Lincoln Financial Group
Table of Contents
Analyst Coverage		1
Notes		2
Consolidated Statements of Income (Loss)		3
Consolidated Balance Sheets		4
Earnings, Shares, Return on Equity and Return to Stockholder Highlights		5
Income (Loss) from Operations, Average Equity and ROE By Segment		6
Select Earnings Drivers By Segment		7
Deposits, Net Flows and Account Balances By Segment		8
Sales By Segment		9
Operating Revenues and General and Administrative Expenses By Segment		10
Operating Commissions and Other Expenses		11
Interest Rate Yields and Spreads By Segment		12
Select Investment Data		13
Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC		14
Select Liquidity and Ratings Agency Data		15
Select Earnings and Operational Data:
	Annuities	16
	Retirement Plan Services	17
	Life Insurance	18
	Group Protection	19
	Other Operations and Discontinued Operations	20
DAC, VOBA, DSI and DFEL Roll Forwards:
	Consolidated	21
	Annuities	22
	Retirement Plan Services, Life Insurance and Group Protection	23
Account Value Roll Forwards:
	Annuities	24
	Retirement Plan Services	25
	Life Insurance	26
Select Non-GAAP to GAAP Reconciliations		27

Lincoln Financial Group
Analyst Coverage
Firm	Analyst	Phone Number
Bank of America - Merrill Lynch	Seth Weiss	646-855-3783
Barclays Capital	Jay Gelb	212-526-1561
Citi Research	Erik Bass	212-816-5257
Credit Suisse	Tom Gallagher	212-538-2010
Deutsche Bank	Yaron Kinar	212-250-7927
Dowling and Partners	Ryan Krueger	860-676-8600
Evercore Partners	Mark Finkelstein	312-445-6440
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 Capital	Sean Dargan	212-231-0663
Morgan Stanley	Nigel Dally	212-761-4132
Raymond James and Associates	Steven Schwartz	312-612-7686
RBC Capital	Eric Berg	212-618-7593
Sandler O'Neil and Partners	Edward Shields	312-281-3487
Scotia Capital	Joanne Smith	212-225-5071
Sterne, Agee and Leach, Inc.	John Nadel	212-338-4717
UBS	Suneet Kamath	212-713-1355
Wells Fargo Securities	John Hall	212-214-8032
Investor Inquiries May Be Directed To
Jim Sjoreen, Senior 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 Supplement will be available immediately after the release of earnings for each quarter through our Investor Relations website:  www.LincolnFinancial.com/investor.

Page 1

Lincoln Financial Group
Notes
Computations
The quarterly financial information for the current year may not sum to the corresponding year-to-date amount because both are rounded to millions.
The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.
If the effect of equity classification would result in a more dilutive EPS, the numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans.  In addition, for any period where a loss from continuing operations is experienced, shares used in the diluted EPS calculation represent basic shares, as using dilutive shares would be anti-dilutive to the calculation.  In these periods, we would also exclude the deferred compensation adjustment.
Return on equity ("ROE") measures how efficiently we generate profits from the resources provided by our net assets.  ROE is calculated by dividing annualized net income (loss) (or income (loss) from operations) by average equity, excluding accumulated other comprehensive income (loss) ("AOCI").  Management evaluates consolidated ROE by both including and excluding the effect of average goodwill.
Book value per share, excluding AOCI, is calculated by dividing stockholders' equity, excluding AOCI, by common shares outstanding assuming the conversion of our 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.
Definitions
Holding company available liquidity consists of cash and cash equivalents, excluding cash held as collateral, investments maturing in one year or less at origination and receivables under the inter-company cash management program, less payables under the inter-company cash management program, payables from purchases of securities not settled as of the balance sheet date and commercial paper outstanding.
Sales as reported consist of the following:
	•	MoneyGuard® (our linked-benefit product) – 15% of single premium deposits;
	•	MoneyGuard® (flexible premium option), 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;
	•	Term - 100% of first year paid premiums;
	•	Annuities - deposits from new and existing customers; and
	•	Group Protection - annualized first year premiums from new policies.
Throughout the document, "after-DAC" refers to the associated amortization expense of deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI") and deferred front-end loads ("DFEL") and changes in other contract holder funds.

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Lincoln Financial Group
Notes
Non-GAAP Performance Measures
Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.
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)"):
		▪	Sales or disposals and impairments of securities;
		▪	Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities ("gain (loss) on the mark-to-market on certain instruments");
		▪	Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit ("GDB") riders reflected within variable annuity net derivative results;
		▪	Changes in the fair value of the embedded derivatives of our guaranteed living benefit ("GLB") riders accounted for at fair value, net of the change in the fair value of the derivatives we own to hedge them reflected within variable annuity 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 at fair value ("indexed annuity forward-starting option");
	•	Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders ("benefit ratio unlocking") reflected within variable annuity net derivative results;
	•	Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
	•	Gains (losses) on early extinguishment of debt;
	•	Losses from the impairment of intangible assets;
	•	Income (loss) from discontinued operations; and
	•	Income (loss) from the initial adoption of new accounting standards.
Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items:
	•	Excluded realized gain (loss);
	•	Revenue adjustments from the initial adoption of new accounting standards;
	•	Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and
	•	Amortization of deferred gains arising from reserve changes on business sold through reinsurance.
We use our 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.
Management believes that the non-GAAP performance measures discussed above 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 many 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 from operations provide investors with more valuable measures of our performance because they better reveal trends in our business.
Statistical Supplement is Dated
The financial data in this document is dated July 31, 2013, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.

Page 2b

Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Revenues
Insurance premiums	$	630		$	606		$	637		$	654		$	674			7.0	%	$	1,219		$	1,328			8.9	%
Insurance fees		885			990			957			958			983			11.1	%		1,788			1,941			8.6	%
Net investment income		1,197			1,146			1,190			1,150			1,213			1.3	%		2,362			2,363			0.0	%
Realized gain (loss):
Other-than-temporary impairment ("OTTI")		(33	)		(32	)		(41	)		(14	)		(19	)		42.4	%		(80	)		(33	)		58.8	%
Realized gain (loss), excluding OTTI		76			102			88			(45	)		2		NM				37			(43	)	NM
Total realized gain (loss)		43			70			47			(59	)		(17	)	NM				(43	)		(76	)		-76.7	%
Amortization of deferred gains on business sold through reinsurance		19			19			19			19			19			0.0	%		37			37			0.0	%
Other revenues and fees		124			123			123			117			127			2.4	%		245			245			0.0	%
Total revenues		2,898			2,954			2,973			2,839			2,999			3.5	%		5,608			5,838			4.1	%
Expenses
Interest credited		617			611			615			617			627			1.6	%		1,244			1,244			0.0	%
Benefits		943			810			937			958			991			5.1	%		1,795			1,950			8.6	%
Commissions and other expenses		828			1,047			951			895			898			8.5	%		1,684			1,792			6.4	%
Interest and debt expense		68			68			70			64			65			-4.4	%		135			129			-4.4	%
Total expenses		2,456			2,536			2,573			2,534			2,581			5.1	%		4,858			5,115			5.3	%
Income (loss) from continuing operations before taxes		442			418			400			305			418			-5.4	%		750			723			-3.6	%
Federal income tax expense (benefit)		121			18			80			66			101			-16.5	%		185			167			-9.7	%
Income (loss) from continuing operations		321			400			320			239			317			-1.2	%		565			556			-1.6	%
Income (loss) from discontinued operations		-			28			-			-			-		NM				(1	)		-			100.0	%
Net income (loss)		321			428			320			239			317			-1.2	%		564			556			-1.4	%
Adjustment for LNC stock units in our deferred compensation plans		(4	)		-			-			-			-			100.0	%		2			-			-100.0	%
Net income (loss) available to common stockholders - diluted	$	317		$	428		$	320		$	239		$	317			0.0	%	$	566		$	556			75.4	%
Earnings (Loss) Per Common Share - Diluted
Income (loss) from continuing operations	$	1.09		$	1.41		$	1.14		$	0.86		$	1.15			5.5	%	$	1.93		$	2.01			4.1	%
Income (loss) from discontinued operations		-			0.10			-			-			-		NM				-			-		NM
Net income (loss)	$	1.09		$	1.51		$	1.14		$	0.86		$	1.15			5.5	%	$	1.93		$	2.01			4.1	%

Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	6/30/12		9/30/12		12/31/12		3/31/13		6/30/13		Change
ASSETS
Investments:
Available-for-sale ("AFS") securities:
Corporate bonds	$	63,914	$	66,476	$	68,016	$	69,274	$	67,938		6.3	%
U.S. government bonds		517		508		442		432		408		-21.1	%
Foreign government bonds		664		661		654		626		564		-15.1	%
Mortgage-backed securities		8,504		7,863		7,174		6,542		5,961		-29.9	%
Asset-backed collateralized debt obligations		120		147		180		173		165		37.5	%
State and municipal bonds		4,284		4,338		4,353		4,430		4,048		-5.5	%
Hybrid and redeemable preferred securities		1,188		1,186		1,217		1,234		1,151		-3.1	%
VIEs' fixed maturity securities		705		706		708		708		698		-1.0	%
Equity securities		154		156		157		148		209		35.7	%
Total AFS securities		80,050		82,041		82,901		83,567		81,142		1.4	%
Trading securities		2,649		2,650		2,554		2,528		2,391		-9.7	%
Mortgage loans on real estate		6,804		6,690		7,029		7,057		7,033		3.4	%
Real estate		116		112		65		65		60		-48.3	%
Policy loans		2,829		2,780		2,766		2,727		2,700		-4.6	%
Derivative investments		3,399		3,072		2,652		2,268		1,683		-50.5	%
Other investments		1,041		1,123		1,098		1,073		1,158		11.2	%
Total investments		96,888		98,468		99,065		99,285		96,167		-0.7	%
Cash and invested cash		5,257		4,373		4,230		3,107		2,574		-51.0	%
DAC and VOBA		6,505		5,813		6,667		6,936		8,214		26.3	%
Premiums and fees receivable		388		366		380		440		430		10.8	%
Accrued investment income		1,021		1,067		1,015		1,078		1,052		3.0	%
Reinsurance recoverables		6,601		6,424		6,449		6,489		6,385		-3.3	%
Funds withheld reinsurance assets		863		846		837		798		788		-8.7	%
Goodwill		2,273		2,273		2,273		2,273		2,273		0.0	%
Other assets		2,475		2,502		2,580		2,569		2,655		7.3	%
Separate account assets		88,839		93,326		95,373		101,366		102,783		15.7	%
Total assets	$	211,110	$	215,458	$	218,869	$	224,341	$	223,321		5.8	%

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Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	19,930		$	19,232		$	19,780		$	19,149		$	18,214			-8.6	%
Other contract holder funds		70,422			70,706			72,218			72,760			73,830			4.8	%
Short-term debt		300			200			200			706			506			68.7	%
Long-term debt by rating agency leverage definitions:
Operating (see note (1) on page 15 for details)		1,122			1,122			1,122			1,122			1,122			0.0	%
Financial		4,597			4,372			4,317			3,767			3,928			-14.6	%
Reinsurance related embedded derivatives		185			215			215			199			131			-29.2	%
Funds withheld reinsurance liabilities		999			987			940			926			926			-7.3	%
Deferred gain on business sold through reinsurance		356			338			319			301			282			-20.8	%
Payables for collateral on investments		5,070			4,566			4,181			4,107			4,252			-16.1	%
VIEs' liabilities		231			174			128			113			101			-56.3	%
Other liabilities		5,020			5,100			5,103			4,963			3,929			-21.7	%
Separate account liabilities		88,839			93,326			95,373			101,366			102,783			15.7	%
Total liabilities		197,071			200,338			203,896			209,479			210,004			6.6	%
Stockholders' Equity
Common stock		7,310			7,214			7,121			7,043			6,937			-5.1	%
Retained earnings		3,350			3,756			4,044			4,238			4,487			33.9	%
AOCI:
Unrealized gain (loss) on AFS securities		3,627			4,354			4,066			3,777			2,033			-43.9	%
Unrealized OTTI on AFS securities		(117	)		(99	)		(107	)		(87	)		(84	)		28.2	%
Unrealized gain (loss) on derivative instruments		150			177			163			203			259			72.7	%
Foreign currency translation adjustment		(4	)		(3	)		(4	)		(6	)		(5	)		-25.0	%
Funded status of employee benefit plans		(277	)		(279	)		(310	)		(306	)		(310	)		-11.9	%
Total AOCI		3,379			4,150			3,808			3,581			1,893			-44.0	%
Total stockholders' equity		14,039			15,120			14,973			14,862			13,317			-5.1	%
Total liabilities and stockholders' equity	$	211,110		$	215,458		$	218,869		$	224,341		$	223,321			5.8	%

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Lincoln Financial Group
Earnings, Shares, Return on Equity and Return to Stockholder Highlights
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended																		As of or For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Income (Loss)
Income (loss) from operations	$	319		$	362		$	310		$	285		$	351			10.0	%	$	612		$	635			3.8	%
Net income (loss)		321			428			320			239			317			-1.2	%		564			556			-1.4	%
Earnings (Loss) Per Diluted Share
Income (loss) from operations	$	1.09		$	1.27		$	1.10		$	1.02		$	1.27			16.5	%	$	2.09		$	2.29			9.6	%
Net income (loss)		1.09			1.51			1.14			0.86			1.15			5.5	%		1.93			2.01			4.1	%
Average Stockholders' Equity
Average equity, including AOCI	$	13,579		$	14,580		$	15,048		$	14,918		$	14,089			3.8	%	$	13,345		$	14,504			8.7	%
Average AOCI		3,000			3,764			3,979			3,695			2,737			-8.8	%		2,825			3,216			13.8	%
Average equity, excluding AOCI	$	10,579		$	10,816		$	11,069		$	11,223		$	11,352			7.3	%	$	10,520		$	11,288			7.3	%
ROE
Income (loss) from operations		12.1	%		13.4	%		11.2	%		10.2	%		12.4	%					11.6	%		11.3	%
Net income (loss)		12.2	%		15.8	%		11.6	%		8.5	%		11.2	%					10.7	%		9.9	%
Per Share
Dividends declared during the period	$	0.08		$	0.08		$	0.12		$	0.12		$	0.12			50.0	%	$	0.16		$	0.24			50.0	%
Book value, including AOCI		50.26			54.94			55.14			55.33			50.37			0.2	%		50.26			50.37			0.2	%
Book value, excluding AOCI		38.16			39.86			41.11			42.00			43.21			13.2	%		38.16			43.21			13.2	%
Shares
Repurchased during the period		6.5			4.2			3.8			3.4			4.3			-33.2	%		12.5			7.7			-38.4	%
Average for the period - diluted		290.0			284.7			281.1			278.6			275.7			-4.9	%		293.5			277.1			-5.6	%
End-of-period - assuming conversion of preferred		279.3			275.2			271.6			268.6			264.4			-5.3	%		279.3			264.4			-5.3	%
End-of-period - diluted		286.8			282.4			279.1			277.2			273.9			-4.5	%		286.8			273.9			-4.5	%
Cash Returned to Common Stockholders
Shares repurchased	$	150		$	100		$	92		$	100		$	150			0.0	%	$	300		$	250			-16.7	%
Common dividends		23			22			22			33			32			39.1	%		46			65			41.3	%
Total cash returned to common stockholders	$	173		$	122		$	114		$	133		$	182			5.2	%	$	346		$	315			-9.0	%

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Lincoln Financial Group
Income (Loss) from Operations, Average Equity and ROE By Segment
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Income (Loss) from Operations
Annuities	$	158		$	139		$	162		$	159		$	195			23.4	%	$	294		$	353			20.1	%
Retirement Plan Services		38			29			28			35			39			2.6	%		73			75			2.7	%
Life Insurance		135			152			147			112			135			0.0	%		275			247			-10.2	%
Group Protection		27			16			13			14			22			-18.5	%		43			37			-14.0	%
Other Operations		(39	)		26			(40	)		(35	)		(40	)		-2.6	%		(73	)		(77	)		-5.5	%
Income (loss) from operations	$	319		$	362		$	310		$	285		$	351			10.0	%	$	612		$	635			3.8	%
Average Equity, Excluding AOCI
Segment equity, excluding goodwill:
Annuities	$	3,091		$	3,110		$	3,053		$	2,977		$	2,978			-3.7	%	$	3,026		$	2,978			-1.6	%
Retirement Plan Services		1,001			1,031			941			908			970			-3.1	%		956			939			-1.8	%
Life Insurance		5,805			5,879			5,919			5,998			6,125			5.5	%		5,730			6,062			5.8	%
Group Protection		927			955			992			1,036			1,062			14.6	%		916			1,049			14.5	%
Total segment equity, excluding goodwill		10,824			10,975			10,905			10,919			11,135			2.9	%		10,628			11,028			3.8	%
Other Operations and goodwill		(245	)		(159	)		164			304			217			188.6	%		(108	)		260		NM
Total average equity, excluding AOCI	$	10,579		$	10,816		$	11,069		$	11,223		$	11,352			7.3	%	$	10,520		$	11,288			7.3	%
ROE
Segment ROE, excluding goodwill:
Annuities		20.4	%		17.9	%		21.2	%		21.3	%		26.1	%					19.4	%		23.7	%
Retirement Plan Services		15.1	%		11.2	%		12.0	%		15.5	%		16.2	%					15.2	%		15.9	%
Life Insurance		9.3	%		10.3	%		10.0	%		7.5	%		8.8	%					9.6	%		8.1	%
Group Protection		11.6	%		6.5	%		5.3	%		5.6	%		8.4	%					9.4	%		7.0	%
Consolidated ROE - income (loss) from operations		12.1	%		13.4	%		11.2	%		10.2	%		12.4	%					11.6	%		11.3	%

Page 6

Lincoln Financial Group
Select Earnings Drivers By Segment
Unaudited (millions of dollars)
	For the Three Months Ended													For the Six Months Ended
	6/30/12		9/30/12		12/31/12		3/31/13		6/30/13		Change			6/30/12		6/30/13		Change
Annuities
Operating revenues	$	734	$	745	$	766	$	777	$	817		11.3	%	$	1,465	$	1,594		8.8	%
Average account values		89,890		92,323		94,709		99,545		103,561		15.2	%		89,714		101,572		13.2	%
Net flows		701		396		1,060		885		1,703		142.9	%		994		2,588		160.4	%
Retirement Plan Services
Operating revenues	$	258	$	255	$	259	$	260	$	271		5.0	%	$	510	$	531		4.1	%
Average account values		41,315		42,315		43,385		45,374		47,078		13.9	%		41,008		46,209		12.7	%
Net flows		194		232		348		344		337		73.7	%		406		681		67.7	%
Life Insurance
Operating revenues	$	1,235	$	1,296	$	1,297	$	1,241	$	1,284		4.0	%	$	2,463	$	2,525		2.5	%
Average account values		36,064		36,355		36,957		37,671		38,231		6.0	%		35,854		37,951		5.8	%
Average in-force face amount		581,015		583,264		587,509		592,304		597,542		2.8	%		580,456		594,923		2.5	%
Net flows		713		685		1,148		848		889		24.7	%		1,454		1,736		19.4	%
Group Protection
Operating revenues	$	540	$	517	$	531	$	550	$	575		6.5	%	$	1,043	$	1,125		7.9	%
Non-medical earned premiums		441		450		462		475		482		9.3	%		872		957		9.7	%
Consolidated
Operating revenues	$	2,880	$	2,914	$	2,956	$	2,930	$	3,049		5.9	%	$	5,700	$	5,978		4.9	%
Average account values		167,269		170,993		175,051		182,590		188,870		12.9	%		166,576		185,732		11.5	%
Net flows		1,608		1,313		2,556		2,077		2,929		82.2	%		2,854		5,005		75.4	%

Page 7

Lincoln Financial Group
Deposits, Net Flows and Account Balances By Segment
Unaudited (millions of dollars)
	As of or For the Three Months Ended													As of or For the Six Months Ended
	6/30/12		9/30/12		12/31/12		3/31/13		6/30/13		Change			6/30/12		6/30/13		Change
Deposits
Annuities	$	2,867	$	2,677	$	3,539	$	3,219	$	4,181		45.8	%	$	5,347	$	7,400		38.4	%
Retirement Plan Services		1,291		1,717		1,861		1,667		1,617		25.3	%		2,802		3,284		17.2	%
Life Insurance		1,137		1,106		1,546		1,240		1,253		10.2	%		2,297		2,494		8.6	%
Total deposits	$	5,295	$	5,500	$	6,946	$	6,126	$	7,051		33.2	%	$	10,446	$	13,178		26.2	%
Net Flows
Annuities	$	701	$	396	$	1,060	$	885	$	1,703		142.9	%	$	994	$	2,588		160.4	%
Retirement Plan Services		194		232		348		344		337		73.7	%		406		681		67.7	%
Life Insurance		713		685		1,148		848		889		24.7	%		1,454		1,736		19.4	%
Total net flows	$	1,608	$	1,313	$	2,556	$	2,077	$	2,929		82.2	%	$	2,854	$	5,005		75.4	%
Account Balances as of End-of-Period
Annuities	$	90,377	$	94,193	$	96,514	$	101,414	$	103,093		14.1	%	$	90,377	$	103,093		14.1	%
Retirement Plan Services		41,397		43,103		43,931		46,442		47,097		13.8	%		41,397		47,097		13.8	%
Life Insurance		36,121		36,589		37,325		38,018		38,446		6.4	%		36,121		38,446		6.4	%
Total account balances	$	167,895	$	173,885	$	177,770	$	185,874	$	188,636		12.4	%	$	167,895	$	188,636		12.4	%
Average Account Balances
Annuities	$	89,890	$	92,323	$	94,709	$	99,545	$	103,561		15.2	%	$	89,714	$	101,572		13.2	%
Retirement Plan Services		41,315		42,315		43,385		45,374		47,078		13.9	%		41,008		46,209		12.7	%
Life Insurance		36,064		36,355		36,957		37,671		38,231		6.0	%		35,854		37,951		5.8	%
Total average account balances	$	167,269	$	170,993	$	175,051	$	182,590	$	188,870		12.9	%	$	166,576	$	185,732		11.5	%

Page 8

Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)
	For the Three Months Ended													For the Six Months Ended
	6/30/12		9/30/12		12/31/12		3/31/13		6/30/13		Change			6/30/12		6/30/13		Change
Sales
Annuities:
Variable	$	2,422	$	2,188	$	3,019	$	2,939	$	3,917		61.7	%	$	4,607	$	6,856		48.8	%
Fixed		445		489		520		280		264		-40.7	%		740		544		-26.5	%
Total Annuities	$	2,867	$	2,677	$	3,539	$	3,219	$	4,181		45.8	%	$	5,347	$	7,400		38.4	%
Retirement Plan Services:
Small market	$	372	$	362	$	577	$	407	$	366		-1.6	%	$	790	$	773		-2.2	%
Mid - large market		746		1,186		1,123		1,099		1,093		46.5	%		1,666		2,193		31.6	%
Multi-Fund® and other variable		173		169		161		161		158		-8.7	%		346		318		-8.1	%
Total Retirement Plan Services	$	1,291	$	1,717	$	1,861	$	1,667	$	1,617		25.3	%	$	2,802	$	3,284		17.2	%
Life Insurance:
UL:
Excluding MoneyGuard® and indexed UL	$	41	$	27	$	38	$	31	$	30		-26.8	%	$	81	$	60		-25.9	%
MoneyGuard®		41		40		47		45		48		17.1	%		82		94		14.6	%
Indexed UL		10		11		14		9		11		10.0	%		17		20		17.6	%
Total UL		92		78		99		85		89		-3.3	%		180		174		-3.3	%
VUL		12		9		30		23		32		166.7	%		21		55		161.9	%
COLI and BOLI		11		9		78		26		39		254.5	%		22		65		195.5	%
Term		13		16		19		16		23		76.9	%		26		39		50.0	%
Total Life Insurance	$	128	$	112	$	226	$	150	$	183		43.0	%	$	249	$	333		33.7	%
Group Protection:
Life	$	33	$	41	$	84	$	31	$	33		0.0	%	$	61	$	64		4.9	%
Disability		38		41		97		31		42		10.5	%		66		74		12.1	%
Dental		18		15		25		9		20		11.1	%		29		29		0.0	%
Total Group Protection	$	89	$	97	$	206	$	71	$	95		6.7	%	$	156	$	167		7.1	%

Page 9

Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Operating Revenues
Annuities	$	734		$	745		$	766		$	777		$	817			11.3	%	$	1,465		$	1,594			8.8	%
Retirement Plan Services		258			255			259			260			271			5.0	%		510			531			4.1	%
Life Insurance		1,235			1,296			1,297			1,241			1,284			4.0	%		2,463			2,525			2.5	%
Group Protection		540			517			531			550			575			6.5	%		1,043			1,125			7.9	%
Other Operations		113			101			103			102			102			-9.7	%		219			203			-7.3	%
Total	$	2,880		$	2,914		$	2,956		$	2,930		$	3,049			5.9	%	$	5,700		$	5,978			4.9	%
General and Administrative Expenses, Net of Amounts Capitalized
Annuities	$	97		$	103		$	118		$	97		$	101			4.1	%	$	203		$	197			-3.0	%
Retirement Plan Services		70			73			86			66			72			2.9	%		138			138			0.0	%
Life Insurance		102			105			113			98			103			1.0	%		210			201			-4.3	%
Group Protection		55			57			63			55			63			14.5	%		106			118			11.3	%
Other Operations		23			24			23			26			32			39.1	%		45			59			31.1	%
Total	$	347		$	362		$	403		$	342		$	371			6.9	%	$	702		$	713			1.6	%
General and Administrative Expenses, Net of Amounts Capitalized, As a % of Operating Revenues
Annuities		13.2	%		13.9	%		15.4	%		12.4	%		12.3	%					13.9	%		12.4	%
Retirement Plan Services		27.3	%		28.7	%		33.1	%		25.6	%		26.6	%					27.0	%		26.1	%
Life Insurance		8.3	%		8.1	%		8.7	%		7.9	%		8.0	%					8.5	%		8.0	%
Group Protection		10.2	%		11.0	%		11.9	%		10.0	%		11.0	%					10.1	%		10.5	%
Other Operations		19.4	%		24.8	%		21.1	%		25.7	%		32.4	%					20.3	%		29.0	%
Total		12.0	%		12.4	%		13.6	%		11.7	%		12.2	%					12.3	%		11.9	%

Page 10

Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Operating Commissions and Other Expenses Incurred
General and administrative expenses	$	395		$	405		$	467		$	395		$	426			7.8	%	$	793		$	822			3.7	%
Commissions		465			454			551			514			570			22.6	%		915			1,085			18.6	%
Media expenses		16			16			17			15			15			-6.3	%		32			29			-9.4	%
Taxes, licenses and fees		55			70			58			67			52			-5.5	%		117			120			2.6	%
Interest and debt expense		68			68			65			64			65			-4.4	%		135			129			-4.4	%
Expenses associated with reserve financing and unrelated letters of credit		13			14			15			16			16			23.1	%		26			32			23.1	%
Total operating commissions and other expenses incurred		1,012			1,027			1,173			1,071			1,144			13.0	%		2,018			2,217			9.9	%
Less Amounts Capitalized
General and administrative expenses		(48	)		(43	)		(64	)		(53	)		(55	)		-14.6	%		(91	)		(109	)		-19.8	%
Commissions		(261	)		(242	)		(328	)		(280	)		(339	)		-29.9	%		(498	)		(619	)		-24.3	%
Taxes, licenses and fees		(10	)		(8	)		(12	)		(10	)		(10	)		0.0	%		(20	)		(20	)		0.0	%
Total amounts capitalized		(319	)		(293	)		(404	)		(343	)		(404	)		-26.6	%		(609	)		(748	)		-22.8	%
Total expenses incurred, net of amounts capitalized, excluding amortization		693			734			769			728			740			6.8	%		1,409			1,469			4.3	%
Amortization
Amortization of DAC and VOBA		204			376			245			227			221			8.3	%		404			448			10.9	%
Amortization of intangibles		1			1			1			1			1			0.0	%		2			2			0.0	%
Total amortization		205			377			246			228			222			8.3	%		406			450			10.8	%
Total operating commissions and other expenses	$	898		$	1,111		$	1,015		$	956		$	962			7.1	%	$	1,815		$	1,919			5.7	%

Page 11

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Annuities
Investments on reserves, excluding alternative		4.86	%		4.83	%		4.69	%		4.66	%		4.53	%		(33	)		4.89	%		4.59	%		(30	)
Prepayment and make whole premiums		0.07	%		0.04	%		0.08	%		0.09	%		0.36	%		29			0.06	%		0.23	%		17
Alternative investments		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%		(1	)		0.01	%		0.00	%		(1	)
Net investment income yield on reserves		4.94	%		4.87	%		4.77	%		4.75	%		4.89	%		(5	)		4.96	%		4.82	%		(14	)
Interest rate credited to contract holders		3.03	%		2.94	%		2.79	%		2.77	%		2.85	%		(18	)		3.09	%		2.81	%		(28	)
Interest rate spread		1.91	%		1.93	%		1.98	%		1.98	%		2.04	%		13			1.87	%		2.01	%		14
Retirement Plan Services
Investments on reserves, excluding alternative		5.28	%		5.23	%		5.04	%		5.02	%		5.01	%		(27	)		5.30	%		5.01	%		(29	)
Prepayment and make whole premiums		0.02	%		0.01	%		0.07	%		0.10	%		0.24	%		22			0.03	%		0.17	%		14
Alternative investments		0.02	%		0.00	%		0.00	%		0.00	%		0.00	%		(2	)		0.02	%		0.00	%		(2	)
Net investment income yield on reserves		5.32	%		5.24	%		5.11	%		5.12	%		5.25	%		(7	)		5.35	%		5.18	%		(17	)
Interest rate credited to contract holders		3.22	%		3.22	%		3.16	%		3.14	%		3.11	%		(11	)		3.22	%		3.13	%		(9	)
Interest rate spread		2.10	%		2.02	%		1.95	%		1.98	%		2.14	%		4			2.13	%		2.05	%		(8	)
Life Insurance
Attributable to interest-sensitive products:
Investments on reserves, excluding alternative		5.80	%		5.65	%		5.65	%		5.60	%		5.57	%		(23	)		5.80	%		5.59	%		(21	)
Prepayment and make whole premiums		0.07	%		0.02	%		0.13	%		0.03	%		0.15	%		8			0.05	%		0.09	%		4
Alternative investments		0.15	%		0.03	%		0.29	%		0.00	%		0.18	%		3			0.16	%		0.09	%		(7	)
Net investment income yield on reserves		6.02	%		5.70	%		6.07	%		5.63	%		5.90	%		(12	)		6.01	%		5.77	%		(24	)
Interest rate credited to contract holders		3.93	%		3.94	%		3.99	%		3.92	%		3.92	%		(1	)		3.95	%		3.92	%		(3	)
Interest rate spread		2.09	%		1.76	%		2.08	%		1.71	%		1.98	%		(11	)		2.06	%		1.85	%		(21	)
Attributable to traditional products:
Investments on reserves, excluding alternative		5.79	%		5.73	%		5.69	%		5.71	%		5.61	%		(18	)		5.76	%		5.66	%		(10	)
Prepayment and make whole premiums		0.04	%		0.00	%		0.48	%		0.05	%		0.12	%		8			0.02	%		0.09	%		7
Alternative investments		0.02	%		0.00	%		0.00	%		0.00	%		0.00	%		(2	)		0.01	%		0.00	%		(1	)
Net investment income yield on reserves		5.85	%		5.73	%		6.17	%		5.76	%		5.73	%		(12	)		5.79	%		5.75	%		(4	)

Page 12

Lincoln Financial Group
Select Investment Data
Unaudited (millions of dollars)
	As of 6/30/12					As of 12/31/12					As of 6/30/13
	Amount		%			Amount		%			Amount		%
AFS and Trading Securities, at Fair Value
AFS securities:
Corporate bonds	$	63,914		77.3	%	$	68,016		79.6	%	$	67,938		81.3	%
U.S. government bonds		517		0.6	%		442		0.5	%		408		0.5	%
Foreign government bonds		664		0.8	%		654		0.8	%		564		0.7	%
Mortgage-backed securities		8,504		10.3	%		7,174		8.4	%		5,961		7.1	%
Asset-backed collateralized debt obligations		120		0.1	%		180		0.2	%		165		0.2	%
State and municipal bonds		4,284		5.2	%		4,353		5.1	%		4,048		4.8	%
Hybrid and redeemable preferred securities		1,188		1.4	%		1,217		1.4	%		1,151		1.4	%
VIEs' fixed maturity securities		705		0.9	%		708		0.8	%		698		0.8	%
Equity securities		154		0.2	%		157		0.2	%		209		0.3	%
Total AFS securities		80,050		96.8	%		82,901		97.0	%		81,142		97.1	%
Trading securities		2,649		3.2	%		2,554		3.0	%		2,391		2.9	%
Total AFS and trading securities	$	82,699		100.0	%	$	85,455		100.0	%	$	83,533		100.0	%
AFS and Trading Securities, at Amortized Cost
Fixed maturity securities	$	74,326		99.8	%	$	75,520		99.8	%	$	78,237		99.8	%
Equity securities		145		0.2	%		139		0.2	%		192		0.2	%
Total AFS and trading securities	$	74,471		100.0	%	$	75,659		100.0	%	$	78,429		100.0	%
% of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				94.7	%				94.5	%				94.7	%
Below investment grade				5.3	%				5.5	%				5.3	%

	For the Three Months Ended																		For the Six Months Ended
	06/30/12			09/30/12			12/31/12			03/31/13			6/30/13			Change			06/30/12			6/30/13			Change
Net Investment Income	$	1,197		$	1,146		$	1,190		$	1,150		$	1,213			1.3	%	$	2,362		$	2,363			0.0	%
Average Invested Assets, at Amortized Cost		84,958			85,802			86,498			87,690			89,009			4.8	%		84,420			88,350			4.7	%
Net Investment Income Yield		5.64	%		5.34	%		5.50	%		5.25	%		5.45	%		(19	)		5.60	%		5.35	%		(25	)

Page 13

Lincoln Financial Group
Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Realized Gain (Loss), Pre-Tax
Total operating realized gain (loss)	$	25		$	31		$	30		$	32		$	34			36.0	%	$	52		$	66			26.9	%
Total excluded realized gain (loss)		18			39			17			(91	)		(51	)	NM				(95	)		(142	)		-49.5	%
Total realized gain (loss), pre-tax	$	43		$	70		$	47		$	(59	)	$	(17	)	NM			$	(43	)	$	(76	)		-76.7	%
Realized Gain (Loss) Net of Benefit Ratio Unlocking, After-Tax
Realized gain (loss) related to investments	$	(45	)	$	3		$	(2	)	$	(4	)	$	(22	)		51.1	%	$	(39	)	$	(26	)		33.3	%
Variable annuity net derivative results:
Hedge program performance, including unlocking for GLB reserves hedged		(38	)		99			18			1			5			113.2	%		(20	)		7			135.0	%
GLB non-performance risk component		86			(61	)		(5	)		(35	)		(16	)	NM				2			(51	)	NM
Total variable annuity net derivative results		48			38			13			(34	)		(11	)	NM				(18	)		(44	)	NM
Indexed annuity forward-starting option		(1	)		(6	)		2			(8	)		(2	)		-100.0	%		9			(10	)	NM
Excluded realized gain (loss) net of benefit ratio unlocking, after-tax	$	2		$	35		$	13		$	(46	)	$	(35	)	NM			$	(48	)	$	(80	)		-66.7	%
Components of Realized Gain (Loss) Related to Investments, After-Tax
OTTI	$	(21	)	$	(21	)	$	(27	)	$	(9	)	$	(12	)		42.4	%	$	(52	)	$	(21	)		58.8	%
Other realized gain (loss) related to certain investments		(12	)		(14	)		2			(1	)		(4	)		68.4	%		(12	)		(5	)		62.1	%
Gain (loss) on the mark-to-market on certain instruments		(12	)		38			23			6			(6	)		50.0	%		25			-			-100.0	%
Total realized gain (loss) related to investments, after-tax	$	(45	)	$	3		$	(2	)	$	(4	)	$	(22	)		51.1	%	$	(39	)	$	(26	)		33.3	%

Page 14

Lincoln Financial Group
Select Liquidity and Rating Agency Data
Unaudited (millions of dollars)
	As of
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change
Leverage Ratio
Short-term debt	$	300		$	200		$	200		$	706		$	506			68.7	%
Long-term debt		5,719			5,494			5,439			4,889			5,050			-11.7	%
Total debt		6,019			5,694			5,639			5,595			5,556			-7.7	%
Less:
Long-term operating debt (1)		1,122			1,122			1,122			1,122			1,122			0.0	%
75% of capital securities		908			908			908			908			908			0.0	%
Carrying value of fair value hedges		330			307			269			227			139			-57.9	%
Total numerator	$	3,659		$	3,357		$	3,340		$	3,338		$	3,387			-7.4	%
Stockholders' equity, excluding AOCI	$	10,660		$	10,970		$	11,165		$	11,281		$	11,424			7.2	%
Total debt		6,019			5,694			5,639			5,595			5,556			-7.7	%
Total denominator	$	16,679		$	16,664		$	16,804		$	16,876		$	16,980			1.8	%
Leverage ratio		21.9	%		20.1	%		19.9	%		19.8	%		19.9	%
Holding Company Available Liquidity	$	802		$	618		$	706		$	647		$	693			-13.6	%

	Ratings as of July 31, 2013
				Standard
	A.M. Best	Fitch	Moody's	& Poor's
Senior Debt Ratings	a-	BBB+	Baa1	A-
Financial Strength Ratings
Lincoln National Life Insurance Company	A+	A+	A1	AA-
First Penn-Pacific Life Insurance Company	A	A+	A1	A-
Lincoln Life & Annuity Company of New York	A+	A+	A1	AA-

(1) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies and the senior note issued in September 2008 by our primary insurance subsidiary.

Page 15

Lincoln Financial Group
Annuities - Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended																		As of or For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	18		$	29		$	34		$	33		$	24			33.3	%	$	35		$	57			62.9	%
Insurance fees		323			332			351			369			391			21.1	%		648			760			17.3	%
Net investment income		279			268			263			257			273			-2.2	%		551			530			-3.8	%
Operating realized gain (loss)		25			30			31			31			33			32.0	%		53			64			20.8	%
Other revenues and fees		89			86			87			87			96			7.9	%		178			183			2.8	%
Total operating revenues		734			745			766			777			817			11.3	%		1,465			1,594			8.8	%
Operating expenses:
Interest credited		163			146			153			153			157			-3.7	%		333			310			-6.9	%
Benefits		49			131			55			65			62			26.5	%		95			128			34.7	%
Commissions incurred		202			203			245			229			274			35.6	%		385			503			30.6	%
Other expenses incurred		187			190			212			194			202			8.0	%		382			397			3.9	%
Amounts capitalized		(149	)		(138	)		(182	)		(163	)		(213	)		-43.0	%		(273	)		(376	)		-37.7	%
Amortization		86			40			97			105			92			7.0	%		184			196			6.5	%
Total operating expenses		538			572			580			583			574			6.7	%		1,106			1,158			4.7	%
Income (loss) from operations before taxes		196			173			186			194			243			24.0	%		359			436			21.4	%
Federal income tax expense (benefit)		38			34			24			35			48			26.3	%		65			83			27.7	%
Income (loss) from operations	$	158		$	139		$	162		$	159		$	195			23.4	%	$	294		$	353			20.1	%
Effective Federal Income Tax Rate		19.7	%		19.6	%		12.7	%		18.0	%		19.8	%					17.8	%		19.0	%
Average Equity, Excluding Goodwill and AOCI	$	3,091		$	3,110		$	3,053		$	2,977		$	2,978			-3.7	%	$	3,026		$	2,978			-1.6	%
ROE, Excluding Goodwill		20.4	%		17.9	%		21.2	%		21.3	%		26.1	%					19.4	%		23.7	%
Return on Average Account Values		70			60			68			64			75			5			65			70			5
Account Values
Separate account values:
Average	$	69,222		$	71,535		$	73,804		$	78,489		$	82,301			18.9	%	$	69,113		$	80,406			16.3	%
End-of-period		69,615			73,401			75,501			80,312			81,764			17.5	%		69,615			81,764			17.5	%
General account values:
Average		20,668			20,788			20,905			21,056			21,260			2.9	%		20,601			21,166			2.7	%
End-of-period		20,762			20,792			21,013			21,102			21,329			2.7	%		20,762			21,329			2.7	%

Page 16

Lincoln Financial Group
Retirement Plan Services - Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended																		As of or For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Income (Loss) from Operations
Operating revenues:
Insurance fees	$	53		$	53		$	54		$	56		$	58			9.4	%	$	105		$	114			8.6	%
Net investment income		202			199			201			202			211			4.5	%		399			413			3.5	%
Other revenues and fees		3			3			4			2			2			-33.3	%		6			4			-33.3	%
Total operating revenues		258			255			259			260			271			5.0	%		510			531			4.1	%
Operating expenses:
Interest credited		112			114			115			117			117			4.5	%		223			233			4.5	%
Benefits		-			-			-			-			-		NM				-			1		NM
Commissions incurred		17			17			19			18			18			5.9	%		35			36			2.9	%
Other expenses incurred		78			81			93			77			79			1.3	%		155			155			0.0	%
Amounts capitalized		(9	)		(9	)		(10	)		(9	)		(7	)		22.2	%		(19	)		(16	)		15.8	%
Amortization		10			13			10			9			10			0.0	%		19			20			5.3	%
Total operating expenses		208			216			227			212			217			4.3	%		413			429			3.9	%
Income (loss) from operations before taxes		50			39			32			48			54			8.0	%		97			102			5.2	%
Federal income tax expense (benefit)		12			10			4			13			15			25.0	%		24			27			12.5	%
Income (loss) from operations	$	38		$	29		$	28		$	35		$	39			2.6	%	$	73		$	75			2.7	%
Effective Federal Income Tax Rate		23.8	%		26.0	%		13.0	%		27.2	%		27.1	%					24.8	%		27.2	%
Average Equity, Excluding Goodwill and AOCI	$	1,001		$	1,031		$	941		$	908		$	970			-3.1	%	$	956		$	939			-1.8	%
ROE, Excluding Goodwill		15.1	%		11.2	%		12.0	%		15.5	%		16.2	%					15.2	%		15.9	%
Return on Average Account Values		37			27			26			31			33			(4	)		35			32			(3	)
Account Values
Separate account values:
Average	$	13,373		$	13,558		$	13,536		$	13,970		$	14,311			7.0	%	$	13,481		$	14,141			4.9	%
End-of-period		13,338			13,788			13,466			14,233			14,084			5.6	%		13,338			14,084			5.6	%
Mutual fund account values:
Average		14,039			14,631			15,404			16,595			17,797			26.8	%		13,715			17,179			25.3	%
End-of-period		14,056			15,073			15,747			17,313			17,978			27.9	%		14,056			17,978			27.9	%
General account values:
Average		13,903			14,126			14,445			14,809			14,970			7.7	%		13,812			14,889			7.8	%
End-of-period		14,003			14,242			14,718			14,896			15,035			7.4	%		14,003			15,035			7.4	%

Page 17

Lincoln Financial Group
Life Insurance - Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended																		As of or For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	114		$	103		$	116		$	113		$	119			4.4	%	$	222		$	232			4.5	%
Insurance fees		510			605			551			533			534			4.7	%		1,034			1,066			3.1	%
Net investment income		606			578			624			585			625			3.1	%		1,195			1,211			1.3	%
Operating realized gain (loss)		(1	)		1			(1	)		2			-			100.0	%		-			2		NM
Other revenues and fees		6			9			7			8			6			0.0	%		12			14			16.7	%
Total operating revenues		1,235			1,296			1,297			1,241			1,284			4.0	%		2,463			2,525			2.5	%
Operating expenses:
Interest credited		312			320			316			320			325			4.2	%		624			644			3.2	%
Benefits		474			295			486			505			500			5.5	%		943			1,005			6.6	%
Commissions incurred		126			115			161			139			146			15.9	%		256			285			11.3	%
Other expenses incurred		168			168			178			169			168			0.0	%		343			337			-1.7	%
Amounts capitalized		(143	)		(131	)		(181	)		(157	)		(166	)		-16.1	%		(289	)		(322	)		-11.4	%
Amortization		97			313			124			98			110			13.4	%		177			208			17.5	%
Total operating expenses		1,034			1,080			1,084			1,074			1,083			4.7	%		2,054			2,157			5.0	%
Income (loss) from operations before taxes		201			216			213			167			201			0.0	%		409			368			-10.0	%
Federal income tax expense (benefit)		66			64			66			55			66			0.0	%		134			121			-9.7	%
Income (loss) from operations	$	135		$	152		$	147		$	112		$	135			0.0	%	$	275		$	247			-10.2	%
Effective Federal Income Tax Rate		32.7	%		29.7	%		30.8	%		32.9	%		33.0	%					32.8	%		32.9	%
Average Equity, Excluding Goodwill and AOCI	$	5,805		$	5,879		$	5,919		$	5,998		$	6,125			5.5	%	$	5,730		$	6,062			5.8	%
ROE, Excluding Goodwill		9.3	%		10.3	%		10.0	%		7.5	%		8.8	%					9.6	%		8.1	%
Average Account Values	$	36,064		$	36,355		$	36,957		$	37,671		$	38,231			6.0	%	$	35,854		$	37,951			5.8	%
In-Force Face Amount
UL and other	$	308,763		$	308,470		$	311,235		$	311,588		$	314,093			1.7	%	$	308,763		$	314,093			1.7	%
Term insurance		273,305			275,992			279,322			282,463			286,939			5.0	%		273,305			286,939			5.0	%
Total in-force face amount	$	582,068		$	584,462		$	590,557		$	594,051		$	601,032			3.3	%	$	582,068		$	601,032			3.3	%

Page 18

Lincoln Financial Group
Group Protection - Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	495		$	473		$	487		$	508		$	531			7.3	%	$	958		$	1,039			8.5	%
Net investment income		42			41			41			39			42			0.0	%		81			81			0.0	%
Other revenues and fees		3			3			3			3			2			-33.3	%		4			5			25.0	%
Total operating revenues		540			517			531			550			575			6.5	%		1,043			1,125			7.9	%
Operating expenses:
Interest credited		1			1			1			1			1			0.0	%		2			1			(0.5	)
Benefits		368			360			367			384			397			7.9	%		718			781			8.8	%
Commissions incurred		53			55			61			63			62			17.0	%		107			125			16.8	%
Other expenses incurred		82			82			99			80			90			9.8	%		155			170			9.7	%
Amounts capitalized		(17	)		(15	)		(31	)		(15	)		(18	)		-5.9	%		(28	)		(33	)		-17.9	%
Amortization		11			10			14			15			9			-18.2	%		23			24			4.3	%
Total operating expenses		498			493			511			528			541			8.6	%		977			1,068			9.3	%
Income (loss) from operations before taxes		42			24			20			22			34			-19.0	%		66			57			-13.6	%
Federal income tax expense (benefit)		15			8			7			8			12			-20.0	%		23			20			-13.0	%
Income (loss) from operations	$	27		$	16		$	13		$	14		$	22			-18.5	%	$	43		$	37			-14.0	%
Effective Federal Income Tax Rate		35.6	%		34.2	%		34.9	%		35.0	%		35.0	%					35.4	%		35.0	%
Average Equity, Excluding Goodwill and AOCI	$	927		$	955		$	992		$	1,036		$	1,062			14.6	%	$	916		$	1,049			14.5	%
ROE, Excluding Goodwill		11.6	%		6.5	%		5.3	%		5.6	%		8.4	%					9.4	%		7.0	%
Loss Ratios by Product Line
Life		75.0	%		76.8	%		72.3	%		80.1	%		77.1	%					76.6	%		78.6	%
Disability		69.6	%		76.3	%		77.9	%		69.1	%		70.1	%					69.8	%		69.6	%
Dental		76.5	%		69.0	%		70.8	%		77.4	%		74.1	%					79.2	%		75.7	%
Total non-medical		72.7	%		75.7	%		74.7	%		74.8	%		73.5	%					73.8	%		74.1	%
Medical		89.7	%		85.4	%		86.7	%		89.3	%		88.8	%					88.9	%		89.0	%

Page 19

Lincoln Financial Group
Other Operations and Discontinued Operations - Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Other Operations
Operating revenues:
Insurance premiums	$	3		$	-		$	-		$	-		$	-			-100.0	%	$	4		$	1			-75.0	%
Net investment income		68			61			61			66			63			-7.4	%		137			129			-5.8	%
Amortization of deferred gain on business sold through reinsurance		18			18			18			18			18			0.0	%		36			36			0.0	%
Media revenues		21			21			21			17			19			-9.5	%		38			35			-7.9	%
Other revenues and fees		3			1			3			1			2			-33.3	%		4			2			-50.0	%
Total operating revenues		113			101			103			102			102			-9.7	%		219			203			-7.3	%
Operating expenses:
Interest credited		30			30			32			27			28			-6.7	%		61			55			-9.8	%
Benefits		35			43			32			27			29			-17.1	%		63			56			-11.1	%
Media expenses		16			16			17			15			15			-6.3	%		32			29			-9.4	%
Commissions and other expenses		15			33			24			25			26			73.3	%		36			52			44.4	%
Interest and debt expenses		68			68			65			64			65			-4.4	%		135			129			-4.4	%
Total operating expenses		164			190			170			158			163			-0.6	%		327			321			-1.8	%
Income (loss) from operations before taxes		(51	)		(89	)		(67	)		(56	)		(61	)		-19.6	%		(108	)		(118	)		-9.3	%
Federal income tax expense (benefit)		(12	)		(115	)		(27	)		(21	)		(21	)		-75.0	%		(35	)		(41	)		-17.1	%
Income (loss) from operations	$	(39	)	$	26		$	(40	)	$	(35	)	$	(40	)		-2.6	%	$	(73	)	$	(77	)		-5.5	%
Discontinued Operations
Gain (loss) on disposal before taxes	$	-		$	-		$	-		$	-		$	-		NM			$	(1	)	$	-			100.0	%
Federal income tax expense (benefit)		-			(28	)		-			-			-		NM				-			-		NM
Gain (loss) on disposal	$	-		$	28		$	-		$	-		$	-		NM			$	(1	)	$	-			100.0	%

Page 20

Lincoln Financial Group
Consolidated - DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
DAC and VOBA
Balance as of beginning-of-period	$	6,880		$	6,505		$	5,813		$	6,667		$	6,936			0.8	%	$	6,776		$	6,667			-1.6	%
Business sold through reinsurance		-			2			-			-			-		NM				-			-		NM
Deferrals		319			293			404			343			404			26.6	%		609			748			22.8	%
Operating amortization		(204	)		(376	)		(245	)		(227	)		(221	)		-8.3	%		(404	)		(448	)		-10.9	%
Deferrals, net of operating amortization		115			(83	)		159			116			183			59.1	%		205			300			46.3	%
Amortization associated with benefit ratio unlocking		2			(2	)		-			(2	)		1			-50.0	%		(3	)		(2	)		33.3	%
Adjustment related to realized (gains) losses		(34	)		(30	)		(16	)		4			(11	)		67.6	%		(16	)		(7	)		56.3	%
Adjustment related to unrealized (gains) losses		(458	)		(579	)		711			151			1,105		NM				(457	)		1,256		NM
Balance as of end-of-period	$	6,505		$	5,813		$	6,667		$	6,936		$	8,214			26.3	%	$	6,505		$	8,214			26.3	%
DSI
Balance as of beginning-of-period	$	268		$	260		$	252		$	253		$	249			-7.1	%	$	271		$	253			-6.6	%
Deferrals		10			11			9			3			3			-70.0	%		19			5			-73.7	%
Operating amortization		(10	)		3			(12	)		(12	)		(9	)		10.0	%		(22	)		(21	)		4.5	%
Deferrals, net of operating amortization		-			14			(3	)		(9	)		(6	)	NM				(3	)		(16	)	NM
Adjustment related to realized (gains) losses		(4	)		(4	)		(3	)		-			(1	)		75.0	%		(1	)		(1	)		0.0	%
Adjustment related to unrealized (gains) losses		(4	)		(18	)		7			5			24		NM				(7	)		30		NM
Balance as of end-of-period	$	260		$	252		$	253		$	249		$	266			2.3	%	$	260		$	266			2.3	%
DFEL
Balance as of beginning-of-period	$	1,404		$	1,261		$	1,001		$	1,373		$	1,351			-3.8	%	$	1,369		$	1,373			0.3	%
Deferrals		88			78			92			83			81			-8.0	%		178			164			-7.9	%
Operating amortization		(42	)		(130	)		(61	)		(55	)		(44	)		-4.8	%		(92	)		(99	)		-7.6	%
Deferrals, net of operating amortization		46			(52	)		31			28			37			-19.6	%		86			65			-24.4	%
Amortization associated with benefit ratio unlocking		-			(1	)		-			-			-		NM				(1	)		-			100.0	%
Adjustment related to realized (gains) losses		(6	)		(12	)		(4	)		1			(1	)		83.3	%		(1	)		(1	)		0.0	%
Adjustment related to unrealized (gains) losses		(183	)		(195	)		345			(51	)		432		NM				(192	)		382			299.0	%
Balance as of end-of-period	$	1,261		$	1,001		$	1,373		$	1,351		$	1,819			44.3	%	$	1,261		$	1,819			44.3	%

Page 21

Lincoln Financial Group
Annuities - DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
DAC and VOBA
Balance as of beginning-of-period	$	1,965		$	1,940		$	1,910		$	2,092		$	2,196			11.8	%	$	1,912		$	2,092			9.4	%
Deferrals		149			138			182			164			213			43.0	%		273			377			38.1	%
Operating amortization		(86	)		(40	)		(97	)		(105	)		(92	)		-7.0	%		(184	)		(196	)		-6.5	%
Deferrals, net of operating amortization		63			98			85			59			121			92.1	%		89			181			103.4	%
Amortization associated with benefit ratio unlocking		2			(2	)		-			(2	)		1			-50.0	%		(3	)		(2	)		33.3	%
Adjustment related to realized (gains) losses		(34	)		(32	)		(15	)		8			(9	)		73.5	%		(16	)		(1	)		93.8	%
Adjustment related to unrealized (gains) losses		(56	)		(94	)		112			39			198		NM				(42	)		237		NM
Balance as of end-of-period	$	1,940		$	1,910		$	2,092		$	2,196		$	2,507			29.2	%	$	1,940		$	2,507			29.2	%
DSI
Balance as of beginning-of-period	$	267		$	258		$	250		$	249		$	246			-7.9	%	$	269		$	249			-7.4	%
Deferrals		10			11			7			2			2			-80.0	%		18			5			-72.2	%
Operating amortization		(10	)		3			(12	)		(11	)		(9	)		10.0	%		(22	)		(21	)		4.5	%
Deferrals, net of operating amortization		-			14			(5	)		(9	)		(7	)	NM				(4	)		(16	)	NM
Amortization associated with benefit ratio unlocking		-			-			-			-			-		NM				-			-		NM
Adjustment related to realized (gains) losses		(4	)		(4	)		(3	)		-			(1	)		75.0	%		(1	)		(1	)		0.0	%
Adjustment related to unrealized (gains) losses		(5	)		(18	)		7			6			24		NM				(6	)		30		NM
Balance as of end-of-period	$	258		$	250		$	249		$	246		$	262			1.6	%	$	258		$	262			1.6	%
DFEL
Balance as of beginning-of-period	$	267		$	265		$	258		$	258		$	261			-2.2	%	$	263		$	258			-1.9	%
Deferrals		7			5			6			5			6			-14.3	%		13			11			-15.4	%
Operating amortization		(3	)		2			(5	)		(5	)		(4	)		-33.3	%		(8	)		(9	)		-12.5	%
Deferrals, net of operating amortization		4			7			1			-			2			-50.0	%		5			2			-60.0	%
Amortization associated with benefit ratio unlocking		-			(1	)		-			-			-		NM				(1	)		-			100.0	%
Adjustment related to realized (gains) losses		(6	)		(12	)		(4	)		2			(2	)		66.7	%		(1	)		-			100.0	%
Adjustment related to unrealized (gains) losses		-			(1	)		3			1			1		NM				(1	)		2			300.0	%
Balance as of end-of-period	$	265		$	258		$	258		$	261		$	262			-1.1	%	$	265		$	262			-1.1	%

Page 22

Lincoln Financial Group
Retirement Plan Services, Life Insurance and Group Protection - DAC, VOBA and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
DAC and VOBA - Retirement Plan Services
Balance as of beginning-of-period	$	165		$	145		$	108		$	102		$	69			-58.2	%	$	183		$	102			-44.3	%
Deferrals		9			9			10			9			7			-22.2	%		19			16			-15.8	%
Operating amortization		(10	)		(13	)		(10	)		(9	)		(10	)		0.0	%		(19	)		(20	)		-5.3	%
Deferrals, net of operating amortization		(1	)		(4	)		-			-			(3	)	NM				-			(4	)	NM
Adjustment related to unrealized (gains) losses		(19	)		(33	)		(6	)		(33	)		96		NM				(38	)		64			268.4	%
Balance as of end-of-period	$	145		$	108		$	102		$	69		$	162			11.7	%	$	145		$	162			11.7	%
DAC and VOBA - Life Insurance
Balance as of beginning-of-period	$	4,586		$	4,251		$	3,620		$	4,281		$	4,480			-2.3	%	$	4,516		$	4,281			-5.2	%
Business sold through reinsurance		-			2			-			-			-		NM				-			-		NM
Deferrals		143			131			182			157			166			16.1	%		289			322			11.4	%
Operating amortization		(97	)		(313	)		(124	)		(98	)		(110	)		-13.4	%		(177	)		(208	)		-17.5	%
Deferrals, net of operating amortization		46			(182	)		58			59			56			21.7	%		112			114			1.8	%
Adjustment related to realized (gains) losses		(1	)		1			(1	)		(4	)		(1	)		0.0	%		1			(5	)	NM
Adjustment related to unrealized (gains) losses		(380	)		(452	)		604			144			809		NM				(378	)		954		NM
Balance as of end-of-period	$	4,251		$	3,620		$	4,281		$	4,480		$	5,344			25.7	%	$	4,251		$	5,344			25.7	%
DFEL - Life Insurance
Balance as of beginning-of-period	$	1,136		$	997		$	742		$	1,115		$	1,090			-4.0	%	$	1,106		$	1,115			0.8	%
Deferrals		82			73			87			77			75			-8.5	%		165			152			-7.9	%
Operating amortization		(39	)		(132	)		(57	)		(49	)		(40	)		-2.6	%		(84	)		(89	)		-6.0	%
Deferrals, net of operating amortization		43			(59	)		30			28			35			-18.6	%		81			63			-22.2	%
Adjustment related to realized (gains) losses		-			-			-			(1	)		-		NM				-			(1	)	NM
Adjustment related to unrealized (gains) losses		(182	)		(196	)		343			(52	)		431		NM				(190	)		379			299.5	%
Balance as of end-of-period	$	997		$	742		$	1,115		$	1,090		$	1,556			56.1	%	$	997		$	1,556			56.1	%
DAC and VOBA - Group Protection
Balance as of beginning-of-period	$	164		$	170		$	175		$	192		$	192			17.1	%	$	165		$	192			16.4	%
Deferrals		17			15			31			15			18			5.9	%		28			33			17.9	%
Operating amortization		(11	)		(10	)		(14	)		(15	)		(9	)		18.2	%		(23	)		(24	)		-4.3	%
Deferrals, net of operating amortization		6			5			17			-			9			50.0	%		5			9			80.0	%
Balance as of end-of-period	$	170		$	175		$	192		$	192		$	201			18.2	%	$	170		$	201			18.2	%

Page 23

Lincoln Financial Group
Annuities - Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Fixed Annuities
Balance as of beginning-of-period	$	18,186		$	18,273		$	18,347		$	18,438		$	18,539			1.9	%	$	18,106		$	18,438			1.8	%
Gross deposits		445			489			520			280			264			-40.7	%		740			544			-26.5	%
Withdrawals and deaths		(477	)		(599	)		(571	)		(435	)		(462	)		3.1	%		(942	)		(897	)		4.8	%
Net flows		(32	)		(110	)		(51	)		(155	)		(198	)	NM				(202	)		(353	)		-74.8	%
Reinvested interest credited		110			173			135			254			150			36.4	%		351			404			15.1	%
Sales inducements deferred		9			11			7			2			3			-66.7	%		18			5			-72.2	%
Balance as of end-of-period, gross		18,273			18,347			18,438			18,539			18,494			1.2	%		18,273			18,494			1.2	%
Reinsurance ceded		(871	)		(849	)		(830	)		(811	)		(796	)		8.6	%		(871	)		(796	)		8.6	%
Balance as of end-of-period, net	$	17,402		$	17,498		$	17,608		$	17,728		$	17,698			1.7	%	$	17,402		$	17,698			1.7	%
Variable Annuities
Balance as of beginning-of-period	$	74,366		$	72,976		$	76,696		$	78,906		$	83,687			12.5	%	$	68,330		$	78,906			15.5	%
Gross deposits		2,422			2,188			3,019			2,939			3,917			61.7	%		4,607			6,856			48.8	%
Withdrawals and deaths		(1,689	)		(1,682	)		(1,908	)		(1,899	)		(2,016	)		-19.4	%		(3,411	)		(3,915	)		-14.8	%
Net flows		733			506			1,111			1,040			1,901			159.3	%		1,196			2,941			145.9	%
Change in market value and reinvestment		(2,123	)		3,214			1,099			3,741			(193	)		90.9	%		3,450			3,548			2.8	%
Balance as of end-of-period, gross		72,976			76,696			78,906			83,687			85,395			17.0	%		72,976			85,395			17.0	%
Reinsurance ceded		(1	)		(1	)		-			(1	)		-			100.0	%		(1	)		-			100.0	%
Balance as of End-of-Period (2)	$	72,975		$	76,695		$	78,906		$	83,686		$	85,395			17.0	%	$	72,975		$	85,395			17.0	%
Total
Balance as of beginning-of-period	$	92,552		$	91,249		$	95,043		$	97,344		$	102,226			10.5	%	$	86,436		$	97,344			12.6	%
Gross deposits		2,867			2,677			3,539			3,219			4,181			45.8	%		5,347			7,400			38.4	%
Withdrawals and deaths		(2,166	)		(2,281	)		(2,479	)		(2,334	)		(2,478	)		-14.4	%		(4,353	)		(4,812	)		-10.5	%
Net flows		701			396			1,060			885			1,703			142.9	%		994			2,588			160.4	%
Change in market value and reinvestment		(2,013	)		3,387			1,234			3,995			(43	)		97.9	%		3,801			3,952			4.0	%
Sales inducements deferred		9			11			7			2			3			-66.7	%		18			5			-72.2	%
Balance as of end-of-period, gross		91,249			95,043			97,344			102,226			103,889			13.9	%		91,249			103,889			13.9	%
Reinsurance ceded		(872	)		(850	)		(830	)		(812	)		(796	)		8.7	%		(872	)		(796	)		8.7	%
Balance as of end-of-period, net	$	90,377		$	94,193		$	96,514		$	101,414		$	103,093			14.1	%	$	90,377		$	103,093			14.1	%

Page 24

Lincoln Financial Group
Retirement Plan Services - Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Small Market
Balance as of beginning-of-period	$	6,641		$	6,470		$	6,766		$	7,001		$	7,373			11.0	%	$	6,167		$	7,001			13.5	%
Gross deposits		372			362			577			407			366			-1.6	%		790			773			-2.2	%
Withdrawals and deaths		(368	)		(330	)		(405	)		(409	)		(369	)		-0.3	%		(780	)		(779	)		0.1	%
Net flows		4			32			172			(2	)		(3	)	NM				10			(6	)	NM
Transfers between fixed and variable accounts		-			(5	)		(22	)		(14	)		1		NM				(11	)		(13	)		-18.2	%
Change in market value and reinvestment		(175	)		269			85			388			6			103.4	%		304			395			29.9	%
Balance as of end-of-period	$	6,470		$	6,766		$	7,001		$	7,373		$	7,377			14.0	%	$	6,470		$	7,377			14.0	%
Mid - Large Market
Balance as of beginning-of-period	$	19,199		$	19,139		$	20,293		$	21,050		$	22,776			18.6	%	$	17,435		$	21,050			20.7	%
Gross deposits		746			1,186			1,123			1,099			1,093			46.5	%		1,666			2,193			31.6	%
Withdrawals and deaths		(395	)		(798	)		(633	)		(532	)		(542	)		-37.2	%		(900	)		(1,075	)		-19.4	%
Net flows		351			388			490			567			551			57.0	%		766			1,118			46.0	%
Transfers between fixed and variable accounts		(5	)		(17	)		(12	)		13			7			240.0	%		(7	)		19		NM
Change in market value and reinvestment		(406	)		783			279			1,146			152			137.4	%		945			1,299			37.5	%
Balance as of end-of-period	$	19,139		$	20,293		$	21,050		$	22,776		$	23,486			22.7	%	$	19,139		$	23,486			22.7	%
Multi-Fund®and Other
Balance as of beginning-of-period	$	16,180		$	15,788		$	16,044		$	15,880		$	16,293			0.7	%	$	15,531		$	15,880			2.2	%
Gross deposits		173			169			161			161			158			-8.7	%		346			318			-8.1	%
Withdrawals and deaths		(334	)		(357	)		(475	)		(382	)		(369	)		-10.5	%		(716	)		(749	)		-4.6	%
Net flows		(161	)		(188	)		(314	)		(221	)		(211	)		-31.1	%		(370	)		(431	)		-16.5	%
Change in market value and reinvestment		(231	)		444			150			634			152			165.8	%		627			785			25.2	%
Balance as of end-of-period	$	15,788		$	16,044		$	15,880		$	16,293		$	16,234			2.8	%	$	15,788		$	16,234			2.8	%
Total
Balance as of beginning-of-period	$	42,020		$	41,397		$	43,103		$	43,931		$	46,442			10.5	%	$	39,133		$	43,931			12.3	%
Gross deposits		1,291			1,717			1,861			1,667			1,617			25.3	%		2,802			3,284			17.2	%
Withdrawals and deaths		(1,097	)		(1,485	)		(1,513	)		(1,323	)		(1,280	)		-16.7	%		(2,396	)		(2,603	)		-8.6	%
Net flows		194			232			348			344			337			73.7	%		406			681			67.7	%
Transfers between fixed and variable accounts		(5	)		(22	)		(34	)		(1	)		8			260.0	%		(18	)		6			133.3	%
Change in market value and reinvestment		(812	)		1,496			514			2,168			310			138.2	%		1,876			2,479			32.1	%
Balance as of end-of-period	$	41,397		$	43,103		$	43,931		$	46,442		$	47,097			13.8	%	$	41,397		$	47,097			13.8	%

Page 25

Lincoln Financial Group
Life Insurance - Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	6/30/12			9/30/12			12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Interest-Sensitive Life
Balance as of beginning-of-period	$	31,494		$	31,750		$	31,986		$	32,432		$	32,817			4.2	%	$	31,219		$	32,432			3.9	%
Deposits		990			971			1,132			998			966			-2.4	%		1,981			1,964			-0.9	%
Withdrawals and deaths		(331	)		(337	)		(267	)		(187	)		(247	)		25.4	%		(648	)		(435	)		32.9	%
Net flows		659			634			865			811			719			9.1	%		1,333			1,529			14.7	%
Contract holder assessments		(712	)		(712	)		(737	)		(743	)		(748	)		-5.1	%		(1,422	)		(1,491	)		-4.9	%
Reinvested interest credited		309			314			318			317			320			3.6	%		620			638			2.9	%
Balance as of end-of-period, gross		31,750			31,986			32,432			32,817			33,108			4.3	%		31,750			33,108			4.3	%
Reinsurance ceded		(859	)		(847	)		(838	)		(831	)		(819	)		4.7	%		(859	)		(819	)		4.7	%
Balance as of end-of-period, net	$	30,891		$	31,139		$	31,594		$	31,986		$	32,289			4.5	%	$	30,891		$	32,289			4.5	%
VUL
Balance as of beginning-of-period	$	6,202		$	6,005		$	6,262		$	6,523		$	6,859			10.6	%	$	5,687		$	6,523			14.7	%
Deposits		147			135			414			242			287			95.2	%		316			530			67.7	%
Withdrawals and deaths		(93	)		(84	)		(131	)		(205	)		(117	)		-25.8	%		(195	)		(323	)		-65.6	%
Net flows		54			51			283			37			170			214.8	%		121			207			71.1	%
Contract holder assessments		(88	)		(104	)		(126	)		(85	)		(113	)		-28.4	%		(183	)		(198	)		-8.2	%
Change in market value and reinvestment		(163	)		310			104			384			56			134.4	%		380			440			15.8	%
Balance as of end-of-period, gross		6,005			6,262			6,523			6,859			6,972			16.1	%		6,005			6,972			16.1	%
Reinsurance ceded		(775	)		(812	)		(792	)		(827	)		(815	)		-5.2	%		(775	)		(815	)		-5.2	%
Balance as of end-of-period, net	$	5,230		$	5,450		$	5,731		$	6,032		$	6,157			17.7	%	$	5,230		$	6,157			17.7	%
Total
Balance as of beginning-of-period	$	37,696		$	37,755		$	38,248		$	38,955		$	39,676			5.3	%	$	36,906		$	38,955			5.6	%
Deposits		1,137			1,106			1,546			1,240			1,253			10.2	%		2,297			2,494			8.6	%
Withdrawals and deaths		(424	)		(421	)		(398	)		(392	)		(364	)		14.2	%		(843	)		(758	)		10.1	%
Net flows		713			685			1,148			848			889			24.7	%		1,454			1,736			19.4	%
Contract holder assessments		(800	)		(816	)		(863	)		(828	)		(861	)		-7.6	%		(1,605	)		(1,689	)		-5.2	%
Change in market value and reinvestment		146			624			422			701			376			157.5	%		1,000			1,078			7.8	%
Balance as of end-of-period, gross		37,755			38,248			38,955			39,676			40,080			6.2	%		37,755			40,080			6.2	%
Reinsurance ceded		(1,634	)		(1,659	)		(1,630	)		(1,658	)		(1,634	)		0.0	%		(1,634	)		(1,634	)		0.0	%
Balance as of end-of-period, net	$	36,121		$	36,589		$	37,325		$	38,018		$	38,446			6.4	%	$	36,121		$	38,446			6.4	%

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Lincoln Financial Group
Select Non-GAAP to GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended																	For the Six Months Ended
	6/30/12			9/30/12		12/31/12			3/31/13			6/30/13			Change			6/30/12			6/30/13			Change
Revenues
Operating revenues	$	2,880		$	2,914	$	2,956		$	2,930		$	3,049			5.9	%	$	5,700		$	5,978			4.9	%
Excluded realized gain (loss)		18			39		17			(91	)		(51	)	NM				(95	)		(142	)		-49.5	%
Amortization of DFEL on benefit ratio unlocking		(1	)		-		(1	)		(1	)		-			100.0	%		1			-			-100.0	%
Amortization of deferred gains arising from reserve changes on business sold through reinsurance		1			1		1			1			1			0.0	%		2			2			0.0	%
Total revenues	$	2,898		$	2,954	$	2,973		$	2,839		$	2,999			3.5	%	$	5,608		$	5,838			4.1	%
Excluded Realized Gain (Loss) Net of Benefit Ratio Unlocking, After-Tax
Total excluded realized gain (loss)	$	12		$	25	$	11		$	(60	)	$	(33	)	NM			$	(61	)	$	(92	)		-50.8	%
Benefit ratio unlocking		(10	)		10		2			14			(2	)		80.0	%		13			12			-7.7	%
Net gain (loss), after-tax	$	2		$	35	$	13		$	(46	)	$	(35	)	NM			$	(48	)	$	(80	)		-66.7	%
Net Income
Income (loss) from operations	$	319		$	362	$	310		$	285		$	351			10.0	%	$	612		$	635			3.8	%
Excluded realized gain (loss)		12			25		11			(60	)		(33	)	NM				(61	)		(92	)		-50.8	%
Benefit ratio unlocking		(10	)		10		2			14			(2	)		80.0	%		13			12			-7.7	%
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance		-			1		-			-			1		NM				1			1			0.0	%
Gain (loss) on early extinguishment of debt		-			-		(3	)		-			-		NM				-			-		NM
Impairment of intangibles		-			2		-			-			-		NM				-			-		NM
Income (loss) from discontinued operations		-			28		-			-			-		NM				(1	)		-			100.0	%
Net income (loss)	$	321		$	428	$	320		$	239		$	317			-1.2	%	$	564		$	556			-1.4	%
Earnings (Loss) Per Common Share - Diluted
Income (loss) from operations	$	1.09		$	1.27	$	1.10		$	1.02		$	1.27			16.5	%	$	2.09		$	2.29			9.6	%
Excluded realized gain (loss)		0.03			0.09		0.04			(0.21	)		(0.11	)	NM				(0.21	)		(0.32	)		-52.4	%
Benefit ratio unlocking		(0.03	)		0.04		0.01			0.05			(0.01	)		66.7	%		0.05			0.04			-20.0	%
Gain (loss) on early extinguishment of debt		-			-		(0.01	)		-			-		NM				-			-		NM
Impairment of intangibles		-			0.01		-			-			-		NM				-			-		NM
Income (loss) from discontinued operations		-			0.10		-			-			-		NM				-			-		NM
Net income (loss)	$	1.09		$	1.51	$	1.14		$	0.86		$	1.15			5.5	%	$	1.93		$	2.01			4.1	%

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