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
Autonomous Research U.S., L.P.	Erik Bass					646-561-6248
B. Riley FBR	Randy Binner					703-312-1890
Bank of America Merrill Lynch	Jay Cohen					646-855-5716
Barclays Capital	Jay Gelb					212-526-1561
Citi Research	Suneet Kamath					212-816-3457
Credit Suisse	Andrew Kligerman					212-325-5069
Deutsche Bank	Joshua Shanker					212-250-7127
Dowling & Partners	Humphrey Lee					860-676-7324
Evercore	Thomas Gallagher					212-446-9439
Goldman Sachs	Alex Scott					917-343-7160
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
RBC Capital Markets	Mark Dwelle					804-782-4008
Sandler O’Neill & Partners, L.P.	John Barnidge					312-281-3412
UBS	John Nadel					212-713-4299
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 1st, 2018
						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-
Liberty Life Assurance Company of Boston		A				AA-
Investor Inquiries May Be Directed To:
Chris Giovanni, Senior Vice President, Investor Relations
Email:  Christopher.Giovanni@lfg.com
Phone:  484-583-1793
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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 adjusted 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 adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted 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;

• 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;

• 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.

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Lincoln Financial Group

Notes

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.

• 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 adjusted 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 the fair value of equity securities

• 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;

• Acquisition and integration costs related to mergers and acquisitions; and

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.

Adjusted 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.

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Lincoln Financial Group

Notes

We use our prevailing federal income tax rates of 21% and 35%, where applicable, 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 adjusted operating revenues and adjusted

income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.

Prior year net flows have been restated to conform to the current year presentation, which has been modified to be consistent across our business segments.

Statistical Supplement is Dated

The financial data in this document is dated November 1, 2018, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.

Page 2c

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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Revenues
Insurance premiums	$	774	$	874	$	777	$	1,165	$	1,323	70.9%	$	2,382	$	3,265	37.1%
Fee income		1,401		1,471		1,456		1,470		1,550	10.6%		4,148		4,475	7.9%
Net investment income		1,239		1,252		1,233		1,232		1,271	2.6%		3,738		3,736	-0.1%
Realized gain (loss):
Other-than-temporary impairment (“OTTI”)		(8)		(2)		(2)		(1)		(2)	75.0%		(16)		(5)	68.8%
Realized gain (loss), excluding OTTI		(48)		(63)		14		(6)		(53)	-14.6%		(89)		(46)	48.3%
Total realized gain (loss)		(56)		(65)		12		(7)		(55)	1.8%		(105)		(51)	51.4%
Amortization of deferred gains on business
sold through reinsurance		-		-		-		-		-	NM		22		1	-95.5%
Other revenues		153		137		131		160		175	14.4%		403		467	15.9%
Total revenues		3,511		3,669		3,609		4,020		4,264	21.4%		10,588		11,893	12.3%
Expenses
Interest credited		647		650		653		647		652	0.8%		1,940		1,952	0.6%
Benefits		1,261		1,321		1,358		1,661		1,626	28.9%		3,839		4,646	21.0%
Commissions and other expenses		1,020		1,108		1,057		1,177		1,367	34.0%		3,068		3,600	17.3%
Interest and debt expense		63		63		91		68		69	9.5%		190		228	20.0%
Strategic digitization expense		10		10		15		16		18	80.0%		33		49	48.5%
Impairment of intangibles		-		905		-		-		-	NM		-		-	NM
Total expenses		3,001		4,057		3,174		3,569		3,732	24.4%		9,070		10,475	15.5%
Income (loss) from continuing operations before taxes		510		(388)		435		451		532	4.3%		1,518		1,418	-6.6%
Federal income tax expense (benefit)		92		(1,204)		68		66		42	-54.3%		254		176	-30.7%
Net income (loss)		418		816		367		385		490	17.2%		1,264		1,242	-1.7%
Adjustment for LNC stock units in our
deferred compensation plans		-		2		(2)		(8)		-	NM		5		(6)	NM
Net income (loss) available to common
stockholders – diluted	$	418	$	818	$	365	$	377	$	490	17.2%	$	1,269	$	1,236	-2.6%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.87	$	3.67	$	1.64	$	1.70	$	2.24	19.8%	$	5.58	$	5.59	0.2%
ROE, including AOCI
Net income (loss)		10.3%		19.4%		8.8%		9.9%		13.0%			10.9%		10.5%
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Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change
ASSETS
Investments:
Available-for-sale (“AFS”) securities:
Corporate bonds	$	82,319	$	83,190	$	80,680	$	81,059	$	81,065	-1.5%
U.S. government bonds		574		567		401		422		409	-28.7%
Foreign government bonds		455		451		440		471		459	0.9%
Mortgage-backed securities		4,037		4,065		4,037		4,121		4,035	0.0%
Asset-backed collateralized debt obligations		694		808		875		1,119		1,362	96.3%
State and municipal bonds		5,049		5,119		5,000		5,248		5,218	3.3%
Hybrid and redeemable preferred securities		639		640		626		620		613	-4.1%
AFS Equity securities		302		246		-		-		-	-100.0%
Total AFS securities		94,069		95,086		92,059		93,060		93,161	-1.0%
Trading securities		1,665		1,620		1,553		1,450		1,440	-13.5%
Equity securities		-		-		112		112		112	NM
Mortgage loans on real estate		10,382		10,762		11,047		12,217		12,561	21.0%
Real estate		11		11		11		11		12	9.1%
Policy loans		2,417		2,399		2,389		2,508		2,490	3.0%
Derivative investments		960		915		827		584		706	-26.5%
Other investments		2,210		2,296		2,049		2,065		2,204	-0.3%
Total investments		111,714		113,089		110,047		112,007		112,686	0.9%
Cash and invested cash		1,965		1,628		2,257		1,775		1,460	-25.7%
DAC and VOBA		8,543		8,403		9,289		9,904		10,014	17.2%
Premiums and fees receivable		370		396		480		574		592	60.0%
Accrued investment income		1,137		1,078		1,137		1,119		1,168	2.7%
Reinsurance recoverables		5,062		4,907		5,009		17,979		18,271	260.9%
Funds withheld reinsurance assets		602		593		576		572		566	-6.0%
Goodwill		2,273		1,368		1,368		1,750		1,757	-22.7%
Other assets		5,507		6,082		6,313		8,921		9,644	75.1%
Separate account assets		139,612		144,219		142,761		144,231		147,692	5.8%
Total assets	$	276,785	$	281,763	$	279,237	$	298,832	$	303,850	9.8%
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Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	22,547	$	22,887	$	22,923	$	33,718	$	33,988	50.7%
Other contract holder funds		79,623		80,209		80,710		88,698		89,906	12.9%
Short-term debt		450		450		250		-		-	-100.0%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		865		865		865		865		865	0.0%
Financial		4,035		4,029		4,783		4,961		4,939	22.4%
Reinsurance related embedded derivatives		63		57		34		25		20	-68.3%
Funds withheld reinsurance liabilities		1,807		1,761		1,726		1,711		1,733	-4.1%
Deferred gain on business sold through reinsurance		2		1		1		1		1	-50.0%
Payables for collateral on investments		4,968		4,417		4,265		4,699		4,212	-15.2%
Other liabilities		6,499		5,546		4,934		4,746		5,424	-16.5%
Separate account liabilities		139,612		144,219		142,761		144,231		147,692	5.8%
Total liabilities		260,471		264,441		263,252		283,655		288,780	10.9%
Stockholders’ Equity
Common stock		5,717		5,693		5,700		5,674		5,619	-1.7%
Retained earnings		7,738		8,399		8,052		8,302		8,615	11.3%
AOCI:
Unrealized investment gains (losses)		3,149		3,501		2,533		1,502		1,138	-63.9%
Foreign currency translation adjustment		(16)		(14)		(9)		(18)		(20)	-25.0%
Funded status of employee benefit plans		(274)		(257)		(291)		(283)		(282)	-2.9%
Total AOCI		2,859		3,230		2,233		1,201		836	-70.8%
Total stockholders’ equity		16,314		17,322		15,985		15,177		15,070	-7.6%
Total liabilities and stockholders’ equity	$	276,785	$	281,763	$	279,237	$	298,832	$	303,850	9.8%
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Lincoln Financial Group
Earnings, Shares and Return on Equity
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Income (Loss)
Net income (loss)	$	418	$	816	$	367	$	385	$	490	17.2%	$	1,264	$	1,242	-1.7%
Pre-tax adjusted income (loss) from operations		566		581		512		540		599	5.8%		1,596		1,650	3.4%
After-tax adjusted income (loss) from operations (1)		454		440		441		454		510	12.3%		1,314		1,405	6.9%
Adjusted operating tax rate		19.8%		24.3%		13.9%		15.9%		14.9%			17.7%		14.8%
Average Stockholders’ Equity
Average equity, including AOCI	$	16,155	$	16,818	$	16,653	$	15,581	$	15,124	-6.4%	$	15,455	$	15,786	2.1%
Average AOCI		2,785		3,044		3,052		1,717		1,019	-63.4%		2,257		1,929	-14.5%
Average equity, excluding AOCI	$	13,370	$	13,774	$	13,601	$	13,864	$	14,105	5.5%	$	13,198	$	13,857	5.0%
ROE, excluding AOCI
Net income (loss)		12.5%		23.7%		10.8%		11.1%		13.9%			12.8%		12.0%
Adjusted income (loss) from operations		13.6%		12.8%		13.0%		13.1%		14.5%			13.3%		13.5%
Per Share
Net income (loss) (diluted)	$	1.87	$	3.67	$	1.64	$	1.70	$	2.24	19.8%	$	5.58	$	5.59	0.2%
Adjusted income (loss) from operations (diluted)		2.03		1.98		1.97		2.02		2.34	15.3%		5.80		6.33	9.1%
Dividends declared during the period		0.29		0.33		0.33		0.33		0.33	13.8%		0.87		0.99	13.8%
Book value, including AOCI	$	74.31	$	79.43	$	73.09	$	69.85	$	70.17	-5.6%	$	74.31	$	70.17	-5.6%
Per share impact of AOCI		13.02		14.81		10.21		5.53		3.90	-70.0%		13.02		3.90	-70.0%
Book value, excluding AOCI	$	61.29	$	64.62	$	62.88	$	64.32	$	66.27	8.1%	$	61.29	$	66.27	8.1%
Shares
Repurchased during the period		2.8		1.7		-		1.5		2.7	-3.6%		8.7		4.1	-52.9%
End-of-period – basic		219.5		218.1		218.7		217.3		214.8	-2.1%		219.5		214.8	-2.1%
End-of-period – diluted		222.7		221.3		222.4		220.7		217.4	-2.4%		222.7		217.4	-2.4%
Average for the period – diluted		223.9		221.9		222.3		221.6		218.5	-2.4%		227.4		221.1	-2.8%
(1) See reconciliation to net income (loss) on page 24.
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Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Cash Returned to Common Stockholders
Shares repurchased	$	200	$	125	$	-	$	100	$	175	-12.5%	$	600	$	275	-54.2%
Common dividends		64		64		72		72		72	12.5%		195		216	10.8%
Total cash returned to common stockholders	$	264	$	189	$	72	$	172	$	247	-6.4%	$	795	$	491	-38.2%
Leverage Ratio
Short-term debt	$	450	$	450	$	250	$	-	$	-	-100.0%
Long-term debt		4,900		4,894		5,648		5,826		5,804	18.4%
Total debt (1)		5,350		5,344		5,898		5,826		5,804	8.5%
Less:
Operating debt (2)		865		865		865		865		865	0.0%
25% of capital securities		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		261		254		200		178		155	-40.6%
Total numerator	$	3,922	$	3,923	$	4,531	$	4,481	$	4,482	14.3%
Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,165	$	13,821	$	13,452	$	13,675	$	13,932	5.8%
Add:  25% of capital securities		302		302		302		302		302	0.0%
Total numerator		3,922		3,923		4,531		4,481		4,482	14.3%
Total denominator	$	17,389	$	18,046	$	18,285	$	18,458	$	18,716	7.6%
Leverage ratio		22.6%		21.7%		24.8%		24.3%		23.9%
Holding Company Available Liquidity	$	569	$	605	$	1,063	$	484	$	465	-18.3%
(1) Excludes obligations under capital leases of $327 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.
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Lincoln Financial Group
Segment and Sources of Earnings
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	350	$	333	$	313	$	322	$	350	0.0%	$	940	$	985	4.8%
Retirement Plan Services		48		57		48		51		47	-2.1%		147		146	-0.7%
Life Insurance		175		223		172		185		217	24.0%		556		574	3.2%
Group Protection		63		31		37		57		79	25.4%		127		173	36.2%
Other Operations		(70)		(63)		(58)		(75)		(94)	-34.3%		(174)		(228)	-31.0%
Adjusted income (loss) from operations, before
income taxes	$	566	$	581	$	512	$	540	$	599	5.8%	$	1,596	$	1,650	3.4%
Income (Loss) from Operations, After-Tax
Annuities	$	277	$	265	$	267	$	275	$	302	9.0%	$	809	$	844	4.3%
Retirement Plan Services		35		41		43		43		40	14.3%		109		125	14.7%
Life Insurance		121		152		144		150		176	45.5%		384		470	22.4%
Group Protection		41		20		29		45		63	53.7%		83		137	65.1%
Other Operations		(20)		(38)		(42)		(59)		(71)	NM		(71)		(171)	NM
Adjusted income (loss) from operations	$	454	$	440	$	441	$	454	$	510	12.3%	$	1,314	$	1,405	6.9%
	For the Three Months Ended											For the Trailing Twelve Months
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Sources of Earnings, Pre-Tax
Investment spread	$	188	$	202	$	161	$	172	$	169	-10.1%	$	745	$	705	-5.4%
Mortality/morbidity		156		156		132		159		198	26.9%		581		645	11.0%
Fees on AUM		280		249		247		256		264	-5.7%		939		1,017	8.3%
VA riders		12		37		30		28		62	NM		110		157	42.7%
Total sources of earnings, before income taxes		636		644		570		615		693	9.0%		2,375		2,524	6.3%
Other Operations		(70)		(63)		(58)		(75)		(94)	-34.3%		(246)		(292)	-18.7%
Adjusted income (loss) from operations, before
income taxes	$	566	$	581	$	512	$	540	$	599	5.8%	$	2,129	$	2,232	4.8%
Sources of Earnings, Pre-Taxes, Percentage By Component
Investment spread		29.6%		31.4%		28.2%		28.0%		24.4%			31.4%		27.9%
Mortality/morbidity		24.6%		24.2%		23.1%		26.0%		28.5%			24.5%		25.6%
Fees on AUM		43.9%		38.6%		43.4%		41.5%		38.2%			39.5%		40.3%
VA riders		1.9%		5.8%		5.3%		4.5%		8.9%			4.6%		6.2%
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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Annuities
Operating revenues	$	1,073	$	1,167	$	1,073	$	1,106	$	1,118	4.2%	$	3,211	$	3,297	2.7%
Deposits		1,916		2,787		2,526		2,983		3,080	60.8%		5,924		8,589	45.0%
Net flows		(841)		(222)		(606)		(126)		(81)	90.4%		(2,484)		(814)	67.2%
Average account values		132,304		135,417		138,290		136,741		138,639	4.8%		130,169		137,915	6.0%
Retirement Plan Services
Operating revenues	$	291	$	302	$	292	$	292	$	294	1.0%	$	863	$	878	1.7%
Deposits		1,908		2,426		2,360		2,217		3,328	74.4%		6,138		7,905	28.8%
Net flows		442		440		463		499		1,411	219.2%		1,003		2,373	136.6%
Average account values		63,665		66,212		68,249		68,534		71,293	12.0%		61,636		69,477	12.7%
Life Insurance
Operating revenues	$	1,614	$	1,684	$	1,660	$	1,680	$	1,766	9.4%	$	4,874	$	5,106	4.8%
Deposits		1,462		1,896		1,534		1,517		1,523	4.2%		4,422		4,575	3.5%
Net flows		1,064		1,443		1,076		1,084		1,080	1.5%		3,090		3,240	4.9%
Average account values		47,547		48,481		49,165		49,548		50,201	5.6%		46,845		49,638	6.0%
Average in-force face amount		708,148		715,924		722,585		727,577		733,216	3.5%		701,833		727,793	3.7%
Group Protection
Operating revenues	$	564	$	554	$	553	$	937	$	1,128	100.0%	$	1,646	$	2,618	59.1%
Non-medical earned premiums		500		509		508		846		1,011	102.2%		1,488		2,366	59.0%
Consolidated
Adjusted operating revenues (1)	$	3,607	$	3,775	$	3,645	$	4,073	$	4,362	20.9%	$	10,814	$	12,081	11.7%
Deposits		5,286		7,109		6,420		6,717		7,931	50.0%		16,484		21,069	27.8%
Net flows		665		1,661		933		1,457		2,410	262.4%		1,609		4,799	198.3%
Average account values		243,516		250,110		255,704		254,823		260,133	6.8%		238,650		257,030	7.7%
(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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Sales
Annuities:
With guaranteed living benefits	$	959	$	1,504	$	1,447	$	1,496	$	1,416	47.7%	$	2,871	$	4,361	51.9%
Without guaranteed living benefits		573		638		587		598		774	35.1%		1,729		1,958	13.2%
Variable		1,532		2,142		2,034		2,094		2,190	43.0%		4,600		6,319	37.4%
Fixed		384		645		492		889		890	131.8%		1,324		2,270	71.5%
Total Annuities	$	1,916	$	2,787	$	2,526	$	2,983	$	3,080	60.8%	$	5,924	$	8,589	45.0%
Retirement Plan Services:
First-year sales	$	672	$	1,166	$	800	$	841	$	1,977	194.2%	$	2,209	$	3,618	63.8%
Recurring deposits		1,236		1,260		1,560		1,376		1,351	9.3%		3,929		4,287	9.1%
Total Retirement Plan Services	$	1,908	$	2,426	$	2,360	$	2,217	$	3,328	74.4%	$	6,138	$	7,905	28.8%
Life Insurance:
UL	$	10	$	11	$	10	$	10	$	9	-10.0%	$	42	$	29	-31.0%
MoneyGuard®		65		64		56		57		53	-18.5%		203		168	-17.2%
IUL		19		17		14		14		13	-31.6%		53		41	-22.6%
VUL		45		63		58		46		62	37.8%		131		164	25.2%
Term		29		30		25		29		26	-10.3%		84		80	-4.8%
Total individual life insurance		168		185		163		156		163	-3.0%		513		482	-6.0%
Executive Benefits		10		57		10		6		4	-60.0%		43		20	-53.5%
Total Life Insurance	$	178	$	242	$	173	$	162	$	167	-6.2%	$	556	$	502	-9.7%
Group Protection:
Life	$	33	$	95	$	23	$	31	$	69	109.1%	$	84	$	122	45.2%
Disability		35		108		21		38		73	108.6%		90		134	48.9%
Dental		26		62		11		25		16	-38.5%		65		52	-20.0%
Total Group Protection	$	94	$	265	$	55	$	94	$	158	68.1%	$	239	$	308	28.9%
Percent employee-paid		44.7%		48.0%		53.4%		39.9%		40.0%			45.3%		42.3%
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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Operating Revenues
Annuities	$	1,073	$	1,167	$	1,073	$	1,106	$	1,118	4.2%	$	3,211	$	3,297	2.7%
Retirement Plan Services		291		302		292		292		294	1.0%		863		878	1.7%
Life Insurance		1,614		1,684		1,660		1,680		1,766	9.4%		4,874		5,106	4.8%
Group Protection		564		554		553		937		1,128	100.0%		1,646		2,618	59.1%
Other Operations		65		68		67		58		56	-13.8%		220		182	-17.3%
Total adjusted operating revenues	$	3,607	$	3,775	$	3,645	$	4,073	$	4,362	20.9%	$	10,814	$	12,081	11.7%
General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities		114	$	121	$	116	$	111	$	116	1.8%	$	346	$	343	-0.9%
Retirement Plan Services		77		80		76		75		75	-2.6%		231		226	-2.2%
Life Insurance		125		133		118		113		119	-4.8%		371		350	-5.7%
Group Protection		85		90		80		140		174	104.7%		235		392	66.8%
Other Operations		29		31		28		28		34	17.2%		77		91	18.2%
Total	$	430	$	455	$	418	$	467	$	518	20.5%	$	1,260	$	1,402	11.3%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.6%		10.3%		10.8%		10.0%		10.4%			10.8%		10.4%
Retirement Plan Services		26.5%		26.5%		25.9%		25.7%		25.6%			26.8%		25.8%
Life Insurance		7.8%		7.9%		7.1%		6.7%		6.8%			7.6%		6.9%
Group Protection		15.1%		16.2%		14.5%		14.9%		15.3%			14.3%		15.0%
Other Operations		42.1%		47.7%		42.0%		50.2%		59.9%			34.8%		50.2%
Total		11.9%		12.1%		11.5%		11.5%		11.9%			11.7%		11.6%
(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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	479	$	519	$	460	$	515	$	572	19.4%	$	1,400	$	1,546	10.4%
Commissions		555		623		596		623		650	17.1%		1,685		1,869	10.9%
Taxes, licenses and fees		57		60		78		79		82	43.9%		191		240	25.7%
Interest and debt expense		63		63		68		68		69	9.5%		190		205	7.9%
Expenses associated with reserve financing
and unrelated letters of credit		20		21		20		21		21	5.0%		62		62	0.0%
Total adjusted operating commissions and other
expenses incurred		1,174		1,286		1,222		1,306		1,394	18.7%		3,528		3,922	11.2%
Less Amounts Capitalized
General and administrative expenses		(49)		(64)		(42)		(48)		(54)	-10.2%		(140)		(144)	-2.9%
Commissions		(254)		(308)		(289)		(292)		(313)	-23.2%		(795)		(894)	-12.5%
Taxes, licenses and fees		(10)		(16)		(11)		(10)		(9)	10.0%		(32)		(29)	9.4%
Total amounts capitalized		(313)		(388)		(342)		(350)		(376)	-20.1%		(967)		(1,067)	-10.3%
Total expenses incurred, net of amounts
capitalized, excluding amortization		861		898		880		956		1,018	18.2%		2,561		2,855	11.5%
Amortization
Amortization of DAC, VOBA and other intangibles		221		276		259		262		420	90.0%		704		942	33.8%
Total adjusted operating commissions and
other expenses	$	1,082	$	1,174	$	1,139	$	1,218	$	1,438	32.9%	$	3,265	$	3,797	16.3%
Page 11

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Annuities
Earned rate on reserves		3.94%		3.93%		3.87%		3.84%		3.89%	(5)		4.00%		3.86%	(14)
Variable investment income on reserves (1)		0.33%		0.31%		0.08%		0.13%		0.13%	(20)		0.21%		0.11%	(10)
Net investment income yield on reserves		4.27%		4.24%		3.95%		3.97%		4.02%	(25)		4.21%		3.97%	(24)
Interest rate credited to contract holders		2.29%		2.27%		2.32%		2.23%		2.24%	(5)		2.36%		2.26%	(10)
Interest rate spread		1.98%		1.97%		1.63%		1.74%		1.78%	(20)		1.85%		1.71%	(14)
Base spreads excluding variable investment income		1.65%		1.66%		1.55%		1.61%		1.65%	-		1.64%		1.60%	(4)
Retirement Plan Services
Earned rate on reserves		4.31%		4.33%		4.28%		4.25%		4.19%	(12)		4.32%		4.24%	(8)
Variable investment income on reserves (1)		0.15%		0.33%		0.09%		0.12%		0.10%	(5)		0.14%		0.11%	(3)
Net investment income yield on reserves		4.46%		4.66%		4.37%		4.37%		4.29%	(17)		4.46%		4.35%	(11)
Interest rate credited to contract holders		2.93%		2.91%		2.90%		2.90%		2.90%	(3)		2.92%		2.90%	(2)
Interest rate spread		1.53%		1.75%		1.47%		1.47%		1.39%	(14)		1.54%		1.45%	(9)
Base spreads excluding variable investment income		1.38%		1.42%		1.38%		1.35%		1.29%	(9)		1.40%		1.34%	(6)
Life Insurance – Interest-Sensitive
Earned rate on reserves		5.06%		5.06%		4.98%		4.98%		4.85%	(21)		5.07%		4.93%	(14)
Variable investment income on reserves (1)		0.27%		0.27%		0.27%		0.16%		0.38%	11		0.35%		0.27%	(8)
Net investment income yield on reserves		5.33%		5.33%		5.25%		5.14%		5.23%	(10)		5.42%		5.20%	(22)
Interest rate credited to contract holders		3.83%		3.87%		3.83%		3.80%		3.81%	(2)		3.83%		3.81%	(2)
Interest rate spread		1.50%		1.46%		1.42%		1.34%		1.42%	(8)		1.59%		1.39%	(20)
Base spreads excluding variable investment income		1.23%		1.19%		1.15%		1.18%		1.04%	(19)		1.24%		1.12%	(12)
Total (2)
Earned rate (3)		4.52%		4.53%		4.50%		4.46%		4.37%	(15)		4.57%		4.45%	(12)
Variable investment income (1) (3)		0.28%		0.29%		0.23%		0.17%		0.29%	1		0.29%		0.22%	(7)
Net investment income yield (3)		4.80%		4.82%		4.73%		4.63%		4.66%	(14)		4.86%		4.67%	(19)
Interest rate credited to contract holders		3.19%		3.21%		3.20%		3.16%		3.17%	(2)		3.22%		3.18%	(4)
Interest rate spread		1.61%		1.61%		1.53%		1.47%		1.49%	(12)		1.64%		1.49%	(15)
Base spreads excluding variable investment income		1.33%		1.32%		1.30%		1.30%		1.20%	(13)		1.35%		1.27%	(8)
(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)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	82	$	162	$	70	$	109	$	102	24.4%	$	312	$	282	-9.6%
Fee income		574		585		586		587		598	4.2%		1,660		1,771	6.7%
Net investment income		260		258		249		244		251	-3.5%		779		743	-4.6%
Operating realized gain (loss)		44		44		48		48		46	4.5%		134		142	6.0%
Other revenues		113		118		120		118		121	7.1%		326		359	10.1%
Total operating revenues		1,073		1,167		1,073		1,106		1,118	4.2%		3,211		3,297	2.7%
Operating expenses:
Interest credited		145		144		148		144		145	0.0%		438		437	-0.2%
Benefits		135		224		145		183		149	10.4%		502		477	-5.0%
Commissions incurred		216		254		244		265		278	28.7%		662		787	18.9%
Other expenses incurred		220		234		232		222		233	5.9%		657		687	4.6%
Amounts capitalized		(90)		(126)		(120)		(134)		(147)	-63.3%		(285)		(401)	-40.7%
Amortization		97		104		111		104		110	13.4%		297		325	9.4%
Total operating expenses		723		834		760		784		768	6.2%		2,271		2,312	1.8%
Income (loss) from operations before taxes		350		333		313		322		350	0.0%		940		985	4.8%
Federal income tax expense (benefit)		73		68		46		47		48	-34.2%		131		141	7.6%
Income (loss) from operations	$	277	$	265	$	267	$	275	$	302	9.0%	$	809	$	844	4.3%
Effective Federal Income Tax Rate		20.8%		20.3%		14.7%		14.6%		13.6%			14.0%		14.3%
Average Equity, Excluding Goodwill and AOCI	$	4,982	$	5,093	$	4,954	$	5,002	$	5,045	1.3%	$	4,775	$	5,001	4.7%
ROE, Excluding Goodwill and AOCI		22.3%		20.9%		21.6%		22.0%		23.9%			22.6%		22.5%
Return on Average Account Values		84		78		77		81		87	3		83		82	(1)
Income (Loss) from Operations
Variable annuity		224		217		220		225		264	17.9%		669		708	5.8%
Fixed annuity		53		48		47		50		38	-28.3%		140		136	-2.9%
Account Values
Variable annuity account values:
Average	$	112,888	$	115,981	$	118,782	$	117,177	$	118,838	5.3%	$	110,764	$	118,271	6.8%
End-of-period		114,270		117,479		116,172		116,901		119,430	4.5%		114,270		119,430	4.5%
Fixed annuity account values:
Average		19,416		19,436		19,508		19,564		19,801	2.0%		19,405		19,644	1.2%
End-of-period		19,394		19,537		19,457		19,655		19,855	2.4%		19,394		19,855	2.4%
Page 13

Lincoln Financial Group
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	63	$	64	$	64	$	64	$	65	3.2%	$	183	$	194	6.0%
Net investment income		223		233		222		222		223	0.0%		666		668	0.3%
Other revenues		5		5		6		6		6	20.0%		14		16	14.3%
Total operating revenues		291		302		292		292		294	1.0%		863		878	1.7%
Operating expenses:
Interest credited		136		136		137		137		140	2.9%		401		414	3.2%
Benefits		-		-		-		-		-	NM		1		1	0.0%
Commissions incurred		19		20		19		21		20	5.3%		57		60	5.3%
Other expenses incurred		86		89		85		83		83	-3.5%		259		250	-3.5%
Amounts capitalized		(6)		(7)		(4)		(6)		(5)	16.7%		(22)		(15)	31.8%
Amortization		8		7		7		6		9	12.5%		20		22	10.0%
Total operating expenses		243		245		244		241		247	1.6%		716		732	2.2%
Income (loss) from operations before taxes		48		57		48		51		47	-2.1%		147		146	-0.7%
Federal income tax expense (benefit)		13		16		5		8		7	-46.2%		38		21	-44.7%
Income (loss) from operations	$	35	$	41	$	43	$	43	$	40	14.3%	$	109	$	125	14.7%
Effective Federal Income Tax Rate		27.9%		28.5%		11.4%		15.1%		15.9%			26.0%		14.1%
Average Equity, Excluding Goodwill and AOCI	$	1,218	$	1,227	$	1,312	$	1,302	$	1,316	8.0%	$	1,209	$	1,310	8.3%
ROE, Excluding Goodwill and AOCI		11.5%		13.3%		13.0%		13.3%		12.1%			12.0%		12.8%
Pre-tax Net Margin		31.3%		34.4%		31.0%		32.8%		30.7%			31.8%		31.5%
Return on Average Account Values		22		25		25		25		22	-		23		24	1
Net Flows by Market
Small Market		183		279		(79)		12		110	-39.9%	$	(47)	$	42	189.4%
Mid - Large Market		503		455		834		730		1,573	212.7%		1,788		3,137	75.4%
Multi-Fund® and Other		(244)		(294)		(292)		(243)		(272)	-11.5%		(738)		(806)	-9.2%
Net Flows – Trailing Twelve Months	$	1,412	$	1,444	$	1,766	$	1,844	$	2,813	99.2%	$	1,412	$	2,813	99.2%
Page 14

Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	191	$	199	$	196	$	205	$	205	7.3%	$	575	$	606	5.4%
Fee income		764		821		805		819		886	16.0%		2,301		2,510	9.1%
Net investment income		655		659		658		650		671	2.4%		1,984		1,979	-0.3%
Operating realized gain (loss)		(3)		(3)		(1)		(2)		(3)	0.0%		(10)		(5)	50.0%
Other revenues		7		8		2		8		7	0.0%		24		16	-33.3%
Total operating revenues		1,614		1,684		1,660		1,680		1,766	9.4%		4,874		5,106	4.8%
Operating expenses:
Interest credited		350		355		354		351		352	0.6%		1,048		1,057	0.9%
Benefits		808		779		849		840		742	-8.2%		2,411		2,431	0.8%
Commissions incurred		176		193		180		166		173	-1.7%		541		519	-4.1%
Other expenses incurred		205		216		201		198		202	-1.5%		615		600	-2.4%
Amounts capitalized		(201)		(228)		(204)		(193)		(199)	1.0%		(619)		(596)	3.7%
Amortization		101		146		108		133		279	176.2%		322		521	61.8%
Total operating expenses		1,439		1,461		1,488		1,495		1,549	7.6%		4,318		4,532	5.0%
Income (loss) from operations before taxes		175		223		172		185		217	24.0%		556		574	3.2%
Federal income tax expense (benefit)		54		71		28		35		41	-24.1%		172		104	-39.5%
Income (loss) from operations	$	121	$	152	$	144	$	150	$	176	45.5%	$	384	$	470	22.4%
Effective Federal Income Tax Rate		30.8%		32.0%		16.2%		18.9%		18.7%			30.9%		18.0%
Average Equity, Excluding Goodwill and AOCI	$	6,798	$	6,804	$	7,826	$	7,954	$	8,047	18.4%	$	6,714	$	7,942	18.3%
ROE, Excluding Goodwill and AOCI		7.1%		8.9%		7.4%		7.5%		8.8%			7.6%		7.9%
Average Account Values	$	47,547	$	48,481	$	49,165	$	49,548	$	50,201	5.6%	$	46,845	$	49,638	6.0%
In-Force Face Amount
UL and other	$	338,753	$	341,044	$	340,862	$	341,663	$	342,455	1.1%	$	338,753	$	342,455	1.1%
Term insurance		372,943		379,108		384,154		388,475		393,839	5.6%		372,943		393,839	5.6%
Total in-force face amount	$	711,696	$	720,152	$	725,016	$	730,138	$	736,294	3.5%	$	711,696	$	736,294	3.5%
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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	500	$	509	$	508	$	846	$	1,011	102.2%	$	1,488	$	2,366	59.0%
Net investment income		41		41		40		63		76	85.4%		127		179	40.9%
Other revenues		23		4		5		28		41	78.3%		31		73	135.5%
Total operating revenues		564		554		553		937		1,128	100.0%		1,646		2,618	59.1%
Operating expenses:
Interest credited		-		1		1		1		1	NM		1		3	200.0%
Benefits		334		341		326		617		744	122.8%		1,009		1,686	67.1%
Commissions incurred		62		69		66		83		89	43.5%		188		238	26.6%
Other expenses incurred		107		120		105		176		218	103.7%		301		499	65.8%
Amounts capitalized		(16)		(26)		(13)		(17)		(25)	-56.3%		(42)		(55)	-31.0%
Amortization		14		18		31		20		22	57.1%		62		74	19.4%
Total operating expenses		501		523		516		880		1,049	109.4%		1,519		2,445	61.0%
Income (loss) from operations before taxes		63		31		37		57		79	25.4%		127		173	36.2%
Federal income tax expense (benefit)		22		11		8		12		16	-27.3%		44		36	-18.2%
Income (loss) from operations	$	41	$	20	$	29	$	45	$	63	53.7%	$	83	$	137	65.1%
Effective Federal Income Tax Rate		35.0%		35.0%		21.0%		21.0%		21.0%			35.0%		21.0%
Average Equity, Excluding Goodwill and AOCI	$	1,054	$	1,078	$	1,102	$	1,610	$	2,105	99.7%	$	1,054	$	1,605	52.3%
ROE, Excluding Goodwill and AOCI		15.6%		7.5%		10.5%		11.2%		11.9%			10.5%		11.4%
Loss Ratios by Product Line
Life		55.8%		66.2%		63.2%		68.0%		70.6%			64.8%		68.0%
Disability		69.5%		67.8%		61.9%		76.4%		75.8%			67.9%		73.5%
Dental		68.0%		67.5%		74.7%		73.4%		72.2%			70.0%		73.4%
Total non-medical		63.7%		67.1%		64.3%		73.1%		73.6%			66.9%		71.4%
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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Other Operations
Operating revenues:
Insurance premiums	$	1	$	3	$	3	$	5	$	4	300.0%	$	7	$	12	71.4%
Net investment income		60		61		64		53		50	-16.7%		182		167	-8.2%
Amortization of deferred gain on
business sold through reinsurance		-		-		-		-		-	NM		22		1	-95.5%
Other revenues		4		4		-		-		2	-50.0%		9		2	-77.8%
Total operating revenues		65		68		67		58		56	-13.8%		220		182	-17.3%
Operating expenses:
Interest credited		15		14		15		14		14	-6.7%		51		43	-15.7%
Benefits		36		26		19		28		38	5.6%		91		85	-6.6%
Commissions and other expenses		11		18		8		7		11	0.0%		29		28	-3.4%
Interest and debt expenses		63		63		68		68		69	9.5%		190		205	7.9%
Strategic digitization expense		10		10		15		16		18	80.0%		33		49	48.5%
Total operating expenses		135		131		125		133		150	11.1%		394		410	4.1%
Income (loss) from operations before taxes		(70)		(63)		(58)		(75)		(94)	-34.3%		(174)		(228)	-31.0%
Federal income tax expense (benefit)		(50)		(25)		(16)		(16)		(23)	54.0%		(103)		(57)	44.7%
Income (loss) from operations	$	(20)	$	(38)	$	(42)	$	(59)	$	(71)	NM	$	(71)	$	(171)	NM
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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	8,794	$	8,779	$	8,641	$	9,538	$	10,162	15.6%	$	9,377	$	8,641	-7.8%
Deferrals		319		397		353		363		387	21.3%		987		1,103	11.8%
Operating amortization		(232)		(284)		(267)		(269)		(424)	-82.8%		(726)		(959)	-32.1%
Deferrals, net of operating amortization		87		113		86		94		(37)	NM		261		144	-44.8%
Amortization associated with benefit ratio unlocking		(7)		(6)		5		1		(5)	28.6%		(24)		1	104.2%
Business acquired		-		-		-		30		-	NM		-		30	NM
Adjustment related to realized (gains) losses		1		(1)		(5)		(7)		-	-100.0%		(13)		(12)	7.7%
Adjustment related to unrealized (gains) losses		(96)		(244)		811		506		158	264.6%		(822)		1,474	279.3%
Balance as of end-of-period	$	8,779	$	8,641	$	9,538	$	10,162	$	10,278	17.1%	$	8,779	$	10,278	17.1%
											NM
DFEL
Balance as of beginning-of-period	$	1,443	$	1,545	$	1,445	$	1,877	$	2,294	59.0%	$	1,874	$	1,445	-22.9%
Deferrals		187		203		203		207		214	14.4%		551		624	13.2%
Operating amortization		(98)		(118)		(107)		(121)		(165)	-68.4%		(274)		(393)	-43.4%
Deferrals, net of operating amortization		89		85		96		86		49	-44.9%		277		231	-16.6%
Amortization associated with benefit ratio unlocking		(1)		(1)		1		-		(1)	0.0%		(3)		-	100.0%
Adjustment related to realized (gains) losses		(3)		(2)		(4)		(4)		(3)	0.0%		(11)		(11)	0.0%
Adjustment related to unrealized (gains) losses		17		(182)		339		335		103	NM		(592)		777	231.3%
Balance as of end-of-period	$	1,545	$	1,445	$	1,877	$	2,294	$	2,442	58.1%	$	1,545	$	2,442	58.1%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	4,702	$	4,677	$	6,052	$	6,216	$	6,190	31.7%	$	4,702	$	6,190	31.7%
Page 18

Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Fixed Annuities
Balance as of beginning-of-period	$	20,021	$	20,014	$	20,305	$	20,315	$	20,722	3.5%	$	19,723	$	20,305	3.0%
Gross deposits		384		645		492		889		890	131.8%		1,324		2,270	71.5%
Full surrenders and deaths		(420)		(396)		(399)		(490)		(555)	-32.1%		(1,167)		(1,445)	-23.8%
Other contract benefits		(148)		(167)		(152)		(157)		(161)	-8.8%		(422)		(469)	-11.1%
Net flows		(184)		82		(59)		242		174	194.6%		(265)		356	234.3%
Contract holder assessments		(7)		(8)		(7)		(8)		(8)	-14.3%		(21)		(22)	-4.8%
Reinvested interest credited		184		217		76		173		228	23.9%		577		477	-17.3%
Balance as of end-of-period, gross		20,014		20,305		20,315		20,722		21,116	5.5%		20,014		21,116	5.5%
Reinsurance ceded		(620)		(768)		(858)		(1,067)		(1,261)	NM		(620)		(1,261)	NM
Balance as of end-of-period, net	$	19,394	$	19,537	$	19,457	$	19,655	$	19,855	2.4%	$	19,394	$	19,855	2.4%
Variable Annuities
Balance as of beginning-of-period	$	111,570	$	114,270	$	117,479	$	116,172	$	116,901	4.8%	$	105,766	$	117,479	11.1%
Gross deposits		1,532		2,142		2,034		2,094		2,190	43.0%		4,600		6,319	37.4%
Full surrenders and deaths		(1,374)		(1,492)		(1,614)		(1,545)		(1,523)	-10.8%		(4,287)		(4,681)	-9.2%
Other contract benefits		(815)		(954)		(967)		(917)		(922)	-13.1%		(2,532)		(2,808)	-10.9%
Net flows		(657)		(304)		(547)		(368)		(255)	61.2%		(2,219)		(1,170)	47.3%
Contract holder assessments		(599)		(615)		(619)		(620)		(629)	-5.0%		(1,767)		(1,868)
Change in market value and reinvestment		3,956		4,128		(141)		1,717		3,413	-13.7%		12,490		4,989	-60.1%
Balance as of end-of-period, gross and net	$	114,270	$	117,479	$	116,172	$	116,901	$	119,430	4.5%	$	114,270	$	119,430	4.5%
Total
Balance as of beginning-of-period	$	131,591	$	134,284	$	137,784	$	136,487	$	137,623	4.6%	$	125,489	$	137,784	9.8%
Gross deposits		1,916		2,787		2,526		2,983		3,080	60.8%		5,924		8,589	45.0%
Full surrenders and deaths		(1,794)		(1,888)		(2,013)		(2,035)		(2,078)	-15.8%		(5,454)		(6,126)	-12.3%
Other contract benefits		(963)		(1,121)		(1,119)		(1,074)		(1,083)	-12.5%		(2,954)		(3,277)	-10.9%
Net flows		(841)		(222)		(606)		(126)		(81)	90.4%		(2,484)		(814)	67.2%
Contract holder assessments		(606)		(623)		(626)		(628)		(637)	-5.1%		(1,788)		(1,890)	-5.7%
Change in market value and reinvestment		4,140		4,345		(65)		1,890		3,641	-12.1%		13,067		5,466	-58.2%
Balance as of end-of-period, gross		134,284		137,784		136,487		137,623		140,546	4.7%		134,284		140,546	4.7%
Reinsurance ceded		(620)		(768)		(858)		(1,067)		(1,261)	NM		(620)		(1,261)	NM
Balance as of end-of-period, net	$	133,664	$	137,016	$	135,629	$	136,556	$	139,285	4.2%	$	133,664	$	139,285	4.2%
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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
General Account
Balance as of beginning-of-period	$	18,413	$	18,626	$	18,724	$	18,856	$	19,046	3.4%	$	17,883	$	18,724	4.7%
Gross deposits		415		494		459		394		704	69.6%		1,681		1,557	-7.4%
Withdrawals		(395)		(545)		(520)		(443)		(442)	-11.9%		(1,356)		(1,405)	-3.6%
Net flows		20		(51)		(61)		(49)		262	NM		325		152	-53.2%
Transfers between fixed and variable accounts		59		14		60		104		65	10.2%		19		230	NM
Contract holder assessments		(2)		(2)		(3)		(3)		(3)	-50.0%		(7)		(8)	-14.3%
Reinvestment interest credited		136		137		136		138		141	3.7%		406		413	1.7%
Balance as of end-of-period	$	18,626	$	18,724	$	18,856	$	19,046	$	19,511	4.8%	$	18,626	$	19,511	4.8%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	44,155	$	46,203	$	48,645	$	48,854	$	50,137	13.5%	$	40,551	$	48,645	20.0%
Gross deposits		1,493		1,932		1,901		1,823		2,624	75.8%		4,457		6,348	42.4%
Withdrawals		(1,071)		(1,441)		(1,377)		(1,275)		(1,475)	-37.7%		(3,779)		(4,127)	-9.2%
Net flows		422		491		524		548		1,149	172.3%		678		2,221	227.6%
Transfers between fixed and variable accounts		(88)		(61)		(119)		(112)		(134)	-52.3%		(119)		(366)	NM
Contract holder assessments		(50)		(52)		(52)		(52)		(53)	-6.0%		(145)		(158)	-9.0%
Change in market value and reinvestment		1,764		2,064		(144)		899		1,895	7.4%		5,238		2,652	-49.4%
Balance as of end-of-period	$	46,203	$	48,645	$	48,854	$	50,137	$	52,994	14.7%	$	46,203	$	52,994	14.7%
Total
Balance as of beginning-of-period	$	62,568	$	64,829	$	67,369	$	67,710	$	69,183	10.6%	$	58,434	$	67,369	15.3%
Gross deposits		1,908		2,426		2,360		2,217		3,328	74.4%		6,138		7,905	28.8%
Withdrawals		(1,466)		(1,986)		(1,897)		(1,718)		(1,917)	-30.8%		(5,135)		(5,532)	-7.7%
Net flows		442		440		463		499		1,411	219.2%		1,003		2,373	136.6%
Transfers between fixed and variable accounts		(29)		(47)		(59)		(8)		(69)	NM		(100)		(136)	-36.0%
Contract holder assessments		(52)		(54)		(55)		(55)		(56)	-7.7%		(152)		(166)	-9.2%
Change in market value and reinvestment		1,900		2,201		(8)		1,037		2,036	7.2%		5,644		3,065	-45.7%
Balance as of end-of-period	$	64,829	$	67,369	$	67,710	$	69,183	$	72,505	11.8%	$	64,829	$	72,505	11.8%
Page 20

Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
General Account
Balance as of beginning-of-period	$	36,454	$	36,576	$	36,791	$	36,855	$	36,955	1.4%	$	36,272	$	36,791	1.4%
Deposits		1,070		1,152		1,040		1,073		1,024	-4.3%		3,229		3,137	-2.8%
Withdrawals and deaths		(310)		(281)		(318)		(312)		(266)	14.2%		(1,030)		(896)	13.0%
Net flows		760		871		722		761		758	-0.3%		2,199		2,241	1.9%
Contract holder assessments		(999)		(1,030)		(1,019)		(1,018)		(1,024)	-2.5%		(2,964)		(3,062)	-3.3%
Reinvested interest credited		361		374		361		357		365	1.1%		1,069		1,084	1.4%
Balance as of end-of-period, gross		36,576		36,791		36,855		36,955		37,054	1.3%		36,576		37,054	1.3%
Reinsurance ceded		(726)		(719)		(700)		(693)		(683)	5.9%		(726)		(683)	5.9%
Balance as of end-of-period, net	$	35,850	$	36,072	$	36,155	$	36,262	$	36,371	1.5%	$	35,850	$	36,371	1.5%
Separate Account
Balance as of beginning-of-period	$	12,296	$	12,916	$	13,851	$	13,987	$	14,420	17.3%	$	11,058	$	13,851	25.3%
Deposits		392		744		494		444		499	27.3%		1,193		1,438	20.5%
Withdrawals and deaths		(88)		(172)		(140)		(121)		(177)	NM		(302)		(439)	-45.4%
Net flows		304		572		354		323		322	5.9%		891		999	12.1%
Contract holder assessments		(163)		(174)		(179)		(179)		(187)	-14.7%		(480)		(546)	-13.8%
Change in market value and reinvestment		479		537		(39)		289		547	14.2%		1,447		798	-44.9%
Balance as of end-of-period, gross		12,916		13,851		13,987		14,420		15,102	16.9%		12,916		15,102	16.9%
Reinsurance ceded		(851)		(875)		(861)		(868)		(886)	-4.1%		(851)		(886)	-4.1%
Balance as of end-of-period, net	$	12,065	$	12,976	$	13,126	$	13,552	$	14,216	17.8%	$	12,065	$	14,216	17.8%
Total
Balance as of beginning-of-period	$	48,750	$	49,492	$	50,642	$	50,842	$	51,375	5.4%	$	47,330	$	50,642	7.0%
Deposits		1,462		1,896		1,534		1,517		1,523	4.2%		4,422		4,575	3.5%
Withdrawals and deaths		(398)		(453)		(458)		(433)		(443)	-11.3%		(1,332)		(1,335)	-0.2%
Net flows		1,064		1,443		1,076		1,084		1,080	1.5%		3,090		3,240	4.9%
Contract holder assessments		(1,162)		(1,204)		(1,198)		(1,197)		(1,211)	-4.2%		(3,444)		(3,608)	-4.8%
Change in market value and reinvestment		840		911		322		646		912	8.6%		2,516		1,882	-25.2%
Balance as of end-of-period, gross		49,492		50,642		50,842		51,375		52,156	5.4%		49,492		52,156	5.4%
Reinsurance ceded		(1,577)		(1,594)		(1,561)		(1,561)		(1,569)	0.5%		(1,577)		(1,569)	0.5%
Balance as of end-of-period, net	$	47,915	$	49,048	$	49,281	$	49,814	$	50,587	5.6%	$	47,915	$	50,587	5.6%
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Lincoln Financial Group
Select Investment Data
Unaudited (millions of dollars)
	As of 9/30/17				As of 12/31/17				As of 9/30/18
	Amount		%		Amount		%		Amount		%
AFS, Equity and Trading Securities, at Fair Value
AFS securities:
Corporate bonds	$	82,319		86.0%	$	83,190		85.9%	$	81,065		85.7%
U.S. government bonds		574		0.6%		567		0.6%		409		0.4%
Foreign government bonds		455		0.5%		451		0.5%		459		0.5%
Mortgage-backed securities		4,037		4.2%		4,065		4.2%		4,035		4.3%
Asset-backed collateralized debt obligations		694		0.7%		808		0.8%		1,362		1.4%
State and municipal bonds		5,049		5.3%		5,119		5.3%		5,218		5.5%
Hybrid and redeemable preferred securities		639		0.7%		640		0.7%		613		0.6%
AFS Equity securities		302		0.3%		246		0.3%		-		0.0%
Total AFS securities		94,069		98.3%		95,086		98.3%		93,161		98.4%
Trading securities		1,665		1.7%		1,620		1.7%		1,440		1.5%
Equity securities		-		0.0%		-		0.0%		112		0.1%
Total AFS, Equity and trading securities	$	95,734		100.0%	$	96,706		100.0%	$	94,713		100.0%
AFS and Trading Securities, at Amortized Cost
Fixed maturity securities	$	88,050		99.7%	$	88,418		99.7%	$	92,108		99.9%
Equity securities		296		0.3%		247		0.3%		109		0.1%
Total AFS and trading securities	$	88,346		100.0%	$	88,665		100.0%	$	92,217		100.0%
Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				95.7%				95.6%				96.1%
Below investment grade				4.3%				4.4%				3.9%
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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
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	41	$	41	$	47	$	46	$	43	4.9%	$	124	$	137	10.5%
Total excluded realized gain (loss)		(97)		(106)		(35)		(53)		(98)	-1.0%		(229)		(188)	17.9%
Total realized gain (loss), pre-tax	$	(56)	$	(65)	$	12	$	(7)	$	(55)	1.8%	$	(105)	$	(51)	51.4%
Excluded Realized Gain (Loss) Net of
Benefit Ratio Unlocking, After-Tax
Total excluded realized gain (loss)	$	(63)	$	(69)	$	(28)	$	(41)	$	(77)	-22.2%	$	(149)	$	(149)	0.0%
Benefit ratio unlocking		30		28		(10)		7		33	10.0%		101		32	-68.3%
Net gain (loss), after-tax	$	(33)	$	(41)	$	(38)	$	(34)	$	(44)	-33.3%	$	(48)	$	(117)	NM
Realized Gain (Loss) Net of Benefit Ratio
Unlocking, After-Tax
Realized gain (loss) related to investments	$	(13)	$	(23)	$	(15)	$	9	$	(15)	-15.4%	$	(27)	$	(21)	22.2%
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged		(5)		(7)		(25)		(42)		(19)	NM		22		(85)	NM
GLB non-performance risk component		(16)		(9)		5		2		(5)	68.8%		(34)		2	105.9%
Total variable annuity net derivative results		(21)		(16)		(20)		(40)		(24)	-14.3%		(12)		(83)	NM
Indexed annuity forward-starting option		1		(2)		(3)		(3)		(5)	NM		(9)		(13)	-44.4%
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(33)	$	(41)	$	(38)	$	(34)	$	(44)	-33.3%	$	(48)	$	(117)	NM
Components of Realized Gain (Loss)
Related to Investments, After-Tax
OTTI	$	(5)	$	(1)	$	(2)	$	(1)	$	(2)	69.6%	$	(10)	$	(4)	60.0%
Other realized gain (loss) related to certain investments		(8)		(14)		(15)		(11)		(7)	4.9%		(22)		(34)	-54.5%
Gain (loss) on the mark-to-market on equity investments		-		-		-		2		-	NM		-		2	NM
Gain (loss) on the mark-to-market on certain instruments		-		(8)		2		19		(6)	NM		5		15	200.0%
Total realized gain (loss) related
to investments, after-tax	$	(13)	$	(23)	$	(15)	$	9	$	(15)	-15.4%	$	(27)	$	(21)	22.2%
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Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/17		12/31/17		3/31/18		6/30/18		9/30/18		Change	9/30/17		9/30/18		Change
Revenues
Total revenues	$	3,511	$	3,669	$	3,609	$	4,020	$	4,264	21.4%	$	10,588	$	11,893	12.3%
Less:
Excluded realized gain (loss)		(97)		(106)		(35)		(53)		(98)	-1.0%		(229)		(188)	17.9%
Amortization of DFEL on benefit ratio unlocking		1		-		(1)		-		-	-100.0%		2		-	-100.0%
Amortization of deferred gains arising from reserve
changes on business sold through reinsurance		-		-		-		-		-	NM		1		-	-100.0%
Adjusted operating revenues	$	3,607	$	3,775	$	3,645	$	4,073	$	4,362	20.9%	$	10,814	$	12,081	11.7%
Net Income
Net income (loss)	$	418	$	816	$	367	$	385	$	490	17.2%	$	1,264	$	1,242	-1.7%
Less:
Excluded realized gain (loss)		(63)		(69)		(28)		(41)		(77)	-22.2%		(149)		(149)	0.0%
Benefit ratio unlocking		30		28		(10)		7		33	10.0%		101		32	-68.3%
Net impact from the Tax Cuts and Jobs Act		-		1,322		(13)		-		32	NM		-		19	NM
Impairment of intangibles		-		(905)		-		-		-	NM		-		-	NM
Acquisition and integration costs related to
mergers and acquisitions, after-tax		-		-		(4)		(35)		(8)	NM		-		(47)	NM
Income (loss) from reserve changes (net of related
amortization) on business sold through reinsurance		-		-		-		-		-	NM		1		-	-100.0%
Gain (loss) on early extinguishment of debt		(3)		-		(19)		-		-	100.0%		(3)		(18)	NM
Adjusted income (loss) from operations	$	454	$	440	$	441	$	454	$	510	12.3%	$	1,314	$	1,405	6.9%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.87	$	3.67	$	1.64	$	1.70	$	2.24	19.8%	$	5.58	$	5.59	0.2%
Less:
Excluded realized gain (loss)		(0.28)		(0.31)		(0.13)		(0.19)		(0.36)	-28.6%		(0.65)		(0.68)	-4.6%
Benefit ratio unlocking		0.13		0.13		(0.04)		0.03		0.15	15.4%		0.44		0.14	-68.2%
Net impact from the Tax Cuts and Jobs Act		-		5.96		(0.06)		-		0.15	NM		-		0.09	NM
Impairment of intangibles		-		(4.08)		-		-		-	NM		-		-	NM
Acquisition and integration costs related to mergers
and acquisitions, after-tax		-		-		(0.02)		(0.16)		(0.04)	NM		-		(0.21)	NM
Gain (loss) on early extinguishment of debt		(0.01)		-		(0.08)		-		-	100.0%		(0.01)		(0.08)	NM
Adjustment attributable to using different average
diluted shares for adjusted income from operations
as compared to net income		-		(0.01)		-		-		-	NM		-		-	NM
Adjusted income (loss) from operations	$	2.03	$	1.98	$	1.97	$	2.02	$	2.34	15.3%	$	5.80	$	6.33	9.1%
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