8-K

UNITED STATES
‎SECURITIES AND EXCHANGE COMMISSION
‎Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

May 5, 2021

Date of Report (Date of earliest event reported)

                  Lincoln National Corporation             

(Exact name of registrant as specified in its charter)

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

150 N. Radnor Chester Road, Radnor, PA 19087

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (484) 583-1400

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

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

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

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

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

__________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	LNC	New York Stock Exchange

__________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   [ ]

‎

Item 2.02. Results of Operations and Financial Condition.

On May 5, 2021, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter and full year ended December 31, 2020, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The Company’s statistical supplement for the quarter ended December 31, 2020, is attached as Exhibit 99.2 and is incorporated herein by reference.

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

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.

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

Exhibit Number	Description
99.1	Press release dated May 5, 2021, announcing Lincoln National Corporation’s financial results for the quarter ended March 31, 2021.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended March 31, 2021.

‎

SIGNATURES

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

LINCOLN NATIONAL CORPORATION
By	/s/ Christine A. Janofsky
Name:	Christine A. Janofsky
Title:	Senior Vice President and
	Chief Accounting Officer

Date: May 5, 2021

EX-99.1

FOR IMMEDIATE RELEASE

Lincoln Financial Group reports first Quarter 2021 Results

_______________________________________

v Net income EPS of $1.16 and adjusted operating EPS of $1.82

v Adjusted operating EPS included $(1.15) from elevated pandemic-related claims experience and

$0.43 of above targeted alternative investment income

v BVPS, including AOCI, of $102.50, up 19%; BVPS, excluding AOCI, of $72.36, up 3%

v $186 million of capital returned to shareholders, including $105 million in share repurchases 

Radnor, PA, May 5, 2021 –  Lincoln Financial Group (NYSE: LNC) today reported net income for the first quarter of 2021 of $225 million, or $1.16 per diluted share available to common stockholders, compared to net income in the first quarter of 2020 of $52 million, or $0.15 per diluted share available to common stockholders. First quarter adjusted income from operations was $350 million, or $1.82 per diluted share available to common stockholders, compared to adjusted income from operations of $465 million, or $2.24 per diluted share available to common stockholders, in the first quarter of 2020.

“First quarter results were strong as strategic actions taken to drive top and bottom line growth led to increased operating revenues and expense efficiency in all our businesses,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “While reported results were again affected by the pandemic, mortality impacts should abate, capital markets have improved, sales pipelines are strong, and quarterly capital return to shareholders is being restored to pre-pandemic levels, all of which support continued momentum.”

	As of or For the
	Three Months Ended
	March 31,
(in millions, except per share data)	2021		2020
Net Income (Loss)	$	225	$	52
Net Income (Loss) Available to Common Stockholders		225		29
Net Income (Loss) per Diluted Share Available to Common Stockholders		1.16		0.15
Revenues		4,534		4,425
Adjusted Income (Loss) from Operations		350		465
Adjusted Income (Loss) from Operations per Diluted Share Available to
Common Stockholders		1.82		2.24
Average Diluted Shares		193.1		197.3
Return on Equity (ROE), Including Accumulated Other Comprehensive
Income (AOCI) (Net Income)		4.3%		1.1%
Adjusted Operating ROE, Excluding AOCI (Adjusted Income from Operations)		10.2%		13.5%
Book Value per Share, Including AOCI	$	102.50	$	85.79
Book Value per Share, Excluding AOCI		72.36		70.24

Operating Highlights – First Quarter 2021 vs. First Quarter 2020

· Operating revenues increased in all four business segments

· Expense ratios improved in Annuities, Life Insurance and Retirement Plan Services and remained steady in Group Protection

· Annuities average account values of $160 billion, up 16%

· Retirement Plan Services generated positive net flows of $347 million in the quarter

· Life Insurance average in-force face amount of $901 billion, up 8%

· Group Protection insurance premiums of $1.1 billion, up 2%

There were no notable items within adjusted income from operations for the current quarter or the prior-year quarter.

First Quarter 2021 – Segment Results

Annuities

Annuities reported income from operations of $290 million, up 11% over the prior-year quarter. The increase was driven by higher account values from strong equity market performance and favorable returns within the company’s alternative investment portfolio, partially offset by a tax adjustment in the current quarter. 

Total annuity deposits of $2.8 billion were down 24% from the prior-year quarter. Total variable annuity sales were up 3% versus the prior-year quarter as strong growth in variable annuity sales without guaranteed living benefits more than offset declines in variable annuity sales with living benefits. Fixed annuity sales were $86 million, consistent with recent quarters, but down from $1.1 billion in the prior-year period due to product actions taken in response to lower interest rates.

Net outflows were $776 million in the quarter. Average account values for the quarter of $160 billion were up 16% over the prior-year quarter.

Retirement Plan Services

Retirement Plan Services reported income from operations of $57 million, up 43% from the prior-year quarter with the increase primarily driven by higher account values from strong equity market performance, expense management and favorable returns within the company’s alternative investment portfolio.

Total deposits for the quarter of $2.6 billion were down 5% from the prior-year quarter as growth in recurring deposits was more than offset by a decline in first-year sales.    

Net flows totaled $347 million for the quarter. Average account values for the quarter of $90 billion were up 18% over the prior-year quarter.  

Life Insurance

Life Insurance reported income from operations of $107 million compared to $171 million in the prior-year quarter as pandemic-related mortality was partially offset by favorable returns within the company’s alternative investment portfolio and expense management.

Total Life Insurance sales were $114 million compared to $169 million in the prior-year quarter, however sales were in line with the prior quarter.      

Average Life Insurance in-force of $901 billion grew 8% over the prior-year quarter, and average account values of $58 billion increased 10% over the same period.

Group Protection

Group Protection reported a loss from operations of $26 million in the quarter compared to income from operations of $40 million in the prior-year quarter. This change was driven by mortality and morbidity experience associated with the pandemic, which was partially offset by premium growth.

The total loss ratio was 87% in the current quarter compared to 79% in the prior-year quarter, with the increase driven by the pandemic.  

Group Protection sales were $74 million in the quarter compared to $102 million in the prior-year quarter. Employee-paid sales represented 67% of total sales. Insurance premiums of $1.1 billion in the quarter were up 2% compared to the prior-year quarter. 

Other Operations

Other Operations reported a loss from operations of $78 million versus a loss of $47 million in the prior-year quarter. In the current quarter there was $11 million of elevated deferred compensation expense related to the increase in the company’s share price during the quarter.  In the prior-year quarter deferred compensation expenses were $21 million below expectations related to the decrease in the company’s share price during the quarter.        

Realized Gains and Losses / Impacts to Net Income

Realized gains/losses and impacts to net income (after-tax) in the quarter were driven by:

· A $144 million non-economic loss from GLB non-performance risk.

· A $44 million realized gain related to financial assets.

· A $42 million dollar loss from hedge performance.

· A $17 million dollar gain from indexed annuity forward-starting options.

Unrealized Gains and Losses

The company reported a net unrealized gain of $11.4 billion, pre-tax, on its available-for-sale securities at March 31, 2021. This compares to a net unrealized gain of $6.4 billion, pre-tax, at March 31, 2020, with the year-over-year increase primarily driven by tighter credit spreads.

Share Count

The quarter’s average diluted share count of 193.1 million was down 2% from the first quarter of 2020, the result of repurchasing 3.0 million shares of stock at a cost of $155 million since March 31, 2020.

Book Value

As of March 31, 2021, book value per share, including AOCI, increased 19% from the prior-year period to $102.50. Book value per share, excluding AOCI, increased 3% from the prior-year period to $72.36.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income from operations, adjusted operating ROE and BVPS, excluding AOCI, to net income, ROE and BVPS, including AOCI, calculated in accordance with GAAP.

This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.

For other financial information, please refer to the company’s first quarter 2021 statistical supplement available on its website, http://www.lfg.com/investor.  

Lincoln Financial Group will discuss the company’s first quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, May 6, 2021. The conference call will be broadcast live through the company website at www.lfg.com/webcast. Please log on at least fifteen minutes prior to the call to register and download any necessary streaming media software. To participate via phone: (866) 394-4575 (U.S./Canada) or (678) 509-7536 (International). Ask for the Lincoln National Conference Call.

A replay of the call will be available by 1:00 p.m. Eastern Time on May 6, 2021 at www.lfg.com/webcast. Audio replay will be available from 1:00 p.m. Eastern Time on May 6, 2021 through 12:00 p.m. Eastern Time on May 13, 2021. To access the re-broadcast, dial: (855) 859-2056 (Domestic) or (404) 537-3406 (International). Enter conference code: 6288902.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $311 billion in end-of-period account values as of March 31, 2021. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ Best Large Employers and Best Employers for Women, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com.  Follow us on Facebook,  Twitter,  LinkedIn, and Instagram.  Sign up for email alerts at http://newsroom.lfg.com.

Explanatory Notes on Use of Non-GAAP Measures

Management believes that adjusted income from operations (adjusted operating income), adjusted operating return on equity, adjusted operating revenues, and adjusted operating EPS better explain the results of the company’s ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company’s current business because the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management also believes that using book value excluding accumulated other comprehensive income (“AOCI”) enables investors to analyze the amount of our net worth that is primarily attributable to our business operations. 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.

For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Reports for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: www.lfg.com/investor.  

Definitions of Non-GAAP Measures Used in this Press Release

Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (including and excluding average goodwill within average equity), excluding AOCI, using annualized adjusted income (loss) from operations are financial measures we use to evaluate and assess our results. Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (“ROE”), as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), revenues and ROE, the most directly comparable GAAP measures.

Adjusted Income (Loss) from Operations

Adjusted income (loss) from operations is GAAP net income (loss) excluding the after-tax effects of the following items, as applicable:

· Realized gains and losses associated with the following (“excluded realized gain (loss)”):

o Sales or disposals and impairments of financial assets;

o Changes in the fair value of equity securities;

o 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”);

o Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders within our variable annuities;

o 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;

o Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and

o Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell 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 options”);

· 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

Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

· Excluded realized gain (loss);

· Revenue adjustments from the initial adoption of new accounting standards;

· Amortization of deferred front-end loads (“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.

Adjusted Operating Return on Equity

Adjusted operating return on equity measures how efficiently we generate profits from the resources provided by our net assets.

· It is calculated by dividing annualized adjusted income (loss) from operations by average equity, excluding accumulated other comprehensive income (loss) ("AOCI").

· Management evaluates return on equity by both including and excluding average goodwill within average equity.

Definition of Notable Items

Adjusted income (loss) from operations, excluding notable items, is a non-GAAP measure that excludes items which, in management’s view, do not reflect the company’s normal, ongoing operations.

· We believe highlighting notable items included in adjusted income (loss) from operations enables investors to better understand the fundamental trends in its results of operations and financial condition.

Book Value Per Share, Excluding AOCI

Book value per share, excluding AOCI is calculated based upon a non-GAAP financial measure.

· It is calculated by dividing (a) stockholders' equity, excluding AOCI by (b) common shares outstanding.

· We provide book value per share excluding AOCI to enable investors to analyze the amount of our net worth that is primarily attributable to our business operations.

· Management believes book value per share, excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.

· Book value per share is the most directly comparable GAAP measure.

Special Note

Sales

Sales as reported consist of the following:

· Annuities and Retirement Plan Services – deposits from new and existing customers;

· Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

· MoneyGuard®linked-benefit products – MoneyGuard® (UL), 15% of total expected premium deposits, and MoneyGuard Market AdvantageSM(VUL), 150% 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;

· Term – 100% of annualized first-year premiums; and

· Group Protection – annualized first-year premiums from new policies.

Lincoln National Corporation

Reconciliation of Net Income to Adjusted Income from Operations

	For the
(in millions, except per share data)	Three Months Ended
	March 31,
	2021		2020
Total Revenues	$	4,534	$	4,425
Less:
Excluded realized gain (loss)		(229)		(75)
Amortization of DFEL on benefit ratio unlocking		1		(9)
Total Adjusted Operating Revenues	$	4,762	$	4,509
Net Income (Loss) Available to Common
Stockholders – Diluted	$	225	$	29
Less:
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		(23)
Net Income (Loss)		225		52
Less:
Excluded realized gain (loss), after-tax		(180)		(60)
Benefit ratio unlocking, after-tax		55		(349)
Acquisition and integration costs related to mergers
and acquisitions, after-tax		-		(4)
Total adjustments		(125)		(413)
Adjusted Income (Loss) from Operations	$	350	$	465
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.16	$	0.15
Adjusted income (loss) from operations		1.82		2.24
Average Stockholders' Equity
Average equity, including average AOCI	$	21,146	$	18,132
Average AOCI		7,346		4,338
Average equity, excluding AOCI		13,800		13,794
Average goodwill		1,778		1,778
Average equity, excluding AOCI and goodwill	$	12,022	$	12,016
Return on Equity, Including AOCI
Net income (loss) with average equity including goodwill		4.3%		1.1%
Adjusted Operating Return on Equity, Excluding AOCI
Adjusted income (loss) from operations with average equity
including goodwill		10.2%		13.5%
Adjusted income (loss) from operations with average equity
excluding goodwill		11.6%		15.5%
(1) If the effect of equity classification would result in a more dilutive EPS, the numerator used in the calculation of our diluted EPS is
adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans.

Lincoln National Corporation

Reconciliation of Book Value per Share

	As of March 31,
	2021		2020
Book value per share, including AOCI	$	102.50	$	85.79
Per share impact of AOCI		30.14		15.55
Book value per share, excluding AOCI		72.36		70.24

Lincoln National Corporation

Digest of Earnings

	For the
(in millions, except per share data)	Three Months Ended
	March 31,
	2021		2020
Revenues	$	4,534	$	4,425
Net Income (Loss)	$	225	$	52
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		(23)
Net Income (Loss) Available to Common
Stockholders – Diluted	$	225	$	29
Earnings (Loss) per Common Share – Basic	$	1.17	$	0.27
Earnings (Loss) per Common Share – Diluted		1.16		0.15
Average Shares – Basic	191,780,135		195,076,797
Average Shares – Diluted	193,066,325		197,264,842
(1) If the effect of equity classification would result in a more dilutive EPS, the numerator used in the calculation of our diluted EPS is
adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans.

Forward Looking Statements — Cautionary Language

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

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

· The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19, and uncertainty surrounding the length and severity of future impacts on the global economy and on our business, results of operations and financial condition;

· Further deterioration in general economic and business conditions that may affect account values, investment results, guaranteed benefit liabilities, premium levels and claims experience;

· Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;

· The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations;

· Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries' products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees;

· The impact of U.S. federal tax reform legislation on our business, earnings and capital;

· The impact of Regulation Best Interest or other regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor, or other federal or state regulators or self-regulatory organizations relating to the standard of care owed by investment advisers and/or broker dealers that could affect our distribution model;

· Actions taken by reinsurers to raise rates on in-force business;

· Further declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses, estimated gross profits and demand for our products;

· Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities;

· The impact of the implementation of the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to the regulation of derivatives transactions;

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

· A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries' products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; an acceleration of the net amortization of deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI") and deferred front-end loads ("DFEL"); and an increase in liabilities related to guaranteed benefit features of our subsidiaries' variable annuity products;

· Ineffectiveness of our risk management policies and procedures, including various hedging strategies used to offset the effect of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates;

· A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries' products, in establishing related insurance reserves and in the net amortization of DAC, VOBA, DSI and DFEL, which may reduce future earnings;

· Changes in accounting principles that may affect our business, results of operations and financial condition;

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

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

· Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk requiring that we realize losses on financial assets;

· Interruption in telecommunication, information technology or other operational systems, or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches of our data security systems;

· The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items; 

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

· Future pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely affect our businesses and the cost and availability of reinsurance;

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

· The unknown effect on our subsidiaries' businesses resulting from evolving market preferences and the changing demographics of our client base; and

· The unanticipated loss of key management, financial planners or wholesalers.

The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

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

The reporting of Risk Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

EX-99.2

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), 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	Joshua Shanker					646-855-5716
Barclays	Tracy Benguigui					212-526-1561
Citi Research	Suneet Kamath					212-816-3457
Credit Suisse	Andrew Kligerman					212-325-5069
Dowling & Partners	Humphrey Lee					860-676-7324
Evercore	Thomas Gallagher					212-446-9439
Goldman Sachs	Yaron Kinar					212-902-9592
J.P. Morgan Securities	Jimmy Bhullar					212-622-6397
Keefe, Bruyette & Woods, Inc.	Ryan Krueger					860-722-5930
Morgan Stanley	Nigel Dally					212-761-4132
Piper Sandler & Co.	John Barnidge					312-281-3412
RBC Capital Markets	Mark Dwelle					804-782-4008
UBS	Brian Meredith					212-713-2492
Wells Fargo	Elyse Greenspan					212-214-8031
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 May 5, 2021
						Standard
		A.M Best	Fitch	Moody's		& Poor's
Senior Debt Ratings		a-	BBB+	Baa1		A-
Financial Strength Ratings
The 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-
Lincoln Life Assurance Company of Boston		A+				AA-
Investor Inquiries May Be Directed To:
Albert Copersino, Vice President, Investor Relations
Email:  Albert.Copersino@lfg.com
Phone:  203-257-4493
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 net loss or adjusted loss from operations is experienced, shares used in the diluted EPS

 calculation represent basic shares, as the use of diluted shares would result in a lower loss per share.

• 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:

• Annuities and Retirement Plan Services – deposits from new and existing customers;

• Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

•  MoneyGuard®linked-benefit products – MoneyGuard® (UL), 15% of total expected premium deposits, and MoneyGuard Market AdvantageSM (VUL), 150% 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;

• Term – 100% of annualized first-year premiums; 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.

Page 2a

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.

Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

• Realized gains and losses associated with the following (“excluded realized gain (loss)”):

▪ Sales or disposals and impairments of financial assets;

▪ Changes in the fair value of equity 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 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 GLB riders reflected within variable annuity net derivative results; and

▪ Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell 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 options”);

• 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, as applicable:

• 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.

Page 2b

Lincoln Financial Group

Notes

Management believes that the non-GAAP performance measures previously discussed 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.

Statistical Supplement is Dated

The financial data in this document is dated May 5, 2021, 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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Revenues
Insurance premiums	$	1,373	$	1,342	$	1,293	$	1,364	$	1,406	2.4%
Fee income		1,539		1,458		1,815		1,559		1,592	3.4%
Net investment income		1,375		1,172		1,458		1,505		1,510	9.8%
Realized gain (loss)		(24)		(647)		629		(470)		(181)	NM
Amortization of deferred gains on business
sold through reinsurance		11		11		11		9		9	-18.2%
Other revenues		151		181		155		168		198	31.1%
Total revenues		4,425		3,517		5,361		4,135		4,534	2.5%
Expenses
Interest credited		725		732		732		734		737	1.7%
Benefits		2,501		1,725		2,484		1,966		2,226	-11.0%
Commissions and other expenses		1,085		1,123		1,599		1,258		1,231	13.5%
Interest and debt expense		68		84		66		65		65	-4.4%
Strategic digitization expense		12		14		20		23		13	8.3%
Total expenses		4,391		3,678		4,901		4,046		4,272	-2.7%
Income (loss) before taxes		34		(161)		460		89		262	NM
Federal income tax expense (benefit)		(18)		(67)		62		(54)		37	NM
Net income (loss)		52		(94)		398		143		225	NM
Adjustment for LNC stock units in our
deferred compensation plans		(23)		-		(5)		-		-	100.0%
Net income (loss) available to common
stockholders – diluted	$	29	$	(94)	$	393	$	143	$	225	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	0.15	$	(0.49)	$	2.01	$	0.74	$	1.16	NM
ROE, including AOCI
Net income (loss)		1.1%		-2.0%		7.5%		2.6%		4.3%
Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	85,797	$	95,390	$	98,717	$	102,789	$	96,570	12.6%
U.S. government bonds		482		504		496		484		444	-7.9%
State and municipal bonds		5,906		6,393		6,774		6,921		6,625	12.2%
Foreign government bonds		389		436		436		470		485	24.7%
Residential mortgage-backed securities		3,271		3,272		3,203		3,076		3,077	-5.9%
Commercial mortgage-backed securities		1,119		1,226		1,430		1,505		1,516	35.5%
Asset-backed securities		5,086		5,716		6,590		7,184		7,996	57.2%
Hybrid and redeemable preferred securities		556		582		606		615		600	7.9%
Total fixed maturity AFS securities, net of allowance for credit losses		102,606		113,519		118,252		123,044		117,313	14.3%
Trading securities		4,019		4,651		4,633		4,501		4,365	8.6%
Equity securities		83		87		122		129		123	48.2%
Mortgage loans on real estate, net of allowance for credit losses		16,791		16,578		16,541		16,763		17,255	2.8%
Policy loans		2,571		2,551		2,527		2,426		2,502	-2.7%
Derivative investments		4,417		2,957		3,236		3,109		3,453	-21.8%
Other investments		4,765		4,574		4,204		3,984		3,548	-25.5%
Total investments		135,252		144,917		149,515		153,956		148,559	9.8%
Cash and invested cash		6,202		4,201		2,595		1,708		1,350	-78.2%
DAC and VOBA		9,212		7,012		6,307		5,812		7,665	-16.8%
Premiums and fees receivable		562		490		498		486		653	16.2%
Accrued investment income		1,185		1,168		1,320		1,257		1,301	9.8%
Reinsurance recoverables, net of allowance for credit losses		16,923		16,866		16,610		16,496		16,289	-3.7%
Reinsurance related embedded derivatives		137		-		-		-		-	-100.0%
Funds withheld reinsurance assets		535		535		539		530		528	-1.3%
Goodwill		1,778		1,778		1,778		1,778		1,778	0.0%
Other assets		16,246		15,905		15,667		15,956		17,298	6.5%
Separate account assets		130,617		146,787		152,975		167,965		171,339	31.2%
Total assets	$	318,649	$	339,659	$	347,804	$	365,944	$	366,760	15.1%
		`
Page 4a

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	37,100	$	38,604	$	40,089	$	40,814	$	39,591	6.7%
Other contract holder funds		99,508		100,537		102,568		105,405		107,002	7.5%
Short-term debt		-		-		-		-		300	NM
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		866		866		866		866		866	0.0%
Financial		5,882		5,870		5,848		5,816		5,428	-7.7%
Reinsurance related embedded derivatives		-		245		334		392		244	NM
Funds withheld reinsurance liabilities		1,843		1,867		1,910		1,942		1,976	7.2%
Payables for collateral on investments		8,434		7,031		6,435		6,222		7,597	-9.9%
Other liabilities		17,824		17,121		15,230		13,823		12,824	-28.1%
Separate account liabilities		130,617		146,787		152,975		167,965		171,339	31.2%
Total liabilities		302,074		318,928		326,255		343,245		347,167	14.9%
Stockholders’ Equity
Common stock		5,071		5,081		5,093		5,082		5,057	-0.3%
Retained earnings		8,500		8,327		8,647		8,686		8,775	3.2%
AOCI:
Unrealized investment gains (losses)		3,348		7,668		8,153		9,209		6,040	80.4%
Foreign currency translation adjustment		(27)		(28)		(21)		(12)		(10)	63.0%
Funded status of employee benefit plans		(317)		(317)		(323)		(266)		(269)	15.1%
Total AOCI		3,004		7,323		7,809		8,931		5,761	91.8%
Total stockholders’ equity		16,575		20,731		21,549		22,699		19,593	18.2%
Total liabilities and stockholders’ equity	$	318,649	$	339,659	$	347,804	$	365,944	$	366,760	15.1%
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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Income (Loss)
Net income (loss)	$	52	$	(94)	$	398	$	143	$	225	NM
Pre-tax adjusted income (loss) from operations		558		195		(212)		393		421	-24.6%
After-tax adjusted income (loss) from operations (1)		465		187		(133)		346		350	-24.7%
Adjusted operating tax rate		16.5%		4.0%		37.2%		12.0%		16.8%
Average Stockholders’ Equity
Average equity, including AOCI	$	18,132	$	18,653	$	21,140	$	22,124	$	21,146	16.6%
Average AOCI		4,338		5,164		7,566		8,370		7,346	69.3%
Average equity, excluding AOCI	$	13,794	$	13,489	$	13,574	$	13,754	$	13,800	0.0%
ROE, Excluding AOCI
Net income (loss)		1.5%		-2.8%		11.7%		4.2%		6.5%
Adjusted income (loss) from operations		13.5%		5.5%		-3.9%		10.1%		10.2%
Per Share
Net income (loss) (diluted)	$	0.15	$	(0.49)	$	2.01	$	0.74	$	1.16	NM
Adjusted income (loss) from operations (diluted)		2.24		0.97		(0.72)		1.78		1.82	-18.8%
Dividends declared during the period		0.40		0.40		0.40		0.42		0.42	5.0%
Book value, including AOCI	$	85.79	$	107.28	$	111.51	$	118.02	$	102.50	19.5%
Per share impact of AOCI		15.55		37.90		40.41		46.43		30.14	93.8%
Book value, excluding AOCI	$	70.24	$	69.38	$	71.10	$	71.59	$	72.36	3.0%
Shares
Repurchased during the period		3.8		-		-		1.1		1.9	-50.0%
End-of-period – basic		193.2		193.2		193.3		192.3		191.1	-1.1%
End-of-period – diluted		195.0		194.0		195.3		193.7		192.5	-1.3%
Average for the period – diluted		197.3		193.8		195.4		193.9		193.1	-2.1%
(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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Cash Returned to Common Stockholders
Shares repurchased	$	225	$	-	$	-	$	50	$	105	-53.3%
Common dividends		79		77		77		77		81	2.5%
Total cash returned to common stockholders	$	304	$	77	$	77	$	127	$	186	-38.8%
Leverage Ratio
Short-term debt	$	-	$	-	$	-	$	-	$	300	NM
Long-term debt		6,748		6,736		6,714		6,682		6,294	-6.7%
Total debt (1)		6,748		6,736		6,714		6,682		6,594	-2.3%
Less:
Operating debt (2)		866		866		866		866		866	0.0%
25% of capital securities		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		459		451		428		395		306	-33.3%
Total numerator	$	5,121	$	5,117	$	5,118	$	5,119	$	5,120	0.0%
Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,227	$	13,063	$	13,396	$	13,490	$	13,553	2.5%
Add:  25% of capital securities		302		302		302		302		302	0.0%
Total numerator		5,121		5,117		5,118		5,119		5,120	0.0%
Total denominator	$	18,650	$	18,482	$	18,816	$	18,911	$	18,975	1.7%
Leverage ratio		27.5%		27.7%		27.2%		27.1%		27.0%
Holding Company Available Liquidity	$	760	$	774	$	756	$	754	$	758	-0.3%
(1) Excludes obligations under finance leases and certain financing arrangements of $450 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.
Page 6

Lincoln Financial Group
Segment and Sources of Earnings
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	302	$	272	$	220	$	338	$	350	15.9%
Retirement Plan Services		45		33		58		57		70	55.6%
Life Insurance		209		(52)		(400)		177		130	-37.8%
Group Protection		50		49		8		(54)		(33)	NM
Other Operations		(48)		(107)		(98)		(125)		(96)	-100.0%
Adjusted income (loss) from operations, before
income taxes	$	558	$	195	$	(212)	$	393	$	421	-24.6%
Income (Loss) from Operations, After-Tax
Annuities	$	261	$	237	$	196	$	289	$	290	11.1%
Retirement Plan Services		40		30		50		49		57	42.5%
Life Insurance		171		(37)		(311)		144		107	-37.4%
Group Protection		40		39		6		(42)		(26)	NM
Other Operations		(47)		(82)		(74)		(94)		(78)	-66.0%
Adjusted income (loss) from operations	$	465	$	187	$	(133)	$	346	$	350	-24.7%
	For the Three Months Ended											For the Trailing Twelve Months
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change	3/31/20		3/31/21		Change
Sources of Earnings, Pre-Tax
Investment spread	$	151	$	39	$	(119)	$	147	$	130	-13.9%	$	362	$	197	-45.6%
Mortality/morbidity		165		15		(208)		47		39	-76.4%		432		(107)	NM
Fees on AUM		290		245		321		308		332	14.5%		1,094		1,206	10.2%
VA riders		-		3		(108)		16		16	NM		17		(73)	NM
Total sources of earnings, before income taxes		606		302		(114)		518		517	-14.7%		1,905		1,223	-35.8%
Other Operations		(48)		(107)		(98)		(125)		(96)	-100.0%		(321)		(425)	-32.4%
Adjusted income (loss) from operations, before
income taxes	$	558	$	195	$	(212)	$	393	$	421	-24.6%	$	1,584	$	798	-49.6%
Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		25.0%		12.7%		103.7%		28.5%		25.2%			19.0%		16.1%
Mortality/morbidity		27.3%		4.8%		181.6%		9.1%		7.5%			22.7%		-8.8%
Fees on AUM		47.8%		81.3%		-279.5%		59.4%		64.1%			57.4%		98.6%
VA riders		-0.1%		1.2%		94.2%		3.0%		3.2%			0.9%		-5.9%
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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Annuities
Operating revenues	$	1,129	$	1,037	$	1,126	$	1,163	$	1,204	6.6%
Deposits		3,697		2,515		2,539		2,510		2,814	-23.9%
Net flows		528		58		(283)		(644)		(776)	NM
Average account values		137,922		134,197		144,368		150,875		160,099	16.1%
Retirement Plan Services
Operating revenues	$	297	$	282	$	311	$	323	$	327	10.1%
Deposits		2,779		2,307		2,374		2,557		2,640	-5.0%
Net flows		671		(1,207)		362		340		347	-48.3%
Average account values		75,845		73,611		79,644		83,889		89,589	18.1%
Life Insurance
Operating revenues	$	1,821	$	1,639	$	2,127	$	1,928	$	1,939	6.5%
Deposits		1,450		1,428		1,537		1,476		1,219	-15.9%
Net flows		963		1,023		1,156		996		793	-17.7%
Average account values		52,866		52,693		54,570		56,419		58,008	9.7%
Average in-force face amount		836,488		853,071		870,505		886,005		900,973	7.7%
Group Protection
Operating revenues	$	1,224	$	1,199	$	1,184	$	1,184	$	1,254	2.5%
Insurance premiums		1,094		1,086		1,052		1,049		1,119	2.3%
Consolidated
Adjusted operating revenues (1)	$	4,509	$	4,209	$	4,788	$	4,655	$	4,762	5.6%
Deposits		7,926		6,250		6,450		6,543		6,673	-15.8%
Net flows		2,162		(126)		1,235		692		364	-83.2%
Average account values		266,633		260,501		278,582		291,183		307,696	15.4%
(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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Sales
Annuities:
With guaranteed living benefits	$	1,185	$	824	$	541	$	507	$	638	-46.2%
Without guaranteed living benefits		1,454		1,392		1,911		1,921		2,090	43.7%
Variable		2,639		2,216		2,452		2,428		2,728	3.4%
Fixed		1,058		299		87		82		86	-91.9%
Total Annuities	$	3,697	$	2,515	$	2,539	$	2,510	$	2,814	-23.9%
Retirement Plan Services:
First-year sales	$	867	$	827	$	870	$	1,107	$	694	-20.0%
Recurring deposits		1,912		1,480		1,504		1,450		1,946	1.8%
Total Retirement Plan Services	$	2,779	$	2,307	$	2,374	$	2,557	$	2,640	-5.0%
Life Insurance:
UL	$	9	$	5	$	3	$	3	$	2	-77.8%
MoneyGuard®		34		36		35		22		16	-52.9%
IUL		21		23		24		22		16	-23.8%
VUL		44		55		60		30		22	-50.0%
Term		35		36		28		32		30	-14.3%
Total individual life insurance		143		155		150		109		86	-39.9%
Executive Benefits		26		4		36		6		28	7.7%
Total Life Insurance	$	169	$	159	$	186	$	115	$	114	-32.5%
Group Protection:
Life	$	50	$	47	$	24	$	144	$	41	-18.0%
Disability		42		47		17		291		28	-33.3%
Dental		10		11		8		15		5	-50.0%
Total Group Protection	$	102	$	105	$	49	$	450	$	74	-27.5%
Percent employee-paid		59.9%		51.6%		58.9%		28.4%		66.7%
Page 9

Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Operating Revenues
Annuities	$	1,129	$	1,037	$	1,126	$	1,163	$	1,204	6.6%
Retirement Plan Services		297		282		311		323		327	10.1%
Life Insurance		1,821		1,639		2,127		1,928		1,939	6.5%
Group Protection		1,224		1,199		1,184		1,184		1,254	2.5%
Other Operations		38		52		40		57		38	0.0%
Total segment operating revenues	$	4,509	$	4,209	$	4,788	$	4,655	$	4,762	5.6%
General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities		120	$	111	$	111	$	126	$	116	-3.3%
Retirement Plan Services		72		68		69		78		69	-4.2%
Life Insurance		121		116		118		126		118	-2.5%
Group Protection		154		153		155		164		158	2.6%
Other Operations		(4)		55		34		71		44	NM
Total	$	463	$	503	$	487	$	565	$	505	9.1%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.7%		10.7%		9.9%		10.8%		9.7%
Retirement Plan Services		24.4%		24.3%		22.3%		24.2%		21.2%
Life Insurance		6.7%		7.1%		5.5%		6.5%		6.1%
Group Protection		12.5%		12.7%		13.1%		13.8%		12.5%
Other Operations		-10.0%		107.5%		83.7%		125.8%		115.6%
Total		10.3%		12.0%		10.2%		12.1%		10.6%
(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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	520	$	554	$	537	$	638	$	556	6.9%
Commissions		706		621		611		625		616	-12.7%
Taxes, licenses and fees		90		79		85		73		87	-3.3%
Interest and debt expense		68		68		66		65		65	-4.4%
Expenses associated with reserve financing
and letters of credit		23		23		24		25		25	8.7%
Total adjusted operating commissions and other
expenses incurred		1,407		1,345		1,323		1,426		1,349	-4.1%
Less Amounts Capitalized
General and administrative expenses		(57)		(51)		(50)		(73)		(51)	10.5%
Commissions		(362)		(291)		(272)		(250)		(233)	35.6%
Taxes, licenses and fees		(13)		(13)		(11)		(9)		(8)	38.5%
Total amounts capitalized		(432)		(355)		(333)		(332)		(292)	32.4%
Total expenses incurred, net of amounts
capitalized, excluding amortization		975		990		990		1,094		1,057	8.4%
Amortization
Amortization of DAC, VOBA and other intangibles		247		207		680		218		247	0.0%
Total operating commissions and other expenses	$	1,222	$	1,197	$	1,670	$	1,312	$	1,304	6.7%
Page 11

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Annuities
Earned rate on reserves		3.73%		3.69%		3.63%		3.42%		3.27%	(46)
Variable investment income on reserves (1)		0.03%		0.10%		0.09%		0.15%		0.11%	8
Net investment income yield on reserves		3.76%		3.79%		3.72%		3.57%		3.38%	(38)
Interest rate credited to contract holders		2.31%		2.26%		2.12%		1.97%		2.00%	(31)
Interest rate spread		1.45%		1.53%		1.60%		1.60%		1.38%	(7)
Base spreads excluding variable investment income		1.42%		1.43%		1.51%		1.45%		1.27%	(15)
Retirement Plan Services
Earned rate on reserves		3.95%		3.85%		3.82%		3.68%		3.64%	(31)
Variable investment income on reserves (1)		0.05%		0.06%		0.10%		0.21%		0.17%	12
Net investment income yield on reserves		4.00%		3.91%		3.92%		3.89%		3.81%	(19)
Interest rate credited to contract holders		2.87%		2.86%		2.81%		2.78%		2.68%	(19)
Interest rate spread		1.13%		1.05%		1.11%		1.11%		1.13%	-
Base spreads excluding variable investment income		1.08%		0.99%		1.01%		0.90%		0.96%	(12)
Life Insurance – Interest-Sensitive
Earned rate on reserves		4.77%		4.78%		4.76%		4.71%		4.71%	(6)
Variable investment income on reserves (1)		0.31%		-0.72%		0.76%		0.95%		1.05%	74
Net investment income yield on reserves		5.08%		4.06%		5.52%		5.66%		5.76%	68
Interest rate credited to contract holders		3.80%		3.81%		3.75%		3.83%		3.76%	(4)
Interest rate spread		1.28%		0.25%		1.77%		1.83%		2.00%	72
Base spreads excluding variable investment income		0.97%		0.97%		1.01%		0.88%		0.95%	(2)
Total (2)
Earned rate (3)		4.29%		4.06%		4.09%		4.04%		3.96%	(33)
Variable investment income (1) (3)		0.19%		-0.34%		0.45%		0.56%		0.59%	40
Net investment income yield (3)		4.48%		3.72%		4.54%		4.60%		4.55%	7
(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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	53	$	22	$	17	$	29	$	32	-39.6%
Fee income		593		567		608		626		652	9.9%
Net investment income		326		270		334		343		328	0.6%
Operating realized gain (loss)		54		49		57		54		50	-7.4%
Amortization of deferred gain		8		8		8		5		6	-25.0%
Other revenues		95		121		102		106		136	43.2%
Total operating revenues		1,129		1,037		1,126		1,163		1,204	6.6%
Operating expenses:
Interest credited		192		192		198		191		199	3.6%
Benefits		170		127		261		138		141	-17.1%
Commissions incurred		311		246		248		255		275	-11.6%
Other expenses incurred		250		221		232		252		255	2.0%
Amounts capitalized		(191)		(122)		(118)		(117)		(127)	33.5%
Amortization		95		101		85		106		111	16.8%
Total operating expenses		827		765		906		825		854	3.3%
Income (loss) from operations before taxes		302		272		220		338		350	15.9%
Federal income tax expense (benefit)		41		35		24		49		60	46.3%
Income (loss) from operations	$	261	$	237	$	196	$	289	$	290	11.1%
Effective Federal Income Tax Rate		13.4%		12.9%		11.1%		14.5%		17.2%
Average Equity, Excluding Goodwill and AOCI	$	4,887	$	5,002	$	5,394	$	5,405	$	5,071	3.8%
ROE, Excluding Goodwill and AOCI		21.4%		19.0%		14.5%		21.4%		22.9%
Return on Average Account Values		76		71		54		77		72	(4)
Income (Loss) from Operations
Variable annuity		232		207		176		254		261	12.5%
Fixed annuity		29		30		20		35		29	0.0%
Account Values
Variable annuity account values:
Average	$	120,972	$	116,861	$	127,011	$	133,630	$	142,990	18.2%
End-of-period		108,689		121,712		127,585		140,313		144,157	32.6%
Fixed annuity account values:
Average		16,950		17,336		17,357		17,245		17,109	0.9%
End-of-period		17,208		17,349		17,263		17,205		16,966	-1.4%
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
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	61	$	58	$	65	$	69	$	71	16.4%
Net investment income		229		218		240		246		248	8.3%
Other revenues		7		6		6		8		8	14.3%
Total operating revenues		297		282		311		323		327	10.1%
Operating expenses:
Interest credited		150		153		155		157		155	3.3%
Benefits		-		1		1		-		1	NM
Commissions incurred		19		18		19		20		21	10.5%
Other expenses incurred		82		77		74		86		77	-6.1%
Amounts capitalized		(6)		(6)		(4)		(5)		(5)	16.7%
Amortization		7		6		8		8		8	14.3%
Total operating expenses		252		249		253		266		257	2.0%
Income (loss) from operations before taxes		45		33		58		57		70	55.6%
Federal income tax expense (benefit)		5		3		8		8		13	160.0%
Income (loss) from operations	$	40	$	30	$	50	$	49	$	57	42.5%
Effective Federal Income Tax Rate		11.3%		10.1%		13.7%		14.6%		18.9%
Average Equity, Excluding Goodwill and AOCI	$	1,415	$	1,410	$	1,441	$	1,480	$	1,526	7.8%
ROE, Excluding Goodwill and AOCI		11.2%		8.5%		13.8%		13.2%		14.9%
Pre-tax Net Margin		30.4%		25.8%		36.8%		34.4%		40.4%
Return on Average Account Values		21		16		25		23		25	4
Net Flows by Market
Small Market		141		30		113		66		(28)	NM
Mid - Large Market		790		(1,084)		500		587		680	-13.9%
Multi-Fund® and Other		(260)		(153)		(251)		(313)		(305)	-17.3%
Net Flows – Trailing Twelve Months	$	1,672	$	158	$	248	$	166	$	(158)	NM
Page 14

Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	224	$	230	$	223	$	274	$	253	12.9%
Fee income		893		830		1,141		861		867	-2.9%
Net investment income		697		577		761		787		809	16.1%
Operating realized gain (loss)		(3)		(2)		-		(1)		(2)	33.3%
Amortization of deferred gain on
business sold through reinsurance		3		3		3		4		3	0.0%
Other revenues		7		1		(1)		3		9	28.6%
Total operating revenues		1,821		1,639		2,127		1,928		1,939	6.5%
Operating expenses:
Interest credited		371		375		369		375		370	-0.3%
Benefits		954		1,084		1,428		1,120		1,173	23.0%
Commissions incurred		191		173		171		152		120	-37.2%
Other expenses incurred		209		195		209		204		194	-7.2%
Amounts capitalized		(216)		(202)		(202)		(168)		(138)	36.1%
Amortization		103		66		552		68		90	-12.6%
Total operating expenses		1,612		1,691		2,527		1,751		1,809	12.2%
Income (loss) from operations before taxes		209		(52)		(400)		177		130	-37.8%
Federal income tax expense (benefit)		38		(15)		(89)		33		23	-39.5%
Income (loss) from operations	$	171	$	(37)	$	(311)	$	144	$	107	-37.4%
Effective Federal Income Tax Rate		18.1%		28.9%		22.2%		18.6%		17.7%
Average Equity, Excluding Goodwill and AOCI	$	8,798	$	8,977	$	8,854	$	8,788	$	8,909	1.3%
ROE, Excluding Goodwill and AOCI		7.8%		-1.6%		-14.1%		6.5%		4.8%
Average Account Values	$	52,866	$	52,693	$	54,570	$	56,419	$	58,008	9.7%
In-Force Face Amount
UL and other	$	356,889	$	357,690	$	358,897	$	358,554	$	358,044	0.3%
Term insurance		486,311		505,251		519,173		535,387		549,960	13.1%
Total in-force face amount	$	843,200	$	862,941	$	878,070	$	893,941	$	908,004	7.7%
Page 15

Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,094	$	1,086	$	1,052	$	1,049	$	1,119	2.3%
Net investment income		81		69		88		91		91	12.3%
Other revenues		49		44		44		44		44	-10.2%
Total operating revenues		1,224		1,199		1,184		1,184		1,254	2.5%
Operating expenses:
Interest credited		2		1		1		1		1	-50.0%
Benefits		862		843		875		920		970	12.5%
Commissions incurred		87		97		80		95		91	4.6%
Other expenses incurred		200		198		194		227		208	4.0%
Amounts capitalized		(19)		(23)		(9)		(41)		(21)	-10.5%
Amortization		42		34		35		36		38	-9.5%
Total operating expenses		1,174		1,150		1,176		1,238		1,287	9.6%
Income (loss) from operations before taxes		50		49		8		(54)		(33)	NM
Federal income tax expense (benefit)		10		10		2		(12)		(7)	NM
Income (loss) from operations	$	40	$	39	$	6	$	(42)	$	(26)	NM
Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%
Average Equity, Excluding Goodwill and AOCI	$	2,601	$	2,628	$	2,678	$	2,711	$	2,718	4.5%
ROE, Excluding Goodwill and AOCI		6.1%		5.9%		0.9%		-6.3%		-3.8%
Loss Ratios by Product Line
Life		79.4%		82.6%		91.9%		93.4%		101.0%
Disability		78.3%		78.7%		78.9%		86.2%		78.8%
Dental		74.6%		40.2%		70.1%		67.3%		76.8%
Total		78.5%		77.8%		83.2%		87.8%		86.8%
Page 16

Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Other Operations
Operating revenues:
Insurance premiums	$	2	$	5	$	2	$	11	$	2	0.0%
Net investment income		42		38		35		38		34	-19.0%
Other revenues		(6)		9		3		8		2	133.3%
Total operating revenues		38		52		40		57		38	0.0%
Operating expenses:
Interest credited		12		11		9		8		12	0.0%
Benefits		16		30		33		40		15	-6.3%
Commissions and other expenses		(22)		36		10		46		29	231.8%
Interest and debt expenses		68		68		66		65		65	-4.4%
Strategic digitization expense		12		14		20		23		13	8.3%
Total operating expenses		86		159		138		182		134	55.8%
Income (loss) from operations before taxes		(48)		(107)		(98)		(125)		(96)	-100.0%
Federal income tax expense (benefit)		(1)		(25)		(24)		(31)		(18)	NM
Income (loss) from operations	$	(47)	$	(82)	$	(74)	$	(94)	$	(78)	-66.0%
Page 17

Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	7,928	$	9,457	$	7,241	$	6,520	$	6,025	-24.0%
Business acquired (sold) through reinsurance		(10)		-		-		-		-	100.0%
Cumulative effect from adoption of new
accounting standard		5		-		-		-		-	-100.0%
Deferrals		435		355		334		333		295	-32.2%
Operating amortization		(243)		(204)		(679)		(212)		(244)	-0.4%
Deferrals, net of operating amortization		192		151		(345)		121		51	-73.4%
Amortization associated with benefit ratio unlocking		66		(4)		(10)		(30)		(6)	NM
Adjustment related to realized (gains) losses		58		33		(198)		87		50	-13.8%
Adjustment related to unrealized (gains) losses		1,218		(2,396)		(168)		(673)		1,764	44.8%
Balance as of end-of-period	$	9,457	$	7,241	$	6,520	$	6,025	$	7,884	-16.6%
DFEL
Balance as of beginning-of-period	$	650	$	1,379	$	433	$	392	$	401	-38.3%
Cumulative effect from adoption of new
accounting standard		4		-		-		-		-	-100.0%
Deferrals		240		252		263		249		231	-3.8%
Operating amortization		(160)		(111)		(424)		(120)		(131)	18.1%
Deferrals, net of operating amortization		80		141		(161)		129		100	25.0%
Amortization associated with benefit ratio unlocking		8		(2)		(1)		(4)		(1)	NM
Adjustment related to realized (gains) losses		17		12		(14)		9		1	-94.1%
Adjustment related to unrealized (gains) losses		620		(1,097)		135		(125)		58	-90.6%
Balance as of end-of-period	$	1,379	$	433	$	392	$	401	$	559	-59.5%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	6,382	$	5,378	$	4,841	$	4,443	$	5,787	-9.3%
Page 18

Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Fixed Annuities
Balance as of beginning-of-period	$	25,384	$	25,740	$	25,801	$	25,572	$	25,405	0.1%
Gross deposits		1,058		299		87		82		86	-91.9%
Full surrenders and deaths		(400)		(384)		(399)		(400)		(494)	-23.5%
Other contract benefits		(156)		(143)		(135)		(145)		(141)	9.6%
Net flows		502		(228)		(447)		(463)		(549)	NM
Contract holder assessments		(13)		(16)		(16)		(19)		(25)	-92.3%
Reinvested interest credited		(133)		305		234		315		177	233.1%
Balance as of end-of-period, gross		25,740		25,801		25,572		25,405		25,008	-2.8%
Reinsurance ceded		(8,532)		(8,452)		(8,309)		(8,200)		(8,042)	5.7%
Balance as of end-of-period, net	$	17,208	$	17,349	$	17,263	$	17,205	$	16,966	-1.4%
Variable Annuities
Balance as of beginning-of-period	$	125,492	$	108,689	$	121,713	$	127,585	$	140,313	11.8%
Gross deposits		2,639		2,216		2,452		2,428		2,728	3.4%
Full surrenders and deaths		(1,602)		(1,068)		(1,384)		(1,600)		(1,901)	-18.7%
Other contract benefits		(1,011)		(862)		(904)		(1,009)		(1,054)	-4.3%
Net flows		26		286		164		(181)		(227)	NM
Contract holder assessments		(632)		(611)		(648)		(666)		(684)	-8.2%
Change in market value and reinvestment		(16,197)		13,349		6,356		13,575		4,755	129.4%
Balance as of end-of-period, gross		108,689		121,713		127,585		140,313		144,157	32.6%
Reinsurance ceded		-		(1)		-		-		-	NM
Balance as of end-of-period, gross and net	$	108,689	$	121,712	$	127,585	$	140,313	$	144,157	32.6%
Total
Balance as of beginning-of-period	$	150,876	$	134,429	$	147,514	$	153,157	$	165,718	9.8%
Gross deposits		3,697		2,515		2,539		2,510		2,814	-23.9%
Full surrenders and deaths		(2,002)		(1,452)		(1,783)		(2,000)		(2,395)	-19.6%
Other contract benefits		(1,167)		(1,005)		(1,039)		(1,154)		(1,195)	-2.4%
Net flows		528		58		(283)		(644)		(776)	NM
Contract holder assessments		(645)		(627)		(664)		(685)		(709)	-9.9%
Change in market value and reinvestment		(16,330)		13,654		6,590		13,890		4,932	130.2%
Balance as of end-of-period, gross		134,429		147,514		153,157		165,718		169,165	25.8%
Reinsurance ceded		(8,532)		(8,453)		(8,309)		(8,200)		(8,042)	5.7%
Balance as of end-of-period, net	$	125,897	$	139,061	$	144,848	$	157,518	$	161,123	28.0%
Page 19

Lincoln Financial Group
Retirement Plan Services – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
General Account
Balance as of beginning-of-period	$	20,558	$	21,335	$	21,672	$	22,316	$	22,916	11.5%
Gross deposits		609		817		568		731		490	-19.5%
Withdrawals		(565)		(752)		(477)		(533)		(583)	-3.2%
Net flows		44		65		91		198		(93)	NM
Transfers between fixed and variable accounts		587		124		402		247		35	-94.0%
Contract holder assessments		(3)		(3)		(4)		(3)		(3)	0.0%
Reinvestment interest credited		149		151		155		158		153	2.7%
Balance as of end-of-period	$	21,335	$	21,672	$	22,316	$	22,916	$	23,008	7.8%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	58,131	$	48,301	$	54,886	$	58,255	$	65,391	12.5%
Gross deposits		2,170		1,490		1,806		1,826		2,150	-0.9%
Withdrawals		(1,543)		(2,762)		(1,535)		(1,684)		(1,710)	-10.8%
Net flows		627		(1,272)		271		142		440	-29.8%
Transfers between fixed and variable accounts		(610)		(161)		(436)		(326)		(141)	76.9%
Contract holder assessments		(54)		(49)		(50)		(59)		(62)	-14.8%
Change in market value and reinvestment		(9,793)		8,067		3,584		7,379		2,521	125.7%
Balance as of end-of-period	$	48,301	$	54,886	$	58,255	$	65,391	$	68,149	41.1%
Total
Balance as of beginning-of-period	$	78,689	$	69,636	$	76,558	$	80,571	$	88,307	12.2%
Gross deposits		2,779		2,307		2,374		2,557		2,640	-5.0%
Withdrawals		(2,108)		(3,514)		(2,012)		(2,217)		(2,293)	-8.8%
Net flows		671		(1,207)		362		340		347	-48.3%
Transfers between fixed and variable accounts		(23)		(37)		(34)		(79)		(106)	NM
Contract holder assessments		(57)		(52)		(54)		(62)		(65)	-14.0%
Change in market value and reinvestment		(9,644)		8,218		3,739		7,537		2,674	127.7%
Balance as of end-of-period	$	69,636	$	76,558	$	80,571	$	88,307	$	91,157	30.9%
Page 20

Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
General Account
Balance as of beginning-of-period	$	38,141	$	38,054	$	38,034	$	38,080	$	38,136	0.0%
Deposits		996		964		966		1,028		899	-9.7%
Withdrawals and deaths		(380)		(263)		(230)		(282)		(296)	22.1%
Net flows		616		701		736		746		603	-2.1%
Contract holder assessments		(1,075)		(1,073)		(1,079)		(1,088)		(1,073)	0.2%
Reinvested interest credited		372		352		389		398		387	4.0%
Balance as of end-of-period, gross		38,054		38,034		38,080		38,136		38,053	0.0%
Reinsurance ceded		(649)		(646)		(646)		(640)		(636)	2.0%
Balance as of end-of-period, net	$	37,405	$	37,388	$	37,434	$	37,496	$	37,417	0.0%
Separate Account
Balance as of beginning-of-period	$	17,646	$	14,782	$	17,351	$	18,671	$	21,078	19.4%
Deposits		454		464		571		448		320	-29.5%
Withdrawals and deaths		(107)		(142)		(151)		(198)		(130)	-21.5%
Net flows		347		322		420		250		190	-45.2%
Contract holder assessments		(204)		(211)		(217)		(209)		(197)	3.4%
Change in market value and reinvestment		(3,007)		2,458		1,117		2,366		912	130.3%
Balance as of end-of-period, gross		14,782		17,351		18,671		21,078		21,983	48.7%
Reinsurance ceded		(712)		(830)		(874)		(969)		(990)	-39.0%
Balance as of end-of-period, net	$	14,070	$	16,521	$	17,797	$	20,109	$	20,993	49.2%
Total
Balance as of beginning-of-period	$	55,787	$	52,836	$	55,385	$	56,751	$	59,214	6.1%
Deposits		1,450		1,428		1,537		1,476		1,219	-15.9%
Withdrawals and deaths		(487)		(405)		(381)		(480)		(426)	12.5%
Net flows		963		1,023		1,156		996		793	-17.7%
Contract holder assessments		(1,279)		(1,284)		(1,296)		(1,297)		(1,270)	0.7%
Change in market value and reinvestment		(2,635)		2,810		1,506		2,764		1,299	149.3%
Balance as of end-of-period, gross		52,836		55,385		56,751		59,214		60,036	13.6%
Reinsurance ceded		(1,361)		(1,476)		(1,520)		(1,609)		(1,626)	-19.5%
Balance as of end-of-period, net	$	51,475	$	53,909	$	55,231	$	57,605	$	58,410	13.5%
Page 21

Lincoln Financial Group
Select Investment Data
Unaudited (millions of dollars)
	As of 3/31/20				As of 12/31/20				As of 3/31/21
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS, Trading and Equity Securities, at Fair Value
Fixed maturity AFS securities, net of allowance for credit losses:
Corporate bonds	$	85,797		80.3%	$	102,789		80.5%	$	96,570		79.3%
U.S. government bonds		482		0.5%		484		0.4%		444		0.4%
State and municipal bonds		5,906		5.5%		6,921		5.4%		6,625		5.4%
Foreign government bonds		389		0.4%		470		0.4%		485		0.4%
Residential mortgage-backed securities		3,271		3.1%		3,076		2.4%		3,077		2.5%
Commercial mortgage-backed securities		1,119		1.0%		1,505		1.2%		1,516		1.2%
Asset-backed securities		5,086		4.8%		7,184		5.6%		7,996		6.6%
Hybrid and redeemable preferred securities		556		0.5%		615		0.5%		600		0.5%
Total fixed maturity AFS securities, net of allowance for credit losses		102,606		96.1%		123,044		96.4%		117,313		96.3%
Trading securities		4,019		3.8%		4,501		3.5%		4,365		3.6%
Equity securities		83		0.1%		129		0.1%		123		0.1%
Total fixed maturity AFS securities, net of allowance for credit losses, and trading and
equity securities	$	106,708		100.0%	$	127,674		100.0%	$	121,801		100.0%
Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost
Fixed maturity AFS securities	$	96,217		96.1%	$	104,174		96.1%	$	105,866		96.2%
Trading securities		3,790		3.8%		4,072		3.8%		4,067		3.7%
Equity securities		121		0.1%		132		0.1%		125		0.1%
Total fixed maturity AFS, trading and equity securities	$	100,128		100.0%	$	108,378		100.0%	$	110,058		100.0%
Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				95.8%				95.8%				96.0%
Below investment grade				4.2%				4.2%				4.0%
Page 22

Lincoln Financial Group
Realized Gain (Loss), After-DAC
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Components of Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	51	$	47	$	57	$	53	$	48	-5.9%
Total excluded realized gain (loss)		(75)		(694)		572		(523)		(229)	NM
Total realized gain (loss), pre-tax	$	(24)	$	(647)	$	629	$	(470)	$	(181)	NM
Components of Excluded Realized Gain (Loss), After-Tax
Credit loss benefit (expense) on mortgage loans on
real estate	$	(51)	$	(79)	$	50	$	(6)	$	17	133.3%
Credit loss benefit (expense) on other financial assets		(16)		(1)		(1)		(2)		(1)	93.8%
Realized gain (loss) related to certain financial assets		14		(36)		(5)		(7)		1	-92.9%
Realized gain (loss) on equity securities		(15)		2		3		13		8	153.3%
Realized gain (loss) on the mark-to-market on certain
instruments		38		(1)		(6)		2		19	-50.0%
Realized gain (loss) related to financial assets, after-tax		(30)		(115)		41		-		44	246.7%
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged and benefit ratio unlocking		(496)		(71)		12		(9)		(42)	91.5%
GLB non-performance risk component		147		(79)		464		(240)		(144)	NM
Total variable annuity net derivative results		(349)		(150)		476		(249)		(186)	46.7%
Indexed annuity forward-starting option		(30)		(1)		18		12		17	156.7%
Excluded realized gain (loss), including
benefit ratio unlocking, after-tax		(409)		(266)		535		(237)		(125)	69.4%
Less: benefit ratio unlocking, after-tax		(349)		282		83		177		55	115.8%
Total excluded realized gain (loss), after-tax	$	(60)	$	(548)		452	$	(414)	$	(180)	NM
Page 23

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended
	3/31/20		6/30/20		9/30/20		12/31/20		3/31/21		Change
Revenues
Total revenues	$	4,425	$	3,517	$	5,361	$	4,135	$	4,534	2.5%
Less:
Excluded realized gain (loss)		(75)		(694)		572		(523)		(229)	NM
Amortization of DFEL associated with
benefit ratio unlocking		(9)		2		1		3		1	111.1%
Adjusted operating revenues	$	4,509	$	4,209	$	4,788	$	4,655	$	4,762	5.6%
Net Income
Net income (loss)	$	52	$	(94)	$	398	$	143	$	225	NM
Less:
Excluded realized gain (loss), after-tax		(60)		(548)		452		(414)		(180)	NM
Benefit ratio unlocking, after-tax		(349)		282		83		177		55	115.8%
Net impact from the Tax Cuts and Jobs Act		-		-		-		37		-	NM
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(4)		(3)		(4)		(3)		-	100.0%
Gain (loss) on early extinguishment of debt, after-tax		-		(12)		-		-		-	NM
Total adjustments		(413)		(281)		531		(203)		(125)	69.7%
Adjusted income (loss) from operations	$	465	$	187	$	(133)	$	346	$	350	-24.7%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	0.15	$	(0.49)	$	2.01	$	0.74	$	1.16	NM
Less:
Excluded realized gain (loss), after-tax		(0.30)		(2.85)		2.32		(2.12)		(0.94)	NM
Benefit ratio unlocking, after-tax		(1.77)		1.46		0.43		0.91		0.28	115.8%
Net impact from the Tax Cuts and Jobs Act		-		-		-		0.19		-	NM
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(0.02)		(0.01)		(0.02)		(0.02)		-	100.0%
Gain (loss) on early extinguishment of debt, after-tax		-		(0.06)		-		-		-	NM
Adjusted income (loss) from operations	$	2.24	$	0.97	$	(0.72)	$	1.78	$	1.82	-18.8%
Page 24

XML

Document And Entity Information	May 05, 2021
Cover [Abstract]
Document Type	8-K
Document Period End Date	May 05, 2021
Entity Registrant Name	Lincoln National Corporation
Entity Incorporation, State or Country Code	IN
Entity File Number	1-6028
Entity Tax Identification Number	35-1140070
Entity Address, Address Line One	150 N. Radnor Chester Road
Entity Address, City or Town	Radnor
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	484
Local Phone Number	583-1400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	LNC
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000059558
Amendment Flag	false