Exhibit 99.1

Lincoln Statistical Report

First Quarter

2003

Lincoln Financial Group

This document is dated May 9, 2003. It may not be accurate after such date and LNC
does not undertake to update or keep it accurate after such date.

TABLE OF CONTENTS

Statistical Supplement

Lincoln Financial Group
Statistical Report
First Quarter
2003

Table of Contents

LFG Analyst Coverage

Notes

Financial Highlights	1-4
Eleven-Year Summary	5
Quarterly Summary	6
Reconciliation of Business Segments to Consolidated Income Statement	7-8
Statement of Consolidated Income	9-10
Reconciliation of Business Segments to Consolidated Balance Sheets	11-12
Five-Year Comparative Balance Sheet	13
Quarterly Balance Sheet	14
Lincoln Retirement
Income Statement & Operational Data	15-16
Account Value Roll Forward	17-18
Life Insurance
Income Statement	19-20
Operational Data	21
Account Value Roll Forward	22-23
Investment Management
Income Statement	24-25
Assets Under Management Roll Forward	26-27
Lincoln UK
Income Statement	28-29
Operational Data	30
Other Operations	31
Consolidated
Domestic Retail Deposits / Account Balances	32
Total Domestic Net Flows	32
Assets Managed	33
Investment Data	34
Common Stock / Debt Information	35
Retroactive Adoption of FAS 123	36

3/31/2003 ii

NOTES

Definitions and Presentation

*	Income from Operations represents after-tax results excluding, as applicable, realized gains or losses on investments and derivatives, restructuring charges, the cumulative effect of accounting changes, reserve changes on business sold through reinsurance, gains or on losses on sale of subsidiaries and certain other items. Income from Operations is an internal measure used by LNC in the management of its operations. Management believes that this performance measure explains the results of operations of the LNC’s ongoing operations in a manner that allows for a better understanding of the underlying trends in the LNC’s current business.
*	Restructuring charges of $3.6 million after-tax, for the first quarter ended March 31, 2003 relate to the realignment of the Life Insurance segment’s operations in Hartford, Connecticut and Schaumburg, Illinois.
*	Return on capital measures the effectiveness of LNC’s use of its total capital, which is made up of equity, debt and hybrid securities. Return on capital is calculated by dividing income from operations (after adding back interest expense) by average capital. The difference between return on capital and return on shareholders’ equity represents the affect of leveraging on LNC’s consolidated results.
*	Accumulated other comprehensive income (“AOCI”) represents unrealized gains (losses) on investments, net gain on derivative instruments, cumulative translation adjustments and minimum pension liability adjustments, net of tax.
*	Certain operating and statistical measures are included in this report to provide supplemental data that indicate trends in LNC’s current business. These measures include deposits, net flows, first year premium, inforce and assets under management.
*	Certain reclassifications have been made to the prior periods to conform to the March 31, 2003 presentation.

Accounting Changes

* Effective January 1, 2003, LNC adopted the fair value recognition method of accounting for it stock option incentive plans under Statement of Financial Accounting Standards (“FAS”) No. 123, “Accounting for Stock-based Compensation” (“FAS 123”). LNC adopted the retroactive restatement method under FAS No. 148, “Accounting for Stock-based Compensation - Transition and Disclosure” (“FAS 148”). As a result, LNC has chosen to restate 2001 and 2002 to reflect stock-based compensation cost under the fair value method in FAS 123 for all employee awards granted, modified or settled in fiscal years beginning after December 31, 1994. See page 36 for details on the restatement by segment.

3/31/2003 PAGE 1

Financial Highlights
Unaudited [Amounts in Millions, except Per Share]

			For the Quarter Ended March 31
			2003			2002
			Amount			Amount			Change			% Change
Net Income				41.6			85.6			(44.0	)		(51.4	)%
Less:
Realized gains (losses) on investments				(58.2	)		(67.6	)		9.4
Gains (losses) on derivatives				(1.2	)		0.1			(1.3	)
Amortization of deferred gain-reserve development				(0.1	)		—			(0.1	)
Restructuring charges				(3.6	)		—			(3.6	)
		Income from Operations		104.8			153.1			(48.4	)		(31.6	)%
Net Income — By Segment
Lincoln Retirement				6.9			46.6			(39.7	)		(85.3	)%
Life Insurance				48.5			43.5			5.0			11.5	%
Investment Management				1.0			2.1			(1.0	)		(48.0	)%
Lincoln UK				6.8			10.3			(3.4	)		(33.1	)%
Corporate & Other				(21.7	)		(16.8	)		(4.9	)
		Total		41.6			85.6			(44.0	)		(51.4	)%
Income from Operations — By Segment
Lincoln Retirement				57.4			79.4			(22.0	)		(27.7	)%
Life Insurance				60.7			70.4			(9.7	)		(13.8	)%
Investment Management				1.3			3.1			(1.7	)		(55.4	)%
Lincoln UK				6.8			13.8			(7.0	)		(50.6	)%
Corporate & Other				(21.5	)		(13.6	)		(8.0	)
		Total		104.8			153.1			(48.4	)		(31.6	)%
Earnings per share (diluted)
Net Income			$	0.23		$	0.45		$	(0.22	)		(48.8	)%
Less:
Realized gains (losses) on investments			$	(0.32	)	$	(0.36	)	$	0.03
Gains (losses) on derivatives			$	(0.01	)	$	0.00		$	(0.01	)
Amortization of deferred gain-reserve development			$	0.00		$	0.00		$	0.00
Restructuring charges			$	(0.02	)	$	0.00		$	(0.02	)
		Income from Operations	$	0.59		$	0.81		$	(0.22	)		(27.3	)%
Revenue				1,099.3			1,126.0			(26.6	)		(2.4	)%
Less:
	Realized Gains (Losses) on Investments			(89.6	)		(103.5	)		13.9			(13.4	)%
	Gains (Losses) on Derivatives			(1.9	)		0.2			(2.0	)
	Amortization of deferred gain-reserve development			(0.2	)		0.0			(0.2	)
		Operating Revenue		1,191.0			1,229.3			(38.3	)		(3.1	)%
Revenue — By Segment
Lincoln Retirement				397.8			453.0			(55.2	)		(12.2	)%
Life Insurance				457.5			423.9			33.6			7.9	%
Investment Management				102.1			107.3			(5.3	)		(4.9	)%
Lincoln UK				68.9			53.2			15.7			29.6	%
Corporate & Other				73.0			88.5			(15.5	)		(17.5	)%
		Total		1,099.3			1,126.0			(26.6	)		(2.4	)%
Operating Revenue- By Segment
Lincoln Retirement				475.5			503.5			(28.0	)		(5.6	)%
Life Insurance				470.7			465.3			5.4			1.2	%
Investment Management				102.5			108.9			(6.4	)		(5.9	)%
Lincoln UK				68.9			58.3			10.7			18.3	%
Corporate & Other				73.3			93.3			(20.1	)		(21.5	)%
		Total		1,191.0			1,229.3			(38.3	)		(3.1	)%
Operational Data by Segment: (Billions except where noted)
Lincoln Retirement
	Gross Deposits			1.424			1.714			(0.290	)		(16.9	)%
	Net Flows			0.095			0.088			0.007			(8.0	)%
	Account Values (Gross)			47.085			53.328			(6.243	)		(11.7	)%
	Account Values (Net of Reinsurance)			45.010			51.683			(6.673	)		(12.9	)%
Life Insurance Segment
	First Year Premium- Retail (in millions)			170.704			139.377			31.326			22.5	%
	First Year Premium- COLI (in millions)			10.571			6.873			3.697			53.8	%
	First Year Premium- Total (in millions)			181.275			146.251			35.024			23.9	%
	In-force			259.666			240.068			19.598			8.2	%
	Account Values			12.233			11.667			0.566			4.9	%
Investment Management Segment
	Retail Deposits			1.141			1.200			(0.059	)		(4.9	)%
	Retail Net Flows			0.014			0.089			(0.075	)		84.1	%
	Institutional In-flows			1.086			1.476			(0.390	)		(26.4	)%
	Institutional Net Flows			0.330			0.731			(0.402	)		(55.0	)%
	Total Net Flows			0.344			0.821			(0.477	)		(58.1	)%
	Assets Under Management- Retail and Inst’l			45.719			50.001			(4.281	)		(8.6	)%
	Assets Under Management — Insurance Assets			42.130			37.171			4.959			13.3	%
	Assets Under Management — Total Segment			87.849			87.171			0.678			0.8	%
Consolidated
	Consolidated Domestic Retail Deposits			2.880			3.074			(0.195	)		(6.3	)%
	Consolidated Domestic Retail Account Balances			74.546			82.049			(7.503	)		(9.1	)%
	Total Retail Net Flows			0.568			0.423			0.145			(34.3	)%
	Total Net Flows			0.868			1.176			(0.308	)		(26.2	)%
	Total Assets Under Management			114.920			122.832			(7.912	)		(6.4	)%

3/31/2003 PAGE 2

Financial Highlights
Unaudited [Amounts in Millions, except Per Share]

			For the Quarter Ended March 31
			2003			2002
			Amount			Amount			Change			% Change
Consolidated Operational Data: (Millions)
Balance Sheet Assets — End of Period				92,497.6			97888.5			(5434.0	)		(5.5	)%
Shareholders’ Equity
	Beg of Period (including AOCI)			5347.5			5303.8			43.7
	End of Period (including AOCI)			5450.0			5173.2			276.8
	End of Period (excluding AOCI)			4610.5			5118.7			(565.6	)
	Average Equity (excluding AOCI)			4682.0			5179.8			(497.8	)
Return on Equity
	Net Income/Average Equity (excluding AOCI)			3.6	%		6.6	%		(3.1	)%
	Inc from Operations/Average Equity (excluding AOCI)			8.9	%		11.8	%		(2.9	)%
Return on Capital
	Inc from Operations/Average Capital			7.8	%		9.9	%		(2.1	)%
Common Stock Outstanding
	Average for the Period — Diluted			178.3			190.0			(11.7	)		(6.2	)%
	End of Period — Assuming Conv of Pref			177.7			187.9			(10.2	)		(5.4	)%
	End of Period — Diluted			178.4			190.2			(11.8	)		(6.2	)%
Book Value (including AOCI)				30.66			27.53			3.13			11.4	%
Book Value (excluding AOCI)				25.94			27.54			(1.60	)		(5.8	)%
Cash Returned to Shareholders
	Share Repurchase — dollar amount			0.0			50.9			(50.9	)
	Dividends Declared to Shareholders			58.9			60.1			(1.2	)
		Total Cash Returned to Shareholders		58.9			111.0			(52.1	)
	Share Repurchase — number of shares			0.000			1.000			(1.000	)
	Dividend Declared on Common Stock — per share		$	0.335		$	0.320		$	0.015			4.7	%

		For the Quarter Ended March 31
Comprehensive Income		2003			2002
(millions)		Amount			Amount
Net Income			41.6			85.6
Foreign Currency Translation			(11.0	)		(12.8	)
Net Unrealized Gains (Losses) on Securities			118.7			(163.8	)
Gains (Losses) on Derivatives			(3.4	)		18.7
Cumulative Effect of Accounting Change			0.0			(17.6	)
Minimum Pension Liability Adjustment			0.6			0.7
	Comprehensive Income		146.5			(89.1	)

3/31/2003 PAGE 3

Financial Highlights
Unaudited [Amounts in Millions]

				For the Quarter Ended March 31
				2003			2002
				Amount			Amount			Change			% Change
Consolidated Condensed Statements of Income
Revenue:
	Insurance Premiums and Fees				403.2			431.5			(28.3	)		(6.6	)%
	Investment Advisory Fees				44.2			48.0			(3.8	)		(8.0	)%
	Net Investment Income				654.6			654.8			(0.1	)		(0.0	)%
	Realized Gains (Losses) on Investments				(89.6	)		(103.5	)		13.9
	Gains (Losses) on Derivatives				(1.9	)		0.1			(2.0	)
	Gains (Losses) on sale of subsidiaries				—			—			—
	Other				88.8			95.0			(6.2	)		(6.5	)%
			Total Revenue		1,099.3			1,126.0			(26.6	)		(2.4	)%
Benefits and Expenses:
	Benefits				613.0			603.4			9.6			1.6	%
	Underwriting, Acquisition, Insurance and Other Expenses				450.8			427.0			23.8			5.6	%
			Total Benefits and Expenses		1,063.9			1,030.4			33.4			3.2	%
Income before Federal Taxes					35.4			95.5			(60.1	)
Federal Income Taxes					(6.1	)		9.9			(16.1	)
Net Income					41.6			85.6			(44.0	)		(51.4	)%
Income before Tax By Segment
	Lincoln Retirement				(13.3	)		45.1			(58.3	)
	Life Insurance				68.7			62.6			6.1
	Investment Management				1.9			3.4			(1.5	)
	Lincoln UK				10.6			9.8			0.8
	Corporate and Other				(32.5	)		(25.4	)		(7.1	)
			Income before Tax		35.4			95.5			(60.1	)
Pre-Tax Realized Gains (Losses) by Segment*
	Lincoln Retirement				(77.8	)		(50.5	)		(27.3	)
	Life Insurance				(13.2	)		(41.4	)		28.2
	Investment Management				(0.4	)		(1.5	)		1.1
	Lincoln UK				(0.0	)		(5.1	)		5.1
	Corporate and Other				(0.0	)		(4.9	)		4.8
		Pre-Tax Realized Gains (Losses) on Investments and Derivatives			(91.4	)		(103.3	)		11.9
After-Tax Realized Gains (Losses) by Segment*
	Lincoln Retirement				(50.5	)		(32.8	)		(17.7	)
	Life Insurance				(8.6	)		(26.9	)		18.3
	Investment Management				(0.3	)		(1.0	)		0.7
	Lincoln UK				(0.0	)		(3.6	)		3.5
	Corporate and Other				(0.0	)		(3.2	)		3.2
		After-Tax Realized Gains (Losses) on Investments and Derivatives			(59.4	)		(67.5	)		8.1

•     Includes both realized gains (losses) on investments and gains (losses) on derivatives.

3/31/2003 PAGE 4

Financial Highlights
Unaudited [Amounts in Millions, except Retail Account Balances and Assets Managed]

			As of
			March			December
			2003			2002
			Amount			Amount			Change			% Change
Consolidated Condensed Balance Sheets
Assets:
Investments:
	Securities Available for Sale:
		Fixed Maturities		33,886.8			32,767.5			1,119.3			3.4	%
		Equities		249.5			337.2			(87.8	)		(26.0	)%
	Mortgage Loans on Real Estate			4,235.5			4,205.5			30.0			0.7	%
	Real Estate			242.0			279.7			(37.7	)		(13.5	)%
	Policy Loans			1,928.8			1,945.6			(16.8	)		(0.9	)%
	Other Long-Term Investments			465.7			464.4			1.4			0.3	%
		Total Investments		41,008.4			39,999.9			1,008.5			2.5	%
Other Assets:
	Assets Held in Separate Accounts			34,775.2			36,178.3			(1,403.2	)		(3.9	)%
	Other Assets			16,714.1			17,006.5			(292.4	)		(1.7	)%
		Total Assets		92,497.6			93,184.6			(687.1	)		(0.7	)%
Liabilities and Shareholders’ Equity
Liabilities:
	Insurance and Investment Contract Liabilities			45,463.6			44,845.3			618.3			1.4	%
	Liabilities Related to Separate Accounts			34,775.2			36,178.3			(1,403.2	)		(3.9	)%
	Other Liabilities			6,808.8			6,813.6			(4.7	)		(0.1	)%
		Total Liabilities		87,047.6			87,837.2			(789.6	)		(0.9	)%
Shareholders’ Equity:
	Net Unrealized Gains(Losses) on Securities and Derivatives			896.9			781.6			115.3			14.8	%
	Minimum Pension Liability Adjustment			(97.2	)		(97.8	)		0.6			(0.6	)%
	Foreign Currency Translation Adjustment			39.8			50.8			(11.0	)		(21.6	)%
	Other Shareholders’ Equity			4,610.5			4,612.9			(2.4	)		(0.1	)%
		Total Shareholders’ Equity		5,450.0			5,347.5			102.5			1.9	%
		Total Liabilities and Shareholders’ Equity		92,497.6			93,184.6			(687.1	)		(0.7	)%

		Year-to-Date as of
		March			December
		2003			2002
		Amount			Amount			Change			% Change
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year			2,970.9			2,885.3			85.6			3.0	%
Deferral			148.5			627.3			(478.8	)		(76.3	)%
Amortization			(100.1	)		(346.7	)		246.6			(71.1	)%
	Included in Total Benefits and Expenses		48.4			280.6			(232.2	)		(82.8	)%
Adjustment related to realized (gains) losses on securities available-for-sale			30.0			115.0			(85.0	)		(73.9	)%
Adjustment related to unrealized (gains) losses on securities available-for-sale			(119.4	)		(338.5	)		219.0			(64.7	)%
Foreign currency translation adjustment			(10.9	)		56.9			(67.8	)		(119.1	)%
Other			—			(28.4	)		28.4			(100.0	)%
Balance at end-of-period			2,919.0			2,970.9			(51.9	)		(1.7	)%
Roll Forward of Present Value of In-Force
Balance at beginning-of-year			1,250.1			1,362.5			(112.4	)		(8.2	)%
	Amortization		(22.7	)		(136.5	)		113.8			(83.4	)%
	Foreign currency translation adjustment		(4.3	)		24.1			(28.4	)		(117.9	)%
Balance at end-of-period			1,223.1			1,250.1			(27.0	)		(2.2	)%

3/31/2003 PAGE 5

Eleven-Year Summary
Unaudited [Millions of Dollars except Per Share Data]

																																					Ten-year
For the Year Ended																																					compound
December 31				2002			2001			2000			1999			1998			1997			1996			1995			1994			1993			1992			annual growth
Revenue
		Lincoln Retirement			1787.7			1968.3			2133.7			2115.8			2068.1			2023.0			1805.0			1877.1			1506.2			1603.8			1336.2			3.0	%
		Life Insurance			1785.0			1840.6			1819.0			1760.4			1378.5			544.8			549.2			514.9			466.2			477.5			444.4			14.9	%
		Investment Management			413.1			451.2			513.7			514.9			509.6			459.1			410.5			290.5
		Lincoln UK			277.2			290.7			433.8			446.6			439.7			427.3			393.2			351.5			216.0			174.9			180.6			4.4	%
		Corporate & Other			372.4			1827.3			1946.9			1966.0			1691.1			1444.3			1575.6			1552.5			1744.1			2680.9			2780.9
			Total Revenue		4635.5			6378.0			6847.1			6803.7			6087.1			4898.5			4733.6			4586.5			3932.5			4937.1			4742.1			(0.2	)%
Net Income
		Lincoln Retirement			53.7			265.1			358.6			291.5			273.8			263.3			204.3			248.8			142.4			127.1			89.4			(5.0	)%
		Life Insurance			206.1			229.3			249.3			211.5			127.5			39.1			51.8			40.6			34.2			37.8			46.8			16.0	%
		Investment Management			(1.4	)		(9.0	)		37.0			51.6			44.4			25.1			25.0			27.4
		Lincoln UK			37.7			66.8			(13.2	)		(18.2	)		71.7			(106.8	)		66.0			45.7			18.5			12.6			9.2
		Corporate & Other			(247.3	)		(6.6	)		(10.2	)		(76.1	)		(7.6	)		(198.4	)		9.3			(61.0	)		(29.6	)		(101.1	)		125.1
			Total Net Inc from Cont Oper		48.8			545.7			621.4			460.4			509.8			22.2			356.4			301.4			165.5			76.4			270.5			(15.7	)%
		Discontinued Operations																		911.8			157.2			180.8			184.4			242.5			88.7
			Total Net Income		48.8			545.7			621.4			460.4			509.8			934.0			513.6			482.2			349.9			318.9			359.2			(18.1	)%
Income from Operations
		Lincoln Retirement			183.4			316.2			362.0			299.4			262.4			223.0			174.6			175.2			142.4			127.1			89.4			7.4	%
		Life Insurance			269.0			275.3			259.9			212.0			149.2			39.9			41.2			35.4			34.2			37.8			46.8			19.1	%
		Investment Management			1.8			(6.1	)		44.1			61.0			43.9			18.1			18.6			20.6
		Lincoln UK			34.6			58.1			61.0			(13.9	)		70.9			(108.3	)		66.0			45.9			17.2			11.9			9.2			14.2	%
		Corporate & Other			(57.2	)		1.0			(8.0	)		(83.1	)		4.0			(223.3	)		(1.7	)		(136.2	)		24.8			20.8			6.5
			Total Income from Cont Oper		431.6			644.4			719.1			475.5			530.4			(50.6	)		298.8			140.8			218.6			197.6			151.9			11.0	%
		Discontinued Operations																		110.1			135.3			165.6			171.1			145.9			88.7
			Income from Operations		431.6			644.4			719.1			475.5			530.4			59.4			434.1			306.5			389.7			343.5			240.6			6.0	%
OTHER DATA
	Assets				93184.6			98041.6			99844.1			103095.7			93836.3			77174.7			71713.4			63257.7			48864.8			47825.1			39042.2			9.1	%
Shareholders’ Equity:
	Including AOCI				5347.5			5303.8			4954.1			4263.9			5387.9			4982.9			4470.0			4378.1			3042.1			4072.3			2826.8			6.6	%
	Excluding AOCI				4612.9			5130.6			4920.1			4699.5			4785.5			4500.7			3990.6			3669.2			3353.1			3157.6			2664.1			5.6	%
	Average Equity (excluding AOCI)				4982.5			5056.0			4811.8			4786.2			4636.3			4172.7			3851.7			3400.3			3288.6			3009.0			2575.0			6.8	%
Common Shares Outstanding: (millions)
	End of Period — Diluted				178.5			189.3			195.2			197.0			203.4			204.7			209.5			210.3			208.3			208.3			187.7
	Average for the Period — Diluted				184.6			191.5			194.9			200.4			203.3			208.0			210.7			209.5			208.7			206.1			186.8
Per Share Data (Diluted)
	Net Income from Continuing Operations			$	0.26		$	2.85		$	3.19		$	2.30		$	2.51		$	0.11		$	1.69		$	1.44		$	0.79		$	0.37		$	1.45			(15.7	)%
	Net Income			$	0.26		$	2.85		$	3.19		$	2.30		$	2.51		$	4.49		$	2.44		$	2.30		$	1.68		$	1.55		$	1.92			(18.0	)%
	Income (Loss) from Continuing Operations			$	2.34		$	3.37		$	3.69		$	2.37		$	2.61		$	(0.24	)	$	1.42		$	0.67		$	1.05		$	0.96		$	0.81			11.1	%
	Income from Operations *			$	2.34		$	3.37		$	3.69		$	2.37		$	2.61		$	0.29		$	2.06		$	1.46		$	1.87		$	1.67		$	1.29			6.1	%
	Shareholders’ Equity:
	Shareholders’ Equity (Includes AOCI)			$	30.10		$	28.32		$	25.92		$	21.76		$	26.59		$	24.63		$	21.50		$	20.95		$	14.67		$	19.69		$	15.13			7.1	%
	Shareholders’ Equity (Excludes AOCI)			$	25.97		$	27.39		$	25.74		$	23.98		$	23.62		$	22.25		$	19.19		$	17.55		$	16.17		$	15.27		$	14.26			6.2	%
	Dividends Declared (Common Stock)			$	1.295		$	1.235		$	1.175		$	1.115		$	1.055		$	.995		$	.935		$	.875		$	0.830		$	0.775		$	0.738			5.8	%
Return on Equity
		Net Income/Average Equity			1.0	%		10.8	%		12.9	%		9.6	%		11.0	%		22.4	%		13.3	%		15.5	%		10.6	%		10.6	%		13.9	%
		Inc from Operations/Average Equity			8.7	%		12.7	%		14.9	%		9.9	%		11.4	%		1.4	%		11.3	%		9.8	%		11.8	%		11.4	%		9.3	%
Market Value of Common Stock
		High for the Year		$	53.650		$	52.750		$	56.375		$	57.500		$	49.438		$	39.063		$	28.500		$	26.875		$	22.188		$	24.125		$	19.032
		Low for the Year		$	25.150		$	38.000		$	22.625		$	36.000		$	33.500		$	24.500		$	20.375		$	17.313		$	17.313		$	17.344		$	12.625
		Close for the Year		$	31.580		$	48.570		$	47.313		$	40.000		$	40.907		$	39.063		$	26.250		$	26.875		$	17.500		$	21.750		$	18.500			5.5	%

Note: 2001 and 2002 have been restated for the adoption of the fair value method of accounting for stock options under FAS 123.

3/31/2003 PAGE 6

Quarterly Summary
Unaudited [Millions of Dollars except Per Share Data]

				Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
For the Quarter Ended				2001			2001			2001			2001			2002			2002			2002			2002			2003
Revenue
		Lincoln Retirement			510.4			512.1			478.2			467.5			453.0			442.6			440.7			451.4			397.8
		Life Insurance			459.6			455.7			460.6			464.7			423.9			439.8			441.6			479.6			457.5
		Investment Management			116.9			114.7			108.8			110.8			107.3			106.1			97.5			102.2			102.1
		Lincoln UK			88.8			63.4			85.0			53.4			53.2			80.5			91.8			51.8			68.9
		Corporate & Other			526.9			447.6			485.3			367.4			88.5			88.5			91.8			103.6			73.0
			Total Revenue		1702.7			1593.5			1618.0			1463.8			1126.0			1157.5			1163.4			1188.6			1099.3
Net Income
		Lincoln Retirement			75.5			78.9			57.6			53.1			46.6			9.2			(7.0	)		5.0			6.9
		Life Insurance			62.0			52.6			63.8			50.9			43.5			56.7			46.4			59.5			48.5
		Investment Management			(2.7	)		(1.8	)		(2.1	)		(2.4	)		2.1			0.8			(2.3	)		(2.0	)		1.0
		Lincoln UK			14.2			17.1			13.5			22.0			10.3			9.3			0.2			17.9			6.8
		Corporate & Other			0.5			(15.7	)		(24.6	)		33.2			(16.8	)		(25.8	)		(172.1	)		(32.6	)		(21.7	)
			Total Net Income		149.6			131.1			108.0			156.9			85.6			50.1			(134.8	)		47.9			41.6
Income from Operations
		Lincoln Retirement			81.3			89.8			71.4			73.7			79.4			46.8			21.8			35.4			57.4
		Life Insurance			67.7			66.2			69.1			72.3			70.4			72.8			62.7			63.1			60.7
		Investment Management			(2.2	)		(1.0	)		(1.6	)		(1.3	)		3.1			1.3			(1.4	)		(1.1	)		1.3
		Lincoln UK			13.8			15.7			9.6			19.0			13.8			6.1			(0.6	)		15.3			6.8
		Corporate & Other			7.4			(13.1	)		(16.3	)		23.0			(13.6	)		(8.9	)		(18.8	)		(15.9	)		(21.5	)
			Income from Operations		168.0			157.5			132.2			186.7			153.1			118.0			63.7			96.8			104.8
OTHER DATA
Assets					94152.1			96464.2			90242.4			98041.6			97888.5			95113.3			90482.2			93184.6			92454.5
Shareholders’ Equity
	Beg of Period (including AOCI)				4954.1			5126.1			5088.9			5405.0			5303.8			5173.2			5351.9			5435.1			5347.5
	End of Period (including AOCI)				5126.1			5088.9			5405.0			5303.8			5173.2			5351.9			5435.1			5347.5			5450.0
	End of Period (excluding AOCI)				4908.2			5001.1			5129.8			5130.6			5174.7			5019.4			4590.1			4612.9			4610.5
	Average Equity (excluding AOCI)				4964.2			4955.9			5124.8			5179.0			5179.8			5165.3			4942.7			4642.2			4682.0
Common Shares Outstanding
	Average for the Period — Diluted				192.0			190.4			192.8			190.9			190.0			188.5			183.2			178.4			178.3
	End of Period — Diluted				190.0			190.9			191.2			189.3			190.2			186.1			178.2			178.5			178.4
Per Share Data (Diluted)
	Net Income			$	0.78		$	0.69		$	0.56		$	0.82		$	0.45		$	0.27		$	(0.74	)	$	0.27		$	0.23
	Income from Operations			$	0.88		$	0.83		$	0.69		$	0.98		$	0.81		$	0.63		$	0.35		$	0.54		$	0.59
Shareholders’ Equity
	Shareholders’ Equity (including AOCI)				27.25			27.04			28.48			28.32			27.53			29.01			30.63			30.10			30.61
	Shareholders’ Equity (excluding AOCI)				26.09			26.58			27.03			27.39			27.54			27.21			25.87			25.97			25.81
	Dividends Declared (Com Stk)				0.305			0.305			0.305			0.320			0.320			0.320			0.320			0.335			0.335
Return on Equity
	Net Income/Average Equity				12.1	%		10.6	%		8.4	%		12.1	%		6.6	%		3.9	%		(10.9	)%		4.1	%		3.6	%
	Inc from Operations/Average Equity				13.5	%		12.7	%		10.3	%		14.4	%		11.8	%		9.1	%		5.2	%		8.3	%		9.0	%
Market Value of Common Stock
	Highest Price			$	48.250		$	52.300		$	52.750		$	49.450		$	53.650		$	52.540		$	42.080		$	35.950		$	35.700
	Lowest Price			$	38.000		$	41.280		$	41.000		$	40.000		$	47.200		$	40.750		$	29.120		$	25.150		$	24.730
	Closing Price			$	42.470		$	51.750		$	46.630		$	48.570		$	50.730		$	42.000		$	30.550		$	31.580		$	28.000

3/31/2003 PAGE 7

Reconciliation of Business Segments to Consolidated Income Statement
Unaudited [Millions of Dollars]

																	Investment
For the Quarter Ended March 31					Lincoln Retirement						Life Insurance						Management						Lincoln UK
					Mar			Mar			Mar			Mar			Mar			Mar			Mar			Mar
					2003			2002			2003			2002			2003			2002			2003			2002
Revenue
	Life and annuity premiums					5.5			12.2			47.8			51.1									12.0			11.4
	Surrender charges					6.9			7.9			11.4			11.7
	Mortality assessments											129.7			123.9									9.1			6.5
	Expense assessments					97.6			121.0			48.3			46.9									21.6			25.3
	Health premiums											0.0			0.0									0.7			0.7
	Investment advisory fees																	68.3			73.0
	Other revenue and fees					(1.4	)		5.8			5.8			5.7			22.0			23.0			10.3			(0.2	)
	Net investment income					367.0			356.6			227.6			226.0			12.1			12.8			15.2			14.7
	Realized gains (losses) on investments					(76.8	)		(50.5	)		(12.7	)		(41.4	)		(0.4	)		(1.5	)		(0.0	)		(5.1	)
	Gains (losses) on derivatives					(1.0	)		0.0			(0.5	)		0.0
				Total Revenue		397.8			453.0			457.5			423.9			102.1			107.3			68.9			53.2
Operating Benefits and Expenses
	Ins. benefits paid or provided:
				Life and annuity policy benefits		65.0			55.4			103.8			104.1									16.2			15.0
				Div accum & div to policyholders								14.4			17.8
				Interest credited to policy bal		220.1			226.1			150.1			146.3
				Health policy benefits								0.0			0.0									2.0			3.3
				Total insurance benefits		285.1			281.5			268.3			268.1									18.2			18.3
	Underwriting, acquisition, insurance and other expenses:
				Commissions		66.8			82.4			32.4			34.6									1.1			1.3
				Other volume related expenses		14.0			10.0			54.2			42.7
				Operating and administrative expenses		54.0			54.6			40.6			38.2			95.2			97.2			18.3			17.3
				Restructuring charges								5.5
				Taxes, licenses and fees		5.7			4.7			14.4			13.2			3.0			4.6
				Par policyholder interests Foreign exchange
				Subtotal		140.4			151.8			147.1			128.6			98.2			101.8			19.4			18.6
			Deferral of acquisition costs			(47.8	)		(61.7	)		(91.0	)		(74.3	)								(0.8	)		(0.9	)
			DAC amortization			31.0			32.7			47.0			22.1									18.6			6.7
				DAC deferral net of amortization		(16.8	)		(29.1	)		(44.0	)		(52.3	)								17.7			5.8
			PVIF amortization			2.3			3.8			17.4			16.9									3.0			0.7
			Other intangibles amortization															2.0			2.2
				Total underwriting, acquisition, insurance and other expenses		125.9			126.5			120.5			93.2			100.2			103.9			40.1			25.0
				Goodwill amortization Interest		0.0									0.0
		Benefits and Expenses				411.0			408.0			388.8			361.3			100.2			103.9			58.3			43.3
Income from Before Federal Income Tax and Cumulative Effect of Accounting Changes						(13.3	)		45.1			68.7			62.6			1.9			3.4			10.6			9.8
	Federal income taxes					(20.1	)		(1.5	)		20.2			19.1			0.8			1.3			3.8			(0.5	)
Income Before Cumulative Effect of Accounting Changes						6.9			46.6			48.5			43.5			1.0			2.1			6.8			10.3
	Cumulative effect of accounting changes
				Net Income		6.9			46.6			48.5			43.5			1.0			2.1			6.8			10.3
Less:
	Restructuring charges											(3.6	)
	Realized gains (losses) on investments					(50.3	)		(32.8	)		(8.1	)		(26.9	)		(0.3	)		(1.0	)		(0.0	)		(3.6	)
	Gains (losses) on derivatives					(0.2	)		0.0			(0.5	)		0.0
	Reserve increase on business sold through reinsurance Gain on sale of subsidiaries Cumulative effect of accounting changes
				Income from Operations		57.4			79.4			60.7			70.4			1.3			3.1			6.8			13.8

3/31/2003 PAGE 8

Reconciliation of Business Segments to Consolidated Income Statement
Unaudited [Millions of Dollars]

					Corporate and						Consolidating
					Other Operations						Adjustments						Consolidated
					Mar			Mar			Mar			Mar			Mar			Mar
For the Quarter Ended March 31					2003			2002			2003			2002			2003			2002
Revenue
	Life and annuity premiums																	65.3			74.7
	Surrender charges											0.6			0.5			18.9			20.2
	Mortality assessments																	138.9			130.4
	Expense assessments					0.0						9.6			10.6			177.1			203.9
	Health premiums					2.3			1.8									3.0			2.4
	Investment advisory fees											(24.1	)		(25.0	)		44.2			48.0
	Amortization of deferred gain					18.4			24.2									18.4			24.2
	Amortization of deferred gain-reserve development					(0.2	)											(0.2	)
	Other revenue and fees					105.5			99.4			(71.6	)		(62.9	)		70.6			70.8
	Net investment income					33.6			46.3			(1.0	)		(1.5	)		654.6			654.8
	Realized gains (losses) on investments					0.4			(4.9	)								(89.6	)		(103.5	)
	Gains (losses) on derivatives					(0.4	)		0.1									(1.9	)		0.2
			Total Revenue			159.5			166.7			(86.5	)		(78.2	)		1099.3			1126.0
Benefits and Expenses
	Ins. benefits paid or provided:
			Life and annuity policy benefits			2.0			1.6									187.1			176.1
			Div accum & div to policyholders															14.4			17.8
			Interest credited to policy bal.			32.5			25.7			6.6			8.1			409.3			406.2
			Health policy benefits			0.3			0.1									2.3			3.3
				Total insurance benefits		34.8			27.4			6.6			8.1			613.0			603.4
	Underwriting, acquisition, insurance and other expenses:
			Commissions			18.2			19.2			7.3			6.7			125.7			144.2
			Other volume related expenses			51.1			45.0			(47.7	)		(43.1	)		71.5			54.7
			Operating and administrative expenses			56.0			59.9			(46.3	)		(46.4	)		217.8			220.7
			Restructuring charges															5.5
			Taxes, licenses and fees			7.6			14.2									30.6			36.6
			Par policyholder interests
			Foreign exchange			(0.0	)		0.0									(0.0	)		0.0
				Subtotal		132.8			138.3			(86.8	)		(82.8	)		451.2			456.2
			Deferral of acquisition costs									(8.8	)		(10.9	)		(148.5	)		(147.9	)
			DAC amortization			0.1			0.1			3.5			8.9			100.1			70.4
				DAC deferral net of amortization		0.1			0.1			(5.3	)		(2.1	)		(48.4	)		(77.5	)
			PVIF amortization															22.7			21.3
			Other intangibles amortization															2.0			2.2
				Total underwriting, acquisition, insurance and other expenses		132.9			138.4			(92.1	)		(84.9	)		427.5			402.2
			Goodwill amortization
			Interest			24.3			26.3			(1.0	)		(1.5	)		23.3			24.8
		Total Benefits and Expenses				192.0			192.1			(86.5	)		(78.2	)		1063.9			1030.4
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes						(32.5	)		(25.4	)		0.0						35.4			95.5
	Federal income taxes					(10.8	)		(8.6	)								(6.1	)		9.9
Income Before Cumulative Effect of Accounting Changes						(21.7	)		(16.8	)		0.0						41.6			85.6
	Cumulative effect of accounting changes
			Net Income			(21.7	)		(16.8	)		0.0						41.6			85.6
Less:
	Restructuring charges																	(3.6	)
	Realized gains (losses) on investments					0.5			(3.3	)								(58.2	)		(67.6	)
	Gains (losses) on derivatives					(0.5	)		0.1									(1.2	)		0.1
	Reserve increase on business sold through reinsurance					(0.1	)											(0.1	)
	Gain on sale of subsidiaries
	Cumulative effect of accounting changes
		Income from Operations				(21.5	)		(13.6	)		0.0						104.8			153.1

3/31/2003 PAGE 9

Statement of Consolidated Income
Unaudited [Millions of Dollars]

For the Year Ended December 31					1998			1999			2000			2001			2002
Revenue
	Life and annuity premiums					985.6			1183.0			1403.3			1363.4			295.6
	Surrender charges					91.5			110.2			114.7			101.5			87.8
	Mortality assessments					380.1			496.4			496.5			533.3			530.3
	Expense assessments					773.8			896.0			1013.1			880.1			792.7
	Health premiums					635.1			698.5			409.8			340.6			20.3
	Investment advisory fees					227.1			223.8			213.1			197.2			183.3
	Amortization of deferred gain														20.4			75.2
	Amortization of deferred gain-reserve development																	(0.8	)
	Other revenue and fees					261.0			344.5			441.1			328.7			299.5
	Net investment income					2710.6			2842.5			2784.1			2708.7			2631.9
	Earnings in Unconsolidated Affiliates					3.3			5.8			(0.4	)		5.7			(0.6	)
	Realized gains (losses) on investments					19.0			3.0			(28.3	)		(92.4	)		(280.9	)
	Gains (losses) on derivatives														(9.3	)		1.2
			Total Revenue			6087.1			6803.7			6847.1			6378.0			4635.5
Benefits and Expenses
	Ins. benefits paid or provided:
			Life and annuity policy benefits			1237.7			1546.6			1546.4			1517.9			811.3
			Div accum & div to policyholders			78.0			88.4			87.6			83.7			76.0
			Interest credited to policy bal.			1446.2			1510.4			1474.2			1506.0			1617.1
			Health policy benefits			566.9			659.7			449.0			302.1			49.7
			Reserve developments on Reins. business sold															305.4
				Total insurance benefits		3328.9			3805.0			3557.2			3409.7			2859.5
	Underwriting, acquisition, insurance and other expenses:
			Commissions			740.1			961.0			919.1			860.3			579.4
			Other volume related expenses			150.7			197.1			253.8			184.8			256.8
			Operating and administrative expenses			997.9			1165.3			1157.0			1114.5			928.0
			Restructuring charges			52.8			27.4			104.9			38.0			(2.2	)
			Taxes, licenses and fees			73.1			77.9			107.5			122.9			106.8
			Par policyholder interests			(4.3	)		3.3			1.1
			Foreign exchange			(1.5	)		1.9			(2.9	)		(1.4	)		0.3
				Subtotal		2008.8			2433.8			2540.6			2319.1			1869.0
			Deferral of acquisition costs												(714.1	)		(627.3	)
			DAC amortization												367.8			346.7
				DAC deferral net of amortization		(208.2	)		(314.6	)		(427.5	)		(346.3	)		(280.6	)
			PVIF amortization			77.1			102.5			132.6			113.1			136.5
			Other intangibles amortization			18.8			18.0			17.7			12.1			8.2
				Total underwriting, acquisition, insurance and other expenses		1896.5			2239.7			2263.5			2098.0			1733.2
	Goodwill amortization					44.5			49.2			45.1			43.4
	Interest					117.1			133.7			139.5			121.0			96.6
		Total Benefits and Expenses				5386.9			6227.6			6005.3			5672.1			4689.3
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes						700.2			576.1			841.8			705.9			(53.8	)
	Federal income taxes					190.4			115.7			220.4			144.7			(102.6	)
Income Before Cumulative Effect of Accounting Changes						509.8			460.4			621.4			561.2			48.8
	Cumulative effect of accounting changes														(15.6	)
				Net Income		509.8			460.4			621.4			545.7			48.8
Less:
	Restructuring charges					(34.3	)		(18.9	)		(80.2	)		(24.7	)		2.0
	Realized gains (losses) on investments					13.7			3.8			(17.5	)		(68.7	)		(177.2	)
	Gains (losses) on derivatives														(4.9	)		0.8
	Reserve increase on business sold through reinsurance																	(199.1	)
	Gain on sale of subsidiaries														15.0			(9.4	)
	Cumulative Effect of Accounting Changes														(15.6	)
		Income from Operations				530.4			475.5			719.1			644.4			431.6
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year															3,070.5			2,885.3
Deferral															714.1			627.3
Amortization															(367.8	)		(346.7	)
	Included in Total Benefits and Expenses														346.3			280.6
	Adjustment related to realized (gains) losses on securities available-for-sale														112.9			115.0
	Adjustment related to unrealized (gains) losses on securities available-for-sale														(187.2	)		(338.5	)
Foreign currency translation adjustment															(16.0	)		56.9
Disposition of business															(425.9	)		0.0
Other															(15.3	)		(28.4	)
Balance at end-of-year															2,885.3			2,970.9
Roll Forward of Present Value of In-Force
Balance at beginning-of-year															1,483.3			1,362.5
	Amortization														(113.1	)		(136.5	)
	Foreign currency translation adjustment														(7.0	)		24.1
	Other														(0.7	)		(0.0	)
Balance at end-of-year															1,362.5			1,250.1

Note: 2001 and 2002 have been restated for the adoption of the fair value method of accounting for stock options under FAS 123.

3/31/2003 PAGE 10

Statement of Consolidated Income
Unaudited [Millions of Dollars]

					Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
For the Quarter Ended					2001			2001			2001			2001			2002			2002			2002			2002			2003
Revenue
	Life and annuity premiums					402.1			353.9			336.8			270.7			74.7			68.7			71.6			80.7			65.3
	Surrender charges					27.8			22.8			23.2			27.7			20.2			21.3			22.8			23.5			18.9
	Mortality assessments					133.7			133.7			133.3			132.6			130.4			130.5			134.1			135.3			138.9
	Expense assessments					237.0			219.8			217.4			205.9			203.9			208.0			193.2			187.6			177.1
	Health premiums					104.8			95.7			103.9			36.1			2.4			8.3			(9.6	)		19.1			3.0
	Investment advisory fees					49.4			49.6			47.2			50.9			48.0			47.8			42.9			44.7			44.2
	Amortization of deferred gain														20.4			24.2			22.0			22.1			6.9			18.4
	Amortization of deferred gain-reserve development																							(1.4	)		0.5			(0.2	)
	Other revenue and fees					85.9			54.9			100.2			87.9			70.8			75.1			72.1			81.5			70.6
	Net investment income					681.7			680.7			693.3			653.1			654.8			657.4			652.4			667.3			654.6
	Earnings in Unconsolidated Affiliates					0.9			0.0			0.4			4.3						(0.6	)
	Realized gains (losses) on investments					(20.5	)		(17.9	)		(37.1	)		(16.8	)		(103.5	)		(81.5	)		(37.1	)		(58.9	)		(89.6	)
	Gains (losses) on derivatives					(0.1	)		0.3			(0.5	)		(8.9	)		0.1			0.4			0.3			0.3			(1.9	)
				Total Revenue		1702.7			1593.5			1618.0			1463.8			1126.0			1157.5			1163.4			1188.6			1099.3
Benefits and Expenses
	Ins. benefits paid or provided:
			Life and annuity policy benefits			418.9			373.6			422.6			302.8			176.1			191.5			229.7			214.0			187.1
			Div accum & div to policyholders			18.9			20.2			18.0			26.6			17.8			18.2			17.2			22.8			14.4
			Interest credited to policy bal			367.1			369.7			378.7			390.6			406.2			382.5			417.4			411.1			409.3
			Health policy benefits			101.8			91.5			83.8			25.0			3.3			33.9			7.3			5.1			2.3
	Reserve developments on Reins. business sold																				22.2			270.0			13.2
				Total insurance benefits		906.7			855.0			903.1			744.9			603.4			648.3			941.6			666.2			613.0
	Underwriting, acquisition, insurance and other expenses:
			Commissions			216.9			217.6			207.9			217.9			144.2			148.6			124.6			162.0			125.7
			Other volume related expenses			43.7			58.9			53.1			29.1			54.7			65.5			63.9			72.6			71.5
			Operating and administrative expenses			262.1			257.7			279.7			314.9			220.7			217.0			225.7			264.6			217.8
			Restructuring charges			1.0			5.9			(0.0	)		31.0						1.6			(2.1	)		(1.7	)		5.5
			Taxes, licenses and fees			35.3			29.2			30.0			28.4			36.6			23.5			24.1			22.6			30.6
			Par policyholder interests			(0.0	)		0.0
			Foreign exchange			(2.0	)		2.0			(2.5	)		1.1			0.0			0.6			0.4			(0.6	)		(0.0	)
				Subtotal		557.1			571.4			568.3			622.4			456.2			456.7			436.6			519.4			451.2
			Deferral of acquisition costs			(161.1	)		(175.1	)		(183.4	)		(194.5	)		(147.9	)		(156.1	)		(155.5	)		(167.8	)		(148.5	)
			DAC amortization			110.1			82.9			118.0			56.8			70.4			100.5			113.0			62.8			100.1
				DAC deferral net of amortization		(51.0	)		(92.2	)		(65.4	)		(137.7	)		(77.5	)		(55.5	)		(42.5	)		(105.0	)		(48.4	)
			PVIF amortization			33.3			23.6			34.4			21.8			21.3			31.9			40.2			43.0			22.7
			Other intangibles amortization			4.3			2.6			2.6			2.5			2.2			2.0			2.0			2.0			2.0
				Total underwriting, acquisition, insurance and other expenses		543.6			505.4			539.9			509.0			402.2			435.1			436.4			459.4			427.5
	Goodwill amortization					10.9			10.9			10.9			10.7
	Interest					34.4			32.0			29.6			25.0			24.8			24.6			23.7			23.5			23.3
		Total Benefits and Expenses				1495.6			1403.3			1483.5			1289.7			1030.4			1108.1			1401.7			1149.0			1063.9
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes						207.1			190.2			134.5			174.2			95.5			49.4			(238.3	)		39.6			35.4
	Federal income taxes					53.2			47.8			26.4			17.3			9.9			(0.8	)		(103.5	)		(8.3	)		(6.1	)
Income Before Cumulative Effect of Accounting Changes						153.9			142.4			108.0			156.9			85.6			50.1			(134.8	)		47.9			41.6
	Cumulative effect of accounting changes					(4.3	)		(11.3	)					(0.0	)
				Net Income		149.6			131.1			108.0			156.9			85.6			50.1			(134.8	)		47.9			41.6
Less:
	Restructuring charges					(0.7	)		(3.9	)		0.0			(20.2	)					(1.0	)		1.3			1.7			(3.6	)
	Realized gains (losses) on investments					(13.4	)		(11.5	)		(23.8	)		(20.0	)		(67.6	)		(52.7	)		(23.6	)		(33.3	)		(58.2	)
	Gains (losses) on derivatives					(0.1	)		0.2			(0.4	)		(4.6	)		0.1			0.3			0.1			0.2			(1.2	)
	Reserve increase on business sold through reinsurance																				(14.4	)		(176.4	)		(8.2	)		(0.1	)
	Gain on sale of subsidiaries														15.0												(9.4	)
	Cumulative Effect of Accounting Changes					(4.3	)		(11.3	)					(0.0	)
				Income from Operations		168.0			157.5			132.2			186.7			153.1			118.0			63.7			96.8			104.8
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period						3,070.5			2,963.4			3,129.1			3,087.2			2,885.3			3,114.9			3,056.6			2,868.7			2,970.9
Deferral						161.1			175.1			183.4			194.5			147.9			156.1			155.5			167.8			148.5
Amortization						(110.1	)		(82.9	)		(118.0	)		(56.8	)		(70.4	)		(100.5	)		(113.0	)		(62.8	)		(100.1	)
Included in Total Benefits and Expenses						51.0			92.2			65.4			137.7			77.5			55.5			42.5			105.0			48.4
	Adjustment related to realized (gains) losses on securities available-for-sale					21.7			17.8			23.9			49.5			41.9			32.5			22.9			17.8			30.0
	Adjustment related to unrealized (gains) losses on securities available-for-sale					(154.1	)		55.8			(157.0	)		68.1			114.9			(152.1	)		(267.1	)		(34.2	)		(119.4	)
Foreign currency translation adjustment						(32.4	)		(0.2	)		23.8			(7.2	)		(12.2	)		41.7			13.8			13.7			(10.9	)
Disposition of business															(425.9	)
Other						6.7			0.1			2.1			(24.2	)		7.5			(35.7	)		(0.0	)
Balance at end-of-period						2,963.4			3,129.1			3,087.2			2,885.3			3,114.9			3,056.6			2,868.7			2,970.9			2,919.0
Roll Forward of Present Value of In-Force
Balance at beginning-of-period						1,483.3			1,436.0			1,412.3			1,387.4			1,362.5			1,336.1			1,321.4			1,286.9			1,250.1
	Amortization					(33.3	)		(23.6	)		(34.4	)		(21.8	)		(21.3	)		(31.9	)		(40.2	)		(43.0	)		(22.7	)
	Foreign currency translation adjustment					(14.0	)		(0.1	)		10.3			(3.2	)		(5.1	)		17.4			5.7			6.1			(4.3	)
	Other											(0.7	)								(0.1	)					0.1
Balance at end-of-period						1,436.0			1,412.3			1,387.4			1,362.5			1,336.1			1,321.4			1,286.9			1,250.1			1,223.1

3/31/2003 PAGE 11

Reconciliation of Business Segments to Consolidated Balance Sheets
Unaudited [Millions of Dollars]

															Investment
			Lincoln Retirement						Life Insurance						Management				Lincoln UK
			Mar			Dec			Mar			Dec			Mar		Dec		Mar		Dec
ASSETS			2003			2002			2003			2002			2003		2002		2003		2002
Investments
	Corporate bonds			13496.9			12928.9			8103.9			7879.1			502.0		494.5		615.2		621.0
	U.S. government bonds			53.3			41.1			59.1			87.0			0.1		0.1		39.9
	Foreign government bonds			297.0			259.2			139.9			136.5			1.6		1.5		313.2		307.5
	Asset/Mortgage backed securities			3227.4			3243.5			913.9			937.0			46.1		47.2
	State and municipal bonds			80.0			67.8			37.2			30.4
	Preferred stocks-redeemable			67.1			55.6			29.5			12.5			8.9		8.9
	Common stocks			0.1			0.1			2.4			1.5							51.9		128.9
	Preferred stocks-equity			33.9			33.6									2.8		2.7
	Mortgage loans			2220.4			2210.3			1593.8			1572.6			81.7		81.2		0.3		0.3
	Real estate																			0.2		0.2
	Policy loans			457.3			469.5			1464.1			1468.2							7.5		7.9
	Other long-term investments			31.8			27.9			18.6			23.7
		Total Investments		19965.1			19337.5			12362.5			12148.5			643.2		636.1		1028.2		1066.0
Allocated investments				3502.7			3757.4			1197.5			1250.7			86.2		100.0
Notes receivable from LNC				352.9			358.8			160.9			207.7			52.6		51.7
Invest in unconsol affiliates
Cash and invested cash				(78.2	)		(76.7	)		(22.8	)		(22.7	)		60.3		52.9		186.2		206.7
Property and equipment				2.8			1.5			6.4			7.7			43.0		44.7		18.2		19.0
Premium and fees receivable				(0.2	)		0.7			14.9			32.0			34.6		37.0
Accrued investment income				257.2			256.7			186.8			171.7			9.6		9.0		24.4		22.2
Assets held in separate accounts				25800.2			26934.1			1322.8			1310.4							4748.0		5077.9
Federal income tax recoverable
Amount recoverable from reinsurers				1204.6			1169.7			932.4			920.5
Deferred acquisition costs				820.6			855.8			1447.7			1424.5							569.1		597.6
Other intangible assets																39.8		41.8
Present value of in-force				120.4			122.7			872.7			890.1							230.1		237.4
Goodwill				64.1			64.1			855.1			855.1			300.7		300.7		13.1		13.3
Other				142.6			114.1			392.8			395.6			177.3		187.4		92.2		87.0
		Total Assets		52154.8			52896.4			19729.6			19591.6			1447.3		1461.4		6909.5		7327.1

			Corporate and						Consolidating
			Other Operations						Adjustments						Consolidated
			Mar			Dec			Mar			Dec			Mar		Dec
ASSETS			2003			2002			2003			2002			2003		2002
Investments
	Corporate bonds			4218.1			4011.1									26936.1		25934.7
	U.S. government bonds			384.6			385.4									537.0		513.6
	Foreign government bonds			454.9			405.6									1206.6		1110.2
	Asset/Mortgage backed securities			772.8			787.8									4960.1		5015.5
	State and municipal bonds			17.8			16.2									134.9		114.4
	Preferred stocks-redeemable			6.5			2.1									112.0		79.0
	Common stocks			90.5			97.4									145.0		228.0
	Preferred stocks-equity			67.8			72.9									104.5		109.2
	Mortgage loans			339.3			341.0									4235.5		4205.5
	Real estate			241.8			279.5									242.0		279.7
	Policy loans															1928.8		1945.6
	Other long-term investments			415.4			412.8			(0.0	)		(0.0	)		465.7		464.4
		Total Investments		7009.4			6811.9			(0.0	)		(0.0	)		41008.4		39999.9
Allocated investments				(128.2	)		(468.2	)		(4658.2	)		(4639.9	)		0.0		(0.0	)
Notes receivable from LNC				(566.5	)		(617.6	)		0.1			(0.5	)		0.0		0.0
Invest in unconsol affiliates
Cash and invested cash				1490.1			1530.4									1635.5		1690.5
Property and equipment				169.0			169.3									239.4		242.1
Premium and fees receivable				144.7			143.2									194.0		212.9
Accrued investment income				89.2			77.0									567.2		536.7
Assets held in separate accounts										2904.2			2856.0			34775.2		36178.3
Federal income tax recoverable										89.1			317.7			89.1		317.7
Amount recoverable from reinsurers				5443.9			5450.1			(257.5	)		(260.3	)		7323.5		7280.0
Deferred acquisition costs				2.1			2.2			79.5			90.8			2919.0		2970.9
Other intangible assets																39.8		41.8
Present value of in-force																1223.1		1250.1
Goodwill				(0.0	)		(0.0	)								1233.0		1233.2
Other				823.0			853.2			(377.3	)		(407.0	)		1250.6		1230.3
		Total Assets		14476.6			13951.4			(2220.2	)		(2043.4	)		92497.6		93184.6

3/31/2003 PAGE 12

Reconciliation of Business Segments to Consolidated Balance Sheets
Unaudited [Millions of Dollars]

														Investment
				Lincoln Retirement				Life Insurance						Management						Lincoln UK
				Mar		Dec		Mar			Dec			Mar			Dec			Mar			Dec
LIABILITIES and SHAREHOLDERS' EQUITY				2003		2002		2003			2002			2003			2002			2003			2002
Liabilities
Insurance and Inv Contract Liabilities:
	Life and annuity reserves				2713.1		2718.5		13929.6			13780.9									1268.0			1336.2
	Health reserves								0.3			0.3									47.2			48.5
	Unpaid claims — life and health				50.6		48.3		85.3			108.3									50.0			44.7
	Unearned premiums								0.0			0.0
	Premium deposit funds				20456.4		19921.6		19.1			18.3									30.0			30.8
	Participating policyholders’ funds								166.3			156.7
	Other policyholders’ funds								607.1			603.5
	Liab related to separate accounts				25800.2		26934.1		1322.8			1310.4									4748.0			5077.9
			Total Insurance and Inv Contract Liabilities		49020.3		49622.4		16130.6			15978.4									6143.1			6538.1
Federal income taxes					297.1		220.7		152.0			97.3			26.8			30.1			(1.9	)		(7.2	)
Short-term debt
Long-term debt
Minority Interest in pref. securities of sub.
Notes payable to LNC					0.2		0.2
Other liabilities					136.3		94.5		459.5			443.9			844.3			835.7			207.0			201.3
Deferred gain on indemnity reinsurance
			Total Liabilities		49453.9		49937.8		16742.1			16519.6			871.1			865.8			6348.2			6732.2
Net unrealized gains (losses) on securities					413.6		309.8		215.2			178.0			0.6			6.4			37.9			25.8
Gains (losses) on derivatives*					11.5		10.6		14.7			16.7
Other shareholders’ equity					2275.8		2638.2		2758.3			2878.0			578.1			591.9			516.2			602.1
S/Hs’ equity-minimum pension liability adjustment									(0.7	)		(0.7	)		(2.6	)		(2.6	)		(32.4	)		(33.0	)
Cumulative effect of accounting change
		Shareholders’ Equity			2700.9		2958.6		2987.5			3072.0			576.2			595.7			521.8			595.0
		Total Liabilities and S/Hs’ Equity			52154.8		52896.4		19729.6			19591.6			1447.3			1461.4			6870.0			7327.1

				Corporate and						Consolidating
				Other Operations						Adjustments									Consolidated
				Mar			Dec			Mar			Dec			Mar				Dec
LIABILITIES and SHAREHOLDERS' EQUITY				2003			2002			2003			2002			2003				2002
Liabilities
Insurance and Inv Contract Liabilities:
	Life and annuity reserves				2209.4			2209.4			(94.5	)		(94.7	)		20025.6				19950.3
	Health reserves				2642.3			2640.2									2689.9				2689.0
	Unpaid claims — life and health				577.3			577.1									763.1				778.4
	Unearned premiums				141.0			141.2									141.1				141.2
	Premium deposit funds				39.1			40.1			525.9			508.1			21070.5				20518.8
	Participating policyholders’ funds																166.3				156.7
	Other policyholders’ funds							7.4									607.1				610.9
	Liab related to separate accounts										2904.2			2856.0			34775.2				36178.3
			Total Insurance and Inv Contract Liabilities		5609.1			5615.4			3335.6			3269.4			80238.8				81023.6
Federal income taxes					(563.9	)		(659.4	)		89.8			318.5
Short-term debt					125.4			153.0									125.4				153.0
Long-term debt					1118.6			1119.2									1118.6				1119.2
Minority Interest in pref. securities of sub					390.8			392.7									390.8				392.7
Notes payable to LNC					285.4			308.7			(285.4	)		(308.9	)		0.2				(0.0	)
Other liabilities					3269.4			3277.6			(701.3	)		(681.5	)		4214.8				4171.5
Deferred gain on indemnity reinsurance					959.0			977.1									959.0				977.1
			Total Liabilities		11193.8			11184.4			2438.8			2597.4			87047.6				87837.2
Net unrealized gains (losses) on securities					213.1			228.2			5.2			5.2			872.0				753.3
Gains (losses) on derivatives*					(1.2	)		1.0									25.0				28.3
Other shareholders’ equity					3132.5			2599.3			(4664.2	)		(4645.9	)		4650.3				4663.7
Minimum pension liability adjustment					(61.6	)		(61.6	)								(97.2	)			(97.8	)
Cumulative effect of accounting change
		Shareholders’ Equity			3282.8			2767.0			(4659.0	)		(4640.7	)		5450.0				5347.5
		Total Liabilities and S/Hs’ Equity			14476.6			13951.4			(2220.2	)		(2043.4	)		92497.6				93184.6

*     Cumulative effect of accounting change recorded upon the adoption of FAS 133 in the 1st quarter of 2001 is a component of gains (losses) on derivatives in the 1st quarter of 2002.

3/31/2003 PAGE 13

Five Year Comparative Balance Sheet
Unaudited [Millions of Dollars except Common Share Data]

			1998		1999			2000		2001			2002
ASSETS
Investments
	Corporate bonds			22505.2		21119.5			21249.7		23105.1			25934.7
	U.S. government bonds			1134.6		538.3			542.9		410.5			513.6
	Foreign government bonds			1321.2		1447.5			1321.1		1174.7			1110.2
	Mortgage backed securities			5080.5		4404.0			4160.4		3524.7			5015.5
	State and municipal bonds			16.7		14.7			14.6		44.7			114.4
	Preferred stocks-redeemable			174.6		164.7			161.2		85.9			79.0
	Common stocks			463.1		514.5			436.6		319.3			228.0
	Preferred stocks-equity			79.8		89.5			113.1		151.2			109.2
	Mortgage loans			4393.1		4735.4			4663.0		4535.5			4205.5
	Real estate			488.7		256.2			282.0		267.9			279.7
	Policy loans			1840.0		1892.4			1960.9		1939.7			1945.6
	Other long-term investments			432.0		401.8			463.3		553.8			464.4
		Total Investments		37929.5		35578.4			35368.6		36113.1			39999.9
Invest in unconsol affiliates				18.8		25.8			6.4		8.1
Cash and invested cash				2433.4		1895.9			1927.4		3095.5			1690.5
Property and equipment				174.8		203.8			228.2		257.5			242.1
Premiums and fees receivable				246.2		259.6			296.7		400.1			212.9
Accrued investment income				528.5		533.2			546.4		563.5			536.7
Assets held in separate accounts				43408.9		53654.2			50579.9		44833.4			36178.3
Federal income taxes recoverable				204.1		345.0			207.5		55.5			317.7
Amounts recoverable from reinsurers				3127.1		3954.3			3747.7		6030.4			7280.0
Deferred acquisition costs				1964.4		2800.3			3070.5		2885.3			2970.9
Other intangible assets				95.1		92.3			73.7		50.1			41.8
Present value of in-force				1753.3		1654.2			1483.3		1362.5			1250.1
Goodwill				1484.3		1423.0			1286.0		1211.8			1233.2
Other				468.0		675.7			1021.6		1174.9			1230.3
		Total Assets		93836.3		103095.7			99844.1		98041.6			93184.6
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
	Life and annuity reserves			16434.2		17071.4			17841.2		17917.0			19950.3
	Health reserves			2600.1		2507.8			2523.8		2537.9			2689.0
	Unpaid claims-life and health			1043.4		1269.8			1316.6		1087.5			778.4
	Unearned premiums			62.3		75.8			46.5		66.9			141.2
	Premium deposit funds			20171.9		19624.1			17715.5		18585.0			20518.8
	Participating policyholders’ funds			142.7		132.0			139.4		100.2			156.7
	Other policyholders’ funds			438.4		472.6			522.2		562.7			610.9
	Liab related to separate accounts			43408.9		53654.2			50579.9		44833.4			36178.3
		Total Ins and Inv Contr Liabilities		84301.9		94807.7			90685.1		85690.6			81023.6
Federal income taxes
Short-term debt				314.6		460.2			312.9		350.2			153.0
Long-term debt				712.2		712.0			712.2		861.8			1119.2
Minority Interest — pref sec of a sub				745.0		745.0			745.0		474.7			392.7
Other liabilities				2374.6		2107.0			2434.7		4216.1			4171.5
Deferred gain on indemnity reinsurance											1144.5			977.1
		Total Liabilities		88448.3		98831.9			94890.0		92737.8			87837.2
S/Hs’ equity-unrealized gains (losses)-cont op				552.4		(465.7	)		12.0		199.6			781.6
S/Hs’ equity-foreign currency				50.0		30.0			21.9		(8.1	)		50.8
S/Hs’ equity-minimum pension liability adjustment											(36.0	)		(97.8	)
S/Hs’ equity-other				4785.6		4699.5			4920.1		5130.6			4612.9
Cumulative effect of accounting change											17.6
		Total Shareholders’ Equity		5387.9		4263.9			4954.1		5303.8			5347.5
		Total Liabilities and Shareholders’ Equity		93836.3		103095.7			99844.1		98041.6			93184.6
Shareholders’ Equity Per Share
[Book Value, Excluding AOCI]			$	23.62	$	23.98		$	25.74	$	27.39		$	25.97
Common shares outstanding				202.6		196.0			191.2		187.3			177.6

3/31/2003 PAGE 14

Quarterly Balance Sheet
Unaudited [Millions of Dollars except Common Share Data]

			Mar		Jun			Sep		Dec			Mar			Jun			Sep			Dec			Mar
			2001		2001			2001		2001			2002			2002			2002			2002			2003
ASSETS
Investments
	Corporate bonds			21855.2		22116.6			23424.3		23105.1			23470.4			23993.6			25484.6			25934.7			26936.1
	U.S. government bonds			536.6		510.0			467.7		410.5			429.1			441.6			495.3			513.6			537.0
	Foreign government bonds			1240.8		1236.3			1160.3		1174.7			1180.1			1120.1			1038.6			1110.2			1206.6
	Mortgage backed securities			4009.8		3844.6			3765.6		3524.7			3613.9			4031.0			4843.7			5015.5			4960.1
	State and municipal bonds			14.7		14.1			14.4		44.7			62.6			58.8			97.8			114.4			134.9
	Preferred stocks — redeemable			154.1		152.2			99.3		85.9			84.6			79.6			76.8			79.0			112.0
	Common stocks			388.6		373.3			311.2		319.3			284.4			267.7			237.2			228.0			145.0
	Preferred stocks-equity			170.9		160.8			166.5		151.2			154.2			151.8			160.3			109.2			104.5
	Mortgage loans			4641.2		4652.8			4663.1		4535.5			4448.2			4395.4			4285.2			4205.5			4235.5
	Real estate			308.1		306.9			288.8		267.9			258.2			258.7			286.4			279.7			242.0
	Policy loans			1947.0		1947.4			1943.4		1939.7			1918.0			1906.1			1899.0			1945.6			1928.8
	Other long-term investments			477.4		480.9			483.4		553.8			459.6			456.0			457.7			464.4			465.7
		Total Investments		35744.5		35796.0			36788.0		36113.1			36363.1			37160.1			39362.6			39999.9			41008.4
Invest in unconsol affiliates				7.3		6.1			6.5		8.1			8.1			7.5
Cash and invested cash				2015.2		1501.9			1996.3		3095.5			1699.5			2265.4			1599.9			1690.5			1635.5
Property and equipment				242.1		251.4			261.0		257.5			266.4			253.5			252.7			242.1			239.4
Premiums and fees receivable				282.8		303.7			264.5		400.1			376.3			461.4			577.2			212.9			194.0
Accrued investment income				581.9		573.2			615.1		563.5			577.1			556.3			568.2			536.7			567.2
Assets held in separate accounts				44506.2		47140.2			39479.8		44833.4			44916.7			40579.6			34069.0			36178.3			34775.2
Federal income taxes recoverable				136.3		210.5			71.6		55.5			593.4			482.5			339.0			317.7			89.1
Amount recoverable from reinsurers				3706.4		3662.0			3818.3		6030.4			6096.3			6509.9			7094.5			7280.0			7323.5
Deferred acquisition costs				2963.4		3129.1			3087.2		2885.3			3114.9			3056.6			2868.7			2970.9			2919.0
Other intangible assets				69.3		66.7			64.1		50.1			47.9			45.8			43.8			41.8			39.8
Present value of in-force				1436.0		1412.3			1387.4		1362.5			1336.1			1321.4			1286.9			1250.1			1223.1
Goodwill				1274.5		1263.6			1253.2		1211.8			1211.5			1212.4			1232.7			1233.2			1233.0
Other				1186.3		1147.7			1149.4		1174.9			1280.9			1200.6			1187.1			1230.3			1250.6
		Total Assets		94152.1		96464.2			90242.4		98041.6			97888.5			95113.3			90482.2			93184.6			92497.6
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
	Life and annuity reserves			17733.0		17865.3			17990.8		17917.0			18014.6			18611.2			19142.5			19950.3			20025.6
	Health reserves			2534.8		2533.9			2573.2		2537.9			2492.4			2176.1			2448.3			2689.0			2689.9
	Unpaid claims-life and health			1255.3		1136.5			1206.6		1087.5			1153.6			1086.1			1100.9			778.4			763.1
	Unearned premiums			45.9		19.0			8.1		66.9			66.5			154.3			185.8			141.2			141.1
	Premium deposit funds			17667.1		17715.9			18509.7		18585.0			18669.6			19157.8			20054.4			20518.8			21070.5
	Participating policyholders’ funds			145.0		135.2			118.3		100.2			98.6			91.9			90.5			156.7			166.3
	Other policyholders’ funds			532.1		541.4			554.3		562.7			571.9			584.7			595.7			610.9			607.1
	Liab related to separate accounts			44506.2		47140.2			39479.8		44833.4			44916.7			40579.6			34069.0			36178.3			34775.2
		Total Ins and Inv Contr Liabilities		84419.3		87087.2			80440.8		85690.6			85983.9			82441.8			77687.1			81023.6			80238.8
Federal income taxes
Short-term debt				415.3		351.3			539.0		350.2			510.2			211.0			120.0			153.0			125.4
Long-term debt				712.3		712.4			712.4		861.8			861.8			1112.3			1118.1			1119.2			1118.6
Minority Interest — pref sec of a sub				745.0		745.0			305.0		474.7			376.2			380.0			390.6			392.7			390.8
Notes payable to LNC														(0.0	)		0.0			(0.0	)		(0.0	)		0.2
Other liabilities				2734.2		2479.4			2840.2		4216.1			3864.6			4501.1			4661.9			4171.5			4214.8
Deferred gain on indemnity reinsurance											1144.5			1118.6			1115.2			1069.5			977.1			959.0
		Total Liabilities		89026.0		91375.3			84837.4		92737.8			92715.3			89761.4			85047.1			87837.2			87047.6
S/Hs’ equity-unrealized gns (losses)- inv.				190.4		76.2			247.9		195.7			31.8			325.7			817.5			753.3			872.0
S/Hs’ equity- gains (losses)-derivatives*				5.7		9.4			2.9		3.9			22.6			22.7			27.3			28.3			25.0
S/Hs’ equity-foreign currency				4.2		(15.3	)		6.9		(8.0	)		(20.8	)		22.0			35.4			50.8			39.8
S/Hs’ equity-minimum pension liability adj											(36.0	)		(35.2	)		(37.8	)		(35.2	)		(97.8	)		(97.2	)
S/Hs’ equity-other				4908.2		5001.1			5129.8		5130.6			5174.7			5019.5			4590.1			4612.9			4610.5
Cumulative effect of accounting change				17.6		17.6			17.4		17.6
		Total Shareholders’ Equity		5126.1		5088.9			5405.0		5303.8			5173.2			5351.9			5435.1			5347.5			5450.0
		Total Liabilities and Shareholders’ Equity		94152.1		96464.2			90242.4		98041.6			97888.5			95113.3			90482.2			93184.6			92497.6
Shareholders’ Equity Per Share
[Book Value, Excluding AOCI]			$	26.09	$	26.58		$	27.03	$	27.39		$	27.54		$	27.21		$	25.87		$	25.97		$	25.94
Common shares outstanding				188.1		188.2			189.8		187.3			187.9			184.5			177.5			177.6			177.7

*     Cumulative effect of accounting change recorded upon the adoption of FAS 133 in the 1st quarter of 2001 is a component of gains (losses) on derivatives in the 1st quarter of 2002.

3/31/2003 PAGE 15

Lincoln Retirement
Income Statements & Operational Data
Unaudited [Millions of Dollars]

For the Year Ended December 31					1998			1999			2000			2001			2002
Revenue
	Premiums					53.9			65.2			64.3			77.5			47.4
	Surrender charges					33.5			37.9			41.8			31.2			31.2
	Expense assessments					430.7			501.3			591.3			508.6			446.2
	Other revenue and fees					1.7			14.5			11.0			16.7			3.3
	Net investment income					1530.8			1509.1			1430.5			1399.1			1457.5
	Realized gains (losses) on investments					17.5			(12.1	)		(5.2	)		(64.5	)		(196.6	)
	Gains (losses) on derivatives					0.0			0.0			0.0			(0.3	)		(1.2	)
				Total Revenue		2068.1			2115.8			2133.7			1968.3			1787.7
Operating Benefits and Expenses
	Benefits paid or provided:
		Benefits				271.6			259.1			254.7			263.9			314.1
		Interest credited to policy bal.				955.2			925.2			866.1			863.8			903.8
				Total insurance benefits		1226.8			1184.3			1120.8			1127.7			1217.9
	Underwriting, acquisition, insurance and other expenses Commissions					236.7			341.4			326.8			336.3			320.8
		Other volume related expenses				33.1			42.8			52.0			49.7			64.6
		Operating and administrative expenses				194.0			208.6			200.6			231.8			231.3
		Restructuring charges				0.0			0.0			0.0			2.0			1.6
		Taxes, licenses and fees				13.8			0.3			9.3			13.7			11.5
		Par policyholder interests				0.0			0.0			0.0			0.0			0.0
				Subtotal		477.6			593.2			588.8			633.6			629.8
		Deferral of acquisition costs													(240.9	)		(243.9	)
		DAC amortization													125.5			157.7
				DAC deferral net of amortization		9.7			(47.7	)		(37.5	)		(115.4	)		(86.2	)
		PVIF amortization				11.4			15.3			24.2			14.7			31.8
		Other intangibles amortization				0.0			0.0			0.0			0.0			0.0
				Total underwriting, acquisition, insurance and other expenses		498.8			560.8			575.5			532.8			575.4
	Goodwill amortization					2.2			2.0			(0.6	)		1.2			0.0
				Total Benefits and Expenses		1727.8			1747.1			1695.7			1661.8			1793.3
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes						340.3			368.7			438.0			306.5			(5.6	)
	Federal income taxes					66.5			77.2			79.4			34.1			(59.3	)
Income Before Cumulative Effect of Accounting Changes						273.8			291.5			358.6			272.4			53.7
	Cumulative effect of accounting changes					0.0			0.0			0.0			(7.3	)		0.0
				Net Income		273.8			291.5			358.6			265.1			53.7
Less:
	Realized gains (losses) on investments					11.4			(7.9	)		(3.4	)		(42.3	)		(127.8	)
	Gains (losses) on derivatives					0.0			0.0			0.0			(0.2	)		(0.8	)
	Restructuring charges					0.0			0.0			0.0			(1.3	)		(1.0	)
	Cumulative effect of accounting changes					0.0			0.0			0.0			(7.3	)		0.0
				Income from Operations		262.4			299.4			362.0			316.2			183.4
Effective tax rate on Income from Operations						18.7	%		21.4	%		18.3	%		15.3	%		5.4	%
Revenue						2068.1			2115.8			2133.7			1968.3			1787.7
Less:
Realized gains (losses) on investments						17.5			(12.1	)		(5.2	)		(64.5	)		(196.6	)
Gains (losses) on derivatives						0.0			0.0			0.0			(0.3	)		(1.2	)
			Operating Revenue			2050.6			2128.0			2138.9			2033.1			1985.5
Average capital						1592.6			1562.0			1601.8			1829.3			2337.5
Net Income return on average capital						17.2	%		18.7	%		22.4	%		14.5	%		2.3	%
Income from operations return on average capital						16.5	%		19.2	%		22.6	%		17.3	%		7.8	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period															812.5			912.8
Deferral															240.9			243.9
Amortization															(125.5	)		(157.7	)
	Included in Total Benefits and Expenses														115.4			86.2
	Adjustment related to realized (gains) losses on securities available-for-sale														68.2			73.0
	Adjustment related to unrealized (gains) losses on securities available-for-sale														(90.0	)		(201.4	)
Other*															6.7			(14.8	)
Balance at end-of-period															912.8			855.8
Roll Forward of Present Value of In-Force
Balance at beginning-of-period															169.2			154.5
	Amortization														(14.7	)		(31.9	)
Other
Balance at end-of-period															154.5			122.6

*Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

Note: 2001 and 2002 have been restated for the adoption of the fair value method of accounting for stock options under FAS 123.

3/31/2003 PAGE 16

Lincoln Retirement
Income Statements & Operational Data
Unaudited [Millions of Dollars]

				Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
				2001			2001			2001			2001			2002			2002			2002			2002			2003
Revenue
	Premiums				19.1			32.5			13.2			12.7			12.2			13.1			13.4			8.7			5.5
	Surrender charges				9.1			8.5			6.5			7.2			7.9			7.2			8.7			7.4			6.9
	Expense assessments				133.6			130.3			124.9			119.7			121.0			120.7			103.9			100.6			97.6
	Other revenue and fees				1.7			3.9			1.2			10.0			5.8			(1.3	)		(4.0	)		2.7			(1.4	)
	Net investment income				349.3			347.0			353.7			349.1			356.6			359.1			363.5			378.3			367.0
	Realized gains (losses) on investments				(2.2	)		(10.3	)		(20.8	)		(31.3	)		(50.5	)		(56.2	)		(43.8	)		(46.1	)		(76.8	)
	Gains (losses) on derivatives				(0.2	)		0.2			(0.5	)		0.2			0.0			(0.1	)		(1.1	)		(0.1	)		(1.0	)
			Total Revenue		510.4			512.1			478.2			467.5			453.0			442.6			440.7			451.4			397.8
Benefits and Expenses
	Benefits paid or provided:
		Benefits			69.8			72.6			66.3			55.3			55.4			72.5			107.8			78.4			65.0
		Interest credited to policy balances			209.4			209.7			217.2			227.5			226.1			221.8			224.2			231.7			220.1
			Total insurance benefits		279.2			282.3			283.5			282.8			281.5			294.3			332.0			310.1			285.1
	Underwriting, acquisition, insurance and other expenses:
		Commissions			72.6			85.8			81.1			96.7			82.4			82.5			83.0			72.8			66.8
		Other volume related expenses			11.2			12.8			12.7			13.1			10.0			16.9			19.6			18.1			14.0
		Operating and administrative expenses			53.0			54.0			56.9			68.0			54.6			53.8			53.0			69.9			54.0
		Restructuring charges			1.0			1.0			0.0			0.0			0.0			1.6			0.0			0.0			0.0
		Taxes, licenses and fees			4.3			2.7			2.2			4.5			4.7			4.2			3.0			(0.5	)		5.7
		Par policyholder interests			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Subtotal		142.1			156.3			152.9			182.3			151.8			159.0			158.6			160.4			140.4
		Deferral of acquisition costs			(50.2	)		(60.2	)		(58.7	)		(71.9	)		(61.7	)		(60.8	)		(66.0	)		(55.3	)		(47.8	)
		DAC amortization			40.7			28.3			35.6			20.9			32.7			48.3			47.1			29.6			31.0
			DAC deferral net of amortization		(9.5	)		(31.9	)		(23.0	)		(51.0	)		(29.1	)		(12.6	)		(18.9	)		(25.7	)		(16.8	)
		PVIF amortization			4.6			4.1			4.5			1.4			3.8			3.9			4.1			20.0			2.3
		Other intangibles amortization			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Total underwriting, acquisition, insurance and other expenses		137.2			128.5			134.4			132.7			126.5			150.4			143.8			154.8			125.9
	Goodwill amortization				0.3			0.3			0.3			0.3			0.0			0.0			0.0			0.0			0.0
	Total Benefits and Expenses				416.7			411.1			418.2			415.8			408.0			444.7			475.8			464.8			411.0
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes					93.7			101.0			60.0			51.8			45.1			(2.2	)		(35.1	)		(13.4	)		(13.3	)
	Federal income taxes				14.5			18.4			2.5			(1.4	)		(1.5	)		(11.3	)		(28.0	)		(18.4	)		(20.1	)
Income Before Cumulative Effect of Accounting Changes					79.2			82.6			57.6			53.1			46.6			9.2			(7.0	)		5.0			6.9
	Cumulative effect of accounting changes				(3.6	)		(3.7	)		0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Net Income		75.5			78.9			57.6			53.1			46.6			9.2			(7.0	)		5.0			6.9
Less:
	Realized gains (losses) on investments				(1.4	)		(6.7	)		(13.5	)		(20.7	)		(32.8	)		(36.6	)		(28.0	)		(30.4	)		(50.3	)
	Gains (losses) on derivatives				(0.1	)		0.1			(0.3	)		0.1			0.0			0.1			(0.8	)		(0.0	)		(0.2	)
	Restructuring charges				(0.7	)		(0.6	)		0.0			0.0			0.0			(1.0	)		0.0			0.0			0.0
	Cumulative effect of accounting changes				(3.6	)		(3.7	)
Income from Operations					81.3			89.8			71.4			73.7			79.4			46.8			21.8			35.4			57.4
Effective tax rate on Income from Operations					16.3	%		19.8	%		12.2	%		11.1	%		16.9	%		16.0	%		(121.8	)%		(8.1	)%		11.0	%
Revenue					510.4			512.1			478.2			467.5			453.0			442.6			440.7			451.4			397.8
Less:
Realized gains (losses) on investments					(2.2	)		(10.3	)		(20.8	)		(31.3	)		(50.5	)		(56.2	)		(43.8	)		(46.1	)		(76.8	)
Gains (losses) on derivatives					(0.2	)		0.2			(0.5	)		0.2			0.0			(0.1	)		(1.1	)		(0.1	)		(1.0	)
	Operating Revenue				512.8			522.1			499.5			498.7			503.5			498.8			485.6			497.6			475.5
Average capital					1,798.2			1,787.9			1,904.3			1,826.8			2,044.0			2,394.2			2,409.0			2,502.8			2,526.3
Net Income return on average capital					16.8	%		17.6	%		12.1	%		11.6	%		9.1	%		1.5	%		(1.2	)%		0.8	%		1.1	%
Income from operations return on average capital					18.1	%		20.1	%		15.0	%		16.1	%		15.5	%		7.8	%		3.6	%		5.7	%		9.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter					812.5			762.6			831.3			781.2			912.8			1,031.0			967.8			843.9			855.8
Deferral					50.2			60.2			58.7			71.9			61.7			60.8			66.0			55.3			47.8
Amortization					(40.7	)		(28.3	)		(35.6	)		(20.9	)		(32.7	)		(48.3	)		(47.1	)		(29.6	)		(31.0	)
	Included in Total Benefits and Expenses				9.5			31.9			23.0			51.0			29.1			12.6			18.9			25.7			16.8
	Adjustment related to realized (gains) losses on securities available-for-sale				12.8			4.9			16.4			34.1			25.7			20.9			10.3			16.1			21.8
	Adjustment related to unrealized (gains) losses on securities available-for-sale				(78.6	)		31.9			(89.7	)		46.5			78.2			(96.6	)		(153.1	)		(29.9	)		(73.9	)
Other*					6.5			(0.0	)		0.3			(0.0	)		(14.8	)
Balance at end-of-quarter					762.6			831.3			781.2			912.8			1,031.0			967.8			843.9			855.8			820.6
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter					169.2			164.6			160.4			155.9			154.5			150.7			146.8			142.7			122.7
	Amortization				(4.6	)		(4.1	)		(4.5	)		(1.4	)		(3.8	)		(3.9	)		(4.1	)		(20.0	)		(2.3	)
Other
Balance at end-of-quarter					164.6			160.4			155.9			154.5			150.7			146.8			142.7			122.7			120.4

*Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

3/31/2003 PAGE 17

Lincoln Retirement
Annuity Account Value Roll Forward
Unaudited [Billions of Dollars]

				1998			1999			2000			2001			2002
Fixed Annuities- Bal Beg-of-Year					17.214			18.111			18.210			16.615			18.004
	Gross Deposits				1.452			2.563			2.074			3.342			3.672
	Withdrawals (incl charges) & deaths				(2.468	)		(2.521	)		(3.283	)		(2.448	)		(2.637	)
			Net flows		(1.016	)		0.042			(1.209	)		0.894			1.035
	Transfer from (to) var annuities				(0.356	)		(0.783	)		(1.329	)		(0.428	)		0.108
	Interest credited				0.994			0.840			0.944			0.923			0.940
	Acq of new business/companies				1.274
		Fixed Annuities-Gross			18.111			18.210			16.615			18.004			20.087
Reinsurance Ceded					(1.606	)		(1.419	)		(1.221	)		(1.514	)		(2.003	)
		Fixed Annuities-Bal End-of-Year			16.505			16.791			15.394			16.491			18.085
		Fixed Annuities Incremental Deposits *			1.265			2.310			1.918			3.213			3.600
Variable Annuities-Bal Beg-of-Year					27.346			33.358			41.493			39.427			34.638
	Gross Deposits				2.791			2.553			3.165			3.067			2.743
	Withdrawals (incl charges) & deaths				(3.019	)		(3.760	)		(4.830	)		(3.856	)		(3.325	)
			Net flows		(0.228	)		(1.207	)		(1.665	)		(0.789	)		(0.582	)
	Transfer from (to) fixed annuities				0.389			0.787			1.320			0.428			(0.122	)
	Invest inc & change in mkt value				5.414			8.555			(1.721	)		(4.428	)		(6.497	)
	Acq(sale) of new business/companies				0.437
		Var Annuities-Bal End-of-Year			33.358			41.493			39.427			34.638			27.438
		Variable Annuities Incremental Deposits *			2.641			2.409			2.667			2.624			2.569
Total Annuities — Bal Beg-of-Year					44.560			51.469			59.703			56.042			52.642
	Gross Deposits				4.244			5.116			5.239			6.409			6.415
	Withdrawals (incl charges) & deaths				(5.487	)		(6.281	)		(8.113	)		(6.304	)		(5.962	)
			Net flows		(1.244	)		(1.165	)		(2.874	)		0.105			0.453
	Transfers				0.033			0.004			(0.009	)					(0.013	)
	Interest credited & change in mkt value				6.408			9.395			(0.777	)		(3.505	)		(5.558	)
	Acq of new business/companies				1.711
		Total Gross Annuities-Bal End-of-Year			51.469			59.703			56.042			52.642			47.525
Reinsurance Ceded					(1.606	)		(1.419	)		(1.221	)		(1.514	)		(2.003	)
Total Annuities (Net of Ceded) — Bal End-of-Year					49.862			58.284			54.821			51.129			45.522
		Total Annuities Incremental Deposits *			3.906			4.719			4.585			5.837			6.169
		Var Ann Under Agree — Included above			0.649			0.719			0.941			1.077			1.186
Fixed Annuities — excluding fixed portion of variable contracts
	Deposits							0.709			0.459			1.712			1.844
	Withdrawals							(1.367	)		(2.271	)		(1.604	)		(1.473	)
	Net Flows							(0.658	)		(1.812	)		0.108			0.371
	Gross Fixed Account Values																10.475
	Reinsurance Ceded																(2.003	)
	Net Fixed Account Values																8.473
Variable Annuities — including fixed portion of variable contracts
	Deposits							4.407			4.780			4.697			4.571
	Withdrawals							(4.915	)		(5.842	)		(4.700	)		(4.489	)
	Net Flows							(0.508	)		(1.062	)		(0.003	)		0.082
	Variable Account Values																37.050
Fixed Portion of Variable Contracts
	Deposits							1.853			1.615			1.630			1.828
	Withdrawals							(1.154	)		(1.012	)		(0.844	)		(1.164	)
	Net Flows							0.699			0.603			0.786			0.664
	Fixed Portion of Variable Account Values																9.612
Average Daily Variable Account Values								35.932			41.776			35.573			30.826
Annuity Product Spread Information**
Net Investment Income								7.22	%		7.38	%		7.38	%		6.98	%
Interest Credited								5.13	%		5.24	%		5.33	%		4.87	%
Spread								2.09	%		2.14	%		2.05	%		2.11	%

* Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.

** For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.

3/31/2003 PAGE 18

Lincoln Retirement
Annuity Account Value Roll Forward
Unaudited [Billions of Dollars]

			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
			2000			2000			2000			2001			2001			2001			2001			2002			2002			2002			2002			2003
Fixed Annuities-Bal Beg-of-Quarter				17.614			17.199			16.929			16.615			16.598			16.696			17.317			18.004			18.178			18.679			19.562			20.086
	Gross Deposits			0.490			0.513			0.482			0.560			0.668			0.896			1.218			0.906			0.853			1.091			0.822			0.776
	Withdrawals (incl charges) & deaths			(0.796	)		(0.802	)		(0.810	)		(0.787	)		(0.574	)		(0.525	)		(0.562	)		(0.730	)		(0.551	)		(0.825	)		(0.531	)		(0.524	)
		Net flows		(0.307	)		(0.288	)		(0.328	)		(0.227	)		0.094			0.372			0.656			0.176			0.302			0.265			0.291			0.253
	Transfer from (to) var annuities			(0.346	)		(0.217	)		(0.216	)		(0.014	)		(0.222	)		0.021			(0.213	)		(0.232	)		(0.032	)		0.379			(0.007	)		0.046
	Interest credited			0.238			0.235			0.230			0.225			0.226			0.228			0.244			0.230			0.231			0.238			0.240			0.226
	Acq of new business/companies
		Fixed Annuities-Gross		17.199			16.929			16.615			16.598			16.696			17.317			18.004			18.178			18.679			19.562			20.086			20.611
Reinsurance Ceded				(1.316	)		(1.270	)		(1.221	)		(1.169	)		(1.146	)		(1.266	)		(1.514	)		(1.645	)		(1.770	)		(1.913	)		(2.003	)		(2.075	)
		Fixed Annuities-Bal End-of-Quarter		15.884			15.660			15.394			15.430			15.551			16.051			16.491			16.534			16.910			17.650			18.085			18.537
		Fixed Annuities Incremental Deposits *		0.447			0.464			0.447			0.536			0.611			0.873			1.193			0.881			0.839			1.072			0.808			0.758
Variable Annuities-Bal Beg-of-Quarter				44.640			43.097			42.743			39.427			34.733			36.961			30.506			34.638			35.150			31.206			25.942			27.438
	Gross Deposits			0.793			0.729			0.846			0.887			0.703			0.684			0.793			0.808			0.787			0.603			0.545			0.648
	Withdrawals (incl charges) & deaths			(1.168	)		(1.253	)		(1.199	)		(1.250	)		(0.993	)		(0.795	)		(0.818	)		(0.896	)		(0.866	)		(0.800	)		(0.763	)		(0.806	)
		Net flows		(0.375	)		(0.524	)		(0.353	)		(0.363	)		(0.290	)		(0.111	)		(0.025	)		(0.088	)		(0.079	)		(0.197	)		(0.217	)		(0.158	)
	Transfer from (to) fixed annuities			0.343			0.216			0.212			0.011			0.227			(0.023	)		0.213			0.234			0.032			(0.388	)		0.000			(0.048	)
	Invest inc & change in mkt value			(1.511	)		(0.046	)		(3.175	)		(4.342	)		2.291			(6.321	)		3.944			0.366			(3.897	)		(4.679	)		1.713			(0.759	)
	Acq(sale) of new business/companies
		Var Annuities-Bal End-of-Quarter		43.097			42.743			39.427			34.733			36.961			30.506			34.638			35.150			31.206			25.942			27.438			26.474
		Variable Annuities Incremental Deposits		0.699			0.586			0.650			0.683			0.612			0.604			0.725			0.725			0.744			0.573			0.528			0.634
Total Annuities -Bal Beg-of-Quarter				62.254			60.296			59.672			56.042			51.331			53.657			47.823			52.642			53.328			49.885			45.504			47.524
	Gross Deposits			1.283			1.242			1.328			1.447			1.371			1.580			2.011			1.714			1.640			1.694			1.368			1.424
	Withdrawals (incl charges) & deaths			(1.964	)		(2.055	)		(2.009	)		(2.037	)		(1.567	)		(1.320	)		(1.380	)		(1.626	)		(1.417	)		(1.626	)		(1.294	)		(1.329	)
		Net flows		(0.682	)		(0.812	)		(0.681	)		(0.590	)		(0.196	)		0.261			0.631			0.088			0.223			0.068			0.074			0.095
	Transfers			(0.003	)		(0.001	)		(0.004	)		(0.003	)		0.005			(0.002	)					0.002			0.000			(0.009	)		(0.006	)		(0.002	)
	Interest credited & change in mkt value			(1.273	)		0.189			(2.945	)		(4.117	)		2.517			(6.093	)		4.188			0.596			(3.666	)		(4.441	)		1.953			(0.532	)
	Acq of new business/companies
		Total Gross Annuities-Bal End-of-Quarter		60.296			59.672			56.042			51.331			53.657			47.823			52.642			53.328			49.885			45.504			47.524			47.085
Reinsurance Ceded				(1.316	)		(1.270	)		(1.221	)		(1.169	)		(1.146	)		(1.266	)		(1.514	)		(1.645	)		(1.770	)		(1.913	)		(2.003	)		(2.075	)
Total Annuities (Net of Ceded) — Bal End-of-Qtr				58.981			58.402			54.821			50.162			52.512			46.557			51.128			51.683			48.115			43.590			45.522			45.010
		Total Annuities Incremental Deposits *		1.146			1.050			1.097			1.219			1.223			1.477			1.918			1.606			1.583			1.645			1.336			1.392
		Var Ann Under Agree — Included above		0.868			0.962			0.941			0.904			0.975			0.907			1.077			1.207			1.175			1.083			1.186			1.355
* Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
Fixed Annuities — excluding fixed portion of variable contracts
	Deposits			0.126			0.114			0.085			0.160			0.329			0.489			0.734			0.505			0.430			0.559			0.351			0.408
	Withdrawals			(0.557	)		(0.532	)		(0.570	)		(0.556	)		(0.356	)		(0.340	)		(0.352	)		(0.463	)		(0.267	)		(0.516	)		(0.228	)		(0.316	)
	Net Flows			(0.431	)		(0.417	)		(0.485	)		(0.396	)		(0.027	)		0.149			0.382			0.042			0.163			0.042			0.123			0.093
	Gross Fixed Account Values																								9.761			10.048			10.219			10.475			10.759
	Reinsurance Ceded																								(1.645	)		(1.770	)		(1.913	)		(2.003	)		(2.075	)
	Net Fixed Account Values																								8.116			8.278			8.306			8.473			8.684
Variable Annuities — including fixed portion of variable contracts
	Deposits			1.157			1.128			1.243			1.287			1.042			1.091			1.277			1.209			1.210			1.135			1.017			1.016
	Withdrawals			(1.408	)		(1.523	)		(1.439	)		(1.481	)		(1.211	)		(0.979	)		(1.028	)		(1.163	)		(1.150	)		(1.109	)		(1.066	)		(1.014	)
	Net Flows			(0.251	)		(0.395	)		(0.196	)		(0.194	)		(0.169	)		0.112			0.249			0.046			0.060			0.026			(0.049	)		0.002
	Variable Account Values																								43.568			39.838			35.286			37.050			36.327
Fixed Portion of Variable Contracts
	Deposits			0.364			0.399			0.397			0.400			0.339			0.407			0.484			0.401			0.423			0.532			0.472			0.368
	Withdrawals			(0.240	)		(0.270	)		(0.240	)		(0.231	)		(0.218	)		(0.184	)		(0.210	)		(0.267	)		(0.284	)		(0.309	)		(0.303	)		(0.208	)
	Net Flows			0.124			0.129			0.157			0.169			0.121			0.223			0.274			0.134			0.139			0.223			0.169			0.160
	Fixed Portion of Variable Account Values																								8.418			8.632			9.344			9.612			9.853
Average Daily Variable Account Values				42.182			43.055			39.682			38.180			36.499			34.399			33.216			34.341			33.502			28.023			27.431			26.907
Annuity Product Spread Information**
Net Investment Income				7.41	%		7.40	%		7.37	%		7.50	%		7.45	%		7.33	%		7.26	%		7.15	%		7.11	%		6.87	%		6.89	%		6.61	%
Interest Credited				5.37	%		5.12	%		5.14	%		5.40	%		5.29	%		5.34	%		5.28	%		5.14	%		4.92	%		4.76	%		4.72	%		4.42	%
Spread				2.04	%		2.28	%		2.23	%		2.10	%		2.16	%		1.99	%		1.98	%		2.01	%		2.18	%		2.11	%		2.17	%		2.19	%

* Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.

** For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.

3/31/2003 PAGE 19

Life Insurance Segment
Income Statements
Unaudited [Millions of Dollars]

					1998			1999			2000			2001			2002
Revenue
	Premiums					185.9			235.8			227.3			212.4			203.8
	Surrender charges					52.1			66.3			66.4			66.1			54.1
	Mortality assessments					350.1			444.6			465.2			499.4			501.5
	Expense assessments					146.2			165.8			191.8			191.4			199.5
	Other revenue and fees					2.6			9.8			14.2			17.9			23.7
	Net investment income					642.6			840.1			871.5			910.2			899.1
	Realized gains (losses) on investments					(1.0	)		(2.2	)		(17.4	)		(57.6	)		(98.2	)
	Gains (losses) on derivatives					0.0			0.0			0.0			0.7			1.5
				Total Revenue		1378.5			1760.4			1819.0			1840.6			1785.0
Benefits and Expenses
	Benefits paid or provided:
			Benefits			371.3			430.4			411.5			418.6			427.4
			Div accum & div to policyholders			70.7			81.5			80.8			78.5			76.0
			Interest credited to policy bal			393.1			493.8			525.4			569.9			598.6
				Total insurance benefits		835.1			1005.8			1017.8			1067.0			1101.9
	Underwriting, acquisition, insurance and other expenses:
			Commissions			107.5			163.4			152.8			142.1			139.8
			Other volume related expenses			122.7			185.6			200.9			176.4			190.4
			Operating and administrative expenses			146.0			171.2			164.4			166.8			162.2
			Restructuring Charges			30.8			0.0			0.0			5.4			0.0
			Taxes, licenses and fees			29.7			51.8			48.5			49.2			53.2
			Par policyholder interests			(4.3	)		3.3			1.1			0.0			0.0
			Foreign exchange			0.0			0.0			0.0			0.0			0.0
				Subtotal		432.5			575.2			567.6			539.9			545.6
			Deferral of acquisition costs												(324.8	)		(336.5	)
			DAC amortization												95.0			105.8
				DAC deferral net of amortization		(159.3	)		(235.0	)		(286.5	)		(229.8	)		(230.7	)
			PVIF amortization			51.9			58.8			103.7			75.9			73.9
			Other intangibles amortization			0.0			0.0			0.0			0.0			0.0
				Total underwriting, acquisition, insurance and other expenses		325.0			399.1			384.8			385.9			388.8
	Goodwill amortization					19.7			23.4			23.7			23.7			0.0
			Total Benefits and Expenses			1179.8			1428.2			1426.3			1476.6			1490.8
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes						198.7			332.2			392.7			364.0			294.2
	Federal income taxes					71.2			120.6			143.4			129.2			88.1
Income Cumulative Effect of Accounting Changes						127.5			211.5			249.3			234.8			206.1
	Cumulative effect of accounting changes					0.0			0.0			0.0			(5.5	)		0.0
				Net Income		127.5			211.5			249.3			229.3			206.1
Less:
	Realized gains (losses) on investments					(1.7	)		(0.5	)		(10.7	)		(38.5	)		(63.8	)
	Gains (losses) on derivatives					0.0			0.0			0.0			1.6			1.0
	Restructuring charges					(20.0	)		0.0			0.0			(3.5	)		0.0
	Cumulative effect of accounting changes					0.0			0.0			0.0			(5.5	)		0.0
			Income from Operations			149.2			212.0			259.9			275.3			269.0
Effective tax rate on Income from Operations						35.6	%		36.6	%		36.6	%		35.4	%		31.2	%
Revenue						1378.5			1760.4			1819.0			1840.6			1785.0
Less:
Realized gains (losses) on investments						(1.0	)		(2.2	)		(17.4	)		(57.6	)		(98.2	)
Gains (losses) on derivatives															0.7			1.5
		Operating Revenue				1379.5			1762.6			1836.4			1897.5			1881.7
Average capital						1948.0			2712.3			2640.2			2732.8			2844.7
Net Income return on average capital						6.5	%		7.8	%		9.4	%		8.4	%		7.2	%
Income from operations return on average capital						7.7	%		7.8	%		9.8	%		10.1	%		9.5	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period															1,079.3			1,265.6
Deferral															324.8			336.5
Amortization															(95.0	)		(105.8	)
	Included in Total Benefits and Expenses														229.8			230.7
	Adjustment related to realized (gains) losses on securities available-for-sale														43.0			39.7
	Adjustment related to unrealized (gains) losses on securities available-for-sale														(89.0	)		(130.9	)
Other*															2.5			19.3
Balance at end-of-period															1,265.6			1,424.4
Roll Forward of Present Value of In-Force
Balance at beginning-of-period															1,040.5			964.0
	Amortization														(75.9	)		(73.9	)
	Other														(0.7	)		(0.0	)
Balance at end-of-period															964.0			890.1

*Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002.

Note: 2001 and 2002 have been restated for the adoption of the fair value method of accounting for stock options under FAS 123.

3/31/2003 PAGE 20

Life Insurance Segment
Income Statements
Unaudited [Millions of Dollars]

					Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
For the Quarter Ended					2001			2001			2001			2001			2002			2002			2002			2002			2003
Revenue
	Premiums					50.9			50.7			46.4			64.4			51.1			47.6			48.6			56.4			47.8
	Surrender charges					17.2			13.5			15.6			19.9			11.7			13.5			13.4			15.5			11.4
	Mortality assessments					124.3			124.8			124.7			125.5			123.9			123.9			126.3			127.3			129.7
	Expense assessments					47.4			45.3			46.0			52.8			46.9			47.2			49.2			56.3			48.3
	Other revenue and fees					5.1			3.8			3.0			6.0			5.7			6.7			5.1			6.2			5.8
	Net investment income					223.0			227.4			233.2			226.6			226.0			225.7			224.1			223.3			227.6
	Realized gains (losses) on investments					(8.2	)		(10.0	)		(8.2	)		(31.1	)		(41.4	)		(25.4	)		(25.9	)		(5.5	)		(12.7	)
	Gains (losses) on derivatives					(0.0	)		0.2			(0.1	)		0.6			0.0			0.6			0.7			0.1			(0.5	)
				Total Revenue		459.6			455.7			460.6			464.7			423.9			439.8			441.6			479.6			457.5
Benefits and Expenses
	Benefits paid or provided:
			Benefits			99.9			103.5			102.3			112.9			104.1			103.6			105.2			114.6			103.8
			Div accum & div to policyholders			17.5			19.0			16.5			25.4			17.8			18.2			17.2			22.8			14.4
			Interest credited to policy bal			138.3			141.2			143.5			146.9			146.3			148.9			152.6			150.7			150.1
				Total insurance benefits		255.7			263.8			262.3			285.1			268.1			270.8			275.1			288.0			268.3
	Underwriting, acquisition, insurance and other expenses:
			Commissions			33.4			31.1			32.5			45.1			34.6			34.8			31.8			38.6			32.4
			Other volume related expenses			34.8			43.3			41.4			56.9			42.7			43.6			45.8			58.3			54.2
			Operating and administrative expenses			41.8			42.1			43.1			39.8			38.2			38.2			41.1			44.7			40.6
			Restructuring charges			0.0			3.1			0.0			2.3			0.0			0.0			0.0			0.0			5.5
			Taxes, licenses and fees			12.5			12.3			12.0			12.5			13.2			15.3			13.2			11.5			14.4
			Par policyholder interests			(0.0	)		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Foreign exchange			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
				Subtotal		122.5			131.9			129.0			156.5			128.6			132.0			131.8			153.2			147.1
			Deferral of acquisition costs						(68.8	)		(85.3	)		(106.3	)		(74.3	)		(82.2	)		(78.6	)		(101.4	)		(91.0	)
			DAC amortization						15.8			29.7			30.2			22.1			23.6			23.9			36.3			47.0
				DAC deferral net of amortization		(45.2	)		(53.0	)		(55.5	)		(76.1	)		(52.3	)		(58.6	)		(54.8	)		(65.1	)		(44.0	)
			PVIF amortization			22.9			17.7			20.5			14.7			16.9			16.3			23.3			17.4			17.4
			Other intangibles amortization			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
				Total underwriting, acquisition, insurance and other expenses		100.3			96.5			94.0			95.1			93.2			89.6			100.4			105.5			120.5
	Goodwill amortization					5.9			5.9			5.9			5.9			0.0			0.0			0.0			0.0			0.0
			Total Benefits and Expenses			361.9			366.3			362.2			386.2			361.3			360.4			375.5			393.6			388.8
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes						97.7			89.4			98.4			78.4			62.6			79.4			66.1			86.0			68.7
	Federal income taxes					35.5			31.5			34.7			27.5			19.1			22.7			19.7			26.5			20.2
Income Before Cumulative Effect of Accounting Changes						62.2			57.9			63.8			50.9			43.5			56.7			46.4			59.5			48.5
	Cumulative effect of accounting changes					(0.2	)		(5.3	)		0.0			(0.0	)		0.0			0.0			0.0			0.0			0.0
				Net Income		62.0			52.6			63.8			50.9			43.5			56.7			46.4			59.5			48.5
Less:
	Realized gains (losses) on investments					(5.4	)		(6.4	)		(5.3	)		(21.3	)		(26.9	)		(16.4	)		(16.9	)		(3.6	)		(8.1	)
	Gains (losses) on derivatives					(0.0	)		0.1			(0.0	)		1.5			0.0			0.3			0.6			0.1			(0.5	)
	Restructuring charges					0.0			(2.0	)		0.0			(1.5	)		0.0			0.0			0.0			0.0			(3.6	)
	Cumulative effect of accounting changes					(0.2	)		(5.3	)		0.0			(0.0	)		0.0			0.0			0.0			0.0			0.0
Income from Operations						67.7			66.2			69.1			72.3			70.4			72.8			62.7			63.1			60.7
Effective tax rate on Income from Operations						36.1	%		35.3	%		35.2	%		35.0	%		32.3	%		30.1	%		31.3	%		31.0	%		30.6	%
Revenue						459.6			455.7			460.6			464.7			423.9			439.8			441.6			479.6			457.5
Less:
Realized gains (losses) on investments						(8.2	)		(10.0	)		(8.2	)		(31.1	)		(41.4	)		(25.4	)		(25.9	)		(5.5	)		(12.7	)
Gains (losses) on derivatives						(0.0	)		0.2			(0.1	)		0.6			0.0			0.6			0.7			0.1			(0.5	)
		Operating Revenue				467.9			465.5			468.9			495.2			465.3			464.6			466.8			485.0			470.7
Average capital						2,730.3			2,716.7			2,737.7			2,746.5			2,804.3			2,868.5			2,856.0			2,849.9			2,863.9
Net Income return on average capital						9.1	%		7.7	%		9.3	%		7.4	%		6.2	%		7.9	%		6.5	%		8.4	%		6.8	%
Income from operations return on average capital						9.9	%		9.7	%		10.1	%		10.5	%		10.0	%		10.2	%		8.8	%		8.8	%		8.5	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter						1,079.3			1,064.1			1,151.1			1,156.0			1,265.6			1,385.3			1,404.9			1,362.2			1,424.5
Deferral						64.5			68.8			85.3			106.3			74.3			82.2			78.6			101.4			91.0
Amortization						(19.3	)		(15.8	)		(29.7	)		(30.2	)		(22.1	)		(23.6	)		(23.9	)		(36.3	)		(47.0	)
	Included in Total Benefits and Expenses					45.2			53.0			55.5			76.1			52.3			58.6			54.8			65.1			44.0
	Adjustment related to realized (gains) losses on securities available-for-sale					7.8			13.3			7.2			14.7			15.8			11.2			11.7			1.0			7.0
	Adjustment related to unrealized (gains) losses on securities available-for-sale					(68.5	)		20.7			(59.6	)		18.5			34.0			(51.9	)		(109.3	)		(3.7	)		(27.9	)
Other*						0.2			0.1			1.8			0.3			17.6			1.7
Balance at end-of-quarter						1,064.1			1,151.1			1,156.0			1,265.6			1,385.3			1,404.9			1,362.2			1,424.5			1,447.7
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter						1,040.5			1,017.6			999.9			978.7			964.0			947.1			930.7			907.4			890.1
	Amortization					(22.9	)		(17.7	)		(20.5	)		(14.7	)		(16.9	)		(16.3	)		(23.3	)		(17.4	)		(17.4	)
	Other											(0.7	)								(0.1	)					0.1
Balance at end-of-quarter						1,017.6			999.9			978.7			964.0			947.1			930.7			907.4			890.1			872.7

*Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002.

3/31/2003 PAGE 21

Life Insurance Segment
Operational Data
Unaudited [Millions of Dollars]

					1998		1999		2000		2001		2002
First Year Premiums by Product (Millions)
		Universal Life				233.0		342.9		289.3		292.7		495.3
		Variable Universal Life				101.3		142.2		218.7		228.6		134.5
		Whole Life				20.0		23.9		22.4		26.3		30.3
		Term				48.0		45.9		41.9		30.8		32.3
				Total Retail		402.3		555.0		572.3		578.4		692.3
		Corporate Owned Life Insurance (COLI)				4.0		14.7		87.0		47.3		88.1
				Total		406.3		569.7		659.3		625.6		780.4
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors						35.0		188.3		200.6		196.1		201.7
Lincoln Financial Distributors						356.3		367.9		444.7		413.0		556.3
Other*						15.0		13.5		14.0		16.6		22.4
		Total by Distribution				406.3		569.7		659.3		625.6		780.4
Life Insurance In-Force (Billions)
	Universal Life & Other					105.837		109.288		115.872		121.168		126.016
	Term Insurance					67.076		85.701		100.130		113.226		127.880
			Total Life Segment In-Force			172.914		194.988		216.002		234.394		253.896

For the Quarter Ended					Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar
					2000		2000		2000		2001		2001		2001		2001		2002		2002		2002		2002		2003
First Year Premiums by Product (Millions)
		Universal Life				63.7		72.4		80.9		57.7		70.0		67.4		97.5		86.4		98.9		132.9		177.1		130.8
		Variable Universal Life				44.5		55.1		75.1		56.0		52.2		50.1		70.2		39.0		42.4		26.1		27.0		24.4
		Whole Life				4.5		6.0		8.0		4.1		5.1		6.7		10.4		5.2		6.4		7.7		11.0		6.5
		Term				12.1		9.1		7.6		6.5		7.2		8.1		9.1		8.7		8.1		7.3		8.1		9.1
				Total Retail		124.8		142.6		171.6		124.2		134.6		132.4		187.2		139.4		155.8		174.0		223.2		170.7
		Corporate Owned Life Insurance (COLI)				19.5		5.8		49.0		7.1		21.0		5.1		14.2		6.9		46.6		7.8		26.8		10.6
				Total		144.3		148.4		220.7		131.3		155.6		137.4		201.3		146.3		202.4		181.8		249.9		181.3
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors						37.0		51.3		66.2		38.1		48.2		41.8		68.0		41.5		48.3		46.9		64.9		42.1
Lincoln Financial Distributors						104.4		92.9		150.6		89.1		104.0		90.4		129.5		100.9		151.6		132.7		171.1		131.6
Other*						2.9		4.2		3.9		4.2		3.4		5.2		3.8		3.8		2.6		2.2		13.9		7.5
		Total by Distribution				144.3		148.4		220.7		131.3		155.6		137.4		201.3		146.3		202.4		181.8		249.9		181.3
Insurance In-Force (Billions)
	Universal Life & Other					110.448		112.884		115.872		116.747		118.007		119.029		121.168		122.316		123.674		124.085		126.016		126.414
	Term Insurance					97.039		98.424		100.130		102.467		105.265		108.723		113.226		117.752		121.076		123.945		127.880		133.251
			Total Segment In-Force			207.487		211.308		216.002		219.214		223.272		227.751		234.394		240.068		244.750		248.030		253.896		259.666

*Other consists of distribution arrangements with third-party intermediaries.

3/31/2003 PAGE 22

Life Insurance Segment
Life Insurance Account Value Roll Forward
Unaudited [Billions of Dollars]

				1998			1999			2000			2001			2002
Universal Life-Bal Beg-of-Year					2.558			6.259			6.650			6.976			7.508
	Deposits				0.675			1.017			0.955			1.043			1.332
	Withdrawals & deaths				(0.701	)		(0.452	)		(0.426	)		(0.319	)		(0.426	)
			Net flows		(0.026	)		0.564			0.528			0.724			0.906
	Policyholder assessments				0.000			(0.544	)		(0.584	)		(0.598	)		(0.648	)
	Interest credited				0.350			0.370			0.382			0.405			0.428
	Acq of new business/transfers between segments				3.378			0.000			0.000			0.000			0.018
		Universal Life-Bal End of Year (1)			6.259			6.650			6.976			7.508			8.211
Variable Universal Life-Bal Beg-of-Year					0.480			1.200			1.605			1.808			1.746
	Deposits				0.193			0.326			0.607			0.584			0.504
	Withdrawals & deaths				(0.100	)		(0.099	)		(0.132	)		(0.251	)		(0.193	)
			Net flows		0.093			0.228			0.475			0.332			0.311
	Policyholder assessments				0.000			(0.084	)		(0.141	)		(0.170	)		(0.186	)
	Invest inc & chg in mkt value				0.105			0.370			(0.130	)		(0.225	)		(0.313	)
	Acq of new business/transfers between segments				0.522			(0.110	)		0.000			0.000			0.132
			Variable Universal Life-Bal End-of-Year		1.200			1.605			1.808			1.746			1.690
Interest Sensitive Whole Life — Bal Beg-of-Year								1.784			1.963			2.062			2.123
	Deposits				0.340			0.355			0.322			0.307			0.301
	Withdrawals & deaths				(0.294	)		(0.162	)		(0.168	)		(0.200	)		(0.199	)
			Net flows		0.046			0.193			0.154			0.107			0.103
	Policyholder assessments				0.000			(0.168	)		(0.168	)		(0.164	)		(0.167	)
	Interest credited				0.096			0.109			0.113			0.118			0.127
	Acq of new business/transfers between segments				1.642			0.045			0.000			0.000			0.000
		Int Sensitive Whole Life-Bal End -of -Year			1.784			1.963			2.062			2.123			2.186
Total Segment- Life Insurance Account Values
Bal Beg-of-Year					3.038			9.243			10.217			10.847			11.377
	Deposits				1.207			1.698			1.884			1.934			2.138
	Withdrawals & deaths				(1.095	)		(0.713	)		(0.727	)		(0.771	)		(0.818	)
			Net flows		0.113			0.985			1.158			1.163			1.320
	Policyholder assessments							(0.795	)		(0.893	)		(0.931	)		(1.002	)
	Invest inc & change in market value				0.551			0.849			0.364			0.299			0.241
	Acq of new business/transfers between segments				5.542			(0.065	)								0.150
		Total Segment -Bal End-of-Year			9.243			10.217			10.847			11.377			12.086

(1)  Includes fixed investment option of VUL products.

3/31/2003 PAGE 23

Life Insurance Segment
Life Insurance Account Value Roll Forward
Unaudited [Billions of Dollars]

For the Quarter Ended				Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
				2000			2000			2000			2001			2001			2001			2001			2002			2002			2002			2002			2003
Universal Life-Bal Beg-of-Quarter					6.729			6.782			6.878			6.976			7.063			7.216			7.315			7.508			7.622			7.838			7.987			8.211
	Deposits				0.212			0.227			0.265			0.227			0.270			0.233			0.314			0.248			0.364			0.310			0.410			0.316
	Withdrawals & deaths				(0.111	)		(0.080	)		(0.114	)		(0.091	)		(0.071	)		(0.085	)		(0.073	)		(0.097	)		(0.096	)		(0.108	)		(0.125	)		(0.107	)
			Net flows		0.101			0.146			0.151			0.136			0.199			0.147			0.241			0.150			0.268			0.201			0.286			0.210
	Policyholder assessments				(0.143	)		(0.146	)		(0.150	)		(0.147	)		(0.147	)		(0.150	)		(0.153	)		(0.158	)		(0.158	)		(0.162	)		(0.170	)		(0.168	)
	Interest credited				0.095			0.096			0.097			0.098			0.100			0.102			0.105			0.104			0.106			0.110			0.108			0.106
	Acq of new business/transfers between segments				0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.018			0.000			0.000			0.000			0.000
		Universal Life-Bal End-of-Quarter (1)			6.782			6.878			6.976			7.063			7.216			7.315			7.508			7.622			7.838			7.987			8.211			8.359
Variable Universal Life-Bal Beg of Quarter					1.771			1.764			1.812			1.808			1.633			1.766			1.527			1.746			1.919			1.776			1.575			1.690
	Deposits				0.128			0.123			0.245			0.136			0.138			0.124			0.186			0.129			0.147			0.102			0.126			0.118
	Withdrawals & deaths				(0.028	)		(0.037	)		(0.048	)		(0.049	)		(0.060	)		(0.055	)		(0.088	)		(0.055	)		(0.057	)		(0.034	)		(0.047	)		(0.036	)
			Net flows		0.100			0.085			0.197			0.087			0.078			0.069			0.098			0.074			0.090			0.068			0.079			0.082
	Policyholder assessments				(0.033	)		(0.036	)		(0.041	)		(0.041	)		(0.041	)		(0.042	)		(0.045	)		(0.047	)		(0.046	)		(0.046	)		(0.047	)		(0.049	)
	Invest inc & chg in mkt value				(0.074	)		(0.001	)		(0.160	)		(0.221	)		0.096			(0.266	)		0.166			0.013			(0.186	)		(0.224	)		0.083			(0.034	)
	Acq of new business/transfers between segments				0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.132			0.000			0.000			0.000			0.000
		Variable Universal Life-Bal End-of-Quarter			1.764			1.812			1.808			1.633			1.766			1.527			1.746			1.919			1.776			1.575			1.690			1.689
Interest Sensitive Whole Life — Bal Beg-of-Quarter					1.970			1.993			2.026			2.062			2.068			2.084			2.096			2.123			2.126			2.145			2.164			2.186
	Deposits				0.071			0.079			0.113			0.056			0.069			0.077			0.105			0.063			0.066			0.073			0.100			0.051
	Withdrawals & deaths				(0.037	)		(0.033	)		(0.056	)		(0.041	)		(0.043	)		(0.054	)		(0.061	)		(0.051	)		(0.039	)		(0.045	)		(0.063	)		(0.046	)
			Net flows		0.034			0.045			0.057			0.014			0.027			0.022			0.044			0.012			0.026			0.027			0.037			0.005
	Policyholder assessments				(0.040	)		(0.040	)		(0.050	)		(0.037	)		(0.040	)		(0.041	)		(0.047	)		(0.042	)		(0.039	)		(0.040	)		(0.046	)		(0.036	)
	Interest credited				0.028			0.027			0.029			0.028			0.030			0.030			0.030			0.033			0.032			0.031			0.031			0.030
	Acq of new business/transfers between segments				0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000
		Int Sensitive Whole Life-Bal End-of-Quarter			1.993			2.026			2.062			2.068			2.084			2.096			2.123			2.126			2.145			2.164			2.186			2.185
Total Segment-Life Insurance Account Values
Bal Beg-of-Quarter					10.470			10.538			10.716			10.847			10.764			11.066			10.939			11.377			11.667			11.759			11.726			12.086
	Deposits				0.411			0.428			0.622			0.418			0.477			0.434			0.605			0.440			0.577			0.484			0.636			0.486
	Withdrawals & deaths				(0.176	)		(0.151	)		(0.218	)		(0.181	)		(0.173	)		(0.195	)		(0.222	)		(0.204	)		(0.192	)		(0.187	)		(0.234	)		(0.190	)
			Net flows		0.235			0.277			0.404			0.237			0.304			0.239			0.383			0.236			0.385			0.297			0.402			0.296
	Policyholder assessments				(0.216	)		(0.221	)		(0.241	)		(0.225	)		(0.228	)		(0.232	)		(0.246	)		(0.246	)		(0.244	)		(0.248	)		(0.263	)		(0.252	)
	Invest inc & change in market value				0.048			0.123			(0.033	)		(0.094	)		0.226			(0.134	)		0.301			0.151			(0.049	)		(0.082	)		0.222			0.103
	Acq of new business/transfers between segments				0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.150			0.000			0.000			0.000			0.000
		Total Segment-Bal End-of-Quarter			10.538			10.716			10.847			10.764			11.066			10.939			11.377			11.667			11.759			11.726			12.086			12.233

(1)  Includes fixed investment option of VUL products.

3/31/2003 PAGE 24

Investment Management
Income Statements
Unaudited [Millions of Dollars]

For the Year Ended December 31				1998			1999			2000			2001			2002
Revenue
	Investment advisory fees — External				249.0			248.6			231.6			197.2			183.3
	Investment advisory fees — Insurance Assets				100.2			103.0			112.4			105.0			97.7
	Other revenue and fees				92.5			106.6			115.9			99.2			87.0
	Net investment income				67.0			56.9			57.7			53.6			50.5
	Realized gains (losses) on investments				0.9			(0.1	)		(3.9	)		(3.7	)		(5.4	)
	Gains (losses) on derivatives				0.0			0.0			0.0			0.0			0.0
			Total Revenue		509.6			514.9			513.7			451.2			413.1
Benefits and Expenses
	Underwriting, acquisition, insurance and other expenses:
		Operating and administrative expenses			384.7			369.6			398.8			410.2			393.2
		Restructuring Charges			0.0			12.5			7.1			0.6			(0.4	)
		Taxes, licenses and fees			13.1			10.3			11.6			16.8			13.0
			Subtotal		397.8			392.4			417.5			427.5			405.8
		Other intangibles amortization			18.8			17.7			16.3			10.8			8.2
			Total underwriting, acquisition, insurance and other expenses		416.6			410.1			433.8			438.3			414.0
	Goodwill amortization				16.3			16.2			16.2			16.2			0.0
	Interest on notes payable				0.4			0.0			0.0			0.0			0.0
			Total Benefits and Expenses		433.3			426.3			450.0			454.6			414.0
Income from Before Federal Income Tax and Cumulative Effect of Accounting Changes					76.3			88.6			63.7			(3.3	)		(0.9	)
	Federal income taxes				31.9			37.0			26.8			5.5			0.5
Income Before Cumulative Effect of Accounting Changes					44.4			51.6			37.0			(8.9	)		(1.4	)
	Cumulative effect of accounting changes				0.0			0.0			0.0			(0.1	)		0.0
			Net Income		44.4			51.6			37.0			(9.0	)		(1.4	)
Less:
	Realized gains (losses) on investments				0.5			(0.1	)		(2.5	)		(2.4	)		(3.5	)
	Gains (losses) on derivatives				0.0			0.0			0.0			0.0			0.0
	Restructuring charges				0.0			(9.2	)		(4.6	)		(0.4	)		0.3
	Cumulative effect of accounting changes				0.0			0.0			0.0			(0.1	)		0.0
			Income from Operations		43.9			61.0			44.1			(6.1	)		1.8
Net Income - before Goodwill Amortization					60.8			67.9			53.2			7.3			(1.4	)
Net Income - before Goodwill & Intang. Amort					73.1			79.4			63.8			14.3			3.9
Inc from Oper - before Goodwill Amortization					60.3			77.2			60.3			10.1			1.8
Income from Operations - before Goodwill & Intang. Amort					72.6			88.7			70.9			17.1			7.2
Revenue					509.6			514.9			513.7			451.2			413.1
Less:
Realized gains (losses) on investments					0.9			(0.1	)		(3.9	)		(3.7	)		(5.4	)
Gains (losses) on derivatives					0.0			0.0			0.0			0.0			0.0
		Operating Revenue			508.7			515.0			517.6			454.9			418.5
	Average Capital (Securities at Cost)				642.3			593.7			575.6			556.2			580.2
Net Income return on average capital					6.9	%		8.7	%		6.4	%		(1.6	)%		(0.2	)%
Inc. from oper. return on average capital					6.8	%		10.3	%		7.7	%		(1.1	)%		0.3	%

Note: 2001 and 2002 have been restated for the adoption of the fair value method of accounting for stock options under FAS 123.

3/31/2003 PAGE 25

Investment Management
Income Statements
Unaudited [Millions of Dollars]

For the Quarter Ended					Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
					2001			2001			2001			2001			2002			2002			2002			2002			2003
Revenue
	Investment advisory fees — External					50.5			51.1			46.2			49.3			48.0			47.8			42.9			44.7			44.2
	Investment advisory fees — Insurance Assets					26.7			26.0			26.0			26.3			25.0			24.3			24.1			24.2			24.1
	Other revenue and fees					26.3			25.7			23.9			23.4			23.0			22.0			19.9			22.1			22.0
	Net investment income					14.1			13.0			13.6			12.8			12.8			12.7			12.4			12.7			12.1
	Realized gains (losses) on investments					(0.7	)		(1.1	)		(0.8	)		(1.1	)		(1.5	)		(0.7	)		(1.8	)		(1.5	)		(0.4	)
	Gains (losses) on derivatives					0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
	Total Revenue					116.9			114.7			108.8			110.8			107.3			106.1			97.5			102.2			102.1
Benefits and Expenses
	Underwriting, acquisition, insurance and other expenses:
			Operating and administrative expenses			105.2			104.7			99.0			101.3			97.2			98.4			97.0			100.6			95.2
			Restructuring Charges			0.0			0.0			0.0			0.6			0.0			0.0			-0.4			0.0			0.0
			Taxes, licenses and fees			5.3			3.6			4.2			3.6			4.6			4.2			1.9			2.4			3.0
				Subtotal		110.5			108.3			103.2			105.5			101.8			102.6			98.5			103.0			98.2
			Other intangibles amortization			4.0			2.3			2.3			2.3			2.2			2.0			2.0			2.0			2.0
				Total underwriting, acquisition, insurance and other expenses		114.4			110.6			105.5			107.8			103.9			104.6			100.5			105.0			100.2
	Goodwill amortization					4.1			4.1			4.1			4.1			0.0			0.0			0.0			0.0			0.0
	Interest on notes payable					0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
		Total Benefits and Expenses				118.5			114.7			109.5			111.9			103.9			104.6			100.5			105.0			100.2
Income from Before Federal Income Tax and Cumulative Effect of Accounting Changes						(1.6	)		0.0			(0.7	)		(1.1	)		3.4			1.5			(2.9	)		(2.8	)		1.9
	Federal income taxes					1.1			1.7			1.4			1.3			1.3			0.6			(0.6	)		(0.8	)		0.8
Income Before Cumulative Effect of Accounting Changes						(2.7	)		(1.7	)		(2.1	)		(2.4	)		2.1			0.8			(2.3	)		(2.0	)		1.0
	Cumulative effect of accounting changes					0.0			(0.1	)		0.0			0.0			0.0			0.0			0.0			0.0			0.0
				Net Income		(2.7	)		(1.8	)		(2.1	)		(2.4	)		2.1			0.8			(2.3	)		(2.0	)		1.0
Less:
	Realized gains (losses) on investments					(0.5	)		(0.7	)		(0.5	)		(0.7	)		(1.0	)		(0.4	)		(1.2	)		(0.9	)		(0.3	)
	Gains (losses) on derivatives					0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
	Restructuring charges					0.0			0.0			0.0			(0.4	)		0.0			0.0			0.3			0.0			0.0
	Cumulative effect of accounting changes					0.0			(0.1	)		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Income from Operations						(2.2	)		(1.0	)		(1.6	)		(1.3	)		3.1			1.3			(1.4	)		(1.1	)		1.3
Net Income — before Goodwill Amortization						1.4			2.3			1.9			1.7			2.1			0.8			(2.3	)		(2.0	)		1.0
Net Income — before Goodwill & Intang. Amort						3.9			3.8			3.4			3.2			3.5			2.1			(1.0	)		(0.7	)		2.4
Inc from Oper — before Goodwill Amortization						1.8			3.1			2.5			2.8			3.1			1.3			(1.4	)		(1.1	)		1.3
Inc from Oper — before Goodwill & Intang. Amort						4.4			4.6			3.9			4.2			4.5			2.6			(0.1	)		0.2			2.6
Revenue						116.9			114.7			108.8			110.8			107.3			106.1			97.5			102.2			102.1
Less:
Realized gains (losses) on investments						(0.7	)		(1.1	)		(0.8	)		(1.1	)		(1.5	)		(0.7	)		(1.8	)		(1.5	)		(0.4	)
Gains (losses) on derivatives						0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Operating Revenue						117.7			115.8			109.7			111.8			108.9			106.7			99.3			103.6			102.5
Average Capital (Securities at Cost)						558.5			555.5			556.3			554.5			562.3			586.4			584.7			587.1			597.6
Net Income return on average capital						(1.9	)%		(0.7	)%		(1.1	)%		(0.9	)%		2.2	%		0.9	%		(1.0	)%		(0.7	)%		0.9	%
Income from operations return on average capital						(1.6	)%		(0.7	)%		(1.1	)%		(0.9	)%		2.2	%		0.9	%		(1.0	)%		(0.8	)%		0.9	%

3/31/2003 PAGE 26

Investment Management
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]

				1998			1999			2000			2001			2002
Retail Fixed — Bal Beg-of-Year					8.125			8.219			7.423			6.608			7.120
	Fund Sales				1.166			0.991			0.769			0.876			1.218
	Redemptions				(1.234	)		(1.424	)		(1.401	)		(1.051	)		(1.182	)
	Net Money Market				(0.141	)		(0.111	)		(0.207	)		(0.046	)		(0.050	)
	Transfers				0.132			0.177			(0.168	)		0.405			0.206
			Net Flows(1)		(0.077	)		(0.367	)		(1.007	)		0.184			0.192
	Market				0.170			(0.429	)		0.099			0.328			0.320
	Acquisitions/addition of Assets under Administration(1)										0.094
		Balance End-of-Year			8.219			7.423			6.608			7.120			7.631
Retail Equity — Bal Beg-of-Year					17.754			22.081			23.384			21.523			17.987
	Fund Sales				3.581			3.270			4.116			2.817			4.477
	Redemptions				(2.459	)		(4.972	)		(4.431	)		(2.838	)		(3.690	)
	Net Money Market				(0.001	)		(0.001	)		0.001
	Transfers				0.730			(0.144	)		(0.178	)		(0.538	)		(0.173	)
			Net Flows(1)		1.851			(1.847	)		(0.492	)		(0.560	)		0.614
	Market				2.476			3.150			(1.711	)		(2.976	)		(3.685	)
	Acquisitions/addition of Assets under Administration(1)										0.342
		Balance at End-of-Year			22.081			23.384			21.523			17.987			14.917
Total Retail — Bal Beg-of-Year					25.879			30.300			30.807			28.130			25.107
	Retail Sales-Annuities				2.240			1.561			1.782			1.701			2.751
	Retail Sales-Mutual Funds				1.912			2.151			2.577			1.523			1.829
	Retail Sales-Managed Acct. & Other				0.595			0.549			0.525			0.469			1.115
			Total Retail Sales		4.747			4.261			4.885			3.693			5.695
	Redemptions				(3.693	)		(6.396	)		(5.832	)		(3.889	)		(4.873	)
	Net Money Market				(0.142	)		(0.112	)		(0.206	)		(0.046	)		(0.050	)
	Transfers				0.862			0.033			(0.346	)		(0.133	)		0.033
			Net Flows(1)		1.774			(2.214	)		(1.500	)		(0.375	)		0.806
	Market				2.647			2.721			(1.612	)		(2.649	)		(3.364	)
	Acquisitions/addition of Assets under Administration(1)										0.435
		Balance at End-of-Year			30.300			30.807			28.130			25.107			22.547
Institutional Fixed — Bal Beg-of-Year					5.708			6.955			6.936			6.111			5.490
	Inflows				2.169			2.001			0.771			0.643			2.281
	Withdrawals/Terminations				(1.242	)		(1.700	)		(1.973	)		(1.229	)		(1.146	)
	Transfers				(0.074	)		(0.001	)		(0.005	)		0.017			0.004
			Net Flows		0.853			0.300			(1.207	)		(0.569	)		1.139
	Market				0.394			(0.319	)		0.382			(0.052	)		0.607
	Acquisitions
		Balance at End-of-Year			6.955			6.936			6.111			5.490			7.237
Institutional Equity — Bal Beg-of-Year					24.871			24.235			23.631			19.112			17.814
	Inflows				3.840			5.249			2.730			3.183			2.913
	Withdrawals/Terminations				(7.441	)		(7.800	)		(7.209	)		(2.879	)		(1.991	)
	Transfers				0.047			0.012			(0.008	)		0.035			0.045
			Net Flows		(3.555	)		(2.539	)		(4.486	)		0.338			0.967
	Market				2.919			1.935			(0.033	)		(1.636	)		(2.070	)
	Acquisitions
		Balance at End-of-Year			24.235			23.631			19.112			17.814			16.711
Total Institutional — Bal Beg-of-Year					30.579			31.191			30.568			25.223			23.304
	Inflows				6.009			7.250			3.501			3.826			5.194
	Withdrawals/Terminations				(8.683	)		(9.500	)		(9.182	)		(4.109	)		(3.137	)
	Transfers				(0.027	)		0.011			(0.013	)		0.052			0.050
			Net Flows		(2.702	)		(2.239	)		(5.693	)		(0.231	)		2.106
	Market				3.313			1.616			0.349			(1.688	)		(1.463	)
	Acquisitions
		Balance at End-of-Year			31.191			30.568			25.223			23.304			23.948
Total Retail/Institutional — At End-of-Year					61.490			61.375			53.354			48.411			46.495
Insurance Assets — At End-of-Year					39.432			35.934			35.686			38.119			41.104
Total Assets Under Management At End-of-Year					100.922			97.309			89.040			86.530			87.599
(1) Retail assets under management have been restated to include assets under administration beginning in January of 2000
		Net Flows from Assets Under Administration are:									0.018			0.081			0.263

3/31/2003 PAGE 27

Investment Management
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]

					Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
					2000			2000			2000			2001			2001			2001			2001			2002			2002			2002			2002			2003
Retail Fixed — Bal-Beg-of-Qtr						7.057			6.763			6.631			6.606			6.751			6.768			7.207			7.122			7.088			7.169			7.516			7.633
	Fund Sales					0.166			0.223			0.212			0.248			0.203			0.207			0.218			0.292			0.272			0.325			0.328			0.424
	Redemptions					(0.339	)		(0.328	)		(0.277	)		(0.261	)		(0.285	)		(0.262	)		(0.242	)		(0.289	)		(0.306	)		(0.277	)		(0.311	)		(0.327	)
	Net Money Market					(0.058	)		(0.031	)		(0.051	)		0.010			(0.030	)		0.005			(0.031	)		(0.003	)		(0.002	)		(0.009	)		(0.035	)		0.001
	Transfers					(0.046	)		(0.031	)		0.010			0.047			(0.002	)		0.388			(0.027	)		(0.041	)		0.021			0.134			0.092			0.062
				Net Flows(1)		(0.277	)		(0.167	)		(0.106	)		0.043			(0.114	)		0.338			(0.083	)		(0.041	)		(0.015	)		0.174			0.074			0.159
	Market					(0.017	)		0.035			0.081			0.102			0.131			0.101			(0.002	)		0.007			0.096			0.174			0.043			0.115
	Acquisitions/addition of Assets under Admin.(1)					0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000
			Balance at End-of-Qtr			6.763			6.631			6.606			6.751			6.768			7.207			7.122			7.088			7.169			7.516			7.633			7.907
Retail Equity — Bal-Beg-of-Qtr						24.478			23.496			24.047			21.524			18.254			19.755			15.872			17.989			18.253			16.611			13.703			14.914
	Fund Sales					0.884			0.927			1.071			0.917			0.681			0.638			0.580			0.908			1.084			1.140			1.345			0.717
	Redemptions					(0.989	)		(1.040	)		(0.837	)		(0.911	)		(0.666	)		(0.653	)		(0.607	)		(0.791	)		(0.881	)		(1.137	)		(0.881	)		(0.803	)
	Net Money Market					0.000			0.001			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000
	Transfers					0.018			(0.036	)		(0.069	)		(0.070	)		(0.047	)		(0.441	)		0.019			0.014			(0.022	)		(0.128	)		(0.036	)		(0.059	)
				Net Flows(1)		(0.087	)		(0.148	)		0.165			(0.064	)		(0.032	)		(0.456	)		(0.008	)		0.130			0.182			(0.126	)		0.428			(0.145	)
	Market					(0.895	)		0.699			(2.689	)		(3.205	)		1.532			(3.427	)		2.125			0.133			(1.824	)		(2.782	)		0.784			(0.483	)
	Acquisitions/addition of Assets under Admin.(1)					0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000
			Balance at End-of-Qtr			23.496			24.047			21.524			18.254			19.755			15.872			17.989			18.253			16.611			13.703			14.914			14.287
Total Retail — Bal-Beg-of-Qtr						31.535			30.260			30.679			28.130			25.005			26.523			23.079			25.111			25.340			23.779			21.219			22.547
	Retail Sales-Annuities					0.358			0.456			0.589			0.540			0.403			0.434			0.323			0.589			0.601			0.756			0.806			0.488
	Retail Sales-Mutual Funds					0.586			0.554			0.563			0.483			0.355			0.336			0.348			0.452			0.562			0.416			0.399			0.450
	Retail Sales-Managed Acct. & Other					0.106			0.140			0.131			0.142			0.127			0.074			0.127			0.159			0.194			0.293			0.469			0.202
		Total Retail Sales				1.050			1.150			1.283			1.165			0.885			0.845			0.798			1.200			1.356			1.465			1.673			1.141
	Redemptions					(1.329	)		(1.368	)		(1.114	)		(1.173	)		(0.951	)		(0.915	)		(0.850	)		(1.081	)		(1.186	)		(1.414	)		(1.192	)		(1.130	)
	Net Money Market					(0.058	)		(0.030	)		(0.051	)		0.010			(0.030	)		0.005			(0.031	)		(0.003	)		(0.002	)		(0.009	)		(0.035	)		0.001
	Transfers					(0.027	)		(0.067	)		(0.059	)		(0.023	)		(0.049	)		(0.053	)		(0.009	)		(0.027	)		(0.001	)		0.006			0.056			0.003
				Net Flows(1)		(0.364	)		(0.315	)		0.059			(0.021	)		(0.146	)		(0.118	)		(0.091	)		0.089			0.167			0.048			0.502			0.014
	Market					(0.911	)		0.734			(2.608	)		(3.103	)		1.663			(3.326	)		2.123			0.140			(1.728	)		(2.608	)		0.826			(0.368	)
	Acquisitions/addition of Assets under Admin.(1)					0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000
			Balance at End-of-Qtr			30.260			30.679			28.130			25.005			26.523			23.079			25.111			25.340			23.779			21.219			22.547			22.193
Institutional Fixed — Bal-Beg-of-Qtr						6.873			6.485			6.276			6.112			5.890			5.809			5.639			5.489			6.019			6.844			7.208			7.238
	Inflows					0.148			0.308			0.135			0.310			0.233			0.020			0.080			0.804			0.663			0.530			0.283			0.592
	Withdrawals/Terminations					(0.520	)		(0.532	)		(0.568	)		(0.432	)		(0.112	)		(0.493	)		(0.192	)		(0.239	)		(0.161	)		(0.308	)		(0.438	)		(0.308	)
	Transfers					(0.001	)		0.000			0.001			0.003			0.010			0.001			0.002			(0.001	)		0.000			0.007			(0.002	)		0.002
				Net Flows		(0.373	)		(0.224	)		(0.433	)		(0.119	)		0.131			(0.472	)		(0.109	)		0.565			0.503			0.229			(0.157	)		0.286
	Market					(0.015	)		0.015			0.269			(0.103	)		(0.212	)		0.302			(0.041	)		(0.035	)		0.323			0.134			0.187			0.082
			Balance at End-of-Qtr			6.485			6.276			6.112			5.890			5.809			5.639			5.489			6.019			6.844			7.208			7.238			7.605
Institutional Equity — Bal-Beg-of-Qtr						20.304			20.241			19.044			19.113			17.311			18.405			16.240			17.814			18.642			18.118			14.935			16.709
	Inflows					0.669			0.407			0.750			0.881			0.823			0.863			0.615			0.672			0.569			0.631			1.040			0.494
	Withdrawals/Terminations					(1.354	)		(1.154	)		(1.368	)		(1.199	)		(0.501	)		(0.555	)		(0.624	)		(0.512	)		(0.635	)		(0.523	)		(0.322	)		(0.459	)
	Transfers					0.002			(0.013	)		0.007			0.018			(0.008	)		0.009			0.016			0.006			0.018			0.011			0.010			0.008
				Net Flows		(0.683	)		(0.760	)		(0.611	)		(0.299	)		0.313			0.317			0.007			0.167			(0.047	)		0.119			0.728			0.044
	Market					0.620			(0.438	)		0.680			(1.503	)		0.780			(2.482	)		1.567			0.661			(0.476	)		(3.302	)		1.046			(0.833	)
			Balance at End-of-Qtr			20.241			19.044			19.113			17.311			18.405			16.240			17.814			18.642			18.118			14.935			16.709			15.920
Total Institutional — Bal-Beg-of-Qtr						27.177			26.726			25.320			25.225			23.201			24.214			21.879			23.303			24.660			24.962			22.142			23.947
	Inflows					0.817			0.715			0.885			1.192			1.056			0.883			0.696			1.476			1.232			1.162			1.323			1.086
	Withdrawals/Terminations					(1.874	)		(1.686	)		(1.936	)		(1.631	)		(0.613	)		(1.048	)		(0.816	)		(0.751	)		(0.796	)		(0.831	)		(0.760	)		(0.767	)
	Transfers					0.001			(0.012	)		0.008			0.022			0.002			0.010			0.018			0.006			0.019			0.017			0.008			0.010
				Net Flows		(1.056	)		(0.983	)		(1.043	)		(0.417	)		0.445			(0.155	)		(0.103	)		0.731			0.455			0.348			0.572			0.330
	Market					0.605			(0.423	)		0.949			(1.607	)		0.568			(2.180	)		1.526			0.626			(0.153	)		(3.168	)		1.233			(0.751	)
			Balance at End-of-Qtr			26.726			25.320			25.225			23.201			24.214			21.879			23.303			24.660			24.962			22.142			23.947			23.526
Total Retail/Inst — At End-of-Qtr						56.986			55.998			53.355			48.207			50.737			44.958			48.413			50.001			48.741			43.361			46.494			45.719
Insurance Assets-End-of-Qtr						34.891			34.981			35.686			36.324			36.018			37.337			38.119			37.171			38.476			40.416			41.104			42.130
Total Assets Under Management At End-of-Qtr						91.877			90.979			89.041			84.531			86.755			82.295			86.532			87.171			87.217			83.777			87.598			87.849
(1) Retail assets under management have been restated to include assets under administration beginning in January of 2000
			Net Cash Flows from Assets Under Administration are:			0.000			0.011			0.001			0.027			0.013			0.007			0.034			0.090			0.061			0.045			0.068			0.068

3/31/2003 PAGE 28

Lincoln UK
Income Statements
Unaudited [Millions of Dollars]

For the Year Ended December 31				1998			1999			2000			2001			2002
Revenue
	Premiums				156.6			145.1			148.4			46.1			50.6
	Mortality assessments				29.3			27.1			31.4			33.9			32.4
	Expense assessments				153.6			182.3			178.1			134.8			105.3
	Other revenue and fees				11.2			13.8			2.6			(1.4	)		24.9
	Net investment income				87.9			75.3			70.3			64.8			62.1
	Realized gains (losses) on investments				1.1			3.0			3.2			12.4			1.9
	Gains (losses) on derivatives				0.0			0.0			0.0			0.0			0.0
			Total Revenue		439.7			446.6			433.8			290.7			277.2
Benefits and Expenses
	Benefits paid or provided:
		Benefits			151.0			306.2			178.5			83.4			84.2
	Underwriting, acquisition, insurance and other expenses:
		Commissions			52.6			54.5			37.7			10.8			6.1
		Operating and administrative expenses			125.8			153.0			140.5			82.5			77.0
		Restructuring Charges			0.0			10.0			99.4			0.0			(1.7	)
			Subtotal		178.5			217.4			277.6			93.2			81.4
		Deferral of acquisition costs												(4.2	)		(3.4	)
		DAC amortization												35.9			50.0
			DAC deferral net of amortization		(16.0	)		(12.4	)		(7.2	)		31.7			46.5
		PVIF amortization			13.2			28.4			4.7			22.5			30.8
		Other intangibles amortization			0.0			0.0			0.0			0.0			0.0
			Total underwriting, acquisition, insurance and other expenses		175.6			233.5			275.0			147.4			158.7
	Goodwill amortization				6.3			7.0			4.0			0.6			0.0
			Total Benefits and Expenses		332.9			546.7			457.6			231.5			242.9
Income from Before Federal Income Tax and Cumulative Effect of Accounting Changes					106.9			(100.1	)		(23.8	)		59.2			34.3
	Federal income taxes				35.2			(81.8	)		(10.5	)		(7.6	)		(3.4	)
Income Before Cumulative Effect of Accounting Changes					71.7			(18.2	)		(13.2	)		66.8			37.7
	Cumulative effect of accounting changes				0.0			0.0			0.0			0.0			0.0
			Net Income		71.7			(18.2	)		(13.2	)		66.8			37.7
Less:
	Realized gains (losses) on investments				0.8			2.1			2.3			8.7			1.3
	Restructuring charges				0.0			(6.5	)		(76.5	)		0.0			1.7
	Cumulative effect of accounting changes				0.0			0.0			0.0			0.0			0.0
			Income from Operations		70.9			(13.9	)		61.0			58.1			34.6
Effective tax rate on Income from Operations					32.9	%		85.1	%		15.7	%		(24.2	)%		(12.8	)%
Revenue					439.7			446.6			433.8			290.7			277.2
Less:
Realized gains (losses) on investments					1.1			3.0			3.2			12.4			1.9
Gains(losses) on derivatives					N/A			N/A			N/A			N/A			N/A
		Operating Revenue			438.6			443.6			430.6			278.2			275.4
Average capital					472.5			520.4			493.9			593.7			549.8
Net Income return on average capital					15.2	%		(3.5	)%		(2.7	)%		11.3	%		6.9	%
Income from operations return on average capital					15.0	%		(2.7	)%		12.4	%		9.8	%		6.3	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year														635.0			587.3
Deferral														4.2			3.4
Amortization														(35.9	)		(50.0	)
	Included in Total Benefits and Expenses													(31.7	)		(46.5	)
Foreign currency translation adjustment														(16.0	)		56.8
Other														0.0			0.0
Balance at end-of-year														587.3			597.6
Roll Forward of Present Value of In-Force
Balance at beginning-of-year														273.6			244.0
	Amortization													(22.5	)		(30.8	)
	Foreign currency translation adjustment													(7.0	)		24.1
	Other
Balance at end-of-year														244.0			237.3

Note: 2001 and 2002 have been restated for the adoption of the fair value method of accounting for stock options under FAS 123.

3/31/2003 PAGE 29

Lincoln UK
Income Statements
Unaudited [Millions of Dollars]

For the Quarter Ended				Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
				2001			2001			2001			2001			2002			2002			2002			2002			2003
Revenue
	Premiums				12.8			9.6			11.8			11.9			12.1			12.1			12.4			14.2			12.7
	Mortality assessments				9.4			8.9			8.5			7.1			6.5			8.3			8.7			8.9			9.1
	Expense assessments				43.7			31.4			35.5			24.1			25.3			27.8			29.4			22.8			21.6
	Other revenue and fees				4.5			(5.4	)		8.8			(9.2	)		(0.2	)		12.5			24.5			(11.9	)		10.3
	Net investment income				17.9			16.9			14.8			15.2			14.7			15.3			15.6			16.6			15.2
	Realized gains (losses) on investments				0.6			2.0			5.5			4.3			(5.1	)		4.5			1.2			1.2			(0.0	)
	Gains (losses) on derivatives				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Total Revenue		88.8			63.4			85.0			53.4			53.2			80.5			91.8			51.8			68.9
Benefits and Expenses
	Benefits paid or provided:
		Benefits			24.0			17.9			20.7			20.8			18.3			19.0			23.8			23.1			18.2
	Underwriting, acquisition, insurance and other expenses:
		Commissions			3.0			3.3			2.6			1.9			1.3			1.9			1.6			1.3			1.1
		Operating and administrative expenses			19.3			18.2			20.3			24.7			17.3			18.9			20.2			20.6			18.3
		Restructuring Charges			0.0			0.0			0.0			0.0			0.0			0.0			0.0			(1.7	)		0.0
			Subtotal		22.3			21.5			22.9			26.6			18.6			20.9			21.8			20.2			19.4
		Deferral of acquisition costs			(0.9	)		(1.1	)		(1.3	)		(0.9	)		(0.9	)		(1.0	)		(0.9	)		(0.6	)		(0.8	)
		DAC amortization			18.5			2.6			18.7			(3.8	)		6.7			20.9			33.8			(11.5	)		18.6
			DAC deferral net of amortization		17.6			1.5			17.4			(4.8	)		5.8			19.9			33.0			(12.1	)		17.7
		PVIF amortization			5.8			1.8			9.4			5.6			0.7			11.7			12.8			5.5			3.0
		Other intangibles amortization			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Total underwriting, acquisition, insurance and other expenses		45.6			24.8			49.6			27.4			25.0			52.5			67.6			13.6			40.1
	Goodwill amortization				0.2			0.2			0.2			0.2			0.0			0.0			0.0			0.0			0.0
		Total Benefits and Expenses			69.8			42.9			70.5			48.4			43.3			71.5			91.4			36.7			58.3
Income from Before Federal Income Tax and Cumulative Effect of Accounting Changes					19.0			20.6			14.5			5.1			9.8			9.0			0.4			15.1			10.6
	Federal income taxes				4.8			3.5			1.0			(16.9	)		(0.5	)		(0.3	)		0.2			(2.8	)		3.8
Income Before Cumulative Effect of Accounting Changes					14.2			17.1			13.5			22.0			10.3			9.3			0.2			17.9			6.8
	Cumulative effect of accounting changes				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Net Income		14.2			17.1			13.5			22.0			10.3			9.3			0.2			17.9			6.8
Less:
	Realized gains (losses) on investments				0.4			1.4			3.9			3.0			(3.6	)		3.2			0.9			0.8			(0.0	)
	Restructuring charges				0.0			0.0			0.0			0.0			0.0			0.0			0.0			1.7			0.0
	Cumulative effect of accounting changes				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
			Income from Operations		13.8			15.7			9.6			19.0			13.8			6.1			(0.6	)		15.3			6.8
Effective tax rate on Income from Operations					25.1	%		15.5	%		(6.8	)%		(2417.1	)%		7.2	%		(37.0	)%		25.4	%		(26.1	)%		35.5	%
Revenue					88.8			63.4			85.0			53.4			53.2			80.5			91.8			51.8			68.9
Less:
Realized gains (losses) on investments					0.6			2.0			5.5			4.3			(5.1	)		4.5			1.2			1.2			(0.0	)
			Operating Revenue		88.3			61.4			79.5			49.1			58.3			75.9			90.6			50.6			68.9
Average capital					577.5			593.8			607.2			596.2			585.1			544.8			525.3			543.9			530.4
Net Income return on average capital					9.9	%		11.5	%		8.9	%		14.8	%		7.0	%		6.8	%		0.2	%		13.2	%		5.1	%
Income from operations return on average capital					9.6	%		10.6	%		6.3	%		12.7	%		9.5	%		4.5	%		(0.5	)%		11.3	%		5.2	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year					635.0			585.1			583.4			589.7			587.3			569.4			591.0			571.8			597.6
Deferral					0.9			1.1			1.3			0.9			0.9			1.0			0.9			0.6			0.8
Amortization					(18.5	)		(2.6	)		(18.7	)		3.8			(6.7	)		(20.9	)		(33.8	)		11.5			(18.6	)
	Included in Total Benefits and Expenses				(17.6	)		(1.5	)		(17.4	)		4.8			(5.8	)		(19.9	)		(33.0	)		12.1			(17.7	)
Foreign currency translation adjustment					(32.4	)		(0.2	)		23.8			(7.2	)		(12.2	)		41.6			13.8			13.7			(10.8	)
Other
Balance at end-of-year					585.1			583.4			589.7			587.3			569.4			591.0			571.8			597.6			569.1
Roll Forward of Present Value of In-Force
Balance at beginning-of-year					273.6			253.8			251.9			252.8			244.0			238.3			243.9			236.8			237.4
	Amortization				(5.8	)		(1.8	)		(9.4	)		(5.6	)		(0.7	)		(11.7	)		(12.8	)		(5.5	)		(3.0	)
	Foreign currency translation adjustment				(14.0	)		(0.1	)		10.3			(3.2	)		(5.1	)		17.4			5.7			6.1			(4.3	)
	Other
Balance at end-of-year					253.8			251.9			252.8			244.0			238.3			243.9			236.8			237.4			230.1

3/31/2003 PAGE 30

Lincoln UK
Operational Data
Unaudited [Millions of Dollars]

For the Year Ended December 31					1998			1999			2000			2001			2002
	Unit Linked Assets — Beg-of-Year (Billions)					5.643			6.265			7.220			6.441			5.607
		Deposits				0.473			0.537			0.554			0.481			0.453
		Withdrawals (incl. chgs) & Deaths				(0.547	)		(0.566	)		(0.644	)		(0.529	)		(0.519	)
			Net Flows			(0.074	)		(0.029	)		(0.090	)		(0.048	)		(0.066	)
		Inv Inc & Chg in Mkt Val				0.662			1.154			(0.154	)		(0.617	)		(1.004	)
		Acq of new business/companies
		Foreign currency adjustment				0.035			(0.170	)		(0.536	)		(0.169	)		0.542
	Unit Linked Assets — End-of-Year					6.265			7.220			6.441			5.607			5.079
Individual Life In-force (Billions)						25.002			25.698			24.290			20.878			18.896
Exchange Rate — Dollars to Pounds
				For-the-Period		1.658			1.617			1.518			1.441			1.503
				End-of-Period		1.660			1.615			1.493			1.456			1.610

For the Quarter Ended					Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
					2000			2000			2000			2001			2001			2001			2001			2002			2002			2002			2002			2003
Unit Linked Assets
Balance-Beg-of-Quarter (Billions)						7.031			6.726			6.499			6.441			5.677			5.768			5.218			5.607			5.618			5.520			4.825			5.079
		Deposits				0.134			0.145			0.116			0.132			0.111			0.128			0.111			0.114			0.115			0.119			0.104			0.094
		Withdrawals (incl. chgs) & Deaths				(0.162	)		(0.159	)		(0.153	)		(0.147	)		(0.131	)		(0.136	)		(0.115	)		(0.127	)		(0.137	)		(0.126	)		(0.129	)		(0.153	)
			Net Flows			(0.028	)		(0.014	)		(0.037	)		(0.015	)		(0.020	)		(0.009	)		(0.004	)		(0.013	)		(0.022	)		(0.006	)		(0.025	)		(0.059	)
		Inv Inc & Chg in Mkt Val				0.047			(0.025	)		(0.100	)		(0.421	)		0.115			(0.768	)		0.457			0.141			(0.479	)		(0.812	)		0.146			(0.184	)
		Acq of new business/companies
		Foreign currency adjustment				(0.324	)		(0.189	)		0.078			(0.328	)		(0.004	)		0.226			(0.063	)		(0.117	)		0.403			0.123			0.133			(0.087	)
	Unit Linked Assets — End-of-Quarter					6.726			6.499			6.441			5.677			5.768			5.218			5.607			5.618			5.520			4.825			5.079			4.748
Individual Life In-force (Billions)						25.225			24.535			24.290			21.894			21.519			21.299			20.878			20.010			20.401			19.815			18.896			18.512
Exchange Rate — Dollars to Pounds
				For-the-Quarter		1.536			1.482			1.454			1.455			1.421			1.442			1.448			1.423			1.464			1.555			1.570			1.605
				End-of-Quarter		1.517			1.475			1.493			1.416			1.415			1.474			1.456			1.426			1.532			1.569			1.610			1.580

3/31/2003 PAGE 31

Other Operations
Unaudited [Millions of Dollars]

For the Year Ended December 31					1998			1999			2000			2001			2002
Revenue						1691.1			1966.0			1946.9			1827.3			372.4
Less:
	Realized gains (losses) on investments					0.5			14.4			(5.0	)		8.2			25.6
	Gains (losses) on derivatives					0.0			0.0			0.0			(9.7	)		0.9
	Amortization of deferred gain-reserve development					0.0			0.0			0.0			0.0			(0.8	)
	Gain on sale of reinsurance subsidiaries					0.0			0.0			0.0			12.8			(8.3	)
		Operating Revenue				1690.6			1951.6			1951.9			1815.9			355.0
Operating Revenue by Source:
	Lincoln Financial Advisors					286.4			317.0			377.5			360.7			318.0
	Lincoln Financial Distributors					33.5			107.5			119.9			113.4			127.3
				Total Distribution		319.9			424.4			497.4			474.0			445.4
	Reinsurance					1581.2			1824.1			1770.6			1699.4			0.0
	Amortization of deferred gain on indemnity reinsurance*					0.0			0.0			0.0			20.4			75.2
	Other [Including Consolidating Adjustments]					(210.5	)		(296.9	)		(316.0	)		(377.9	)		(165.6	)
			Total Operating Revenue			1690.6			1951.6			1951.9			1815.9			355.0
Income (Loss)
Net Loss						(7.6	)		(76.1	)		(10.2	)		(6.6	)		(247.3	)
Less:
	Realized gains (losses) on investments					2.7			10.2			(3.2	)		5.9			16.7
	Gains (losses) on derivatives					0.0			0.0			0.0			(6.3	)		0.6
	Gain on sale of reinsurance subsidiaries					0.0			0.0			0.0			15.0			(9.4	)
	Reserve increase on business sold through reinsurance					0.0			0.0			0.0			0.0			(199.1	)
	Restructuring charges					(14.3	)		(3.2	)		1.0			(19.5	)		1.1
	Cumulative effect of accounting changes					0.0			0.0			0.0			(2.7	)		0.0
				Operating Income (Loss)		4.0			(83.1	)		(8.0	)		1.0			(57.2	)
Income (Loss) from Operations by Source:
	Lincoln Financial Advisors					(23.7	)		(20.8	)		(11.7	)		(20.1	)		(31.4	)
	Lincoln Financial Distributors					(8.2	)		(14.0	)		(18.5	)		(33.2	)		(35.2	)
				Total Distribution		(31.9	)		(34.8	)		(30.2	)		(53.3	)		(66.6	)
	Reinsurance					104.9			40.1			122.5			128.8			0.0
	Amortization of deferred gain on indemnity reinsurance*					0.0			0.0			0.0			12.9			48.9
	LNC Financing					(51.5	)		(83.5	)		(84.9	)		(77.9	)		(43.0	)
	Other Corporate					(17.5	)		(5.0	)		(15.4	)		(9.5	)		3.5
			Income (Loss) from Operations			4.0			(83.1	)		(8.0	)		1.0			(57.2	)

					Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
For the Quarter Ended					2001			2001			2001			2001			2002			2002			2002			2002			2003
Revenue						526.9			447.6			485.3			367.4			88.5			88.5			91.8			103.6			73.0
Less:
	Realized gains (losses) on investments					(10.0	)		1.4			(12.8	)		29.5			(4.9	)		(3.8	)		33.2			1.2			0.4
	Gains (losses) on derivatives					0.1			(0.1	)		(0.0	)		(9.7	)		0.1			(0.1	)		0.6			0.3			(0.4	)
	Amort. of deferred gain-reserve development					0.0			0.0			0.0			0.0			0.0			0.0			(1.4	)		0.5			(0.2	)
	Gain on sale of reinsurance subsidiaries					0.0			0.0			0.0			12.8			0.0			0.0			0.0			(8.3	)		0.0
		Operating Revenue				536.8			446.2			498.2			334.7			93.3			92.4			59.4			109.8			73.3
Operating Revenue by Source:
	Lincoln Financial Advisors					81.2			83.8			78.9			116.7			75.9			78.1			74.4			89.6			69.4
	Lincoln Financial Distributors					25.7			20.7			32.0			35.0			29.4			29.3			31.8			36.9			35.4
				Total Distribution		106.9			104.5			111.0			151.7			105.3			107.4			106.2			126.5			104.8
	Reinsurance					515.1			451.4			467.4			265.6			0.0			0.0			0.0			0.0			0.0
	Amortization of deferred gain on indemnity reinsurance*					0.0			0.0			0.0			20.4			24.1			22.1			22.1			6.9			18.4
	Other [Including Consolidating Adjustments]					(85.2	)		(109.6	)		(80.2	)		(102.9	)		(36.0	)		(37.1	)		(68.9	)		(23.6	)		(49.9	)
			Total Operating Revenue			536.8			446.2			498.2			334.7			93.3			92.4			59.4			109.8			73.3
Income (Loss)
Net Income (Loss)						0.5			(15.7	)		(24.6	)		33.2			(16.8	)		(25.8	)		(172.1	)		(32.6	)		(21.7	)
Less:
	Realized gains (losses) on investments					(6.5	)		1.0			(8.3	)		19.7			(3.3	)		(2.4	)		21.6			0.8			0.5
	Gains (losses) on derivatives					0.1			(0.1	)		(0.0	)		(6.3	)		0.1			(0.1	)		0.4			0.2			(0.5	)
	Gain on sale of reinsurance subsidiaries					0.0			0.0			0.0			15.0			0.0			0.0			0.0			(9.4	)		0.0
	Reserve development on business sold through reinsurance					0.0			0.0			0.0			0.0			0.0			(14.4	)		(176.4	)		(8.2	)		(0.1	)
	Restructuring charges					0.0			(1.2	)		0.0			(18.3	)		0.0			0.0			1.1			0.0			0.0
	Cumulative effect of accounting changes					(0.4	)		(2.2	)		0.0			(0.0	)		0.0			0.0			0.0			0.0			0.0
				Income (Loss) from Operations		7.4			(13.1	)		(16.3	)		23.0			(13.6	)		(8.9	)		(18.8	)		(15.9	)		(21.5	)
Income from Operations by Source:
	Lincoln Financial Advisors					(7.9	)		(13.4	)		(5.3	)		6.4			(10.1	)		(8.7	)		(8.9	)		(3.7	)		(10.4	)
	Lincoln Financial Distributors					(7.5	)		(12.1	)		(8.4	)		(5.1	)		(6.6	)		(7.6	)		(13.1	)		(8.0	)		(8.1	)
				Total Distribution		(15.4	)		(25.5	)		(13.7	)		1.3			(16.6	)		(16.3	)		(22.0	)		(11.7	)		(18.4	)
	Reinsurance					46.8			34.1			17.2			30.7			0.0			0.0			0.0			0.0			0.0
	Amortization of deferred gain on indemnity reinsurance*					0.0			0.0			0.0			12.9			15.7			14.4			14.4			4.5			11.9
	LNC Financing					(21.5	)		(21.8	)		(19.3	)		(14.5	)		(8.2	)		(10.2	)		(11.0	)		(13.5	)		(15.3	)
	Other Corporate					(2.5	)		(0.0	)		(0.5	)		(7.3	)		(4.4	)		3.2			(0.2	)		4.9			0.3
				Income(Loss) from Operations		7.4			(13.1	)		(16.3	)		23.0			(13.6	)		(8.9	)		(18.8	)		(15.9	)		(21.5	)

*     The amortization of deferred gain on sale of reinsurance business represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

3/31/2003 PAGE 32

Consolidated Domestic Retail Deposits/Account Balances
Unaudited [Billions of Dollars]

		1998			1999			2000			2001			2002
Deposits — For the Year
Lincoln Retirement — Fixed Annuities			1.452			2.563			2.074			3.342			3.672
Lincoln Retirement — Variable Annuities			2.791			2.553			3.165			3.067			2.743
Lincoln Retirement — Life Insurance			0.000			0.017			0.014			0.012
Life Insurance Segment — Life Insurance			1.207			1.698			1.884			1.934			2.138
Inv Mgmt — Annuities			2.240			1.561			1.782			1.701			2.751
Inv Mgmt — Mutual Funds(1)			1.912			2.151			2.577			1.523			1.829
Inv Mgmt — Wrap Fee & Other			0.595			0.549			0.525			0.469			1.115
Consolidating Adjustments			(1.041	)		(0.499	)		(0.765	)		(0.608	)		(1.576	)
	Gross Deposits		9.157			10.593			11.256			11.439			12.671
Account Balances — End of Year
Lincoln Retirement — Fixed Annuities			16.505			16.791			15.394			16.491			18.085
Lincoln Retirement — Variable Annuities			33.358			41.493			39.427			34.638			27.438
Lincoln Retirement — Life Insurance						0.155			0.160			0.149
Life Insurance Segment — Life Insurance			9.243			10.217			10.847			11.377			12.086
Inv Mgmt — Annuities			14.257			15.557			13.527			11.835			9.981
Inv Mgmt — Mutual Funds(1)			13.528			13.632			13.261			11.552			10.297
Inv Mgmt — Wrap Fee & Other			2.512			1.618			1.342			1.719			2.270
Consolidating Adjustments			(8.891	)		(9.175	)		(7.757	)		(6.676	)		(5.123	)
	Account Balances		80.512			90.288			86.201			81.086			75.034

			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
			2000			2000			2000			2001			2001			2001			2001			2002			2002			2002			2002			2003
Deposits — For the Quarter
Lincoln Retirement — Fixed Annuities				0.490			0.513			0.482			0.560			0.668			0.896			1.218			0.906			0.853			1.091			0.822			0.776
Lincoln Retirement — Variable Annuities				0.793			0.729			0.846			0.887			0.703			0.684			0.793			0.808			0.787			0.603			0.545			0.648
Lincoln Retirement — Life Insurance				0.003			0.004			0.004			0.003			0.004			0.003			0.002
Life Insurance Segment — Life Insurance				0.411			0.428			0.622			0.418			0.477			0.434			0.605			0.440			0.577			0.484			0.636			0.486
Inv Mgmt — Annuities				0.358			0.456			0.589			0.540			0.403			0.434			0.323			0.589			0.601			0.756			0.806			0.488
Inv Mgmt — Mutual Funds(1)				0.586			0.554			0.563			0.483			0.355			0.336			0.348			0.452			0.562			0.416			0.399			0.450
Inv Mgmt — Managed Acct. & Other				0.106			0.140			0.131			0.142			0.127			0.074			0.127			0.159			0.194			0.293			0.469			0.202
Consolidating Adjustments				(0.126	)		(0.134	)		(0.240	)		(0.146	)		(0.110	)		(0.193	)		(0.159	)		(0.280	)		(0.333	)		(0.437	)		(0.525	)		(0.171	)
	Gross Deposits			2.621			2.690			2.996			2.886			2.627			2.669			3.258			3.074			3.240			3.206			3.151			2.880
Account Balances — End of Quarter
Lincoln Retirement — Fixed Annuities				15.884			15.660			15.394			15.430			15.551			16.051			16.491			16.534			16.910			17.650			18.085			18.537
Lincoln Retirement — Variable Annuities				43.097			42.743			39.427			34.733			36.961			30.506			34.638			35.150			31.206			25.942			27.438			26.474
Lincoln Retirement — Life Insurance				0.165			0.166			0.160			0.147			0.157			0.134			0.149
Life Insurance Segment — Life Insurance				10.538			10.716			10.847			10.764			11.066			10.939			11.377			11.667			11.759			11.726			12.086			12.233
Inv Mgmt — Annuities				14.888			14.853			13.527			11.822			12.532			10.714			11.835			11.920			10.896			9.327			9.981			9.660
Inv Mgmt — Mutual Funds(1)				14.069			14.571			13.261			11.530			12.215			10.726			11.552			11.597			11.033			10.069			10.297			10.241
Inv Mgmt — Managed Acct. & Other				1.304			1.256			1.342			1.653			1.774			1.635			1.719			1.821			1.847			1.820			2.270			2.292
Consolidating Adjustments				(8.848	)		(8.658	)		(7.757	)		(6.601	)		(7.092	)		(6.002	)		(6.676	)		(6.640	)		(6.000	)		(4.940	)		(5.123	)		(4.891	)
		Account Balances		91.097			91.307			86.201			79.479			83.164			74.704			81.086			82.049			77.651			71.594			75.034			74.546

Total Domestic Net Flows
Unaudited [Billions of Dollars]

For the Year		1998			1999			2000			2001			2002
Lincoln Retirement			(1.244	)		(1.165	)		(2.874	)		0.105			0.453
Life Insurance Segment			0.113			0.985			1.158			1.163			1.320
Investment Management Segment- Retail(1)			1.772			(2.209	)		(1.499	)		(0.375	)		0.806
Consolidating Adjustments			(0.158	)		1.276			1.022			0.035			(0.082	)
	Total Retail Net Flows		0.483			(1.114	)		(2.194	)		0.927			2.496
Investment Management Segment- Institutional			(2.702	)		(2.240	)		(5.694	)		(0.231	)		2.106
Consolidating Adjustments									0.035			(0.015	)		0.005
	Total Net Flows		(2.219	)		(3.354	)		(7.854	)		0.681			4.608

		Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar		Jun			Sep		Dec			Mar
For the Quarter		2000			2000			2000			2001			2001			2001			2001			2002		2002			2002		2002			2003
Lincoln Retirement			(0.682	)		(0.812	)		(0.681	)		(0.590	)		(0.196	)		0.261			0.631			0.088		0.223			0.068		0.074			0.095
Life Insurance Segment			0.235			0.277			0.404			0.237			0.304			0.239			0.383			0.236		0.385			0.297		0.402			0.296
Investment Management Segment- Retail(1)			(0.364	)		(0.315	)		0.059			(0.021	)		(0.146	)		(0.118	)		(0.091	)		0.089		0.167			0.048		0.502			0.014
Consolidating Adjustments			0.191			0.263			0.092			0.163			0.042			(0.002	)		(0.169	)		0.009		(0.038	)		0.133		(0.187	)		0.162
	Total Retail Net Flows		(0.620	)		(0.587	)		(0.126	)		(0.211	)		0.004			0.380			0.754			0.423		0.737			0.545		0.791			0.568
Investment Management Segment- Instit.			(1.056	)		(0.983	)		(1.043	)		(0.417	)		0.445			(0.155	)		(0.103	)		0.731		0.455			0.348		0.572			0.330
Consolidating Adjustments			0.047			0.002			(0.013	)		(0.020	)		0.018			(0.030	)		0.016			0.022		(0.026	)		0.008		0.001			(0.030	)
	Total Net Flows		(1.629	)		(1.569	)		(1.182	)		(0.648	)		0.467			0.195			0.667			1.176		1.166			0.901		1.364			0.868

NOTE: Excludes amounts reported as Assets Under Management — Insurance Assets

(1)  Retail assets under management have been restated to include assets under administration beginning in January of 2000. See details on pages 26 and 27.

3/31/2003 PAGE 33

Consolidated Investment Data — Assets Managed
Unaudited [Billions of Dollars]

December 31					1998		1999		2000		2001		2002
Assets Managed by Source
LNC’s Investments and Cash:
	Fixed maturity securities					30.233		27.689		27.450		28.346		32.767
	Equity securities					0.543		0.604		0.550		0.470		0.337
	Other investments					7.154		7.286		7.369		7.297		6.895
				Total LNC Investments(1)		37.929		35.578		35.369		36.113		40.000
Separate accounts						43.409		53.654		50.580		44.833		36.178
Cash and Invested Cash						2.433		1.896		1.927		3.095		1.691
Discontinued Operations
		Total LNC				83.772		91.128		87.876		84.042		77.869
Non-affiliate assets managed						50.061		49.314		41.861		38.421		38.052
		Total Assets Managed				133.833		140.443		129.737		122.463		115.921
Assets Managed by Advisor
Investment Management segment(1) (See page 27 for additional detail)						61.490		61.375		53.354		48.411		46.495
DLIA-Corp (Assets managed internally-see page 27)						39.432		35.934		35.686		38.119		41.104
Lincoln (UK)						7.573		8.589		7.873		6.847		6.351
Policy Loans (within business units)						1.840		1.892		1.961		1.940		1.946
Non-LNC Affiliates						23.497		32.653		30.863		27.146		20.026
			Total Assets Managed			133.833		140.443		129.737		122.463		115.921

					Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar
End of Quarter					2000		2000		2000		2001		2001		2001		2001		2002		2002		2002		2002		2003
Assets Managed by Source
LNC’s Investments and Cash:
	Fixed maturity securities					27.078		27.264		27.450		27.811		27.874		28.932		28.346		28.841		29.725		32.037		32.767		33.885
	Equity securities					0.560		0.570		0.550		0.560		0.534		0.478		0.470		0.439		0.419		0.397		0.337		0.249
	Other investments					7.419		7.471		7.369		7.374		7.388		7.379		7.297		7.084		7.016		6.928		6.895		6.874
				Total LNC Investments(1)		35.057		35.305		35.369		35.744		35.796		36.788		36.113		36.363		37.160		39.363		40.000		41.008
Separate accounts						54.924		54.411		50.580		44.506		47.140		39.480		44.833		44.917		40.580		34.069		36.178		34.775
Cash and invested cash						1.619		1.436		1.927		2.015		1.502		1.996		3.095		1.700		2.265		1.600		1.691		1.635
		Total LNC				91.601		91.152		87.876		82.266		84.438		78.264		84.042		82.979		80.005		75.031		77.869		77.419
Non-affiliate assets managed						44.209		43.287		41.861		38.416		40.109		35.889		38.421		39.853		39.531		35.650		38.052		37.501
		Total Assets Managed				135.810		134.439		129.737		120.682		124.547		114.153		122.463		122.832		119.536		110.682		115.921		114.920
Assets Managed by Advisor
Investment Management segment(1) (See page 27 for additional detail)						56.986		55.998		53.355		48.207		50.737		44.958		48.413		50.001		48.741		43.361		46.494		45.719
DLIA-Corp (Assets managed internally-see page 27)						34.891		34.981		35.686		36.324		36.018		37.337		38.119		37.171		38.476		40.416		41.104		42.130
Lincoln (UK)						8.058		7.838		7.873		7.012		7.027		6.474		6.847		6.772		6.753		6.068		6.351		5.962
Policy Loans (within business units)						1.915		1.936		1.961		1.947		1.947		1.943		1.940		1.918		1.906		1.899		1.946		1.929
Non-LNC Affiliates						33.960		33.687		30.862		27.192		28.817		23.441		27.144		26.971		23.660		18.938		20.027		19.180
			Total Assets Managed			135.810		134.439		129.737		120.682		124.547		114.153		122.463		122.832		119.536		110.682		115.921		114.920

(1)  Retail assets under management have been restated to include assets under administration beginning in January of 2000. See details on pages 26 and 27.

3/31/2003 PAGE 34

Consolidated Investment Data
Unaudited [Millions of Dollars except as noted]

For the Year Ended December 31					1998			1999			2000			2001			2002
Net Investment Income
		Fixed Maturity Securities				2065.8			2232.9			2148.7			2121.0			2117.0
		Equity Securities				22.8			20.1			19.5			17.6			15.4
		Mortgage loans on real estate				383.6			369.2			373.8			374.5			356.8
		Real estate				86.8			64.1			51.8			49.5			47.4
		Policy loans				99.5			116.5			125.0			125.3			134.5
		Invested cash				156.8			110.3			87.2			68.4			37.6
		Other investments				88.4			51.8			66.8			69.4			16.3
			Investment revenue			2903.7			2964.8			2872.8			2825.9			2725.0
		Investment expense				(193.1	)		(122.4	)		(88.7	)		(117.1	)		(93.1	)
			Net Investment Income			2710.6			2842.5			2784.1			2708.7			2631.9
		Gross-up of Tax Exempt Income				11.6			8.1			7.8			7.2			7.5
				Adjusted Net Invest Income		2722.3			2850.5			2791.9			2715.9			2639.4
Mean Invested Assets (Amortized Cost)						36573.8			39027.5			37471.3			37616.9			38828.5
Ratio of Adjusted Net Invest Inc Over Mean Invested Assets						7.44	%		7.30	%		7.45	%		7.22	%		6.80	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments						13.7			3.8			(17.5	)		(68.7	)		(177.2	)
Gains(Losses) on Derivatives						0.0			0.0			0.0			(4.9	)		0.8
Incr (Decr) in Unreal Gains on Sec Avail-for-Sale (after DAC/Tax)						116.4			(1018.1	)		477.7			183.7			557.6
Incr (Decr) on Derivatives*															21.4			24.4
Securities Available-for-Sale [Billions of Dollars at End of Year]
	Fixed Maturity Sec (Fair Value)					30.233			27.689			27.450			28.346			32.767
	Fixed Maturity Sec (Amortized Cost)					28.640			28.357			27.373			27.956			32.379
	Equity Securities (Fair Value)					0.543			0.604			0.550			0.470			0.337
	Equity Securities (Amortized Cost)					0.437			0.481			0.458			0.444			0.326
% of Fixed Maturity Securities (Based on Fair Value)
	Treasuries and AAA					25.6	%		22.8	%		22.1	%		17.2	%		20.1	%
	AA or better					32.6	%		29.8	%		29.2	%		23.6	%		25.8	%
	BB or less					7.0	%		8.0	%		6.7	%		8.3	%		6.6	%

					Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar
For the Quarter Ended					2001			2001			2001			2001			2002			2002			2002			2002			2003
Net Investment Income
		Fixed Maturity Securities				526.9			527.0			536.9			530.1			522.5			523.8			533.6			537.0			542.3
		Equity Securities				1.0			7.8			3.7			5.1			3.4			4.3			2.7			5.1			2.8
		Mortgage loans on real estate				95.7			92.4			94.2			92.4			89.5			90.2			90.8			86.4			81.6
		Real estate				12.8			13.1			12.7			10.9			12.3			11.9			10.0			13.2			10.7
		Policy loans				31.4			31.4			31.0			31.6			30.2			31.1			31.1			42.0			30.9
		Invested cash				22.5			19.8			14.8			11.3			12.4			9.1			7.9			8.2			4.5
		Other investments				19.6			18.2			28.2			3.5			7.8			9.8			(1.2	)		(0.1	)		8.2
			Investment revenue			709.9			709.7			721.4			684.8			678.1			680.2			675.0			691.7			681.0
		Investment expense				(28.2	)		(29.0	)		(28.2	)		(31.8	)		(23.3	)		(22.8	)		(22.7	)		(24.4	)		(26.3	)
			Net Investment Income			681.7			680.7			693.3			653.1			654.8			657.4			652.4			667.3			654.6
		Gross-up of Tax Exempt Income				0.5			3.0			1.5			2.1			1.5			2.0			1.5			2.6			1.7
				Adjusted Net Invest Income		682.1			683.8			694.8			655.2			656.3			659.4			653.9			669.9			656.4
Mean Invested Assets (Amortized Cost)						37238.0			37094.5			37685.8			38449.3			38169.9			38235.5			39175.8			39733.1			40342.2
Ratio of Adjusted Net Invest Inc Over Mean Invested Assets						7.33	%		7.37	%		7.37	%		6.82	%		6.88	%		6.90	%		6.68	%		6.74	%		6.51	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments						(13.4	)		(11.5	)		(23.8	)		(20.0	)		(67.6	)		(52.7	)		(23.6	)		(33.3	)		(58.2	)
Gains (Losses) on Derivatives						(0.1	)		0.2			(0.4	)		(4.6	)		0.1			0.3			0.2			0.2			(1.2	)
Incr (Decr) in Unreal Gains on Sec Avail-for-Sale (after DAC/Tax)						178.4			(114.2	)		171.8			(52.2	)		(163.9	)		293.8			491.9			(64.3	)		118.7
Incr (Decr) on Derivatives*						23.3			3.7			(6.7	)		1.2			1.2			0.0			4.6			1.0			(3.4	)
Securities Available-for-Sale [Billions of Dollars at End of Year]
	Fixed Maturity Sec (Fair Value)					27.811			27.874			28.932			28.346			28.841			29.725			32.037			32.767			33.887
	Fixed Maturity Sec (Amortized Cost)					27.367			27.681			28.253			27.956			30.117			30.420			31.706			31.103			31.905
	Equity Securities (Fair Value)					0.560			0.534			0.478			0.470			0.439			0.419			0.397			0.337			0.249
	Equity Securities (Amortized Cost)					0.507			0.477			0.453			0.444			0.398			0.374			0.374			0.334			0.247
% of Fixed Maturity Securities (Based on Fair Value)
	Treasuries and AAA					20.3	%		19.3	%		17.9	%		17.2	%		17.8	%		18.2	%		20.0	%		20.1	%		20.3	%
	AA or better					27.1	%		26.0	%		24.3	%		23.6	%		24.7	%		25.0	%		26.7	%		25.8	%		25.8	%
	BB or less					7.2	%		7.8	%		7.2	%		8.3	%		7.5	%		6.4	%		6.6	%		6.6	%		6.6	%

*2001 includes the cumulative effect of accounting change related to the adjustment recorded upon adoption of FAS #133.

3/31/2003 PAGE 35

Common Stock / Debt Information
Unaudited [Dollars per Share, except Percentages]

For the Year Ended December 31			1992			1993			1994			1995			1996			1997			1998			1999			2000			2001			2002
Common Stock [1]
Highest Price				19.032			24.125			22.188			26.875			28.500			39.063			49.438			57.500			56.375			52.750			53.650
Lowest Price				12.625			17.344			17.313			17.313			20.375			24.500			33.500			36.000			22.625			38.000			25.150
Closing Price				18.500			21.750			17.500			26.875			26.250			39.063			40.907			40.000			47.313			48.570			31.580
Dividend Payout Ratio [2]				38.9	%		52.6	%		51.0	%		39.7	%		38.2	%		22.8	%		43.9	%		50.5	%		38.3	%		45.3	%		273.5	%
Yield [3]				4.1	%		3.8	%		4.9	%		3.4	%		3.7	%		2.7	%		2.7	%		2.9	%		2.6	%		2.6	%		4.2	%
Preferred Stock Dividend (Millions)				17.246			17.212			17.119			8.644			0.112			0.106			0.100			0.089			0.078			0.071			0.061
Debt: (End of Period)
Senior Debt Ratings
		A.M. Best																										a			a			a
		Fitch		AA			AA-			AA-			AA-			AA-			AA-			A+			A+			A+			A+			A
		Moody’s		A2			A2			A1			A2			A2			A2			A2			A2			A3			A3			A3
		Standard and Poors		A+			A+			A+			A			A			A			A-			A-			A-			A-			A-
Claims Paying Ratings:
	Lincoln Life — A.M. Best			A+			A+			A+			A+			A+			A+			A			A			A			A			A+
	Lincoln Life — Fitch			AAA			AAA			AAA			AA+			AA+			AA+			AA+			AA+			AA			AA			AA
	Lincoln Life — Moody’s			A1			A1			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3			Aa3
	Lincoln Life — Standard & Poors			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
	First Penn — A.M. Best*			A			A+			A+			A+			A+			A+			A			A			A			A			A+
	First Penn — Fitch																		AA+			AA+			AA+			AA			AA			AA
	First Penn — Moody’s																		A1			A1			A1			A1			A1			A1
	First Penn — Standard & Poors*			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
	LLA of New York — A.M. Best*															A+			A+			A			A			A			A			A+
	LLA of New York — Fitch*																		AA+			AA+			AA+			AA			AA			AA
	LLA of New York — Moody’s															A1			A1			A1			A1			A1			A1			A1
	LLA of New York — Standard & Poors*															AA-			AA-			AA-			AA-			AA-			AA-			AA-
Ratios
		Debt to Total Capitalization [4]		25.7	%		21.1	%		19.9	%		22.8	%		18.8	%		17.0	%		21.2	%		23.2	%		20.8	%		21.4	%		23.2	%
		Debt to Equity [4]		34.7	%		26.7	%		24.9	%		29.5	%		23.1	%		20.5	%		26.9	%		30.3	%		26.4	%		27.0	%		30.5	%

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

For the Quarter Ended

2000

2000

2000

2001

2001

2001

2001

2002

2002

2002

2002

2003

Common Stock:

Highest Price

40.063

56.375

50.938

48.250

52.300

52.750

49.450

53.650

52.540

42.080

35.950

35.700

Lowest Price

29.000

35.625

40.875

38.000

41.280

41.000

40.000

47.200

40.750

29.120

25.150

24.730

Closing Price

36.125

48.125

47.313

42.470

51.750

46.630

48.570

50.730

42.000

30.550

31.580

28.000

Yield [3]

3.2

%

2.4

%

2.6

%

2.9

%

2.4

%

2.6

%

2.6

%

2.5

%

3.0

%

4.2

%

4.2

%

4.8

%

Preferred Stock Dividend

0.022

0.021

0.013

0.019

0.018

0.017

0.017

0.016

0.015

0.015

0.015

0.014

(Millions)

Debt: (End of Period)

Senior Debt Ratings

A.M. Best

a

a

a

a

a

a

a

a

a

a

a

Fitch

A+

A+

A+

A+

A+

A+

A+

A+

A+

A

A

A

Moody’s

A2

A2

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

Standard and Poors

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

Claims Paying Ratings:

Lincoln Life — A.M. Best

A

A

A

A

A

A

A

A

A+

A+

A+

A+

Lincoln Life — Fitch

AA+

AA+

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

Lincoln Life — Moody’s

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Lincoln Life — Standard & Poors

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

First Penn — A.M. Best*

A

A

A

A

A

A

A

A

A+

A+

A+

A+

First Penn — Fitch

AA+

AA+

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

First Penn — Moody’s

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

First Penn — Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

LLA of New York — A.M. Best*

A

A

A

A

A

A

A

A

A+

A+

A+

A+

LLA of New York — Fitch*

AA+

AA+

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

LLA of New York — Moody’s

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

LLA of New York — Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

Ratios

Debt to Total Capitalization [4]

21.8

%

21.2

%

20.8

%

22.2

%

21.2

%

21.1

%

21.4

%

22.7

%

22.6

%

23.1

%

23.2

%

23.1

%

Debt to Equity [4]

28.1

%

27.1

%

26.4

%

28.4

%

26.7

%

26.6

%

27.0

%

29.1

%

29.0

%

30.0

%

30.5

%

30.0

%

*     Rating based on affiliation with Lincoln Life

[1] Stock prices include 2-for-1 splits in June 1993 and June 1999

[2] Indicated dividend divided by net income

[3] Indicated dividend divided by the closing price

[4] Equity used in calculation assumes securities at cost. Minority interest-preferred securities of subsidiary companies (hybrid securities) are considered 50% debt and 50% equity.

3/31/2003 PAGE 36

Retroactive Adoption of FAS 123
Unaudited (Millions of Dollars)

		Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec
		2001			2001			2001			2001			2002			2002			2002			2002			2001			2002
Net Income
Lincoln Retirement:
Net Income — As previously reported			76.6			79.9			58.6			54.2			47.6			10.2			(6.0	)		6.0			269.3			57.8
	Change in Operating & Administrative Expense		(1.6	)		(1.6	)		(1.6	)		(1.6	)		(1.5	)		(1.6	)		(1.6	)		(1.6	)		(6.4	)		(6.3	)
	Federal Income Tax		(0.5	)		(0.6	)		(0.6	)		(0.5	)		(0.5	)		(0.6	)		(0.6	)		(0.6	)		(2.2	)		(2.3	)
	After Tax Adjustment		(1.1	)		(1.0	)		(1.0	)		(1.1	)		(1.0	)		(1.0	)		(1.0	)		(1.0	)		(4.2	)		(4.0	)
Net Income — Restated			75.5			78.9			57.6			53.1			46.6			9.2			(7.0	)		5.0			265.1			53.8
Life Insurance:
Net Income — As previously reported			62.9			53.5			64.7			51.9			44.2			57.4			47.1			60.2			233.0			208.9
	Change in Operating & Administrative Expense		(1.4	)		(1.4	)		(1.4	)		(1.4	)		(1.1	)		(1.1	)		(1.1	)		(1.1	)		(5.6	)		(4.4	)
	Federal Income Tax		(0.5	)		(0.5	)		(0.5	)		(0.5	)		(0.4	)		(0.4	)		(0.4	)		(0.4	)		(2.0	)		(1.6	)
	After Tax Adjustment		(0.9	)		(0.9	)		(0.9	)		(0.9	)		(0.7	)		(0.7	)		(0.7	)		(0.7	)		(3.6	)		(2.8	)
Net Income — Restated			62.0			52.6			63.8			51.0			43.5			56.7			46.4			59.5			229.4			206.1
Investment Management:
Net Income — As previously reported			2.0			2.9			2.9			4.0			7.0			6.2			3.1			9.3			11.8			25.6
	Change in Operating & Administrative Expense		(6.2	)		(6.2	)		(6.8	)		(8.7	)		(6.5	)		(7.1	)		(7.2	)		(16.3	)		(27.9	)		(37.1	)
	Federal Income Tax		(1.6	)		(1.6	)		(1.7	)		(2.3	)		(1.6	)		(1.7	)		(1.8	)		(4.9	)		(7.2	)		(10.0	)
	After Tax Adjustment		(4.6	)		(4.6	)		(5.1	)		(6.4	)		(4.9	)		(5.4	)		(5.4	)		(11.4	)		(20.7	)		(27.1	)
Net Income — Restated			(2.6	)		(1.7	)		(2.2	)		(2.4	)		2.1			0.8			(2.3	)		(2.1	)		(8.9	)		(1.5	)
Lincoln UK:
Net Income — As previously reported			14.8			17.6			14.0			22.5			10.8			9.8			0.8			18.5			68.9			39.9
	Change in Operating & Administrative Expense		(0.6	)		(0.6	)		(0.6	)		(0.6	)		(0.5	)		(0.6	)		(0.6	)		(0.6	)		(2.4	)		(2.3	)
	Federal Income Tax		(0.1	)		0.0			(0.1	)		(0.1	)		0.0			0.0			0.0			0.0			(0.3	)		0.0
	After Tax Adjustment		(0.5	)		(0.6	)		(0.5	)		(0.5	)		(0.5	)		(0.6	)		(0.6	)		(0.6	)		(2.1	)		(2.3	)
Net Income — Restated			14.3			17.0			13.5			22.0			10.3			9.2			0.2			17.9			66.8			37.6
Other Operations:
Net Income — As previously reported			3.9			(12.2	)		(21.1	)		36.6			(15.1	)		(24.2	)		(170.5	)		(30.8	)		7.2			(240.6	)
	Change in Operating & Administrative Expense		(5.4	)		(5.3	)		(5.3	)		(5.3	)		(2.6	)		(2.4	)		(2.4	)		(2.4	)		(21.3	)		(9.8	)
	Federal Income Tax		(1.9	)		(1.9	)		(1.7	)		(1.8	)		(0.9	)		(0.8	)		(0.8	)		(0.8	)		(7.3	)		(3.3	)
	After Tax Adjustment		(3.5	)		(3.4	)		(3.6	)		(3.5	)		(1.7	)		(1.6	)		(1.6	)		(1.6	)		(14.0	)		(6.5	)
Net Income — Restated			0.4			(15.6	)		(24.7	)		33.1			(16.8	)		(25.8	)		(172.1	)		(32.4	)		(6.8	)		(247.1	)
Consolidated:
Net Income — As previously reported			160.2			141.7			119.1			169.2			94.5			59.4			(125.5	)		63.2			590.2			91.6
	Change in Operating & Administrative Expense		(15.2	)		(15.1	)		(15.7	)		(17.6	)		(12.2	)		(12.8	)		(12.9	)		(22.0	)		(63.6	)		(59.9	)
	Federal Income Tax		(4.6	)		(4.6	)		(4.6	)		(5.2	)		(3.4	)		(3.5	)		(3.6	)		(6.7	)		(19.0	)		(17.2	)
	After Tax Adjustment		(10.6	)		(10.5	)		(11.1	)		(12.4	)		(8.8	)		(9.3	)		(9.3	)		(15.3	)		(44.6	)		(42.7	)
Net Income — Restated			149.6			131.2			108.0			156.8			85.7			50.1			(134.8	)		47.9			545.6			48.9