3,172		(1,868	)		63,460		100.0	%		60,757		2,731		(2,670	)		60,818		100.0	%
AFS - Equities			377		29		(96	)		310					382		21		(125	)		278
Total AFS Securities			62,533		3,201		(1,964	)		63,770					61,139		2,752		(2,795	)		61,096
Trading Securities [2]			2,351		244		(63	)		2,532					2,342		243		(80	)		2,505
Total AFS & Trading Securities		$	64,884	$	3,445	$	(2,027	)	$	66,302				$	63,481	$	2,995	$	(2,875	)	$	63,601

[1]	Includes amortized cost of $566 million ABS Credit Card assets that were reclassed from the ABS CDO/CLN assets as a result of adopting ASU 2009-17 as of January 1, 2010. For additional information, please see the Notes to the Consolidated Financial Statements - Note 2 "Consolidation Topic" and Note 4 "Variable Interest Entities."
[2]	The trading securities support our Modco reinsurance agreements and the investment results are passed directly to the reinsurers.

Lincoln Financial Group
AFS - Exposure to Residential MBS ("RMBS") and Related Collateral
As of 03/31/2010
Amounts in Millions
	Total				Prime/Agency				Prime/Non-Agency				Alt-A				Subprime
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Type	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
RMBS	$	9,254	$	9,317	$	7,785	$	7,439	$	989	$	1,246	$	480	$	632	$	-	$	-
ABS		708		1,062		-		-		-		-		265		382		443		680
Total	$	9,962	$	10,379	$	7,785	$	7,439	$	989	$	1,246	$	745	$	1,014	$	443	$	680
Rating
AAA	$	8,470	$	8,184	$	7,768	$	7,423	$	332	$	347	$	163	$	182	$	207	$	232
AA		192		239		-		-		45		58		123		150		24		31
A		137		177		17		16		35		41		45		57		40		63
BBB		54		80		-		-		34		43		9		20		11		17
BB and below		1,109		1,699		-		-		543		757		405		605		161		337
Total	$	9,962	$	10,379	$	7,785	$	7,439	$	989	$	1,246	$	745	$	1,014	$	443	$	680
Origination Year
2004 and prior	$	3,606	$	3,609	$	2,749	$	2,582	$	349	$	387	$	285	$	345	$	223	$	295
2005		1,445		1,617		885		839		183		246		217		289		160		243
2006		727		926		312		294		159		195		198		299		58		138
2007		1,592		1,655		1,249		1,156		298		418		45		81		-		-
2008		343		322		343		322		-		-		-		-		-		-
2009		1,531		1,531		1,529		1,527		-		-		-		-		2		4
2010		718		719		718		719		-		-		-		-		-		-
Total	$	9,962	$	10,379	$	7,785	$	7,439	$	989	$	1,246	$	745	$	1,014	$	443	$	680

Note: This table does not include the fair value of trading securities totaling $242 million which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $242 million in trading securities consisted of $213 million prime, $16 million Alt-A, and $13 million subprime.

Lincoln Financial Group
AFS - RMBS and Related Collateral
As of 03/31/2010
Amounts in Millions
Prime
	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	3,098	$	2,969	$	3,042	$	2,891	$	27	$	35	$	26	$	26	$	1	$	3	$	2	$	14
2005		1,068		1,085		894		849		14		18		20		23		28		31		112		164
2006		471		489		325		306		4		5		-		-		5		9		137		169
2007		1,547		1,574		1,249		1,156		-		-		6		8		-		-		292		410
2008		343		322		343		322		-		-		-		-		-		-		-		-
2009		1,529		1,527		1,529		1,527		-		-		-		-		-		-		-		-
2010		718		719		718		719		-		-		-		-		-		-		-		-
Total	$	8,774	$	8,685	$	8,100	$	7,770	$	45	$	58	$	52	$	57	$	34	$	43	$	543	$	757
Alt-A
	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	285	$	345	$	130	$	141	$	87	$	106	$	43	$	55	$	9	$	20	$	16	$	23
2005		217		289		22		30		10		13		2		2		-		-		183		244
2006		198		299		11		11		26		31		-		-		-		-		161		257
2007		45		81		-		-		-		-		-		-		-		-		45		81
Total	$	745	$	1,014	$	163	$	182	$	123	$	150	$	45	$	57	$	9	$	20	$	405	$	605
Subprime
	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	223	$	295	$	151	$	165	$	24	$	31	$	8	$	16	$	2	$	7	$	38	$	76
2005		160		243		56		67		-		-		32		47		9		10		63		119
2006		58		138		-		-		-		-		-		-		-		-		58		138
2009		2		4		-		-		-		-		-		-		-		-		2		4
Total	$	443	$	680	$	207	$	232	$	24	$	31	$	40	$	63	$	11	$	17	$	161	$	337

Lincoln Financial Group
AFS - ABS - Consumer Loan
As of 03/31/2010
Amounts in Millions
	Total				Credit Card [1]				Auto Loans
	Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost
Rating
AAA	$	1,045	$	1,023	$	822	$	805	$	223	$	218
A		9		10		9		10		-		-
BBB		17		16		17		16		-		-
Total	$	1,071	$	1,049	$	848	$	831	$	223	$	218

[1]	Includes amortized cost of $566 million ABS Credit Card assets that were reclassed from the ABS CDO/CLN assets as a result of adopting ASU 2009-17 as of January 1, 2010. For additional information, please see the Notes to the Consolidated Financial Statements - Note 2 "Consolidation Topic" and Note 4 "Variable Interest Entities".
Note:	This table does not include the fair value of trading securities totaling $2 million which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $2 million in trading securities were credit card securities.

Lincoln Financial Group
AFS - CMBS
As of 03/31/2010
Amounts in Millions
	Total				Multiple Property				Single Property				CRE CDOs
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Type	Value		Cost		Value		Cost		Value		Cost		Value		Cost
CMBS	$	2,135	$	2,374	$	2,062	$	2,253	$	73	$	121	$	-	$	-
CRE CDOs		31		53		-		-		-		-		31		53
Total	$	2,166	$	2,427	$	2,062	$	2,253	$	73	$	121	$	31	$	53
Rating
AAA	$	1,523	$	1,462	$	1,477	$	1,411	$	36	$	36	$	10	$	15
AA		294		316		287		306		7		10		-		-
A		132		178		104		131		10		13		18		34
BBB		114		167		108		157		3		6		3		4
BB and below		103		304		86		248		17		56		-		-
Total	$	2,166	$	2,427	$	2,062	$	2,253	$	73	$	121	$	31	$	53
Origination Year
2004 and prior	$	1,455	$	1,515	$	1,392	$	1,447	$	50	$	53	$	13	$	15
2005		402		481		370		406		22		60		10		15
2006		167		261		158		230		1		8		8		23
2007		142		170		142		170		-		-		-		-
Total	$	2,166	$	2,427	$	2,062	$	2,253	$	73	$	121	$	31	$	53

Note: This table does not include the fair value of trading securities totaling $81 million which support our Modco reinsurance agreements since investment results for these agreements are passed directly to the reinsurers. The $81 million in trading securities consisted of $78 million CMBS and $3 million CRE CDOs.

Lincoln Financial Group
AFS - CMBS
As of 03/31/2010
Amounts in Millions
	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	1,455	$	1,515	$	1,044	$	1,011	$	246	$	266	$	96	$	112	$	16	$	26	$	53	$	100
2005		402		481		327		314		18		20		4		6		28		44		25		97
2006		167		261		79		74		21		20		15		29		44		72		8		66
2007		142		170		73		63		9		10		17		31		26		25		17		41
Total	$	2,166	$	2,427	$	1,523	$	1,462	$	294	$	316	$	132	$	178	$	114	$	167	$	103	$	304

Lincoln Financial Group
Commercial Mortgage Loan Portfolio, Net of Reserves
As of 03/31/2010
Amounts in Millions
LNC MORTGAGE LOAN DISTRIBUTION
Property Type	Amount		%			State	Amount		%
Office Building	$	2,394		34.1	%	CA	$	1,453		20.8	%
Industrial		1,868		26.6	%	TX		606		8.6	%
Retail		1,660		23.7	%	MD		423		6.0	%
Apartment		659		9.4	%	FL		317		4.5	%
Hotel/Motel		204		2.9	%	VA		315		4.5	%
Mixed Use		132		1.9	%	TN		305		4.3	%
Other Commercial		96		1.4	%	AZ		298		4.2	%
Total	$	7,013		100.0	%	WA		284		4.0	%
						NC		256		3.7	%
						GA		238		3.4	%
						IL		238		3.4	%
Geographic Region	Amount		%			PA		205		2.9	%
Pacific	$	1,842		26.3	%	NV		203		2.9	%
South Atlantic		1,688		24.1	%	OH		189		2.7	%
Mountain		699		10.0	%	IN		159		2.3	%
East North Central		675		9.6	%	MN		151		2.2	%
West South Central		641		9.1	%	NJ		140		2.0	%
Middle Atlantic		472		6.7	%	NY		127		1.8	%
East South Central		433		6.2	%	SC		124		1.8	%
West North Central		388		5.5	%	MA		121		1.7	%
New England		175		2.5	%	Below 2%		861		12.3	%
Total	$	7,013		100.0	%	Total	$	7,013		100.0	%

Lincoln Financial Group
Additional Disclosure of Insured Bonds and Direct Exposure
As of 03/31/2010
Amounts in Millions
	Direct		Insured		Total		Total		Total			Total
Monoline Name	Exposure [1]		Bonds [2]		Amortized Cost		Unrealized Gain		Unrealized (Loss) and OTTI			Fair Value
AMBAC	$	-	$	250	$	250	$	2	$	(66	)	$	186
ASSURED GUARANTY LTD		30		-		30		-		(10	)		20
FGIC		-		87		87		-		(29	)		58
FSA		-		60		60		-		(3	)		57
MBIA		12		150		162		11		(19	)		154
MGIC		11		6		17		-		(2	)		15
PMI GROUP INC		27		-		27		-		(14	)		13
RADIAN GROUP INC		19		-		19		-		(4	)		15
XL CAPITAL LTD		72		63		135		3		(14	)		124
Total	$	171	$	616	$	787	$	16	$	(161	)	$	642

	Additional direct exposure through Credit Default Swaps with a notional totaling $84 million is excluded from this table.
[1]
[2]	Additional indirect insured exposure through structured securities is excluded from this table. See "Credit-Linked Notes (CLN)" disclosure starting on page 191 of the 2009 Form 10-K.
Note:	This table does not include the fair value of trading securities totaling $30 million which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $30 million in trading securities consisted of $10 million of Direct Exposure and $20 million of Insured Exposure. This table also excludes insured exposure totaling $12 million for a guaranteed investment tax credit partnership.