SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2022

‎

LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

(Parent Company Only) (in millions, except share data)



	As of December 31,
	2022			2021
ASSETS
Investments in subsidiaries ⁽¹⁾	$	8,781		$	24,689
Derivative investments		119			-
Other investments		92			761
Cash and invested cash		715			203
Loans and accrued interest to subsidiaries ⁽¹⁾		2,491			3,194
Other assets		101			159
Total assets	$	12,299		$	29,006

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Common stock dividends payable	$	76		$	80
Derivative investments liability		-			425
Short-term debt		500			300
Long-term debt		6,455			6,325
Loans from subsidiaries ⁽¹⁾		679			1,247
Other liabilities		488			357
Total liabilities		8,198			8,734

Contingencies and Commitments

Stockholders’ Equity
Preferred stock – 10,000,000 shares authorized:
Series C preferred stock – 20,000 shares authorized, issued and outstanding as of December 31, 2022		493			-
Series D preferred stock – 20,000 shares authorized, issued and outstanding as of December 31, 2022		493			-
Common stock – 800,000,000 shares authorized; 169,220,511 and 177,193,515 shares
issued and outstanding as of December 31, 2022, and December 31, 2021, respectively		4,544			4,735
Retained earnings		6,239			9,096
Accumulated other comprehensive income (loss)		(7,668	)		6,441
Total stockholders’ equity		4,101			20,272
Total liabilities and stockholders’ equity	$	12,299		$	29,006

⁽¹⁾Eliminated in consolidation.

‎

LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Parent Company Only) (in millions)



	For the Years Ended December 31,
	2022			2021			2020
Revenues
Dividends from subsidiaries ⁽¹⁾	$	797		$	2,060		$	840
Interest from subsidiaries ⁽¹⁾		159			114			127
Net investment income		3			1			4
Total revenues		959			2,175			971
Expenses
Operating and administrative expenses		52			69			50
Interest – subsidiaries ⁽¹⁾		38			10			20
Interest – other		266			263			275
Total expenses		356			342			345
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries		603			1,833			626
Federal income tax expense (benefit)		(42	)		(49	)		(45	)
Income (loss) before equity in income (loss) of subsidiaries		645			1,882			671
Equity in income (loss) of subsidiaries		(2,872	)		(477	)		(172	)
Net income (loss)		(2,227	)		1,405			499
Other comprehensive income (loss), net of tax:
Unrealized investment gains (losses)		(14,030	)		(2,535	)		3,192
Foreign currency translation adjustment		(20	)		(2	)		5
Funded status of employee benefit plans		(59	)		47			61
Total other comprehensive income (loss), net of tax		(14,109	)		(2,490	)		3,258
Comprehensive income (loss)	$	(16,336	)	$	(1,085	)	$	3,757

⁽¹⁾Eliminated in consolidation.

‎

LINCOLN NATIONAL CORPORATION

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF CASH FLOWS

(Parent Company Only) (in millions)




	For the Years Ended December 31,
	2022			2021			2020
Net Cash Provided by (Used in) Operating Activities	$	608		$	1,860		$	726
Cash Flows from Investing Activities
Capital contribution to subsidiaries ⁽¹⁾		(925	)		(65	)		(518	)
Net change in collateral on investments, derivatives and related settlements		583			168			(303	)
Other		(5	)		(40	)		-
Net cash provided by (used in) investing activities		(347	)		63			(821	)
Cash Flows from Financing Activities
Payment of long-term debt, including current maturities		(300	)		-			(1,096	)
Issuance of long-term debt, net of issuance costs		296			-			1,289
Payment related to modification or early extinguishment of debt		-			(8	)		(13	)
Increase (decrease) in loans from subsidiaries, net ⁽¹⁾		(563	)		(188	)		565
Increase (decrease) in loans to subsidiaries, net ⁽¹⁾		708			(234	)		(514	)
Common stock issued for benefit plans		(16	)		20			(7	)
Issuance of preferred stock, net of issuance costs		986			-			-
Repurchase of common stock		(550	)		(1,105	)		(275	)
Dividends paid to common stockholders		(310	)		(319	)		(311	)
Other		-			-			(6	)
Net cash provided by (used in) financing activities		251			(1,834	)		(368	)
Net increase (decrease) in cash, invested cash and restricted cash		512			89			(463	)
Cash, invested cash and restricted cash as of beginning-of-year		203			114			577
Cash, invested cash and restricted cash as of end-of-year	$	715		$	203		$	114

⁽¹⁾ Eliminated in consolidation.