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

November 2, 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 November 2, 2010, the registrant issued a press release announcing its financial results for the quarter ended September 30, 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 September 30, 2010, is attached as Exhibit 99.2 and is incorporated herein by reference, and a general account supplement as of September 30, 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 November 2, 2010, announcing Lincoln National Corporation’s financial results for the quarter ended September 30, 2010.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended September 30, 2010.
99.3	Lincoln National Corporation General Account Supplement as of September 30, 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:  November 2, 2010

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release dated November 2, 2010, announcing Lincoln National Corporation’s financial results for the quarter ended September 30, 2010.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended September 30, 2010.
99.3	Lincoln National Corporation General Account Supplement as of September 30, 2010.

EX-99.1

                         NEWS RELEASE

Lincoln Financial Group Reports Third Quarter 2010 Results

_____________________________________________

Consolidated Deposits of $5.5 Billion Benefit from Strong Retirement Product Sales

Total Account Balances Rise 10% to $150 billion Reflecting Positive Flows and Improved Markets

Philadelphia, PA, November 2, 2010 – Lincoln Financial Group (NYSE:LNC) today reported net income for the third quarter of 2010 of $246 million, or $0.75, of net income per diluted share available to common stockholders, compared to a net income in the third quarter of 2009 of $153 million, or $0.44 per diluted share.

The third quarter income from operations was $206 million, or $0.63 per diluted share available to common stockholders, compared to $276 million, or $0.84 per diluted share, in the third quarter of 2009.  Third quarter earnings included the results of Lincoln's annual comprehensive review of actuarial assumptions and model work. The review resulted in a net charge to income from operations of $72 million, or $0.22 per share, and included an adjustment to reflect the current low interest rate environment.

	For the Quarter Ended
($ in millions except per share data)	2010		2009
Net Income (Loss)	$	246	$	153
Net Income (Loss) Available to Common Stockholders		245		137
Net Income (Loss) Per Diluted Share Available to Common Stockholders		0.75		0.44
Income (Loss) from Operations		206		276
Income (Loss) from Operations Per Diluted Share Available to Common Stockholders		0.63		0.84
Average Diluted Shares		325.7		310.0

Dennis R. Glass, president and CEO said, “In the quarter we saw good indicators of growth continuing including strong double-digit growth in retirement deposits and net flows driving half of the year-over-year increase in total account balances.  Sales overall reflected ongoing distribution expansion and our strong portfolio of products, which was enhanced this quarter with new product introductions. Adjusting for notable items in the quarter, earnings benefited from growth in account values offset by elevated group disability loss ratios, which we expect to recover in time.  While economic conditions continue to influence parts of our business, steady consumer demand for our insurance and retirement products has contributed to consistent sales and positive aggregate net flow results."

1

Third Quarter 2010 Operating Highlights:

·   Consolidated deposits of $5.5 billion up 4% compared to the prior-year quarter driving consolidated net flows of $1.7 billion in the period.

·   Total account balances increased 10% year-over-year to $150 billion, driven by continued strong net flows and improved equity markets.

·   Variable annuity deposits of $2 billion up 11% over the prior-year quarter.

·   Defined Contribution gross deposits of $1.3 billion up 14% over the prior-year quarter.

·   Repurchased $48 million of warrants from the U.S. Treasury reflecting strength in excess capital position.

Third Quarter 2010 – Segment Results

Retirement Solutions

Individual Annuities

The Individual Annuities segment reported income from operations of $126 million in the third quarter of 2010 versus income from operations of $95 million in the year-ago period, reflecting a 14% increase in the average annuity account values.  The current quarter includes net positive items of approximately $12 million, primarily attributable to favorable tax true-ups in the quarter.

Variable annuity deposits of $2.0 billion were up 11% over the prior-year quarter reflecting improved wholesaler productivity and shelf space expansion. Total net flows in the current quarter were $1.3 billion as compared to $1.6 billion in the 2009 quarter, the result of reduced fixed annuity flows.

Defined Contribution

Defined Contribution reported income from operations of $50 million, versus income from operations of $43 million for the same period a year ago, reflecting a 10% increase in the average account values.  The quarter’s results included an $11 million benefit associated with DAC unlocking and model review work.

Gross deposits of $1.3 billion were up 14% versus the prior-year quarter driven by sales and renewals in the mid-to-large case market.  Total net flows in the current quarter were $(278) million as compared to $144 million in the 2009 quarter, primarily attributable to the loss of a few large cases in the quarter.

2

Insurance Solutions

Life Insurance

Life Insurance income from operations was $60 million, compared to $137 million in the third quarter of 2009.  The 2010 quarter included net negative items of $82 million associated with the comprehensive review of actuarial assumptions and models underlying life insurance-related assets and liabilities. The most significant impact was a result of changing long-term portfolio yield assumptions totaling $114 million to reflect current low interest rates. The quarter experienced unfavorable net mortality of approximately $10 million due primarily to the lower level of reinsurance on claims in the quarter.

Life insurance sales of $148 million increased 2% over the prior-year quarter reflecting strong double-digit sales increases of MoneyGuardÒ and variable universal life insurance offset by a decline in UL sales.

Group Protection

For the third quarter, Group Protection’s income from operations was $9.5 million, compared to $35 million in the prior-year period and included $3 million of negative items.

The non-medical loss ratio of 79% in the current quarter compared to 68% in the third quarter of 2009 and our targeted range of 71% to 74%.  The unfavorable non-medical loss ratio was primarily due to the elevated incidence of disability income claims.  While elevated from our target range, loss ratios are expected to recover modestly in the fourth quarter.

Non-medical net earned premiums were $383 million in the third quarter, up 9% over the year-ago period.  Annualized sales of $68 million decreased 14% year-over-year due to competitive market conditions.

Other Operations

The operating loss in Other Operations was $40 million in the quarter versus a loss of $33 million in the prior-year quarter. The quarter had $4 million of negative expense items including an unfavorable tax adjustment.

3

Alternative Investment Income

Income from operations in the third quarter of 2010 included alternative investment income of $7 million, after DAC, after tax, compared to a loss of $1 million in the year-ago quarter.  The company's alternative investment portfolio, of approximately $725 million of book value, performed consistent with our long-term return expectations.

Realized Gains and Losses

Total gross realized losses from the sale and impairment of general account investments in the quarter were $65 million, pre tax, as compared to $174 million in the prior-year quarter and $37 million in the second quarter of 2010.

Realized gains and losses also include the change in value of certain securities subject to mark-to-market accounting and the results of the variable annuity hedge program. The net change in value in the quarter was a gain of $106 million, pre tax, versus a gain of $58 million in the year-ago quarter.

Unrealized Gains and Losses

The company reported a net unrealized gain of approximately $5.0 billion, pre tax, on its available-for-sale securities at September 30, 2010.  This compares to a net unrealized gain of $114 million at September 30, 2009.

Book Value

As of September 30, 2010, the book value per share of common stock, including accumulated other comprehensive income (“AOCI”), was $42.78 compared to $35.91 a year ago. Book value per share, excluding AOCI, was $37.54, compared to $36.64 a year ago.  During the quarter, Lincoln paid $3 million in common stock dividends to its shareholders and paid $48 million for 2.9 million warrants from the U.S. Treasury, which were retired.

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. 

4

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 third quarter results with investors in a conference call beginning at 11:00 a.m. (ET) on Wednesday, November 3, 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)

- Ask for the Lincoln National Conference Call.

The company will also post its third 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 $150 billion as of September 30, 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

5

Definition of Income (Loss) from Operations and Return on Equity

Income (loss) from operations and return on equity, 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 derivative investments; 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 resul ts"; 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 Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“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&# 8221;); 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.

Return on equity measures how efficiently we generate profits from the resources provided by our net assets.  Return on equity is calculated by dividing annualized net income (loss) by average equity, excluding accumulated other comprehensive income (loss) ("AOCI").  Management evaluates return on equity by both including and excluding average goodwill within average equity.

The earnings used to calculate ROE, as used in the earnings release, are net income (loss) and 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.

6

Lincoln National Corporation

Reconciliation of Net Income to Income from Operations

($ in millions, except per share data)
	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Net Income (Loss) Available to Common
Stockholders - Diluted	$	245.1		$	137.0		$	614.5		$	(603.4	)
Less:
Preferred stock dividends and accretion of discount		-			(16.3	)		(36.7	)		(16.3	)
Write-off of unamortized discount on preferred stock
at liquidation		-			-			(130.6	)		-
Adjustment for deferred units of LNC stock in our
non-director deferred compensation plans (1)		(1.0	)		-			(2.9	)		-
Minority interest adjustment (2)		-			-			-			(0.1	)
Net Income (Loss)		246.1			153.3			784.7			(587.0	)
Less:
Excluded realized gain (loss), after-tax		16.5			(248.3	)		(17.3	)		(681.6	)
Benefit ratio unlocking, after-tax		25.1			52.3			(0.3	)		81.3
Income (loss) from reserve changes (net of related
amortization) on business sold through
reinsurance, after-tax		0.5			0.4			1.4			1.3
Gain (loss) on early extinguishment of debt, after tax		-			-			-			41.8
Impairment of intangibles, after-tax		-			1.4			-			(601.5	)
Income (loss) from discontinued operations, after-tax		(1.7	)		72.0			28.9			(74.1	)
Income (Loss) from Operations	$	205.7		$	275.5		$	772.0		$	645.8
Earnings (Loss) Per Share (Diluted)
Income (loss) from operations	$	0.63		$	0.84		$	2.31		$	2.27
Net income (loss) (3)		0.75			0.44			1.94			(2.21	)
Average Stockholders' Equity
Average equity, including average AOCI	$	13,097.4		$	10,365.2		$	12,544.9		$	8,738.2
Average AOCI		1,299.7			(963.9	)		646.7			(2,064.8	)
Average equity, excluding AOCI		11,797.7			11,329.1			11,898.2			10,803.0
Average goodwill		3,016.5			3,096.4			3,014.5			3,196.4
Average equity, excluding AOCI and goodwill	$	8,781.2		$	8,232.7		$	8,883.7		$	7,606.6
Return on Equity, Excluding AOCI
Net income (loss) with average equity including goodwill		8.3	%		5.4	%		8.8	%		-7.2	%
Income (loss) from operations with average equity including goodwill		7.0	%		9.7	%		8.7	%		8.0	%
Income (loss) from operations with average equity excluding goodwill		9.4	%		13.4	%		11.6	%		11.3	%
(1) The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in our non-director deferred compensation plans if the effect of equity classification
(2) Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(3) 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.

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 changes 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 September 30, 2010 and 2009 is set forth below.

	As of September 30,
	2010		2009
Book value per share, including AOCI (1)	$	42.78	$	35.91
Per share impact of AOCI		5.24		(0.73	)
Book value per share, excluding AOCI (1)	$	37.54	$	36.64
(1) These computations exclude Series B preferred stock balances as it is non-convertible.

8

LINCOLN NATIONAL CORPORATION

DIGEST OF EARNINGS

($ in millions, except per share data)
	For the Three Months Ended
	September 30,
	2010			2009
Revenues	$	2,612.8		$	2,081.9
Net Income (Loss)	$	246.1		$	153.3
Preferred stock dividends and accretion of discount		-			(16.3	)
Adjustment for deferred units of LNC stock in our
non-director deferred compensation plans (1)		(1.0	)		-
Net Income (Loss) Available to Common
Stockholders - Diluted		245.1			137.0
Earnings (Loss) Per Common Share - Basic	$	0.78		$	0.45
Earnings (Loss) Per Common Share - Diluted (2)		0.75			0.44
Average Shares - Basic		316,726,409			301,803,108
Average Shares - Diluted		325,683,769			310,039,883
	For the Nine Months Ended
	September 30,
		2010			2009
Revenues	$	7,744.7		$	6,096.4
Net Income (Loss)	$	784.7		$	(587.0	)
Preferred stock dividends and accretion of discount		(36.7	)		(16.3	)
Write-off of unamortized discount on preferred stock
at redemption		(130.6	)		-
Adjustment for deferred units of LNC stock in our
non-director deferred compensation plans (1)		(2.9	)		-
Minority interest adjustment (3)		-			(0.1	)
Net Income (Loss) Available to Common
Stockholders - Diluted		614.5			(603.4	)
Earnings (Loss) Per Common Share - Basic	$	2.01		$	(2.21	)
Earnings (Loss) Per Common Share - Diluted (2)		1.94			(2.21	)
Average Shares - Basic		307,863,690			272,651,820
Average Shares - Diluted		317,513,989			276,916,574
(1) The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in our non-director deferred compensation plans if the effect of equity classification
(2) 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) Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.

9

Forward Looking Statements — Cautionary Language

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln's behalf 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 financi al 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:

·   Deterioration in general economic and business conditions that may affect account values, investment results, guaranteed benefit liabilities, premium levels, claims experience and the level of pension benefit costs, funding and investment results;

·   Economic declines and credit market illiquidity could cause us 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 our financial condition and ability to raise additional capital or refinance existing debt as it matures;

·   Uncertainty about the effect of rules and regulations to be promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act on us and the economy and the financial services sector in particular;

·   The restrictions, oversight, cost and other consequences of being a savings and loan holding company, including from the supervision, regulation and examination by the Office of Thrift Supervision or its functional successors;

·   Legislative, regulatory or tax changes, both domestic and foreign, that affect the cost of, or demand for, our subsidiaries' products, the required amount of reserves and/or surplus, or otherwise affect our ability to conduct business, including changes to statutory reserves and/or risk-based capital, or "RBC," requirements related to secondary guarantees under universal life and variable annuity products such as Actuarial Guideline 43, or "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 us, 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 we 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 or sustained low interest rates causing a reduction of investment income, a reduction in estimated gross profits to our variable annuity and universal life products, the margins of our 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 our subsidiaries' products, a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products, an acceleration of amortization of deferred acquisition costs, or "DAC," value of business acquired, or "VOBA," deferred sales inducements, or "DSI," and deferred front end sales loads, or "DFEL," and an increase in liabilities related to guaranteed benefit features of our subsidiaries' variable annuity products;

·   Ineffectiveness of our 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 our subsidiaries' products, in establishing related insurance reserves and in elevated impairments on investments and amortization of intangible assets that may cause an increase in reserves and/or a reduction in assets, resulting in a corresponding decrease in net income;

·   Changes in accounting principles generally accepted in the United States, or "GAAP," including moving to International Financial Reporting Standards, that may result in unanticipated changes to our net income;

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

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

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

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

·   The adequacy and collectibility of reinsurance that we have purchased;

·   Acts of terrorism, a pandemic, war or other man-made and natural catastrophes that may adversely affect our 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 our subsidiaries can charge for their products;

·   The unknown impact on our 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. Our 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 our business and financial performance. Moreover, we operate 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 our businesses 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.

10

EX-99.2

Lincoln Financial Group
Table of Contents
Third 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 Gain (Loss), After-DAC and Benefit Ratio Unlocking	6
Consolidated Statements of Income (Loss)	7
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL	8
Consolidating Statements of Income (Loss) from Operations - Current Year - Quarter	9
Consolidating Statements of Income (Loss) from Operations - Prior Year - Quarter	10
Consolidating Statements of Income (Loss) from Operations - Current Year - Year-to-Date	11
Consolidating Statements of Income (Loss) from Operations - Prior Year - Year-to-Date	12
Consolidated Balance Sheets and Selected Share Data	13
Balance Sheet Data - Segment Highlights	14
Retirement Solutions
Annuities:
Income (Loss) from Operations and Operational Data	15
DAC, VOBA, DSI and DFEL Roll Forwards	16
Account Value Roll Forwards and Information	17
Account Value Information	18
Interest Rate Spread Information, GLB Expense Assessments, GLB Attributed Fee
and GLB Account Values by Type	19
Defined Contribution:
Income (Loss) from Operations, Operational Data and DAC, VOBA and DSI Roll Forwards	20
Account Value Roll Forwards and Information	21
Account Value Roll Forwards by Product	22
Account Value and Interest Rate Spread Information	23
Insurance Solutions
Life Insurance:
Income (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards	24
Additional Operational Data	25
Account Value Roll Forwards	26
Group Protection:
Income (Loss) from Operations and Operational Data	27
Other Operations	28
Discontinued Operations	28
Consolidated Deposits, Net Flows and Account Balances	29
Consolidated Investment Data	30

9/30/2010		i
Lincoln Financial Group Analyst Coverage
Third 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 Giovanni		212-357-3560
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

9/30/2010				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 derivative investments, embedded derivatives within certain reinsurance arrangements and 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 Financial Accounting Standards Board
			("FASB") Accounting Standars Codification ("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.
Income (loss) from operations available to common stockholders is net income (loss) available to common stockholders (used in the calculation of
earnings (loss) per share) in accordance with GAAP, excluding the after-tax effects of the items above and the acceleration of our Series B preferred
stock discount as a result of redemption prior to five years from the date of issuance.
	•	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 equity measures how efficiently we generate profits from the resources provided by our net assets.  Return on equity is calculated
		by dividing annualized net income (loss) by average equity, excluding accumulated other comprehensive income (loss) ("AOCI").  Management
		evaluates return on equity by both including and excluding average goodwill within average equity.
	•	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, return on equity (including and excluding average goodwill within average equity), excluding AOCI,
using annualized income (loss) from operations 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.  In addition, we believe that our definitions of operating revenues and income (loss) from operations
will provide investors with a more valuable measure of our performance because it better reveals trends in our business.
	•	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 items.  This information helps explain a
source of volatility in amortization.

			iii
	•	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 and DSI 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.
	•	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 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.
Effective April 30, 2010, we amended our non-director deferred compensation plans to allow participants the option to diversify from LNC stock to
other investment alternatives and to be settled in shares or cash at the participant’s discretion.  As a result of the amendment, we reclassified the cost
basis of deferred units of LNC stock from common stock to other liabilities on our Consolidated Balance Sheet.  Consequently changes in the value of
our stock are recorded in underwriting, acquisition, insurance and other expenses on our Consolidated Statement of Income (Loss). When calculating
our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude the shares from our calculation, unless the
effect of assuming it will be settled in shares ("equity classification") would be more dilutive to our diluted EPS.  The numerator used in the calculation
of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in our non-director
deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
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.

9/30/2010																						PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)
	For the Three Months Ended September 30,												For the Nine Months Ended September 30,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Income (Loss) from Operations - By Segment
Annuities	$	126.1		$	94.5		$	31.6			33.4	%	$	361.2		$	233.7		$	127.5			54.6	%
Defined Contribution		49.9			42.6			7.3			17.1	%		121.8			100.1			21.7			21.7	%
Total Retirement Solutions		176.0			137.1			38.9			28.4	%		483.0			333.8			149.2			44.7	%
Life Insurance		59.9			136.5			(76.6	)		-56.1	%		347.8			411.6			(63.8	)		-15.5	%
Group Protection		9.5			34.5			(25.0	)		-72.5	%		53.6			93.8			(40.2	)		-42.9	%
Total Insurance Solutions		69.4			171.0			(101.6	)		-59.4	%		401.4			505.4			(104.0	)		-20.6	%
Other Operations		(39.7	)		(32.6	)		(7.1	)		-21.8	%		(112.4	)		(193.4	)		81.0			41.9	%
Income (Loss) from Operations (1)		205.7			275.5			(69.8	)		-25.3	%		772.0			645.8			126.2			19.5	%
Excluded realized gain (loss), after-tax  (2) (3)		16.5			(248.3	)		264.8			106.6	%		(17.3	)		(681.6	)		664.3			97.5	%
Benefit ratio unlocking, after-tax (2) (3)		25.1			52.3			(27.2	)		-52.0	%		(0.3	)		81.3			(81.6	)	NM
Income (loss) from reserve changes (net of related
amortization) on business sold through reinsurance,
after-tax (3)		0.5			0.4			0.1			25	%		1.4			1.3			0.1			7.7	%
Gain (loss) on early extinguishment of debt, after-tax (3)		-			-			-		NM				-			41.8			(41.8	)		-100.0	%
Impairment of intangibles, after-tax (3)		-			1.4			(1.4	)		-100.0	%		-			(601.5	)		601.5			100.0	%
Income (loss) from discontinued operations, after-tax (4)		(1.7	)		72.0			(73.7	)	NM				28.9			(74.1	)		103.0			139.0	%
Net Income (Loss)		246.1			153.3			92.8			60.5	%		784.7			(587.0	)		1,371.7			233.7	%
Preferred stock dividends and accretion of discount		-			(16.3	)		16.3			100.0	%		(36.7	)		(16.3	)		(20.4	)	NM
Write-off of unamortized discount on preferred stock
at liquidation		-			-			-		NM				(130.6	)		-			(130.6	)	NM
Adjustment for deferred units of LNC stock in our
non-director deferred compensation plans (5)		(1.0	)		-			(1.0	)	NM				(2.9	)		-			(2.9	)	NM
Minority interest adjustment (6)		-			-			-		NM				-			(0.1	)		0.1			100.0	%
Net Income (Loss) Available to Common
Stockholders - Diluted	$	245.1		$	137.0		$	108.1			78.9	%	$	614.5		$	(603.4	)	$	1,217.9			201.8	%
Earnings Per Common Share - Diluted
Income (loss) from operations (1) (7)	$	0.63		$	0.84		$	(0.21	)		-25.0	%	$	2.31		$	2.27		$	0.04			1.8	%
Excluded realized gain (loss), after-tax  (2) (3) (7)		0.05			(0.80	)		0.85			106.3	%		(0.04	)		(2.50	)		2.46			98.4	%
Benefit ratio unlocking, after-tax (2) (3) (7)		0.08			0.17			(0.09	)		-52.9	%		(0.00	)		0.31			(0.31	)	NM
Gain (loss) on early extinguishment of debt, after-tax (3) (7)		-			-			-		NM				-			0.15			(0.15	)		-100.0	%
Impairment of intangibles, after-tax (3) (7)		-			-			-		NM				-			(2.21	)		2.21			100.0	%
Write-off of unamortized discount on preferred stock
at liquidation (7)		-			-			-		NM				(0.41	)		-			(0.41	)	NM
Income (loss) from discontinued operations, after-tax  (4) (7)		(0.01	)		0.23			(0.24	)	NM				0.09			(0.27	)		0.36			133.6	%
Adjustment attributable to using different average diluted
shares for income from operations as compared to net
income (7)		-			-			-		NM				-			0.04			(0.04	)		-100.0	%
Net Income (Loss)	$	0.75		$	0.44		$	0.31			70.5	%	$	1.94		$	(2.21	)	$	4.15			187.8	%
Operating Revenues - By Segment
Annuities	$	660.3		$	598.2		$	62.1			10.4	%	$	1,934.8		$	1,672.4		$	262.4			15.7	%
Defined Contribution		244.6			240.6			4.0			1.7	%		730.4			682.6			47.8			7.0	%
Total Retirement Solutions		904.9			838.8			66.1			7.9	%		2,665.2			2,355.0			310.2			13.2	%
Life Insurance		1,107.9			1,089.5			18.4			1.7	%		3,372.2			3,168.9			203.3			6.4	%
Group Protection		451.5			414.6			36.9			8.9	%		1,366.8			1,278.9			87.9			6.9	%
Total Insurance Solutions		1,559.4			1,504.1			55.3			3.7	%		4,739.0			4,447.8			291.2			6.5	%
Other Operations		121.6			119.2			2.4			2.0	%		365.6			339.0			26.6			7.8	%
Total Operating Revenues		2,585.9			2,462.1			123.8			5.0	%		7,769.8			7,141.8			628.0			8.8	%
Excluded realized gain (loss), pre-tax (2)		25.5			(381.1	)		406.6			106.7	%		(26.5	)		(1,043.2	)		1,016.7			97.5	%
Amortization income of DFEL associated with benefit
ratio unlocking, pre-tax		0.7			0.2			0.5			250.0	%		(0.6	)		(4.2	)		3.6			85.7	%
Amortization of deferred gains arising from reserve
changes on business sold through reinsurance, pre-tax		0.7			0.7			-			-			2.0			2.0			-			0.0	%
Total Revenues	$	2,612.8		$	2,081.9		$	530.9			25.5	%	$	7,744.7		$	6,096.4		$	1,648.3			27.0	%

(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 28 for details.
(5)	The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of
	LNC stock in our non-director deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(6)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(7)	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.

9/30/2010																						PAGE 2
Financial Highlights (Continued)
Unaudited (billions of dollars)
	For the Three Months Ended September 30,												For the Nine Months Ended September 30,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Retirement Solutions - Annuities
Gross deposits	$	2.978		$	3.088		$	(0.110	)		-3.6	%	$	8.077		$	7.901		$	0.176			2.2	%
Net flows		1.284			1.610			(0.326	)		-20.2	%		3.012			3.074			(0.062	)		-2.0	%
Account values (gross)		81.207			72.195			9.012			12.5	%		81.207			72.195			9.012			12.5	%
Account values (net of reinsurance)		80.229			71.146			9.083			12.8	%		80.229			71.146			9.083			12.8	%
Retirement Solutions - Defined Contribution
Gross deposits (1)	$	1.262		$	1.103		$	0.159			14.4	%	$	3.943		$	3.794		$	0.149			3.9	%
Net flows		(0.278	)		0.144			(0.422	)	NM				0.013			1.057			(1.044	)		-98.8	%
Account values - annuities		25.690			24.778			0.912			3.7	%		25.690			24.778			0.912			3.7	%
Alliance and Smart Future mutual funds		11.398			9.544			1.854			19.4	%		11.398			9.544			1.854			19.4	%
Total annuities and mutual fund account values		37.088			34.322			2.766			8.1	%		37.088			34.322			2.766			8.1	%
Insurance Solutions - Life Insurance
Sales (in millions)	$	148.4		$	146.2		$	2.2			1.5	%	$	430.8		$	415.1		$	15.7			3.8	%
Life insurance in force		556.754			532.013			24.741			4.7	%		556.754			532.013			24.741			4.7	%
Gross deposits		1.230			1.073			0.157			14.6	%		3.370			3.151			0.219			7.0	%
Net flows		0.725			0.561			0.164			29.2	%		1.977			1.658			0.319			19.2	%
Account values (net of reinsurance)		32.654			31.271			1.383			4.4	%		32.654			31.271			1.383			4.4	%
Insurance Solutions - Group Protection
Annualized sales (in millions)	$	68.4		$	79.8		$	(11.4	)		-14.3	%	$	196.7		$	193.6		$	3.1			1.6	%
Loss ratio (2)		79.2	%		68.1	%	NM			NM				76.5	%		69.0	%	NM			NM
Consolidated
Total deposits	$	5.470		$	5.264		$	0.206			3.9	%	$	15.390		$	14.846		$	0.544			3.7	%
Total account balances		149.971			136.739			13.232			9.7	%		149.971			136.739			13.232			9.7	%
Total net flows		1.731			2.315			(0.584	)		-25.2	%		5.002			5.789			(0.787	)		-13.6	%

(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.

9/30/2010																							PAGE 3
Financial Highlights (Continued)
Unaudited (millions of dollars)
		For the Three Months Ended September 30,												For the Nine Months Ended September 30,
								Change												Change
		2010			2009			Amount			%			2010			2009			Amount			%
Balance Sheet Assets - End-of-Period		$	190,489.9		$	181,489.2		$	9,000.7			5.0	%	$	190,489.9		$	181,489.2		$	9,000.7			5.0	%
Stockholders' Equity
Beginning-of-period, including AOCI		$	12,637.3		$	9,074.9		$	3,562.4			39.3	%	$	11,700.2		$	7,976.7		$	3,723.5			46.7	%
End-of-period, including AOCI			13,557.5			11,655.5			1,902.0			16.3	%		13,557.5			11,655.5			1,902.0			16.3	%
End-of-period, excluding AOCI			11,896.0			11,876.0			20.0			0.2	%		11,896.0			11,876.0			20.0			0.2	%
Average equity, excluding AOCI			11,797.7			11,329.1			468.6			4.1	%		11,898.2			10,803.0			1,095.2			10.1	%
Return on Equity, Excluding AOCI
Income (loss) from operations with average equity:
Including goodwill			7.0	%		9.7	%								8.7	%		8.0	%
Excluding goodwill			9.4	%		13.4	%								11.6	%		11.3	%
Return on Capital
Income (loss) from operations/average capital			5.7	%		7.7	%								6.9	%		6.3	%
Common Shares Outstanding
Average for the period - basic			316.7			301.8			14.9			4.9	%		307.9			272.7			35.2			12.9	%
Average for the period - diluted			325.7			310.0			15.7			5.1	%		317.5			276.9			40.6			14.7	%
End-of-period - assuming conversion of preferreds (1)			316.9			302.3			14.6			4.8	%		316.9			302.3			14.6			4.8	%
End-of-period - diluted			324.3			311.8			12.5			4.0	%		324.3			311.8			12.5			4.0	%
Book value per common share, including AOCI (2)		$	42.78		$	35.91		$	6.87			19.1	%	$	42.78		$	35.91		$	6.87			19.1	%
Book value per common share, excluding AOCI (2)			37.54			36.64			0.90			2.5	%		37.54			36.64			0.90			2.5	%
Cash Returned to Common Stockholders
Warrant repurchase - dollar amount		$	48.13		$	-		$	48.13		NM			$	48.13		$	-		$	48.13		NM
Common dividends declared			3.20			3.00			0.20			6.7	%		9.40			8.60			0.80			9.3	%
	Total Cash Returned to Common Stockholders	$	51.33		$	3.00		$	48.33		NM			$	57.53		$	8.60		$	48.93		NM
Stock issuance - number of shares			-			-			-		NM				14.14			46.00			(31.86	)		-69.3	%
Dividend declared on common stock - per share		$	0.010		$	0.010		$	-			0.0	%	$	0.030		$	0.030		$	-			0.0	%
Dividend payout ratio			1.3	%		2.3	%								1.5	%		-1.4	%
Annualized yield (3)			0.2	%		0.2	%								0.2	%		0.2	%
Comprehensive Income (Loss)
Net income (loss)		$	246.1		$	153.3		$	92.8			60.5	%	$	784.7		$	(587.0	)	$	1,371.7			233.7	%
Net unrealized gain (loss) on available-for-sale securities			792.9			1,575.6			(782.7	)		-49.7	%		2,010.7			2,781.3			(770.6	)		-27.7	%
Unrealized other-than-temporary impairment on available-for-sale securities			(21.3	)		(4.1	)		(17.2	)	NM				(16.6	)		(121.8	)		105.2			86.4	%
Net unrealized gain (loss) on derivative instruments			(46.6	)		(43.0	)		(3.6	)		-8.4	%		(71.9	)		(116.3	)		44.4			38.2	%
Foreign currency translation adjustment			0.9			(23.3	)		24.2			103.9	%		(0.5	)		62.0			(62.5	)	NM
Funded status of employee benefit plans			(2.3	)		(18.5	)		16.2			87.6	%		1.2			(22.2	)		23.4			105.4	%
Comprehensive Income (Loss)		$	969.7		$	1,640.0		$	(670.3	)		-40.9	%	$	2,707.6		$	1,996.0		$	711.6			35.7	%
Leverage Ratio (4)			25.4	%		27.3	%								25.4	%		27.3	%

	Ratings as of November 2, 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, $6,044, 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.  The denominator in this
	calculation is arrived at by adding the numerator, $4,557, plus our stockholders' equity, excluding AOCI, $11,896, plus 75% of our capital securities, plus all of our
	$373 million senior note.

9/30/2010																									PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Commissions	$	403.9		$	421.2		$	379.7		$	390.0		$	408.3			1.1	%	$	1,122.1		$	1,178.0			5.0	%
General and Administrative Expenses
General and administrative expenses		317.3			351.7			310.8			338.2			348.6			9.9	%		935.0			997.6			6.7	%
Merger-related expenses		2.5			2.8			2.3			2.2			2.4			-4.0	%		13.6			6.9			-49.3	%
Total General and Administrative Expenses, Excluding Broker-Dealer		319.8			354.5			313.1			340.4			351.0			9.8	%		948.6			1,004.5			5.9	%
Communications expenses		13.2			12.9			13.8			14.5			14.9			12.9	%		39.6			43.2			9.1	%
Restructuring charges for expense initiatives		0.6			0.3			-			-			-			-100.0	%		34.3			-			-100.0	%
Taxes, licenses and fees		48.2			24.3			57.5			41.7			47.8			-0.8	%		145.8			147.0			0.8	%
Interest and debt expense		68.0			68.1			68.1			69.0			74.5			9.6	%		193.6			211.6			9.3	%
Total Commissions and Expenses Incurred		853.7			881.3			832.2			855.6			896.5			5.0	%		2,484.0			2,584.3			4.0	%
Less: Commissions and Expenses Capitalized		(422.5	)		(460.0	)		(385.1	)		(401.2	)		(412.1	)		2.5	%		(1,191.4	)		(1,198.4	)		-0.6	%
Total Expenses Incurred, Excluding Amortization and Broker-Dealer Expenses		431.2			421.3			447.1			454.4			484.4			12.3	%		1,292.6			1,385.9			7.2	%
Amortization
Amortization of DAC and VOBA, net of interest		311.4			260.9			258.1			296.9			194.3			-37.6	%		780.7			749.3			-4.0	%
Amortization of intangibles		1.1			1.0			1.0			1.1			1.0			-9.1	%		3.2			3.1			-3.1	%
Total Amortization		312.5			261.9			259.1			298.0			195.3			-37.5	%		783.9			752.4			-4.0	%
Broker-Dealer Commissions and Other Expenses		73.6			81.1			73.6			77.3			77.6			5.4	%		206.9			228.5			10.4	%
Total	$	817.3		$	764.3		$	779.8		$	829.7		$	757.3			-7.3	%	$	2,283.4		$	2,366.8			3.7	%
Merger-Related Expenses (1)
Severance and employee-related charges	$	0.3		$	0.5		$	0.2		$	0.3		$	0.3			0.0	%	$	1.6		$	0.8			-50.0	%
Systems integration and related expenses		1.5			1.4			2.0			1.7			2.0			33.3	%		9.2			5.7			-38.0	%
Other expenses		0.8			0.9			0.1			0.2			0.1			-87.5	%		2.9			0.4			-86.2	%
Total Merger-Related Expenses	$	2.6		$	2.8		$	2.3		$	2.2		$	2.4			-7.7	%	$	13.7		$	6.9			-49.6	%

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

9/30/2010																									PAGE 5
Selected Financial Results Summary
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Annuities	$	598.2		$	628.9		$	629.9		$	644.6		$	660.3			10.4	%	$	1,672.4		$	1,934.8			15.7	%
Defined Contribution		240.6			243.7			240.5			245.3			244.6			1.7	%		682.6			730.4			7.0	%
Total Retirement Solutions		838.8			872.6			870.4			889.9			904.9			7.9	%		2,355.0			2,665.2			13.2	%
Life Insurance		1,089.5			1,126.3			1,128.3			1,136.0			1,107.9			1.7	%		3,168.9			3,372.2			6.4	%
Group Protection		414.6			433.6			445.2			470.1			451.5			8.9	%		1,278.9			1,366.8			6.9	%
Total Insurance Solutions		1,504.1			1,559.9			1,573.5			1,606.1			1,559.4			3.7	%		4,447.8			4,739.0			6.5	%
Other Operations		119.2			125.9			123.4			120.6			121.6			2.0	%		339.0			365.6			7.8	%
Total Operating Revenues		2,462.1			2,558.4			2,567.3			2,616.6			2,585.9			5.0	%		7,141.8			7,769.8			8.8	%
Excluded realized gain (loss), pre-tax (1)		(381.1	)		(156.6	)		(40.9	)		(11.1	)		25.5			106.7	%		(1,043.2	)		(26.5	)		97.5	%
Amortization of DFEL associated with benefit ratio unlocking, pre-tax		0.2			-			0.3			(1.6	)		0.7			250.0	%		(4.2	)		(0.6	)		85.7	%
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax		0.7			0.6			0.7			0.6			0.7			0.0	%		2.0			2.0			0.0	%
Total Revenues	$	2,081.9		$	2,402.4		$	2,527.4		$	2,604.5		$	2,612.8			25.5	%	$	6,096.4		$	7,744.7			27.0	%
Income (Loss) from Operations
Annuities	$	94.5		$	119.7		$	118.7		$	116.4		$	126.1			33.4	%	$	233.7		$	361.2			54.6	%
Defined Contribution		42.6			33.3			35.9			36.0			49.9			17.1	%		100.1			121.8			21.7	%
Total Retirement Solutions		137.1			153.0			154.6			152.4			176.0			28.4	%		333.8			483.0			44.7	%
Life Insurance		136.5			157.6			136.7			151.2			59.9			-56.1	%		411.6			347.8			-15.5	%
Group Protection		34.5			30.1			21.4			22.7			9.5			-72.5	%		93.8			53.6			-42.9	%
Total Insurance Solutions		171.0			187.7			158.1			173.9			69.4			-59.4	%		505.4			401.4			-20.6	%
Other Operations		(32.6	)		(43.5	)		(36.6	)		(36.1	)		(39.7	)		-21.8	%		(193.4	)		(112.4	)		41.9	%
Income (Loss) from Operations		275.5			297.2			276.1			290.2			205.7			-25.3	%		645.8			772.0			19.5	%
Excluded realized gain (loss), after-tax (1) (2)		(248.3	)		(98.3	)		(26.5	)		(7.3	)		16.5			106.6	%		(681.6	)		(17.3	)		97.5	%
Benefit ratio unlocking, after-tax (1) (2)		52.3			7.6			5.5			(30.9	)		25.1			-52.0	%		81.3			(0.3	)	NM
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (2)		0.4			0.5			0.4			0.5			0.5			25.0	%		1.3			1.4			7.7	%
Gain (loss) on early extinguishment of debt, after-tax (2)		-			-			-			-			-		NM				41.8			-			-100.0	%
Impairment of intangibles, after-tax (2)		1.4			(108.8	)		-			-			-			-100.0	%		(601.5	)		-			100.0	%
Income (loss) from discontinued operations, after-tax (3)		72.0			4.1			27.9			2.7			(1.7	)	NM				(74.1	)		28.9			139.0	%
Net Income (Loss)		153.3			102.3			283.4			255.2			246.1			60.5	%		(587.0	)		784.7			233.7	%
Preferred stock dividends and accretion of discount		(16.3	)		(18.2	)		(18.4	)		(18.3	)		-			100.0	%		(16.3	)		(36.7	)	NM
Write-off of unamortized discount on preferred stock at redemption		-			-			-			(130.6	)		-		NM				-			(130.6	)	NM
Adjustment for deferred units of LNC stock in our non-director deferred compensation plans (4)		-			-			-			(1.9	)		(1.0	)	NM				-			(2.9	)	NM
Minority interest adjustment (5)		-			-			-			-			-		NM				(0.1	)		-			100.0	%
Net Income (Loss) Available to Common Stockholders - Diluted	$	137.0		$	84.1		$	265.0		$	104.4		$	245.1			78.9	%	$	(603.4	)	$	614.5			201.8	%
Stockholders' Equity
Beginning-of-period, including AOCI	$	9,074.9		$	11,655.5		$	11,700.2		$	12,368.5		$	12,637.3					$	7,976.7		$	11,700.2
End-of-period, including AOCI		11,655.5			11,700.2			12,368.5			12,637.3			13,557.5						11,655.5			13,557.5
End-of-period, excluding AOCI		11,876.0			11,961.6			12,066.3			11,699.4			11,896.0						11,876.0			11,896.0
Average Stockholders' Equity
Average equity, including average AOCI	$	10,365.2			11,677.8			12,034.3			12,502.9		$	13,097.4					$	8,738.2		$	12,544.9
Average AOCI		(963.9	)		(241.0	)		20.4			620.0			1,299.7						(2,064.8	)		646.7
Average equity, excluding AOCI		11,329.1			11,918.8			12,013.9			11,882.9			11,797.7						10,803.0			11,898.2
Average goodwill		3,096.4			3,054.9			3,013.5			3,013.5			3,016.5						3,196.4			3,014.5
Average equity, excluding AOCI and goodwill	$	8,232.7			8,863.9			9,000.4			8,869.4		$	8,781.2					$	7,606.6		$	8,883.7
Restructuring Charges, After-Tax	$	0.4		$	0.2		$	0.0		$	0.0		$	0.0					$	22.3		$	0.0
Common Shares Outstanding
Average for the period - basic		301.8			301.9			302.2			304.5			316.7						272.7			307.9
Average for the period - diluted		310.0			311.6			312.1			314.6			325.7						276.9			317.5
End-of-period - diluted		311.8			311.8			313.0			325.9			324.3						311.8			324.3
Earnings (Loss) Per Common Share - Diluted
Income (loss) from operations (6)	$	0.84		$	0.90		$	0.83		$	0.86		$	0.63					$	2.27		$	2.31
Net income (loss) (6)		0.44			0.27			0.85			0.33			0.75						(2.21	)		1.94
Restructuring charges		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)					0.08			(0.00	)
Stockholders' Equity Per Common Share
Stockholders' equity, including AOCI (7)	$	35.91		$	36.02		$	38.19		$	39.89		$	42.78					$	35.91		$	42.78
Stockholders' equity, excluding AOCI (7)		36.64			36.89			37.19			36.93			37.54						36.64			37.54
Dividends declared (common stock)		0.010			0.010			0.010			0.010			0.010						0.030			0.030
Return on Equity, Excluding AOCI
Net income (loss) with average equity including goodwill		5.4	%		3.4	%		9.4	%		8.6	%		8.3	%					-7.2	%		8.8	%
Income (loss) from operations with average equity including goodwill		9.7	%		10.0	%		9.2	%		9.8	%		7.0	%					8.0	%		8.7	%
Income (loss) from operations with average equity excluding goodwill		13.4	%		13.4	%		12.3	%		13.1	%		9.4	%					11.3	%		11.6	%
Market Value of Common Shares
Highest price	$	27.82		$	28.10		$	30.74		$	33.55		$	26.83					$	27.82		$	33.55
Lowest price		14.34			21.99			22.52			23.86			20.65						4.90			20.65
Closing price		25.91			24.88			30.70			24.29			23.92						25.91			23.92

(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 28 for details.
(4)	The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in our non-director deferred
	compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(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 from operations as well.
(7)	These computations exclude Series B preferred stock balances as it is non-convertible.

9/30/2010													PAGE 6
Details Underlying Realized Gain (Loss), After-DAC and Benefit Ratio Unlocking
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Components of Operating Realized Gain (Loss)
Indexed annuity net derivatives results (1)	$	0.3		$	-		$	0.4		$	(0.7	)	$	0.7			133.3	%	$	0.3		$	0.4			33.3	%
GLB (2)		14.7			15.8			15.0			16.3			17.5			19.0	%		37.9			48.8			28.8	%
Total operating realized gain (loss), pre-tax		15.0			15.8			15.4			15.6			18.2			21.3	%		38.2			49.2			28.8	%
Federal income tax expense (benefit) (3)		5.2			5.5			5.3			5.6			6.3			21.2	%		13.4			17.2			28.4	%
Total operating realized gain (loss), after-tax	$	9.8		$	10.3		$	10.1		$	10.0		$	11.9			21.4	%	$	24.8		$	32.0			29.0	%
Components of Excluded Realized Gain (Loss)
Realized gain (loss) related to certain investments (4)	$	(123.5	)	$	(126.6	)	$	(55.0	)	$	(5.1	)	$	(26.1	)		78.9	%	$	(411.4	)	$	(86.2	)		79.0	%
Gain (loss) on certain derivative instruments, including those associated with our consolidated VIEs, and trading securities (5)		58.4			(14.0	)		12.6			(45.8	)		105.6			80.8	%		50.2			72.4			44.2	%
GLB net derivatives results (6)		(227.9	)		2.8			11.9			10.8			(7.7	)		96.6	%		(503.8	)		15.0			103.0	%
GDB derivatives results (7)		(84.2	)		(21.7	)		(13.0	)		25.7			(45.8	)		45.6	%		(179.2	)		(33.1	)		81.5	%
Indexed annuity forward-starting option (8)		(3.9	)		2.9			2.6			3.3			(0.5	)		87.2	%		-			5.4		NM
Gain (loss) on sale of subsidiaries/businesses		-			-			-			-			-		NM				1.0			-			-100.0	%
Total excluded realized gain (loss), pre-tax		(381.1	)		(156.6	)		(40.9	)		(11.1	)		25.5			106.7	%		(1,043.2	)		(26.5	)		97.5	%
Federal income tax expense (benefit) (3)		(132.8	)		(58.3	)		(14.4	)		(3.8	)		9.0			106.8	%		(361.6	)		(9.2	)		97.5	%
Total excluded realized gain (loss), after-tax	$	(248.3	)	$	(98.3	)	$	(26.5	)	$	(7.3	)	$	16.5			106.6	%	$	(681.6	)	$	(17.3	)		97.5	%

Components of GLB Net Derivatives Results
Net valuation premium, net of reinsurance	$	31.2		$	34.8		$	25.8		$	27.7		$	29.8		-4.5	%	$	80.8		$	83.3			3.1	%
Change in reserves hedged:
Unlocking		(25.7	)		(240.8	)		-			-			14.7		157.2	%		(25.7	)		14.7			157.2	%
Other		208.9			644.6			190.0			(1,402.0	)		218.3		4.5	%		2,419.7			(993.7	)	NM
Change in market value of derivative assets		(241.1	)		(548.9	)		(198.0	)		1,248.5			(214.3	)	11.1	%		(2,385.3	)		836.2			135.1	%
Hedge program effectiveness (ineffectiveness)		(57.9	)		(145.1	)		(8.0	)		(153.5	)		18.7		132.3	%		8.7			(142.8	)	NM
Change in reserves not hedged (NPR component)		(212.0	)		54.1			(0.9	)		151.0			(40.7	)	80.8	%		(600.3	)		109.4			118.2	%
Change in derivative assets not hedged (NPR component)		5.0			4.7			(1.0	)		(8.1	)		3.8		-24.0	%		10.0			(5.3	)	NM
Associated amortization expense of DAC, VOBA,DSI and DFEL:
Unlocking		(76.5	)		43.5			4.7			5.2			(21.9	)	71.4	%		(219.7	)		(12.0	)		94.5	%
Other amortization		82.3			10.8			(8.7	)		(11.5	)		2.6		-96.8	%		216.7			(17.6	)	NM
GLB net derivatives results, pre-tax	$	(227.9	)	$	2.8		$	11.9		$	10.8		$	(7.7	)	96.6	%	$	(503.8	)	$	15.0			103.0	%

Components of Benefit Ratio Unlocking (3)
GLB benefit ratio unlocking, after-tax	$	3.6		$	1.1		$	0.6		$	(3.0	)	$	2.8		-22.2	%	$	6.7		$	0.4			-94.0	%
GDB benefit ratio unlocking, after-tax		48.7			6.5			4.9			(27.9	)		22.3		-54.2	%		74.6			(0.7	)	NM
Total benefit ratio unlocking, after-tax	$	52.3		$	7.6		$	5.5		$	(30.9	)	$	25.1		-52.0	%	$	81.3		$	(0.3	)	NM
GDB Benefit Ratio Unlocking, Net of Derivative Results (3)
GDB benefit ratio unlocking, after-tax	$	48.7		$	6.5		$	4.9		$	(27.9	)	$	22.3		-54.2	%	$	74.6		$	(0.7	)	NM
GDB derivatives results, after-tax		(55.6	)		(10.5	)		(8.4	)		16.6			(29.7	)	46.6	%		(120.0	)		(21.5	)		82.1	%
GDB benefit ratio unlocking, net of derivative results, after-tax	$	(6.9	)	$	(4.0	)	$	(3.5	)	$	(11.3	)	$	(7.4	)	-7.2	%	$	(45.4	)	$	(22.2	)		51.1	%

(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)	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)	See page 30 for detail.
(5)	Represents changes in the fair values of certain derivative investments (including the credit default swaps and contingent forwards associated with consolidated
	VIEs), total return swaps (embedded derivatives that are 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) and trading securities.
(6)	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.
(7)	Represents the change in the fair value of the derivatives we own to hedge the change in the GDB riders.
(8)	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.

9/30/2010																									PAGE 7
Consolidated Statements of Income (Loss)
Unaudited (in millions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Revenues
Insurance premiums	$	490.4		$	523.8		$	531.8		$	551.4		$	537.7			9.6	%	$	1,540.4		$	1,620.9			5.2	%
Surrender charges		43.2			40.6			42.7			34.5			32.1			-25.7	%		111.8			109.3			-2.2	%
Mortality assessments		317.1			317.8			317.9			325.3			319.9			0.9	%		981.2			963.1			-1.8	%
Expense assessments		405.3			406.9			427.5			433.4			417.5			3.0	%		1,064.2			1,278.4			20.1	%
Net investment income		1,071.3			1,122.3			1,106.1			1,119.8			1,132.3			5.7	%		3,055.2			3,358.2			9.9	%
Realized gain (loss):
Total other-than-temporary impairment losses on securities		(147.5	)		(88.7	)		(75.9	)		(11.6	)		(98.5	)		33.2	%		(578.2	)		(186.0	)		67.8	%
Portion of loss recognized in other comprehensive income		67.8			15.4			23.5			-			53.0			-21.8	%		259.4			76.5			-70.5	%
Net other-than-temporary impairment losses on securities recognized in earnings		(79.7	)		(73.3	)		(52.4	)		(11.6	)		(45.5	)		42.9	%		(318.8	)		(109.5	)		65.7	%
Realized gain (loss), excluding other-than-temporary impairment losses on securities		(286.4	)		(67.5	)		26.9			16.1			89.2			115.3	%		(686.2	)		132.2			119.3	%
Total realized gain (loss) (1)		(366.1	)		(140.8	)		(25.5	)		4.5			43.7			111.9	%		(1,005.0	)		22.7			102.3	%
Amortization of deferred gains on business sold through reinsurance		18.4			20.3			18.9			18.6			18.8			2.2	%		55.7			56.3			1.1	%
Other revenues and fees		102.3			111.5			108.0			117.0			110.8			8.3	%		292.9			335.8			14.6	%
Total Revenues		2,081.9			2,402.4			2,527.4			2,604.5			2,612.8			25.5	%		6,096.4			7,744.7			27.0	%
Benefits and Expenses
Interest credited		614.2			614.9			617.7			613.0			621.8			1.2	%		1,848.0			1,852.5			0.2	%
Benefits		577.2			763.9			779.2			839.2			925.0			60.3	%		2,071.9			2,543.4			22.8	%
Underwriting, acquisition, insurance and other expenses		761.4			694.6			713.7			753.1			688.5			-9.6	%		2,099.4			2,155.3			2.7	%
Interest and debt expense		68.0			68.1			68.1			69.0			74.5			9.6	%		129.3			211.6			63.7	%
Impairment of intangibles		(1.4	)		127.8			-			-			-			100.0	%		601.7			-			-100.0	%
Total Benefits and Expenses		2,019.4			2,269.3			2,178.7			2,274.3			2,309.8			14.4	%		6,750.3			6,762.8			0.2	%
Income (loss) from continuing operations before taxes		62.5			133.1			348.7			330.2			303.0		NM				(653.9	)		981.9			250.2	%
Federal income tax expense (benefit)		(18.8	)		34.9			93.2			77.7			55.2		NM				(141.0	)		226.1			260.4	%
Income (Loss) from Continuing Operations		81.3			98.2			255.5			252.5			247.8			204.8	%		(512.9	)		755.8			247.4	%
Income (loss) from discontinued operations, net of federal income taxes (2)		72.0			4.1			27.9			2.7			(1.7	)	NM				(74.1	)		28.9			139.0	%
Net Income (Loss)		153.3			102.3			283.4			255.2			246.1			60.5	%		(587.0	)		784.7			233.7	%
Preferred stock dividends and accretion of discount		(16.3	)		(18.2	)		(18.4	)		(18.3	)		-			100.0	%		(16.3	)		(36.7	)	NM
Write-off of unamortized discount on preferred stock at liquidation		-			-			-			(130.6	)		-		NM				-			(130.6	)	NM
Adjustment for deferred units of LNC stock in our non-director deferred compensation plans (3)		-			-			-			(1.9	)		(1.0	)	NM				-			(2.9	)	NM
Minority interest adjustment (4)		-			-			-			-			-		NM				(0.1	)		-			100.0	%
Net Income (Loss) Available to Common Stockholders - Diluted	$	137.0		$	84.1		$	265.0		$	104.4		$	245.1			78.9	%	$	(603.4	)	$	614.5			150.7	%
Earnings (Loss) Per Common Share (Diluted) (5)
Income (loss) from continuing operations	$	0.21		$	0.26		$	0.76		$	0.32		$	0.76			263.0	%	$	(1.94	)	$	1.85			195.4	%
Income (loss) from discontinued operations, net of federal income taxes (2)		0.23			0.01			0.09			0.01			(0.01	)	NM				(0.27	)		0.09			133.5	%
Net Income (Loss)	$	0.44		$	0.27		$	0.85		$	0.33		$	0.75			70.5	%	$	(2.21	)	$	1.94			187.8	%

(1)	See page 6 for detail.
(2)	Contains discontinued operations and the loss on disposition.  See Discontinued Operations on page 28 for additional details.
(3)	The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in
	our non-director deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(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.

9/30/2010										PAGE 8
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL
Unaudited (in millions)
	For the Three Months Ended															For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			Sept.			Sept.
DAC and VOBA	2009			2009			2010			2010			2010			2009			2010
Balance as of beginning-of-period	$	10,455.9		$	9,182.3		$	9,509.6		$	9,195.1		$	8,534.5		$	11,403.3		$	9,509.6
Business sold through reinsurance		-			-			-			-			-			(292.9	)		-
Deferrals		422.5			460.0			385.1			401.2			412.1			1,191.4			1,198.4
Amortization, net of interest:
Unlocking		(39.9	)		12.7			43.3			21.7			62.8			(73.0	)		127.8
Amortization, net of interest, excluding unlocking		(271.5	)		(273.6	)		(301.4	)		(318.6	)		(257.1	)		(707.7	)		(877.1	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		111.1			199.1			127.0			104.3			217.8			410.7			449.1
Amortization, net of interest, associated with benefit ratio unlocking		(12.1	)		(1.1	)		(1.8	)		7.7			(5.8	)		(9.6	)		0.1
Adjustment related to realized (gains) losses		31.2			82.1			(8.6	)		(26.6	)		4.8			108.5			(30.4	)
Adjustment related to unrealized (gains) losses		(1,403.8	)		47.2			(431.1	)		(746.0	)		(832.8	)		(2,437.7	)		(2,009.9	)
Balance as of End-of-Period	$	9,182.3		$	9,509.6		$	9,195.1		$	8,534.5		$	7,918.5		$	9,182.3		$	7,918.5
DSI
Balance as of beginning-of-period	$	289.1		$	305.0		$	323.3		$	299.4		$	288.6		$	262.7		$	323.3
Deferrals		20.1			21.1			19.5			17.7			16.2			55.2			53.4
Amortization, net of interest:
Unlocking		3.6			2.5			2.1			2.2			3.5			1.7			7.8
Amortization, net of interest, excluding unlocking		(10.2	)		(6.3	)		(15.0	)		(14.2	)		(13.9	)		(25.0	)		(43.1	)
Deferrals, net of amortization included in operating insurance benefits or interest credited		13.5			17.3			6.6			5.7			5.8			31.9			18.1
Amortization, net of interest, associated with benefit ratio unlocking		(1.1	)		(0.1	)		(0.2	)		1.0			(0.9	)		(0.3	)		(0.1	)
Adjustment related to realized (gains) losses		3.1			2.0			(1.9	)		(2.6	)		(3.9	)		10.8			(8.4	)
Adjustment related to unrealized (gains) losses		0.4			(0.9	)		(28.4	)		(14.9	)		(20.9	)		(0.1	)		(64.2	)
Balance as of End-of-Period	$	305.0		$	323.3		$	299.4		$	288.6		$	268.7		$	305.0		$	268.7
DFEL
Balance as of beginning-of-period	$	1,160.8		$	1,220.3		$	1,337.6		$	1,345.3		$	1,307.8		$	1,019.4		$	1,337.6
Business sold through reinsurance		-			-			-			-			-			(11.0	)		-
Deferrals		124.0			151.6			135.2			134.1			141.4			344.0			410.7
Amortization, net of interest:
Unlocking		(30.7	)		(2.0	)		(7.0	)		(7.8	)		9.8			(36.4	)		(5.0	)
Amortization, net of interest, excluding unlocking		(36.6	)		(34.4	)		(44.0	)		(47.5	)		(35.2	)		(98.2	)		(126.7	)
Deferrals, net of amortization included in operating expense assessments		56.7			115.2			84.2			78.8			116.0			209.4			279.0
Amortization, net of interest, associated with benefit ratio unlocking		(0.2	)		-			(0.3	)		1.6			(0.7	)		4.2			0.6
Adjustment related to realized gains (losses)		2.2			2.8			(1.3	)		(2.8	)		0.2			(3.6	)		(3.9	)
Adjustment related to unrealized gains (losses)		0.8			(0.7	)		(74.9	)		(115.1	)		(121.6	)		1.9			(311.6	)
Balance as of End-of-Period	$	1,220.3		$	1,337.6		$	1,345.3		$	1,307.8		$	1,301.7		$	1,220.3		$	1,301.7

9/30/2010													PAGE 9
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended September 30, 2010
Unaudited (in millions)
	Retirement Solutions					Insurance Solutions
			Defined			Life		Group		Other
	Annuities		Contribution			Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	15.7	$	-		$	107.5	$	414.5	$	0.1		$	537.8
Surrender charges		9.0		0.7			22.5		-		-			32.2
Mortality assessments		-		-			319.9		-		-			319.9
Expense assessments		259.9		47.4			109.0		-		-			416.3
Net investment income		281.9		191.9			542.8		35.0		80.7			1,132.3
Operating realized gain (loss) (2)		18.1		0.1			-		-		-			18.2
Amortization of deferred gain on business sold through reinsurance		-		-			-		-		18.1			18.1
Other revenues and fees		75.7		4.5			6.2		2.0		22.7			111.1
Total Operating Revenues		660.3		244.6			1,107.9		451.5		121.6			2,585.9
Operating Expenses
Interest credited		183.5		110.2			299.5		-		27.8			621.0
Benefits		43.0		(0.1	)		561.0		330.4		35.2			969.5
Underwriting, acquisition, insurance and other expenses		297.5		65.5			167.6		106.4		45.6			682.6
Interest and debt expense		-		-			-		-		74.5			74.5
Total Operating Expenses		524.0		175.6			1,028.1		436.8		183.1			2,347.6
Income (loss) from operations before federal income taxes		136.3		69.0			79.8		14.7		(61.5	)		238.3
Federal income tax expense (benefit)		10.2		19.1			19.9		5.2		(21.8	)		32.6
Income (Loss) from Operations	$	126.1	$	49.9		$	59.9	$	9.5	$	(39.7	)	$	205.7

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

9/30/2010														PAGE 10
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended September 30, 2009
Unaudited (in millions)
	Retirement Solutions					Insurance Solutions
			Defined			Life			Group		Other
	Annuities		Contribution			Insurance			Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	17.3	$	-		$	93.5		$	379.5	$	0.1		$	490.4
Surrender charges		9.0		1.3			32.8			-		-			43.1
Mortality assessments		-		-			317.1			0.1		-			317.2
Expense assessments		214.3		46.5			144.1			-		-			404.9
Net investment income		271.5		189.8			495.3			33.5		81.1			1,071.2
Operating realized gain (loss) (2)		14.9		0.1			-			-		-			15.0
Amortization of deferred gain on business sold through reinsurance		-		-			(0.7	)		-		18.3			17.6
Other revenues and fees		71.2		2.9			7.4			1.5		19.7			102.7
Total Operating Revenues		598.2		240.6			1,089.5			414.6		119.2			2,462.1
Operating Expenses
Interest credited		175.9		110.9			292.9			0.5		32.9			613.1
Benefits		51.5		(0.3	)		320.7			261.6		36.0			669.5
Underwriting, acquisition, insurance and other expenses		258.8		70.6			284.3			99.3		36.3			749.3
Interest and debt expense		-		-			-			-		68.0			68.0
Total Operating Expenses		486.2		181.2			897.9			361.4		173.2			2,099.9
Income (loss) from operations before federal income taxes		112.0		59.4			191.6			53.2		(54.0	)		362.2
Federal income tax expense (benefit)		17.5		16.8			55.1			18.7		(21.4	)		86.7
Income (Loss) from Operations	$	94.5	$	42.6		$	136.5		$	34.5	$	(32.6	)	$	275.5

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

9/30/2010												PAGE 11
Consolidating Statements of Income (Loss) From Operations
For the Nine Months Ended September 30, 2010
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	35.4	$	-	$	327.3	$	1,258.1	$	0.1		$	1,620.9
Surrender charges		29.5		2.5		77.4		-		-			109.4
Mortality assessments		-		-		963.1		-		-			963.1
Expense assessments		769.2		145.2		363.6		-					1,278.0
Net investment income		824.2		569.3		1,617.9		102.9		243.9			3,358.2
Operating realized gain (loss) (2)		48.9		0.3		-		-		-			49.2
Amortization of deferred gain on business sold through reinsurance		-		-		-		-		54.3			54.3
Other revenues and fees		227.6		13.1		22.9		5.8		67.3			336.7
Total Operating Revenues		1,934.8		730.4		3,372.2		1,366.8		365.6			7,769.8
Operating Expenses
Interest credited		536.6		330.6		895.2		0.6		89.5			1,852.5
Benefits		127.5		2.0		1,334.1		975.2		104.6			2,543.4
Underwriting, acquisition, insurance and other expenses		839.3		228.5		639.9		308.8		138.9			2,155.4
Interest and debt expense		-		-		-		-		211.6			211.6
Total Operating Expenses		1,503.4		561.1		2,869.2		1,284.6		544.6			6,762.9
Income (loss) from operations before federal income taxes		431.4		169.3		503.0		82.2		(179.0	)		1,006.9
Federal income tax expense (benefit)		70.2		47.5		155.2		28.6		(66.6	)		234.9
Income (Loss) from Operations	$	361.2	$	121.8	$	347.8	$	53.6	$	(112.4	)	$	772.0

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

9/30/2010														PAGE 12
Consolidating Statements of Income (Loss) From Operations
For the Nine Months Ended September 30, 2009
Unaudited (in millions)
	Retirement Solutions					Insurance Solutions
			Defined			Life			Group		Other
	Annuities		Contribution			Insurance			Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	76.9	$	-		$	277.3		$	1,182.6	$	3.6		$	1,540.4
Surrender charges		27.1		3.6			81.1			-		-			111.8
Mortality assessments		-		-			981.2			0.1		-			981.3
Expense assessments		574.1		129.5			363.6			-		-			1,067.2
Net investment income		755.8		540.9			1,446.3			91.7		220.6			3,055.3
Operating realized gain (loss) (2)		38.0		0.2			-			-		-			38.2
Amortization of deferred gain on business sold through reinsurance		-		-			(1.4	)		-		55.1			53.7
Other revenues and fees		200.5		8.4			20.8			4.5		59.7			293.9
Total Operating Revenues		1,672.4		682.6			3,168.9			1,278.9		339.0			7,141.8
Operating Expenses
Interest credited		510.0		334.4			886.5			1.6		115.2			1,847.7
Benefits		194.3		(3.0	)		999.4			836.3		178.7			2,205.7
Underwriting, acquisition, insurance and other expenses		716.9		217.1			701.0			296.6		158.0			2,089.6
Interest and debt expense		-		-			-			-		193.6			193.6
Total Operating Expenses		1,421.2		548.5			2,586.9			1,134.5		645.5			6,336.6
Income (loss) from operations before federal income taxes		251.2		134.1			582.0			144.4		(306.5	)		805.2
Federal income tax expense (benefit)		17.5		34.0			170.4			50.6		(113.1	)		159.4
Income (Loss) from Operations	$	233.7	$	100.1		$	411.6		$	93.8	$	(193.4	)	$	645.8

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

9/30/2010													PAGE 13
Consolidated Balance Sheets and Selected Share Data
Unaudited (millions of dollars)
	As of
	Sept.			Dec.			March			June			Sept.
	2009			2009			2010			2010			2010
ASSETS
Investments:
Corporate bonds	$	45,846.3		$	45,380.5		$	47,284.8		$	50,245.6		$	52,907.1
U.S. Government bonds		221.7			194.2			198.3			209.0			218.1
Foreign government bonds		492.9			504.9			456.1			472.3			525.4
Mortgage-backed securities		10,946.9			11,103.3			11,365.4			11,605.9			11,493.7
Asset-backed securities		458.3			479.8			161.4			157.4			161.0
State and municipal bonds		1,464.9			1,967.6			2,198.1			2,539.9			2,961.3
Hybrid and redeemable preferred securities		1,235.2			1,188.0			1,216.7			1,160.9			1,448.7
VIEs' fixed maturity securities		-			-			579.5			581.4			585.3
Equity securities		283.0			278.4			310.0			245.9			205.3
Total available-for-sale securities		60,949.2			61,096.7			63,770.3			67,218.3			70,505.9
Trading securities		2,547.9			2,504.6			2,532.5			2,607.6			2,710.9
Mortgage loans on real estate		7,276.7			7,177.8			7,012.5			6,881.6			6,798.8
Real estate		154.3			173.8			200.6			218.2			218.9
Policy loans		2,893.0			2,897.8			2,902.8			2,901.8			2,879.1
Derivative investments		1,282.0			1,010.1			992.4			1,988.9			1,903.9
Other investments		1,079.6			1,057.2			1,046.4			1,136.8			1,096.5
Total investments		76,182.7			75,918.0			78,457.5			82,953.2			86,114.0
Cash and invested cash		3,159.0			4,024.7			3,444.7			3,699.6			3,546.7
DAC and VOBA		9,182.3			9,509.6			9,195.1			8,534.5			7,918.5
Premiums and fees receivable		323.4			320.9			397.4			316.6			308.2
Accrued investment income		943.2			889.2			940.0			945.4			988.7
Reinsurance recoverables		7,664.1			6,425.9			6,520.1			6,659.6			6,667.8
Goodwill		3,096.4			3,013.5			3,013.5			3,013.5			3,019.4
Other assets		10,827.1			3,831.4			3,223.9			3,162.8			3,350.9
Separate account assets		70,111.0			73,500.1			76,429.2			70,844.1			78,575.7
Total Assets	$	181,489.2		$	177,433.3		$	181,621.4		$	180,129.3		$	190,489.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	16,576.3		$	15,957.9		$	16,015.9		$	17,477.5		$	17,295.4
Other contract holder funds		63,350.2			64,148.0			64,706.3			65,462.6			66,902.9
Short-term debt		400.2			349.9			101.2			99.4			101.0
Long-term debt		4,788.6			5,050.4			5,060.3			5,864.7			5,943.2
Reinsurance related embedded derivatives		39.1			30.5			46.6			92.4			132.0
Funds withheld reinsurance liabilities		1,219.8			1,260.6			1,216.4			1,196.2			1,135.6
Deferred gain on indemnity reinsurance		510.8			543.4			524.7			505.9			487.1
Payables for collateral on investments		2,239.8			1,906.7			1,827.7			2,376.2			2,567.0
VIEs' liabilities		-			-			142.0			187.5			156.5
Other liabilities		10,597.9			2,985.6			3,182.6			3,385.5			3,636.0
Separate account liabilities		70,111.0			73,500.1			76,429.2			70,844.1			78,575.7
Total liabilities		169,833.7			165,733.1			169,252.9			167,492.0			176,932.4
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		7,841.7			7,839.9			7,845.3			8,188.2			8,141.9
Retained earnings		3,234.0			3,315.0			3,407.8			3,510.8			3,753.7
Net unrealized gain (loss) on available-for-sale securities		126.8			49.4			600.6			1,267.2			2,060.1
Unrealized other-than-temporary impairment on available-for-sale securities		(121.8	)		(115.1	)		(113.9	)		(110.4	)		(131.7	)
AOCI:
Net unrealized gain (loss) on derivative instruments		10.8			11.4			21.0			(13.9	)		(60.5	)
Foreign currency translation adjustment		68.2			2.9			1.7			1.5			2.4
Funded status of employee benefit plans		(304.5	)		(210.0	)		(207.2	)		(206.5	)		(208.8	)
Total accumulated other comprehensive income (loss)		(220.5	)		(261.4	)		302.2			937.9			1,661.5
Total stockholders' equity		11,655.5			11,700.2			12,368.5			12,637.3			13,557.5
Total Liabilities and Stockholders' Equity	$	181,489.2		$	177,433.3		$	181,621.4		$	180,129.3		$	190,489.9
Share Data Per Common Share
Stockholders' equity per share (1)	$	35.91		$	36.02		$	38.19		$	39.89		$	42.78
Book value, excluding AOCI (1)		36.64			36.89			37.19			36.93			37.54
Common shares outstanding - assuming conversion of Series A preferred shares (in millions)		302.3			302.4			302.6			316.8			316.9

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

9/30/2010												PAGE 14
Balance Sheet Data - Segment Highlights
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
As of September 30, 2010			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash (2)	$	25,346.0	$	14,253.7	$	38,678.6	$	2,614.4	$	8,768.0		$	89,660.7
DAC and VOBA		1,934.2		277.4		5,538.6		168.3		-			7,918.5
Goodwill		439.8		20.2		2,188.5		274.3		96.6			3,019.4
DSI and other intangibles		266.7		3.9		82.0		-		118.0			470.6
Reinsurance recoverables		570.2		-		2,031.1		43.2		4,023.3			6,667.8
Separate account assets		60,057.8		12,947.0		5,390.5		-		180.4			78,575.7
Liabilities and Capital
Future contract benefits		2,290.6		5.7		7,531.0		1,564.1		5,904.0			17,295.4
Other contract holder funds		20,750.9		12,728.4		31,669.7		225.6		1,528.3			66,902.9
Allocated capital (3)		2,910.0		1,019.0		8,421.9		1,146.0		(1,600.9	)		11,896.0
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		7,105.3		1,446.3		5,964.7			15,957.9
Other contract holder funds		19,565.6		12,239.8		30,616.8		193.1		1,532.6			64,147.9
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).

9/30/2010

																									PAGE 15
Retirement Solutions - Annuities
Income (Loss) from Operations and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums (1)	$	17.3		$	11.9		$	9.9		$	9.8		$	15.7			-9.2	%	$	76.9		$	35.4			-54.0	%
Surrender charges		9.0			9.3			10.9			9.6			9.0			0.0	%		27.1			29.5			8.9	%
Expense assessments		214.3			230.1			249.2			260.1			259.9			21.3	%		574.1			769.2			34.0	%
Net investment income		271.5			281.2			270.8			271.5			281.9			3.8	%		755.8			824.2			9.1	%
Operating realized gain (loss) (2)		14.9			15.8			15.3			15.5			18.1			21.5	%		38.0			48.9			28.7	%
Other revenues and fees (3)		71.2			80.6			73.8			78.1			75.7			6.3	%		200.5			227.6			13.5	%
Total Operating Revenues		598.2			628.9			629.9			644.6			660.3			10.4	%		1,672.4			1,934.8			15.7	%
Operating Expenses
Interest credited		175.9			172.5			176.2			176.9			183.5			4.3	%		510.0			536.6			5.2	%
Benefits (1)		51.5			47.5			43.8			40.7			43.0			-16.5	%		194.3			127.5			-34.4	%
Underwriting, acquisition, insurance and other expenses		258.8			266.0			259.8			282.0			297.5			15.0	%		716.9			839.3			17.1	%
Total Operating Expenses		486.2			486.0			479.8			499.6			524.0			7.8	%		1,421.2			1,503.4			5.8	%
Income (loss) from operations before federal income taxes		112.0			142.9			150.1			145.0			136.3			21.7	%		251.2			431.4			71.7	%
Federal income tax expense (benefit)		17.5			23.2			31.4			28.6			10.2			-41.7	%		17.5			70.2		NM
Income (Loss) from Operations	$	94.5		$	119.7		$	118.7		$	116.4		$	126.1			33.4	%	$	233.7		$	361.2			54.6	%
Effective Tax Rate		15.6	%		16.2	%		20.9	%		19.7	%		7.5	%					7.0	%		16.3	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	2,814.2		$	2,785.6		$	2,858.3		$	2,979.7		$	2,968.9					$	2,973.2		$	2,935.6
Average goodwill		439.8			439.8			439.8			439.8			439.8						539.8			439.8
Average equity, excluding goodwill	$	2,374.4		$	2,345.8		$	2,418.5		$	2,539.9		$	2,529.1					$	2,433.4		$	2,495.8
Return on Equity, Excluding AOCI
Including goodwill		13.4	%		17.2	%		16.6	%		15.6	%		17.0	%					10.5	%		16.4	%
Excluding goodwill		15.9	%		20.4	%		19.6	%		18.3	%		19.9	%					12.8	%		19.3	%
Income (Loss) from Operations - Basis Points on Average Account Values - Annualized		55			65			63			60			65			10			49			63			14
Operating Realized Gain (Loss) (2)
Indexed annuity net derivatives results (4)	$	0.4		$	-		$	0.4		$	(0.7	)	$	0.7			75.0	%	$	0.3		$	0.4			33.3	%
GLB (5)		14.5			15.8			14.9			16.2			17.4			20.0	%		37.7			48.5			28.6	%
Total Operating Realized Gain (Loss)	$	14.9		$	15.8		$	15.3		$	15.5		$	18.1			21.5	%	$	38.0		$	48.9			28.7	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	185.3		$	161.1		$	150.0		$	176.7		$	189.1			2.1	%	$	467.1		$	515.8			10.4	%
General and administrative expenses		82.5			85.9			78.0			82.3			85.6			3.8	%		230.8			245.9			6.5	%
Broker-dealer commissions and general and administrative expenses		73.6			81.1			73.6			77.3			77.6			5.4	%		206.9			228.5			10.4	%
Taxes, licenses and fees		6.3			4.0			9.1			6.1			3.4			-46.0	%		18.7			18.6			-0.5	%
Total commissions and expenses incurred		347.7			332.1			310.7			342.4			355.7			2.3	%		923.5			1,008.8			9.2	%
Less: commissions and expenses capitalized		(181.0	)		(157.2	)		(131.6	)		(164.5	)		(171.3	)		5.4	%		(466.7	)		(467.4	)		-0.1	%
Amortization of DAC and VOBA, net of interest		92.1			91.1			80.7			104.1			113.1			22.8	%		260.1			297.9			14.5	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	258.8		$	266.0		$	259.8		$	282.0		$	297.5			15.0	%	$	716.9		$	839.3			17.1	%
General and Administrative Expenses - Basis Points on Average Account Values - Annualized (6)		48			47			41			43			44			(4	)		49			43			(6	)

(1)	Includes our single premium immediate annuities, which have a corresponding offset to benefits for changes in reserves.
(2)	Included in income (loss) from operations.
(3)	Other revenues and fees consists primarily of fees attributable to broker-dealer services that are subject to market volatility.
(4)	See note  (1) on page 6 for details.
(5)	See note  (2) on page 6 for details.
(6)	Includes distribution costs.

9/30/2010																			PAGE 16
Retirement Solutions - Annuities
DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended															For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			Sept.			Sept.
DAC and VOBA	2009			2009			2010			2010			2010			2009			2010
Balance as of beginning-of-period	$	2,698.1		$	2,286.6		$	2,381.0		$	2,285.0		$	2,156.5		$	2,976.9		$	2,381.0
Deferrals		181.0			157.2			131.6			164.5			171.3			466.7			467.4
Amortization, net of interest:
Unlocking		5.1			16.2			59.4			27.5			16.2			(7.7	)		103.1
Amortization, net of interest, excluding unlocking		(97.2	)		(107.3	)		(140.1	)		(131.6	)		(129.3	)		(252.4	)		(401.0	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		88.9			66.1			50.9			60.4			58.2			206.6			169.5
Amortization, net of interest, associated with benefit ratio unlocking		(11.0	)		(0.9	)		(1.3	)		7.2			(5.3	)		(8.1	)		0.6
Adjustment related to realized (gains) losses		26.2			43.9			(11.5	)		(20.1	)		(19.2	)		30.5			(50.8	)
Adjustment related to unrealized (gains) losses		(515.6	)		(14.7	)		(134.1	)		(176.0	)		(256.0	)		(919.3	)		(566.1	)
Balance as of End-of-Period	$	2,286.6		$	2,381.0		$	2,285.0		$	2,156.5		$	1,934.2		$	2,286.6		$	1,934.2
DSI
Balance as of beginning-of-period	$	286.6		$	302.4		$	320.6		$	296.9		$	286.3		$	260.7		$	320.6
Deferrals		20.0			21.0			19.4			17.7			16.1			54.4			53.2
Amortization, net of interest:
Unlocking		3.6			2.6			2.1			2.2			3.5			1.7			7.8
Amortization, net of interest, excluding unlocking		(10.2	)		(6.4	)		(15.0	)		(14.1	)		(13.8	)		(24.8	)		(42.9	)
Deferrals, net of amortization included in operating interest credited		13.4			17.2			6.5			5.8			5.8			31.3			18.1
Amortization, net of interest, associated with benefit ratio unlocking		(1.1	)		(0.1	)		(0.2	)		1.0			(0.9	)		(0.3	)		(0.1	)
Adjustment related to realized (gains) losses		3.1			2.0			(1.9	)		(2.6	)		(3.8	)		10.8			(8.3	)
Adjustment related to unrealized (gains) losses		0.4			(0.9	)		(28.1	)		(14.8	)		(20.7	)		(0.1	)		(63.6	)
Balance as of End-of-Period	$	302.4		$	320.6		$	296.9		$	286.3		$	266.7		$	302.4		$	266.7
DFEL
Balance as of beginning-of-period	$	146.5		$	162.2		$	182.1		$	191.0		$	201.2		$	130.3		$	182.1
Deferrals		15.8			17.6			17.0			20.0			18.7			38.7			55.7
Amortization, net of interest:
Unlocking		(2.8	)		0.9			1.1			(1.2	)		4.0			(5.0	)		3.9
Amortization, net of interest, excluding unlocking		1.0			1.8			(5.5	)		(5.8	)		(5.7	)		1.3			(17.0	)
Deferrals, net of amortization included in operating expense assessments		14.0			20.3			12.6			13.0			17.0			35.0			42.6
Amortization, net of interest, associated with benefit ratio unlocking		(0.2	)		-			(0.3	)		1.6			(0.7	)		4.2			0.6
Adjustment related to realized gains (losses)		1.8			(0.4	)		(1.3	)		(2.6	)		(5.2	)		(7.1	)		(9.1	)
Adjustment related to unrealized gains (losses)		0.1			-			(2.1	)		(1.8	)		(2.3	)		(0.2	)		(6.2	)
Balance as of End-of-Period	$	162.2		$	182.1		$	191.0		$	201.2		$	210.0		$	162.2		$	210.0

9/30/2010																									PAGE 17
Retirement Solutions - Annuities
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities (1)
Balance as of beginning-of-period	$	18.596		$	19.766		$	19.940		$	20.042		$	20.397			9.7	%	$	17.655		$	19.940			12.9	%
Gross deposits		2.025			1.195			1.138			1.501			1.774			-12.4	%		5.160			4.413			-14.5	%
Withdrawals and deaths		(0.501	)		(0.523	)		(0.486	)		(0.456	)		(0.485	)		3.2	%		(1.913	)		(1.427	)		25.4	%
Net flows		1.524			0.672			0.652			1.045			1.289			-15.4	%		3.247			2.986			-8.0	%
Transfers to variable annuities		(0.610	)		(0.726	)		(0.772	)		(0.801	)		(0.882	)		-44.6	%		(1.750	)		(2.455	)		-40.3	%
Interest credited		0.237			0.207			0.203			0.093			0.255			7.6	%		0.560			0.551			-1.6	%
Sales inducements deferred		0.019			0.021			0.019			0.018			0.016			-15.8	%		0.054			0.053			-1.9	%
Balance as of End-of-Period (Gross)		19.766			19.940			20.042			20.397			21.075			6.6	%		19.766			21.075			6.6	%
Reinsurance ceded		(1.049	)		(1.027	)		(1.011	)		(0.994	)		(0.978	)		6.8	%		(1.049	)		(0.978	)		6.8	%
Balance as of End-of-Period (Net of Ceded)	$	18.717		$	18.913		$	19.031		$	19.403		$	20.097			7.4	%	$	18.717		$	20.097			7.4	%
Variable Annuities (2)
Balance as of beginning-of-period	$	45.523		$	52.429		$	55.368		$	57.815		$	53.921			18.4	%	$	40.925		$	55.368			35.3	%
Gross deposits		1.063			1.266			1.138			1.322			1.204			13.3	%		2.741			3.664			33.7	%
Withdrawals and deaths		(0.977	)		(1.120	)		(1.215	)		(1.214	)		(1.209	)		-23.7	%		(2.914	)		(3.638	)		-24.8	%
Net flows		0.086			0.146			(0.077	)		0.108			(0.005	)	NM				(0.173	)		0.026			115.0	%
Transfers from fixed annuities		0.609			0.726			0.772			0.800			0.882			44.8	%		1.749			2.454			40.3	%
Investment increase and change in market value		6.211			2.067			1.752			(4.802	)		5.334			-14.1	%		9.928			2.284			-77.0	%
Balance as of End-of-Period	$	52.429		$	55.368		$	57.815		$	53.921		$	60.132			14.7	%	$	52.429		$	60.132			14.7	%
Total Annuities
Balance as of beginning-of-period	$	64.119		$	72.195		$	75.308		$	77.857		$	74.318			15.9	%	$	58.580		$	75.308			28.6	%
Gross deposits		3.088			2.461			2.276			2.823			2.978			-3.6	%		7.901			8.077			2.2	%
Withdrawals and deaths		(1.478	)		(1.643	)		(1.701	)		(1.670	)		(1.694	)		-14.6	%		(4.827	)		(5.065	)		-4.9	%
Net flows		1.610			0.818			0.575			1.153			1.284			-20.2	%		3.074			3.012			-2.0	%
Transfers between fixed and variable accounts		(0.001	)		-			-			(0.001	)		-			100.0	%		(0.001	)		(0.001	)		0.0	%
Interest credited and change in market value		6.448			2.274			1.955			(4.709	)		5.589			-13.3	%		10.488			2.835			-73.0	%
Sales inducements deferred		0.019			0.021			0.019			0.018			0.016			-15.8	%		0.054			0.053			-1.9	%
Balance as of End-of-Period (Gross)		72.195			75.308			77.857			74.318			81.207			12.5	%		72.195			81.207			12.5	%
Reinsurance ceded		(1.049	)		(1.027	)		(1.011	)		(0.994	)		(0.978	)		6.8	%		(1.049	)		(0.978	)		6.8	%
Balance as of End-of-Period (Net of Ceded)	$	71.146		$	74.281		$	76.846		$	73.324		$	80.229			12.8	%	$	71.146		$	80.229			12.8	%
Variable Annuities Under Agreement - Included Above	$	0.082		$	0.082		$	0.082		$	0.071		$	0.074			-9.8	%	$	0.082		$	0.074			-9.8	%
Incremental Deposits (3)
Fixed annuities	$	2.023		$	1.194		$	1.137		$	1.500		$	1.772			-12.4	%	$	5.155		$	4.409			-14.5	%
Variable annuities		1.059			1.263			1.134			1.319			1.198			13.1	%		2.732			3.651			33.6	%
Total Incremental Deposits	$	3.082		$	2.457		$	2.271		$	2.819		$	2.970			-3.6	%	$	7.887		$	8.060			2.2	%

(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.

9/30/2010																									PAGE 18
Retirement Solutions - Annuities
Account Value Information
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits	$	0.414		$	0.082		$	0.087		$	0.115		$	0.104			-74.9	%	$	0.896		$	0.306			-65.8	%
Withdrawals and deaths		(0.283	)		(0.299	)		(0.264	)		(0.243	)		(0.256	)		9.5	%		(1.007	)		(0.763	)		24.2	%
Net flows	$	0.131		$	(0.217	)	$	(0.177	)	$	(0.128	)	$	(0.152	)	NM			$	(0.111	)	$	(0.457	)	NM
Gross fixed contract account values	$	9.219		$	9.102		$	9.015		$	8.977		$	8.915			-3.3	%	$	9.219		$	8.915			-3.3	%
Reinsurance ceded		(1.049	)		(1.027	)		(1.011	)		(0.994	)		(0.978	)		6.8	%		(1.049	)		(0.978	)		6.8	%
Net fixed contract account values	$	8.170		$	8.075		$	8.004		$	7.983		$	7.937			-2.9	%	$	8.170		$	7.937			-2.9	%
Indexed Annuities
Deposits	$	0.846		$	0.318		$	0.324		$	0.522		$	0.854			0.9	%	$	1.864		$	1.700			-8.8	%
Withdrawals and deaths		(0.115	)		(0.120	)		(0.124	)		(0.111	)		(0.130	)		-13.0	%		(0.516	)		(0.365	)		29.3	%
Net flows	$	0.731		$	0.198		$	0.200		$	0.411		$	0.724			-1.0	%	$	1.348		$	1.335			-1.0	%
Indexed Annuity Account Values	$	6.557		$	6.839		$	7.131		$	7.524		$	8.389			27.9	%	$	6.557		$	8.389			27.9	%
Fixed Portion of Variable Contracts
Deposits	$	0.765		$	0.795		$	0.727		$	0.864		$	0.817			6.8	%	$	2.399		$	2.408			0.4	%
Withdrawals and deaths		(0.104	)		(0.103	)		(0.098	)		(0.102	)		(0.099	)		4.8	%		(0.390	)		(0.299	)		23.3	%
Net flows	$	0.661		$	0.692		$	0.629		$	0.762		$	0.718			8.6	%	$	2.009		$	2.109			5.0	%
Fixed Portion of Variable Contract Account Values	$	3.990		$	3.999		$	3.896		$	3.896		$	3.771			-5.5	%	$	3.990		$	3.771			-5.5	%
Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	1.829		$	2.060		$	1.865		$	2.186		$	2.021			10.5	%	$	5.141		$	6.072			18.1	%
Withdrawals and deaths		(1.082	)		(1.222	)		(1.313	)		(1.316	)		(1.308	)		-20.9	%		(3.305	)		(3.937	)		-19.1	%
Net flows	$	0.747		$	0.838		$	0.552		$	0.870		$	0.713			-4.6	%	$	1.836		$	2.135			16.3	%
Variable Contract Account Values	$	56.419		$	59.367		$	61.711		$	57.817		$	63.903			13.3	%	$	56.419		$	63.903			13.3	%
Average Daily Variable Annuity Separate Account Values	$	49.135		$	54.013		$	55.809		$	56.788		$	57.255			16.5	%	$	44.036		$	56.623			28.6	%

9/30/2010													PAGE 19
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																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
																(Basis Point)									(Basis Point)
Interest Rate Spread (1)																Change									Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (2)		5.68	%		5.59	%		5.63	%		5.47	%		5.48	%		(20	)		5.47	%		5.53	%		6
Commercial mortgage loan prepayment and bond make whole premiums		0.02	%		0.08	%		0.02	%		0.09	%		0.13	%		11			0.01	%		0.08	%		7
Alternative investments		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%		(1	)		0.00	%		0.00	%		-
Net investment income yield on reserves		5.71	%		5.67	%		5.65	%		5.56	%		5.61	%		(10	)		5.48	%		5.61	%		13
Interest rate credited to contract holders		3.80	%		3.65	%		3.52	%		3.51	%		3.57	%		(23	)		3.81	%		3.53	%		(28	)
Interest rate spread		1.91	%		2.02	%		2.13	%		2.05	%		2.04	%		13			1.67	%		2.08	%		41
Variable Annuity Expense Assessments (in millions) (3)	$	265.7		$	287.4		$	300.8		$	314.8		$	318.0			19.7	%	$	714.2		$	933.6			30.7	%
GLB Expense Assessments (in millions) (4)	$	54.7		$	58.9		$	63.6		$	67.6		$	71.6			30.9	%	$	153.2		$	202.8			32.4	%
Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenues and income from operations (5)	$	17.5		$	18.6		$	22.8		$	24.0		$	25.3			44.6	%	$	50.6		$	72.1			42.5	%
Attributed fee excluded from operating revenues and income from operations (6)		34.3			37.9			28.9			30.8			32.8			-4.4	%		90.4			92.5			2.3	%
Total Attributed Fees on GLB	$	51.8		$	56.5		$	51.7		$	54.8		$	58.1			12.2	%	$	141.0		$	164.6			16.7	%
GLB Account Values by Type
Guaranteed withdrawal benefits (7)	$	21.462		$	23.500		$	25.179		$	24.421		$	27.760			29.3	%	$	21.462		$	27.760			29.3	%
Guaranteed income benefits (8)		8.835			9.333			9.851			9.374			10.470			18.5	%		8.835			10.470			18.5	%
Total GLB Account Values	$	30.297		$	32.833		$	35.030		$	33.795		$	38.230			26.2	%	$	30.297		$	38.230			26.2	%

(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 immediate annuity reserve change (included within benefits), divided by average fixed account values net of co-insured account values. Fixed
	account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained
	under these agreements.
(2)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term strategy during recent volatile markets. The
	increased cash and short-term investment balances for the three months ended September 30, 2009, and December 31, 2009, and the nine months ended
	September 30, 2009, reduced our yields by approximately 3 bps, 5 bps, and 25 bps, respectively. There was no impact for the three months ended March 31, 2010,
	June 30, 2010 and September 30, 2010, or the nine months ended September 30, 2010.
(3)	Comprised of the variable annuity expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of
	attributed fees on GLB, as described in note (5) and note (6) and disclosed above.
(4)	Comprised of the GLB expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of attributed fees
	on GLB, as described in note (5) and note (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 (6) 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.

9/30/2010  PAGE 20

Retirement Solutions - Defined Contribution
Income (Loss) from Operations, Operational Data and DAC, VOBA and DSI Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Surrender charges	$	1.3		$	0.9		$	1.1		$	0.7		$	0.7			-46.2	%	$	3.6		$	2.5			-30.6	%
Expense assessments		46.5			48.8			49.1			48.7			47.4			1.9	%		129.5			145.2			12.1	%
Net investment income		189.8			190.6			186.2			191.2			191.9			1.1	%		540.9			569.3			5.3	%
Operating realized gain (loss) (1)		0.1			0.1			0.1			0.1			0.1			0.0	%		0.2			0.3			50.0	%
Other revenues and fees (2)		2.9			3.3			4.0			4.6			4.5			55.2	%		8.4			13.1			56.0	%
Total Operating Revenues		240.6			243.7			240.5			245.3			244.6			1.7	%		682.6			730.4			7.0	%
Operating Expenses
Interest credited		110.9			111.1			110.4			110.0			110.2			-0.6	%		334.4			330.6			-1.1	%
Benefits		(0.3	)		(0.2	)		2.0			0.1			(0.1	)		66.7	%		(3.0	)		2.0			166.7	%
Underwriting, acquisition, insurance and other expenses		70.6			83.4			77.9			85.1			65.5			-7.2	%		217.1			228.5			5.2	%
Total Operating Expenses		181.2			194.3			190.3			195.2			175.6			-3.1	%		548.5			561.1			2.3	%
Income (loss) from operations before federal income taxes		59.4			49.4			50.2			50.1			69.0			16.2	%		134.1			169.3			26.2	%
Federal income tax expense (benefit)		16.8			16.1			14.3			14.1			19.1			13.7	%		34.0			47.5			39.7	%
Income (Loss) from Operations	$	42.6		$	33.3		$	35.9		$	36.0		$	49.9			17.1	%	$	100.1		$	121.8			21.7	%
Effective Tax Rate		28.3	%		32.6	%		28.5	%		28.1	%		27.7	%					25.4	%		28.1	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	1,025.2		$	1,040.8		$	1,058.1		$	1,045.7		$	1,032.4					$	1,028.3		$	1,045.4
Average goodwill		20.2			20.2			20.2			20.2			20.2						20.2			20.2
Average equity, excluding goodwill	$	1,005.0		$	1,020.6		$	1,037.9		$	1,025.5		$	1,012.2					$	1,008.1		$	1,025.2
Return on Equity, Excluding AOCI
Including goodwill		16.6	%		12.8	%		13.6	%		13.8	%		19.3	%					13.0	%		15.5	%
Excluding goodwill		17.0	%		13.1	%		13.8	%		14.0	%		19.7	%					13.2	%		15.8	%
Income (Loss) from Operations - Basis Points on Average Account Values - Annualized		52			38			40			40			55			3			43			45			2
Operating Realized Gain (Loss) (1)
GLB (3)	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.2		$	0.3			50.0	%
Total Operating Realized Gain (Loss)	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.2		$	0.3			50.0	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	16.4		$	18.1		$	16.3		$	15.8		$	15.2			-7.3	%	$	45.9		$	47.3			3.1	%
General and administrative expenses		53.3			59.2			52.9			57.6			60.1			12.8	%		160.7			170.6			6.2	%
Taxes, licenses and fees		2.7			2.9			3.8			3.1			2.9			7.4	%		9.3			9.8			5.4	%
Total commissions and expenses incurred		72.4			80.2			73.0			76.5			78.2			8.0	%		215.9			227.7			5.5	%
Less: commissions and expenses capitalized		(15.4	)		(17.9	)		(15.9	)		(15.0	)		(15.1	)		1.9	%		(50.7	)		(46.0	)		9.3	%
Amortization of DAC and VOBA, net of interest		13.6			21.1			20.8			23.6			2.4			-82.4	%		51.9			46.8			-9.8	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	70.6		$	83.4		$	77.9		$	85.1		$	65.5			-7.2	%	$	217.1		$	228.5			5.2	%
General and Administrative Expenses - Basis Points on Average Account Values - Annualized (4)		65			68			59			64			67			2			69			63			(6	)
DAC and VOBA
Balance as of beginning-of-period	$	762.7		$	550.4		$	537.7		$	462.1		$	375.2					$	883.3		$	537.7
Deferrals		15.4			17.9			15.9			15.0			15.1						50.7			46.0
Amortization, net of interest:
Unlocking		7.8			0.1			(1.4	)		(3.6	)		17.3						5.6			12.3
Amortization, net of interest, excluding unlocking		(21.4	)		(21.2	)		(19.4	)		(20.0	)		(19.7	)					(57.5	)		(59.1	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		1.8			(3.2	)		(4.9	)		(8.6	)		12.7						(1.2	)		(0.8	)
Amortization, net of interest, associated with benefit ratio unlocking		(1.1	)		(0.2	)		(0.4	)		0.5			(0.5	)					(1.5	)		(0.4	)
Adjustment related to realized (gains) losses		2.3			0.8			0.4			(2.0	)		0.9						10.6			(0.7	)
Adjustment related to unrealized (gains) losses		(215.3	)		(10.1	)		(70.7	)		(76.8	)		(110.9	)					(340.8	)		(258.4	)
Balance as of End-of-Period	$	550.4		$	537.7		$	462.1		$	375.2		$	277.4					$	550.4		$	277.4
DSI
Balance as of beginning-of-period	$	2.5		$	2.6		$	2.7		$	2.5		$	2.3					$	2.0		$	2.7
Deferrals		0.2			0.1			0.1			-			-						0.8			0.1
Amortization, net of interest:
Unlocking		0.1			-			-			-			-						-			-
Amortization, net of interest, excluding unlocking		(0.2	)		(0.1	)		(0.1	)		(0.1	)		(0.1	)					(0.2	)		(0.3	)
Deferrals, net of amortization included in operating interest credited		0.1			-			-			(0.1	)		(0.1	)					0.6			(0.2	)
Adjustment related to realized (gains) losses		-			0.1			-			-			-						0.1			-
Adjustment related to unrealized (gains) losses		-			-			(0.2	)		(0.1	)		(0.3	)					(0.1	)		(0.6	)
Balance as of End-of-Period	$	2.6		$	2.7		$	2.5		$	2.3		$	1.9					$	2.6		$	1.9

(1)	Included in income from operations.
(2)	Other revenues and fees consist primarily of mutual fund account program fees for mid-to-large employers.
(3)	See note (2) on page 6 for details.
(4)	Includes distribution costs.

9/30/2010 PAGE 21

Retirement Solutions - Defined Contribution
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities (1)
Balance as of beginning-of-period	$	12.070		$	12.158		$	12.246		$	12.420		$	12.580			4.2	%	$	11.638			12.246			5.2	%
Gross deposits		0.306			0.299			0.316			0.327			0.349			14.1	%		1.043			0.992			-4.9	%
Withdrawals and deaths		(0.327	)		(0.368	)		(0.341	)		(0.406	)		(0.455	)		-39.1	%		(1.036	)		(1.202	)		-16.0	%
Net flows		(0.021	)		(0.069	)		(0.025	)		(0.079	)		(0.106	)	NM				0.007			(0.210	)	NM
Transfers from variable annuities		(0.003	)		0.044			0.090			0.130			0.148		NM				0.184			0.368			100.0	%
Interest credited		0.112			0.113			0.109			0.109			0.112			0.0	%		0.329			0.330			0.3	%
Balance as of End-of-Period	$	12.158		$	12.246		$	12.420		$	12.580		$	12.734			4.7	%	$	12.158		$	12.734			4.7	%
Variable Annuities (2)
Balance as of beginning-of-period	$	11.102		$	12.620		$	12.953		$	13.250		$	11.967			7.8	%	$	10.588		$	12.953			22.3	%
Gross deposits		0.387			0.413			0.441			0.362			0.368			-4.9	%		1.173			1.171			-0.2	%
Withdrawals and deaths		(0.471	)		(0.589	)		(0.637	)		(0.527	)		(0.473	)		-0.4	%		(1.299	)		(1.637	)		-26.0	%
Net flows		(0.084	)		(0.176	)		(0.196	)		(0.165	)		(0.105	)		-25.0	%		(0.126	)		(0.466	)	NM
Transfers to fixed annuities		0.021			(0.012	)		(0.022	)		(0.047	)		(0.079	)	NM				(0.164	)		(0.148	)		9.8	%
Investment increase and change in market value		1.581			0.521			0.515			(1.071	)		1.173			-25.8	%		2.322			0.617			-73.4	%
Balance as of End-of-Period	$	12.620		$	12.953		$	13.250		$	11.967		$	12.956			2.7	%	$	12.620		$	12.956			2.7	%
Total Annuities
Balance as of beginning-of-period	$	23.172		$	24.778		$	25.199		$	25.670		$	24.547			5.9	%	$	22.226		$	25.199			13.4	%
Gross deposits		0.693			0.712			0.757			0.689			0.717			3.5	%		2.216			2.163			-2.4	%
Withdrawals and deaths		(0.798	)		(0.957	)		(0.978	)		(0.933	)		(0.928	)		-16.3	%		(2.335	)		(2.839	)		-21.6	%
Net flows		(0.105	)		(0.245	)		(0.221	)		(0.244	)		(0.211	)	NM				(0.119	)		(0.676	)	NM
Transfers between fixed and variable accounts		0.018			0.032			0.068			0.083			0.069			283.3	%		0.020			0.220		NM
Interest credited and change in market value		1.693			0.634			0.624			(0.962	)		1.285			-24.1	%		2.651			0.947			-64.3	%
Balance as of End-of-Period	$	24.778		$	25.199		$	25.670		$	24.547		$	25.690			3.7	%	$	24.778		$	25.690			3.7	%
Alliance and Smart Future Mutual Funds (3)
Balance as of beginning-of-period	$	8.155		$	9.544		$	10.103		$	11.029		$	10.493			28.7	%	$	6.652		$	10.103			51.9	%
Plan/participant rollovers		0.057			0.086			0.103			0.267			0.147			157.9	%		0.466			0.517			10.9	%
Additional contributions		0.353			0.360			0.447			0.418			0.398			12.7	%		1.112			1.263			13.6	%
Gross deposits		0.410			0.446			0.550			0.685			0.545			32.9	%		1.578			1.780			12.8	%
Withdrawals and deaths		(0.161	)		(0.263	)		(0.220	)		(0.259	)		(0.612	)	NM				(0.402	)		(1.091	)	NM
Net flows		0.249			0.183			0.330			0.426			(0.067	)	NM				1.176			0.689			-41.4	%
Transfers		(0.003	)		(0.032	)		(0.063	)		(0.071	)		(0.059	)	NM				(0.011	)		(0.193	)	NM
Other (4)		-			-			0.186			-			-		NM				-			0.186		NM
Interest credited and change in market value		1.143			0.408			0.473			(0.891	)		1.031			-9.8	%		1.727			0.613			-64.5	%
Balance as of End-of-Period	$	9.544		$	10.103		$	11.029		$	10.493		$	11.398			19.4	%	$	9.544		$	11.398			19.4	%
Total Annuities and Mutual Funds		-			-			-			-			-						-			-
Balance as of beginning-of-period	$	31.327		$	34.322		$	35.302		$	36.699		$	35.040			11.9	%	$	28.878		$	35.302			22.2	%
Gross deposits		1.103			1.158			1.307			1.374			1.262			14.4	%		3.794			3.943			3.9	%
Withdrawals and deaths		(0.959	)		(1.220	)		(1.198	)		(1.192	)		(1.540	)		-60.6	%		(2.737	)		(3.930	)		-43.6	%
Net flows		0.144			(0.062	)		0.109			0.182			(0.278	)	NM				1.057			0.013			-98.8	%
Transfers		0.015			-			0.005			0.012			0.010			-33.3	%		0.009			0.027			200.0	%
Other (4)		-			-			0.186			-			-		NM				-			0.186		NM
Interest credited and change in market value		2.836			1.042			1.097			(1.853	)		2.316			-18.3	%		4.378			1.560			-64.4	%
Balance as of End-of-Period	$	34.322		$	35.302		$	36.699		$	35.040		$	37.088			8.1	%	$	34.322		$	37.088			8.1	%
Variable Annuities Under Agreement - Included Above	$	0.009		$	0.009		$	0.009		$	0.008		$	0.009			0.0	%	$	0.009		$	0.009			0.0	%
Incremental Deposits (5)
Fixed annuities	$	0.305		$	0.298		$	0.315		$	0.325		$	0.348			14.1	%	$	1.039		$	0.988			-4.9	%
Variable annuities		0.387			0.413			0.440			0.362			0.368			-4.9	%		1.172			1.170			-0.2	%
Total annuities incremental deposits		0.692			0.711			0.755			0.687			0.716			3.5	%		2.211			2.158			-2.4	%
Total Alliance mutual funds incremental deposits		0.410			0.446			0.550			0.686			0.545			32.9	%		1.578			1.781			12.9	%
Total Incremental Deposits	$	1.102		$	1.157		$	1.305		$	1.373		$	1.261			14.4	%	$	3.789		$	3.939			4.0	%

(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)	Includes mutual fund account values and other third party trustee-held assets as mentioned in note (4).  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.
(4)	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.
(5)	Represents gross deposits reduced by transfers from other Lincoln products.

9/30/2010													PAGE 22
Retirement Solutions - Defined Contribution
Account Value Roll Forwards by Product
Unaudited (in billions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Total Micro - Small Segment
Balance as of beginning-of-period	$	5.234		$	5.785		$	5.863		$	5.966		$	5.544			5.9	%	$	4.888		$	5.863			19.9	%
Gross deposits		0.290			0.305			0.342			0.265			0.277			-4.5	%		0.852			0.884			3.8	%
Withdrawals and deaths		(0.319	)		(0.420	)		(0.422	)		(0.334	)		(0.291	)		8.8	%		(0.853	)		(1.047	)		-22.7	%
Net flows		(0.029	)		(0.115	)		(0.080	)		(0.069	)		(0.014	)		51.7	%		(0.001	)		(0.163	)	NM
Transfers between fixed and variable accounts		-			0.002			(0.001	)		-			(0.001	)	NM				(0.004	)		(0.002	)		50.0	%
Investment increase and change in market value		0.580			0.191			0.184			(0.353	)		0.425			-26.7	%		0.902			0.256			-71.6	%
Balance as of End-of-Period	$	5.785		$	5.863		$	5.966		$	5.544		$	5.954			2.9	%	$	5.785		$	5.954			2.9	%
Total Mid - Large Segment
Balance as of beginning-of-period	$	11.425		$	12.972		$	13.653		$	14.767		$	14.384			25.9	%	$	9.540		$	13.653			43.1	%
Gross deposits		0.617			0.650			0.769			0.920			0.800			29.7	%		2.304			2.489			8.0	%
Withdrawals and deaths		(0.259	)		(0.407	)		(0.350	)		(0.455	)		(0.858	)	NM				(0.703	)		(1.663	)	NM
Net flows		0.358			0.243			0.419			0.465			(0.058	)	NM				1.601			0.826			-48.4	%
Transfers between fixed and variable accounts		0.016			(0.001	)		0.006			0.012			0.011			-31.3	%		0.013			0.029			123.1	%
Other (1)		-			-			0.186			-			-		NM				-			0.186
Investment increase and change in market value		1.173			0.439			0.503			(0.860	)		1.061			-9.5	%		1.818			0.704			-61.3	%
Balance as of End-of-Period	$	12.972		$	13.653		$	14.767		$	14.384		$	15.398			18.7	%	$	12.972		$	15.398			18.7	%
Total Multi-Fund® and Other Variable Annuities
Balance as of beginning-of-period	$	14.668		$	15.565		$	15.786		$	15.966		$	15.112			3.0	%	$	14.450		$	15.786			9.2	%
Gross deposits		0.196			0.203			0.196			0.189			0.185			-5.6	%		0.638			0.570			-10.7	%
Withdrawals and deaths		(0.381	)		(0.393	)		(0.426	)		(0.403	)		(0.391	)		-2.6	%		(1.181	)		(1.220	)		-3.3	%
Net flows		(0.185	)		(0.190	)		(0.230	)		(0.214	)		(0.206	)		-11.4	%		(0.543	)		(0.650	)		-19.7	%
Transfers between fixed and variable accounts		(0.001	)		(0.001	)		-			-			-			100.0	%		-			-		NM
Investment increase and change in market value		1.083			0.412			0.410			(0.640	)		0.830			-23.4	%		1.658			0.600			-63.8	%
Balance as of End-of-Period	$	15.565		$	15.786		$	15.966		$	15.112		$	15.736			1.1	%	$	15.565		$	15.736			1.1	%
Total Annuities and Mutual Funds (2)
Balance as of beginning-of-period	$	31.327		$	34.322		$	35.302		$	36.699		$	35.040			11.9	%	$	28.878		$	35.302			22.2	%
Gross deposits		1.103			1.158			1.307			1.374			1.262			14.4	%		3.794			3.943			3.9	%
Withdrawals and deaths		(0.959	)		(1.220	)		(1.198	)		(1.192	)		(1.540	)		-60.6	%		(2.737	)		(3.930	)		-43.6	%
Net flows		0.144			(0.062	)		0.109			0.182			(0.278	)	NM				1.057			0.013			-98.8	%
Transfers between fixed and variable accounts		0.015			-			0.005			0.012			0.010			-33.3	%		0.009			0.027			200.0	%
Other (1)		-			-			0.186			-			-		NM				-			0.186
Investment increase and change in market value		2.836			1.042			1.097			(1.853	)		2.316			-18.3	%		4.378			1.560			-64.4	%
Balance as of End-of-Period	$	34.322		$	35.302		$	36.699		$	35.040		$	37.088			8.1	%	$	34.322		$	37.088			8.1	%

(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 third party trustee-held assets as mentioned in note (1). 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.

9/30/2010  PAGE 23

Retirement Solutions - Defined Contribution
Account Value and Interest Rate Spread Information
Unaudited (in billions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits	$	0.227		$	0.224		$	0.236		$	0.250		$	0.272			19.8	%	$	0.787		$	0.758			-3.7	%
Withdrawals and deaths		(0.149	)		(0.201	)		(0.174	)		(0.245	)		(0.291	)		-95.3	%		(0.466	)		(0.710	)		-52.4	%
Net flows	$	0.078		$	0.023		$	0.062		$	0.005		$	(0.019	)	NM			$	0.321		$	0.048			-85.0	%
Fixed Contract Account Values	$	6.030		$	6.139		$	6.324		$	6.466		$	6.571			9.0	%	$	6.030		$	6.571			9.0	%
Fixed Portion of Variable Contracts
Deposits	$	0.079		$	0.075		$	0.080		$	0.077		$	0.077			-2.5	%	$	0.256		$	0.234			-8.6	%
Withdrawals and deaths		(0.178	)		(0.167	)		(0.167	)		(0.162	)		(0.163	)		8.4	%		(0.570	)		(0.492	)		13.7	%
Net flows	$	(0.099	)	$	(0.092	)	$	(0.087	)	$	(0.085	)	$	(0.086	)		13.1	%	$	(0.314	)	$	(0.258	)		17.8	%
Fixed Portion of Variable Contract Account Values	$	6.128		$	6.107		$	6.096		$	6.114		$	6.163			0.6	%	$	6.128		$	6.163			0.6	%
Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	0.466		$	0.488		$	0.521		$	0.439		$	0.445			-4.5	%	$	1.429		$	1.405			-1.7	%
Withdrawals and deaths		(0.649	)		(0.756	)		(0.804	)		(0.689	)		(0.636	)		2.0	%		(1.869	)		(2.129	)		-13.9	%
Net flows	$	(0.183	)	$	(0.268	)	$	(0.283	)	$	(0.250	)	$	(0.191	)		-4.4	%	$	(0.440	)	$	(0.724	)		-64.5	%
Variable Contract Account Values	$	18.748		$	19.060		$	19.346		$	18.081		$	19.119			2.0	%	$	18.748		$	19.119			2.0	%
Average Daily Variable Annuity Separate Account Values	$	11.881		$	12.726		$	12.909		$	12.855		$	12.471			5.0	%	$	10.839		$	12.744			17.6	%
Interest Rate Spread (1)																(Basis Point) Change									(Basis Point) Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (2)		5.85	%		5.72	%		5.71	%		5.73	%		5.71	%		(14	)		5.78	%		5.71	%		(7	)
Commercial mortgage loan prepayment and bond make whole premiums		0.08	%		0.08	%		0.01	%		0.04	%		0.04	%		(4	)		0.03	%		0.03	%		-
Alternative investments		0.03	%		0.02	%		0.02	%		0.02	%		0.01	%		(2	)		0.00	%		0.02	%		2
Net investment income yield on reserves		5.96	%		5.82	%		5.74	%		5.79	%		5.76	%		(20	)		5.81	%		5.76	%		(5	)
Interest rate credited to contract holders		3.66	%		3.63	%		3.58	%		3.51	%		3.47	%		(19	)		3.73	%		3.52	%		(21	)
Interest rate spread		2.30	%		2.19	%		2.16	%		2.28	%		2.29	%		(1	)		2.08	%		2.24	%		16

(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 fixed 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 September 30, 2009, and December 31, 2009, and the nine
	months ended September 30, 2009, reduced our yields by approximately 11 bps, 6 bps, and 15 bps respectively. There was no impact for the three months
	ended March 31, 2010, June 30, 2010, and September 30, 2010, or the nine months ended September 30, 2010.

9/30/2010																									PAGE 24
Insurance Solutions - Life Insurance
Income (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	93.5		$	115.2		$	112.3		$	107.5		$	107.5			15.0	%	$	277.3		$	327.3			18.0	%
Surrender charges		32.8			30.5			30.8			24.1			22.5			-31.4	%		81.1			77.4			-4.6	%
Mortality assessments		317.1			317.6			317.9			325.3			319.9			0.9	%		981.2			963.1			-1.8	%
Expense assessments		144.1			127.4			128.7			125.9			109.0			-24.4	%		363.6			363.6			0.0	%
Net investment income		495.3			528.2			530.1			545.0			542.8			9.6	%		1,446.3			1,617.9			11.9	%
Amortization of deferred loss on business sold through reinsurance		(0.7	)		1.4			-			-			-			100.0	%		(1.4	)		-			100.0	%
Other revenues and fees		7.4			6.0			8.5			8.2			6.2			-16.2	%		20.8			22.9			10.1	%
Total Operating Revenues		1,089.5			1,126.3			1,128.3			1,136.0			1,107.9			1.7	%		3,168.9			3,372.2			6.4	%
Operating Expenses
Interest credited		292.9			297.7			296.9			298.8			299.5			2.3	%		886.5			895.2			1.0	%
Benefits		320.7			374.6			398.9			374.2			561.0			74.9	%		999.4			1,334.1			33.5	%
Underwriting, acquisition, insurance and other expenses		284.3			221.9			230.5			241.8			167.6			-41.0	%		701.0			639.9			-8.7	%
Total Operating Expenses		897.9			894.2			926.3			914.8			1,028.1			14.5	%		2,586.9			2,869.2			10.9	%
Income (loss) from operations before federal income taxes		191.6			232.1			202.0			221.2			79.8			-58.4	%		582.0			503.0			-13.6	%
Federal income tax expense (benefit)		55.1			74.5			65.3			70.0			19.9			-63.9	%		170.4			155.2			-8.9	%
Income (Loss) from Operations	$	136.5		$	157.6		$	136.7		$	151.2		$	59.9			-56.1	%	$	411.6		$	347.8			-15.5	%
Effective Tax Rate		28.8	%		32.1	%		32.3	%		31.6	%		24.9	%					29.3	%		30.9	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	8,053.3		$	8,348.8		$	8,254.0		$	8,405.0		$	8,433.9					$	8,089.8		$	8,364.3
Average goodwill		2,188.5			2,188.5			2,188.5			2,188.5			2,188.5						2,188.5			2,188.5
Average equity, excluding goodwill	$	5,864.8		$	6,160.3		$	6,065.5		$	6,216.5		$	6,245.4					$	5,901.3		$	6,175.8
Return on Equity, Excluding AOCI
Including goodwill		6.8	%		7.6	%		6.6	%		7.2	%		2.8	%					6.8	%		5.5	%
Excluding goodwill		9.3	%		10.2	%		9.0	%		9.7	%		3.8	%					9.3	%		7.5	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	159.0		$	197.8		$	167.1		$	150.3		$	156.4			-1.6	%	$	477.8		$	473.8			-0.8	%
General and administrative expenses		112.9			122.8			107.4			112.9			123.7			9.6	%		333.6			344.0			3.1	%
Taxes, licenses and fees		30.7			28.5			32.2			27.2			31.1			1.3	%		86.9			90.5			4.1	%
Amortization of sales force intangibles		1.0			1.0			1.0			1.0			1.0			0.0	%		3.0			3.0			0.0	%
Total commissions and expenses incurred		303.6			350.1			307.7			291.4			312.2			2.8	%		901.3			911.3			1.1	%
Less: commissions and expenses capitalized		(213.4	)		(264.2	)		(223.0	)		(208.2	)		(213.0	)		0.2	%		(635.4	)		(644.2	)		-1.4	%
Amortization of DAC and VOBA, net of interest		194.1			136.0			145.8			158.6			68.4			-64.8	%		435.1			372.8			-14.3	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	284.3		$	221.9		$	230.5		$	241.8		$	167.6			-41.0	%	$	701.0		$	639.9			-8.7	%
General and Administrative Expenses - Basis Points on Average Account Values - Annualized		146			156			135			141			153			7			140			143			3
DAC and VOBA
Balance as of beginning-of-period	$	6,846.9		$	6,189.4		$	6,427.9		$	6,285.0		$	5,836.9					$	7,399.4		$	6,427.9
Business sold through reinsurance		-			-			-			-			-						(292.9	)		-
Deferrals		213.4			264.2			223.0			208.2			213.0						635.4			644.2
Amortization, net of interest:
Unlocking		(52.8	)		(3.7	)		(14.7	)		(2.1	)		29.2						(70.9	)		12.4
Other amortization, net of interest, excluding unlocking		(141.3	)		(132.3	)		(131.1	)		(156.5	)		(97.6	)					(364.3	)		(385.2	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		19.3			128.2			77.2			49.6			144.6						200.2			271.4
Adjustment related to realized (gains) losses		1.7			38.3			2.5			(4.5	)		23.1						62.8			21.1
Adjustment related to unrealized (gains) losses		(678.5	)		72.0			(222.6	)		(493.2	)		(466.0	)					(1,180.1	)		(1,181.8	)
Balance as of End-of-Period	$	6,189.4		$	6,427.9		$	6,285.0		$	5,836.9		$	5,538.6					$	6,189.4		$	5,538.6
DFEL
Balance as of beginning-of-period	$	1,014.0		$	1,057.8		$	1,155.2		$	1,154.0		$	1,106.3					$	888.7		$	1,155.2
Business sold through reinsurance		-			-			-			-			-						(11.0	)		-
Deferrals		108.2			133.8			118.3			114.1			122.7						305.4			355.1
Amortization, net of interest:
Unlocking		(27.9	)		(3.0	)		(8.1	)		(6.6	)		5.8						(31.5	)		(8.9	)
Other amortization, net of interest, excluding unlocking		(37.7	)		(36.0	)		(38.5	)		(41.7	)		(29.5	)					(99.4	)		(109.7	)
Deferrals, net of amortization included in operating expense assessments		42.6			94.8			71.7			65.8			99.0						174.5			236.5
Adjustment related to realized gains (losses)		0.3			3.1			0.1			(0.4	)		5.3						3.6			5.0
Adjustment related to unrealized gains (losses)		0.9			(0.5	)		(73.0	)		(113.1	)		(119.2	)					2.0			(305.3	)
Balance as of End-of-Period	$	1,057.8		$	1,155.2		$	1,154.0		$	1,106.3		$	1,091.4					$	1,057.8		$	1,091.4

9/30/2010																									PAGE 25
Insurance Solutions - Life Insurance
Additional Operational Data
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Sales by Product (in millions)
UL
Excluding MoneyGuard®	$	91.0		$	117.7		$	90.1		$	78.2		$	77.3			-15.1	%	$	278.6		$	245.6			-11.8	%
MoneyGuard®		18.4			23.3			18.5			23.0			26.5			44.0	%		43.7			68.0			55.6	%
Total		109.4			141.0			108.6			101.2			103.8			-5.1	%		322.3			313.6			-2.7	%
VUL		6.7			13.3			7.7			9.7			10.8			61.2	%		22.8			28.2			23.7	%
COLI and BOLI (1)		14.4			20.7			6.8			10.3			17.8			23.6	%		30.8			34.9			13.3	%
Term		15.7			19.8			19.5			18.6			16.0			1.9	%		39.2			54.1			38.0	%
Total	$	146.2		$	194.8		$	142.6		$	139.8		$	148.4			1.5	%	$	415.1		$	430.8			3.8	%
First Year Paid Premiums (in millions)
UL
Excluding MoneyGuard®	$	238.3		$	329.5		$	262.5		$	231.1		$	235.9			-1.0	%	$	685.0		$	729.5			6.5	%
MoneyGuard®		122.1			154.4			122.4			153.9			177.4			45.3	%		290.1			453.7			56.4	%
Total		360.4			483.9			384.9			385.0			413.3			14.7	%		975.1			1,183.2			21.3	%
VUL		10.2			38.6			17.1			23.3			30.3			197.1	%		55.5			70.7			27.4	%
COLI and BOLI (1)		33.8			46.9			11.9			23.7			59.9			77.2	%		101.9			95.5			-6.3	%
Term		15.7			19.8			19.5			18.6			16.0			1.9	%		39.2			54.1			38.0	%
Total	$	420.1		$	589.2		$	433.4		$	450.6		$	519.5			23.7	%	$	1,171.7		$	1,403.5			19.8	%
Life Insurance In Force
UL and other	$	289.124		$	291.879		$	292.204		$	293.013		$	294.171			1.7	%	$	289.124		$	294.171			1.7	%
Term insurance		242.889			248.726			254.115			259.450			262.583			8.1	%		242.889			262.583			8.1	%
Total	$	532.013		$	540.605		$	546.319		$	552.463		$	556.754			4.7	%	$	532.013		$	556.754			4.7	%
Interest-Sensitive Products Interest Rate Spreads(2)																(Basis Point) Change									(Basis Point) Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (3)		5.97	%		5.88	%		5.82	%		5.91	%		5.93	%		(4	)		5.95	%		5.89	%		(6	)
Commercial mortgage loan prepayment and bond make-whole premiums		0.04	%		0.07	%		0.05	%		0.07	%		0.03	%		(1	)		0.03	%		0.05	%		2
Alternative investments		-0.29	%		0.05	%		0.18	%		0.19	%		0.11	%		40			-0.35	%		0.16	%		51
Net investment income yield on reserves		5.72	%		6.00	%		6.05	%		6.17	%		6.07	%		35			5.63	%		6.10	%		47
Interest rate credited to contract holders		4.22	%		4.25	%		4.18	%		4.18	%		4.15	%		(7	)		4.22	%		4.17	%		(5	)
Interest rate spread		1.50	%		1.75	%		1.87	%		1.99	%		1.92	%		42			1.41	%		1.93	%		52
Traditional Products Interest Rate Spreads(4)
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses		5.98	%		6.01	%		6.23	%		6.11	%		5.99	%		1			5.98	%		6.12	%		14
Commercial mortgage loan prepayment and bond make-whole premiums		0.01	%		0.00	%		0.00	%		0.04	%		0.12	%		11			0.01	%		0.05	%		4
Alternative investments		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%		(1	)		0.00	%		0.01	%		1
Net investment income yield on reserves		6.01	%		6.02	%		6.25	%		6.16	%		6.12	%		11			5.99	%		6.18	%		19

(1)	COLI and BOLI are interest-sensitive and contain both UL and VUL products.
(2)	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.
(3)	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 September 30, 2009, December 31, 2009, March 31, 2010, and June 30, 2010, reduced our yields by approximately
	4 bps, 13 bps, 11 bps, 2 bps, respectively. There was no impact for the three months ended September 30, 2010. The increased cash and short-term investment balances for the
	nine months ended September 30, 2009 and 2010 reduced yields by approximately 5 bps and 2 bps, respectively.
(4)	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
	September 30, 2010, interest-sensitive products represented approximately 87% of total interest-sensitive and traditional earning assets.

9/30/2010																									PAGE 26
Insurance Solutions - Life Insurance
Account Value Roll Forwards
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Interest-Sensitive Life (1)
Balance as of beginning-of-period		27.709			27.825			28.192			28.355			28.584			3.2	%		27.502			28.192			2.5	%
Deposits		0.899			1.067			0.910			0.911			0.983			9.3	%		2.554			2.804			9.8	%
Withdrawals and deaths		(0.417	)		(0.296	)		(0.367	)		(0.314	)		(0.384	)		7.9	%		(1.166	)		(1.065	)		8.7	%
Net flows		0.482			0.771			0.543			0.597			0.599			24.3	%		1.388			1.739			25.3	%
Contract holder assessments		(0.657	)		(0.698	)		(0.673	)		(0.663	)		(0.687	)		-4.6	%		(1.933	)		(2.023	)		-4.7	%
Interest credited		0.291			0.294			0.293			0.295			0.298			2.4	%		0.868			0.886			2.1	%
Balance as of End-of-Period (Gross)		27.825			28.192			28.355			28.584			28.794			3.5	%		27.825			28.794			3.5	%
Reinsurance ceded		(0.923	)		(0.917	)		(0.911	)		(0.903	)		(0.899	)		2.6	%		(0.923	)		(0.899	)		2.6	%
Balance as of End-of-Period (Net of Ceded)	$	26.902		$	27.275		$	27.444		$	27.681		$	27.895			3.7	%	$	26.902		$	27.895			3.7	%
VUL
Balance as of beginning-of-period	$	4.562		$	5.176		$	5.287		$	5.467		$	5.027			10.2	%	$	4.251		$	5.287			24.4	%
Deposits		0.174			0.233			0.167			0.152			0.247			42.0	%		0.597			0.566			-5.2	%
Withdrawals and deaths		(0.095	)		(0.243	)		(0.108	)		(0.099	)		(0.121	)		-27.4	%		(0.327	)		(0.328	)		-0.3	%
Net flows		0.079			(0.010	)		0.059			0.053			0.126			59.5	%		0.270			0.238			-11.9	%
Contract holder assessments		(0.091	)		(0.092	)		(0.090	)		(0.089	)		(0.090	)		1.1	%		(0.273	)		(0.269	)		1.5	%
Investment income and change in market value		0.626			0.213			0.211			(0.404	)		0.499			-20.3	%		0.928			0.306			-67.0	%
Balance as of End-of-Period (Gross)		5.176			5.287			5.467			5.027			5.562			7.5	%		5.176			5.562			7.5	%
Reinsurance ceded		(0.807	)		(0.820	)		(0.837	)		(0.743	)		(0.803	)		0.5	%		(0.807	)		(0.803	)		0.5	%
Balance as of End-of-Period (Net of Ceded)	$	4.369		$	4.467		$	4.630		$	4.284		$	4.759			8.9	%	$	4.369		$	4.759			8.9	%
Total Life Insurance
Balance as of beginning-of-period	$	32.271		$	33.001		$	33.479		$	33.822		$	33.611			4.2	%	$	31.753		$	33.479			5.4	%
Deposits		1.073			1.300			1.077			1.063			1.230			14.6	%		3.151			3.370			7.0	%
Withdrawals and deaths		(0.512	)		(0.539	)		(0.475	)		(0.413	)		(0.505	)		1.4	%		(1.493	)		(1.393	)		6.7	%
Net flows		0.561			0.761			0.602			0.650			0.725			29.2	%		1.658			1.977			19.2	%
Contract holder assessments		(0.748	)		(0.790	)		(0.763	)		(0.752	)		(0.777	)		-3.9	%		(2.206	)		(2.292	)		-3.9	%
Investment income and change in market value		0.917			0.507			0.504			(0.109	)		0.797			-13.1	%		1.796			1.192			-33.6	%
Balance as of End-of-Period (Gross)		33.001			33.479			33.822			33.611			34.356			4.1	%		33.001			34.356			4.1	%
Reinsurance ceded		(1.730	)		(1.737	)		(1.748	)		(1.646	)		(1.702	)		1.6	%		(1.730	)		(1.702	)		1.6	%
Balance as of End-of-Period (Net of Ceded)	$	31.271		$	31.742		$	32.074		$	31.965		$	32.654			4.4	%	$	31.271		$	32.654			4.4	%

(1) Includes UL, interest-sensitive whole life and the fixed investment option of VUL products.

9/30/2010																									PAGE 27
Insurance Solutions - Group Protection
Income (Loss) from Operations and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	379.5		$	396.4		$	409.9		$	433.7		$	414.5			9.2	%	$	1,182.6		$	1,258.1			6.4	%
Mortality assessments		0.1			-			-			-			-			-100.0	%		0.1			-			-100.0	%
Net investment income		33.5			35.7			33.6			34.3			35.0			4.5	%		91.7			102.9			12.2	%
Other revenues and fees		1.5			1.5			1.7			2.1			2.0			33.3	%		4.5			5.8			28.9	%
Total Operating Revenues		414.6			433.6			445.2			470.1			451.5			8.9	%		1,278.9			1,366.8			6.9	%
Operating Expenses
Interest credited		0.5			0.7			0.5			0.1			-			-100.0	%		1.6			0.6			(0.6	)
Benefits		261.6			281.1			310.7			334.1			330.4			26.3	%		836.3			975.2			16.6	%
Underwriting, acquisition, insurance and other expenses		99.3			105.4			101.1			101.3			106.4			7.2	%		296.6			308.8			4.1	%
Total Operating Expenses		361.4			387.2			412.3			435.5			436.8			20.9	%		1,134.5			1,284.6			13.2	%
Income (loss) from operations before federal income taxes		53.2			46.4			32.9			34.6			14.7			-72.4	%		144.4			82.2			-43.1	%
Federal income tax expense (benefit)		18.7			16.3			11.5			11.9			5.2			-72.2	%		50.6			28.6			-43.5	%
Income (Loss) from Operations	$	34.5		$	30.1		$	21.4		$	22.7		$	9.5			-72.5	%	$	93.8		$	53.6			-42.9	%
Effective Tax Rate		35.2	%		35.1	%		35.0	%		34.4	%		35.4	%					35.0	%		34.8	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	1,056.8		$	1,061.7		$	1,075.0		$	1,107.7		$	1,138.2					$	1,039.7		$	1,107.0
Average goodwill		274.3			274.3			274.3			274.3			274.3						274.3			274.3
Average equity, excluding goodwill	$	782.5		$	787.4		$	800.7		$	833.4		$	863.9					$	765.4		$	832.7
Return on Equity, Excluding AOCI
Including goodwill		13.1	%		11.3	%		8.0	%		8.2	%		3.3	%					12.0	%		6.5	%
Excluding goodwill		17.6	%		15.3	%		10.7	%		10.9	%		4.4	%					16.3	%		8.6	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	43.3		$	44.5		$	46.9		$	46.9		$	47.5			9.7	%	$	131.1		$	141.3			7.8	%
General and administrative expenses		48.1			60.0			46.8			49.3			51.1			6.2	%		143.7			147.2			2.4	%
Taxes, licenses and fees		9.3			9.1			10.9			8.0			10.2			9.7	%		27.1			29.1			7.4	%
Total commissions and expenses incurred		100.7			113.6			104.6			104.2			108.8			8.0	%		301.9			317.6			5.2	%
Less: commissions and expenses capitalized		(12.8	)		(20.8	)		(14.6	)		(13.5	)		(12.7	)		0.8	%		(38.5	)		(40.8	)		-6.0	%
Amortization of DAC and VOBA, net of interest		11.4			12.6			11.1			10.6			10.3			-9.6	%		33.2			32.0			-3.6	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	99.3		$	105.4		$	101.1		$	101.3		$	106.4			7.2	%	$	296.6		$	308.8			4.1	%
General and Administrative Expenses as a Percentage of Premiums		12.7	%		15.1	%		11.4	%		11.4	%		12.3	%					12.2	%		11.7	%
DAC and VOBA
Balance as of beginning-of-period	$	149.8		$	151.2		$	159.5		$	163.0		$	165.9					$	145.9		$	159.5
Deferrals		12.8			20.9			14.6			13.5			12.7						38.5			40.8
Amortization, net of interest		(11.4	)		(12.6	)		(11.1	)		(10.6	)		(10.3	)					(33.2	)		(32.0	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		1.4			8.3			3.5			2.9			2.4						5.3			8.8
Balance as of End-of-Period	$	151.2		$	159.5		$	163.0		$	165.9		$	168.3					$	151.2		$	168.3
Annualized Sales by Product Line
Life	$	31.4		$	67.2		$	24.0		$	23.4		$	23.9			-23.9	%	$	75.2		$	71.3			-5.2	%
Disability		38.5			78.3			28.8			28.2			28.3			-26.5	%		91.3			85.3			-6.6	%
Dental		9.9			21.3			10.3			13.6			16.2			63.6	%		27.1			40.1			48.0	%
Total	$	79.8		$	166.8		$	63.1		$	65.2		$	68.4			-14.3	%	$	193.6		$	196.7			1.6	%
Insurance Premiums by Product Line
Life	$	142.2		$	152.1		$	157.2		$	160.3		$	158.4			11.4	%	$	432.0		$	475.9			10.2	%
Disability		173.0			174.1			178.3			181.7			181.9			5.1	%		518.1			541.9			4.6	%
Dental		36.2			37.7			39.5			40.8			42.6			17.7	%		110.9			122.9			10.8	%
Other		28.1			32.5			34.9			50.9			31.6			12.5	%		121.6			117.4			-3.5	%
Total	$	379.5		$	396.4		$	409.9		$	433.7		$	414.5			9.2	%	$	1,182.6		$	1,258.1			6.4	%
Income (Loss) from Operations by Product Line
Life	$	16.0		$	13.3		$	3.4		$	16.1		$	4.8			-70.0	%	$	29.1		$	24.3			-16.5	%
Disability		17.3			15.6			18.6			6.6			4.0			-76.9	%		63.3			29.2			-53.9	%
Dental		(0.6	)		1.1			(1.8	)		(1.4	)		(0.6	)		0.0	%		(3.2	)		(3.8	)		-18.8	%
Other		1.8			0.1			1.2			1.4			1.3			-27.8	%		4.6			3.9			-15.2	%
Total	$	34.5		$	30.1		$	21.4		$	22.7		$	9.5			-72.5	%	$	93.8		$	53.6			-42.9	%
Loss Ratios by Product Line
Life		66.6	%		69.6	%		82.4	%		69.7	%		79.2	%					72.8	%		77.1	%
Disability		66.8	%		67.5	%		65.5	%		78.6	%		79.2	%					62.8	%		74.5	%
Dental		79.7	%		76.6	%		86.1	%		84.4	%		79.3	%					83.4	%		83.2	%
Combined Loss Ratios		68.1	%		69.3	%		74.8	%		75.5	%		79.2	%					69.0	%		76.5	%

9/30/2010																									PAGE 28
Other Operations
Unaudited (in millions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	0.1		$	0.4		$	(0.3	)	$	0.3		$	0.1			0.0	%	$	3.6		$	0.1			-97.2	%
Net investment income		81.1			86.5			85.4			77.8			80.7			-0.5	%		220.6			243.9			10.6	%
Amortization of deferred gain on business sold through reinsurance (1)		18.3			18.3			18.2			18.0			18.1			-1.1	%		55.1			54.3			-1.5	%
Other revenues and fees		2.5			4.0			4.6			6.4			3.1			24.0	%		8.6			14.1			64.0	%
Communications revenues		17.2			16.7			15.5			18.1			19.6			14.0	%		51.1			53.2			4.1	%
Total Operating Revenues		119.2			125.9			123.4			120.6			121.6			2.0	%		339.0			365.6			7.8	%
Operating Expenses
Interest credited		32.9			32.8			33.6			28.1			27.8			-15.5	%		115.2			89.5			-22.3	%
Benefits		36.0			79.0			34.1			35.3			35.2			-2.2	%		178.7			104.6			-41.5	%
Underwriting, acquisition, insurance and other expenses		23.9			27.0			27.3			38.9			30.5			27.6	%		114.7			96.7			-15.7	%
Taxes, licenses and fees		(0.9	)		(20.2	)		1.5			(2.7	)		0.2			122.2	%		3.7			(1.0	)	NM
Interest and debt expenses		68.0			68.1			68.1			69.0			74.5			9.6	%		193.6			211.6			9.3	%
Communications expenses		13.3			12.9			13.8			14.5			14.9			12.0	%		39.6			43.2			9.1	%
Total Operating Expenses		173.2			199.6			178.4			183.1			183.1			5.7	%		645.5			544.6			-15.6	%
Income (Loss) from operations before federal income taxes		(54.0	)		(73.7	)		(55.0	)		(62.5	)		(61.5	)		-13.9	%		(306.5	)		(179.0	)		41.6	%
Federal income tax expense (benefit)		(21.4	)		(30.2	)		(18.4	)		(26.4	)		(21.8	)		-1.9	%		(113.1	)		(66.6	)		41.1	%
Income (Loss) From Operations	$	(32.6	)	$	(43.5	)	$	(36.6	)	$	(36.1	)	$	(39.7	)		-21.8	%	$	(193.4	)	$	(112.4	)		41.9	%
Run Off Institutional Pensions Account Values - Balance at End-of-Period	$	1.931		$	1.911		$	1.909		$	1.891		$	1.881			-2.6	%	$	1.931		$	1.881			-2.6	%

Discontinued Operations
Unaudited (in millions)
	For the Three Months Ended																For the Nine Months Ended
	Sept.			Dec.		March			June		Sept.			%			Sept.			Sept.			%
		2009			2009		2010			2010		2010		Change				2009			2010		Change
Discontinued Operations Before Disposal
Income (loss) from discontinued operations before federal income taxes	$	27.3		$	7.2	$	(16.9	)	$	4.2	$	-			-100.0	%	$	67.5		$	(12.7	)	NM
Federal income tax expense (benefit)		10.3			4.1		(2.6	)		1.5		-			-100.0	%		26.6			(1.1	)	NM
Income (Loss) From Discontinued Operations Before Disposal		17.0			3.1		(14.3	)		2.7		-			-100.0	%		40.9			(11.6	)	NM
Disposal
Gain (loss) on disposal before federal income taxes		16.7			1.0		64.8			-		1.2			-92.8	%		(220.3	)		66.0			130.0	%
Federal income tax expense (benefit)		(38.3	)		-		22.6			-		2.9			107.6	%		(105.3	)		25.5			124.2	%
Gain (Loss) on Disposal		55.0			1.0		42.2			-		(1.7	)	NM				(115.0	)		40.5			135.2	%
Income (Loss) From Discontinued Operations	$	72.0		$	4.1	$	27.9		$	2.7	$	(1.7	)	NM			$	(74.1	)	$	28.9			139.0	%

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

9/30/2010 PAGE 29

Consolidated Deposits, Net Flows and Account Balances
Unaudited (in billions)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Deposits
Retirement Solutions:
Annuities - fixed annuities (1)	$	2.025		$	1.195		$	1.138		$	1.501		$	1.774			-12.4	%	$	5.160		$	4.413			-14.5	%
Defined Contribution - fixed annuities		0.306			0.299			0.316			0.327			0.349			14.1	%		1.043			0.992			-4.9	%
Annuities - variable annuities		1.063			1.266			1.138			1.322			1.204			13.3	%		2.741			3.664			33.7	%
Defined Contribution - variable products (2)		0.797			0.859			0.991			1.047			0.913			14.6	%		2.751			2.951			7.3	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.899			1.067			0.910			0.911			0.983			9.3	%		2.554			2.804			9.8	%
VUL		0.174			0.233			0.167			0.152			0.247			42.0	%		0.597			0.566			-5.2	%
Total Deposits	$	5.264		$	4.919		$	4.660		$	5.260		$	5.470			3.9	%		14.846			15.390			3.7	%
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2009			2009			2010			2010			2010		Change				2009			2010		Change
Net Flows
Retirement Solutions:
Annuities - fixed annuities (1)	$	1.524		$	0.672		$	0.652		$	1.045		$	1.289			-15.4	%	$	3.247		$	2.986			-8.0	%
Defined Contribution - fixed annuities		(0.021	)		(0.069	)		(0.025	)		(0.079	)		(0.106	)	NM				0.007			(0.210	)	NM
Annuities - variable annuities		0.086			0.146			(0.077	)		0.108			(0.005	)	NM				(0.173	)		0.026			115.0	%
Defined Contribution - variable products (2)		0.165			0.007			0.134			0.261			(0.172	)	NM				1.050			0.223			-78.8	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.482			0.771			0.543			0.597			0.599			24.3	%		1.388			1.739			25.3	%
VUL		0.079			(0.010	)		0.059			0.053			0.126			59.5	%		0.270			0.238			-11.9	%
Total Net Flows	$	2.315		$	1.517		$	1.286		$	1.985		$	1.731			-25.2	%		5.789			5.002			-13.6	%
	As of
	Sept.			Dec.			March			June			Sept.			%
		2009			2009			2010			2010			2010		Change
Account Balances
Retirement Solutions:
Annuities - fixed annuities (1)	$	18.717		$	18.913		$	19.031		$	19.403		$	20.097			7.4	%
Defined Contribution - fixed annuities		12.158			12.246			12.420			12.580			12.734			4.7	%
Annuities - variable annuities		52.429			55.368			57.815			53.921			60.132			14.7	%
Defined Contribution - variable products (2)		22.164			23.056			24.279			22.460			24.354			9.9	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		26.902			27.275			27.444			27.681			27.895			3.7	%
VUL		4.369			4.467			4.630			4.284			4.759			8.9	%
Total Account Balances	$	136.739		$	141.325		$	145.619		$	140.329		$	149.971			9.7	%

(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.

9/30/2010																									PAGE 30
Consolidated Investment Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2009			2009			2010			2010			2010			Change			2009			2010			Change
Net Investment Income
Available-for-sale fixed maturity securities	$	904.7		$	903.4		$	905.5		$	918.2		$	946.6			4.6	%	$	2,584.2		$	2,770.3			7.2	%
Available-for-sale equity securities		1.8			2.2			1.8			1.2			1.2			-33.3	%		5.3			4.2			-20.8	%
Available-for-sale VIEs' fixed maturity securities		-			-			3.8			3.8			3.5		NM				-			11.1		NM
Trading securities		40.0			40.2			39.4			39.2			39.1			-2.3	%		118.6			117.7			-0.8	%
Mortgage loans on real estate		114.2			118.2			112.8			111.3			105.7			-7.4	%		353.4			329.8			-6.7	%
Real estate		3.6			8.1			6.6			5.4			6.2			72.2	%		10.9			18.2			67.0	%
Policy loans		41.9			43.2			42.1			43.4			41.4			-1.2	%		128.4			126.9			-1.2	%
Invested cash		1.0			1.6			1.4			1.8			2.3			130.0	%		13.4			5.5			-59.0	%
Other investments		(6.7	)		36.5			22.4			26.1			16.6		NM				(76.3	)		65.1			185.3	%
Investment income		1,100.5			1,153.4			1,135.8			1,150.4			1,162.6			5.6	%		3,137.9			3,448.8			9.9	%
Investment expense		(29.2	)		(31.1	)		(29.7	)		(30.6	)		(30.3	)		-3.8	%		(82.7	)		(90.6	)		-9.6	%
Net Investment Income	$	1,071.3		$	1,122.3		$	1,106.1		$	1,119.8		$	1,132.3			5.7	%	$	3,055.2		$	3,358.2			9.9	%
Average Invested Assets (Amortized Cost)	$	73,791.1		$	74,731.7		$	75,458.8		$	76,978.3		$	78,516.9					$	71,568.4		$	76,984.7
Net investment income yield on invested assets		5.81	%		6.01	%		5.86	%		5.82	%		5.77	%					5.69	%		5.82	%
Realized Gain (Loss) Related to Investments
Available-for-sale fixed maturity securities:
Gross gains	$	23.4		$	51.5		$	49.8		$	34.6		$	11.8			-49.6	%	$	109.9		$	96.2			-12.5	%
Gross losses		(165.9	)		(129.3	)		(83.6	)		(29.4	)		(61.3	)		63.1	%		(579.3	)		(174.3	)		69.9	%
Equity securities:
Gross gains		0.5			1.5			0.1			5.4			3.3		NM				4.1			8.8			114.6	%
Gross losses		(7.8	)		(10.9	)		(3.5	)		-			-			100.0	%		(16.4	)		(3.5	)		78.7	%
Gain (loss) on other investments		1.6			(72.0	)		(21.6	)		(8.0	)		(3.3	)	NM				(58.4	)		(32.9	)		43.7	%
Associated amortization of DAC, VOBA, DSI, DFEL and changes in other contract holder funds and funds withheld reinsurance liabilities		24.7			32.6			3.8			(7.7	)		23.4			-5.3	%		128.7			19.5			-84.8	%
Total realized gain (loss) on investments, pre-tax		(123.5	)		(126.6	)		(55.0	)		(5.1	)		(26.1	)		78.9	%		(411.4	)		(86.2	)		79.0	%
Federal income tax expense (benefit) (1)		(43.3	)		(44.3	)		(19.3	)		(1.8	)		(9.1	)		79.0	%		(144.0	)		(30.2	)		79.0	%
Total, After-Tax	$	(80.2	)	$	(82.3	)	$	(35.7	)	$	(3.3	)	$	(17.0	)		78.8	%	$	(267.4	)	$	(56.0	)		79.1	%
				As of September 30, 2010									As of December 31, 2009
				Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)				$	73,009.3			99.7	%				$	63,320.8			99.6	%
Fixed maturity securities (amortized cost)					67,660.9			99.7	%					63,097.0			99.4	%
Equity securities (fair value)					207.5			0.3	%					280.5			0.4	%
Equity securities (amortized cost)					176.0			0.3	%					383.7			0.6	%
% of Available-for-Sale Fixed Maturity Securities, Based on Fair Value
Treasuries and AAA								18.7	%								19.3	%
AA or better								28.4	%								27.3	%
BB or less								5.8	%								6.9	%
General Account Investments				As of September 30, 2010									As of December 31, 2009
				Amount			% of Total						Amount			% of Total
Fixed Maturities - Security Sector:
Corporate bonds				$	52,907.1			75.3	%				$	45,380.5			74.6	%
U.S. Government bonds					218.1			0.3	%					194.2			0.3	%
Foreign government bonds					525.4			0.8	%					504.9			0.8	%
Mortgage-backed securities					11,493.7			16.4	%					11,103.3			18.3	%
Asset-backed securities					161.0			0.2	%					479.8			0.8	%
State and municipal bonds					2,961.3			4.2	%					1,967.6			3.2	%
Hybrid and redeemable preferred securities					1,448.7			2.1	%					1,188.0			2.0	%
VIEs' fixed maturity securities					585.3			0.8	%					-			0.0	%
Total				$	70,300.6			100.0	%				$	60,818.3			100.0	%
	As of
Composition of Investment Portfolio	Sept. 2009			Dec. 2009			March 2010			June 2010			Sept. 2010			% Change
Available-for-sale securities, at fair value:
Fixed maturity	$	60,666.2		$	60,818.3		$	62,880.8		$	66,391.0		$	69,715.3			14.9	%
Equity		283.0			278.4			310.0			245.9			205.3			-27.5	%
VIEs' fixed maturity		-			-			579.5			581.4			585.3		NM
Trading securities		2,547.9			2,504.6			2,532.5			2,607.6			2,710.9			6.4	%
Mortgage loans on real estate and real estate		7,431.0			7,351.6			7,213.1			7,099.8			7,017.7			-5.6	%
Policy loans		2,893.0			2,897.8			2,902.8			2,901.8			2,879.1			-0.5	%
Derivative investments		1,282.0			1,010.1			992.4			1,988.9			1,903.9			48.5	%
Other investments		1,079.6			1,057.2			1,046.4			1,136.8			1,096.5			1.6	%
Total	$	76,182.7		$	75,918.0		$	78,457.5		$	82,953.2		$	86,114.0			13.0	%

(1)	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.

EX-99.3

Lincoln Financial Group
Available-For-Sale ("AFS") Securities by Industry Classifications
(in millions)
	As of September 30, 2010											As of June 30, 2010
					Unrealized				%							Unrealized				%
	Amortized		Unrealized		Losses		Fair		Fair			Amortized		Unrealized		Losses		Fair		Fair
Fixed Maturity AFS Securities	Cost		Gains		and OTTI		Value		Value			Cost		Gains		and OTTI		Value		Value
Industry corporate bonds:
Financial services	$	8,420	$	633	$	127	$	8,926		12.7	%	$	8,287	$	429	$	158	$	8,558		12.8	%
Basic industry		2,411		257		19		2,649		3.8	%		2,255		187		32		2,410		3.6	%
Capital goods		3,290		366		5		3,651		5.2	%		3,328		283		27		3,584		5.4	%
Communications		3,013		366		21		3,358		4.8	%		2,913		258		26		3,145		4.7	%
Consumer cyclical		2,750		269		46		2,973		4.2	%		2,584		221		48		2,757		4.1	%
Consumer non-cyclical		7,205		964		7		8,162		11.6	%		6,859		745		3		7,601		11.3	%
Energy		4,474		580		5		5,049		7.2	%		4,391		393		56		4,728		7.1	%
Technology		1,295		161		-		1,456		2.1	%		1,220		132		-		1,352		2.0	%
Transportation		1,282		155		1		1,436		2.0	%		1,268		117		5		1,380		2.1	%
Industrial other		834		75		6		903		1.3	%		807		61		6		862		1.3	%
Utilities		9,695		1,086		20		10,761		15.3	%		9,588		800		30		10,358		15.4	%
Corporate asset-backed securities ("ABS"):
Collateralized debt obligations ("CDOs") (1)		128		16		11		133		0.2	%		129		14		15		128		0.2	%
Commercial real estate ("CRE") CDOs		47		-		19		28		0.0	%		49		-		20		29		0.0	%
Credit card (1)		834		44		6		872		1.2	%		833		37		6		864		1.3	%
Home equity		1,031		8		286		753		1.1	%		1,047		4		324		727		1.1	%
Manufactured housing		113		4		3		114		0.2	%		116		4		4		116		0.2	%
Auto loan		201		4		-		205		0.3	%		214		4		-		218		0.3	%
Other		226		26		1		251		0.4	%		228		19		2		245		0.4	%
Commercial mortgage-backed securities ("CMBS")
Non-agency backed		2,275		118		250		2,143		3.0	%		2,314		93		274		2,133		3.2	%
Collateralized mortgage and other obligations ("CMOs")
Agency backed		4,126		388		-		4,514		6.4	%		4,190		376		-		4,566		6.8	%
Non-agency backed		1,787		17		282		1,522		2.2	%		1,798		12		361		1,449		2.2	%
Mortgage pass through securities ("MPTS"):
Agency backed		3,165		148		-		3,313		4.7	%		3,273		151		-		3,424		5.1	%
Non-agency backed		2		-		-		2		0.0	%		63		1		4		60		0.1	%
Municipals:
Taxable		2,766		200		8		2,958		4.2	%		2,425		121		12		2,534		3.8	%
Tax-exempt		3		-		-		3		0.0	%		6		-		-		6		0.0	%
Government and government agencies:
United States		990		161		-		1,151		1.6	%		1,030		130		5		1,155		1.7	%
Foreign		1,416		157		6		1,567		2.2	%		1,354		99		15		1,438		2.1	%
Hybrid and redeemable preferred stock		1,523		67		142		1,448		2.1	%		1,320		22		197		1,145		1.7	%
Total fixed maturity AFS securities		65,302		6,270		1,271		70,301		100.0	%		63,889		4,713		1,630		66,972		100.0	%
Equity AFS Securities		174		35		4		205					356		17		127		246
Total AFS securities		65,476		6,305		1,275		70,506					64,245		4,730		1,757		67,218
Trading Securities (2)		2,361		389		39		2,711					2,333		326		51		2,608
Total AFS and trading securities	$	67,837	$	6,694	$	1,314	$	73,217				$	66,578	$	5,056	$	1,808	$	69,826

(1)	Includes amortized cost of $568 million ABS Credit Card assets that were reclassified from ABS credit-linked notes ("CLN") assets as a result of adopting ASU 2009-17 as of January 1, 2010. Refer to Note 4, "Variable Interest Entities," of our March 31, 2010
	Form 10-Q for further details.
(2)	Certain of our trading securities support our modified coinsurance arrangements ("Modco") and the investment results are passed directly to the reinsurers. Refer to the "Trading Securities" section of our 2009 Form 10-K for further details.

Lincoln Financial Group
AFS Securities Backed by Pools of Residential Mortgages
As of September 30, 2010
(in millions)
	Prime Agency				Prime/Non-Agency				Alt-A				Subprime				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Type
CMOs and MPTS	$	7,827	$	7,291	$	1,029	$	1,186	$	495	$	603	$	-	$	-	$	9,351	$	9,080
ABS home equity		5		5		-		-		283		364		465		662		753		1,031
Total by type (1)(2)	$	7,832	$	7,296	$	1,029	$	1,186	$	778	$	967	$	465	$	662	$	10,104	$	10,111
Rating
AAA	$	7,815	$	7,281	$	283	$	285	$	131	$	139	$	198	$	206	$	8,427	$	7,911
AA		-		-		32		38		96		109		33		35		161		182
A		17		15		9		10		55		61		16		25		97		111
BBB		-		-		50		56		7		7		32		49		89		112
BB and below		-		-		655		797		489		651		186		347		1,330		1,795
Total by rating (1)(2)(3)	$	7,832	$	7,296	$	1,029	$	1,186	$	778	$	967	$	465	$	662	$	10,104	$	10,111

Origination Year
2004 and prior	$	2,578	$	2,392	$	300	$	319	$	292	$	328	$	230	$	283	$	3,400	$	3,322
2005		903		821		190		230		227		281		173		240		1,493		1,572
2006		282		258		207		225		209		283		60		136		758		902
2007		1,197		1,072		332		412		50		75		-		-		1,579		1,559
2008		314		288		-		-		-		-		-		-		314		288
2009		1,495		1,433		-		-		-		-		2		3		1,497		1,436
2010		1,063		1,032		-		-		-		-		-		-		1,063		1,032
Total by origination year (1)(2)	$	7,832	$	7,296	$	1,029	$	1,186	$	778	$	967	$	465	$	662	$	10,104	$	10,111

(1)	Does not include fair value of trading securities totaling $290 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $290 million in trading securities consisted of
	$260 million prime, $17 million Alt-A and $13 million subprime.
(2)	Does not include amortized cost of trading securities totaling $287 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $287 million in trading securities consisted of $251 million prime, $20 million Alt-A and $16 million subprime.
(3)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch Ratings ("Fitch"), Moody's Investors Service ("Moody's") and Standard & Poor's ("S&P")) or are based on internal ratings for those securities where external ratings are not available.  For securities where the ratings assigned by the major rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
AFS Securities Backed by Pools of Residential Mortgages
As of September 30, 2010
(in millions)
Prime Agency and Non-Agency
	AAA (3)				AA (3)				A(3)				BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	2,823	$	2,643	$	27	$	33	$	26	$	25	$	1	$	2	$	1	$	8	$	2,878	$	2,711
2005		909		827		-		-		-		-		49		54		135		170		1,093		1,051
2006		296		271		5		5		-		-		-		-		188		207		489		483
2007		1,198		1,072		-		-		-		-		-		-		331		412		1,529		1,484
2008		314		288		-		-		-		-		-		-		-		-		314		288
2009		1,495		1,433		-		-		-		-		-		-		-		-		1,495		1,433
2010		1,063		1,032		-		-		-		-		-		-		-		-		1,063		1,032
Total by origination year (1)(2)	$	8,098	$	7,566	$	32	$	38	$	26	$	25	$	50	$	56	$	655	$	797	$	8,861	$	8,482
Alt-A
	AAA (3)				AA (3)					A(3)			BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	125	$	127	$	87	$	99	$	45	$	50	$	7	$	7	$	28	$	45	$	292	$	328
2005		6		12		-		-		10		11		-		-		211		258		227		281
2006		-		-		9		10		-		-		-		-		200		273		209		283
2007		-		-		-		-		-		-		-		-		50		75		50		75
Total by origination year (1)(2)	$	131	$	139	$	96	$	109	$	55	$	61	$	7	$	7	$	489	$	651	$	778	$	967
Subprime
	AAA (3)				AA (3)					A(3)			BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	153	$	157	$	28	$	30	$	8	$	17	$	2	$	6	$	39	$	73	$	230	$	283
2005		45		49		5		5		8		8		30		43		85		135		173		240
2006		-		-		-		-		-		-		-		-		60		136		60		136
2009		-		-		-		-		-		-		-		-		2		3		2		3
Total by origination year (1)(2)	$	198	$	206	$	33	$	35	$	16	$	25	$	32	$	49	$	186	$	347	$	465	$	662

(1)	Does not include fair value of trading securities totaling $290 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $290 million in trading securities consisted of
	$260 million prime, $17 million Alt-A and $13 million subprime.
(2)	Does not include amortized cost of trading securities totaling $287 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $287 million in trading securities
	consisted of $251 million prime, $20 million Alt-A and $16 million subprime.
(3)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody's and S&P) or are based on internal ratings for those securities where external ratings are not available. For securities where the ratings assigned by the
	major rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
AFS Securities Backed by Pools of Consumer Loan ABS
As of September 30, 2010
(in millions)
	Credit Card (1)				Auto Loans				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost
Rating
AAA	$	846	$	808	$	205	$	201	$	1,051	$	1,009
BBB		26		26		-		-		26		26
Total by rating (1)(2)(3)	$	872	$	834	$	205	$	201	$	1,077	$	1,035

(1)	Includes amortized cost of $568 million ABS Credit Card assets that were reclassified from ABS CLN assets as a result of adopting ASU 2009-17 as of January 1, 2010. Refer to Note 4, "Variable Interest Entities," of our March 31, 2010 Form 10-Q for further
	details.
(2)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody’s and S&P) or are based on internal ratings for those securities where external ratings are not available. For securities where the ratings assigned by the major
	rating agencies are not equivalent, the second highest of the three ratings assigned is used.
(3)	Does not include the fair value of trading securities totaling $3 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $3 million in trading securities consisted of
	credit card securities.

Lincoln Financial Group
AFS Securities Backed by Pools of Commercial Mortgages
As of September 30, 2010
(in millions)
	Multiple Property				Single Property				CRE CDOs				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost
Type
CMBS	$	2,069	$	2,163	$	74	$	112	$	-	$	-	$	2,143	$	2,275
CRE CDOs		-		-		-		-		28		47		28		47
Total by type (1)	$	2,069	$	2,163	$	74	$	112	$	28	$	47	$	2,171	$	2,322
Rating
AAA	$	1,429	$	1,330	$	28	$	27	$	-	$	-	$	1,457	$	1,357
AA		269		267		8		10		-		-		277		277
A		136		142		13		13		5		6		154		161
BBB		101		113		6		6		15		18		122		137
BB and below		134		311		19		56		8		23		161		390
Total by rating (1)(2)	$	2,069	$	2,163	$	74	$	112	$	28	$	47	$	2,171	$	2,322

Origination Year
2004 and prior	$	1,335	$	1,339	$	43	$	44	$	8	$	9	$	1,386	$	1,392
2005		384		399		29		60		12		15		425		474
2006		150		209		2		8		8		23		160		240
2007		153		170		-		-		-		-		153		170
2010		47		46		-		-		-		-		47		46
Total by origination year (1)	$	2,069	$	2,163	$	74	$	112	$	28	$	47	$	2,171	$	2,322

	AAA (2)				AA (2)				A (2)				BBB (2)				BB & Below (2)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	974	$	927	$	237	$	238	$	76	$	81	$	28	$	30	$	71	$	116	$	1,386	$	1,392
2005		324		292		19		20		6		6		38		49		38		107		425		474
2006		84		75		11		9		8		7		25		27		32		122		160		240
2007		75		63		10		10		17		21		31		31		20		45		153		170
2010		-		-		-		-		47		46		-		-		-		-		47		46
Total by origination year (1)	$	1,457	$	1,357	$	277	$	277	$	154	$	161	$	122	$	137	$	161	$	390	$	2,171	$	2,322

(1)	Does not include the fair value of trading securities totaling $75 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $75 million in trading securities consisted of
	$72 million CMBS and $3 million CRE CDOs.
(2)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody’s and S&P) or are based on internal ratings for those securities where external ratings are not available. For securities where the ratings assigned by the major
	rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
Commercial Mortgage Loan Portfolio, Net of Reserves
As of September 30, 2010
(in millions)
Property Type	Carrying Value		%			State Exposure	Carrying Value		%
Office building	$	2,330		34.3	%	CA	$	1,443		21.2	%
Industrial		1,818		26.7	%	TX		598		8.8	%
Retail		1,597		23.5	%	MD		427		6.3	%
Apartment		637		9.4	%	FL		314		4.6	%
Hotel/Motel		192		2.8	%	VA		309		4.5	%
Mixed use		131		1.9	%	TN		291		4.3	%
Other commercial		94		1.4	%	WA		278		4.1	%
Total	$	6,799		100.0	%	AZ		264		3.9	%
						NC		255		3.8	%
						GA		233		3.4	%
	Carrying					IL		217		3.2	%
Geographic Region	Value		%			PA		199		2.9	%
Pacific	$	1,825		26.9	%	NV		189		2.8	%
South Atlantic		1,672		24.6	%	OH		187		2.8	%
Mountain		641		9.4	%	IN		159		2.3	%
East North Central		641		9.4	%	MN		147		2.2	%
West South Central		631		9.3	%	NJ		135		2.0	%
Middle Atlantic		430		6.3	%	SC		120		1.8	%
East South Central		415		6.1	%	MA		116		1.7	%
West North Central		378		5.6	%	OR		104		1.5	%
New England		166		2.4	%	Other states under 2%		814		11.9	%
Total	$	6,799		100.0	%	Total	$	6,799		100.0	%

	Lincoln Financial Group
	Exposure to Monoline Insurers
	As of September 30, 2010
	(in millions)
										Total
						Total		Total		Unrealized		Total
		Direct		Insured		Amortized		Unrealized		Loss		Fair
		Exposure (1)		Bonds (2)		Cost		Gain		and OTTI		Value
Monoline Name
AMBAC		$	-	$	241	$	241	$	6	$	51	$	196
ASSURED GUARANTY LTD			30		-		30		-		18		12
FGIC			-		84		84		2		24		62
FSA			-		47		47		1		1		47
MBIA			12		145		157		19		13		163
MGIC			-		5		5		-		-		5
PMI GROUP INC			24		-		24		-		7		17
RADIAN GROUP INC			16		-		16		-		2		14
XL CAPITAL LTD			72		63		135		3		9		129
Total by Monoline insurer (3)		$	154	$	585	$	739	$	31	$	125	$	645

(1)	Additional direct exposure through credit default swaps with a notional value totaling $20 million is excluded from this table.
(2)	Additional indirect insured exposure through structured securities is excluded from this table.
(3)	Does not include the fair value of trading securities totaling $32 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $32 million in trading securities consisted
	of $12 million of direct exposure and $20 million of insured exposure. This table also excludes insured exposure totaling $11 million for a guaranteed investment tax credit partnership.