Lincoln Financial Group
Table of Contents
Analyst Coverage and Credit Ratings	1
Notes	2
Consolidated
Consolidated Statements of Income (Loss)	3
Consolidated Balance Sheets	4
Earnings, Shares and Return on Equity	5
Key Stakeholder Metrics	6
Segment and Sources of Earnings	7
Select Earnings Drivers 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 Earnings and Operational Data from Business Segments
Annuities	13
Retirement Plan Services	14
Life Insurance	15
Group Protection	16
Other Operations	17
DAC & Account Value Rollforwards
Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	18
Account Value Roll Forwards:
Annuities	19
Retirement Plan Services	20
Life Insurance	21
Other Information
Select Investment Data	22
Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC	23
Select GAAP to Non-GAAP Reconciliations	24

	Lincoln Financial Group
	Analyst Coverage and Credit Ratings
	Firm	Analyst				Phone Number
	Bank of America Merrill Lynch	Seth Weiss				646-855-3783
	Barclays Capital	Jay Gelb				212-526-1561
	Credit Suisse	John Nadel				212-325-4016
	Deutsche Bank	Yaron Kinar				212-250-7927
	Dowling & Partners	Humphrey Lee				860-676-7351
	Evercore	Thomas Gallagher				212-446-9439
	FBR Capital Markets	Randy Binner				703-312-1890
	Goldman Sachs	Michael Kovac				212-902-2303
	J.P. Morgan Securities	Jimmy Bhullar				212-622-6397
	Janney Montgomery Scott	Bob Glasspiegel				860-724-1203
	Keefe, Bruyette & Woods, Inc.	Ryan Krueger				860-722-5930
	Morgan Stanley	Nigel Dally				212-761-4132
	Sandler O’Neil & Partners, L.P.	John Barnidge				312-281-3412
	Wells Fargo	Sean Dargan				212-214-1416
	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.
			Ratings as of November 2nd, 2016
						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-
	Investor Inquiries May Be Directed To:
	Chris Giovanni, Senior Vice President, Investor Relations
	Email:  Christopher.Giovanni@lfg.com
	Phone:  484-583-1793
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 as 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 Earnings Per Share (“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.  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.  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.
	Pre-tax net margin is calculated by dividing income (loss) from operations before taxes by net revenue, which is defined as total operating revenues less interest credited.
	Definitions
	Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of
	commercial paper outstanding.
	Sales as reported consist of the following:
	•  MoneyGuard®, our linked-benefit product – 15% of total expected premium deposits;
	•  Universal life (“UL”), indexed universal life ("IUL"), variable universal life (“VUL”) – first year commissionable premiums plus 5% of excess premiums received, including an adjustment
	for internal replacements of approximately 50% of commissionable premiums;
	•  Executive Benefits - single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate owned UL and VUL, first year commissionable premiums plus
	5% of excess premium received, including an adjustment for internal replacements of approximately 50% of commissionable premiums;
	•  Term – 100% of annualized first year 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.
	Sources of Earnings are defined as follows:
	•  Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products
	less related expenses.
	•  Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product
	and level of insurance in force.
	•  Fees on Assets Under Management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.
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	Lincoln Financial Group
	Notes
	•  Variable Annuity (“VA”) Riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in
	benefit reserves and related expenses.
	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 our variable annuities;
	▪  Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;
	▪  Changes in the fair value of the derivatives we own to hedge our guaranteed living benefit ("GLB") riders reflected within variable annuity net derivative results;
	▪  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”);
	•  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 prevailing 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 as 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 as they better reveal trends in our business.
	Statistical Supplement is Dated
	The financial data in this document is dated November 2nd, 2016, 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 Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Revenues
	Insurance premiums	$	825	$	848	$	816	$	728	$	708	-14.2%	$	2,398	$	2,252	-6.1%
	Fee income		1,469		1,116		1,235		1,288		1,376	-6.3%		3,929		3,899	-0.8%
	Net investment income		1,254		1,200		1,172		1,199		1,259	0.4%		3,627		3,630	0.1%
	Realized gain (loss):
	Other-than-temporary impairment (“OTTI”)		(18)		(16)		(36)		(28)		(13)	27.8%		(38)		(76)	-100.0%
	Realized gain (loss), excluding OTTI		45		(124)		(78)		(17)		50	-17.8%		27		(45)	NM
	Total realized gain (loss)		27		(140)		(114)		(45)		37	37.0%		(11)		(121)	NM
	Amortization of deferred gains on business
	sold through reinsurance		18		18		18		18		18	0.0%		55		55	0.0%
	Other revenues		123		130		116		119		127	3.3%		402		361	-10.2%
	Total revenues		3,716		3,172		3,243		3,307		3,525	-5.1%		10,400		10,076	-3.1%
	Expenses
	Interest credited		622		632		633		639		642	3.2%		1,876		1,914	2.0%
	Benefits		1,327		1,262		1,331		1,208		922	-30.5%		3,783		3,462	-8.5%
	Commissions and other expenses		1,432		859		976		978		1,283	-10.4%		3,459		3,236	-6.4%
	Interest and debt expense		67		68		68		68		66	-1.5%		204		202	-1.0%
	Total expenses		3,448		2,821		3,008		2,893		2,913	-15.5%		9,322		8,814	-5.4%
	Income (loss) from continuing operations before taxes		268		351		235		414		612	128.4%		1,078		1,262	17.1%
	Federal income tax expense (benefit)		41		68		27		89		145	253.7%		207		263	27.1%
	Net income (loss)		227		283		208		325		467	105.7%		871		999	14.7%
	Adjustment for LNC stock units in our
	deferred compensation plans		(7)		-		(7)		-		-	100.0%		(6)		(1)	83.3%
	Net income (loss) available to common
	stockholders – diluted	$	220	$	283	$	201	$	325	$	467	112.3%	$	865	$	998	15.4%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	0.87	$	1.14	$	0.82	$	1.35	$	2.00	129.9%	$	3.37	$	4.16	23.4%
	ROE, including AOCI
	Net income (loss)		6.2%		8.1%		5.9%		8.5%		11.6%			7.6%		8.8%
Page 3

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change
	ASSETS
	Investments:
	Available-for-sale (“AFS”) securities:
	Corporate bonds	$	74,432	$	74,032	$	76,956	$	80,129	$	81,369	9.3%
	U.S. government bonds		438		429		450		464		458	4.6%
	Foreign government bonds		532		524		532		530		530	-0.4%
	Mortgage-backed securities		4,252		4,104		4,028		3,975		4,019	-5.5%
	Asset-backed collateralized debt obligations		515		589		628		687		686	33.2%
	State and municipal bonds		4,480		4,480		4,744		4,985		4,939	10.2%
	Hybrid and redeemable preferred securities		857		806		726		691		631	-26.4%
	VIEs' fixed maturity securities		598		598		599		600		600	0.3%
	Equity securities		242		237		245		277		273	12.8%
	Total AFS securities		86,346		85,799		88,908		92,338		93,505	8.3%
	Trading securities		1,914		1,854		1,864		1,812		1,808	-5.5%
	Mortgage loans on real estate		8,431		8,678		8,916		9,257		9,430	11.8%
	Real estate		21		17		17		21		23	9.5%
	Policy loans		2,647		2,545		2,533		2,507		2,471	-6.6%
	Derivative investments		2,020		1,537		2,085		2,613		2,170	7.4%
	Other investments		1,820		1,778		2,048		2,039		2,184	20.0%
	Total investments		103,199		102,208		106,371		110,587		111,591	8.1%
	Cash and invested cash		3,772		3,146		3,177		4,113		3,444	-8.7%
	DAC and VOBA		8,866		9,510		8,984		8,280		8,020	-9.5%
	Premiums and fees receivable		383		376		401		370		355	-7.3%
	Accrued investment income		1,116		1,070		1,108		1,070		1,117	0.1%
	Reinsurance recoverables		5,559		5,623		5,597		5,540		5,432	-2.3%
	Funds withheld reinsurance assets		639		629		630		628		628	-1.7%
	Goodwill		2,273		2,273		2,273		2,273		2,273	0.0%
	Other assets		3,420		3,454		3,671		5,134		5,152	50.6%
	Separate account assets		120,275		123,619		123,506		125,033		128,593	6.9%
	Total assets	$	249,502	$	251,908	$	255,718	$	263,028	$	266,605	6.9%
Page 4a

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities
	Future contract benefits	$	20,523	$	20,708	$	21,438	$	22,147	$	22,120	7.8%
	Other contract holder funds		76,451		77,362		77,475		77,458		77,963	2.0%
	Short-term debt		-		-		-		250		250	NM
	Long-term debt by rating agency leverage definitions:
	Operating (see note (2) on page 6 for details)		1,115		1,115		1,115		865		865	-22.4%
	Financial		4,459		4,438		4,535		4,595		4,592	3.0%
	Reinsurance related embedded derivatives		116		87		111		134		137	18.1%
	Funds withheld reinsurance liabilities		676		638		597		2,019		1,999	195.7%
	Deferred gain on business sold through reinsurance		116		98		79		61		43	-62.9%
	Payables for collateral on investments		5,297		4,657		5,017		6,297		5,654	6.7%
	VIEs' liabilities		2		4		-		-		-	-100.0%
	Other liabilities		6,071		5,565		7,187		8,249		8,066	32.9%
	Separate account liabilities		120,275		123,619		123,506		125,033		128,593	6.9%
	Total liabilities		235,101		238,291		241,060		247,108		250,282	6.5%
	Stockholders’ Equity
	Common stock		6,380		6,298		6,162		6,009		5,909	-7.4%
	Retained earnings		6,358		6,474		6,565		6,716		7,037	10.7%
	AOCI:
	Unrealized investment gains (losses)		1,940		1,149		2,235		3,501		3,684	89.9%
	Foreign currency translation adjustment		(2)		(5)		(7)		(18)		(20)	NM
	Funded status of employee benefit plans		(275)		(299)		(297)		(288)		(287)	-4.4%
	Total AOCI		1,663		845		1,931		3,195		3,377	103.1%
	Total stockholders’ equity		14,401		13,617		14,658		15,920		16,323	13.3%
	Total liabilities and stockholders’ equity	$	249,502	$	251,908	$	255,718	$	263,028	$	266,605	6.9%
Page 4b

	Lincoln Financial Group
	Earnings, Shares and Return on Equity
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended											As of or For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Income (Loss)
	Net income (loss)	$	227	$	283	$	208	$	325	$	467	105.7%	$	871	$	999	14.7%
	Pre-tax income (loss) from operations		364		504		397		489		571	56.9%		1,298		1,460	12.5%
	After-tax income (loss) from operations (1)		289		382		314		373		441	52.6%		1,013		1,128	11.4%
	Operating tax rate		20.6%		24.2%		20.9%		23.7%		22.8%			22.0%		22.7%
	Average Stockholders’ Equity
	Average equity, including AOCI	$	14,550	$	14,009	$	14,137	$	15,289	$	16,122	10.8%	$	15,331	$	15,183	-1.0%
	Average AOCI		1,804		1,254		1,388		2,563		3,286	82.2%		2,659		2,412	-9.3%
	Average equity, excluding AOCI	$	12,746	$	12,755	$	12,749	$	12,726	$	12,836	0.7%	$	12,672	$	12,771	0.8%
	ROE, excluding AOCI
	Net income (loss)		7.1%		8.9%		6.5%		10.2%		14.5%			9.2%		10.4%
	Income (loss) from operations		9.1%		12.0%		9.8%		11.7%		13.7%			10.7%		11.8%
	Per Share
	Net income (loss) (diluted)	$	0.87	$	1.14	$	0.82	$	1.35	$	2.00	129.9%	$	3.37	$	4.16	23.4%
	Income (loss) from operations (diluted)		1.11		1.54		1.25		1.56		1.89	70.3%		3.92		4.70	19.9%
	Dividends declared during the period		0.20		0.25		0.25		0.25		0.25	25.0%		0.60		0.75	25.0%
	Book value, including AOCI	$	58.19	$	55.85	$	61.33	$	68.39	$	71.43	22.8%	$	58.19	$	71.43	22.8%
	Per share impact of AOCI		6.72		3.47		8.08		13.72		14.78	119.9%		6.72		14.78	119.9%
	Book value, excluding AOCI	$	51.47	$	52.38	$	53.25	$	54.67	$	56.65	10.1%	$	51.47	$	56.65	10.1%
	Shares
	Repurchased during the period		3.7		3.7		5.5		6.2		4.3	16.2%		12.3		16.1	30.9%
	End-of-period – basic		247.5		243.8		239.0		232.8		228.5	-7.7%		247.5		228.5	-7.7%
	End-of-period – diluted		251.2		246.7		242.2		236.3		231.3	-7.9%		251.2		231.3	-7.9%
	Average for the period – diluted		253.2		248.9		245.1		239.9		233.6	-7.7%		256.6		239.9	-6.5%
	(1) See reconciliation to net income (loss) on page 24.
Page 5

	Lincoln Financial Group
	Key Stakeholder Metrics
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Cash Returned to Common Stockholders
	Shares repurchased	$	200	$	200	$	200	$	275	$	200	0.0%	$	700	$	675	-3.6%
	Common dividends		50		49		61		60		58	16.0%		152		179	17.8%
	Total cash returned to common stockholders	$	250	$	249	$	261	$	335	$	258	3.2%	$	852	$	854	0.2%
	Leverage Ratio
	Short-term debt	$	-	$	-	$	-	$	250	$	250	NM
	Long-term debt		5,574		5,553		5,650		5,460		5,457	-2.1%
	Total debt (1)		5,574		5,553		5,650		5,710		5,707	2.4%
	Less:
	Operating debt (2)		1,115		1,115		1,115		1,115		1,115	0.0%
	25% of capital securities		302		302		302		302		302	0.0%
	Carrying value of fair value hedges		292		270		365		423		420	43.8%
	Total numerator	$	3,865	$	3,866	$	3,868	$	3,870	$	3,870	0.1%
	Stockholders’ equity, excluding unrealized
	investment gains (losses)	$	12,461	$	12,468	$	12,423	$	12,419	$	12,639	1.4%
	Add:  25% of capital securities		302		302		302		302		302	0.0%
	Total numerator		3,865		3,866		3,868		3,870		3,870	0.1%
	Total denominator	$	16,628	$	16,636	$	16,593	$	16,591	$	16,811	1.1%
	Leverage ratio		23.2%		23.2%		23.3%		23.3%		23.0%
	Holding Company Available Liquidity	$	505	$	608	$	539	$	523	$	546	8.1%
	(1) Excludes obligations under capital leases of $130 million that are reported in other liabilities on our Consolidated Balance Sheets.
	(2) 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.  During
	the second quarter of 2016, we reclassified the senior note issued by our primary insurance subsidiary into short-term debt.
Page 6

	Lincoln Financial Group
	Segment and Sources of Earnings
	Unaudited (millions of dollars)
		For the Three Months Ended											As of or For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Income (Loss) from Operations, Pre-Tax
	Annuities	$	328	$	309	$	272	$	296	$	303	-7.6%	$	949	$	871	-8.2%
	Retirement Plan Services		57		45		41		41		45	-21.1%		145		128	-11.7%
	Life Insurance		46		175		103		175		246	NM		354		524	48.0%
	Group Protection		26		20		8		23		44	69.2%		45		75	66.7%
	Other Operations		(93)		(45)		(27)		(46)		(67)	28.0%		(195)		(138)	29.2%
	Income (loss) from operations, before income taxes	$	364	$	504	$	397	$	489	$	571	56.9%	$	1,298	$	1,460	12.5%
	Income (Loss) from Operations, After-Tax
	Annuities	$	259	$	243	$	218	$	235	$	240	-7.3%	$	753	$	693	-8.0%
	Retirement Plan Services		42		33		31		31		32	-23.8%		107		94	-12.1%
	Life Insurance		36		119		75		120		167	NM		251		361	43.8%
	Group Protection		17		13		5		15		28	64.7%		29		49	69.0%
	Other Operations		(65)		(26)		(15)		(28)		(26)	60.0%		(127)		(69)	45.7%
	Income (loss) from operations	$	289	$	382	$	314	$	373	$	441	52.6%	$	1,013	$	1,128	11.4%
			For the Three Months Ended										For the Trailing Twelve Months
			9/30/15		12/31/15		3/31/16		6/30/16		9/30/16	Change	9/30/15		9/30/16		Change
	Sources of Earnings, Pre-Tax
	Investment spread	$	136	$	179	$	139	$	161	$	205	50.7%	$	678	$	685	1.0%
	Mortality/morbidity		48		115		65		118		175	264.6%		398		474	19.1%
	Fees on AUM		282		219		191		220		222	-21.3%		910		853	-6.3%
	VA riders		(9)		36		29		36		36	NM		123		137	11.4%
	Total sources of earnings, before income taxes		457		549		424		535		638	39.6%		2,109		2,149	1.9%
	Other Operations		(93)		(45)		(27)		(46)		(67)	28.0%		(236)		(184)	22.0%
	Income (loss) from operations, before income taxes	$	364	$	504	$	397	$	489	$	571	56.9%	$	1,873	$	1,965	4.9%
	Sources of Earnings, Pre-Taxes, Percentage By Component
	Investment spread		29.7%		32.6%		32.8%		30.0%		32.3%			32.1%		31.9%
	Mortality/morbidity		10.4%		21.0%		15.3%		22.1%		27.4%			18.9%		22.0%
	Fees on AUM		61.9%		39.9%		45.1%		41.2%		34.8%			43.2%		39.7%
	VA riders		-2.0%		6.5%		6.8%		6.7%		5.5%			5.8%		6.4%
	Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%
Page 7

	Lincoln Financial Group
	Select Earnings Drivers By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Annuities
	Operating revenues	$	1,060	$	1,079	$	1,039	$	983	$	1,000	-5.7%	$	3,041	$	3,023	-0.6%
	Deposits		3,304		3,018		2,353		2,113		1,938	-41.3%		9,675		6,404	-33.8%
	Net flows		536		435		(35)		(452)		(868)	NM		1,129		(1,354)	NM
	Average account values		122,668		122,330		118,189		122,383		125,023	1.9%		123,968		121,876	-1.7%
	Retirement Plan Services
	Operating revenues	$	282	$	276	$	267	$	270	$	282	0.0%	$	826	$	819	-0.8%
	Deposits		1,884		2,095		1,791		1,660		1,799	-4.5%		5,450		5,251	-3.7%
	Net flows		251		(221)		78		4		97	-61.4%		673		180	-73.3%
	Average account values		54,184		54,396		52,999		55,127		56,537	4.3%		54,387		54,841	0.8%
	Life Insurance
	Operating revenues	$	1,727	$	1,348	$	1,478	$	1,538	$	1,630	-5.6%	$	4,600	$	4,646	1.0%
	Deposits		1,400		1,542		1,238		1,391		1,490	6.4%		4,055		4,120	1.6%
	Net flows		1,019		1,170		830		978		1,102	8.1%		2,836		2,910	2.6%
	Average account values		42,963		43,269		43,795		44,162		44,792	4.3%		42,774		44,250	3.5%
	Average in-force face amount		651,256		657,846		664,753		671,412		680,010	4.4%		646,592		672,058	3.9%
	Group Protection
	Operating revenues	$	570	$	565	$	534	$	525	$	534	-6.3%	$	1,792	$	1,593	-11.1%
	Non-medical earned premiums		522		516		489		478		485	-7.1%		1,592		1,452	-8.8%
	Consolidated
	Operating revenues (1)	$	3,735	$	3,354	$	3,400	$	3,395	$	3,530	-5.5%	$	10,546	$	10,325	-2.1%
	Deposits		6,588		6,655		5,382		5,164		5,227	-20.7%		19,180		15,775	-17.8%
	Net flows		1,806		1,384		873		530		331	-81.7%		4,638		1,736	-62.6%
	Average account values		219,815		219,995		214,983		221,672		226,352	3.0%		221,129		220,967	-0.1%
	(1) See reconciliation to total revenues on page 24.
Page 8

	Lincoln Financial Group
	Sales By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Sales
	Annuities:
	With guaranteed living benefits	$	1,991	$	1,698	$	1,248	$	1,164	$	1,052	-47.2%	$	6,130	$	3,463	-43.5%
	Without guaranteed living benefits		747		664		437		471		466	-37.6%		2,321		1,375	-40.8%
	Variable		2,738		2,362		1,685		1,635		1,518	-44.6%		8,451		4,838	-42.8%
	Fixed		566		656		668		478		420	-25.8%		1,224		1,566	27.9%
	Total Annuities	$	3,304	$	3,018	$	2,353	$	2,113	$	1,938	-41.3%	$	9,675	$	6,404	-33.8%
	Retirement Plan Services:
	First-year sales	$	706	$	902	$	393	$	431	$	607	-14.0%	$	1,761	$	1,431	-18.7%
	Recurring deposits		1,178		1,193		1,398		1,229		1,192	1.2%		3,689		3,820	3.6%
	Total Retirement Plan Services	$	1,884	$	2,095	$	1,791	$	1,660	$	1,799	-4.5%	$	5,450	$	5,251	-3.7%
	Life Insurance:
	UL	$	23	$	25	$	18	$	24	$	23	0.0%	$	66	$	65	-1.5%
	MoneyGuard®		52		54		42		51		56	7.7%		137		150	9.5%
	IUL		21		27		18		18		23	9.5%		59		59	0.0%
	VUL		47		58		29		41		52	10.6%		134		123	-8.2%
	Term		20		25		25		30		31	55.0%		61		85	39.3%
	Total individual life insurance		163		189		132		164		185	13.5%		457		482	5.5%
	Executive Benefits		10		9		7		9		8	-20.0%		70		24	-65.7%
	Total Life Insurance	$	173	$	198	$	139	$	173	$	193	11.6%	$	527	$	506	-4.0%
	Group Protection:
	Life	$	24	$	86	$	27	$	25	$	28	16.7%	$	75	$	80	6.7%
	Disability		22		94		22		30		33	50.0%		68		85	25.0%
	Dental		15		43		10		16		17	13.3%		36		43	19.4%
	Total Group Protection	$	61	$	223	$	59	$	71	$	78	27.9%	$	179	$	208	16.2%
	Percent employee-paid		49.5%		47.4%		54.5%		46.4%		44.0%			51.2%		47.8%
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 Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Operating Revenues
	Annuities	$	1,060	$	1,079	$	1,039	$	983	$	1,000	-5.7%	$	3,041	$	3,023	-0.6%
	Retirement Plan Services		282		276		267		270		282	0.0%		826		819	-0.8%
	Life Insurance		1,727		1,348		1,478		1,538		1,630	-5.6%		4,600		4,646	1.0%
	Group Protection		570		565		534		525		534	-6.3%		1,792		1,593	-11.1%
	Other Operations		96		86		82		79		84	-12.5%		287		244	-15.0%
	Total	$	3,735	$	3,354	$	3,400	$	3,395	$	3,530	-5.5%	$	10,546	$	10,325	-2.1%
	General and Administrative Expenses,
	Net of Amounts Capitalized (1)
	Annuities	$	113	$	120	$	114	$	114	$	111	-1.8%	$	339	$	340	0.3%
	Retirement Plan Services		77		80		74		77		77	0.0%		226		227	0.4%
	Life Insurance		105		115		111		115		121	15.2%		327		347	6.1%
	Group Protection		70		72		69		71		77	10.0%		208		217	4.3%
	Other Operations		56		18		-		9		25	-55.4%		96		35	-63.5%
	Total	$	421	$	405	$	368	$	386	$	411	-2.4%	$	1,196	$	1,166	-2.5%
	General and Administrative Expenses,
	Net of Amounts Capitalized, as a Percentage
	of Operating Revenues
	Annuities		10.6%		11.1%		11.0%		11.6%		11.1%			11.2%		11.2%
	Retirement Plan Services		27.2%		29.0%		27.7%		28.3%		27.3%			27.3%		27.7%
	Life Insurance		6.1%		8.5%		7.5%		7.5%		7.4%			7.1%		7.5%
	Group Protection		12.2%		12.7%		13.0%		13.5%		14.4%			11.6%		13.6%
	Other Operations		57.9%		22.0%		0.6%		11.7%		30.2%			33.3%		14.3%
	Total		11.3%		12.1%		10.8%		11.4%		11.6%			11.3%		11.3%
	(1) See page 11 for general and administrative expenses capitalized.
Page 10

	Lincoln Financial Group
	Operating Commissions and Other Expenses
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Operating Commissions and
	Other Expenses Incurred
	General and administrative expenses	$	468	$	465	$	410	$	429	$	454	-3.0%	$	1,336	$	1,293	-3.2%
	Commissions		598		623		522		546		562	-6.0%		1,776		1,630	-8.2%
	Media expenses		-		-		-		-		-	NM		28		-	-100.0%
	Taxes, licenses and fees		63		46		68		64		65	3.2%		194		197	1.5%
	Interest and debt expense		67		68		68		68		66	-1.5%		204		202	-1.0%
	Expenses associated with reserve financing
	and unrelated letters of credit		18		18		18		19		21	16.7%		55		59	7.3%
	Total operating commissions and other
	expenses incurred		1,214		1,220		1,086		1,126		1,168	-3.8%		3,593		3,381	-5.9%
	Less Amounts Capitalized
	General and administrative expenses		(47)		(60)		(42)		(43)		(43)	8.5%		(140)		(127)	9.3%
	Commissions		(320)		(340)		(251)		(274)		(286)	10.6%		(928)		(812)	12.5%
	Taxes, licenses and fees		(8)		(7)		(8)		(9)		(10)	-25.0%		(24)		(27)	-12.5%
	Total amounts capitalized		(375)		(407)		(301)		(326)		(339)	9.6%		(1,092)		(966)	11.5%
	Total expenses incurred, net of amounts
	capitalized, excluding amortization		839		813		785		800		829	-1.2%		2,501		2,415	-3.4%
	Amortization
	Amortization of DAC and VOBA		674		110		258		244		512	-24.0%		1,174		1,013	-13.7%
	Amortization of intangibles		1		1		1		1		1	0.0%		3		3	0.0%
	Total amortization		675		111		259		245		513	-24.0%		1,177		1,016	-13.7%
	Total operating commissions and
	other expenses	$	1,514	$	924	$	1,044	$	1,045	$	1,342	-11.4%	$	3,678	$	3,431	-6.7%
Page 11

	Lincoln Financial Group
	Interest Rate Yields and Spreads By Segment
	Unaudited
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Annuities
	Earned rate on reserves		4.19%		4.12%		4.12%		4.08%		4.08%	(11)		4.21%		4.09%	(12)
	Variable investment income on reserves (1)		0.18%		0.15%		0.06%		0.07%		0.23%	5		0.15%		0.12%	(3)
	Net investment income yield on reserves		4.37%		4.27%		4.18%		4.15%		4.31%	(6)		4.36%		4.21%	(15)
	Interest rate credited to contract holders		2.56%		2.53%		2.60%		2.69%		2.70%	14		2.60%		2.66%	6
	Interest rate spread		1.81%		1.74%		1.58%		1.46%		1.61%	(20)		1.76%		1.55%	(21)
	Base spreads excluding variable investment income		1.63%		1.59%		1.52%		1.39%		1.38%	(25)		1.61%		1.43%	(18)
	Retirement Plan Services
	Earned rate on reserves		4.71%		4.62%		4.58%		4.52%		4.48%	(23)		4.66%		4.52%	(14)
	Variable investment income on reserves (1)		0.19%		0.12%		0.05%		0.06%		0.27%	8		0.13%		0.13%	-
	Net investment income yield on reserves		4.90%		4.74%		4.63%		4.58%		4.75%	(15)		4.79%		4.65%	(14)
	Interest rate credited to contract holders		3.01%		3.01%		2.98%		3.01%		3.00%	(1)		3.01%		2.99%	(2)
	Interest rate spread		1.89%		1.73%		1.65%		1.57%		1.75%	(14)		1.78%		1.66%	(12)
	Base spreads excluding variable investment income		1.70%		1.61%		1.60%		1.51%		1.48%	(22)		1.65%		1.53%	(12)
	Life Insurance
	Earned rate on reserves		5.33%		5.33%		5.26%		5.21%		5.20%	(13)		5.32%		5.23%	(9)
	Variable investment income on reserves (1)		0.42%		0.08%		-0.01%		0.15%		0.41%	(1)		0.28%		0.18%	(10)
	Net investment income yield on reserves		5.75%		5.41%		5.25%		5.36%		5.61%	(14)		5.60%		5.41%	(19)
	Interest rate credited to contract holders		3.92%		3.97%		3.92%		3.92%		3.89%	(3)		3.93%		3.91%	(2)
	Interest rate spread		1.83%		1.44%		1.33%		1.44%		1.72%	(11)		1.67%		1.50%	(17)
	Base spreads excluding variable investment income		1.41%		1.36%		1.34%		1.29%		1.31%	(10)		1.39%		1.32%	(7)
	Total (2)
	Earned rate (3)		4.86%		4.85%		4.78%		4.72%		4.68%	(18)		4.84%		4.72%	(12)
	Variable investment income (1) (3)		0.36%		0.09%		-0.01%		0.12%		0.36%	-		0.23%		0.16%	(7)
	Net investment income yield (3)		5.22%		4.94%		4.77%		4.84%		5.04%	(18)		5.07%		4.88%	(19)
	Interest rate credited to contract holders		3.34%		3.35%		3.34%		3.36%		3.34%	-		3.35%		3.35%	-
	Interest rate spread		1.88%		1.59%		1.43%		1.48%		1.70%	(18)		1.72%		1.53%	(19)
	Base spreads excluding variable investment income		1.52%		1.50%		1.44%		1.36%		1.34%	(18)		1.49%		1.37%	(12)
	(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
	(2) Includes the results of all of our business segments and Other Operations.
	(3) Includes investment yields on reserves and surplus.
Page 12

	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 Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	129	$	154	$	151	$	68	$	45	-65.1%	$	264	$	264	0.0%
	Fee income		520		517		493		510		535	2.9%		1,561		1,539	-1.4%
	Net investment income		257		252		251		258		268	4.3%		751		777	3.5%
	Operating realized gain (loss)		45		44		44		44		45	0.0%		133		132	-0.8%
	Other revenues		109		112		100		103		107	-1.8%		332		311	-6.3%
	Total operating revenues		1,060		1,079		1,039		983		1,000	-5.7%		3,041		3,023	-0.6%
	Operating expenses:
	Interest credited		134		135		140		144		148	10.4%		416		432	3.8%
	Benefits		219		214		216		136		112	-48.9%		437		465	6.4%
	Commissions incurred		261		257		218		216		214	-18.0%		777		648	-16.6%
	Other expenses incurred		220		227		218		210		214	-2.7%		674		643	-4.6%
	Amounts capitalized		(160)		(146)		(112)		(105)		(100)	37.5%		(471)		(318)	32.5%
	Amortization		58		83		87		86		109	87.9%		259		282	8.9%
	Total operating expenses		732		770		767		687		697	-4.8%		2,092		2,152	2.9%
	Income (loss) from operations before taxes		328		309		272		296		303	-7.6%		949		871	-8.2%
	Federal income tax expense (benefit)		69		66		54		61		63	-8.7%		196		178	-9.2%
	Income (loss) from operations	$	259	$	243	$	218	$	235	$	240	-7.3%	$	753	$	693	-8.0%
	Effective Federal Income Tax Rate		20.9%		21.4%		19.8%		20.6%		20.8%			20.6%		20.4%
	Average Equity, Excluding Goodwill and AOCI	$	4,262	$	4,335	$	4,381	$	4,502	$	4,611	8.2%	$	4,074	$	4,498	10.4%
	ROE, Excluding Goodwill and AOCI		24.3%		22.4%		19.9%		20.9%		20.8%			24.6%		20.6%
	Return on Average Account Values		84		79		74		77		77	(7)		81		76	(5)
	Account Values
	Variable annuity account values:
	Average	$	104,676	$	104,052	$	99,610	$	103,444	$	105,954	1.2%	$	105,984	$	103,015	-2.8%
	End-of-period		100,580		103,145		102,902		103,861		106,473	5.9%		100,580		106,473	5.9%
	Fixed annuity account values:
	Average		17,992		18,278		18,579		18,939		19,069	6.0%		17,984		18,861	4.9%
	End-of-period		18,027		18,451		18,829		18,990		19,037	5.6%		18,027		19,037	5.6%
Page 13

	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 Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Income (Loss) from Operations
	Operating revenues:
	Fee income	$	60	$	61	$	55	$	57	$	58	-3.3%	$	182	$	170	-6.6%
	Net investment income		219		213		207		209		220	0.5%		634		637	0.5%
	Other revenues		3		2		5		4		4	33.3%		10		12	20.0%
	Total operating revenues		282		276		267		270		282	0.0%		826		819	-0.8%
	Operating expenses:
	Interest credited		124		126		125		127		128	3.2%		370		379	2.4%
	Benefits		-		-		-		-		-	NM		1		1	0.0%
	Commissions incurred		19		19		19		19		20	5.3%		59		59	0.0%
	Other expenses incurred		83		88		82		84		85	2.4%		248		250	0.8%
	Amounts capitalized		(6)		(9)		(6)		(6)		(6)	0.0%		(20)		(19)	5.0%
	Amortization		5		7		6		5		10	100.0%		23		21	-8.7%
	Total operating expenses		225		231		226		229		237	5.3%		681		691	1.5%
	Income (loss) from operations before taxes		57		45		41		41		45	-21.1%		145		128	-11.7%
	Federal income tax expense (benefit)		15		12		10		10		13	-13.3%		38		34	-10.5%
	Income (loss) from operations	$	42	$	33	$	31	$	31	$	32	-23.8%	$	107	$	94	-12.1%
	Effective Federal Income Tax Rate		27.3%		25.4%		25.8%		25.6%		28.6%			26.3%		26.7%
	Average Equity, Excluding Goodwill and AOCI	$	1,010	$	1,045	$	1,067	$	1,098	$	1,128	11.7%	$	1,003	$	1,098	9.5%
	ROE, Excluding Goodwill and AOCI		16.4%		12.8%		11.5%		11.2%		11.4%			14.2%		11.4%
	Pre-tax Net Margin		36.2%		29.8%		29.1%		28.8%		29.4%			31.8%		29.1%
	Return on Average Account Values		31		25		23		22		23	(8)		26		23	(3)
	Net Flows by Market
	Small Market		88		190		13		(22)		99	12.5%	$	71	$	90	26.8%
	Mid - Large Market		359		(185)		215		191		166	-53.8%		1,303		572	-56.1%
	Multi-Fund®and Other		(196)		(226)		(150)		(165)		(168)	14.3%		(701)		(482)	31.2%
	Net Flows – Trailing Twelve Months	$	(264)	$	452	$	415	$	112	$	(41)	84.5%	$	(264)	$	(41)	84.5%
Page 14

	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 Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	166	$	174	$	172	$	177	$	174	4.8%	$	475	$	524	10.3%
	Fee income		890		538		687		721		780	-12.4%		2,187		2,188	0.0%
	Net investment income		662		628		611		633		665	0.5%		1,913		1,910	-0.2%
	Operating realized gain (loss)		-		(1)		-		-		(1)	NM		2		(1)	NM
	Other revenues		9		9		8		7		12	33.3%		23		25	8.7%
	Total operating revenues		1,727		1,348		1,478		1,538		1,630	-5.6%		4,600		4,646	1.0%
	Operating expenses:
	Interest credited		344		352		348		349		349	1.5%		1,026		1,045	1.9%
	Benefits		578		661		740		708		522	-9.7%		1,901		1,971	3.7%
	Commissions incurred		175		199		147		174		190	8.6%		497		512	3.0%
	Other expenses incurred		182		181		185		193		201	10.4%		550		579	5.3%
	Amounts capitalized		(193)		(224)		(165)		(198)		(219)	-13.5%		(555)		(582)	-4.9%
	Amortization		595		4		120		137		341	-42.7%		827		597	-27.8%
	Total operating expenses		1,681		1,173		1,375		1,363		1,384	-17.7%		4,246		4,122	-2.9%
	Income (loss) from operations before taxes		46		175		103		175		246	NM		354		524	48.0%
	Federal income tax expense (benefit)		10		56		28		55		79	NM		103		163	58.3%
	Income (loss) from operations	$	36	$	119	$	75	$	120	$	167	NM	$	251	$	361	43.8%
	Effective Federal Income Tax Rate		22.5%		31.6%		27.5%		31.3%		32.4%			29.1%		31.1%
	Average Equity, Excluding Goodwill and AOCI	$	6,506	$	6,435	$	6,405	$	6,320	$	6,272	-3.6%	$	6,384	$	6,332	-0.8%
	ROE, Excluding Goodwill and AOCI		2.2%		7.4%		4.7%		7.6%		10.6%			5.2%		7.6%
	Average Account Values	$	42,963	$	43,269	$	43,795	$	44,162	$	44,792	4.3%	$	42,774	$	44,250	3.5%
	In-Force Face Amount
	UL and other	$	328,115	$	331,299	$	331,690	$	333,006	$	334,601	2.0%	$	328,115	$	334,601	2.0%
	Term insurance		325,522		330,755		335,762		342,366		350,047	7.5%		325,522		350,047	7.5%
	Total in-force face amount	$	653,637	$	662,054	$	667,452	$	675,372	$	684,648	4.7%	$	653,637	$	684,648	4.7%
Page 15

	Lincoln Financial Group
	Group Protection – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	519	$	516	$	489	$	478	$	485	-6.6%	$	1,647	$	1,452	-11.8%
	Net investment income		48		45		42		43		45	-6.3%		138		131	-5.1%
	Other revenues		3		4		3		4		4	33.3%		7		10	42.9%
	Total operating revenues		570		565		534		525		534	-6.3%		1,792		1,593	-11.1%
	Operating expenses:
	Interest credited		-		1		1		1		1	NM		2		2	0.0%
	Benefits		386		387		340		345		291	-24.6%		1,248		976	-21.8%
	Commissions incurred		62		63		62		61		57	-8.1%		197		181	-8.1%
	Other expenses incurred		95		104		93		97		102	7.4%		282		292	3.5%
	Amounts capitalized		(16)		(27)		(15)		(17)		(14)	12.5%		(46)		(46)	0.0%
	Amortization		17		17		45		15		53	211.8%		64		113	76.6%
	Total operating expenses		544		545		526		502		490	-9.9%		1,747		1,518	-13.1%
	Income (loss) from operations before taxes		26		20		8		23		44	69.2%		45		75	66.7%
	Federal income tax expense (benefit)		9		7		3		8		16	77.8%		16		26	62.5%
	Income (loss) from operations	$	17	$	13	$	5	$	15	$	28	64.7%	$	29	$	49	69.0%
	Effective Federal Income Tax Rate		35.0%		35.0%		35.0%		35.0%		35.0%			35.0%		35.0%
	Average Equity, Excluding Goodwill and AOCI	$	1,228	$	1,217	$	1,203	$	1,159	$	1,096	-10.7%	$	1,236	$	1,152	-6.8%
	ROE, Excluding Goodwill and AOCI		5.4%		4.4%		1.8%		5.1%		10.4%			3.2%		5.6%
	Loss Ratios by Product Line
	Life		70.5%		72.3%		71.1%		70.4%		66.1%			73.4%		69.2%
	Disability		79.3%		79.5%		67.2%		74.8%		52.9%			78.1%		65.0%
	Dental		70.3%		69.1%		73.5%		70.4%		66.6%			71.9%		70.2%
	Total non-medical		74.5%		75.3%		69.6%		72.5%		60.1%			75.4%		67.4%
Page 16

	Lincoln Financial Group
	Other Operations – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Other Operations
	Operating revenues:
	Insurance premiums	$	11	$	4	$	3	$	4	$	3	-72.7%	$	11	$	12	9.1%
	Net investment income		67		62		61		56		61	-9.0%		192		175	-8.9%
	Amortization of deferred gain on
	business sold through reinsurance		18		18		18		18		18	0.0%		53		53	0.0%
	Media revenues		-		-		-		-		-	NM		31		-	-100.0%
	Other revenues		-		2		-		1		2	NM		-		4	NM
	Total operating revenues		96		86		82		79		84	-12.5%		287		244	-15.0%
	Operating expenses:
	Interest credited		20		19		20		19		17	-15.0%		61		56	-8.2%
	Benefits		52		31		29		32		49	-5.8%		108		107	-0.9%
	Media expenses		-		-		-		-		-	NM		28		-	-100.0%
	Commissions and other expenses		50		13		(8)		6		19	-62.0%		81		17	-79.0%
	Interest and debt expenses		67		68		68		68		66	-1.5%		204		202	-1.0%
	Total operating expenses		189		131		109		125		151	-20.1%		482		382	-20.7%
	Income (loss) from operations before taxes		(93)		(45)		(27)		(46)		(67)	28.0%		(195)		(138)	29.2%
	Federal income tax expense (benefit)		(28)		(19)		(12)		(18)		(41)	-46.4%		(68)		(69)	-1.5%
	Income (loss) from operations	$	(65)	$	(26)	$	(15)	$	(28)	$	(26)	60.0%	$	(127)	$	(69)	45.7%
Page 17

	Lincoln Financial Group
	Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	DAC, VOBA, and DSI
	Balance as of beginning-of-period	$	9,394	$	9,111	$	9,766	$	9,235	$	8,522	-9.3%	$	8,447	$	9,766	15.6%
	Business acquired (sold) through reinsurance		2		-		-		-		-	-100.0%		16		-	-100.0%
	Deferrals		380		415		309		332		345	-9.2%		1,112		986	-11.3%
	Operating amortization		(681)		(117)		(265)		(250)		(523)	23.2%		(1,197)		(1,037)	13.4%
	Deferrals, net of operating amortization		(301)		298		44		82		(178)	40.9%		(85)		(51)	40.0%
	Amortization associated with benefit ratio unlocking		15		(3)		2		(1)		(8)	NM		14		(7)	NM
	Adjustment related to realized (gains) losses		(26)		20		(4)		(1)		(26)	0.0%		(37)		(32)	13.5%
	Adjustment related to unrealized (gains) losses		27		340		(573)		(793)		(54)	NM		756		(1,420)	NM
	Balance as of end-of-period	$	9,111	$	9,766	$	9,235	$	8,522	$	8,256	-9.4%	$	9,111	$	8,256	-9.4%
	DFEL
	Balance as of beginning-of-period	$	1,797	$	1,593	$	1,952	$	1,696	$	1,357	-24.5%	$	1,401	$	1,952	39.3%
	Deferrals		141		150		136		150		164	16.3%		389		450	15.7%
	Operating amortization		(306)		78		(84)		(92)		(151)	50.7%		(455)		(327)	28.1%
	Deferrals, net of operating amortization		(165)		228		52		58		13	107.9%		(66)		123	286.4%
	Amortization associated with benefit ratio unlocking		2		(1)		-		-		(1)	NM		2		(1)	NM
	Adjustment related to realized (gains) losses		(3)		1		(1)		1		(5)	-66.7%		(6)		(6)	0.0%
	Adjustment related to unrealized (gains) losses		(38)		131		(307)		(398)		(78)	NM		262		(782)	NM
	Balance as of end-of-period	$	1,593	$	1,952	$	1,696	$	1,357	$	1,286	-19.3%	$	1,593	$	1,286	-19.3%
	DAC, VOBA, DSI, and DFEL Balance as
	of End-of-Period, After-Tax	$	4,887	$	5,079	$	4,900	$	4,657	$	4,531	-7.3%	$	4,887	$	4,531	-7.3%
Page 18

	Lincoln Financial Group
	Annuities – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Fixed Annuities
	Balance as of beginning-of-period	$	18,597	$	18,672	$	19,082	$	19,448	$	19,598	5.4%	$	18,661	$	19,082	2.3%
	Gross deposits		566		656		668		478		420	-25.8%		1,224		1,566	27.9%
	Full surrenders and deaths		(357)		(276)		(285)		(345)		(412)	-15.4%		(1,039)		(1,042)	-0.3%
	Other contract benefits		(168)		(176)		(127)		(130)		(137)	18.5%		(483)		(394)	18.4%
	Net flows		41		204		256		3		(129)	NM		(298)		130	143.6%
	Reinvested interest credited		31		200		103		143		163	NM		294		409	39.1%
	Sales inducements deferred		3		6		7		4		2	-33.3%		15		13	-13.3%
	Balance as of end-of-period, gross		18,672		19,082		19,448		19,598		19,634	5.2%		18,672		19,634	5.2%
	Reinsurance ceded		(645)		(631)		(619)		(608)		(597)	7.4%		(645)		(597)	7.4%
	Balance as of end-of-period, net	$	18,027	$	18,451	$	18,829	$	18,990	$	19,037	5.6%	$	18,027	$	19,037	5.6%
	Variable Annuities
	Balance as of beginning-of-period	$	106,600	$	100,581	$	103,146	$	102,903	$	103,861	-2.6%	$	104,073	$	103,146	-0.9%
	Gross deposits		2,738		2,362		1,685		1,635		1,518	-44.6%		8,451		4,838	-42.8%
	Full surrenders and deaths		(1,299)		(1,122)		(1,030)		(1,160)		(1,312)	-1.0%		(4,202)		(3,503)	16.6%
	Other contract benefits		(944)		(1,009)		(946)		(930)		(945)	-0.1%		(2,822)		(2,819)	0.1%
	Net flows		495		231		(291)		(455)		(739)	NM		1,427		(1,484)	NM
	Change in market value and reinvestment		(6,514)		2,334		48		1,413		3,351	151.4%		(4,919)		4,811	197.8%
	Balance as of end-of-period, gross		100,581		103,146		102,903		103,861		106,473	5.9%		100,581		106,473	5.9%
	Reinsurance ceded		(1)		(1)		(1)		-		-	100.0%		(1)		-	100.0%
	Balance as of end-of-period, net	$	100,580	$	103,145	$	102,902	$	103,861	$	106,473	5.9%	$	100,580	$	106,473	5.9%
	Total
	Balance as of beginning-of-period	$	125,197	$	119,253	$	122,228	$	122,351	$	123,459	-1.4%	$	122,734	$	122,228	-0.4%
	Gross deposits		3,304		3,018		2,353		2,113		1,938	-41.3%		9,675		6,404	-33.8%
	Full surrenders and deaths		(1,656)		(1,398)		(1,315)		(1,505)		(1,724)	-4.1%		(5,241)		(4,545)	13.3%
	Other contract benefits		(1,112)		(1,185)		(1,073)		(1,060)		(1,082)	2.7%		(3,305)		(3,213)	2.8%
	Net flows		536		435		(35)		(452)		(868)	NM		1,129		(1,354)	NM
	Change in market value and reinvestment		(6,483)		2,534		151		1,556		3,514	154.2%		(4,625)		5,220	212.9%
	Sales inducements deferred		3		6		7		4		2	-33.3%		15		13	-13.3%
	Balance as of end-of-period, gross		119,253		122,228		122,351		123,459		126,107	5.7%		119,253		126,107	5.7%
	Reinsurance ceded		(646)		(632)		(620)		(608)		(597)	7.6%		(646)		(597)	7.6%
	Balance as of end-of-period, net	$	118,607	$	121,596	$	121,731	$	122,851	$	125,510	5.8%	$	118,607	$	125,510	5.8%
Page 19

	Lincoln Financial Group
	Retirement Plan Services – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	General Account
	Balance as of beginning-of-period	$	16,469	$	16,649	$	16,588	$	16,727	$	16,996	3.2%	$	16,229	$	16,588	2.2%
	Gross deposits		425		562		420		448		555	30.6%		1,295		1,423	9.9%
	Withdrawals and deaths		(547)		(821)		(572)		(483)		(456)	16.6%		(1,566)		(1,512)	3.4%
	Net flows		(122)		(259)		(152)		(35)		99	181.1%		(271)		(89)	67.2%
	Transfers between fixed and variable accounts		176		71		168		178		163	-7.4%		321		509	58.6%
	Reinvestment interest credited		126		127		123		126		129	2.4%		370		379	2.4%
	Balance as of end-of-period	$	16,649	$	16,588	$	16,727	$	16,996	$	17,387	4.4%	$	16,649	$	17,387	4.4%
	Separate Account and Mutual Funds
	Balance as of beginning-of-period	$	38,520	$	36,195	$	37,512	$	37,772	$	38,434	-0.2%	$	37,310	$	37,512	0.5%
	Gross deposits		1,459		1,533		1,371		1,212		1,244	-14.7%		4,155		3,828	-7.9%
	Withdrawals and deaths		(1,086)		(1,495)		(1,141)		(1,173)		(1,246)	-14.7%		(3,211)		(3,559)	-10.8%
	Net flows		373		38		230		39		(2)	NM		944		269	-71.5%
	Transfers between fixed and variable accounts		(161)		(62)		(149)		(155)		(126)	21.7%		(317)		(431)	-36.0%
	Change in market value and reinvestment		(2,537)		1,341		179		778		1,575	162.1%		(1,742)		2,531	245.3%
	Balance as of end-of-period	$	36,195	$	37,512	$	37,772	$	38,434	$	39,881	10.2%	$	36,195	$	39,881	10.2%
	Total
	Balance as of beginning-of-period	$	54,989	$	52,844	$	54,100	$	54,499	$	55,430	0.8%	$	53,539	$	54,100	1.0%
	Gross deposits		1,884		2,095		1,791		1,660		1,799	-4.5%		5,450		5,251	-3.7%
	Withdrawals and deaths		(1,633)		(2,316)		(1,713)		(1,656)		(1,702)	-4.2%		(4,777)		(5,071)	-6.2%
	Net flows		251		(221)		78		4		97	-61.4%		673		180	-73.3%
	Transfers between fixed and variable accounts		15		9		19		23		37	146.7%		4		78	NM
	Change in market value and reinvestment		(2,411)		1,468		302		904		1,704	170.7%		(1,372)		2,910	NM
	Balance as of end-of-period	$	52,844	$	54,100	$	54,499	$	55,430	$	57,268	8.4%	$	52,844	$	57,268	8.4%
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	Lincoln Financial Group
	Life Insurance – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	General Account
	Balance as of beginning-of-period	$	34,930	$	35,213	$	35,545	$	35,640	$	35,775	2.4%	$	34,612	$	35,545	2.7%
	Deposits		1,012		1,082		945		992		1,050	3.8%		2,897		2,988	3.1%
	Withdrawals and deaths		(214)		(208)		(317)		(294)		(270)	-26.2%		(812)		(882)	-8.6%
	Net flows		798		874		628		698		780	-2.3%		2,085		2,106	1.0%
	Contract holder assessments		(855)		(882)		(868)		(898)		(921)	-7.7%		(2,499)		(2,688)	-7.6%
	Reinvested interest credited		340		340		335		335		341	0.3%		1,015		1,012	-0.3%
	Balance as of end-of-period, gross		35,213		35,545		35,640		35,775		35,975	2.2%		35,213		35,975	2.2%
	Reinsurance ceded		(770)		(763)		(763)		(760)		(756)	1.8%		(770)		(756)	1.8%
	Balance as of end-of-period, net	$	34,443	$	34,782	$	34,877	$	35,015	$	35,219	2.3%	$	34,443	$	35,219	2.3%
	Separate Account
	Balance as of beginning-of-period	$	9,766	$	9,213	$	9,696	$	9,830	$	10,172	4.2%	$	9,263	$	9,696	4.7%
	Deposits		388		460		293		399		440	13.4%		1,158		1,132	-2.2%
	Withdrawals and deaths		(167)		(164)		(91)		(119)		(118)	29.3%		(407)		(328)	19.4%
	Net flows		221		296		202		280		322	45.7%		751		804	7.1%
	Contract holder assessments		(132)		(143)		(135)		(143)		(153)	-15.9%		(390)		(431)	-10.5%
	Change in market value and reinvestment		(642)		330		67		205		422	165.7%		(411)		694	268.9%
	Balance as of end-of-period, gross		9,213		9,696		9,830		10,172		10,763	16.8%		9,213		10,763	16.8%
	Reinsurance ceded		(788)		(809)		(786)		(785)		(800)	-1.5%		(788)		(800)	-1.5%
	Balance as of end-of-period, net	$	8,425	$	8,887	$	9,044	$	9,387	$	9,963	18.3%	$	8,425	$	9,963	18.3%
	Total
	Balance as of beginning-of-period	$	44,696	$	44,426	$	45,241	$	45,470	$	45,947	2.8%	$	43,875	$	45,241	3.1%
	Deposits		1,400		1,542		1,238		1,391		1,490	6.4%		4,055		4,120	1.6%
	Withdrawals and deaths		(381)		(372)		(408)		(413)		(388)	-1.8%		(1,219)		(1,210)	0.7%
	Net flows		1,019		1,170		830		978		1,102	8.1%		2,836		2,910	2.6%
	Contract holder assessments		(987)		(1,025)		(1,003)		(1,041)		(1,074)	-8.8%		(2,889)		(3,119)	-8.0%
	Change in market value and reinvestment		(302)		670		402		540		763	NM		604		1,706	182.5%
	Balance as of end-of-period, gross		44,426		45,241		45,470		45,947		46,738	5.2%		44,426		46,738	5.2%
	Reinsurance ceded		(1,558)		(1,572)		(1,549)		(1,545)		(1,556)	0.1%		(1,558)		(1,556)	0.1%
	Balance as of end-of-period, net	$	42,868	$	43,669	$	43,921	$	44,402	$	45,182	5.4%	$	42,868	$	45,182	5.4%
Page 21

	Lincoln Financial Group
	Select Investment Data
	Unaudited (millions of dollars)
		As of 9/30/15				As of 12/31/15				As of 9/30/16
		Amount		%		Amount		%		Amount		%
	AFS and Trading Securities, at Fair Value
	AFS securities:
	Corporate bonds	$	74,432		84.3%	$	74,032		84.5%	$	81,369		85.3%
	U.S. government bonds		438		0.5%		429		0.5%		458		0.5%
	Foreign government bonds		532		0.6%		524		0.6%		530		0.6%
	Mortgage-backed securities		4,252		4.8%		4,104		4.7%		4,019		4.2%
	Asset-backed collateralized debt obligations		515		0.6%		589		0.7%		686		0.7%
	State and municipal bonds		4,480		5.1%		4,480		5.1%		4,939		5.2%
	Hybrid and redeemable preferred securities		857		1.0%		806		0.9%		631		0.7%
	VIEs’ fixed maturity securities		598		0.7%		598		0.7%		600		0.6%
	Equity securities		242		0.3%		237		0.3%		273		0.3%
	Total AFS securities		86,346		97.9%		85,799		98.0%		93,505		98.1%
	Trading securities		1,914		2.1%		1,854		2.0%		1,808		1.9%
	Total AFS and trading securities	$	88,260		100.0%	$	87,653		100.0%	$	95,313		100.0%
	AFS and Trading Securities, at Amortized Cost
	Fixed maturity securities	$	83,164		99.7%	$	84,241		99.7%	$	85,860		99.7%
	Equity securities		231		0.3%		226		0.3%		259		0.3%
	Total AFS and trading securities	$	83,395		100.0%	$	84,467		100.0%	$	86,119		100.0%
	Percentage of Fixed Maturity AFS Securities, at Amortized Cost
	Investment grade				95.0%				95.1%				94.9%
	Below investment grade				5.0%				4.9%				5.1%
Page 22

	Lincoln Financial Group
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Realized Gain (Loss), Pre-Tax
	Total operating realized gain (loss)	$	45	$	43	$	44	$	44	$	44	-2.2%	$	135	$	131	-3.0%
	Total excluded realized gain (loss)		(18)		(183)		(158)		(89)		(7)	61.1%		(146)		(252)	-72.6%
	Total realized gain (loss), pre-tax	$	27	$	(140)	$	(114)	$	(45)	$	37	37.0%	$	(11)	$	(121)	NM
	Excluded Realized Gain (Loss) Net of
	Benefit Ratio Unlocking, After-Tax
	Total excluded realized gain (loss)	$	(11)	$	(118)	$	(102)	$	(57)	$	(4)	63.6%	$	(95)	$	(164)	-72.6%
	Benefit ratio unlocking		(51)		19		(4)		9		30	158.8%		(48)		34	170.8%
	Net gain (loss), after-tax	$	(62)	$	(99)	$	(106)	$	(48)	$	26	141.9%	$	(143)	$	(130)	9.1%
	Realized Gain (Loss) Net of Benefit Ratio
	Unlocking, After-Tax
	Realized gain (loss) related to investments	$	(26)	$	(35)	$	(64)	$	(47)	$	(28)	-7.7%	$	(51)	$	(140)	NM
	Variable annuity net derivative results:
	Hedge program performance, including unlocking
	for GLB reserves hedged		(102)		(13)		(94)		(23)		82	180.4%		(136)		(35)	74.3%
	GLB non-performance risk component		84		(43)		67		24		(32)	NM		83		59	-28.9%
	Total variable annuity net derivative results		(18)		(56)		(27)		1		50	NM		(53)		24	145.3%
	Indexed annuity forward-starting option		(18)		(8)		(15)		(2)		4	122.2%		(37)		(14)	62.2%
	Gain (loss) on sale of subsidiaries/businesses		-		-		-		-		-	NM		(2)		-	100.0%
	Excluded realized gain (loss) net of
	benefit ratio unlocking, after-tax	$	(62)	$	(99)	$	(106)	$	(48)	$	26	141.9%	$	(143)	$	(130)	9.1%
	Components of Realized Gain (Loss)
	Related to Investments, After-Tax
	OTTI	$	(12)	$	(10)	$	(23)	$	(18)	$	(8)	27.8%	$	(25)	$	(49)	-96.0%
	Other realized gain (loss) related to certain investments		(4)		(12)		(46)		(24)		(19)	NM		(10)		(90)	NM
	Gain (loss) on the mark-to-market on certain instruments		(10)		(13)		5		(5)		(1)	90.0%		(16)		(1)	93.8%
	Total realized gain (loss) related
	to investments, after-tax	$	(26)	$	(35)	$	(64)	$	(47)	$	(28)	-7.7%	$	(51)	$	(140)	NM
Page 23

	Lincoln Financial Group
	Select GAAP to Non-GAAP Reconciliations
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/15		12/31/15		3/31/16		6/30/16		9/30/16		Change	9/30/15		9/30/16		Change
	Revenues
	Total revenues	$	3,716	$	3,172	$	3,243	$	3,307	$	3,525	-5.1%	$	10,400	$	10,076	-3.1%
	Less:
	Excluded realized gain (loss)		(18)		(183)		(158)		(89)		(7)	61.1%		(146)		(252)	-72.6%
	Amortization of DFEL on benefit ratio unlocking		(2)		-		-		-		1	150.0%		(2)		1	150.0%
	Amortization of deferred gains arising from reserve
	changes on business sold through reinsurance		1		1		1		1		1	0.0%		2		2	0.0%
	Operating revenues	$	3,735	$	3,354	$	3,400	$	3,395	$	3,530	-5.5%	$	10,546	$	10,325	-2.1%
	Net Income
	Net income (loss)	$	227	$	283	$	208	$	325	$	467	105.7%	$	871	$	999	14.7%
	Less:
	Excluded realized gain (loss)		(11)		(118)		(102)		(57)		(4)	63.6%		(95)		(164)	-72.6%
	Benefit ratio unlocking		(51)		19		(4)		9		30	158.8%		(48)		34	170.8%
	Income (loss) from reserve changes (net of related
	amortization) on business sold through reinsurance		-		-		-		-		-	NM		1		1	0.0%
	Income (loss) from operations	$	289	$	382	$	314	$	373	$	441	52.6%	$	1,013	$	1,128	11.4%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	0.87	$	1.14	$	0.82	$	1.35	$	2.00	129.9%	$	3.37	$	4.16	23.4%
	Less:
	Excluded realized gain (loss)		(0.04)		(0.48)		(0.41)		(0.25)		(0.02)	50.0%		(0.36)		(0.68)	-88.9%
	Benefit ratio unlocking		(0.20)		0.08		(0.02)		0.04		0.13	165.0%		(0.19)		0.14	173.7%
	Income (loss) from operations	$	1.11	$	1.54	$	1.25	$	1.56	$	1.89	70.3%	$	3.92	$	4.70	19.9%
Page 24