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

February 8, 2023

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
Depositary Shares, each representing a 1/1000th interest in a share of 9.000% Non-Cumulative Preferred Stock, Series D	LNC PRD	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 February 8, 2023, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter and full year ended December 31, 2022, 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, 2022, 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 February 8, 2023, announcing Lincoln National Corporation’s financial results for the quarter and full year ended December 31, 2022.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended December 31, 2022.

‎

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/ Adam Cohen
Name:	Adam Cohen
Title:	Senior Vice President and Chief
	Accounting Officer

Date: February 8, 2023

EX-99.1

FOR IMMEDIATE RELEASE

Lincoln Financial Group reports Fourth Quarter and

full year 2022 Results

_______________________________________

v Net income EPS of $0.01 and adjusted operating EPS of $0.97

v Adjusted operating results included a net unfavorable notable item of $116 million, or $(0.68) per share

v Adjusted operating EPS included $(0.24) from elevated pandemic-related claims experience and $(0.25) of below targeted alternative investment income

v BVPS, including AOCI, of $18.41; BVPS, excluding AOCI, of $63.73

v Expected year-end risk-based capital (RBC) ratio of approximately 383%

Radnor, PA, February 8, 2023 –  Lincoln Financial Group (NYSE: LNC) today reported net income for the fourth quarter of 2022 of $6 million, or $0.01 per diluted share available to common stockholders, compared to net income in the fourth quarter of 2021 of $220 million, or $1.20 per diluted share available to common stockholders. Fourth quarter adjusted income from operations was $170 million, or $0.97 per diluted share available to common stockholders, compared to adjusted income from operations of $286 million, or $1.56 per diluted share available to common stockholders, in the fourth quarter of 2021.

Net loss for the full year of 2022 was $(2.2) billion, or $(13.10) per diluted share available to common stockholders, compared to net income of $1.4 billion, or $7.43 per diluted share available to common stockholders in 2021. Full year 2022 adjusted loss from operations was $(880) million, or $(5.22) per diluted share available to common stockholders, compared to adjusted income from operations of $1.6 billion, or $8.20 per diluted share available to common stockholders for the full year of 2021.

“We took swift action during the fourth quarter to fortify our balance sheet and improve our capital generation as we remain focused on positioning our franchise for profitable, capital-efficient growth by leveraging our differentiated business model, powerful distribution capabilities, and our high-quality investment portfolio,” said Ellen Cooper, president and CEO of Lincoln Financial Group. 

	As of or For the				As of or For the
	Three Months Ended				Year Ended
	December 31,				December 31,
(in millions, except per share data)	2022		2021		2022		2021
Net Income (Loss)	$	6	$	220	$	(2,227)	$	1,405
Net Income (Loss) Available to Common Stockholders		1		220		(2,240)		1,405
Net Income (Loss) per Diluted Share Available to Common Stockholders(1)		0.01		1.20		(13.10)		7.43
Revenues		4,196		4,604		18,784		19,230
Adjusted Income (Loss) from Operations		170		286		(880)		1,551
Adjusted Income (Loss) from Operations per Diluted Share Available to
Common Stockholders(1)		0.97		1.56		(5.22)		8.20
Average Basic Shares		169.2		180.5		171.0		187.4
Average Diluted Shares		170.6		183.2		172.7		189.1
Return on Equity (ROE), Including Accumulated Other Comprehensive
Income (AOCI) (Net Income)		0.8%		4.2%		-23.3%		6.7%
Adjusted Operating ROE, Excluding AOCI (Adjusted Income from Operations)		6.0%		8.1%		-6.9%		11.0%
Book Value per Share (BVPS), Including AOCI	$	18.41	$	114.41	$	18.41	$	114.41
Book Value per Share, Excluding AOCI		63.73		78.05		63.73		78.05
(1) Due to reporting a net loss and net adjusted loss from operations for the twelve months ended December 31, 2022, basic shares
were used in the diluted EPS calculation for that period as the use of diluted shares would have resulted in a lower loss per share.

Operating Highlights – Fourth Quarter and Full Year 2022

· Life Insurance average in-force face amount of $1.1 trillion, up 11% compared to the prior-year quarter

· Annuities net flows of $137 million compared to net outflows of $655 million in the prior-year quarter

· Group Protection insurance premiums of $1.2 billion in the quarter, up 9%, and $4.8 billion for the full year, up 7%

· Retirement Plan Services net flows of $235 million compared to net outflows of $380 million in the prior-year quarter and full-year net flows of $2.9 billion compared to net flows of $464 million in the prior year

This quarter’s adjusted operating EPS results included the net impact of an unfavorable notable item of $0.68 related to legal expenses. Full-year results included $12.21 of net unfavorable items primarily related to impacts from the company’s annual review of DAC and reserve assumptions. In the prior-year quarter, there were no notable items within adjusted income from operations while the prior full-year results included $0.57 of net unfavorable items primarily related to legal expenses and impacts from the company’s annual review of DAC and reserve assumptions.     

Fourth Quarter 2022 – Segment Results

Life Insurance

Life Insurance reported income from operations of $46 million compared to $80 million in the prior-year quarter. The decrease was primarily driven by lower returns within the company’s alternative investment portfolio and the run-rate impact from the company’s annual review of DAC and reserve assumptions in the third quarter.

Total Life sales for the quarter were $186 million compared to $254 million in the prior-year quarter. For the full year, sales of $705 million were up 7% driven primarily by growth in indexed universal life sales.

Average Life Insurance in-force of $1.1 trillion increased 11% over the prior-year quarter. For the quarter, average account values were $48 billion, down 6% compared to the prior-year quarter.

Annuities

Annuities reported income from operations of $238 million, down 28% compared to the prior-year quarter. The decrease was primarily due to unfavorable equity markets lowering account values.

Total annuity deposits of $3.2 billion were up 7% from the prior-year quarter as sales growth in fixed annuities and indexed variable annuities more than offset a decline in sales of traditional variable annuities. For the full year, total annuity sales of $11.9 billion were up 1% from the prior year driven by growth in fixed annuity sales.  

Net flows were $137 million in the quarter compared to net outflows of $655 million in the prior-year quarter. For the full year, net outflows totaled $415 million compared to net outflows of $2.6 billion in the prior year.

Average account values for the quarter of $144 billion were down 16% from the prior-year quarter, primarily driven by unfavorable equity markets.  Variable annuities with living benefits represented 45% of total annuity account values, a decrease of five percentage points compared to the prior-year quarter.

Group Protection

Group Protection reported income from operations of $47 million in the quarter compared to a loss from operations of $115 million in the prior-year quarter. The increase was primarily driven by lower pandemic-related claims and improved disability results.

The total loss ratio was 79% in the current quarter compared to 96% in the prior-year quarter with the decrease driven primarily by lower pandemic-related life claims and improved disability incidence.  

Group Protection sales for the quarter were $356 million, down 8% compared to the prior-year quarter. Full-year sales were $676 million, up 15% compared to the prior year. Insurance premiums of $1.2 billion in the quarter were up 9% compared to the prior-year quarter. Full-year premiums of $4.8 billion were up 7% from the prior year.

Retirement Plan Services

Retirement Plan Services reported income from operations of $49 million, down 14% compared to the prior-year quarter. The decrease was primarily driven by lower equity markets partly offset by higher spread income.  

Total deposits for the quarter of $2.8 billion were down 7% compared to the prior-year quarter. For the full year, total deposits of $11.9 billion were up 10%. Full year growth was driven by a 17% increase in first-year sales and a 6% increase in recurring deposits.   

Net flows totaled $235 million for the quarter and $2.9 billion for the year. Average account values for the quarter of $88 billion were down 10% from the prior-year quarter primarily driven by lower equity markets.

Other Operations

Other Operations reported a loss from operations of $210 million versus a loss of $68 million in the prior-year quarter.

The current quarter included a net unfavorable notable item of $116 million related to legal expenses while the prior-year quarter included no notable items.

Fourth Quarter Highlights - Realized Gains and Losses / Impacts to Net Income

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

· A $76 million loss associated with hedge program performance.

· A $64 million loss associated with non-performance risk.

· A $37 million loss associated with indexed annuity forward-starting options.

Unrealized Gains and Losses

The company reported a net unrealized loss of $(11.9) billion, pre-tax, on its available-for-sale securities at December 31, 2022. This compares to a net unrealized gain of $13.6 billion, pre-tax, at December 31, 2021, with the year-over-year decrease primarily driven by higher treasury rates.

Share Count

The quarter’s average diluted share count of 170.6 million was down 7% from the fourth quarter of 2021, the result of repurchasing 8.7 million shares of stock at a cost of $550 million since December 31, 2021.

Book Value

As of December 31, 2022, book value per share, including AOCI, decreased 84% from the prior-year period to $18.41. Book value per share, excluding AOCI, decreased 18% from the prior-year period to $63.73.

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 fourth quarter 2022 statistical supplement available on its website, http://www.lincolnfinancial.com/investor.  

Conference Call Information

Lincoln Financial Group will discuss the company’s fourth quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, February 9, 2023.

The conference call will be broadcast live through the company website at www.lincolnfinancial.com/webcast. Please log on to the webcast at least 15 minutes prior to the start of the conference call to download and install any necessary streaming media software. A replay of the call will be available by 1:00 p.m. Eastern Time on February 9, 2023 at www.lincolnfinancial.com/webcast.

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, approximately 16 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 $282 billion in end-of-period account values as of December 31, 2022. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good and ranks among Newsweek’s Most Responsible Companies. Dedicated to diversity, equity and inclusion, we are included on transparency benchmarking tools such as the Corporate Equality Index, the Disability Equality Index and the Bloomberg Gender-Equality Index. Committed to providing our employees with flexible work arrangements, we were named to FlexJobs’ list of the Top 100 Companies to Watch for Remote Jobs in 2022. With a long and rich legacy of acting ethically, telling the truth and speaking up for what is right, Lincoln was recognized as one of Ethisphere’s 2022 World’s Most Ethical Companies®. We create opportunities for early career talent through our intern development program, which ranks among WayUp and Yello’s annual list of Top 100 Internship Programs. 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 option”);

· Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders and VUL products with secondary guarantees (“benefit ratio unlocking”);

· Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

· Gains (losses) on modification or early extinguishment of debt;

· Losses from the impairment of intangible assets;

· Income (loss) from discontinued operations;

· Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; 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 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 and preferred stock 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 – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of single premium deposits;

· 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				For the
(in millions, except per share data)	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2022		2021		2022		2021
Total Revenues	$	4,196	$	4,604	$	18,784	$	19,230
Less:
Excluded realized gain (loss)		(482)		(166)		135		(411)
Amortization of DFEL associated with benefit ratio unlocking		2		1		(16)		2
Total Adjusted Operating Revenues	$	4,676	$	4,769	$	18,665	$	19,639
Net Income (Loss) Available to Common
Stockholders – Diluted	$	1	$	220	$	(2,240)	$	1,405
Less:
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(5)		-		(13)		-
Net Income (Loss)		6		220		(2,227)		1,405
Less:
Excluded realized gain (loss), after-tax		(381)		(132)		107		(325)
Benefit ratio unlocking, after-tax		217		77		(820)		196
Impairment of intangibles		-		-		(634)		-
Transaction and integration costs related to mergers,
acquisitions and divestitures, after-tax		-		(11)		-		(11)
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		-		(6)
Total adjustments		(164)		(66)		(1,347)		(146)
Adjusted Income (Loss) from Operations	$	170	$	286	$	(880)	$	1,551
Earnings (Loss) Per Common Share – Diluted(2)
Net income (loss)	$	0.01	$	1.20	$	(13.10)	$	7.43
Adjusted income (loss) from operations		0.97		1.56		(5.22)		8.20
Average Stockholders' Equity
Average equity, including average AOCI	$	3,159	$	20,721	$	9,576	$	20,999
Average AOCI		(8,148)		6,645		(3,084)		6,944
Average equity, excluding AOCI		11,307		14,076		12,660		14,055
Average goodwill		1,144		1,778		1,540		1,778
Average equity, excluding AOCI and goodwill	$	10,163	$	12,298	$	11,120	$	12,277
Return on Equity, Including AOCI
Net income (loss) with average equity including goodwill		0.8%		4.2%		-23.3%		6.7%
Adjusted Operating Return on Equity, Excluding AOCI
Adjusted income (loss) from operations with average equity
including goodwill		6.0%		8.1%		-6.9%		11.0%
Adjusted income (loss) from operations with average equity
excluding goodwill		6.7%		9.3%		-7.9%		12.6%
(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted
diluted EPS calculations, as the use of diluted shares would result in a lower loss per share.

Lincoln National Corporation

Reconciliation of Book Value per Share

	As of December 31,
	2022		2021
Book value per share, including AOCI	$	18.41	$	114.41
Per share impact of AOCI		(45.32)		36.36
Book value per share, excluding AOCI		63.73		78.05

Lincoln National Corporation

Digest of Earnings

	For the
(in millions, except per share data)	Three Months Ended
	December 31,
	2022		2021
Revenues	$	4,196	$	4,604
Net Income (Loss)	$	6	$	220
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(5)		-
Net Income (Loss) Available to Common
Stockholders – Diluted	$	1	$	220
Earnings (Loss) Per Common Share – Basic	$	0.04	$	1.22
Earnings (Loss) Per Common Share – Diluted		0.01		1.20
Average Shares – Basic	169,217,427		180,519,527
Average Shares – Diluted	170,632,350		183,246,238
	For the
	Twelve Months Ended
	December 31,
	2022		2021
Revenues	$	18,784	$	19,230
Net Income (Loss)	$	(2,227)	$	1,405
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(13)		-
Net Income (Loss) Available to Common
Stockholders – Diluted	$	(2,240)	$	1,405
Earnings (Loss) Per Common Share – Basic	$	(13.02)	$	7.50
Earnings (Loss) Per Common Share – Diluted (2)		(13.10)		7.43
Average Shares – Basic	171,034,695		187,359,884
Average Shares – Diluted	172,700,155		189,098,767
(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2)  In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted
EPS calculations, as the use of diluted shares would result in a lower loss per share.

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:

· Weak general economic and business conditions that may affect demand for our products, 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 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; 

· The impact of new and emerging privacy regulations that may lead to increased compliance costs and reputation risk;

· Increasing scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio;

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

· Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products;

· Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses;

· The impact of the implementation of the provisions of the European Market Infrastructure Regulation 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; and an increase in liabilities related to guaranteed benefit riders of our subsidiaries’ variable annuity products;

· Ineffectiveness of our risk management policies and procedures, including our various hedging strategies; 

· 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 and in establishing related insurance reserves, which may reduce future earnings;

· Changes in accounting principles that may affect our financial statements;

· 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 inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives, including the Spark Initiative;

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

· Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for contract holder claims, affect our businesses and increase 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
Notes	1
Credit Ratings	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
Life Insurance	13
Annuities	14
Group Protection	15
Retirement Plan Services	16
Other Operations	17
DAC & Account Value Rollforwards
Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	18
Account Value Roll Forwards:
Life Insurance	19
Annuities	20
Retirement Plan Services	21
Other Information
Fixed-Income Asset Class	22
Fixed-Income Credit Quality	23
Realized Gain (Loss), After-DAC	24
Select GAAP to Non-GAAP Reconciliations	25

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.

• We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.  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 and preferred stock, 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 – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of

     single premium deposits;

• 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.

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.

Page 1a

Lincoln Financial Group

Notes

Non-GAAP Performance Measures

Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.

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 and variable universal life insurance products with secondary guarantees (“benefit ratio unlocking”);

• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

• Gains (losses) on modification or early extinguishment of debt;

• Losses from the impairment of intangible assets;

• Income (loss) from discontinued operations;

• Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; 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 benefit ratio unlocking; and

• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

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.

Certain amounts reported in prior periods' Consolidated Balance Sheets have been reclassified to conform to the presentation adopted in the current period. 

Statistical Supplement is Dated

The financial data in this document is dated February 8, 2023, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.

Page 1b

Lincoln Financial Group
Credit Ratings
	Ratings as of February 8, 2023
					Standard
		AM Best	Fitch	Moody's	& Poor's
Senior Debt Ratings		bbb+	BBB+	Baa1	BBB+
Financial Strength Ratings
The Lincoln National Life Insurance Company		A	A+	A1	A+
First Penn-Pacific Life Insurance Company		A	A+	A1	A-
Lincoln Life & Annuity Company of New York		A	A+	A1	A+
Investor Inquiries May Be Directed To:
Albert Copersino, Vice President, Investor Relations
Email:  Albert.Copersino@lfg.com
Phone:  203-257-4493
Page 2

Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Revenues
Insurance premiums	$	1,420	$	1,477	$	1,498	$	1,548	$	1,564	10.1%	$	5,617	$	6,087	8.4%
Fee income		1,628		1,568		1,506		1,527		1,453	-10.7%		6,887		6,054	-12.1%
Net investment income		1,445		1,412		1,369		1,326		1,403	-2.9%		6,115		5,511	-9.9%
Realized gain (loss)		(115)		29		522		220		(435)	NM		(212)		336	258.5%
Amortization of deferred gain on business
sold through reinsurance		19		19		19		18		18	-5.3%		46		74	60.9%
Other revenues		207		182		190		159		193	-6.8%		777		722	-7.1%
Total revenues		4,604		4,687		5,104		4,798		4,196	-8.9%		19,230		18,784	-2.3%
Expenses
Interest credited		692		697		706		722		746	7.8%		2,915		2,870	-1.5%
Benefits		2,251		2,565		2,890		5,106		1,986	-11.8%		8,529		12,546	47.1%
Commissions and other expenses		1,328		1,236		1,128		1,358		1,373	3.4%		5,791		5,095	-12.0%
Interest and debt expense		66		66		68		71		77	16.7%		270		283	4.8%
Spark program expense		30		31		43		44		49	63.3%		87		167	92.0%
Impairment of intangibles		-		-		-		634		-	NM		-		634	NM
Total expenses		4,367		4,595		4,835		7,935		4,231	-3.1%		17,592		21,595	22.8%
Income (loss) before taxes		237		92		269		(3,137)		(35)	NM		1,638		(2,811)	NM
Federal income tax expense (benefit)		17		(12)		31		(563)		(41)	NM		233		(584)	NM
Net income (loss)		220		104		238		(2,574)		6	-97.3%		1,405		(2,227)	NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans		-		(1)		(7)		(1)		(5)	NM		-		(13)	NM
Net income (loss) available to common
stockholders – diluted	$	220	$	103	$	231	$	(2,575)	$	1	-99.5%	$	1,405	$	(2,240)	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.20	$	0.58	$	1.34	$	(15.17)	$	0.01	-99.2%	$	7.43	$	(13.10)	NM
ROE, including AOCI
Net income (loss)		4.2%		2.4%		8.0%		NM		0.8%			6.7%		-23.3%
Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	98,120	$	90,561	$	83,158	$	77,446	$	79,023	-19.5%
U.S. government bonds		433		418		415		384		379	-12.5%
State and municipal bonds		6,621		6,001		5,523		5,089		5,070	-23.4%
Foreign government bonds		432		383		348		338		318	-26.4%
Residential mortgage-backed securities		2,525		2,338		2,181		2,048		2,009	-20.4%
Commercial mortgage-backed securities		1,599		1,592		1,557		1,549		1,674	4.7%
Asset-backed securities		8,512		8,929		9,711		10,347		10,904	28.1%
Hybrid and redeemable preferred securities		504		473		472		371		359	-28.8%
Total fixed maturity AFS securities, net of allowance for credit losses		118,746		110,695		103,365		97,572		99,736	-16.0%
Trading securities		4,482		4,385		3,822		3,580		3,498	-22.0%
Equity securities		318		346		344		427		427	34.3%
Mortgage loans on real estate, net of allowance for credit losses		17,991		17,892		17,922		18,066		18,301	1.7%
Policy loans		2,364		2,339		2,368		2,347		2,359	-0.2%
Derivative investments		5,437		4,840		3,370		3,681		3,736	-31.3%
Other investments		4,292		4,127		4,054		3,820		3,739	-12.9%
Total investments		153,630		144,624		135,245		129,493		131,796	-14.2%
Cash and invested cash		2,612		1,960		1,567		1,472		3,343	28.0%
DAC and VOBA		6,081		8,810		11,872		13,676		13,588	123.5%
Accrued investment income		1,189		1,247		1,226		1,283		1,253	5.4%
Reinsurance recoverables, net of allowance for credit losses		20,295		20,044		19,909		20,045		19,882	-2.0%
Goodwill		1,778		1,778		1,778		1,144		1,144	-35.7%
Other assets		19,133		18,587		18,381		20,275		20,895	9.2%
Separate account assets		182,583		168,879		145,791		137,295		143,536	-21.4%
Total assets	$	387,301	$	365,929	$	335,769	$	324,683	$	335,437	-13.4%
Page 4a

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	41,030	$	39,773	$	39,306	$	41,716	$	42,151	2.7%
Other contract holder funds		111,702		112,901		115,127		118,174		120,800	8.1%
Short-term debt		300		-		-		500		500	66.7%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		867		867		867		867		867	0.0%
Financial		5,458		5,694		5,631		5,092		5,088	-6.8%
Payables for collateral on investments		8,946		8,927		7,524		6,865		6,712	-25.0%
Other liabilities		16,143		14,176		12,335		11,957		11,682	-27.6%
Separate account liabilities		182,583		168,879		145,791		137,295		143,536	-21.4%
Total liabilities		367,029		351,217		326,581		322,466		331,336	-9.7%
Stockholders’ Equity
Preferred stock:
Series C preferred stock		-		-		-		-		493	NM
Series D preferred stock		-		-		-		-		493	NM
Common stock		4,735		4,586		4,546		4,534		4,544	-4.0%
Retained earnings		9,096		8,876		8,985		6,311		6,239	-31.4%
AOCI:
Unrealized investment gains (losses)		6,674		1,485		(4,104)		(8,384)		(7,356)	NM
Foreign currency translation adjustment		(14)		(19)		(33)		(47)		(34)	NM
Funded status of employee benefit plans		(219)		(216)		(206)		(197)		(278)	-26.9%
Total AOCI		6,441		1,250		(4,343)		(8,628)		(7,668)	NM
Total stockholders’ equity		20,272		14,712		9,188		2,217		4,101	-79.8%
Total liabilities and stockholders’ equity	$	387,301	$	365,929	$	335,769	$	324,683	$	335,437	-13.4%
Page 4b

Lincoln Financial Group
Earnings, Shares and Return on Equity
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Income (Loss)
Net income (loss)	$	220	$	104	$	238	$	(2,574)	$	6	-97.3%	$	1,405	$	(2,227)	NM
Pre-tax adjusted income (loss) from operations		320		333		463		(2,243)		173	-45.9%		1,824		(1,274)	NM
After-tax adjusted income (loss) from operations (1)		286		294		391		(1,735)		170	-40.6%		1,551		(880)	NM
Adjusted operating tax rate		10.6%		11.5%		15.6%		22.6%		1.5%			15.0%		30.9%
Average Stockholders’ Equity
Average equity, including AOCI	$	20,721	$	17,492	$	11,950	$	5,702	$	3,159	-84.8%	$	20,999	$	9,576	-54.4%
Average AOCI		6,645		3,846		(1,547)		(6,485)		(8,148)	NM		6,944		(3,084)	NM
Average equity, excluding AOCI	$	14,076	$	13,646	$	13,497	$	12,187	$	11,307	-19.7%	$	14,055	$	12,660	-9.9%
ROE, Excluding AOCI
Net income (loss)		6.3%		3.0%		7.0%		-84.5%		0.2%			10.0%		-17.6%
Adjusted income (loss) from operations		8.1%		8.6%		11.6%		-57.0%		6.0%			11.0%		-6.9%
Per Common Share
Net income (loss) (diluted)	$	1.20	$	0.58	$	1.34	$	(15.17)	$	0.01	-99.2%	$	7.43	$	(13.10)	NM
Adjusted income (loss) from operations (diluted)		1.56		1.66		2.23		(10.23)		0.97	-37.8%		8.20		(5.22)	NM
Dividends declared during the period		0.45		0.45		0.45		0.45		0.45	0.0%		1.71		1.80	5.3%
Book value, including AOCI	$	114.41	$	85.59	$	53.97	$	13.10	$	18.41	-83.9%	$	114.41	$	18.41	-83.9%
Per share impact of AOCI		36.36		7.27		(25.52)		(50.99)		(45.32)	NM		36.36		(45.32)	NM
Book value, excluding AOCI	$	78.05	$	78.32	$	79.49	$	64.09	$	63.73	-18.3%	$	78.05	$	63.73	-18.3%
Common Shares
Repurchased during the period		9.1		5.8		1.8		1.0		-	-100.0%		16.2		8.7	-46.3%
End-of-period – basic		177.2		171.9		170.2		169.2		169.2	-4.5%		177.2		169.2	-4.5%
Average for the period – basic		180.5		174.2		171.1		169.7		169.2	-6.3%		187.4		171.0	-8.8%
End-of-period – diluted		179.8		173.8		171.6		170.7		170.5	-5.2%		179.8		170.5	-5.2%
Average for the period – diluted		183.2		176.4		172.7		171.1		170.6	-6.9%		189.1		172.7	-8.7%
(1) See reconciliation to net income (loss) on page 25.
Page 5

Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Cash Returned to Common Stockholders
Shares repurchased	$	650	$	400	$	100	$	50	$	-	-100.0%	$	1,105	$	550	-50.2%
Common dividends		78		80		77		77		76	-2.6%		319		310	-2.8%
Total cash returned to common stockholders	$	728	$	480	$	177	$	127	$	76	-89.6%	$	1,424	$	860	-39.6%
Leverage Ratio
Short-term debt	$	300	$	-	$	-	$	500	$	500	66.7%
Long-term debt		6,325		6,561		6,498		5,959		5,955	-5.8%
Total debt (1)		6,625		6,561		6,498		6,459		6,455	-2.6%
Preferred stock		-		-		-		-		986	NM
Total debt and preferred stock		6,625		6,561		6,498		6,459		7,441	12.3%
Less:
Operating debt (2)		867		867		867		867		867	0.0%
Pre-funding of upcoming debt maturities		300		300		300		300		500	66.7%
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
50% of preferred stock		-		-		-		-		493	NM
Carrying value of fair value hedges and other items		335		273		209		169		164	-51.0%
Total numerator	$	4,821	$	4,819	$	4,820	$	4,821	$	5,115	6.1%
Total stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,598	$	13,227	$	13,292	$	10,601	$	11,457	-15.7%
Add:  25% of capital securities and subordinated
notes		302		302		302		302		302	0.0%
Less:  50% of preferred stock		-		-		-		-		493	NM
Total numerator		4,821		4,819		4,820		4,821		5,115	6.1%
Total denominator	$	18,721	$	18,348	$	18,414	$	15,724	$	16,381	-12.5%
Leverage ratio		25.8%		26.3%		26.2%		30.7%		31.2%
Holding Company Available Liquidity	$	1,117	$	755	$	756	$	756	$	960	-14.1%
(1) Excludes obligations under certain financing arrangements and finance leases of $664 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											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Income (Loss) from Operations, Pre-Tax
Life Insurance	$	97	$	65	$	139	$	(2,743)	$	51	-47.4%	$	657	$	(2,487)	NM
Annuities		391		351		295		534		272	-30.4%		1,524		1,452	-4.7%
Group Protection		(146)		(52)		75		46		59	140.4%		(160)		129	180.6%
Retirement Plan Services		68		64		63		60		57	-16.2%		284		244	-14.1%
Other Operations		(90)		(95)		(109)		(140)		(266)	NM		(481)		(612)	-27.2%
Adjusted income (loss) from operations, before
income taxes	$	320	$	333	$	463	$	(2,243)	$	173	-45.9%	$	1,824	$	(1,274)	NM
Income (Loss) from Operations, After-Tax
Life Insurance	$	80	$	58	$	114	$	(2,160)	$	46	-42.5%	$	535	$	(1,941)	NM
Annuities		332		302		256		449		238	-28.3%		1,283		1,245	-3.0%
Group Protection		(115)		(41)		59		37		47	140.9%		(127)		102	180.3%
Retirement Plan Services		57		55		54		52		49	-14.0%		235		209	-11.1%
Other Operations		(68)		(80)		(92)		(113)		(210)	NM		(375)		(495)	-32.0%
Adjusted income (loss) from operations	$	286	$	294	$	391	$	(1,735)	$	170	-40.6%	$	1,551	$	(880)	NM
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Sources of Earnings, Pre-Tax
Investment spread	$	113	$	99	$	128	$	(919)	$	99	-12.4%	$	624	$	(593)	NM
Mortality/morbidity		(81)		(11)		150		(1,620)		85	204.9%		199		(1,396)	NM
Fees on AUM		355		325		305		221		254	-28.5%		1,428		1,107	-22.5%
VA riders		23		15		(11)		215		1	-95.7%		54		220	NM
Total sources of earnings, before income taxes		410		428		572		(2,103)		439	7.1%		2,305		(662)	NM
Other Operations		(90)		(95)		(109)		(140)		(266)	NM		(481)		(612)	-27.2%
Adjusted income (loss) from operations, before
income taxes	$	320	$	333	$	463	$	(2,243)	$	173	-45.9%	$	1,824	$	(1,274)	NM
Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		27.6%		23.2%		22.3%		-43.7%		22.4%			27.1%		-89.5%
Mortality/morbidity		-19.7%		-2.6%		26.2%		-77.1%		19.4%			8.6%		-210.7%
Fees on AUM		86.5%		76.0%		53.3%		10.5%		57.9%			62.0%		166.9%
VA riders		5.6%		3.4%		-1.8%		10.3%		0.3%			2.3%		33.3%
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 Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Life Insurance
Operating revenues	$	1,844	$	1,825	$	1,800	$	1,762	$	1,769	-4.1%	$	8,137	$	7,156	-12.1%
Deposits		1,872		1,334		1,439		1,386		1,575	-15.9%		5,693		5,735	0.7%
Net flows		1,438		883		1,038		978		1,100	-23.5%		3,982		3,998	0.4%
Average account values, net of reinsurance		51,067		51,236		49,380		47,742		47,993	-6.0%		56,943		49,088	-13.8%
Average in-force face amount		959,478		985,286		1,010,659		1,037,952		1,061,415	10.6%		928,037		1,023,828	10.3%
Annuities
Operating revenues	$	1,282	$	1,232	$	1,169	$	1,183	$	1,190	-7.2%	$	5,002	$	4,774	-4.6%
Deposits		3,011		2,705		2,702		3,262		3,210	6.6%		11,740		11,879	1.2%
Net flows		(655)		(553)		(318)		319		137	120.9%		(2,569)		(415)	83.8%
Average account values, net of reinsurance		170,953		163,628		152,025		147,049		144,302	-15.6%		166,691		151,796	-8.9%
Group Protection
Operating revenues	$	1,252	$	1,303	$	1,323	$	1,333	$	1,344	7.3%	$	4,996	$	5,303	6.1%
Insurance premiums		1,117		1,169		1,187		1,200		1,213	8.6%		4,450		4,768	7.1%
Retirement Plan Services
Operating revenues	$	335	$	318	$	315	$	316	$	324	-3.3%	$	1,324	$	1,273	-3.9%
Deposits		3,000		3,367		2,943		2,799		2,777	-7.4%		10,840		11,886	9.6%
Net flows		(380)		946		913		811		235	161.8%		464		2,905	NM
Average account values		98,008		95,843		90,628		88,194		87,985	-10.2%		94,649		90,973	-3.9%
Consolidated
Adjusted operating revenues (1)	$	4,769	$	4,718	$	4,641	$	4,630	$	4,676	-2.0%	$	19,639	$	18,665	-5.0%
Deposits		7,883		7,406		7,084		7,447		7,562	-4.1%		28,273		29,500	4.3%
Net flows		403		1,276		1,633		2,108		1,472	265.3%		1,877		6,488	245.7%
Average account values, net of reinsurance		320,028		310,707		292,033		282,985		280,280	-12.4%		318,283		291,857	-8.3%
(1) See reconciliation to total revenues on page 25.
Page 8

Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Sales
Life Insurance:
IUL/UL	$	42	$	26	$	27	$	40	$	41	-2.4%	$	104	$	135	29.8%
MoneyGuard®		36		22		24		22		26	-27.8%		101		94	-6.9%
VUL		92		34		44		36		49	-46.7%		181		163	-9.9%
Term		47		43		48		47		39	-17.0%		152		177	16.4%
Executive Benefits		37		30		50		26		31	-16.2%		122		136	11.5%
Total Life Insurance	$	254	$	155	$	193	$	171	$	186	-26.8%	$	660	$	705	6.8%
Annuities:
Indexed variable	$	977	$	1,048	$	1,220	$	1,246	$	1,211	24.0%	$	4,910	$	4,726	-3.7%
Other variable without GLBs		787		605		422		374		303	-61.5%		2,818		1,701	-39.6%
Other variable with GLBs		834		678		536		475		432	-48.2%		2,988		2,121	-29.0%
Total variable		2,598		2,331		2,178		2,095		1,946	-25.1%		10,716		8,548	-20.2%
Fixed		413		374		524		1,167		1,264	206.1%		1,024		3,331	225.3%
Total Annuities	$	3,011	$	2,705	$	2,702	$	3,262	$	3,210	6.6%	$	11,740	$	11,879	1.2%
Percent with GLBs		27.7%		25.1%		19.8%		14.6%		13.5%			25.5%		17.9%
Percent with GLBs, including the impact of VA reinsurance		20.8%		17.9%		14.0%		11.4%		11.0%			19.8%		13.3%
Group Protection:
Life	$	163	$	53	$	62	$	41	$	141	-13.5%	$	264	$	299	13.3%
Disability		199		47		59		37		195	-2.0%		284		337	18.7%
Dental		23		5		6		10		20	-13.0%		38		40	5.3%
Total Group Protection	$	385	$	105	$	127	$	88	$	356	-7.5%	$	586	$	676	15.4%
Percent employee-paid		35.0%		57.0%		48.5%		49.4%		35.7%			43.1%		43.2%
Retirement Plan Services:
First-year sales	$	1,270	$	1,198	$	1,210	$	991	$	1,059	-16.6%	$	3,810	$	4,458	17.0%
Recurring deposits		1,730		2,169		1,733		1,808		1,718	-0.7%		7,030		7,428	5.7%
Total Retirement Plan Services	$	3,000	$	3,367	$	2,943	$	2,799	$	2,777	-7.4%	$	10,840	$	11,886	9.6%
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 Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Operating Revenues
Life Insurance	$	1,844	$	1,825	$	1,800	$	1,762	$	1,769	-4.1%	$	8,137	$	7,156	-12.1%
Annuities		1,282		1,232		1,169		1,183		1,190	-7.2%		5,002		4,774	-4.6%
Group Protection		1,252		1,303		1,323		1,333		1,344	7.3%		4,996		5,303	6.1%
Retirement Plan Services		335		318		315		316		324	-3.3%		1,324		1,273	-3.9%
Other Operations		56		40		34		36		49	-12.5%		180		159	-11.7%
Total segment operating revenues	$	4,769	$	4,718	$	4,641	$	4,630	$	4,676	-2.0%	$	19,639	$	18,665	-5.0%
General and Administrative Expenses,
Net of Amounts Capitalized (1)
Life Insurance	$	138	$	117	$	115	$	132	$	123	-10.9%	$	503	$	488	-3.0%
Annuities		125		112		108		118		110	-12.0%		477		448	-6.1%
Group Protection		177		165		166		182		173	-2.3%		659		686	4.1%
Retirement Plan Services		80		69		69		75		75	-6.3%		293		288	-1.7%
Other Operations		52		48		48		70		212	NM		285		377	32.3%
Total	$	572	$	511	$	506	$	577	$	693	21.2%	$	2,217	$	2,287	3.2%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Life Insurance		7.5%		6.4%		6.4%		7.5%		7.0%			6.2%		6.8%
Annuities		9.7%		9.1%		9.3%		10.0%		9.3%			9.5%		9.4%
Group Protection		14.1%		12.7%		12.5%		13.7%		12.9%			13.2%		12.9%
Retirement Plan Services		23.8%		21.7%		21.8%		23.7%		23.3%			22.1%		22.7%
Other Operations		96.8%		116.6%		141.5%		195.3%		437.1%			159.0%		237.7%
Total		12.0%		10.8%		10.9%		12.5%		14.8%			11.3%		12.3%
(1) See page 11 for general and administrative expenses capitalized.
Page 10

Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	642	$	562	$	559	$	634	$	751	17.0%	$	2,440	$	2,505	2.7%
Commissions		760		654		656		659		654	-13.9%		2,684		2,623	-2.3%
Taxes, licenses and fees		89		98		83		82		86	-3.4%		341		349	2.3%
Interest and debt expense		66		66		68		71		77	16.7%		262		283	8.0%
Expenses associated with reserve financing
and letters of credit		26		26		27		27		28	7.7%		102		108	5.9%
Total adjusted operating commissions and other
expenses incurred		1,583		1,406		1,393		1,473		1,596	0.8%		5,829		5,868	0.7%
Less Amounts Capitalized
General and administrative expenses		(70)		(51)		(53)		(57)		(58)	17.1%		(223)		(218)	2.2%
Commissions		(361)		(265)		(281)		(283)		(288)	20.2%		(1,106)		(1,117)	-1.0%
Taxes, licenses and fees		(15)		(11)		(10)		(9)		(10)	33.3%		(44)		(40)	9.1%
Total amounts capitalized		(446)		(327)		(344)		(349)		(356)	20.2%		(1,373)		(1,375)	-0.1%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,137		1,079		1,049		1,124		1,240	9.1%		4,456		4,493	0.8%
Amortization
Amortization of DAC, VOBA and other intangibles		263		289		250		381		238	-9.5%		1,647		1,157	-29.8%
Total operating commissions and other expenses	$	1,400	$	1,368	$	1,299	$	1,505	$	1,478	5.6%	$	6,103	$	5,650	-7.4%
Page 11

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Life Insurance – Interest-Sensitive
Earned rate on reserves		4.67%		4.60%		4.50%		4.49%		4.47%	(20)		4.68%		4.52%	(16)
Variable investment income on reserves (1)		0.85%		0.54%		0.36%		-0.35%		0.12%	(73)		1.13%		0.16%	(97)
Net investment income yield on reserves		5.52%		5.14%		4.86%		4.14%		4.59%	(93)		5.81%		4.68%	(113)
Interest rate credited to contract holders		3.76%		3.77%		3.74%		3.79%		3.75%	(1)		3.77%		3.77%	-
Interest rate spread		1.76%		1.37%		1.12%		0.35%		0.84%	(92)		2.04%		0.91%	(113)
Base spreads excluding alternative investments		1.12%		1.06%		0.99%		0.93%		0.95%	(17)		1.08%		0.98%	(10)
Base spreads assuming 10% annualized yield on alternative
investments		1.35%		1.30%		1.25%		1.19%		1.22%	(13)		1.27%		1.23%	(4)
Annuities
Earned rate on reserves		3.06%		2.99%		3.09%		3.25%		3.59%	53		3.12%		3.24%	12
Variable investment income on reserves (1)		0.31%		0.23%		0.11%		0.01%		0.02%	(29)		0.24%		0.09%	(15)
Net investment income yield on reserves		3.37%		3.22%		3.20%		3.26%		3.61%	24		3.36%		3.33%	(3)
Interest rate credited to contract holders		1.82%		1.85%		1.90%		1.93%		2.09%	27		1.93%		1.94%	1
Interest rate spread		1.55%		1.37%		1.30%		1.33%		1.52%	(3)		1.43%		1.39%	(4)
Base spreads excluding variable investment income		1.24%		1.14%		1.19%		1.32%		1.50%	26		1.19%		1.30%	11
Retirement Plan Services
Earned rate on reserves		3.51%		3.45%		3.49%		3.62%		3.74%	23		3.58%		3.58%	-
Variable investment income on reserves (1)		0.39%		0.19%		0.14%		0.03%		0.01%	(38)		0.25%		0.09%	(16)
Net investment income yield on reserves		3.90%		3.64%		3.63%		3.65%		3.75%	(15)		3.83%		3.67%	(16)
Interest rate credited to contract holders		2.63%		2.55%		2.55%		2.57%		2.56%	(7)		2.66%		2.56%	(10)
Interest rate spread		1.27%		1.09%		1.08%		1.08%		1.19%	(8)		1.17%		1.11%	(6)
Base spreads excluding variable investment income		0.88%		0.90%		0.94%		1.05%		1.18%	30		0.92%		1.02%	10
Total (2)
Earned rate (3)		3.80%		3.80%		3.77%		3.96%		3.96%	16		3.92%		3.87%	(5)
Variable investment income (1) (3)		0.53%		0.36%		0.22%		-0.14%		0.06%	(47)		0.66%		0.13%	(53)
Net investment income yield (3)		4.33%		4.16%		3.99%		3.82%		4.02%	(31)		4.58%		4.00%	(58)
(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
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	266	$	277	$	283	$	289	$	297	11.7%	$	1,033	$	1,146	10.9%
Fee income		848		846		840		876		813	-4.1%		3,863		3,374	-12.7%
Net investment income		716		688		665		586		646	-9.8%		3,209		2,585	-19.4%
Operating realized gain (loss)		(4)		1		(2)		(3)		(3)	25.0%		(9)		(6)	33.3%
Amortization of deferred gain on
business sold through reinsurance		13		12		12		12		12	-7.7%		20		49	145.0%
Other revenues		5		1		2		2		4	-20.0%		21		8	-61.9%
Total operating revenues		1,844		1,825		1,800		1,762		1,769	-4.1%		8,137		7,156	-12.1%
Operating expenses:
Interest credited		322		325		329		329		325	0.9%		1,439		1,307	-9.2%
Benefits		1,126		1,126		1,041		3,736		1,116	-0.9%		4,275		7,020	64.2%
Commissions incurred		236		156		176		177		189	-19.9%		639		698	9.2%
Other expenses incurred		234		202		199		208		210	-10.3%		838		818	-2.4%
Amounts capitalized		(276)		(182)		(204)		(202)		(217)	21.4%		(745)		(805)	-8.1%
Amortization		105		133		120		257		95	-9.5%		1,034		605	-41.5%
Total operating expenses		1,747		1,760		1,661		4,505		1,718	-1.7%		7,480		9,643	28.9%
Income (loss) from operations before taxes		97		65		139		(2,743)		51	-47.4%		657		(2,487)	NM
Federal income tax expense (benefit)		17		7		25		(583)		5	-70.6%		122		(546)	NM
Income (loss) from operations	$	80	$	58	$	114	$	(2,160)	$	46	-42.5%	$	535	$	(1,941)	NM
Effective Federal Income Tax Rate		17.1%		11.3%		17.6%		21.3%		9.9%			18.6%		22.0%
Average Equity, Excluding Goodwill and AOCI	$	8,971	$	8,831	$	9,294	$	8,213	$	7,342	-18.2%	$	9,040	$	8,420	-6.9%
ROE, Excluding Goodwill and AOCI		3.6%		2.6%		4.9%		NM		2.5%			5.9%		-23.1%
Average Account Values, Net of Reinsurance	$	51,067	$	51,236	$	49,380	$	47,742	$	47,993	-6.0%	$	56,943	$	49,088	-13.8%
In-Force Face Amount
UL and other	$	362,106	$	361,490	$	361,565	$	362,098	$	363,884	0.5%	$	362,106	$	363,884	0.5%
Term insurance		611,854		635,123		663,140		689,101		707,747	15.7%		611,854		707,747	15.7%
Total in-force face amount	$	973,960	$	996,613	$	1,024,705	$	1,051,199	$	1,071,631	10.0%	$	973,960	$	1,071,631	10.0%
Page 13

Lincoln Financial Group
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	27	$	30	$	25	$	57	$	52	92.6%	$	116	$	165	42.2%
Fee income		702		658		611		590		574	-18.2%		2,724		2,434	-10.6%
Net investment income		349		360		337		379		385	10.3%		1,401		1,461	4.3%
Operating realized gain (loss)		55		54		51		52		50	-9.1%		208		207	-0.5%
Amortization of deferred gain		7		6		6		6		6	-14.3%		26		25	-3.8%
Other revenues		142		124		139		99		123	-13.4%		527		482	-8.5%
Total operating revenues		1,282		1,232		1,169		1,183		1,190	-7.2%		5,002		4,774	-4.6%
Operating expenses:
Interest credited		203		207		214		224		249	22.7%		811		894	10.2%
Benefits		138		152		180		(56)		190	37.7%		548		468	-14.6%
Commissions incurred		287		268		257		255		240	-16.4%		1,136		1,020	-10.2%
Other expenses incurred		280		260		243		251		239	-14.6%		1,056		993	-6.0%
Amounts capitalized		(132)		(118)		(110)		(117)		(103)	22.0%		(515)		(449)	12.8%
Amortization		115		112		90		92		103	-10.4%		442		396	-10.4%
Total operating expenses		891		881		874		649		918	3.0%		3,478		3,322	-4.5%
Income (loss) from operations before taxes		391		351		295		534		272	-30.4%		1,524		1,452	-4.7%
Federal income tax expense (benefit)		59		49		39		85		34	-42.4%		241		207	-14.1%
Income (loss) from operations	$	332	$	302	$	256	$	449	$	238	-28.3%	$	1,283	$	1,245	-3.0%
Effective Federal Income Tax Rate		15.1%		14.0%		13.1%		15.9%		12.5%			15.8%		14.2%
Average Equity, Excluding Goodwill and AOCI	$	5,310	$	5,298	$	5,665	$	6,266	$	6,321	19.0%	$	5,185	$	5,887	13.5%
ROE, Excluding Goodwill and AOCI		25.0%		22.8%		18.1%		28.7%		15.1%			24.7%		21.2%
Return on Average Account Values		78		74		67		122		66	(12)		77		82	5
Income (Loss) from Operations
Variable annuity		295		269		230		401		205	-30.5%		1,135		1,105	-2.6%
Fixed annuity		37		33		26		48		33	-10.8%		148		140	-5.4%
Account Values, Net of Reinsurance – End of Period
Variable account values without GLBs	$	69,625	$	66,584	$	59,163	$	57,749	$	61,911	-11.1%	$	69,625	$	61,911	-11.1%
Variable account values with GLBs		86,234		78,837		68,468		64,057		65,877	-23.6%		86,234		65,877	-23.6%
Fixed account values		16,866		16,723		16,621		16,974		17,177	1.8%		16,866		17,177	1.8%
Total account values		172,725		162,144		144,252		138,780		144,965	-16.1%		172,725		144,965
Percent variable account values with GLBs		49.9%		48.6%		47.5%		46.2%		45.4%			49.9%		45.4%
Page 14

Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,117	$	1,169	$	1,187	$	1,200	$	1,213	8.6%	$	4,450	$	4,768	7.1%
Net investment income		90		85		86		83		79	-12.2%		366		333	-9.0%
Other revenues		45		49		50		50		52	15.6%		180		202	12.2%
Total operating revenues		1,252		1,303		1,323		1,333		1,344	7.3%		4,996		5,303	6.1%
Operating expenses:
Interest credited		2		1		2		1		1	-50.0%		6		5	-16.7%
Benefits		1,072		1,027		926		939		953	-11.1%		3,890		3,844	-1.2%
Commissions incurred		95		94		96		101		103	8.4%		361		394	9.1%
Other expenses incurred		225		217		214		235		223	-0.9%		851		892	4.8%
Amounts capitalized		(30)		(21)		(24)		(23)		(29)	3.3%		(91)		(99)	-8.8%
Amortization		34		37		34		34		34	0.0%		139		138	-0.7%
Total operating expenses		1,398		1,355		1,248		1,287		1,285	-8.1%		5,156		5,174	0.3%
Income (loss) from operations before taxes		(146)		(52)		75		46		59	140.4%		(160)		129	180.6%
Federal income tax expense (benefit)		(31)		(11)		16		9		12	138.7%		(33)		27	181.8%
Income (loss) from operations	$	(115)	$	(41)	$	59	$	37	$	47	140.9%	$	(127)	$	102	180.3%
Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%			21.0%		21.0%
Average Equity, Excluding Goodwill and AOCI	$	2,810	$	2,899	$	2,988	$	3,012	$	2,888	2.8%	$	2,755	$	2,947	7.0%
ROE, Excluding Goodwill and AOCI		-16.4%		-5.6%		7.9%		4.9%		6.5%			-4.6%		3.5%
Loss Ratios by Product Line
Life		108.7%		91.0%		80.5%		71.6%		74.6%			98.6%		79.4%
Disability		90.2%		87.2%		76.7%		83.2%		81.7%			81.4%		82.2%
Dental		71.1%		71.1%		76.9%		72.0%		74.0%			76.3%		73.5%
Total		96.1%		88.0%		78.2%		78.3%		78.7%			87.5%		80.7%
Page 15

Lincoln Financial Group
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	76	$	70	$	65	$	64	$	63	-17.1%	$	296	$	261	-11.8%
Net investment income		250		238		241		244		252	0.8%		992		975	-1.7%
Other revenues		9		10		9		8		9	0.0%		36		37	2.8%
Total operating revenues		335		318		315		316		324	-3.3%		1,324		1,273	-3.9%
Operating expenses:
Interest credited		154		152		156		161		161	4.5%		617		630	2.1%
Benefits		1		1		1		1		1	0.0%		3		3	0.0%
Commissions incurred		21		20		18		20		21	0.0%		84		79	-6.0%
Other expenses incurred		89		79		76		82		83	-6.7%		326		320	-1.8%
Amounts capitalized		(7)		(5)		(5)		(6)		(5)	28.6%		(22)		(21)	4.5%
Amortization		9		7		6		(2)		6	-33.3%		32		18	-43.8%
Total operating expenses		267		254		252		256		267	0.0%		1,040		1,029	-1.1%
Income (loss) from operations before taxes		68		64		63		60		57	-16.2%		284		244	-14.1%
Federal income tax expense (benefit)		11		9		9		8		8	-27.3%		49		35	-28.6%
Income (loss) from operations	$	57	$	55	$	54	$	52	$	49	-14.0%	$	235	$	209	-11.1%
Effective Federal Income Tax Rate		16.3%		13.7%		15.5%		13.2%		14.6%			17.2%		14.3%
Average Equity, Excluding Goodwill and AOCI	$	1,477	$	1,534	$	1,618	$	1,696	$	1,697	14.9%	$	1,507	$	1,636	8.6%
ROE, Excluding Goodwill and AOCI		15.4%		14.4%		13.3%		12.2%		11.5%			15.6%		12.8%
Return on Average Account Values		23		23		24		24		22	(1)		25		23	(2)
Pre-tax Net Margin		37.6%		38.6%		39.8%		38.5%		35.0%			40.2%		38.0%
Net Flows by Market
Small Market	$	98	$	(116)	$	80	$	157	$	174	77.6%	$	133	$	295	121.8%
Mid - Large Market		(58)		1,350		1,074		906		482	NM		1,800		3,811	111.7%
Multi-Fund® and Other		(420)		(288)		(241)		(252)		(421)	-0.2%		(1,469)		(1,201)	18.2%
Net Flows – Trailing Twelve Months	$	464	$	1,062	$	1,458	$	2,290	$	2,905	NM	$	464	$	2,905	NM
Page 16

Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	10	$	1	$	3	$	2	$	2	-80.0%	$	19	$	8	-57.9%
Net investment income		40		41		40		34		41	2.5%		147		157	6.8%
Other revenues		6		(2)		(9)		-		6	0.0%		14		(6)	NM
Total operating revenues		56		40		34		36		49	-12.5%		180		159	-11.7%
Operating expenses:
Interest credited		10		12		9		9		8	-20.0%		42		39	-7.1%
Benefits		21		14		21		24		21	0.0%		81		79	-2.5%
Commissions and other expenses		19		12		2		28		160	NM		189		203	7.4%
Interest and debt expense		66		66		68		71		77	16.7%		262		283	8.0%
Spark program expense		30		31		43		44		49	63.3%		87		167	92.0%
Total operating expenses		146		135		143		176		315	115.8%		661		771	16.6%
Income (loss) from operations before taxes		(90)		(95)		(109)		(140)		(266)	NM		(481)		(612)	-27.2%
Federal income tax expense (benefit)		(22)		(15)		(17)		(27)		(56)	NM		(106)		(117)	-10.4%
Income (loss) from operations	$	(68)	$	(80)	$	(92)	$	(113)	$	(210)	NM	$	(375)	$	(495)	-32.0%
Page 17

Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	6,169	$	6,284	$	9,020	$	12,087	$	13,896	125.3%	$	6,025	$	6,284	4.3%
Business acquired (sold) through reinsurance		(650)		-		-		-		-	100.0%		(650)		-	100.0%
Deferrals		446		328		345		350		357	-20.0%		1,378		1,380	0.1%
Operating amortization		(259)		(284)		(245)		(375)		(234)	9.7%		(1,637)		(1,139)	30.4%
Deferrals, net of operating amortization		187		44		100		(25)		123	-34.2%		(259)		241	193.1%
Amortization associated with benefit ratio unlocking		(11)		36		64		35		(22)	-100.0%		(23)		113	NM
Adjustment related to realized (gains) losses		36		(37)		(131)		(35)		69	91.7%		86		(133)	NM
Adjustment related to unrealized (gains) losses		553		2,693		3,034		1,834		(263)	NM		1,105		7,298	NM
Balance as of end-of-period	$	6,284	$	9,020	$	12,087	$	13,896	$	13,803	119.7%	$	6,284	$	13,803	119.7%
DFEL
Balance as of beginning-of-period	$	396	$	415	$	1,363	$	4,097	$	5,752	NM	$	401	$	415	3.5%
Business acquired (sold) through reinsurance		(290)		-		-		-		-	100.0%		(290)		-	100.0%
Deferrals		294		256		270		273		284	-3.4%		1,015		1,083	6.7%
Operating amortization		(147)		(151)		(145)		(190)		(143)	2.7%		(979)		(629)	35.8%
Deferrals, net of operating amortization		147		105		125		83		141	-4.1%		36		454	NM
Amortization associated with benefit ratio unlocking		(1)		6		10		3		(3)	NM		(3)		15	NM
Adjustment related to realized (gains) losses		(1)		(6)		(12)		(18)		(1)	0.0%		(10)		(35)	NM
Adjustment related to unrealized (gains) losses		164		843		2,611		1,587		(220)	NM		281		4,820	NM
Balance as of end-of-period	$	415	$	1,363	$	4,097	$	5,752	$	5,669	NM	$	415	$	5,669	NM
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	4,637	$	6,049	$	6,312	$	6,434	$	6,426	38.6%	$	4,637	$	6,426	38.6%
Page 18

Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
General Account
Balance as of beginning-of-period	$	37,969	$	38,094	$	37,921	$	37,817	$	37,701	-0.7%	$	38,136	$	38,094	-0.1%
Deposits		1,050		878		880		925		1,001	-4.7%		3,738		3,685	-1.4%
Withdrawals and deaths		(213)		(315)		(226)		(271)		(253)	-18.8%		(988)		(1,067)	-8.0%
Net flows		837		563		654		654		748	-10.6%		2,750		2,618	-4.8%
Contract holder assessments		(1,107)		(1,131)		(1,096)		(1,101)		(1,113)	-0.5%		(4,343)		(4,440)	-2.2%
Reinvested interest credited		395		395		338		331		334	-15.4%		1,551		1,398	-9.9%
Balance as of end-of-period, gross		38,094		37,921		37,817		37,701		37,670	-1.1%		38,094		37,670	-1.1%
Reinsurance ceded		(5,562)		(5,544)		(5,549)		(5,533)		(5,512)	0.9%		(5,562)		(5,512)	0.9%
Balance as of end-of-period, net	$	32,532	$	32,377	$	32,268	$	32,168	$	32,158	-1.1%	$	32,532	$	32,158	-1.1%
Separate Account
Balance as of beginning-of-period	$	23,250	$	24,907	$	23,464	$	20,363	$	19,392	-16.6%	$	21,078	$	24,907	18.2%
Deposits		822		456		559		461		574	-30.2%		1,955		2,050	4.9%
Withdrawals and deaths		(221)		(136)		(175)		(137)		(222)	-0.5%		(723)		(670)	7.3%
Net flows		601		320		384		324		352	-41.4%		1,232		1,380	12.0%
Contract holder assessments		(247)		(218)		(230)		(231)		(241)	2.4%		(858)		(921)	-7.3%
Change in market value and reinvestment		1,303		(1,545)		(3,255)		(1,064)		1,394	7.0%		3,455		(4,469)	NM
Balance as of end-of-period, gross		24,907		23,464		20,363		19,392		20,897	-16.1%		24,907		20,897	-16.1%
Reinsurance ceded		(5,593)		(5,215)		(4,498)		(4,209)		(4,421)	21.0%		(5,593)		(4,421)	21.0%
Balance as of end-of-period, net	$	19,314	$	18,249	$	15,865	$	15,183	$	16,476	-14.7%	$	19,314	$	16,476	-14.7%
Total
Balance as of beginning-of-period	$	61,219	$	63,001	$	61,385	$	58,180	$	57,093	-6.7%	$	59,214	$	63,001	6.4%
Deposits		1,872		1,334		1,439		1,386		1,575	-15.9%		5,693		5,735	0.7%
Withdrawals and deaths		(434)		(451)		(401)		(408)		(475)	-9.4%		(1,711)		(1,737)	-1.5%
Net flows		1,438		883		1,038		978		1,100	-23.5%		3,982		3,998	0.4%
Contract holder assessments		(1,354)		(1,349)		(1,326)		(1,332)		(1,354)	0.0%		(5,201)		(5,361)	-3.1%
Change in market value and reinvestment		1,698		(1,150)		(2,917)		(733)		1,728	1.8%		5,006		(3,071)	NM
Balance as of end-of-period, gross		63,001		61,385		58,180		57,093		58,567	-7.0%		63,001		58,567	-7.0%
Reinsurance ceded		(11,155)		(10,759)		(10,047)		(9,742)		(9,933)	11.0%		(11,155)		(9,933)	11.0%
Balance as of end-of-period, net	$	51,846	$	50,626	$	48,133	$	47,351	$	48,634	-6.2%	$	51,846	$	48,634	-6.2%
Page 19

Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Fixed Annuities
Balance as of beginning-of-period	$	24,642	$	24,728	$	24,475	$	24,253	$	24,836	0.8%	$	25,405	$	24,728	-2.7%
Gross deposits		413		374		524		1,167		1,264	206.1%		1,024		3,331	225.3%
Full surrenders and deaths		(415)		(420)		(457)		(489)		(547)	-31.8%		(1,879)		(1,913)	-1.8%
Other contract benefits		(198)		(171)		(176)		(167)		(208)	-5.1%		(617)		(722)	-17.0%
Net flows		(200)		(217)		(109)		511		509	NM		(1,472)		696	147.3%
Contract holder assessments		(17)		(15)		(12)		(10)		(12)	29.4%		(84)		(51)	39.3%
Reinvested interest credited		303		(21)		(101)		82		223	-26.4%		879		183	-79.2%
Balance as of end-of-period, gross		24,728		24,475		24,253		24,836		25,556	3.3%		24,728		25,556	3.3%
Reinsurance ceded		(7,862)		(7,752)		(7,632)		(7,862)		(8,379)	-6.6%		(7,862)		(8,379)	-6.6%
Balance as of end-of-period, net	$	16,866	$	16,723	$	16,621	$	16,974	$	17,177	1.8%	$	16,866	$	17,177	1.8%
Variable Annuities
Balance as of beginning-of-period	$	149,550	$	155,866	$	145,428	$	127,639	$	121,814	-18.5%	$	140,313	$	155,866	11.1%
Gross deposits		2,598		2,331		2,178		2,095		1,946	-25.1%		10,716		8,548	-20.2%
Full surrenders and deaths		(1,858)		(1,567)		(1,366)		(1,302)		(1,210)	34.9%		(7,505)		(5,444)	27.5%
Other contract benefits		(1,195)		(1,100)		(1,021)		(985)		(1,108)	7.3%		(4,308)		(4,215)	2.2%
Net flows		(455)		(336)		(209)		(192)		(372)	18.2%		(1,097)		(1,111)	-1.3%
Contract holder assessments		(727)		(692)		(655)		(638)		(619)	14.9%		(2,839)		(2,605)	8.2%
Change in market value and reinvestment		7,498		(9,410)		(16,925)		(4,995)		6,973	-7.0%		19,489		(24,354)	NM
Balance as of end-of-period, gross		155,866		145,428		127,639		121,814		127,796	-18.0%		155,866		127,796	-18.0%
Reinsurance ceded		(7)		(7)		(8)		(8)		(8)	-14.3%		(7)		(8)	-14.3%
Balance as of end-of-period, net	$	155,859	$	145,421	$	127,631	$	121,806	$	127,788	-18.0%	$	155,859	$	127,788	-18.0%
Total
Balance as of beginning-of-period	$	174,192	$	180,594	$	169,903	$	151,892	$	146,650	-15.8%	$	165,718	$	180,594	9.0%
Gross deposits		3,011		2,705		2,702		3,262		3,210	6.6%		11,740		11,879	1.2%
Full surrenders and deaths		(2,273)		(1,987)		(1,823)		(1,791)		(1,757)	22.7%		(9,384)		(7,357)	21.6%
Other contract benefits		(1,393)		(1,271)		(1,197)		(1,152)		(1,316)	5.5%		(4,925)		(4,937)	-0.2%
Net flows		(655)		(553)		(318)		319		137	120.9%		(2,569)		(415)	83.8%
Contract holder assessments		(744)		(707)		(667)		(648)		(631)	15.2%		(2,923)		(2,656)	9.1%
Change in market value and reinvestment		7,801		(9,431)		(17,026)		(4,913)		7,196	-7.8%		20,368		(24,171)	NM
Balance as of end-of-period, gross		180,594		169,903		151,892		146,650		153,352	-15.1%		180,594		153,352	-15.1%
Reinsurance ceded		(7,869)		(7,759)		(7,640)		(7,870)		(8,387)	-6.6%		(7,869)		(8,387)	-6.6%
Balance as of end-of-period, net	$	172,725	$	162,144	$	144,252	$	138,780	$	144,965	-16.1%	$	172,725	$	144,965	-16.1%
Page 20

Lincoln Financial Group
Retirement Plan Services – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
General Account
Balance as of beginning-of-period	$	23,152	$	23,639	$	23,958	$	24,917	$	25,272	9.2%	$	22,916	$	23,639	3.2%
Gross deposits		908		572		1,132		702		590	-35.0%		2,325		2,996	28.9%
Withdrawals		(631)		(554)		(485)		(575)		(738)	-17.0%		(2,451)		(2,352)	4.0%
Net flows		277		18		647		127		(148)	NM		(126)		644	NM
Transfers between fixed and variable accounts		59		154		160		69		(145)	NM		247		238	-3.6%
Contract holder assessments		(4)		(3)		(3)		(3)		(3)	25.0%		(14)		(13)	7.1%
Reinvestment interest credited		155		150		155		162		161	3.9%		616		629	2.1%
Balance as of end-of-period	$	23,639	$	23,958	$	24,917	$	25,272	$	25,137	6.3%	$	23,639	$	25,137	6.3%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	72,454	$	75,475	$	71,385	$	61,789	$	59,072	-18.5%	$	65,391	$	75,475	15.4%
Gross deposits		2,092		2,795		1,811		2,097		2,187	4.5%		8,515		8,890	4.4%
Withdrawals		(2,749)		(1,867)		(1,545)		(1,413)		(1,804)	34.4%		(7,925)		(6,629)	16.4%
Net flows		(657)		928		266		684		383	158.3%		590		2,261	283.2%
Transfers between fixed and variable accounts		(77)		(230)		(9)		(41)		(57)	26.0%		(417)		(337)	19.2%
Contract holder assessments		(67)		(64)		(60)		(57)		(57)	14.9%		(260)		(238)	8.5%
Change in market value and reinvestment		3,822		(4,724)		(9,793)		(3,303)		4,257	11.4%		10,171		(13,563)	NM
Balance as of end-of-period	$	75,475	$	71,385	$	61,789	$	59,072	$	63,598	-15.7%	$	75,475	$	63,598	-15.7%
Total
Balance as of beginning-of-period	$	95,606	$	99,114	$	95,343	$	86,706	$	84,344	-11.8%	$	88,307	$	99,114	12.2%
Gross deposits		3,000		3,367		2,943		2,799		2,777	-7.4%		10,840		11,886	9.6%
Withdrawals		(3,380)		(2,421)		(2,030)		(1,988)		(2,542)	24.8%		(10,376)		(8,981)	13.4%
Net flows		(380)		946		913		811		235	161.8%		464		2,905	NM
Transfers between fixed and variable accounts		(18)		(76)		151		28		(202)	NM		(170)		(99)	41.8%
Contract holder assessments		(71)		(67)		(63)		(60)		(60)	15.5%		(274)		(251)	8.4%
Change in market value and reinvestment		3,977		(4,574)		(9,638)		(3,141)		4,418	11.1%		10,787		(12,934)	NM
Balance as of end-of-period	$	99,114	$	95,343	$	86,706	$	84,344	$	88,735	-10.5%	$	99,114	$	88,735	-10.5%
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Lincoln Financial Group
Fixed-Income Asset Class
Unaudited (millions of dollars)
	As of 12/31/21				As of 12/31/22
	Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost
Industry corporate bonds:
Financial services	$	16,438		15.6%	$	17,762		15.9%
Basic industry		4,436		4.2%		4,353		3.9%
Capital goods		7,316		7.0%		7,374		6.6%
Communications		4,124		3.9%		4,239		3.8%
Consumer cyclical		5,811		5.5%		6,056		5.4%
Consumer non-cyclical		16,905		16.1%		17,080		15.3%
Energy		4,932		4.7%		4,776		4.3%
Technology		5,173		4.9%		5,581		5.0%
Transportation		3,414		3.2%		3,665		3.3%
Industrial other		2,159		2.1%		2,330		2.1%
Utilities		13,785		13.0%		14,204		12.8%
Government-related entities		1,863		1.8%		1,820		1.6%
Residential mortgage-backed securities ("RMBS")
Agency backed		1,973		1.9%		1,845		1.7%
Non-agency backed		360		0.3%		364		0.3%
Commercial mortgage-backed securities ("CMBS")		1,552		1.5%		1,917		1.7%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")		6,356		6.0%		8,498		7.6%
Other ABS		2,083		2.0%		3,294		2.9%
Municipals		5,322		5.1%		5,410		4.8%
Government:
United States		375		0.4%		405		0.4%
Foreign		373		0.4%		348		0.3%
Hybrid & redeemable preferred securities		408		0.4%		364		0.3%
Total fixed maturity AFS securities, net of allowance for credit losses, at amortized cost		105,158		100.0%		111,685		100.0%
Trading Securities		4,170				3,833
Equity Securities		285				383
Total fixed maturity AFS, trading and equity securities	$	109,613			$	115,901
Page 22

Lincoln Financial Group
Fixed-Income Credit Quality
Unaudited (millions of dollars)
	As of 12/31/21				As of 12/31/22
	Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost (1)
NAIC 1 (AAA-A)	$	58,542		55.6%	$	63,741		57.1%
NAIC 2 (BBB)		42,797		40.7%		44,103		39.5%
Total investment grade		101,339		96.3%		107,844		96.6%
NAIC 3 (BB)		2,278		2.2%		2,101		1.9%
NAIC 4 (B)		1,424		1.4%		1,679		1.4%
NAIC 5 (CCC and lower)		51		0.0%		59		0.1%
NAIC 6 (in or near default)		66		0.1%		2		0.0%
Total below investment grade		3,819		3.7%		3,841		3.4%
Total	$	105,158		100.0%	$	111,685		100.0%
Commercial Mortgage Loans, at Amortized Cost (1)(2)
CM1 (AAA-A)	$	14,028		81.7%	$	13,361		78.5%
CM2 (BBB)		2,878		16.8%		3,382		19.9%
CM3-7 (BB and lower)		265		1.5%		271		1.6%
Total	$	17,171		100.0%	$	17,014		100.0%
Total Fixed Maturity AFS Securities and Commercial Mortgage Loans, at Amortized Cost (1)(2)
AAA-A	$	72,570		59.3%	$	77,102		59.9%
BBB		45,675		37.3%		47,485		36.9%
BB and lower		4,084		3.4%		4,112		3.2%
Total	$	122,329		100.0%	$	128,699		100.0%
(1) Ratings are based upon the designations determined and provided by the National Association of Insurance Commissioners (“NAIC”) or based upon ratings from credit rating
agencies to derive the NAIC designation.
(2) CM ratings reflect the risk-based capital risk category for commercial mortgage loans.  Letter ratings are assumed NAIC equivalent ratings where NAIC 1 = CM1,  NAIC 2 = CM2
and NAIC 3-6 = CM3-7.
Page 23

Lincoln Financial Group
Realized Gain (Loss), After-DAC
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Components of Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	51	$	55	$	49	$	49	$	47	-7.8%	$	199	$	201	1.0%
Total excluded realized gain (loss)		(166)		(26)		473		171		(482)	NM		(411)		135	132.8%
Total realized gain (loss), pre-tax	$	(115)	$	29	$	522	$	220	$	(435)	NM	$	(212)	$	336	258.5%
Components of Excluded Realized Gain (Loss), After-Tax
Credit loss benefit (expense) on mortgage loans on
real estate	$	26	$	13	$	(5)	$	(7)	$	(8)	NM	$	79	$	(7)	NM
Credit loss benefit (expense) on reinsurance-related assets		6		(3)		(1)		(103)		8	33.3%		2		(99)	NM
Credit loss benefit (expense) on other financial assets		(1)		(1)		(3)		(5)		(4)	NM		(10)		(12)	-20.0%
Realized gain (loss) related to certain financial assets		(6)		(7)		(5)		(40)		(14)	NM		(14)		(67)	NM
Realized gain (loss) on equity securities		4		3		(6)		2		14	250.0%		32		13	-59.4%
Realized gain (loss) on the mark-to-market on certain
instruments		34		(9)		-		48		9	-73.5%		60		48	-20.0%
Total realized gain (loss) related to financial
instruments and reinsurance-related assets		63		(4)		(20)		(105)		5	-92.1%		149		(124)	NM
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged and benefit ratio unlocking		(78)		(247)		(183)		(82)		(76)	2.6%		(109)		(588)	NM
GLB non-performance risk component		(47)		18		74		(11)		(64)	-36.2%		(195)		17	108.7%
Total variable annuity net derivative results		(125)		(229)		(109)		(93)		(140)	-12.0%		(304)		(571)	-87.8%
Indexed annuity forward-starting option		7		43		(3)		2		(37)	NM		26		4	-84.6%
Excluded realized gain (loss), including
benefit ratio unlocking		(55)		(190)		(132)		(196)		(172)	NM		(129)		(691)	NM
Less: benefit ratio unlocking on GDB
and GLB riders		77		(170)		(506)		(330)		209	171.4%		196		(798)	-30.0%
Total excluded realized gain (loss), after-tax	$	(132)	$	(20)	$	374	$	134	$	(381)	NM	$	(325)	$	107	9.1%
Page 24

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended											For the Twelve Months Ended
	12/31/21		3/31/22		6/30/22		9/30/22		12/31/22		Change	12/31/21		12/31/22		Change
Revenues
Total revenues	$	4,604	$	4,687	$	5,104	$	4,798	$	4,196	-8.9%	$	19,230	$	18,784	-2.3%
Less:
Excluded realized gain (loss)		(166)		(26)		473		171		(482)	NM		(411)		135	132.8%
Amortization of DFEL associated with
benefit ratio unlocking		1		(5)		(10)		(3)		2	100.0%		2		(16)	NM
Adjusted operating revenues	$	4,769	$	4,718	$	4,641	$	4,630	$	4,676	-2.0%	$	19,639	$	18,665	-5.0%
Net Income
Net income (loss)	$	220	$	104	$	238	$	(2,574)	$	6	-97.3%	$	1,405	$	(2,227)	NM
Less:
Excluded realized gain (loss), after-tax		(132)		(20)		374		134		(381)	NM		(325)		107	132.9%
Benefit ratio unlocking, after-tax		77		(170)		(527)		(339)		217	181.8%		196		(820)	NM
Impairment of intangibles		-		-		-		(634)		-	NM		-		(634)	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		(11)		-		-		-		-	100.0%		(11)		-	100.0%
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		-		-		-	NM		(6)		-	100.0%
Total adjustments		(66)		(190)		(153)		(839)		(164)	NM		(146)		(1,347)	NM
Adjusted income (loss) from operations	$	286	$	294	$	391	$	(1,735)	$	170	-40.6%	$	1,551	$	(880)	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.20	$	0.58	$	1.34	$	(15.17)	$	0.01	-99.2%	$	7.43	$	(13.10)	NM
Less:
Excluded realized gain (loss), after-tax		(0.72)		(0.11)		2.16		0.79		(2.23)	NM		(1.71)		0.62	136.3%
Benefit ratio unlocking, after-tax		0.42		(0.97)		(3.05)		(2.00)		1.27	202.4%		1.03		(4.80)	NM
Impairment of intangibles		-		-		-		(3.73)		-	NM		-		(3.70)	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		(0.06)		-		-		-		-	100.0%		(0.06)		-	100.0%
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		-		-		-	NM		(0.03)		-	100.0%
Adjusted income (loss) from operations	$	1.56	$	1.66	$	2.23	$	(10.23)	$	0.97	-37.8%	$	8.20	$	(5.22)	NM
Page 25

XML

Document And Entity Information	Feb. 08, 2023
Document Type	8-K
Document Period End Date	Feb. 08, 2023
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
Series D Preferred Stock [Member]
Title of 12(b) Security	Depositary Shares, each representing a 1/1000th interest in a share of 9.000% Non-Cumulative Preferred Stock, Series D
Trading Symbol	LNC PRD
Security Exchange Name	NYSE