8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

                August 1, 2005                

Date of Report (Date of earliest event reported)

                  Lincoln National Corporation              

(Exact name of registrant as specified in its charter)

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

1500 Market Street, West Tower, Suite 3900, Philadelphia, Pennsylvania 19102-2112

(Address of principal executive offices) (Zip Code)

(215) 448-1400

(Registrant’s telephone number)

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

On August 1, 2005, the registrant issued a press release announcing its financial results for the quarter ended June 30, 2005, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference, and the registrant’s statistical supplement for the quarter ended June 30, 2005 is attached as Exhibit 99.2 and is incorporated herein by reference.

The information, including exhibits attached hereto, furnished under this Item 12 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

(c)   Exhibits.

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

Exhibit Number	Description
99.1	Press release dated August 1, 2005, announcing Lincoln National Corporation’s financial results for the quarter ended June 30, 2005.
99.2	Lincoln National Corporation Statistical Supplement for the Quarter Ended June 30, 2005.

SIGNATURES

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

	LINCOLN NATIONAL CORPORATION
	By: /s/ Douglas N. Miller
	Name: Douglas N. Miller
	Title: Vice President, Controller and Chief Accounting Officer
Date: August 1, 2005

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release dated August 1, 2005, announcing Lincoln National Corporation’s financial results for the quarter ended June 30, 2005.
99.2	Lincoln National Corporation Statistical Supplement for the Quarter Ended June 30, 2005.

EX-99

NEWS RELEASE

Lincoln Financial Group Reports Second Quarter 2005 Earnings

Retail and Institutional Net Flows Support Solid Second Quarter Results

PHILADELPHIA, August 1, 2005 - Lincoln National Corporation (NYSE:LNC) today reported net income of $197.9 million, or $1.13 per diluted share for its second quarter of 2005. By comparison, net income for the second quarter of 2004 was $187 million, or $1.04 per diluted share.

Income from operations for the second quarter of 2005 was $218.6 million, or $1.25 per diluted share, compared with $181.4 million, or $1.00 per diluted share, in the second quarter of 2004. Return on equity (ROE), based on income from operations, for the quarter was 16.2%. The attached table defines and reconciles income from operations and ROE, non-GAAP measures, to net income and ROE calculated in accordance with GAAP.

While benefiting from continued growth in deposits across the enterprise, the second quarter was impacted by better than expected performance in Lincoln’s alternative investments, specifically partnership income and fees earned from its standby real estate equity commitment program. In addition, the quarter’s results included a favorable tax adjustment. “Although these income items vary in magnitude quarter to quarter, they provide economic value that can be invested into the business or returned to shareholders,” said Jon A. Boscia, chairman and chief executive officer of Lincoln Financial Group.

Consolidated domestic retail deposits, which include annuities, mutual funds, life insurance and other personal wealth accumulation products, reached $6.9 billion, up 48% over the second quarter of 2004. Lincoln reported consolidated retail net flows for the quarter of $3.5 billion, up 110% from the prior year quarter. Institutional net flows were a record $4.1 billion in the quarter, up 100% over the prior year quarter and up 238% over first quarter, 2005.

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“Both the retail and institutional businesses delivered robust results in the second quarter, as Lincoln continued to shape its business around clients’ retirement and income objectives,” said Boscia.

Lincoln Retirement

Second quarter income from operations for the retirement segment was $119.4 million versus $101.8 million for the same period a year ago. Income from operations in 2005 and 2004 benefited from approximately $20 million and $14 million respectively, after-tax, of better than expected investment income.

Gross deposits were $2.5 billion for the quarter, while net flows reached a record $857 million. The second quarter was fueled by strong performance in the following retirement income products and features:

§   The Lincoln SmartSecurity^SM Advantage, a step-up withdrawal rider on individual variable annuity products, was elected on 54% of second quarter deposits on those products where the rider is available, consistent with the prior quarter.

§   Lincoln’s i4LIFE^®Advantage, a patented individual variable annuity rider that provides investors with a retirement income management tool, recorded year-to-date elections of $408 million, nearly achieving the full-year 2004 level of $410 million. Total assets under management have now crested at $1 billion.

§   The Lincoln Alliance^® Program, an employer-sponsored retirement plan solution, reached $336 million in deposits in the second quarter, 2005.

“The strong deposits and net flows across multiple retirement planning solutions demonstrate Lincoln’s ability to respond to prevailing and emerging market needs while adhering to our prescribed risk tolerance levels.” said Boscia.

Life Insurance

Life insurance income from operations was $75.8 million, compared to $76.2 million in the second quarter of 2004. Income from operations in 2005 and 2004 included approximately $5 million and $4 million respectively, after-tax, of better than expected investment income.  The benefit in the second quarter 2005 was partially offset by unfavorable mortality expenses of approximately $2 million.

First year premiums from retail life insurance were consistent with the prior year quarter. Included in the first year retail premiums was a 34% increase in variable universal life over second quarter 2004. “Once again, the strength and diversity in the life product portfolio coupled with our strategic partnerships provided balance to Lincoln’s results,” said Boscia. “We are excited to see the innovative Lincoln VUL^ONE product, a hybrid variable universal life policy with upside potential and downside protection, gaining traction in the marketplace,” added Boscia.

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Investment Management

The investment management segment reported income from operations of $3.9 million for the quarter, compared with income from operations of $13.4 million for the same period a year ago. The year ago quarter included $4 million of income from operations from Delaware International Advisors Ltd. (DIAL), which was sold in September, 2004. In the second quarter of 2005, income from operations benefited from strong flows and investment performance, offset by net costs associated with recent investment talent acquisitions of approximately $4 million, consistent with management’s first quarter guidance.

Total net flows were a record $6.4 billion, with deposits reaching a record $4.0 billion in the retail division and a record $5.9 billion in the institutional division.

“With the addition of an international value equity team in June, combined with three prior talent acquisitions in key investment styles, Delaware is well positioned with strong performance in all major asset classes,” said Boscia.

Lincoln UK

For the second quarter, the Lincoln UK segment continued to produce positive results, as it reported income from operations of $10.3 million, which compares with $10.7 million in the second quarter of 2004.

Corporate and Other

Corporate and Other recorded income from operations for the second quarter of $9.2 million, versus an operating loss of $20.7 million in the second quarter of 2004. Distribution losses were $9.8 million in the second quarter of 2005 versus $11.8 million a year ago. The reduction in distribution losses at Lincoln Financial Distributors reflects gains in wholesaler productivity and level fixed expenses,  despite a nearly 20% increase in the number of wholesalers during the last year. Progress at Lincoln Financial Advisors reflects the implementation of their Consistency of Excellence model and the associated  reduction in operating expenses.  The second  quarter  of 2005  included  a $23.5  million,  after-tax, reduction in the deferred tax asset valuation allowance  previously  established in the company's Barbados subsidiary.   

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2005 Outlook

In the second half of 2005, Lincoln expects to deliver solid deposits and flows in variable annuities, employer-sponsored, and investment management businesses. A diverse product portfolio, investment performance, and strategic distribution relationships should continue to drive results.

For the retirement segment, Lincoln anticipates income from operations, as reported in the second quarter of 2005, to benefit from continued positive variable flows, excluding the period’s better than expected investment income items and adjusted for the equity markets.

Lincoln expects the life segment’s income from operations to build from results reported in the second quarter after factoring in greater than expected investment income items and assuming normalized mortality. Lincoln’s expectation for growth assumes a modest increase in life insurance in-force and is sensitive to the mix of business between permanent and term insurance.  Lincoln continues to expect first year premiums for 2005 to equal or modestly outperform 2004 levels. Life sales continue to be pressured by competitive market conditions, while the effect of the revised regulatory reserving requirements on universal life sales is unclear at this time.   

For investment management, Lincoln expects income from operations to build from levels experienced throughout 2004 after adjusting for the sale of DIAL and incorporating equity market impacts. As outlined in first quarter guidance, Lincoln anticipates $1 million per quarter, after tax, of additional expenses related to investment talent acquisitions.

Lincoln confirms its previous guidance for a modest improvement in distribution results over 2004 levels, recognizing these results remain sensitive to sales, especially life insurance, which traditionally increase in the later half of the year. The outlook for distribution assumes continued successful implementation of the new affiliation model at Lincoln Financial Advisors as well as continued wholesaler expansion and productivity gains at Lincoln Financial Distributors.

Lincoln confirms previous 2005 guidance for the UK segment income from operations, the reinsurance deferred gain amortization income, and the annual pre-tax interest expense. Lincoln’s equity market guidance and spread compression guidance remain unchanged from the sensitivity detailed in its 2004 10-K.

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This outlook contains estimates that are forward-looking, and Lincoln’s actual experience in 2005 will almost certainly differ from many of the assumptions utilized in the outlook.  The company’s expectations for these and a large number of other factors will probably change, leading us to revise our estimates over time. Please see the Forward-Looking Statements - Cautionary Language that follow for additional factors that may cause actual results to differ materially from our current expectations.

Capital and Share Repurchase

As of June 30, 2005, the book value per share of Lincoln National Corporation common stock, excluding accumulated other comprehensive income, was $31.56, compared with $28.51 a year ago. Book value per share, including accumulated other comprehensive income, was $36.86, compared with $31.32 a year ago. In the second quarter of 2005, 1.58 million shares were repurchased at a total cost of $69 million.

Lincoln National Corporation will discuss the company’s second quarter results with investors in a conference call beginning at 11:00 a.m. (ET) on Tuesday, August 2, 2005. The company will also post its second quarter 2005 statistical supplement on its Web site, www.lfg.com.

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in Philadelphia, Lincoln Financial Group has consolidated assets of $119 billion as of June 30, 2005, and had annual consolidated revenues of $5.4 billion in 2004. Through its wealth accumulation, retirement income and wealth protection businesses, the company provides annuities, life insurance, 401(k) and 403(b) plans, savings plans, mutual funds, managed accounts, institutional investment, and comprehensive financial planning and advisory services. For more information, please visit www.lfg.com.

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For more information please visit www.lfg.com

Contacts:	Priscilla Brown
	215 448-1422
	Vice President, Investor Relations and Strategic Communications
	investorrelations@LFG.com
	Jim Sjoreen
	215 448-1420
	Vice President, Investor Relations
	investorrelations@LFG.com
	Tom Johnson
	215 448-1454
	Second Vice President, Media Relations
	mediarelations@LFG.com

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Definition of Income (Loss) from Operations and ROE

Income (loss) from operations and ROE, as used in the earnings release, are non-GAAP financial measures and are not substitutes for net income (loss) and ROE, calculated using GAAP measures. Income (loss) from operations represents after-tax results excluding, as applicable, realized gains or losses on investments and derivatives, cumulative effect of accounting changes, restructuring charges, reserve changes on business sold through reinsurance, gain on sale of subsidiaries and book of business and loss on early retirement of debt. The earnings used to calculate ROE, as used in the earnings release, are income (loss) from operations. Income (loss) from operations is an internal measure used by the company in the management of its operations. Management believes that this performance measure explains the results of the company’s ongoing operations in a manner that allows for a better understanding of the underlying trends in the company’s current business because the excluded items are either unpredictable and/or not related to decisions regarding the underlying businesses.

	For the Quarter		For the Six Months
	Ended June 30,		Ended June 30,
	2005	2004	2005	2004
Net Income	$197.9	$187.0	$376.8	$317.5
Less:
Net realized gain/loss on investments	(5.9)	(6.7)	(7.7)	(19.8)
Restructuring charges	(15.0)	(3.5)	(16.3)	(10.9)
Reserve development and related amortization
on business sold through reinsurance	0.2	0.2	0.4	0.4
Gain on sale of subsidiaries/businesses		15.6	9.3	15.6
Cumulative effect of accounting change				(24.5)
Income from Operations	$218.6	$181.4	$391.1	$356.7
Earnings per share (diluted)
Net Income	$1.13	$1.04	$2.14	$1.75
Income from Operations	$1.25	$1.00	$2.22	$1.97
Average Equity
(Excluding accumulated other comprehensive income)	$5,392.3	$5,024.6	$5,365.6	$5,020.7
Return on Equity
Net Income	14.7%	14.9%	14.0%	12.6%
Income from Operations	16.2%	14.4%	14.6%	14.2%

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LINCOLN NATIONAL CORPORATION

DIGEST OF EARNINGS

	For the Quarter Ended June 30
	2005	2004
Revenue	$1,373,176,000	$1,358,719,000
Net Income	197,862,000	187,003,000
EPS -Basic	$1.15	$1.05
EPS - Diluted	$1.13	$1.04
Ave. Shares - Basic	172,758,060	177,354,689
Ave. Shares - Diluted	175,353,027	180,301,429
	For the Year Ended June 30
	2005	2004
Revenue	$2,686,416,000	$2,617,750,000
Net Income	376,798,000	317,460,000
EPS -Basic	$2.18	$1.79
EPS - Diluted	$2.14	$1.75
Ave. Shares - Basic	173,224,239	177,815,095
Ave. Shares - Diluted	175,811,246	180,755,830

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Forward-Looking Statements - Cautionary Language

Certain statements made in this release and in other written or oral statements made by LNC or on LNC’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe”, “anticipate”, “expect”, “estimate”, “project”, “will”, “shall” and other words or phrases with similar meaning. LNC claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements include, among others:

• Legislative, regulatory or tax changes, both domestic and foreign, including Actuarial Guideline 38, that affect the cost of, or demand for, LNC’s products, the required amount of reserves and/or surplus, or otherwise affect our ability to conduct business, including changes to statutory reserves and/or risk-based capital requirements related to secondary guarantees under universal life and variable annuity products; restrictions on revenue sharing and 12b-1 payments; and the repeal of the federal estate tax;

• The institution of legal or regulatory proceedings against LNC or its subsidiaries and the outcome of any legal or regulatory proceedings, such as: (a) adverse actions related to present or past business practices common in businesses in which LNC and its subsidiaries compete; (b) adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities, and extra-contractual and class action damage cases; (c) new decisions which change the law; and (d) unexpected trial court rulings;

• Changes in interest rates causing a reduction of investment income, the margins of LNC’s fixed annuity and life insurance businesses and demand for LNC’s products;

• A decline in the equity markets causing a reduction in the sales of LNC’s products, a reduction of asset fees that LNC charges on various investment and insurance products, an acceleration of amortization of deferred acquisition costs and an increase in liabilities related to guaranteed benefit features of LNC’s variable annuity products;

• Ineffectiveness of LNC’s various hedging strategies used to offset the impact of declines in the equity markets;

• A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates and equity market returns from LNC’s assumptions used in pricing its products, in establishing related insurance reserves, and in the amortization of intangibles that may result in an increase in reserves and a decrease in net income;

• The effect of life settlement business on persistency assumptions used in pricing life insurance business, which may cause profitability of some business to fall below expectations and could potentially result in deficient reserves;

• Changes in GAAP that may result in unanticipated changes to LNC’s net income;

• Lowering of one or more of LNC’s debt ratings issued by nationally recognized statistical rating organizations, and the adverse impact such action may have on LNC’s ability to raise capital and on its liquidity and financial condition;

• Lowering of one or more of the insurer financial strength ratings of LNC’s insurance subsidiaries, and the adverse impact such action may have on the premium writings, policy retention, and profitability of its insurance subsidiaries;

• Significant credit, accounting, fraud or corporate governance issues that may adversely affect the value of certain investments in the portfolios of LNC’s companies requiring that LNC realize losses on such investments;

• The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including LNC’s ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;

• The adequacy and collectibility of reinsurance that LNC has purchased;

• Acts of terrorism or war that may adversely affect LNC’s businesses and the cost and availability of reinsurance;

• Competitive conditions that may affect the level of premiums and fees that LNC can charge for its products;

• The unknown impact on LNC’s business resulting from changes in the demographics of LNC’s client base, as aging baby-boomers move from the asset-accumulation stage to the asset-distribution stage of life;

• Loss of key portfolio managers in the Investment Management segment, financial planners in Lincoln Financial Advisors or wholesalers in Lincoln Financial Distributors; and

• Changes in general economic or business conditions, both domestic and foreign, that may be less favorable than expected and may affect foreign exchange rates, premium levels, claims experience, the level of pension benefit costs and funding, and investment results.

The risks included here are not exhaustive. LNC’s annual reports on Form 10-K, current reports on Form 8-K and other documents filed with the Securities and Exchange Commission include additional factors which could impact LNC’s business and financial performance. Moreover, LNC operates in a rapidly changing and competitive environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors.

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

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EX-99.2

Lincoln Statistical Report

Second Quarter

2005

Lincoln Financial Group

This document is dated August 1, 2005. It may not be accurate after such date and LNC

does not undertake to update or keep it accurate after such date.

Lincoln Financial Group
Statistical Report
Second Quarter
2005
Table of Contents
LFG Analyst Coverage
Notes
Financial Highlights	1 - 6
Ten-Year Summary	7
Quarterly Summary	8
Consolidated Statements of Income	9 - 10
Consolidating Statements of Income from Operations	11 - 12
Five-Year Comparative Balance Sheet	13
Quarterly Balance Sheet	14
Consolidating Balance Sheets	15 - 16
Lincoln Retirement
Income Statement & Operational Data	17 - 18
Account Value Roll Forward	19 - 20
Annuity Account Values	19 - 20
Life Insurance
Income Statements	21 - 22
Operational Data	23
Account Value Roll Forward	24 - 25
Investment Management
Income Statements	26 - 27
Assets Under Management Roll Forward	28 - 29
Lincoln UK
Income Statements	30 - 31
Operational Data	32
Other Operations	33
Restructuring Charges	34
Consolidated
Domestic Retail Deposits / Account Balances	35
Total Domestic Net Flows	35
Assets Managed	36
Investment Data	37
Common Stock / Debt Information	38

6/30/2005			ii
NOTES
Definitions and Presentation
"Income from Operations," "Operating Revenue," and "Return on Capital" are non-GAAP financial measures and do not replace GAAP net income (loss) and revenues. Detailed reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure are included in this statistical supplement.
*	We exclude the after-tax effects of the following items from GAAP net income to arrive at income from
	operations:
	*	Realized gains and losses on investments and derivatives,
	*	Restructuring charges,
	*	Gains and losses related to reinsurance embedded derivatives/trading account assets,
	*	The cumulative effect of accounting changes,
	*	Reserve changes on business sold through reinsurance net of related deferred gain amortization,
	*	Gains and losses on the sale of subsidiaries and blocks of business,
	*	Loss on early retirement of debt, including subordinated debt
*	Operating revenue represents revenue excluding the following, as applicable:
	*	Realized gains or losses on investments and derivatives,
	*	Gains and losses related to reinsurance embedded derivatives/trading account assets,
	*	Gains and losses on the sale of subsidiaries and blocks of business,
	*	Deferred gain amortization related to reserve changes on business sold through reinsurance,
*	Return on capital measures the effectiveness of LNC's use of its total capital, which includes equity (excluding
	accumulated other comprehensive income), debt and junior subordinated debentures issued to affiliated trusts.
	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 effect of leveraging on
	LNC's consolidated results.
Income from operations, operating revenue, and return on capital are internal measures used by LNC in the management of its operations. Management believes that these performance measures explain the results of operations of LNC's ongoing operations in a manner that allows for a better understanding of the underlying trends in LNC's current business because the excluded items are either unpredictable and/or not related to decisions regarding the underlying businesses.
*	Certain operating and statistical measures are included in this report to provide supplemental data regarding the
	performance of LNC’s current business. These measures include deposits, sales, net flows, first year premium, inforce,
	spread, and assets under management.
*	On September 24, 2004, LNC completed the sale of its London-based international investment unit to its management. Certain metrics pages (2, 28A,29A, 35A, 36A) have been presented excluding the investment assets managed by the London-based international investment unit to provide more consistent comparisons between periods.
*	Certain reclassifications have been made to the prior periods presented to conform to the June 30, 2005 presentation.
Accounting Changes
*	Effective January 1, 2004 LNC Implemented the Statement of Position 03-1, "Accounting and reporting by Insurance Enterprises for certain nontraditional long-duration contracts and for Separate Accounts ("the SOP"). Among other things, the SOP establishes standards for computing reserves for products with guaranteed benefits such as GMDB and for certain riders for Universal Life contracts. The effects of implementing the SOP, including any related effects on DAC from changes in estimated gross profits resulting from implementing the provisions of the SOP were recorded as a cumulative effect adjustment. The first quarter of 2004 resulted in a cumulative effect adjustment of $24.5 million ($21.8 million in Lincoln Retirement and $2.7 million in Life Insurance segments).
*	Effective January 1, 2003, LNC adopted the fair value recognition method of accounting for its stock option incentive plans under Statement of Financial Accounting Standards ("FAS") No. 123, "Account for Stock-based Compensation" ("FAS 123"). LNC adopted the retroactive restatement method under FAS No. 148, "Accounting for Stock-based Compensation - Transition and Disclosure." As a result, LNC restated 2000, 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. Years prior to 2000 presented in this statistical report have not been restated.

6/30/2005																						PAGE 1
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
	For the Quarter Ended June 30												For the Six Months Ended June 30
	2005			2004									2005			2004
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Income from Operations - By Segment
Lincoln Retirement	$	119.4		$	101.8		$	17.7			17.4	%	$	218.1		$	204.0		$	14.1			6.9	%
Life Insurance		75.8			76.2			(0.3	)		(.4	%)		143.6			150.9			(7.4	)		(4.9	%)
Investment Management		3.9			13.4			(9.5	)		(71.1	%)		11.2			25.9			(14.6	)		(56.5	%)
Lincoln UK		10.3			10.7			(0.4	)		(3.7	%)		20.4			16.9			3.4			20.1	%
Corporate & Other		9.2			(20.7	)		29.9						(2.1	)		(41.0	)		38.9
Total Income from Operations	$	218.6		$	181.4		$	37.3			20.6	%	$	391.1		$	356.7		$	34.5			9.7	%
Realized gains (losses) on investments and derivatives		(2.7	)		(13.4	)		10.7						(7.3	)		(23.7	)		16.5
Net gain (loss) on reinsurance
derivative/trading account securities		(3.3	)		6.7			(10.0	)					(0.5	)		3.9			(4.4	)
Gain on sale of subsidiaries/ businesses					15.6			(15.6	)					9.3			15.6			(6.4	)
Reserve development/ amortization of related deferred gain		0.2			0.2									0.4			0.4
Restructuring charges		(15.0	)		(3.5	)		(11.6	)					(16.3	)		(10.9	)		(5.3	)
Cumulative effect of accounting change																	(24.5	)		24.5
Net Income	$	197.9		$	187.0		$	10.9			5.8	%	$	376.8		$	317.5		$	59.3			18.7	%
Earnings per share (diluted)
Income from Operations	$	1.25		$	1.00		$	0.24			23.9	%	$	2.22		$	1.97		$	0.25			12.7	%
Realized gains (losses) on investments and derivatives	$	(0.01	)	$	(0.07	)	$	0.07					$	(0.04	)	$	(0.14	)	$	0.10
Net gain (loss) on reinsurance
derivative/trading account securities	$	(0.02	)	$	0.04		$	(0.06	)							$	0.02		$	(0.02	)
Gain on sale of subsidiaries/ businesses				$	0.09		$	(0.09	)				$	0.05		$	0.09		$	(0.04	)
Reserve development/ amortization of related deferred gain
Restructuring charges	$	(0.09	)	$	(0.02	)	$	(0.07	)				$	(0.09	)	$	(0.06	)	$	(0.03	)
Cumulative effect of accounting change																$	(0.14	)	$	0.14
Net Income	$	1.13		$	1.04		$	0.09			8.7	%	$	2.14		$	1.75		$	0.39			22.3	%
Operating Revenue- By Segment
Lincoln Retirement	$	573.0		$	534.4		$	38.6			7.2	%	$	1,111.6		$	1,062.4		$	49.1			4.6	%
Life Insurance		497.3			484.8			12.5			2.6	%		981.5			968.1			13.3			1.4	%
Investment Management		138.0			139.0			(1.0	)		(0.7	%)		268.3			274.2			(5.8	)		(2.1	%)
Lincoln UK		78.4			81.0			(2.5	)		(3.1	%)		153.1			157.1			(4.0	)		(2.6	%)
Corporate & Other		95.2			105.5			(10.3	)		(9.8	%)		169.0			161.6			7.4			4.6	%
Total Operating Revenue	$	1,382.0		$	1,344.7		$	37.3			2.8	%	$	2,683.5		$	2,623.5		$	60.0			2.3	%
Realized gains (losses) on investments		(0.6	)		(17.8	)		17.2						(9.4	)		(29.8	)		20.5
Gains (losses) on derivatives		(3.4	)		(2.8	)		(0.6	)					(1.9	)		(6.7	)		4.8
Gain (loss) on reinsurance
derivative/trading account securities		(5.1	)		10.3			(15.4	)					(0.7	)		6.1			(6.8	)
Gain on sale of subsidiaries/ businesses					24.1			(24.1	)					14.2			24.1			(9.8	)
Amortization of deferred gain-reserve development		0.3			0.3									0.7			0.7
Total Revenue	$	1,373.2		$	1,358.7		$	14.5					$	2,686.4		$	2,617.7		$	68.7			2.6	%

6/30/2005																		PAGE 2
Financial Highlights
Unaudited [Billions of Dollars]
Operational Data by Segment	For the Quarter Ended June 30										For the Six Months Ended June 30
	2005		2004								2005		2004
	Amount		Amount		Change			% Change			Amount		Amount		Change			% Change
Lincoln Retirement
Gross Deposits	$	2.529	$	2.203	$	0.326			14.8	%	$	5.167	$	4.427	$	0.741			16.7	%
Net Flows		0.857		0.701		0.157			22.4	%		1.633		1.412		0.221			15.7	%
Account Values (Gross)		67.168		59.875		7.294			12.2	%		67.168		59.874		7.294			12.2	%
Account Values (Net of Reinsurance)		64.892		57.542		7.350			12.8	%		64.891		57.541		7.350			12.8	%
Life Insurance Segment
First Year Premium- Retail (in millions)	$	198.148	$	197.764	$	0.383			0.2	%	$	377.492	$	393.331		($15.838	)		(4.0	%)
First Year Premium- COLI (in millions)		10.226		9.856		0.371			3.8	%		35.031		24.082		10.949			45.5	%
First Year Premium- Total (in millions)		208.374		207.620		0.754			0.4	%		412.523		417.412		(4.890	)		(1.2	%)
In-force		314.005		293.247		20.758			7.1	%		314.005		293.247		20.758			7.1	%
Account Values		14.691		13.770		0.920			6.7	%		14.691		13.770		0.920			6.7	%
Investment Management Segment
Retail Deposits	$	4.034	$	2.117	$	1.916			90.5	%	$	7.415	$	4.568	$	2.847			62.3	%
Retail Net Flows		2.331		0.617		1.714			277.9	%		3.910		1.585		2.325			146.6	%
Institutional In-flows		5.852		3.331		2.521			75.7	%		7.639		5.954		1.684			28.3	%
Institutional Net Flows		4.108		2.043		2.065			101.1	%		5.325		3.703		1.621			43.8	%
Total Deposits and In-flows		9.885		5.448		4.437			81.4	%		15.053		10.522		4.531			43.1	%
Total Net Flows		6.439		2.660		3.779			142.1	%		9.235		5.289		3.946			74.6	%
Assets Under Management- Retail and Inst'l		65.963		69.643		(3.680	)		(5.3	%)		65.963		69.643		(3.680	)		(5.3	%)
Assets Under Management - Insurance-related Assets		45.219		42.528		2.690			6.3	%		45.219		42.528		2.690			6.3	%
Assets Under Management - Total Segment		111.182		112.172		(0.990	)		(0.9	%)		111.182		112.172		(0.990	)		(0.9	%)
Consolidated
Domestic Retail Deposits	$	6.859	$	4.648	$	2.211			47.6	%	$	13.108	$	9.553	$	3.555			37.2	%
Domestic Retail Account Balances		110.278		95.860		14.419			15.0	%		110.278		95.860		14.419			15.0	%
Domestic Retail Net Flows		3.504		1.669		1.835			110.0	%		6.097		3.501		2.597			74.2	%
Domestic Deposits		12.677		7.945		4.733			59.6	%		20.698		15.453		5.245			33.9	%
Domestic Net Flows		7.619		3.710		3.909			105.4	%		11.470		7.241		4.229			58.4	%
Assets Under Management		155.961		151.281		4.680			3.1	%		155.961		151.281		4.680			3.1	%
Operational Data (excluding Assets Managed by
Delaware's London-based International Investment Unit)
Investment Management Segment
Retail Deposits	$	4.034	$	2.115	$	1.918			90.7	%	$	7.415	$	4.564	$	2.850			62.4	%
Retail Net Flows		2.331		0.624		1.707			273.4	%		3.911		1.604		2.307			143.8	%
Institutional In-flows		5.852		1.372		4.480			326.6	%		7.639		2.578		5.061			196.3	%
Institutional Net Flows		4.108		0.379		3.729			984.5	%		5.325		0.938		4.387			467.5	%
Total Deposits and In-flows		9.885		3.487		6.399			183.5	%		15.053		7.142		7.911			110.8	%
Total Net Flows		6.439		1.003		5.436			541.9	%		9.236		2.543		6.693			263.2	%
Assets Under Management- Retail and Inst'l		65.963		48.471		17.492			36.1	%		65.964		48.472		17.492			36.1	%
Assets Under Management - Insurance-related Assets		45.219		42.528		2.690			6.3	%		45.219		42.528		2.690			6.3	%
Assets Under Management - Total Segment		111.182		91.000		20.182			22.2	%		111.183		91.000		20.182			22.2	%
Consolidated
Domestic Retail Deposits	$	6.859	$	4.646	$	2.213			47.6	%	$	13.108	$	9.550	$	3.558			37.3	%
Domestic Retail Account Balances		110.278		95.542		14.736			15.4	%		110.278		95.542		14.736			15.4	%
Domestic Retail Net Flows		3.504		1.676		1.828			109.1	%		6.097		3.520		2.578			73.2	%
Domestic Deposits		12.677		5.983		6.694			111.9	%		25.822		12.073		13.749			113.9	%
Domestic Net Flows		7.619		2.054		5.565			271.0	%		11.470		4.495		6.975			155.2	%
Assets Under Management		155.961		130.110		25.852			19.9	%		155.961		130.110		25.852			19.9	%

6/30/2005																						PAGE 3
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
	For the Quarter Ended June 30												For the Six Months Ended June 30
	2005			2004									2005			2004
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Balance Sheet Assets - End of Period	$	118,953.4		$	109,317.9		$	9,635.6			8.8	%	$	118,953.4		$	109,317.9		$	9,635.6			8.8	%
Shareholders' Equity
Beg of Period (including AOCI)	$	6,042.9		$	6,143.5			($100.6	)				$	6,175.6		$	5,811.6		$	364.0
End of Period (including AOCI)		6,363.5			5,518.9			844.6						6,363.5			5,518.9			844.6
End of Period (excluding AOCI)		5,448.3			5,023.6			424.7						5,448.3			5,023.6			424.7
Average Equity (excluding AOCI)		5,392.3			5,024.6			367.7						5,365.6			5,020.7			344.9
Return on Equity
Net Income/Average Equity (excluding AOCI)		14.7	%		14.9	%		(0.2	%)					14.0	%		12.6	%		1.4	%
Inc from Operations/Average Equity (excluding AOCI)		16.2	%		14.4	%		1.8	%					14.6	%		14.2	%		0.4	%
Return on Capital
Inc from Operations/Average Capital		13.4	%		11.8	%		1.6	%					12.1	%		11.6	%		0.5	%
Common Stock Outstanding
Average for the Period - Diluted		175.4			180.3			(4.9	)		(2.7	%)		175.8			180.8			(4.9	)		(2.7	%)
End of Period - Assuming Conv of Pref.		172.6			176.2			(3.6	)		(2.0	%)		172.6			176.2			(3.6	)		(2.0	%)
End of Period - Diluted		174.8			178.8			(4.0	)		(2.2	%)		174.8			178.8			(4.0	)		(2.2	%)
Book Value (including AOCI)	$	36.86		$	31.32		$	5.54			17.7	%	$	36.86		$	31.32		$	5.54			17.7	%
Book Value (excluding AOCI)	$	31.56		$	28.51		$	3.05			10.7	%	$	31.56		$	28.51		$	3.05			10.7	%
Cash Returned to Shareholders
Share Repurchase - dollar amount	$	69.0			148.3			($79.3	)				$	103.6			213.1			($109.5	)
Dividends Declared to Shareholders		63.6			62.4			1.1						127.3			124.9			2.4
Total Cash Returned to Shareholders	$	132.6		$	210.8			($78.2	)				$	230.9		$	338.0			($107.1	)
Share Repurchase - number of shares		1.576			3.226			(1.650	)					2.331			4.596			(2.265	)
Dividend Declared on Common Stock - per share	$	0.365		$	0.350		$	0.015			4.3	%	$	0.730		$	0.700		$	0.030			4.3	%
For the Quarter Ended June 30														For the Six Months Ended June 30
		2005			2004									2005			2004
		Amount			Amount									Amount			Amount
Comprehensive Income
Net Income	$	197.9		$	187.0								$	376.8		$	317.5
Foreign Currency Translation		(37.1	)		(8.1	)								(44.9	)		11.8
Net Unrealized Gains (Losses) on Securities		268.4			(626.0	)								28.4			(381.1	)
Gains (Losses) on Derivatives		4.2			(10.5	)								(2.2	)		(3.6	)
Minimum Pension Liability Adjustment		2.6			0.6									3.2			(0.9	)
Comprehensive Income	$	435.9			($457.0	)							$	361.3			($56.3	)

6/30/2005																						PAGE 4
Financial Highlights
Unaudited [Millions of Dollars]
	For the Quarter Ended June 30												For the Six Months Ended June 30
	2005			2004									2005			2004
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Condensed Consolidated Statements of Income
Revenue:
Insurance Premiums and Fees	$	499.3		$	464.2		$	35.1			7.6	%	$	988.7		$	923.5		$	65.3			7.1	%
Investment Advisory Fees		66.9			66.4			0.5			0.7	%		126.3			129.2			(2.9	)		(2.2	%)
Net Investment Income		703.6			683.1			20.4			3.0	%		1,363.4			1,360.6			2.7			0.2	%
Realized Gains (Losses) on Investments		(0.6	)		(17.8	)		17.2			(96.5	%)		(9.4	)		(29.8	)		20.5			(68.6	%)
Gains (Losses) on Derivatives		(3.4	)		(2.8	)		(0.6	)		19.9	%		(1.9	)		(6.7	)		4.8			(71.5	%)
Gain (Loss) on Reinsurance
Derivative/Trading Account Securities		(5.1	)		10.3			(15.4	)		(149.5	%)		(0.7	)		6.1			(6.8	)		(111.9	%)
Gain on Sale of Subsidiaries/ Businesses		-			24.1			(24.1	)		(100.0	%)		14.2			24.1			(9.8	)		(40.8	%)
Amortization of Deferred Gain on
Indemnity Reinsurance		19.3			18.3			1.0			5.5	%		38.5			36.5			2.1			5.6	%
Other Revenue		93.2			112.9			(19.7	)		(17.5	%)		167.2			174.4			(7.1	)		(4.1	%)
Total Revenue		1,373.2			1,358.7			14.5			1.1	%		2,686.4			2,617.7			68.7			2.6	%
Benefits and Expenses:
Benefits		593.3			583.3			10.0			1.7	%		1,165.9			1,166.6			(0.7	)		(0.1	%)
Underwriting, Acquisition,
Insurance and Other Expenses		541.9			515.9			26.1			5.1	%		1,044.7			982.9			61.8			6.3	%
Total Benefits and Expenses		1,135.2			1,099.1			36.0			3.3	%		2,210.6			2,149.5			61.1			2.8	%
Income before Federal Taxes		238.0			259.6			(21.6	)		(8.3	%)		475.8			468.2			7.6			1.6	%
Federal Income Taxes		40.1			72.6			(32.4	)		(44.7	%)		99.0			126.2			(27.2	)		(21.6	%)
Income Before Cumulative Effect of
Accounting Change		197.9			187.0			10.9			5.8	%		376.8			342.0			34.8			10.2	%
Cumulative Effect of Accounting Change,																	(24.5	)		24.5			N/A
net of tax
Net Income	$	197.9		$	187.0		$	10.9			5.8	%	$	376.8		$	317.5		$	59.3			18.7	%

6/30/2005										PAGE 5
Financial Highlights
Unaudited [Millions of Dollars]
	As of
	June			December
	2005			2004
	Amount			Amount			Change			% Change
Condensed Consolidated Balance Sheets
Assets:
Investments:
Available for Sale Securities:
Fixed Maturities	$	34,975.1		$	34,700.6		$	274.5			0.8	%
Equities		154.5			161.1			(6.6	)		(4.1	%)
Trading Securities		3,345.1			3,237.4			107.7			3.3	%
Mortgage Loans on Real Estate		3,750.6			3,856.9			(106.3	)		(2.8	%)
Real Estate		209.8			191.4			18.4			9.6	%
Policy Loans		1,866.9			1,870.6			(3.7	)		(0.2	%)
Other Long-Term Investments		561.3			489.3			72.1			14.7	%
Total Investments		44,863.3			44,507.3			356.1			0.8	%
Assets Held in Separate Accounts		57,240.0			55,204.6			2,035.4			3.7	%
Deferred Acquisition Costs		3,554.5			3,445.0			109.6			3.2	%
Present Value of In-Force		1,041.7			1,095.2			(53.5	)		(4.9	%)
Goodwill		1,194.8			1,195.9			(1.1	)		(0.1	%)
Other Assets		11,059.1			10,771.4			287.7			2.7	%
Total Assets	$	118,953.4		$	116,219.3		$	2,734.2			2.4	%
Liabilities and Shareholders' Equity
Liabilities:
Insurance and Investment Contract Liabilities	$	47,611.5		$	47,402.5		$	209.0			0.4	%
Liabilities Related to Separate Accounts		57,240.0			55,204.6			2,035.4			3.7	%
Other Liabilities		7,738.5			7,436.6			301.9			4.1	%
Total Liabilities		112,590.0			110,043.7			2,546.3			2.3	%
Shareholders' Equity:
Net Unrealized Gains on Securities
and Derivatives		863.1			836.9			26.2			3.1	%
Minimum Pension Liability Adjustment		(57.3	)		(60.5	)		3.2			5.3	%
Foreign Currency Translation Adjustment		109.4			154.3			(44.9	)		(29.1	%)
Other Shareholders' Equity		5,448.3			5,244.9			203.4			3.9	%
Total Shareholders' Equity		6,363.5			6,175.6			187.9			3.0	%
Total Liabilities and Shareholders' Equity	$	118,953.4		$	116,219.3		$	2,734.2			2.4	%

6/30/2005										PAGE 6
Financial Highlights
Unaudited [Millions of Dollars]
	June			June
	2005			2004
	Amount			Amount			Change			% Change
Roll Forward of Deferred Acquisition Costs
Balance at beginning of year	$	3,445.0		$	3,147.1		$	297.8			9.5	%
Deferral		417.1			400.5			16.5			4.1	%
Amortization		(254.1	)		(216.8	)		(37.3	)		(17.2	%)
Included in Total Benefits and Expenses		163.0			183.8			(20.8	)		(11.3	%)
Adjustment related to realized (gains) losses
on available-for-sale securities		(26.0	)		(23.7	)		(2.3	)		(9.8	%)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		10.9			241.7			(230.7	)		(95.5	%)
Foreign currency translation adjustment		(38.3	)		11.6			(49.9	)		(431.5	%)
Cumulative effect of accounting change					(39.1	)		39.1
Balance at end of period	$	3,554.5		$	3,521.4		$	33.2			0.9	%
Roll Forward of Present Value of In-Force
Balance at beginning of year	$	1,095.2		$	1,196.5			($101.3	)		(8.5	%)
Amortization		(35.4	)		(45.3	)		9.9			21.9	%
Foreign currency translation adjustment		(18.1	)		5.2			(23.3	)		(450.8	%)
Cumulative effect of accounting change					(0.6	)		0.6
Balance at end of period	$	1,041.7		$	1,155.8			($114.0	)		(9.9	%)
Roll Forward of Deferred Front-End Load*
Balance at beginning of year	$	764.1		$	750.6		$	13.5			1.8	%
Deferral		44.6			50.7			(6.2	)		(12.1	%)
Amortization		(62.1	)		(59.8	)		(2.3	)		(3.9	%)
Interest		13.3			14.6			(1.3	)		(9.0	%)
Included in Income from Operations		(4.2	)		5.6			(9.8	)		(175.8	%)
Foreign currency translation adjustment		(28.5	)		8.5			(37.0	)		(433.6	%)
Balance at end of period	$	731.4		$	764.7			($33.3	)		(4.4	%)
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

6/30/2005																												PAGE 7
Ten-Year Summary
Unaudited [Millions of Dollars, except Common Share Data]
For the Year Ended December 31	2004			2003			2002			2001			2000			1999			1998			1997			1996			1995
Operating Revenue
Lincoln Retirement	$	2,128.0		$	1,985.1		$	1,985.5		$	2,033.1		$	2,138.9		$	2,128.0		$	2,050.6		$	1,959.5		$	1,759.5		$	1,767.9
Life Insurance		1,952.9			1,906.1			1,881.7			1,897.5			1,836.4			1,762.6			1,379.5			541.5			527.6			504.9
Investment Management		534.9			474.0			418.5			454.9			517.6			515.0			508.7			447.5			400.6			280.3
Lincoln UK		342.2			274.5			275.4			278.2			430.6			443.6			438.6			425.2			393.3			351.8
Corporate & Other		335.1			284.2			355.0			1,815.9			1,951.9			1,951.6			1,690.6			1,402.2			1,560.0			1,441.5
Total Operating Revenue	$	5,293.2		$	4,923.9		$	4,916.1		$	6,479.6		$	6,875.4		$	6,800.7		$	6,068.0		$	4,775.9		$	4,641.1		$	4,346.3
Realized gains (losses) on investments
and derivatives		(61.3	)		(19.8	)		(268.9	)		(114.5	)		(28.3	)		3.0			19.0			122.6			92.5			157.6
Net gain (loss) on reinsurance
derivative/trading account securities		3.1			4.7			(2.6	)
Gain on sale of subsidiaries/ businesses		135.0						(8.3	)		12.8																		82.5
Mark to market adjustment on reclassification
from AFS to trading account securities					371.5
Amortization of deferred gain-reserve
development		1.3			3.6			(0.8	)
Total Revenue	$	5,371.3		$	5,283.9		$	4,635.5		$	6,378.0		$	6,847.1		$	6,803.7		$	6,087.1		$	4,898.5		$	4,733.6		$	4,586.5
Income from Operations
Lincoln Retirement	$	414.6		$	331.9		$	183.4		$	316.2		$	358.1		$	299.4		$	262.4		$	223.0		$	174.6		$	175.2
Life Insurance		280.3			264.5			269.0			275.3			256.7			212.0			149.2			39.9			41.2			35.4
Investment Management		43.6			34.5			1.8			(6.1	)		25.0			61.0			43.9			18.1			18.6			20.6
Lincoln UK		43.5			43.6			34.6			58.1			59.2			(13.9	)		70.9			(108.3	)		66.0			45.9
Corporate & Other		(57.2	)		(81.8	)		(57.2	)		1.0			(16.0	)		(83.1	)		4.0			(223.3	)		(1.7	)		(136.2	)
Operating Income from Cont Oper		724.8			592.8			431.6			644.4			683.0			475.5			530.4			(50.6	)		298.8			140.8
Discontinued Operations																							110.1			135.3			165.6
Income from Operations		724.8			592.8			431.6			644.4			683.0			475.5			530.4			59.4			434.1			306.5
Realized gains (losses) on investments and derivatives		(37.4	)		(12.6	)		(176.4	)		(73.5	)		(17.5	)		3.8			13.7			72.9			57.6			102.8
Net gain (loss) on reinsurance
derivative/trading account securities		(0.6	)		2.7
Gain on sale of subsidiaries/ businesses		61.9						(9.4	)		15.0																		57.7
Mark to market adjustment on reclassification
from AFS to trading account securities					241.5
Restructuring charges		(13.9	)		(35.0	)		2.0			(24.7	)		(80.2	)		(18.9	)		(34.3	)
Loss on early retirement of subordinated debt		(4.1	)		(3.7	)
Reserve development/ amortization of related
deferred gain		0.9			(18.5	)		(199.1	)
Cumulative effect of accounting change		(24.5	)		(255.2	)					(15.6	)
Discontinued operations included in
income from operations																							(110.1	)		(135.3	)		(165.6	)
Income from Continuing Operations	$	707.0		$	511.9		$	48.8		$	545.7		$	585.3		$	460.4		$	509.8		$	22.2		$	356.4		$	301.4
Discontinued Operations included
in Income from Operations																							911.8			157.2			180.8
Net Income	$	707.0		$	511.9		$	48.8		$	545.7		$	585.3		$	460.4		$	509.8		$	934.0		$	513.6		$	482.2
OTHER DATA
Assets	$	116,219.3		$	106,744.9		$	93,184.6		$	98,041.6		$	99,870.6		$	103,095.7		$	93,836.3		$	77,174.7		$	71,713.4		$	63,257.7
Shareholders' Equity
Including AOCI	$	6,175.6		$	5,811.6		$	5,347.5		$	5,303.8		$	4,980.6		$	4,263.9		$	5,387.9		$	4,982.9		$	4,470.0		$	4,378.1
Excluding AOCI	$	5,244.9		$	4,942.6		$	4,612.9		$	5,130.6		$	4,946.6		$	4,699.5		$	4,785.5		$	4,500.7		$	3,990.6		$	3,669.2
Average Equity (excluding AOCI)	$	5,075.5		$	4,756.7		$	4,983.3		$	5,057.1		$	4,831.4		$	4,786.2		$	4,636.3		$	4,172.7		$	3,851.7		$	3,400.3
Common Shares Outstanding (millions)
End of Period - Diluted		176.1			180.7			178.5			189.3			193.2			197.0			203.4			204.7			209.5			210.3
Average for the Period - Diluted		179.0			179.4			184.6			191.5			193.0			200.4			203.3			208.0			208.0			210.7
Per Share Data (Diluted)
Net Income from Continuing Operations	$	3.95		$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	0.11		$	1.71		$	1.43
Net Income	$	3.95		$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	4.49		$	2.47		$	2.29
Income (Loss) from Continuing Operations	$	4.05		$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61			($0.24	)	$	1.44		$	0.67
Income from Operations	$	4.05		$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61		$	0.29		$	2.09		$	1.45
Shareholders' Equity Per Share
Shareholders' Equity (Including AOCI)	$	35.53		$	32.56		$	30.10		$	28.32		$	26.05		$	21.76		$	26.59		$	24.63		$	21.50		$	20.95
Shareholders' Equity (Excluding AOCI)	$	30.17		$	27.69		$	25.97		$	27.39		$	25.88		$	23.98		$	23.62		$	22.25		$	19.19		$	17.55
Dividends Declared (Common Stock)	$	1.415		$	1.355		$	1.295		$	1.235		$	1.175		$	1.115		$	1.055		$	0.995		$	0.935		$	0.875
Return on Equity
Net Income/Average Equity		13.9	%		10.8	%		1.0	%		10.8	%		12.1	%		9.6	%		11.0	%		22.4	%		13.3	%		15.5	%
Inc from Operations/Average Equity		14.3	%		12.5	%		8.7	%		12.7	%		14.1	%		9.9	%		11.4	%		1.4	%		11.3	%		9.8	%
Market Value of Common Stock
High for the Year	$	50.38		$	41.32		$	53.65		$	52.75		$	56.38		$	57.50		$	49.44		$	39.06		$	28.50		$	26.88
Low for the Year	$	40.06		$	24.73		$	25.15		$	38.00		$	22.63		$	36.00		$	33.50		$	24.50		$	20.38		$	17.31
Close for the Year	$	46.68		$	40.37		$	31.58		$	48.57		$	47.31		$	40.00		$	40.91		$	39.06		$	26.25		$	26.88

6/30/2005																									PAGE 8
Quarterly Summary
Unaudited [Millions of Dollars, except Common Share Data]
	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
For the Quarter Ended	2003			2003			2003			2004			2004			2004			2004			2005			2005
Operating Revenue
Lincoln Retirement	$	487.0		$	516.0		$	506.6		$	528.0		$	534.4		$	526.2		$	539.4		$	538.5		$	573.0
Life Insurance		476.2			470.8			488.2			483.4			484.8			481.1			503.7			484.2			497.3
Investment Management		116.3			121.4			133.8			135.2			139.0			133.0			127.7			130.4			138.0
Lincoln UK		60.2			67.0			78.4			76.1			81.0			95.8			89.3			74.6			78.4
Corporate & Other		76.3			70.9			63.7			56.1			105.5			92.4			81.1			73.8			95.2
Total Operating Revenue	$	1,216.0		$	1,246.2		$	1,270.7		$	1,278.8		$	1,344.7		$	1,328.5		$	1,341.2		$	1,301.5		$	1,382.0
Realized gains (losses) on investments
and derivatives		(2.7	)		18.9			56.0			(15.9	)		(20.6	)		(27.5	)		6.7			(7.2	)		(4.0	)
Net gain (loss) on reinsurance
derivative/trading account securities								4.1			(4.2	)		10.3			(5.6	)		(1.4	)		4.4			(5.1	)
Gain on sale of subsidiaries/ businesses														24.1			110.3			0.6			14.2
Mark to market adjustment on reclassification
from AFS to trading account securities								371.5
Amortization of deferred gain-reserve development		(0.2	)		3.7			0.3			0.3			0.3			0.3			0.3			0.3			0.3
Total Revenue	$	1,213.2		$	1,268.8		$	1,702.6		$	1,259.0		$	1,358.7		$	1,406.1		$	1,347.5		$	1,313.2		$	1,373.2
Income (Loss) from Operations
Lincoln Retirement	$	86.1		$	94.3		$	94.1		$	102.2		$	101.8		$	110.2		$	100.5		$	98.6		$	119.4
Life Insurance		71.8			58.7			73.4			74.8			76.2			55.4			74.0			67.7			75.8
Investment Management		4.5			9.7			19.0			12.5			13.4			12.5			5.2			7.4			3.9
Lincoln UK		12.4			11.3			13.0			6.2			10.7			10.1			16.6			10.0			10.3
Corporate & Other		(21.5	)		(18.0	)		(20.8	)		(20.3	)		(20.7	)		(9.9	)		(6.3	)		(11.3	)		9.2
Income (Loss) from Operations		153.3			156.0			178.7			175.3			181.4			178.2			189.9			172.5			218.6
Realized gains (losses) on investments and derivatives		($1.8	)	$	12.3		$	36.3			($10.3	)		($13.4	)		($17.9	)	$	4.3			($4.6	)		($2.7	)
Net gain (loss) on reinsurance
derivative/trading account securities								2.7			(2.7	)		6.7			(3.7	)		(0.8	)		2.8			(3.3	)
Gain on sale of subsidiaries/ businesses														15.6			45.9			0.4			9.3
Mark-to-market adjustment on
reclassification from AFS to trading account securities								241.5
Reserve development/ amortization of related deferred gain		(0.1	)		(18.5	)		0.2			0.2			0.2			0.2			0.2			0.2			0.2
Restructuring charges		(8.8	)		(12.9	)		(9.8	)		(7.5	)		(3.5	)		(2.9	)		(0.0	)		(1.3	)		(15.0	)
Loss on early retirement of subordinated debt					(3.7	)														(4.1	)
Income Before Cumulative Effect of
Accounting Change		142.7			133.3			449.6			155.0			187.0			199.7			189.9			178.9			197.9
Cumulative effect of accounting change, net of tax								(255.2	)		(24.5	)
Net Income	$	142.7		$	133.3		$	194.3		$	130.5		$	187.0		$	199.7		$	189.9		$	178.9		$	197.9
OTHER DATA
Assets	$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2		$	118,953.4
Shareholders' Equity
Beg of Period (including AOCI)	$	5,450.0		$	5,815.9		$	5,586.4		$	5,811.6		$	6,143.5		$	5,518.9		$	5,970.8		$	6,175.6		$	6,042.9
End of Period (including AOCI)		5,815.9			5,586.4			5,811.6			6,143.5			5,518.9			5,970.8			6,175.6			6,042.9			6,363.5
End of Period (excluding AOCI)		4,699.8			4,790.6			4,942.6			5,004.2			5,023.6			5,109.8			5,244.9			5,365.8			5,448.3
Average Equity (excluding AOCI)		4,672.0			4,784.5			4,888.2			5,016.8			5,024.6			5,075.7			5,185.0			5,338.8			5,392.3
Common Shares Outstanding
Average for the Period - Diluted		179.2			179.9			180.4			181.2			180.3			177.7			176.7			176.6			175.4
End of Period - Diluted		179.5			179.9			180.7			181.4			178.8			177.1			176.1			176.5			174.8
Per Share Data (Diluted)
Net Income	$	0.80		$	0.74		$	1.08		$	0.72		$	1.04		$	1.12		$	1.07		$	1.01		$	1.13
Income from Operations		0.86			0.87			0.99			0.97			1.00			1.00			1.07			0.98			1.25
Shareholders' Equity Per Share
Shareholders' Equity (including AOCI)	$	32.68		$	31.34		$	32.56		$	34.36		$	31.32		$	34.15		$	35.53		$	34.74		$	36.86
Shareholders' Equity (excluding AOCI)		26.41			26.87			27.69			27.99			28.51			29.23			30.17			30.85			31.56
Dividends Declared (Common Stock)		0.335			0.335			0.350			0.350			0.350			0.350			0.365			0.365			0.365
Return on Equity
Net Income/Average Equity		12.2	%		11.1	%		15.9	%		10.4	%		14.9	%		15.7	%		14.6	%		13.4	%		14.7	%
Inc from Operations/Average Equity		13.1	%		13.0	%		14.6	%		14.0	%		14.4	%		14.0	%		14.7	%		12.9	%		16.2	%
Market Value of Common Stock
Highest Price	$	37.50		$	38.64		$	41.32		$	48.87		$	50.38		$	47.50		$	48.70		$	49.42		$	47.77
Lowest Price		27.87			34.63			35.41			40.06			43.26			41.90			40.79			44.36			41.59
Closing Price		35.63			35.38			40.37			47.32			47.25			47.00			46.68			45.14			46.92

6/30/2005																			PAGE 9
Consolidated Statements of Income
Unaudited [Millions of Dollars]
																YTD			YTD
																Jun			Jun
For the Year Ended December 31	2000			2001			2002			2003			2004			2004			2005
Revenue
Premiums	$	1,813.1		$	1,704.0		$	315.9		$	281.0		$	298.9		$	149.6		$	143.0
Surrender charges		114.7			101.5			87.8			84.7			78.7			39.4			36.7
Mortality assessments		496.5			533.3			530.3			550.5			558.3			278.1			284.4
Expense assessments		1,013.1			880.1			792.7			782.3			949.3			456.4			524.7
Investment advisory fees		213.1			197.2			183.3			205.0			252.5			129.2			126.3
Amortization of deferred gain					20.4			75.2			72.3			87.0			35.8			37.9
Amortization of deferred gain-reserve development								(0.8	)		3.6			1.3			0.7			0.7
Other revenue and fees		441.1			328.7			299.5			309.7			364.4			174.4			167.2
Net investment income		2,784.1			2,708.7			2,631.9			2,638.5			2,704.1			1,360.6			1,363.4
Earnings in unconsolidated affiliates		(0.4	)		5.7			(0.6	)
Realized gains (losses) on investments		(28.3	)		(105.2	)		(272.7	)		(16.7	)		(45.7	)		(29.8	)		(9.4	)
Gains (losses) on derivatives					(9.3	)		1.2			(2.5	)		(11.6	)		(6.7	)		(1.9	)
Net gain (loss) on reinsurance
derivative/trading account securities											4.1			(1.0	)		6.1			(0.7	)
Gain on sale of subsidiaries/ businesses					12.8			(8.3	)					135.0			24.1			14.2
Mark-to-market adjustment on reclassification
from AFS to trading account securities											371.5
Total Revenue		6,847.1			6,378.0			4,635.5			5,283.9			5,371.3			2,617.7			2,686.4
Benefits and Expenses
Ins. benefits paid or provided:
Policy benefits		1,995.4			1,820.0			861.0			697.8			696.2			367.5			368.9
Div accum & div to policyholders		87.6			83.7			76.0			81.6			77.4			37.1			36.8
Interest credited to policy bal.		1,474.2			1,506.0			1,617.1			1,617.0			1,570.6			780.8			781.3
Reserve developments on reins. business sold								305.4			32.1			-			-			-
Def. sales inducements net of amortization					(12.1	)		(12.6	)		(14.1	)		(40.6	)		(18.8	)		(21.1	)
Total insurance benefits		3,557.2			3,397.7			2,846.9			2,414.4			2,303.7			1,166.6			1,165.9
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		1,172.9			1,045.2			836.1			904.6			1,133.1			556.7			594.5
Operating and administrative expenses		1,208.4			1,114.5			928.0			894.4			897.4			439.7			447.6
Restructuring charges		104.9			38.0			(2.2	)		53.8			21.4			16.8			25.1
Taxes, licenses and fees		107.5			122.9			106.8			107.4			103.6			56.7			56.6
Par policyholder interests		1.1
Foreign exchange		(2.9	)		(1.4	)		0.3									0.0			-
Subtotal		2,592.0			2,319.1			1,869.0			1,960.2			2,155.5			1,069.9			1,123.9
DAC deferral net of amortization		(427.5	)		(334.2	)		(268.0	)		(321.6	)		(354.1	)		(183.8	)		(163.0	)
PVIF amortization		132.6			113.1			136.5			80.2			120.3			45.3			35.4
Other intangibles amortization		17.7			12.1			8.2			7.9			9.7			3.9			3.9
Total underwriting, acquisition,
insurance and other expenses		2,314.9			2,110.1			1,745.8			1,726.8			1,931.5			935.5			1,000.2
Goodwill amortization		45.1			43.4
Interest		139.5			121.0			96.6			89.5			94.1			47.5			44.5
Loss on early retirement of debt											5.6			6.3
Total Benefits and Expenses		6,056.7			5,672.1			4,689.3			4,236.3			4,335.6			2,149.5			2,210.6
Income (Loss) Before Federal Income Tax and
Cumulative Effect of Accounting Change		790.5			705.9			(53.8	)		1,047.6			1,035.7			468.2			475.8
Federal income taxes		205.2			144.7			(102.6	)		280.4			304.1			126.2			99.0
Income Before Cumulative Effect of
Accounting Change		585.3			561.2			48.8			767.2			731.5			342.0			376.8
Cumulative effect of accounting change					(15.6	)					(255.2	)		(24.5	)		(24.5	)
Net Income	$	585.3		$	545.7		$	48.8		$	511.9		$	707.0		$	317.5		$	376.8
Roll Forward of Deferred Acquisition Costs
Balance at beginning of year				$	3,070.5		$	2,866.8		$	2,939.7		$	3,147.1		$	3,147.1		$	3,445.0
Deferral					701.0			612.4			639.6			844.8			400.5			417.1
Amortization					(366.8	)		(344.4	)		(318.0	)		(490.8	)		(216.8	)		(254.1	)
Included in Total Benefits and Expenses					334.2			268.0			321.6			354.1			183.8			163.0
Adjustment related to realized (gains) losses
on available-for-sale securities					112.9			115.0			(50.2	)		(45.7	)		(23.7	)		(26.0	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities					(187.2	)		(338.5	)		(126.1	)		(14.8	)		241.7			10.9
Foreign currency translation adjustment					(16.0	)		56.9			62.1			42.9			11.6			(38.3	)
Disposition of business					(425.9	)
Other					(21.7	)		(28.4	)					(38.7	)		(39.1	)		0.0
Balance at end of year				$	2,866.7		$	2,939.9		$	3,147.1		$	3,445.0		$	3,521.4		$	3,554.5
Roll Forward of Present Value of In-Force
Balance at beginning of year				$	1,483.3		$	1,362.5		$	1,250.1		$	1,196.5		$	1,196.5		$	1,095.2
Amortization					(113.1	)		(136.5	)		(80.2	)		(120.3	)		(45.3	)		(35.4	)
Foreign currency translation adjustment					(7.0	)		24.1			26.6			19.6			5.2			(18.1	)
Other					(0.7	)								(0.6	)		(0.6	)
Balance at end of year				$	1,362.5		$	1,250.1		$	1,196.5		$	1,095.2		$	1,155.8		$	1,041.7
Roll Forward of Deferred Front-End Load*
Balance at beginning of year				$	550.6		$	589.7		$	656.8		$	750.6		$	750.6		$	764.1
Deferral					107.5			102.5			102.5			104.6			50.7			44.6
Amortization					(57.8	)		(75.7	)		(54.4	)		(122.8	)		(45.1	)		(48.8	)
Included in Income from Operations					49.7			26.8			48.1			(18.2	)		5.6			(4.2	)
Foreign currency translation adjustment					(10.6	)		40.2			45.8			31.7			8.5			(28.5	)
Balance at end of year				$	589.7		$	656.8		$	750.6		$	764.1		$	764.7		$	731.4
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

6/30/2005																									PAGE 10
Consolidated Statements of Income
Unaudited [Millions of Dollars]
For the Quarter Ended	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2003			2003			2003			2004			2004			2004			2004			2005			2005
Revenue
Premiums	$	66.0		$	69.5		$	77.2		$	75.6		$	74.0		$	70.6		$	78.7		$	70.4		$	72.6
Surrender charges		21.3			21.5			23.0			20.2			19.2			18.2			21.1			20.1			16.6
Mortality assessments		135.6			137.9			138.1			137.9			140.1			139.8			140.4			142.3			142.1
Expense assessments		190.9			198.5			215.9			225.5			230.9			234.5			258.5			256.6			268.1
Investment advisory fees		49.4			53.2			58.3			62.7			66.4			67.4			56.0			59.4			66.9
Amortization of deferred gain		18.2			18.3			17.4			17.9			17.9			32.1			19.1			18.9			18.9
Amortization of deferred gain-reserve development		(0.2	)		3.7			0.3			0.3			0.3			0.3			0.3			0.3			0.3
Other revenue and fees		74.5			82.9			81.7			61.4			112.9			96.6			93.4			74.0			93.2
Net investment income		660.2			664.4			659.2			677.5			683.1			669.4			674.1			659.8			703.6
Realized gains (losses) on investments		(1.7	)		9.8			64.8			(12.0	)		(17.8	)		(23.0	)		7.2			(8.7	)		(0.6	)
Gains (losses) on derivatives		(1.0	)		9.1			(8.8	)		(3.8	)		(2.8	)		(4.5	)		(0.4	)		1.5			(3.4	)
Gain (loss) on reinsurance
derivative/trading account securities								4.1			(4.2	)		10.3			(5.6	)		(1.4	)		4.4			(5.1	)
Gain (loss) on sale of subsidiaries/ businesses														24.1			110.3			0.6			14.2
Mark-to-market adjustment on reclassification
from AFS to trading account securities								371.5
Total Revenue		1,213.2			1,268.8			1,702.6			1,259.0			1,358.7			1,406.1			1,347.5			1,313.2			1,373.2
Benefits and Expenses
Ins. benefits paid or provided:
Policy benefits		169.3			185.6			153.6			183.5			184.1			157.3			171.4			174.1			194.8
Div accum & div to policyholders		17.6			15.9			33.8			18.5			18.6			16.7			23.6			18.4			18.4
Interest credited to policy bal.		406.3			405.6			395.7			390.4			390.4			392.5			397.4			389.5			391.8
Reserve developments on reins. business sold					32.1
Def. sales inducements net of amortization		(2.4	)		(2.8	)		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)		(9.4	)		(11.7	)
Total insurance benefits		590.8			636.4			577.5			583.3			583.3			556.1			580.9			572.6			593.3
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		198.3			234.6			274.4			278.9			277.7			245.1			331.3			283.6			310.9
Operating and administrative expenses		235.5			209.8			231.4			187.4			252.3			264.6			193.1			212.4			235.2
Restructuring charges		13.5			19.8			15.0			11.5			5.3			4.5			0.1			1.9			23.2
Taxes, licenses and fees		23.1			26.4			27.3			29.5			27.2			25.6			21.3			32.3			24.3
Subtotal		470.3			490.6			548.1			507.4			562.6			539.8			545.8			530.2			593.7
DAC deferral net of amortization		(74.2	)		(95.0	)		(107.3	)		(89.9	)		(93.9	)		(85.4	)		(84.9	)		(70.7	)		(92.3	)
PVIF amortization		13.6			29.6			14.4			24.8			20.5			50.8			24.2			18.9			16.5
Other intangibles amortization		2.0			2.0			2.0			2.0			2.0			2.0			3.8			1.9			1.9
Total underwriting, acquisition,
insurance and other expenses		411.7			427.1			457.1			444.3			491.2			507.1			488.9			480.4			519.8
Interest		23.0			21.0			22.2			22.8			24.7			24.4			22.2			22.4			22.1
Loss on early retirement of debt					5.6															6.3
Total Benefits and Expenses		1,025.5			1,090.2			1,056.8			1,050.4			1,099.1			1,087.7			1,098.4			1,075.4			1,135.2
Income Before Federal Income Tax and
Cumulative Effect of Accounting Change		187.7			178.7			645.7			208.6			259.6			318.4			249.1			237.8			238.0
Federal income taxes		45.0			45.4			196.2			53.7			72.6			118.7			59.2			58.9			40.1
Income Before Cumulative Effect of
Accounting Change		142.7			133.3			449.6			155.0			187.0			199.7			189.9			178.9			197.9
Cumulative effect of accounting change								(255.2	)		(24.5	)														-
Net Income	$	142.7		$	133.3		$	194.3		$	130.5		$	187.0		$	199.7		$	189.9		$	178.9		$	197.9
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period	$	2,884.5		$	2,660.3		$	2,879.7		$	3,147.1		$	2,999.0		$	3,521.4		$	3,326.8		$	3,445.0		$	3,712.7
Deferral		136.9			160.9			197.4			198.7			201.8			206.2			238.1			203.5			213.6
Amortization		(62.8	)		(65.9	)		(90.1	)		(108.8	)		(108.0	)		(120.8	)		(153.2	)		(132.8	)		(121.3	)
Included in Total Benefits and Expenses		74.2			95.0			107.3			89.9			93.9			85.4			84.9			70.7			92.3
Adjustment related to realized (gains) losses
on available-for-sale securities		8.3			(60.6	)		(27.9	)		(17.6	)		(6.0	)		(6.2	)		(15.8	)		(11.7	)		(14.3	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(334.0	)		182.2			145.2			(201.1	)		442.7			(271.2	)		14.7			215.7			(204.8	)
Foreign currency translation adjustment		27.2			2.8			42.8			19.9			(8.4	)		(2.5	)		33.8			(7.0	)		(31.4	)
Other					0.1						(39.2	)		0.2			(0.2	)		0.5
Balance at end of period	$	2,660.3		$	2,879.7		$	3,147.1		$	2,999.0		$	3,521.4		$	3,326.8		$	3,445.0		$	3,712.7		$	3,554.5
Roll Forward of Present Value of In-Force
Balance at beginning of period	$	1,223.1		$	1,220.8		$	1,192.5		$	1,196.5		$	1,180.0		$	1,155.8		$	1,103.9		$	1,095.2		$	1,073.1
Amortization		(13.6	)		(29.6	)		(14.4	)		(24.8	)		(20.5	)		(50.8	)		(24.2	)		(18.9	)		(16.5	)
Foreign currency translation adjustment		11.2			1.3			18.4			8.9			(3.7	)		(1.1	)		15.6			(3.3	)		(14.8	)
Other											(0.6	)
Balance at end of period	$	1,220.8		$	1,192.5		$	1,196.5		$	1,180.0		$	1,155.8		$	1,103.9		$	1,095.2		$	1,073.1		$	1,041.7
Roll Forward of Deferred Front-End Load*
Balance at beginning of period	$	647.9		$	687.0		$	717.9		$	750.6		$	768.5		$	764.7		$	744.4		$	764.1		$	756.2
Deferral		27.7			25.4			25.8			25.0			25.8			25.2			28.6			22.6			22.0
Amortization		(8.3	)		3.3			(24.6	)		(21.8	)		(23.3	)		(43.7	)		(34.0	)		(25.2	)		(23.6	)
Included in Income from Operations		19.4			28.7			1.2			3.1			2.4			(18.5	)		(5.3	)		(2.7	)		(1.5	)
Foreign currency translation adjustment		19.7			2.2			31.5			14.7			(6.2	)		(1.8	)		25.0			(5.2	)		(23.3	)
Balance at end of period	$	687.0		$	717.9		$	750.6		$	768.5		$	764.7		$	744.4		$	764.1		$	756.2		$	731.4
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

6/30/2005																					PAGE 11
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
													Investment
For the Quarter Ended June 30	Lincoln Retirement						Life Insurance						Management						Lincoln UK
	Jun			Jun			Jun			Jun			Jun			Jun			Jun		Jun
	2005			2004			2005			2004			2005			2004			2005		2004
Operating Revenue
Premiums	$	7.8		$	7.4		$	47.9		$	48.3								$	16.4	$	19.6
Surrender charges		6.9			6.0			9.1			12.7			0.5			0.5
Mortality assessments								132.7			129.6									9.4		10.4
Expense assessments		173.1			140.9			50.2			51.0			16.8			14.7			27.9		24.4
Investment advisory fees														91.5			92.5
Other revenue and fees		(1.6	)		(2.1	)		8.2			8.2			14.9			16.7			5.2		8.3
Net investment income		386.8			382.3			249.2			234.9			14.2			14.6			19.6		18.3
Total Operating Revenue		573.0			534.4			497.3			484.8			138.0			139.0			78.4		81.0
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		61.5			52.0			105.0			104.4									27.9		28.8
Div accum & div to policyholders								18.4			18.6
Interest credited to policy bal.		206.4			208.0			145.2			143.9			7.0			6.7
Def. sales inducements net of amortization		(11.7	)		(9.8	)
Total insurance benefits		256.2			250.2			268.6			266.9			7.0			6.7			27.9		28.8
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		153.4			146.9			83.5			73.0			11.8			14.4			0.7		0.6
Operating and administrative expenses		64.2			58.1			42.2			40.7			111.5			98.5			23.8		22.3
Taxes, licenses and fees		2.4			3.7			12.5			11.5			3.6			5.5
Subtotal		220.0			208.7			138.2			125.2			126.8			118.4			24.5		22.9
Net DAC (deferral) amortization		(64.1	)		(61.2	)		(34.0	)		(37.3	)		(2.7	)		(8.1	)		8.4		12.6
PVIF amortization		2.4			2.9			12.5			17.5									1.7		0.1
Other intangibles amortization														1.9			2.0
Total underwriting, acquisition,
insurance and other expenses		158.3			150.4			116.7			105.4			126.0			112.3			34.7		35.7
Total Operating Expenses		414.4			400.6			385.3			372.4			133.0			118.9			62.6		64.5
Income from Operations before federal taxes		158.6			133.8			112.0			112.4			5.0			20.1			15.9		16.5
Federal income taxes		39.2			32.1			36.2			36.2			1.2			6.7			5.6		5.8
Income from Operations	$	119.4		$	101.8		$	75.8		$	76.2		$	3.9		$	13.4		$	10.3	$	10.7

6/30/2005																PAGE 11A
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
	Corporate and						Consolidating
For the Quarter Ended June 30	Other Operations						Adjustments						Consolidated *
	Jun			Jun			Jun			Jun			Jun			Jun
	2005			2004			2005			2004			2005			2004
Operating Revenue
Premiums	$	0.5			($1.3	)							$	72.6		$	74.0
Surrender charges														16.6			19.2
Mortality assessments					0.1									142.1			140.1
Expense assessments					(0.1	)								268.1			230.9
Investment advisory fees								(24.6	)		(26.1	)		66.9			66.4
Amortization of deferred gain		18.9			17.9									18.9			17.9
Other revenue and fees		193.8			154.9			(127.3	)		(73.1	)		93.2			112.9
Net investment income		34.9			33.4			(1.0	)		(0.3	)		703.6			683.1
Total Operating Revenue		248.1			204.9			(152.9	)		(99.4	)		1,382.0			1,344.7
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		0.5			(1.2	)								194.8			184.1
Div accum & div to policyholders														18.4			18.6
Interest credited to policy bal.		33.2			31.8									391.8			390.4
Def. sales inducements net of amortization														(11.7	)		(9.8	)
Total insurance benefits		33.6			30.7									593.3			583.3
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		117.8			82.5			(56.2	)		(39.8	)		310.9			277.7
Operating and administrative expenses		89.7			92.0			(95.9	)		(59.3	)		235.5			252.3
Taxes, licenses and fees		5.8			6.6									24.3			27.2
Subtotal		213.3			181.1			(152.1	)		(99.1	)		570.7			557.2
Net DAC (deferral) amortization		0.1			0.1									(92.3	)		(93.9	)
PVIF amortization														16.5			20.5
Other intangibles amortization														1.9			2.0
Total underwriting, acquisition,
insurance and other expenses		213.4			181.2			(152.1	)		(99.1	)		496.9			485.9
Interest		22.6			25.0			(0.8	)		(0.3	)		21.9			24.7
Foreign exchange adjustment					0.0												0.0
Total Operating Expenses		269.6			236.9			(152.9	)		(99.4	)		1,112.0			1,093.8
Income from Operations before federal taxes		(21.5	)		(32.0	)								270.0			250.8
Federal income taxes		(30.7	)		(11.3	)								51.3			69.5
Income from Operations	$	9.2			($20.7	)							$	218.6		$	181.4
* See page 1 for a reconciliation of Income from Operations to consolidated Net Income

6/30/2005																					PAGE 12
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
													Investment
For the Six Months Ended June 30	Lincoln Retirement						Life Insurance						Management						Lincoln UK
	Jun			Jun			Jun			Jun			Jun			Jun			Jun		Jun
	2005			2004			2005			2004			2005			2004			2005		2004
Operating Revenue
Premiums	$	18.3		$	13.9		$	93.5		$	96.2			-			-		$	31.0	$	37.7
Surrender charges		14.3			11.9			21.2			26.5			1.2			1.0
Mortality assessments								266.0			258.1									18.4		20.0
Expense assessments		337.7			278.2			99.0			100.8			33.4			28.8			54.5		48.6
Investment advisory fees														175.7			181.8
Other revenue and fees		(3.0	)		(3.0	)		16.4			16.0			31.0			35.8			9.3		14.1
Net investment income		744.2			761.4			485.4			470.5			27.0			26.8			39.9		36.7
Total Operating Revenue		1,111.6			1,062.4			981.5			968.1			268.3			274.2			153.1		157.1
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		113.9			106.0			202.4			201.8									53.0		57.8
Div accum & div to policyholders								36.8			37.1
Interest credited to policy bal.		411.1			415.8			291.1			288.8			13.8			13.2
Def. sales inducements net of amortization		(21.1	)		(18.8	)
Total insurance benefits		504.0			503.0			530.2			527.7			13.8			13.2			53.0		57.8
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		303.1			288.6			160.7			151.0			25.1			28.4			1.3		1.2
Operating and administrative expenses		121.0			109.8			82.8			79.2			207.9			194.7			49.2		45.3
Taxes, licenses and fees		6.3			8.9			27.2			23.9			7.9			9.4
Subtotal		430.4			407.4			270.8			254.1			241.0			232.5			50.5		46.5
Net DAC (deferral) amortization		(113.5	)		(121.6	)		(59.2	)		(72.3	)		(6.0	)		(13.7	)		15.5		23.7
PVIF amortization		4.7			6.2			28.0			36.0									2.7		3.1
Other intangibles amortization														3.9			3.9
Total underwriting, acquisition,
insurance and other expenses		321.6			292.0			239.6			217.8			238.8			222.7			68.7		73.3
Total Operating Expenses		825.6			795.0			769.8			745.5			252.6			236.0			121.7		131.1
Income from Operations before federal taxes		286.0			267.4			211.7			222.7			15.7			38.2			31.3		26.0
Federal income taxes		67.9			63.5			68.1			71.8			4.5			12.3			11.0		9.1
Income from Operations	$	218.1		$	204.0		$	143.6		$	150.9		$	11.2		$	25.9		$	20.4	$	16.9

6/30/2005																PAGE 12A
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
	Corporate and						Consolidating
For the Six Months Ended June 30	Other Operations						Adjustments						Consolidated *
	Jun			Jun			Jun			Jun			Jun			Jun
	2005			2004			2005			2004			2005			2004
Operating Revenue
Premiums	$	0.2		$	1.8			-			-		$	143.0		$	149.6
Surrender charges														36.7			39.4
Mortality assessments					0.0									284.4			278.1
Expense assessments					0.0									524.7			456.4
Investment advisory fees								(49.4	)		(52.6	)		126.3			129.2
Amortization of deferred gain		37.9			35.8									37.9			35.8
Other revenue and fees		385.1			305.0			(271.5	)		(193.6	)		167.2			174.4
Net investment income		68.8			66.0			(2.0	)		(0.8	)		1,363.4			1,360.6
Total Operating Revenue		491.9			408.6			(322.9	)		(247.0	)		2,683.5			2,623.5
Operating Expenses
Ins. benefits paid or provided:
Policy benefits		(0.3	)		1.9									368.9			367.5
Div accum & div to policyholders														36.8			37.1
Interest credited to policy bal.		65.3			63.0									781.3			780.8
Def. sales inducements net of amortization														(21.1	)		(18.8	)
Total insurance benefits		65.0			64.9									1,165.9			1,166.6
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume related expenses		239.4			161.7			(135.1	)		(74.3	)		594.5			556.7
Operating and administrative expenses		173.4			182.6			(186.2	)		(171.9	)		448.1			439.7
Taxes, licenses and fees		15.1			14.5									56.6			56.7
Subtotal		428.0			358.8			(321.4	)		(246.2	)		1,099.2			1,053.1
Net DAC (deferral) amortization		0.2			0.2									(163.0	)		(183.8	)
PVIF amortization														35.4			45.3
Other intangibles amortization														3.9			3.9
Total underwriting, acquisition,
insurance and other expenses		428.2			359.0			(321.4	)		(246.2	)		975.5			918.6
Interest		45.5			48.2			(1.5	)		(0.8	)		44.0			47.5
Foreign Exchange					0.0												0.0
Total Operating Expenses		538.7			472.2			(322.9	)		(247.0	)		2,185.5			2,132.7
Income from Operations before federal taxes		(46.8	)		(63.6	)		(0.0	)		(0.00	)		498.0			490.7
Federal income taxes		(44.7	)		(22.6	)		-			-			106.9			134.1
Income from Operations		($2.1	)		($41.0	)		(0.0	)		(0.0	)	$	391.1		$	356.7
* See page 1 for a reconciliation of Income from Operations to consolidated Net Income

6/30/2005												PAGE 13
Five Year Comparative Balance Sheet
Unaudited [Millions of Dollars except Common Share Data]
	As of December 31,
ASSETS	2000		2001			2002			2003			2004
Investments
Corporate bonds	$	21,249.7	$	23,105.1		$	25,934.7		$	25,868.5		$	26,889.0
U.S. government bonds		542.9		410.5			513.6			225.8			163.0
Foreign government bonds		1,321.1		1,174.7			1,110.2			1,194.6			1,285.9
Mortgage backed securities		4,160.4		3,524.7			5,015.5			5,195.6			6,090.5
State and municipal bonds		14.6		44.7			114.4			152.8			166.0
Preferred stocks-redeemable		161.2		85.9			79.0			132.2			106.1
Common stocks		436.6		319.3			228.0			98.4			69.8
Preferred stocks-equity		113.1		151.2			109.2			100.7			91.3
Total AFS Securities		27,999.5		28,816.1			33,104.7			32,968.6			34,861.7
Trading securities										3,120.1			3,237.4
Mortgage loans		4,663.0		4,535.5			4,205.5			4,195.0			3,856.9
Real estate		282.0		267.9			279.7			112.9			191.4
Policy loans		1,960.9		1,939.7			1,945.6			1,924.4			1,870.6
Other long-term investments		463.3		553.8			464.4			456.7			489.3
Total Investments		35,368.6		36,113.1			39,999.9			42,777.6			44,507.3
Invest in unconsol affiliates		6.4		8.1
Cash and invested cash		1,927.4		3,095.5			1,690.5			1,711.2			1,661.7
Property and equipment		228.2		257.5			242.1			235.2			207.1
Premiums and fees receivable		296.7		400.1			212.9			352.1			232.9
Accrued investment income		546.4		563.5			536.7			522.7			525.1
Assets held in separate accounts		50,579.9		44,833.4			36,178.3			46,565.2			55,204.6
Federal income taxes recoverable		234.1		55.5			317.7			45.9			-
Amounts recoverable from reinsurers		3,747.7		6,030.4			7,280.0			7,839.2			7,067.5
Deferred acquisition costs		3,070.5		2,866.8			2,939.7			3,147.1			3,445.0
Other intangible assets		73.7		68.6			73.0			79.1			106.4
Present value of in-force		1,483.3		1,362.5			1,250.1			1,196.5			1,095.2
Goodwill		1,286.0		1,211.8			1,233.2			1,234.7			1,195.9
Other		1,021.6		1,174.9			1,230.3			1,038.3			970.5
Total Assets	$	99,870.6	$	98,041.6		$	93,184.6		$	106,744.9		$	116,219.3
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Insurance and Investment Contract Liabilities:
Reserves	$	20,365.0	$	20,454.9		$	22,639.3		$	23,549.8		$	23,242.1
Unpaid claims		1,316.6		1,087.5			778.4			1,058.4			1,080.3
Unearned premiums		46.5		66.9			141.2			104.5			5.8
Premium deposit funds		17,715.5		18,585.0			20,518.8			21,769.3			22,215.1
Participating policyholders' funds		139.4		100.2			156.7			155.1			145.3
Other policyholders' funds		522.2		562.7			610.9			680.9			714.0
Liability related to separate accounts		50,579.9		44,833.4			36,178.3			46,565.2			55,204.6
Total Ins and Inv Contr Liabilities		90,685.1		85,690.6			81,023.6			93,883.2			102,607.1
Federal income tax liabilities													77.6
Short-term debt		312.9		350.2			153.0			44.0			214.4
Long-term debt		712.2		861.8			1,119.2			1,117.5			1,048.6
Junior subordinated debentures issued to affiliated trusts		745.0		474.7			392.7			341.3			339.8
Embedded derivative - modco										352.3			375.3
Other liabilities		2,434.7		4,216.1			4,171.5			4,270.1			4,467.8
Deferred gain on indemnity reinsurance				1,144.5			977.1			924.8			913.0
Total Liabilities		94,890.0		92,737.8			87,837.2			100,933.2			110,043.7
Unrealized gains		12.0		217.2			781.6			815.1			836.9
Foreign currency		22.0		(8.0	)		50.8			109.0			154.3
Minimum pension liability adjustment				(36.0	)		(97.8	)		(55.1	)		(60.5	)
Shareholders' equity- other		4,946.6		5,130.6			4,612.9			4,942.6			5,244.9
Total Shareholders' Equity		4,980.6		5,303.8			5,347.5			5,811.6			6,175.6
Total Liabilities
and Shareholders' Equity	$	99,870.6	$	98,041.6		$	93,184.6		$	106,744.9		$	116,219.3
Shareholders' Equity Per Share
Book Value, Excluding AOCI	$	25.88	$	27.39		$	25.97		$	27.69		$	30.17
Common shares outstanding (in millions)		191.2		187.3			177.6			178.5			173.8

6/30/2005																									PAGE 14
Quarterly Balance Sheet
Unaudited [Millions of Dollars, except Common Share Data]
	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2003			2003			2003			2004			2004			2004			2004			2005			2005
ASSETS
Investments
Corporate bonds	$	28,419.3		$	28,286.3		$	25,868.5		$	26,209.2		$	25,638.1		$	26,750.0		$	26,889.0		$	26,305.9		$	26,757.7
U.S. government bonds		561.9			522.5			225.8			234.2			156.3			162.9			163.0			165.7			174.4
Foreign government bonds		1,349.4			1,352.9			1,194.6			1,321.0			1,223.8			1,233.8			1,285.9			1,296.7			1,248.0
Mortgage backed securities		4,754.9			4,992.7			5,195.6			5,617.0			5,524.1			5,793.4			6,090.5			6,193.8			6,503.0
State and municipal bonds		150.4			164.0			152.8			164.1			164.8			168.8			166.0			156.3			160.8
Preferred stocks - redeemable		118.5			65.6			132.2			120.9			100.7			113.9			106.1			106.5			131.2
Common stocks		146.6			131.8			98.4			97.4			92.3			86.5			69.8			65.2			64.2
Preferred stocks-equity		110.7			111.2			100.7			100.2			90.5			91.6			91.3			89.6			90.3
Total AFS Securities		35,611.8			35,626.9			32,968.6			33,864.1			32,990.5			34,400.8			34,861.7			34,379.6			35,129.6
Trading securities								3120.1			3191.3			3,087.9			3,223.6			3,237.4			3,206.5			3,345.1
Mortgage loans		4,314.3			4,151.5			4,195.0			3,988.5			3,865.4			3,831.3			3,856.9			3,805.7			3,750.6
Real estate		240.3			249.8			112.9			104.8			104.3			135.1			191.4			213.4			209.8
Policy loans		1,919.6			1,910.5			1,924.4			1,876.7			1,871.3			1,871.9			1,870.6			1,860.5			1,866.9
Other long-term investments		505.6			484.7			456.7			476.3			442.9			463.8			489.3			516.5			561.3
Total Investments		42,591.6			42,423.3			42,777.6			43,501.7			42,362.5			43,926.6			44,507.3			43,982.2			44,863.3
Cash and invested cash		1,945.8			1,960.6			1,711.2			2,255.5			2,213.7			1,996.0			1,661.7			1,499.1			1,658.9
Property and equipment		239.1			237.3			235.2			229.5			225.5			217.7			207.1			203.9			187.9
Premiums and fees receivable		396.0			306.5			352.1			337.5			265.2			248.8			232.9			299.3			222.8
Accrued investment income		555.1			560.2			522.7			547.9			543.7			573.2			525.1			557.6			537.5
Assets held in separate accounts		39,942.8			41,283.4			46,565.2			48,557.9			49,343.7			49,657.9			55,204.6			55,387.2			57,240.0
Federal income taxes recoverable		-			-			45.9						204.0									5.0
Amount recoverable from reinsurers		7,377.1			7,537.9			7,839.2			7,865.7			7,138.7			7,031.9			7,067.5			7,336.5			7,241.6
Deferred acquisition costs		2,660.3			2,879.7			3,147.1			2,999.0			3,521.4			3,326.8			3,445.0			3,712.7			3,554.5
Other intangible assets		74.7			75.5			79.1			85.8			93.6			98.7			106.4			113.8			124.4
Present value of in-force		1,220.8			1,192.5			1,196.5			1,180.0			1,155.8			1,103.9			1,095.2			1,073.1			1,041.7
Goodwill		1,233.6			1,233.7			1,234.7			1,235.2			1,235.0			1,195.0			1,195.9			1,195.7			1,194.8
Other		1,295.9			1,134.9			1,038.3			1,074.2			1,015.1			1,000.7			970.5			986.1			1,086.0
Total Assets	$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2		$	118,953.4
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Reserves	$	22,897.8		$	23,117.1		$	23,549.8		$	23,704.6		$	23,165.1		$	23,010.1		$	23,242.1		$	23,498.2		$	23,555.6
Unpaid claims		997.1			1,041.2			1,058.4			1,076.8			1,083.5			1,067.0			1,080.3			1,164.9			1,114.2
Unearned premiums		24.0			26.9			104.5			104.3			9.3			7.5			5.8			3.1			1.9
Premium deposit funds		21,437.7			21,680.2			21,769.3			21,827.4			22,017.0			22,218.9			22,215.1			22,026.0			22,075.8
Participating policyholders' funds		193.8			179.2			155.1			171.1			165.9			165.2			145.3			128.1			146.3
Other policyholders' funds		621.8			671.5			680.9			688.1			698.5			703.4			714.0			716.1			717.6
Liab related to separate accounts		39,942.8			41,283.4			46,565.2			48,557.9			49,343.7			49,657.9			55,204.6			55,387.2			57,240.0
Total Ins and Inv Contr Liabilities		86,115.0			87,999.6			93,883.2			96,130.3			96,483.1			96,830.1			102,607.1			102,923.6			104,851.5
Federal income taxes		72.0			37.1						108.1						83.8			77.6						160.8
Short-term debt		83.4			76.5			44.0			38.0			30.0			0.0			214.4			194.0			222.5
Long-term debt		1,121.4			1,118.5			1,117.5			1,317.7			1,313.7			1,315.4			1,048.6			1,046.6			1,000.6
Junior subordinated debentures issued to
affiliated trusts		397.1			333.6			341.3			344.7			337.6			341.1			339.8			336.6			338.7
Embedded derivative - modco								352.3			440.6			252.6			365.5			375.3			313.5			420.3
Other liabilities		4,989.0			4,724.8			4,270.1			4,440.4			4,493.6			4,537.9			4,467.8			4,601.3			4,721.1
Deferred gain on indemnity reinsurance		938.9			949.0			924.8			906.6			888.4			932.4			913.0			893.7			874.5
Total Liabilities		93,716.9			95,239.1			100,933.2			103,726.4			103,799.0			104,406.3			110,043.7			110,309.3			112,590.0
Unrealized gains on investments		1,117.8			804.5			793.1			1,038.0			412.0			780.1			822.9			582.9			851.2
Gains - derivatives		28.8			23.2			22.1			29.0			18.5			19.8			14.0			7.7			11.9
Foreign currency		68.4			67.0			109.0			128.9			120.8			116.9			154.3			146.5			109.4
Minimum pension liability		(98.8	)		(99.0	)		(55.1	)		(56.6	)		(56.0	)		(55.8	)		(60.5	)		(60.0	)		(57.3	)
Shareholders' equity- other		4,699.8			4,790.6			4,942.6			5,004.2			5,023.6			5,109.8			5,244.9			5,365.8			5,448.3
Total Shareholders' Equity		5,815.9			5,586.4			5,811.6			6,143.5			5,518.9			5,970.8			6,175.6			6,042.9			6,363.5
Total Liabilities
and Shareholders' Equity	$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2		$	118,953.4
Shareholders' Equity Per Share
Book Value, Excluding AOCI	$	26.41		$	26.87		$	27.69		$	27.99		$	28.51		$	29.23		$	30.17		$	30.85		$	31.56
Common shares outstanding (in millions)		178.0			178.3			178.5			178.8			176.2			174.8			173.8			173.9			172.6

6/30/2005																		PAGE 15
Consolidating Balance Sheets
Unaudited [Millions of Dollars]
												Investment
	Lincoln Retirement						Life Insurance					Management				Lincoln UK
ASSETS	Jun			Dec			Jun			Dec		Jun		Dec		Jun		Dec
	2005			2004			2005			2004		2005		2004		2005		2004
Investments
Corporate bonds	$	13,418.3		$	13,504.1		$	9,228.4		$	8,887.9	$	540.5	$	533.3	$	680.0	$	739.2
U.S. government bonds		11.6			11.9			69.1			63.8
Foreign government bonds		302.5			304.5			180.1			184.7		6.9		6.8		318.5		337.6
Asset/mortgage backed securities		3,551.0			3,332.3			1,969.3			1,739.5		100.9		99.6
State and municipal bonds		90.9			95.3			51.4			52.4		1.2		1.2
Preferred stocks-redeemable		62.9			37.6			29.7			25.7
Common stocks		-			0.2						0.2						44.0		46.4
Preferred stocks-equity		42.6			43.1			14.5			14.8		2.7		2.7
Total AFS Securities		17,479.9			17,329.1			11,542.4			10,968.9		652.3		643.7		1,042.4		1,123.3
Trading Securities		1,174.9			1,169.6
Mortgage loans		1,832.4			1,936.3			1,563.6			1,554.2		55.9		62.6		0.1		0.1
Real estate					-												0.2		0.2
Policy loans		431.4			438.7			1,430.1			1,426.0						5.5		5.9
Allocated investments		3,526.8			3,891.1			1,359.5			1,442.7		145.9		139.9
Other long-term investments		121.8			61.8			6.3			9.1
Total Investments		24,567.2			24,826.6			15,901.8			15,400.9		854.0		846.3		1,048.1		1,129.5
Notes receivable from LNC		219.1			107.8			38.2			130.7		1.7		44.4
Cash and invested cash		(84.7	)		(73.9	)		(26.5	)		18.0		43.2		51.1		327.0		282.9
Property and equipment		11.5			10.8			0.6			1.6		31.6		33.3		18.2		20.1
Premium and fees receivable		(0.1	)		0.2			16.6			25.8		50.2		45.4
Accrued investment income		249.1			243.3			185.4			173.8		8.6		8.6		23.9		22.1
Assets held in separate accounts		42,976.0			40,990.1			2,231.5			2,131.1		5,129.5		4,897.2		6,902.9		7,186.2
Amount recoverable from reinsurers		983.7			1,030.7			1,203.9			1,183.4						64.0
Deferred acquisition costs		1,174.8			1,040.4			1,714.8			1,691.9		126.7		120.4		537.0		590.9
Other intangible assets		106.6			85.5								17.8		20.9
Present value of in-force		87.9			92.6			698.5			726.5						255.3		276.1
Goodwill		64.1			64.1			855.1			855.1		260.8		260.8		14.9		15.9
Other		216.1			134.4			456.7			466.4		97.8		63.1		34.7		60.2
Total Assets	$	70,571.3		$	68,552.7		$	23,276.7		$	22,805.0	$	6,622.0	$	6,391.5	$	9,226.0	$	9,583.9

	Corporate and						Consolidating
	Other Operations						Adjustments						Consolidated
ASSETS	Jun			Dec			Jun			Dec			Jun		Dec
	2005			2004			2005			2004			2005		2004
Investments
Corporate bonds	$	2,890.5		$	3,224.5								$	26,757.7	$	26,889.0
U.S. government bonds		93.7			87.4									174.4		163.0
Foreign government bonds		440.0			452.3									1,248.0		1,285.9
Asset/mortgage backed securities		881.8			919.0									6,503.0		6,090.5
State and municipal bonds		17.4			17.1									160.8		166.0
Preferred stocks-redeemable		38.5			42.8									131.2		106.1
Common stocks		20.2			22.9									64.2		69.8
Preferred stocks-equity		30.5			30.7									90.3		91.3
Total AFS Securities		4,412.6			4,796.7									35,129.6		34,861.7
Trading securities		2,170.2			2,067.8									3,345.1		3,237.4
Mortgage loans		298.7			303.6									3,750.6		3,856.9
Real estate		209.6			191.1									209.8		191.4
Policy loans														1,866.9		1,870.6
Allocated investments		(5,032.1	)		(5,473.7	)
Other long-term investments		433.4			418.4									561.3		489.3
Total Investments		2,492.3			2,304.0									44,863.3		44,507.3
Investments In Consolidated Subs		5,727.4			5,545.6			(5,727.4	)		(5,545.6	)
Notes receivable from LNC		(185.6	)		(152.9	)		(73.4	)		(130.0	)
Cash and invested cash		1,399.8			1,383.6									1,658.9		1,661.7
Property and equipment		125.9			141.3									187.9		207.1
Premium and fees receivable		156.0			161.5									222.8		232.9
Accrued investment income		70.5			77.4									537.5		525.1
Assets held in separate accounts														57,240.0		55,204.6
Federal income tax recoverable
Amount recoverable from reinsurers		4,990.1			4,853.5									7,241.6		7,067.5
Deferred acquisition costs		1.2			1.4									3,554.5		3,445.0
Other intangible assets														124.4		106.4
Present value of in-force														1,041.7		1,095.2
Goodwill														1,194.8		1,195.9
Other		291.8			257.5			(11.0	)		(11.0	)		1,086.0		970.5
Total Assets	$	15,069.4		$	14,572.8			($5,811.9	)		($5,686.7	)	$	118,953.4	$	116,219.3

6/30/2005																PAGE 16
Consolidating Balance Sheets
Unaudited [Millions of Dollars]
	Lincoln Retirement				Life Insurance				Investment Management				Lincoln UK
LIABILITIES and SHAREHOLDERS' EQUITY	Jun		Dec		Jun		Dec		Jun		Dec		Jun			Dec
	2005		2004		2005		2004		2005		2004		2005			2004
Liabilities
Insurance and Inv Contract Liabilities:
Reserves	$	2,284.7	$	2,268.9	$	15,694.2	$	15,411.7					$	1,426.5		$	1,491.8
Unpaid claims		33.4		38.4		126.4		158.0						50.2			51.9
Unearned premiums
Premium deposit funds		21,190.1		21,336.8		18.0		17.1		729.8		716.0		25.3			29.7
Participating policyholders' funds						146.3		145.3
Other policyholders' funds						712.6		706.1
Liability related to separate accounts		42,976.0		40,990.1		2,231.5		2,131.1		5,129.5		4,897.2		6,902.9			7,186.2
Total Insurance and Inv Contract Liabilities		66,484.3		64,634.1		18,929.1		18,569.3		5,859.4		5,613.2		8,404.9			8,759.7
Federal income taxes		443.7		387.0		167.9		208.3		10.8		6.2		75.1			58.6
Notes payable to LNC		31.6		51.4
Embedded derivative - modco		74.6		80.5		3.8		2.5
Other liabilities		249.4		157.1		525.4		520.8		215.7		227.5		206.8			215.0
Total Liabilities		67,283.6		65,310.1		19,626.2		19,300.9		6,085.9		5,846.9		8,686.8			9,033.4
Net unrealized gains (losses) on securities		485.6		474.8		250.3		244.2		3.2		3.1		41.7			36.2
Net gains (losses) on derivatives		4.7		4.8		6.4		7.7
Foreign currency translation adjustment														91.6			136.4
Minimum pension liability adjustment										0.5				(45.4	)		(48.6	)
Other shareholders' equity		2,797.3		2,762.9		3,393.7		3,252.3		532.4		541.5		451.3			426.6
Shareholders' Equity		3,287.6		3,242.5		3,650.5		3,504.1		536.0		544.6		539.2			550.6
Total Liabilities and Shareholders' Equity	$	70,571.3	$	68,552.7	$	23,276.7	$	22,805.0	$	6,622.0	$	6,391.5	$	9,226.0		$	9,583.9

	Corporate and						Consolidating
	Other Operations						Adjustments						Consolidated
LIABILITIES and SHAREHOLDERS' EQUITY	Jun			Dec			Jun			Dec			Jun			Dec
	2005			2004			2005			2004			2005			2004
Liabilities
Insurance and Inv Contract Liabilities:
Reserves	$	4,150.2		$	4,069.7								$	23,555.6		$	23,242.1
Unpaid claims		904.2			832.0									1,114.2			1,080.3
Unearned premiums		1.9			5.7									1.9			5.8
Premium deposit funds		112.4			115.6									22,075.8			22,215.1
Participating policyholders' funds														146.3			145.3
Other policyholders' funds		5.0			7.9									717.6			714.0
Liability related to separate accounts														57,240.0			55,204.6
Total Insurance and Inv Contract Liabilities		5,173.7			5,030.9									104,851.5			102,607.1
Federal income taxes		(537.1	)		(583.3	)		0.4			0.8			160.8			77.6
Short-term debt		222.5			214.4									222.5			214.4
Long-term debt		1,000.6			1,048.6									1,000.6			1,048.6
Junior subordinated debentures issued to affiliated trusts		338.7			339.8									338.7			339.8
Notes payable to LNC		41.8			78.6			(73.4	)		(130.0	)
Embedded derivative - modco		341.9			292.3									420.3			375.3
Other liabilities		3,534.7			3,358.4			(11.0	)		(11.0	)		4,721.1			4,467.8
Deferred gain on indemnity reinsurance		874.5			913.0									874.5			913.0
Total Liabilities		10,991.4			10,692.7			(84.0	)		(140.3	)		112,590.0			110,043.7
Net unrealized gains (losses) on securities		71.1			64.4			(0.7	)					851.2			822.9
Gains (losses) on derivatives		0.8			1.6									11.9			14.0
Foreign currency translation adjustment		10.3			10.4			7.5			7.5			109.4			154.3
Minimum pension liability adjustment		(12.3	)		(11.9	)								(57.3	)		(60.5	)
Other shareholders' equity		4,008.3			3,815.5			(5,734.6	)		(5,553.9	)		5,448.3			5,244.9
Shareholders' Equity		4,078.1			3,880.1			(5,727.8	)		(5,546.4	)		6,363.5			6,175.6
Total Liabilities and Shareholders' Equity	$	15,069.4		$	14,572.8			($5,811.9	)		($5,686.7	)	$	118,953.4		$	116,219.3

6/30/2005																			PAGE 17
Lincoln Retirement
Income Statements & Operational Data
Unaudited [Millions of Dollars]
																YTD			YTD
																Jun			Jun
For the Year Ended December 31	2000			2001			2002			2003			2004			2004			2005
Operating Revenue
Premiums	$	64.3		$	77.5		$	47.4		$	21.9		$	33.0		$	13.9		$	18.3
Surrender charges		41.8			31.2			31.2			28.9			25.0			11.9			14.3
Expense assessments		591.3			508.6			446.2			441.9			580.5			278.2			337.7
Other revenue and fees		11.0			16.7			3.3			8.7			(6.3	)		(3.0	)		(3.0	)
Net investment income		1,430.5			1,399.1			1,457.5			1,483.7			1,495.9			761.4			744.2
Total Operating Revenue		2,138.9			2,033.1			1,985.5			1,985.1			2,128.0			1,062.4			1,111.6
Operating Expenses
Benefits paid or provided:
Benefits		254.7			263.9			314.1			181.5			189.9			106.0			113.9
Interest credited to policy bal.		866.1			863.8			903.8			867.7			836.0			415.8			411.1
Def. sales inducements net of amortization					(12.1	)		(12.6	)		(14.1	)		(40.6	)		(18.8	)		(21.1	)
Total insurance benefits		1,120.8			1,115.7			1,205.3			1,035.1			985.2			503.0			504.0
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		378.9			386.0			385.4			386.0			586.7			288.6			303.1
Operating and administrative expenses		206.6			231.8			231.3			226.2			231.8			109.8			121.0
Taxes, licenses and fees		9.3			13.7			11.5			17.7			14.6			8.9			6.3
Subtotal		594.8			631.6			628.2			630.0			833.1			407.4			430.4
DAC deferral net of amortization		(37.5	)		(103.4	)		(73.6	)		(103.0	)		(247.9	)		(121.6	)		(113.5	)
PVIF amortization		24.2			14.7			31.8			9.5			20.0			6.2			4.7
Total underwriting, acquisition,
insurance and other expenses		581.5			542.9			586.3			536.5			605.2			292.0			321.6
Goodwill amortization		(0.6	)		1.2
Total Operating Expenses		1,701.7			1,659.8			1,791.7			1,571.6			1,590.5			795.0			825.6
Operating income before federal taxes		437.2			373.3			193.9			413.5			537.6			267.4			286.0
Federal income taxes		79.1			57.1			10.5			81.6			123.0			63.5			67.9
Income from Operations	$	358.1		$	316.2		$	183.4		$	331.9		$	414.6		$	204.0		$	218.1
Effective tax rate		18.1	%		15.3	%		5.4	%		19.7	%		22.9	%		23.7	%		23.8	%
Average capital	$	1,602.9		$	1,831.4		$	2,339.6		$	2,400.3		$	2,589.1		$	2,553.8		$	2,689.8
Return on average capital		22.3	%		17.3	%		7.8	%		13.8	%		16.0	%		16.0	%		16.2	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period				$	812.5		$	894.3		$	824.7		$	854.6		$	854.6		$	1,040.4
Deferral					227.8			229.0			223.4			421.9			207.5			219.6
Amortization					(124.4	)		(155.4	)		(120.4	)		(174.0	)		(85.9	)		(106.2	)
Included in Total Benefits and Expenses					103.4			73.6			103.0			247.9			121.6			113.5
Adjustment related to realized (gains) losses
on available-for-sale securities					68.2			73.0			(18.7	)		(28.3	)		(16.2	)		(18.5	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities					(90.0	)		(201.3	)		(54.3	)		8.3			138.5			39.4
Other*					0.2			(14.8	)
Cumulative effect of accounting change														(42.3	)		(42.3	)
Balance at end of period				$	894.3		$	824.7		$	854.6		$	1,040.4		$	1,056.2		$	1,174.8
Roll Forward of Present Value of In-Force
Balance at beginning of period				$	169.2		$	154.5		$	122.7		$	113.2		$	113.2		$	92.6
Amortization					(14.7	)		(31.8	)		(9.5	)		(20.0	)		(6.2	)		(4.7	)
Cumulative effect of accounting change														(0.6	)		(0.6	)
Balance at end of period				$	154.5		$	122.7		$	113.2		$	92.6		$	106.4		$	87.9
*Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

 

6/30/2005																								PAGE 18
Lincoln Retirement
Income Statements & Operational Data
Unaudited [Millions of Dollars]
For the Quarter Ended	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2003			2003			2003			2004			2004			2004			2004			2005			2005
Operating Revenue
Premiums	$	3.0		$	7.8		$	5.6		$	6.5		$	7.4		$	9.2		$	9.9		$	10.5		$	7.8
Surrender charges		8.5			7.4			6.2			5.9			6.0			6.7			6.4			7.4			6.9
Expense assessments		104.3			115.2			124.8			137.3			140.9			145.2			157.1			164.6			173.1
Other revenue and fees		1.3			8.3			0.5			(0.8	)		(2.1	)		(1.3	)		(2.0	)		(1.4	)		(1.6	)
Net investment income		369.8			377.4			369.5			379.0			382.3			366.5			368.0			357.4			386.8
Total Operating Revenue		487.0			516.0			506.6			528.0			534.4			526.2			539.4			538.5			573.0
Operating Expenses
Benefits paid or provided:
Benefits		34.8			44.6			37.1			54.1			52.0			40.5			43.4			52.4			61.5
Interest credited to policy balances		217.1			216.5			214.0			207.8			208.0			209.9			210.4			204.7			206.4
Def. sales inducements net of amortization		(2.4	)		(2.8	)		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)		(9.4	)		(11.7	)
Total insurance benefits		249.5			258.2			245.5			252.8			250.2			240.0			242.2			247.8			256.2
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		88.9			96.8			119.6			141.8			146.9			141.3			156.7			149.7			153.4
Operating and administrative expenses		56.6			57.0			58.5			51.7			58.1			62.5			59.6			56.8			64.2
Taxes, licenses and fees		4.3			3.7			4.0			5.2			3.7			3.2			2.5			3.9			2.4
Subtotal		149.8			157.6			182.2			198.7			208.7			207.0			218.8			210.4			220.0
DAC deferral net of amortization		(20.2	)		(27.2	)		(42.0	)		(60.4	)		(61.2	)		(77.3	)		(49.0	)		(49.4	)		(64.1	)
PVIF amortization		2.1			3.3			1.8			3.3			2.9			11.5			2.3			2.4			2.4
Total underwriting, acquisition,
insurance and other expenses		131.7			133.6			141.9			141.6			150.4			141.1			172.1			163.3			158.3
Total Operating Expenses		381.2			391.9			387.4			394.4			400.6			381.2			414.3			411.1			414.4
Operating income before federal taxes		105.7			124.1			119.2			133.6			133.8			145.0			125.1			127.4			158.6
Federal income taxes		19.6			29.8			25.1			31.4			32.1			34.9			24.7			28.8			39.2
Income from Operations	$	86.1		$	94.3		$	94.1		$	102.2		$	101.8		$	110.2		$	100.5		$	98.6		$	119.4
Effective tax rate		18.6	%		24.0	%		21.1	%		23.5	%		24.0	%		24.1	%		19.7	%		22.6	%		24.7	%
Average capital	$	2,262.3		$	2,386.7		$	2,425.4		$	2,532.6		$	2,575.1		$	2,560.5		$	2,688.4		$	2,661.3		$	2,718.3
Return on average capital		15.2	%		15.8	%		15.5	%		16.1	%		15.8	%		17.2	%		14.9	%		14.8	%		17.6	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	$	786.2		$	616.3		$	721.7		$	854.6		$	748.7		$	1,056.2			984.6		$	1,040.4		$	1,214.0
Deferral		47.4			58.9			73.5			101.9			105.5			101.5			112.9			107.0			112.7
Amortization		(27.2	)		(31.6	)		(31.5	)		(41.5	)		(44.4	)		(24.2	)		(63.9	)		(57.6	)		(48.6	)
Included in Total Benefits and Expenses		20.2			27.2			42.0			60.4			61.2			77.3			49.0			49.4			64.1
Adjustment related to realized (gains) losses
on available-for-sale securities		7.9			(31.8	)		(16.7	)		(10.2	)		(6.0	)		(1.8	)		(10.3	)		(10.1	)		(8.4	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(197.9	)		109.9			107.6			(113.9	)		252.4			(147.2	)		17.0			134.2			(94.8	)
Other
Cumulative effect of accounting change											(42.3	)
Balance at end-of-quarter	$	616.3		$	721.7		$	854.6		$	748.7		$	1,056.2		$	984.6		$	1,040.4		$	1,214.0		$	1,174.8
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	$	120.4		$	118.3		$	115.0		$	113.2		$	109.4		$	106.4		$	94.9		$	92.6		$	90.3
Amortization		(2.1	)		(3.3	)		(1.8	)		(3.3	)		(2.9	)		(11.5	)		(2.3	)		(2.4	)		(2.4	)
Cumulative effect of accounting change											(0.6	)
Balance at end-of-quarter	$	118.3		$	115.0		$	113.2		$	109.4		$	106.4		$	94.9		$	92.6		$	90.3		$	87.9

6/30/2005																			PAGE 19
Lincoln Retirement
Annuity Account Value Rollforward
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Fixed Annuities- Bal Beg-of-Year	$	18.210		$	16.615		$	18.004		$	20.087		$	21.220		$	21.220		$	21.565
Gross Deposits		2.074			3.342			3.672			3.125			3.110			1.596			1.533
Withdrawals (incl charges) & deaths		(3.283	)		(2.448	)		(2.637	)		(2.074	)		(2.227	)		(1.085	)		(1.410	)
Net flows		(1.209	)		0.894			1.035			1.051			0.884			0.510			0.123
Transfer from (to) var annuities		(1.329	)		(0.428	)		0.108			(0.817	)		(1.395	)		(0.679	)		(0.689	)
Interest credited		0.944			0.923			0.940			0.899			0.856			0.424			0.417
Fixed Annuities-Gross		16.615			18.004			20.087			21.220			21.565			21.476			21.417
Reinsurance Ceded		(1.221	)		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.333	)		(2.277	)
Fixed Annuities-Bal End -of-Year	$	15.394		$	16.491		$	18.085		$	18.868		$	19.268		$	19.143		$	19.141
Fixed Annuities Incremental Deposits *	$	1.918		$	3.213		$	3.600		$	3.067		$	3.046			1.562			1.498
Variable Annuities-Bal Beg-of-Year**	$	41.493		$	39.427		$	34.638		$	27.438		$	35.786		$	35.786		$	43.223
Gross Deposits		3.165			3.067			2.743			3.119			5.910			2.831			3.635
Withdrawals (incl charges) & deaths		(4.830	)		(3.856	)		(3.325	)		(3.162	)		(3.871	)		(1.929	)		(2.125	)
Net flows		(1.665	)		(0.789	)		(0.582	)		(0.044	)		2.038			0.902			1.510
Transfer from (to) fixed annuities		1.320			0.428			(0.122	)		0.809			1.356			0.666			0.692
Invest inc & change in mkt value		(1.721	)		(4.428	)		(6.497	)		7.583			4.043			1.044			0.327
Var Annuities-Bal End-of-Year	$	39.427		$	34.638		$	27.438		$	35.786		$	43.223		$	38.398		$	45.751
Variable Annuities Incremental Deposits *	$	2.667		$	2.624		$	2.569		$	3.019		$	5.755		$	2.752		$	3.562
Total Annuities - Bal Beg-of-Year	$	59.703		$	56.042		$	52.642		$	47.525		$	57.006		$	57.006		$	64.788
Gross Deposits		5.239			6.409			6.415			6.244			9.020			4.427			5.167
Withdrawals (incl charges) & deaths		(8.113	)		(6.304	)		(5.962	)		(5.236	)		(6.098	)		(3.014	)		(3.535	)
Net flows		(2.874	)		0.105			0.453			1.007			2.922			1.412			1.633
Transfers		(0.009	)					(0.013	)		(0.008	)		(0.039	)		(0.013	)		0.003
Interest credited & change in mkt value		(0.777	)		(3.505	)		(5.558	)		8.482			4.898			1.469			0.744
Total Gross Annuities-Bal End-of-Year		56.042			52.642			47.525			57.006			64.788			59.874			67.168
Reinsurance Ceded		(1.221	)		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.333	)		(2.277	)
Total Annuities (Net of Ceded) - Bal End-of-Year	$	54.821		$	51.129		$	45.522		$	54.653		$	62.490		$	57.541		$	64.892
Total Incremental Deposits *	$	4.585		$	5.837		$	6.169		$	6.086		$	8.802		$	4.313		$	5.060
Var Ann Under Agree - Included above	$	0.941		$	1.077		$	1.186		$	2.166		$	3.127		$	2.618		$	3.664
* Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
** Includes amounts attributable to Alliance program mutual fund net flows. Alliance program mutual fund account values are not
included in the separate accounts reported on our balance sheet.
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.459		$	1.712		$	1.844		$	1.415		$	1.026		$	0.613		$	0.378
Withdrawals		(2.271	)		(1.604	)		(1.473	)		(0.934	)		(1.119	)		(0.530	)		(0.757	)
Net Flows		($1.812	)	$	0.108		$	0.371		$	0.481			($0.093	)	$	0.083			($0.378	)
Gross Fixed Account Values							$	10.475		$	11.440		$	11.820		$	11.755		$	11.681
Reinsurance Ceded								(2.003	)		(2.353	)		(2.297	)		(2.333	)		(2.277	)
Net Fixed Account Values							$	8.473		$	9.087		$	9.522		$	9.422		$	9.404
Variable Annuities - including fixed portion of variable contracts**
Deposits	$	4.780		$	4.697		$	4.571		$	4.829		$	7.994		$	3.813		$	4.789
Withdrawals		(5.842	)		(4.700	)		(4.489	)		(4.302	)		(4.979	)		($2.484	)		(2.778	)
Net Flows		($1.062	)		($0.003	)	$	0.082		$	0.527		$	3.015		$	1.329		$	2.011
Variable Account Values							$	37.050		$	45.567		$	52.969		$	48.120		$	55.488
Fixed Portion of Variable Contracts
Deposits	$	1.615		$	1.630		$	1.828		$	1.710		$	2.085		$	0.982		$	1.155
Withdrawals		(1.012	)		(0.844	)		(1.164	)		(1.140	)		(1.108	)		(0.555	)		(0.653	)
Net Flows	$	0.603		$	0.786		$	0.664		$	0.570		$	0.977		$	0.427		$	0.502
Fixed Portion of Variable Account Values							$	9.612		$	9.781		$	9.746		$	9.721		$	9.736
Average Daily Variable Account Values	$	41.776		$	35.573		$	30.826		$	30.372		$	38.322		$	37.362		$	43.818
Annuity Product Spread Information (1)
Net Investment Income (2) (3)		7.38	%		7.38	%		6.98	%		6.41	%		6.28	%		6.38	%		6.05	%
Interest Credited to Policyholders		5.24	%		5.33	%		4.87	%		4.25	%		3.92	%		3.95	%		3.82	%
Spread (2) (3)		2.14	%		2.05	%		2.11	%		2.16	%		2.37	%		2.43	%		2.24	%
(1) 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.
(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment
income and spread was 20 bps in 2004, 6 bps in 2003 and 7 bps in 2002. In the first six months of 2004, the impact was 22 bps and in the first six months of 2005, the impact was 9 bps.
(3) 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 6 bps to the yield and spread for the full year and 13 bps to yield and spread for 2004 year-to-date through June.

6/30/2005																		PAGE 19A
Lincoln Retirement
Account Value Rollforward
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Fixed Annuities - Balance at Beginning of Year	$	18.210		$	16.615		$	18.004		$	20.087		$	21.220		$	21.220		$	21.565
Gross Deposits		2.074			3.342			3.672			3.125			3.110			1.596			1.533
Withdrawals & deaths		(3.283	)		(2.448	)		(2.637	)		(2.074	)		(2.227	)		(1.085	)		(1.410	)
Net flows		(1.209	)		0.894			1.035			1.051			0.884			0.510			0.123
Transfer from (to) var annuities		(1.329	)		(0.428	)		0.108			(0.817	)		(1.395	)		(0.679	)		(0.689	)
Interest credited		0.944			0.923			0.940			0.899			0.856			0.424			0.417
Fixed Annuities-Gross		16.615			18.004			20.087			21.220			21.565			21.476			21.416
Reinsurance Ceded		(1.221	)		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.333	)		(2.277	)
Fixed Annuities - Balance at End of Year*	$	15.394		$	16.491		$	18.085		$	18.868		$	19.268		$	19.143		$	19.141
Variable Annuities - Balance at Beginning of Year	$	41.448		$	39.053		$	33.999		$	26.550		$	33.930		$	33.930		$	40.362
Gross Deposits		3.007			2.792			2.381			2.505			5.082			2.393			2.991
Withdrawals & deaths		(5.024	)		(3.905	)		(3.394	)		(3.181	)		(3.797	)		(1.903	)		(2.030	)
Net flows		(2.017	)		(1.113	)		(1.014	)		(0.676	)		1.285			0.490			0.962
Transfer from (to) fixed annuities		1.315			0.435			(0.092	)		0.803			1.387			0.672			0.696
Invest inc & change in mkt value		(1.693	)		(4.376	)		(6.344	)		7.253			3.760			0.972			0.300
Var Annuities - Balance at End of Year	$	39.053		$	33.999		$	26.550		$	33.930		$	40.362		$	36.064		$	42.319
Total Annuities - Balance at Beginning of Year	$	59.658		$	55.668		$	52.003		$	46.637		$	55.150		$	55.150		$	61.927
Gross Deposits		5.080			6.134			6.053			5.630			8.192			3.988			4.524
Withdrawals & deaths		(8.307	)		(6.353	)		(6.032	)		(5.255	)		(6.023	)		(2.988	)		(3.439	)
Net flows		(3.227	)		(0.219	)		0.021			0.375			2.169			1.000			1.085
Transfers		(0.014	)		0.007			0.017			(0.014	)		(0.008	)		(0.008	)		0.007
Interest credited & change in mkt value		(0.749	)		(3.453	)		(5.404	)		8.152			4.616			1.397			0.717
Total Gross Annuities- Balance at End of Year		55.667			52.003			46.637			55.150			61.927			57.539			63.736
Reinsurance Ceded		(1.221	)		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.333	)		(2.277	)
Total Annuities (Net of Ceded) - Balance at End of Year	$	54.446		$	50.490		$	44.634		$	52.797		$	59.629		$	55.206		$	61.459
Alliance Mutual Funds - Balance at Beg of Year**	$	0.045		$	0.375		$	0.639		$	0.888		$	1.856		$	1.856		$	2.861
Gross Deposits		0.158			0.275			0.362			0.614			0.828			0.438			0.643
Withdrawals & deaths		0.194			0.049			0.069			0.019			(0.075	)		(0.026	)		(0.095	)
Net flows		0.352			0.324			0.432			0.632			0.753			0.412			0.548
Transfers		0.005			(0.007	)		(0.030	)		0.007			(0.031	)		(0.006	)		(0.004	)
Interest credited & change in mkt value		(0.028	)		(0.052	)		(0.153	)		0.330			0.282			0.072			0.027
Total Alliance Mutual Funds - Balance at End of Year	$	0.375		$	0.639		$	0.888		$	1.856		$	2.861		$	2.335		$	3.432
Total Annuities and Alliance Mutual Funds -
Balance Beginning of Year	$	59.703		$	56.042		$	52.642		$	47.525		$	57.006		$	57.006		$	64.788
Gross Deposits		5.239			6.409			6.415			6.244			9.020			4.427			5.167
Withdrawals & deaths		(8.113	)		(6.304	)		(5.962	)		(5.236	)		(6.098	)		(3.014	)		(3.535	)
Net flows		(2.874	)		0.105			0.453			1.007			2.922			1.412			1.633
Transfers		(0.009	)		(0.000	)		(0.013	)		(0.008	)		(0.039	)		(0.013	)		0.003
Interest credited & change in mkt value		(0.777	)		(3.505	)		(5.558	)		8.482			4.898			1.469			0.744
Total Gross Annuities and Alliance - Balance End of Year		56.042			52.642			47.525			57.006			64.788			59.874			67.168
Reinsurance Ceded		(1.221	)		(1.514	)		(2.003	)		(2.353	)		(2.297	)		(2.333	)		(2.277	)
Total Annuities and Alliance Mutual Funds
Balance at End of Year - (net of ceded)	$	54.821		$	51.128		$	45.522		$	54.653		$	62.490		$	57.541		$	64.891
Run-off Group Pension Accounts - Not Included above		2.952			3.060			2.844			2.947			2.906			2.910			2.883
Total Retirement Segment Account Values - (net of ceded)	$	57.773		$	54.189		$	48.366		$	57.600		$	65.396		$	60.451		$	67.774
Var Ann Under Agreement - Included above		0.566			0.438			0.298			0.310			0.266			0.283			0.232
Incremental Deposits***:
Fixed Annuities Incremental Deposits	$	1.918		$	3.213		$	3.600		$	3.067		$	3.046		$	1.562		$	1.498
Variable Annuities Incremental Deposits		2.315			1.985			2.207			2.405			4.928			2.314			2.919
Total Annuities Incremental Deposits		4.233			5.198			5.807			5.472			7.974			3.875			4.417
Total Alliance Mutual Funds Incremental Deposits		0.352			0.639			0.362			0.614			0.828			0.438			0.643
Total Annuities and Alliance Mutual Funds
Incremental Deposits	$	4.585		$	5.837		$	6.170		$	6.086		$	8.802		$	4.313		$	5.060
* Includes Fixed Annuity products offered under the Alliance program.
** Represents amounts attributable to Alliance program mutual fund net flows. Alliance program mutual fund account values are not included in
the separate accounts reported on our balance sheet.
*** Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.

6/30/2005																		PAGE 19B
Lincoln Retirement
Account Values
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.459		$	1.712		$	1.844		$	1.415		$	1.026		$	0.613		$	0.378
Withdrawals		(2.271	)		(1.604	)		(1.473	)		(0.934	)		(1.119	)		(0.530	)		(0.757	)
Net Flows		($1.812	)	$	0.108		$	0.371		$	0.481			($0.093	)	$	0.083			($0.378	)
Gross Fixed Contract Account Values							$	10.475		$	11.440		$	11.820		$	11.755		$	11.681
Reinsurance Ceded								(2.003	)		(2.353	)		(2.297	)		(2.333	)		(2.277	)
Net Fixed Contract Account Values							$	8.473		$	9.087		$	9.522		$	9.422		$	9.404
Fixed Portion of Variable Contracts
Deposits	$	1.615		$	1.630		$	1.828		$	1.710		$	2.085		$	0.982		$	1.155
Withdrawals		(1.012	)		(0.844	)		(1.164	)		(1.140	)		(1.108	)		(0.555	)		(0.653	)
Net Flows	$	0.603		$	0.786		$	0.664		$	0.570		$	0.977		$	0.427		$	0.502
Fixed Portion of Variable Contract Account Values							$	9.612		$	9.781		$	9.746		$	9.721		$	9.736
Variable Annuities - including fixed portion of variable contracts
Deposits	$	4.622		$	4.422		$	4.208		$	4.215		$	7.166		$	3.375		$	4.146
Withdrawals		(6.036	)		(4.748	)		(4.558	)		(4.320	)		(4.904	)		(2.458	)		(2.683	)
Net Flows		($1.414	)		($0.326	)		($0.350	)		($0.106	)	$	2.262		$	0.917		$	1.463
Variable Contract Account Values							$	36.162		$	43.711		$	50.108		$	45.785		$	52.056
Average Daily Variable Annuity Account Values	$	41.541		$	35.054		$	30.026		$	29.002		$	36.018		$	35.194		$	40.669
Alliance Mutual Funds Contracts
Deposits	$	0.158		$	0.275		$	0.362		$	0.614		$	0.828		$	0.438		$	0.643
Withdrawals		0.194			0.049			0.069			0.019			(0.075	)		(0.026	)		(0.095	)
Net Flows	$	0.352		$	0.324		$	0.432		$	0.632		$	0.753		$	0.412		$	0.548
Alliance Mutual Funds Contract Account Values*	$	0.375		$	0.639		$	0.888		$	1.856		$	2.861		$	2.335		$	3.432
Average Daily Alliance Mutual Funds Acct Vals*	$	0.235		$	0.519		$	0.800		$	1.371		$	2.304		$	2.168		$	3.149
* Alliance program mutual fund account values are not included in the separate accounts reported on our balance sheet
Total Annuity Product Spread Information (1)
Net Investment Income (2) (3)		7.38	%		7.38	%		6.98	%		6.41	%		6.28	%		6.38	%		6.05	%
Interest Credited to Policyholders		5.24	%		5.33	%		4.87	%		4.25	%		3.92	%		3.95	%		3.82	%
Spread (2) (3)		2.14	%		2.05	%		2.11	%		2.16	%		2.37	%		2.43	%		2.24	%
(1) 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.
(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on
investment income and spread was 20 bps in 2004, 6 bps in 2003 and 7 bps in 2002. In the first six months of 2004, the impact was 22 bps and in the first six months of 2005, the impact was 9
bps.
(3) 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 6 bps to the yield and spread for the full year and 13 bps to yield and spread for 2004 year-to-date through June.

6/30/2005																																	PAGE 20
Lincoln Retirement
Annuity Account Value Rollforward
Unaudited [Billions of Dollars]
	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Fixed Annuities-Bal Beg-of-Quarter	$	18.680		$	19.563		$	20.088		$	20.612		$	20.864		$	21.132		$	21.221		$	21.281		$	21.476		$	21.633		$	21.565		$	21.375
Gross Deposits		1.091			0.822			0.776			0.778			0.778			0.792			0.817			0.779			0.783			0.732			0.740			0.793
Withdrawals (incl charges) & deaths		(0.825	)		(0.531	)		(0.524	)		(0.501	)		(0.492	)		(0.557	)		(0.571	)		(0.515	)		(0.554	)		(0.587	)		(0.778	)		(0.632	)
Net flows		0.265			0.291			0.253			0.277			0.286			0.235			0.246			0.264			0.228			0.145			(0.038	)		0.161
Transfer from (to) var annuities		0.379			(0.007	)		0.046			(0.250	)		(0.243	)		(0.369	)		(0.399	)		(0.280	)		(0.287	)		(0.429	)		(0.359	)		(0.329	)
Interest credited		0.238			0.240			0.226			0.226			0.225			0.223			0.213			0.211			0.215			0.216			0.207			0.210
Fixed Annuities-Gross		19.563			20.088			20.612			20.864			21.132			21.221			21.281			21.476			21.633			21.565			21.375			21.417
Reinsurance Ceded		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)
Fixed Annuities-Bal End-of-Quarter	$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084		$	19.141
Fixed Annuities Incremental Deposits *	$	1.072		$	0.808		$	0.753		$	0.768		$	0.767		$	0.779		$	0.795		$	0.767		$	0.767		$	0.718		$	0.719		$	0.779
Variable Annuities-Bal Beg-of-Quarter**	$	31.206		$	25.942		$	27.438		$	26.474		$	30.457		$	31.709		$	35.786		$	37.619		$	38.398		$	38.698		$	43.223		$	43.673
Gross Deposits		0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899			1.736
Withdrawals (incl charges) & deaths		(0.800	)		(0.763	)		(0.806	)		(0.762	)		(0.809	)		(0.786	)		(0.941	)		(0.988	)		(0.936	)		(1.006	)		(1.085	)		(1.040	)
Net flows		(0.197	)		(0.217	)		(0.158	)		(0.178	)		(0.009	)		0.300			0.465			0.436			0.488			0.649			0.814			0.696
Transfer from (to) fixed annuities		(0.388	)		0.000			(0.048	)		0.249			0.243			0.365			0.400			0.266			0.262			0.427			0.366			0.326
Invest inc & change in mkt value		(4.679	)		1.713			(0.759	)		3.912			1.018			3.412			0.968			0.076			(0.450	)		3.448			(0.729	)		1.056
Var Annuities-Bal End-of-Quarter	$	25.942		$	27.438		$	26.474		$	30.457		$	31.709		$	35.786		$	37.619		$	38.398		$	38.698		$	43.223		$	43.673		$	45.751
Variable Annuities Incremental Deposits *	$	0.573		$	0.528		$	0.629		$	0.560		$	0.776		$	1.053		$	1.370		$	1.381		$	1.380		$	1.624		$	1.864		$	1.699
Total Annuities - Bal Beg-of-Quarter	$	49.887		$	45.505		$	47.525		$	47.086		$	51.321		$	52.842		$	57.007		$	58.900		$	59.875		$	60.331		$	64.788		$	65.048
Gross Deposits		1.694			1.368			1.424			1.363			1.578			1.879			2.223			2.203			2.207			2.387			2.639			2.529
Withdrawals (incl charges) & deaths		(1.626	)		(1.294	)		(1.329	)		(1.263	)		(1.301	)		(1.343	)		(1.512	)		(1.503	)		(1.490	)		(1.593	)		(1.863	)		(1.671	)
Net flows		0.068			0.074			0.095			0.099			0.277			0.536			0.712			0.701			0.716			0.794			0.776			0.857
Transfers		(0.009	)		(0.006	)		(0.002	)		(0.002	)		0.001			(0.004	)		0.001			(0.014	)		(0.024	)		(0.002	)		0.006			(0.003	)
Interest credited & change in mkt value		(4.441	)		1.953			(0.532	)		4.137			1.243			3.634			1.181			0.288			(0.235	)		3.665			(0.522	)		1.266
Total Gross Annuities - Bal End-of-Quarter		45.505			47.525			47.086			51.321			52.842			57.007			58.900			59.875			60.331			64.788			65.048			67.168
Reinsurance Ceded		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)
Total Annuities (Net of Ceded) - Bal  End-of-Qtr	$	43.592		$	45.523		$	45.011		$	49.152		$	50.577		$	54.654		$	56.550		$	57.541		$	58.016		$	62.491		$	62.757		$	64.892
Total Annuities Incremental Deposits *	$	1.645		$	1.336		$	1.382		$	1.328		$	1.543		$	1.833		$	2.165		$	2.148		$	2.146		$	2.342		$	2.582		$	2.478
Var Ann Under Agree - Included above	$	1.083		$	1.186		$	1.355		$	1.637		$	1.820		$	2.166		$	2.463		$	2.618		$	2.692		$	3.127		$	3.407		$	3.664
* Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
** Includes amounts attributable to Alliance program mutual fund net flows. Alliance program mutual fund account
values are not included in the separate accounts reported on our balance sheet.
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.559		$	0.351		$	0.368		$	0.356		$	0.344		$	0.347		$	0.365		$	0.249		$	0.220		$	0.192		$	0.198		$	0.180
Withdrawals		(0.516	)		(0.228	)		(0.208	)		(0.235	)		(0.238	)		(0.253	)		(0.269	)		(0.261	)		(0.286	)		(0.302	)		(0.454	)		(0.303	)
Net Flows	$	0.042		$	0.123		$	0.160		$	0.121		$	0.106		$	0.094		$	0.096			($0.013	)		($0.066	)		($0.110	)		($0.256	)		($0.123	)
Gross Fixed Account Values		10.219		$	10.475		$	10.759		$	11.001		$	11.226		$	11.440		$	11.649		$	11.755		$	11.811		$	11.820		$	11.684		$	11.681
Reinsurance Ceded		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)
Net Fixed Account Values	$	8.306		$	8.473		$	8.684		$	8.832		$	8.962		$	9.087		$	9.299		$	9.422		$	9.495		$	9.522		$	9.392		$	9.404
Variable Annuities - including fixed portion of variable contracts**
Deposits	$	1.135		$	1.017		$	1.056		$	1.007		$	1.234		$	1.532		$	1.859		$	1.954		$	1.986		$	2.195		$	2.441		$	2.349
Withdrawals		(1.109	)		(1.066	)		(1.121	)		(1.028	)		(1.063	)		(1.090	)		(1.243	)		(1.241	)		(1.204	)		(1.291	)		(1.409	)		(1.369	)
Net Flows	$	0.026			($0.049	)		($0.065	)		($0.022	)	$	0.172		$	0.442		$	0.616		$	0.713		$	0.782		$	0.904		$	1.031		$	0.980
Variable Account Values	$	35.286		$	37.050		$	36.327		$	40.320		$	41.616		$	45.567		$	47.251		$	48.120		$	48.521		$	52.969		$	53.365		$	55.488
Fixed Portion of Variable Contracts
Deposits	$	0.532		$	0.472		$	0.408		$	0.422		$	0.434		$	0.445		$	0.452		$	0.530		$	0.563		$	0.540		$	0.541		$	0.613
Withdrawals		(0.309	)		(0.303	)		(0.316	)		(0.266	)		(0.254	)		(0.304	)		(0.302	)		(0.253	)		(0.268	)		(0.284	)		(0.324	)		(0.329	)
Net Flows	$	0.223		$	0.169		$	0.093		$	0.156		$	0.180		$	0.141		$	0.151		$	0.277		$	0.294		$	0.255		$	0.218		$	0.284
Fixed Portion of Variable Account Values	$	9.344		$	9.612		$	9.853		$	9.864		$	9.906		$	9.781		$	9.631		$	9.721		$	9.822		$	9.746		$	9.691		$	9.736
Average Daily Variable Account Values	$	28.023		$	27.431		$	26.907		$	29.195		$	31.490		$	33.897		$	37.160		$	37.565		$	37.675		$	40.889		$	43.416		$	44.280
Annuity Product Spread Information (1)
Net Investment Income (2)(3)		6.87	%		6.89	%		6.61	%		6.49	%		6.42	%		6.13	%		6.43	%		6.34	%		6.14	%		6.23	%		6.05	%		6.06	%
Interest Credited to Policyholders		4.76	%		4.72	%		4.42	%		4.29	%		4.20	%		4.09	%		3.97	%		3.93	%		3.90	%		3.87	%		3.82	%		3.81	%
Spread (2)(3)		2.11	%		2.17	%		2.19	%		2.20	%		2.22	%		2.04	%		2.46	%		2.41	%		2.24	%		2.36	%		2.23	%		2.25	%
(1) 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.
(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread was 9 bps in the 2nd quarter of 2005, 8 bps in the 1st quarter of 2005, 17 bps in the 4th quarter of 2004, 19 bps in the 3rd quarter of 2004, 38 bps in the 2nd quarter of 2004, 7 bps in the first quarter of 2004, and 3bps in the 4th quarter of 2003.
(3) 1st quarter 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 27 bps to the yield and spread.

6/30/2005																															PAGE 20A
Lincoln Retirement
Account Value Rollforward
Unaudited [Billions of Dollars]
	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Fixed Annuities - Balance at Beginning of Quarter	$	18.680		$	19.563		$	20.088		$	20.612		$	20.864		$	21.132		$	21.221		$	21.281		$	21.476		$	21.633		$	21.565		$	21.375
Gross Deposits		1.091			0.822			0.776			0.778			0.778			0.792			0.817			0.779			0.783			0.732			0.740			0.793
Withdrawals & deaths		(0.825	)		(0.531	)		(0.524	)		(0.501	)		(0.492	)		(0.557	)		(0.571	)		(0.515	)		(0.554	)		(0.587	)		(0.778	)		(0.632	)
Net flows		0.265			0.291			0.253			0.277			0.286			0.235			0.246			0.264			0.228			0.145			(0.038	)		0.161
Transfer from (to) var annuities		0.379			(0.007	)		0.046			(0.250	)		(0.243	)		(0.369	)		(0.399	)		(0.280	)		(0.287	)		(0.429	)		(0.359	)		(0.329	)
Interest credited		0.238			0.240			0.226			0.226			0.225			0.223			0.213			0.211			0.215			0.216			0.207			0.210
Fixed Annuities - Gross		19.563			20.088			20.612			20.864			21.132			21.221			21.281			21.476			21.633			21.565			21.375			21.417
Reinsurance Ceded		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)
Fixed Annuities - Balance at End of Quarter*	$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084		$	19.141
Variable Annuities - Balance at Beginning of Quarter	$	30.401		$	25.161		$	26.550		$	25.402		$	29.121		$	30.185		$	33.930		$	35.457		$	36.064		$	36.268		$	40.362		$	40.510
Gross Deposits		0.504			0.477			0.452			0.468			0.651			0.933			1.156			1.237			1.257			1.433			1.478			1.513
Withdrawals & deaths		(0.803	)		(0.777	)		(0.825	)		(0.759	)		(0.798	)		(0.798	)		(0.930	)		(0.973	)		(0.904	)		(0.990	)		(1.012	)		(1.018	)
Net flows		(0.299	)		(0.300	)		(0.373	)		(0.291	)		(0.147	)		0.135			0.226			0.264			0.352			0.443			0.466			0.495
Transfer from (to) fixed annuities		(0.375	)		0.018			(0.045	)		0.249			0.238			0.361			0.393			0.279			0.288			0.427			0.363			0.333
Invest inc & change in mkt value		(4.566	)		1.671			(0.730	)		3.761			0.973			3.249			0.908			0.064			(0.436	)		3.224			(0.681	)		0.981
Variable Annuities - Balance at End of Quarter	$	25.161		$	26.550		$	25.402		$	29.121		$	30.185		$	33.930		$	35.457		$	36.064		$	36.268		$	40.362		$	40.510		$	42.319
Total Annuities - Balance at Beginning of Quarter	$	49.081		$	44.724		$	46.638		$	46.014		$	49.985		$	51.318		$	55.151		$	56.738		$	57.540		$	57.901		$	61.927		$	61.885
Gross Deposits		1.595			1.299			1.229			1.247			1.430			1.725			1.973			2.016			2.039			2.164			2.218			2.306
Withdrawals & deaths		(1.628	)		(1.308	)		(1.349	)		(1.261	)		(1.290	)		(1.355	)		(1.501	)		(1.487	)		(1.459	)		(1.576	)		(1.790	)		(1.650	)
Net flows		(0.034	)		(0.009	)		(0.120	)		(0.014	)		0.139			0.370			0.472			0.528			0.581			0.588			0.428			0.657
Transfers		0.004			0.011			0.001			(0.001	)		(0.005	)		(0.008	)		(0.006	)		(0.001	)		0.001			(0.002	)		0.004			0.003
Interest credited & change in mkt value		(4.328	)		1.911			(0.504	)		3.986			1.198			3.472			1.121			0.275			(0.221	)		3.440			(0.474	)		1.191
Fixed Annuities - Gross		44.724			46.638			46.014			49.985			51.318			55.151			56.738			57.540			57.901			61.927			61.885			63.736
Reinsurance Ceded		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)
Total Annuities (Net of Ceded) - Bal at End of Quarter	$	42.811		$	44.635		$	43.939		$	47.817		$	49.053		$	52.798		$	54.387		$	55.207		$	55.585		$	59.630		$	59.594		$	61.460
Alliance Mutual Funds - Balance at Beginning of Quarter**	$	0.806		$	0.781		$	0.888		$	1.072		$	1.336		$	1.524		$	1.856		$	2.162		$	2.335		$	2.430		$	2.861		$	3.163
Gross Deposits		0.099			0.069			0.196			0.116			0.148			0.154			0.251			0.187			0.167			0.223			0.421			0.222
Withdrawals & deaths		0.003			0.014			0.020			(0.002	)		(0.011	)		0.012			(0.011	)		(0.015	)		(0.032	)		(0.017	)		(0.074	)		(0.022	)
Net flows		0.102			0.083			0.216			0.113			0.138			0.165			0.240			0.172			0.135			0.206			0.347			0.201
Transfers		(0.013	)		(0.018	)		(0.003	)		(0.001	)		0.006			0.004			0.007			(0.013	)		(0.025	)		0.000			0.002			(0.006	)
Interest credited & change in mkt value		(0.113	)		0.042			(0.029	)		0.151			0.045			0.162			0.060			0.013			(0.014	)		0.225			(0.048	)		0.075
Total Alliance Mutual Funds -   Balance at End of Quarter	$	0.781		$	0.888		$	1.072		$	1.336		$	1.524		$	1.856		$	2.162		$	2.335		$	2.430		$	2.861		$	3.163		$	3.432
Total Annuities and Alliance Mutual Funds -
Balance at Beginning of Quarter	$	49.887		$	45.505		$	47.525		$	47.086		$	51.321		$	52.842		$	57.007		$	58.900		$	59.875		$	60.331		$	64.788		$	65.048
Gross Deposits		1.694			1.368			1.424			1.363			1.578			1.879			2.223			2.203			2.207			2.387			2.639			2.529
Withdrawals & deaths		(1.626	)		(1.294	)		(1.329	)		(1.263	)		(1.301	)		(1.343	)		(1.512	)		(1.503	)		(1.490	)		(1.593	)		(1.863	)		(1.671	)
Net flows		0.068			0.074			0.095			0.099			0.277			0.536			0.712			0.701			0.716			0.794			0.776			0.857
Transfers		(0.009	)		(0.006	)		(0.002	)		(0.002	)		0.001			(0.004	)		0.001			(0.014	)		(0.024	)		(0.002	)		0.006			(0.003	)
Interest credited & change in mkt value		(4.441	)		1.953			(0.532	)		4.137			1.243			3.634			1.181			0.288			(0.235	)		3.665			(0.522	)		1.266
Total Gross Annuities and Alliance  Mutual Funds -
Balance at End of Quarter		45.505			47.525			47.086			51.321			52.842			57.007			58.900			59.875			60.331			64.788			65.048			67.168
Reinsurance Ceded		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)
Total Annuities and Alliance  Mutual Funds
Balance at End of Quarter (net of ceded)	$	43.592		$	45.523		$	45.011		$	49.152		$	50.577		$	54.654		$	56.550		$	57.542		$	58.016		$	62.491		$	62.757		$	64.892
Run-off Group Pension Accounts - Not Included Above		2.780			2.844			2.836			2.888			2.888			2.947			2.943			2.910			2.857			2.906			2.886			2.883
Total Retirement Segment Account Values - (net of ceded)	$	46.372		$	48.367		$	47.847		$	52.040		$	53.466		$	57.601		$	59.493		$	60.452		$	60.872		$	65.397		$	65.643		$	67.775
Var Ann Under Agreement - Included above		0.302			0.298			0.283			0.301			0.296			0.310			0.301			0.283			0.261			0.266			0.244			0.232
Incremental Deposits***:
Fixed Annuities Incremental Deposits	$	1.072		$	0.808		$	0.753		$	0.768		$	0.767		$	0.779		$	0.795		$	0.767		$	0.767		$	0.718		$	0.719		$	0.779
Variable Annuities Incremental Deposits		0.474			0.459			0.433			0.444			0.628			0.899			1.120			1.194			1.212			1.402			1.443			1.476
Total Annuities Incremental Deposits		1.546			1.268			1.186			1.212			1.394			1.679			1.914			1.961			1.979			2.120			2.162			2.256
Total Alliance Mutual Funds Incremental Deposits		0.099			0.069			0.196			0.116			0.148			0.154			0.251			0.187			0.167			0.223			0.421			0.222
Total Annuities and Alliance Mutual Funds Incremental Deposits	$	1.645		$	1.336		$	1.382		$	1.328		$	1.543		$	1.833		$	2.165		$	2.148		$	2.146		$	2.342		$	2.582		$	2.478
* Includes Fixed Annuity products offered under the Alliance program.
** Represents amounts attributable to Alliance program mutual fund net flows. Alliance program mutual fund account values are not included in the separate accounts reported on our balance sheet.
*** Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.

6/30/2005																															PAGE 20B
Lincoln Retirement
Account Values
Unaudited [Billions of Dollars]
	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.559		$	0.351		$	0.368		$	0.356		$	0.344		$	0.347		$	0.365		$	0.249		$	0.220		$	0.192		$	0.198		$	0.180
Withdrawals		(0.516	)		(0.228	)		(0.208	)		(0.235	)		(0.238	)		(0.253	)		(0.269	)		(0.261	)		(0.286	)		(0.302	)		(0.454	)		(0.303	)
Net Flows	$	0.042		$	0.123		$	0.160		$	0.121		$	0.106		$	0.094		$	0.096			($0.013	)		($0.066	)		($0.110	)		($0.256	)		($0.123	)
Gross Fixed Contract Account Values		10.219		$	10.475		$	10.759		$	11.001		$	11.226		$	11.440		$	11.649		$	11.755		$	11.811		$	11.820		$	11.684		$	11.681
Reinsurance Ceded		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)		(2.277	)
Net Fixed Contract Account Values	$	8.306		$	8.473		$	8.684		$	8.832		$	8.962		$	9.087		$	9.299		$	9.422		$	9.495		$	9.522		$	9.392		$	9.404
Fixed Portion of Variable Contracts
Deposits	$	0.532		$	0.472		$	0.408		$	0.422		$	0.434		$	0.445		$	0.452		$	0.530		$	0.563		$	0.540		$	0.541		$	0.613
Withdrawals		(0.309	)		(0.303	)		(0.316	)		(0.266	)		(0.254	)		(0.304	)		(0.302	)		(0.253	)		(0.268	)		(0.284	)		(0.324	)		(0.329	)
Net Flows	$	0.223		$	0.169		$	0.093		$	0.156		$	0.180		$	0.141		$	0.151		$	0.277		$	0.294		$	0.255		$	0.218		$	0.284
Fixed Portion of Variable Contract Account Values	$	9.344		$	9.612		$	9.853		$	9.864		$	9.906		$	9.781		$	9.631		$	9.721		$	9.822		$	9.746		$	9.691		$	9.736
Variable Annuities - including fixed portion of variable contracts**
Deposits	$	1.036		$	0.948		$	0.861		$	0.891		$	1.086		$	1.378		$	1.608		$	1.767		$	1.819		$	1.972		$	2.020		$	2.126
Withdrawals		(1.112	)		(1.080	)		(1.141	)		(1.026	)		(1.052	)		(1.102	)		(1.232	)		(1.226	)		(1.172	)		(1.274	)		(1.336	)		(1.347	)
Net Flows		($0.076	)		($0.132	)		($0.280	)		($0.135	)	$	0.034		$	0.276		$	0.376		$	0.541		$	0.647		$	0.698		$	0.684		$	0.780
Variable Contract Account Values	$	34.505		$	36.162		$	35.255		$	38.985		$	40.091		$	43.711		$	45.088		$	45.785		$	46.090		$	50.108		$	50.202		$	52.056
Average Daily Variable Annuity Account Values	$	27.240		$	26.559		$	25.899		$	27.933		$	30.016		$	32.158		$	35.116		$	35.354		$	35.334		$	38.269		$	40.378		$	41.010
Alliance Mutual Fund Contracts
Deposits	$	0.099		$	0.069		$	0.196		$	0.116		$	0.148		$	0.154		$	0.251		$	0.187		$	0.167		$	0.223		$	0.421		$	0.222
Withdrawals		0.003			0.014			0.020			(0.002	)		(0.011	)		0.012			(0.011	)		(0.015	)		(0.032	)		(0.017	)		(0.074	)		(0.022	)
Net Flows	$	0.102		$	0.083		$	0.216		$	0.113		$	0.138		$	0.165		$	0.240		$	0.172		$	0.135		$	0.206		$	0.347		$	0.201
Alliance Mutual Funds Contract Account Values *	$	0.781		$	0.888		$	1.072		$	1.336		$	1.524		$	1.856		$	2.162		$	2.335		$	2.430		$	2.861		$	3.163		$	3.432
Average Alliance Mutual Funds Account Values*	$	0.783		$	0.872		$	1.008		$	1.262		$	1.474		$	1.739		$	2.044		$	2.211		$	2.341		$	2.620		$	3.038		$	3.270
* Alliance program mutual fund account values are not included in the separate accounts reported on our balance sheet
Total Annuity Product Spread Information (1)
Net Investment Income (2)(3)		6.87	%		6.89	%		6.61	%		6.49	%		6.42	%		6.13	%		6.43	%		6.34	%		6.14	%		6.23	%		6.05	%		6.06	%
Interest Credited to Policyholders		4.76	%		4.72	%		4.42	%		4.29	%		4.20	%		4.09	%		3.97	%		3.93	%		3.90	%		3.87	%		3.82	%		3.81	%
Spread (2)(3)		2.11	%		2.17	%		2.19	%		2.20	%		2.22	%		2.04	%		2.46	%		2.41	%		2.24	%		2.36	%		2.23	%		2.25	%
(1) 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.
(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread was 9 bps in the 2nd quarter of 2005, 8 bps in the 1st quarter of 2005, 17 bps in the 4th quarter of 2004, 19 bps in the 3rd quarter of 2004, 38 bps in the 2nd quarter of 2004, 7 bps in the first quarter of 2004, and 3 bps in the 4th quarter of 2003.
(3) 1st quarter 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 27 bps to the yield and spread.

6/30/2005																		PAGE 21
Life Insurance Segment
Income Statements
Unaudited [Millions of Dollars]
																YTD			YTD
																Jun			Jun
For the Year Ended December 31	2000			2001			2002			2003			2004			2004			2005
Operating Revenue
Premiums	$	227.3		$	212.4		$	203.8		$	194.9		$	194.0		$	96.2		$	93.5
Surrender charges		66.4			66.1			54.1			53.6			51.8			26.5			21.2
Mortality assessments		465.2			499.4			501.5			516.7			518.7			258.1			266.0
Expense assessments		191.8			191.4			199.5			201.8			208.6			100.8			99.0
Other revenue and fees		14.2			17.9			23.7			28.0			31.4			16.0			16.4
Net investment income		871.5			910.2			899.1			911.1			948.4			470.5			485.4
Total Operating Revenue		1,836.4			1,897.5			1,881.7			1,906.1			1,952.9			968.1			981.5
Operating Expenses
Benefits paid or provided:
Benefits		411.5			418.6			427.4			416.0			404.0			201.8			202.4
Div accum & div to policyholders		80.8			78.5			76.0			81.6			77.4			37.1			36.8
Interest credited to policy bal.		525.4			569.9			598.6			598.2			579.7			288.8			291.1
Total insurance benefits		1,017.8			1,067.0			1,101.9			1,095.8			1,061.2			527.7			530.2
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		353.7			318.4			330.2			350.1			331.1			151.0			160.7
Operating and administrative expenses		169.4			166.8			162.2			166.2			168.6			79.2			82.8
Taxes, licenses and fees		48.5			49.2			53.2			62.2			49.1			23.9			27.2
Par policyholder interests		1.1
Subtotal		572.7			534.5			545.6			578.5			548.9			254.1			270.8
DAC deferral net of amortization		(286.5	)		(229.8	)		(230.7	)		(235.2	)		(152.2	)		(72.3	)		(59.2	)
PVIF amortization		103.7			75.9			73.9			81.4			82.2			36.0			28.0
Total underwriting, acquisition,
insurance and other expenses		389.9			380.5			388.8			424.7			478.9			217.8			239.6
Goodwill amortization		23.7			23.7
Total Operating Expenses		1,431.4			1,471.2			1,490.8			1,520.6			1,540.0			745.5			769.8
Operating income before federal taxes		405.0			426.3			390.9			385.5			412.9			222.7			211.7
Federal income taxes		148.4			151.0			121.9			120.9			132.6			71.8			68.1
Income from Operations	$	256.7		$	275.3		$	269.0		$	264.5		$	280.3		$	150.9		$	143.6
Effective Tax Rate		36.6	%		35.4	%		31.2	%		31.4	%		32.1	%		32.2	%		32.2	%
Average capital	$	2,641.3		$	2,734.4		$	2,846.3		$	2,849.9		$	3,036.1		$	2,960.4		$	3,359.1
Return on average capital		9.7	%		10.1	%		9.4	%		9.3	%		9.2	%		10.2	%		8.5	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of period				$	1,079.3		$	1,265.7		$	1,424.5		$	1,578.3		$	1,578.3		$	1,691.9
Deferral					324.8			336.5			370.8			365.2			164.8			176.1
Amortization					(95.0	)		(105.8	)		(135.5	)		(213.0	)		(92.5	)		(116.9	)
Included in Total Operating Expenses					229.8			230.7			235.2			152.2			72.3			59.2
Adjustment related to realized (gains) losses
on available-for-sale securities					43.0			39.7			(31.9	)		(16.1	)		(6.2	)		(7.9	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities					(89.0	)		(130.9	)		(49.5	)		(25.6	)		87.4			(28.4	)
Other*					2.5			19.3						3.2			3.1
Balance at end of period				$	1,265.7		$	1,424.5		$	1,578.3		$	1,691.9		$	1,734.8		$	1,714.8
Roll Forward of Present Value of In-Force
Balance at beginning of period				$	1,040.5		$	963.9		$	890.0		$	808.6		$	808.6		$	726.5
Amortization					(75.9	)		(73.9	)		(81.4	)		(82.2	)		(36.0	)		(28.0	)
Other					(0.7	)
Balance at end of period				$	963.9		$	890.0		$	808.6		$	726.5		$	772.6		$	698.5
Roll Forward of Deferred Front-End Loads**
Balance at beginning of period				$	133.0		$	179.7		$	228.6		$	292.7		$	292.7		$	326.6
Deferral					74.1			85.8			92.1			98.0			46.9			42.0
Amortization					(27.4	)		(37.0	)		(27.9	)		(64.1	)		(27.4	)		(37.0	)
Included in Income from Operations					46.7			48.9			64.1			33.9			19.5			4.9
Balance at end of period				$	179.7		$	228.6		$	292.7		$	326.6		$	312.2		$	331.5
*Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002. 2004 reflects the DAC unlocking resulting from the implementation of SOP 03-1.
** Included in Insurance and Investment Contract Liabilities on the Balance Sheet.

6/30/2005																						PAGE 22
Life Insurance Segment
Income Statements
Unaudited [Millions of Dollars]
For the Quarter Ended	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2003			2003			2003			2004			2004			2004			2004			2005			2005
Premiums	$	49.7		$	45.2		$	52.2		$	47.9		$	48.3		$	44.3		$	53.6		$	45.6		$	47.9
Surrender charges		12.4			13.7			16.1			13.8			12.7			11.1			14.2			12.0			9.1
Mortality assessments		128.4			130.2			128.4			128.5			129.6			130.1			130.5			133.3			132.7
Expense assessments		49.6			48.9			55.0			49.8			51.0			49.8			58.0			48.8			50.2
Other revenue and fees		7.3			6.4			8.4			7.8			8.2			7.3			8.1			8.2			8.2
Net investment income		229.0			226.4			228.1			235.7			234.9			238.4			239.4			236.3			249.2
Total Operating Revenue		476.2			470.8			488.2			483.4			484.8			481.1			503.7			484.2			497.3
Operating Expenses
Benefits paid or provided:
Benefits		110.5			118.5			83.2			97.4			104.4			95.8			106.4			97.4			105.0
Div accum & div to policyholders		17.6			15.9			33.8			18.5			18.6			16.7			23.6			18.4			18.4
Interest credited to policy bal.		149.8			150.7			147.5			144.8			143.9			143.8			147.1			145.8			145.2
Total insurance benefits		277.9			285.1			264.5			260.7			267.0			256.3			277.2			261.6			268.6
Underwriting, acquisition,
insurance and other expenses:
Commissions and other-volume            related expenses		73.8			82.7			106.9			78.0			73.0			80.7			99.4			77.2			83.5
Operating and administrative expenses		38.5			41.7			45.4			38.5			40.7			46.5			42.9			40.7			42.2
Taxes, licenses and fees		13.8			16.1			18.0			12.4			11.5			12.8			12.5			14.7			12.5
Subtotal		126.1			140.5			170.3			128.9			125.2			140.0			154.7			132.6			138.2
DAC deferral net of amortization		(50.2	)		(66.9	)		(74.1	)		(35.0	)		(37.3	)		(25.9	)		(54.0	)		(25.2	)		(34.0	)
PVIF amortization		17.2			26.9			19.9			18.5			17.5			29.8			16.4			15.5			12.5
Total underwriting, acquisition,
insurance and other expenses		93.1			100.6			116.1			112.4			105.4			144.0			117.1			122.9			116.7
Total Operating Expenses		371.0			385.6			380.6			373.1			372.4			400.3			394.3			384.5			385.3
Operating income before federal taxes		105.2			85.2			107.6			110.3			112.4			80.7			109.5			99.7			112.0
Federal income taxes		33.4			26.5			34.3			35.5			36.2			25.4			35.5			32.0			36.2
Income from Operations	$	71.8		$	58.7		$	73.4		$	74.8		$	76.2		$	55.4		$	74.0		$	67.7		$	75.8
Effective Tax Rate		31.8	%		31.1	%		31.8	%		32.2	%		32.2	%		31.4	%		32.4	%		32.1	%		32.3	%
Average capital	$	2,792.7		$	2,849.0		$	2,893.7		$	2,927.4		$	2,993.5		$	3,086.4		$	3,137.0		$	3,300.3		$	3,417.8
Return on average capital		10.3	%		8.2	%		10.1	%		10.2	%		10.2	%		7.2	%		9.4	%		8.2	%		8.9	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	$	1,447.7		$	1,381.3		$	1,483.4		$	1,578.3		$	1,534.8		$	1,734.8		$	1,646.4		$	1,691.9		$	1,786.7
Deferral		79.7			88.0			112.1			83.7			81.1			90.8			109.7			85.0			91.1
Amortization		(29.5	)		(21.1	)		(38.0	)		(48.7	)		(43.8	)		(64.9	)		(55.7	)		(59.8	)		(57.0	)
Included in Total Operating Expenses		50.2			66.9			74.1			35.0			37.3			25.9			54.0			25.2			34.0
Adjustment related to realized (gains) losses
on available-for-sale securities		(0.3	)		(27.6	)		(11.0	)		(3.8	)		(2.4	)		(4.8	)		(5.1	)		(2.0	)		(5.9	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(116.3	)		62.8			31.9			(77.6	)		165.0			(109.3	)		(3.7	)		71.6			(100.1	)
Other*											3.0			0.2			(0.1	)		0.2
Balance at end-of-quarter	$	1,381.3		$	1,483.4		$	1,578.2		$	1,534.8		$	1,734.8		$	1,646.4		$	1,691.9		$	1,786.7		$	1,714.8
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	$	872.7		$	855.5		$	828.5		$	808.6		$	790.1		$	772.6		$	742.8		$	726.5		$	710.9
Amortization		(17.2	)		(26.9	)		(19.9	)		(18.5	)		(17.5	)		(29.8	)		(16.4	)		(15.5	)		(12.5	)
Balance at end-of-quarter	$	855.5		$	828.5		$	808.6		$	790.1		$	772.6		$	742.8		$	726.5		$	710.9		$	698.5
Roll Forward of Deferred Front-End Loads**
Balance at beginning-of-quarter	$	236.8		$	252.2		$	283.1		$	292.7		$	301.5		$	312.2		$	316.4		$	326.6		$	327.9
Deferral		25.0			23.1			23.6			22.8			24.1			23.8			27.3			21.1			20.9
Amortization		(9.6	)		7.8			(14.0	)		(14.0	)		(13.4	)		(19.6	)		(17.1	)		(19.7	)		(17.3	)
Included in Income from Operations		15.4			30.8			9.6			8.9			10.7			4.2			10.2			1.4			3.6
Balance at end-of-quarter	$	252.2		$	283.1		$	292.7		$	301.5		$	312.2		$	316.4		$	326.6		$	327.9		$	331.5
*First quarter of 2004 reflects the DAC unlocking resulting from the implementation of SOP 03-1.
** Included in Insurance and Investment Contract Liabilities on the Balance Sheet

6/30/2005											PAGE 23
Life Insurance Segment
Operational Data
Unaudited [Millions of Dollars]
											YTD		YTD
											Jun		Jun
For the Year Ended December 31	2000		2001		2002		2003		2004		2004		2005
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard (1)	$	195.1	$	184.7	$	356.9	$	417.0	$	401.1	$	196.4	$	191.1
MoneyGuard		94.1		107.9		138.4		224.7		244.5		117.3		102.7
Total		289.3		292.7		495.3		641.6		645.6		313.6		293.9
Variable Universal Life (2)		218.7		228.6		134.5		79.4		84.8		40.2		49.8
Whole Life		22.4		26.3		30.3		34.4		41.2		18.4		16.1
Term		41.9		30.8		32.3		40.2		41.0		21.1		17.8
Total Retail		572.3		578.4		692.3		795.7		812.6		393.3		377.5
Corporate Owned Life Insurance (COLI)		87.0		47.3		88.1		125.6		73.7		24.1		35.0
Total	$	659.3	$	625.6	$	780.4	$	921.3	$	886.2	$	417.4	$	412.5
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	$	200.6	$	196.1	$	201.7	$	223.5	$	209.3	$	95.0	$	87.4
Lincoln Financial Distributors		444.7		413.0		556.3		631.9		623.7		304.4		303.3
Other*		14.0		16.6		22.4		65.8		53.2		18.1		21.8
Total by Distribution	$	659.3	$	625.6	$	780.4	$	921.3	$	886.2	$	417.4	$	412.5
Life Insurance In-Force (Billions)
Universal Life & Other	$	115.872	$	121.168	$	126.016	$	129.623	$	132.120		130.294	$	133.347
Term Insurance		100.130		113.226		127.880		151.717		172.459		162.953		180.659
Total Life Segment In-Force	$	216.002	$	234.394	$	253.896	$	281.340	$	304.579	$	293.247	$	314.005

For the Quarter Ended	Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun
	2002		2002		2003		2003		2003		2003		2004		2004		2004		2004		2005		2005
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard (1)	$	98.0	$	137.8	$	84.5	$	93.8	$	114.2	$	124.5	$	95.7	$	100.7	$	90.1	$	114.5	$	87.1	$	104.1
MoneyGuard		34.9		39.3		46.3		48.9		58.2		71.4		56.2		61.1		60.7		66.6		49.4		53.4
Total		132.9		177.1		130.8		142.7		172.3		195.9		151.9		161.8		150.8		181.1		136.4		157.4
Variable Universal Life (2)		26.1		27.0		24.4		14.1		16.6		24.4		22.5		17.7		17.2		27.5		25.9		23.8
Whole Life		7.7		11.0		6.5		7.1		8.5		12.3		10.8		7.6		9.7		13.1		7.8		8.3
Term		7.3		8.1		9.1		9.6		10.5		10.9		10.5		10.6		10.4		9.4		9.2		8.6
Total Retail		174.0		223.2		170.7		173.5		208.0		243.5		195.6		197.8		188.1		231.2		179.3		198.1
Corporate Owned Life Insurance (COLI)		7.8		26.8		10.6		61.8		23.7		29.6		14.2		9.9		29.2		20.4		24.8		10.2
Total	$	181.8	$	249.9	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5	$	204.1	$	208.4
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	$	46.9	$	64.9	$	42.1	$	46.8	$	66.2	$	68.5	$	47.7		47.2	$	48.2	$	66.1	$	43.1	$	44.3
Lincoln Financial Distributors		132.7		171.1		131.7		148.3		156.8		195.2		151.4		152.9		152.0		167.4		149.7		153.5
Other*		2.2		13.9		7.5		40.2		8.7		9.4		10.6		7.5		17.1		18.0		11.3		10.6
Total by Distribution	$	181.8	$	249.9	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5	$	204.1	$	208.4
Insurance In-Force (Billions)
Universal Life & Other	$	124.085	$	126.016	$	126.414	$	127.276	$	127.855	$	129.623	$	129.669	$	130.294	$	130.989	$	132.120	$	132.436	$	133.347
Term Insurance		123.945		127.880		133.251		139.191		145.480		151.717		157.338		162.953		167.979		172.459		176.541		180.659
Total Segment In-Force	$	248.030	$	253.896	$	259.666	$	266.467	$	273.335	$	281.340	$	287.007	$	293.247	$	298.967	$	304.579	$	308.976	$	314.005
*Other consists of distribution arrangements with third-party intermediaries.
(1) First year premiums for universal life (excluding Moneyguard) with secondary guarantees comprised 94% and 92% of first year premiums for the second quarter and first six months of 2005.
(2) First year premiums for variable universal life with secondary guarantees comprised 28% and 31% of first year premiums for the second quarter and first six months of 2005 .

6/30/2005																PAGE 24
Life Insurance Segment
Life Insurance Account Value Rollforward
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Universal Life-Bal Beg-of-Year	$	6.650		$	6.976		$	7.508		$	8.211		$	9.030		$	9.030		$	9.648
Deposits		0.955			1.043			1.332			1.532			1.433			0.687			0.655
Withdrawals & deaths		(0.426	)		(0.319	)		(0.426	)		(0.437	)		(0.474	)		(0.245	)		(0.215	)
Net flows		0.528			0.724			0.906			1.095			0.959			0.442			0.440
Policyholder assessments		(0.584	)		(0.598	)		(0.648	)		(0.702	)		(0.753	)		(0.369	)		(0.391	)
Interest credited		0.382			0.405			0.428			0.427			0.413			0.205			0.206
Acq of new business/transfers between segments								0.018
Universal Life-Bal End of Year (1)	$	6.976		$	7.508		$	8.211		$	9.030		$	9.648		$	9.308		$	9.902
Variable Universal Life-Bal Beg-of-Year	$	1.605		$	1.808		$	1.746		$	1.690		$	2.195		$	2.195		$	2.520
Deposits		0.607			0.584			0.504			0.448			0.560			0.213			0.261
Withdrawals & deaths		(0.132	)		(0.251	)		(0.193	)		(0.208	)		(0.315	)		(0.116	)		(0.131	)
Net flows		0.475			0.332			0.311			0.240			0.245			0.098			0.130
Policyholder assessments		(0.141	)		(0.170	)		(0.186	)		(0.191	)		(0.194	)		(0.096	)		(0.098	)
Invest inc & chg in mkt value		(0.130	)		(0.225	)		(0.313	)		0.457			0.273			0.080			0.035
Acq of new business/transfers between segments								0.132
Variable Universal Life -Bal end of year	$	1.808		$	1.746		$	1.690		$	2.195		$	2.520		$	2.277		$	2.587
Interest Sensitive Whole Life - Bal Beg-of-Year	$	1.963		$	2.062		$	2.123		$	2.186		$	2.195		$	2.195		$	2.214
Deposits		0.322			0.307			0.301			0.279			0.250			0.108			0.123
Withdrawals & deaths		(0.168	)		(0.200	)		(0.199	)		(0.236	)		(0.207	)		(0.110	)		(0.124	)
Net flows		0.154			0.107			0.103			0.043			0.043			(0.001	)		(0.000	)
Policyholder assessments		(0.168	)		(0.164	)		(0.167	)		(0.159	)		(0.149	)		(0.072	)		(0.088	)
Interest credited		0.113			0.118			0.127			0.125			0.126			0.063			0.076
Int Sensitive Whole Life-Bal End -of -Year	$	2.062		$	2.123		$	2.186		$	2.195		$	2.214		$	2.185		$	2.202
Total Segment- Life Insurance Account Values
Bal Beg-of-Year	$	10.217		$	10.847		$	11.377		$	12.086		$	13.420		$	13.420		$	14.382
Deposits		1.884			1.934			2.138			2.259			2.243			1.009			1.039
Withdrawals & deaths		(0.727	)		(0.771	)		(0.818	)		(0.881	)		(0.996	)		(0.470	)		(0.470	)
Net flows		1.158			1.163			1.320			1.377			1.247			0.539			0.569
Policyholder assessments		(0.893	)		(0.931	)		(1.002	)		(1.053	)		(1.096	)		(0.537	)		(0.577	)
Invest inc & change in market value		0.364			0.299			0.241			1.009			0.812			0.349			0.317
Acq of new business/transfers between segments								0.150
Total Segment -Bal end of year	$	10.847		$	11.377		$	12.086		$	13.420		$	14.382		$	13.770		$	14.691
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)(4)					7.63	%		7.30	%		6.97	%		6.67	%		6.78	%		6.34	%
Interest Credited to Policyholders					5.86	%		5.77	%		5.36	%		4.85	%		4.91	%		4.70	%
Spread (3)(4)					1.77	%		1.53	%		1.61	%		1.81	%		1.87	%		1.64	%
Traditional Products
Net Investment Income (3)(4)					7.49	%		7.42	%		6.99	%		6.90	%		6.96	%		6.46	%
(1) Includes fixed investment option of VUL products.
(2) Interest Sensitive Products - For the life 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 life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of year ends 2001, 2002, 2003, and 2004, interest sensitive products represented 86%, 87%, 88%, and 88%, respectively, of total interest sensitive and traditional non-par earning assets.
(3) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread for interest sensitive products was 20 bps in 2004, 3 bps in 2003, 4 bps in 2002, and 6 bps in 2001. The impact for traditional products was 18 bps in 2004, 6 bps in 2003, 5 bps in 2002, and 13 bps in 2001. For the first six months of 2004, the impact was 20 bps and in the first six months of 2005 the impact was 6 bps.
(4) 2004 includes income from contingent interest received, which contributed $6.5 million to net investment income or 6 bps to the yield and spread on Interest Sensitive Products and $2.4 million to net investment income or 17 bps to the yield and spread on Traditional Products.

6/30/2005																												PAGE 25
Life Insurance Segment
Life Insurance Account Value Roll Forward
Unaudited [Billions of Dollars]
	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Universal Life-Bal Beg-of-Quarter	$	7.838		$	7.987		$	8.211		$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444		$	9.648		$	9.764
Deposits		0.310			0.410			0.316			0.350			0.426			0.440			0.342			0.345			0.333			0.413			0.321			0.333
Withdrawals & deaths		(0.108	)		(0.125	)		(0.107	)		(0.101	)		(0.117	)		(0.113	)		(0.117	)		(0.128	)		(0.112	)		(0.117	)		(0.115	)		(0.101	)
Net flows		0.201			0.286			0.210			0.249			0.309			0.327			0.225			0.217			0.221			0.296			0.207			0.233
Policyholder assessments		(0.162	)		(0.170	)		(0.168	)		(0.171	)		(0.178	)		(0.185	)		(0.183	)		(0.187	)		(0.188	)		(0.196	)		(0.194	)		(0.198	)
Interest credited		0.110			0.108			0.106			0.106			0.108			0.106			0.103			0.102			0.103			0.105			0.103			0.103
Universal Life-Bal End-of-Quarter (1)	$	7.987		$	8.211		$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444		$	9.648		$	9.764		$	9.902
Variable Universal Life-Bal Beg of Quarter	$	1.776		$	1.575		$	1.690		$	1.689		$	1.930		$	1.991		$	2.195		$	2.249		$	2.277		$	2.275		$	2.520		$	2.500
Deposits		0.102			0.126			0.118			0.114			0.093			0.123			0.106			0.108			0.156			0.192			0.130			0.131
Withdrawals & deaths		(0.034	)		(0.047	)		(0.036	)		(0.050	)		(0.048	)		(0.074	)		(0.073	)		(0.042	)		(0.089	)		(0.111	)		(0.069	)		(0.062	)
Net flows		0.068			0.079			0.082			0.064			0.045			0.049			0.032			0.066			0.067			0.081			0.061			0.068
Policyholder assessments		(0.046	)		(0.047	)		(0.049	)		(0.048	)		(0.046	)		(0.049	)		(0.048	)		(0.048	)		(0.048	)		(0.050	)		(0.049	)		(0.049	)
Invest inc & chg in mkt value		(0.224	)		0.083			(0.034	)		0.225			0.062			0.204			0.070			0.011			(0.021	)		0.214			(0.031	)		0.067
Variable Universal Life -Bal End-of-Quarter	$	1.575		$	1.690		$	1.689		$	1.930		$	1.991		$	2.195		$	2.249		$	2.277		$	2.275		$	2.520		$	2.500		$	2.587
Interest Sensitive Whole Life - Bal Beg-of-Quarter	$	2.145		$	2.164		$	2.186		$	2.185		$	2.191		$	2.185		$	2.195		$	2.182		$	2.185		$	2.193		$	2.214		$	2.201
Deposits		0.073			0.100			0.051			0.062			0.067			0.098			0.054			0.055			0.059			0.082			0.061			0.062
Withdrawals & deaths		(0.045	)		(0.063	)		(0.046	)		(0.050	)		(0.066	)		(0.073	)		(0.063	)		(0.047	)		(0.047	)		(0.050	)		(0.068	)		(0.055	)
Net flows		0.027			0.037			0.005			0.012			0.001			0.026			(0.009	)		0.008			0.012			0.032			(0.007	)		0.007
Policyholder assessments		(0.040	)		(0.046	)		(0.036	)		(0.038	)		(0.039	)		(0.047	)		(0.036	)		(0.036	)		(0.036	)		(0.041	)		(0.045	)		(0.043	)
Interest credited		0.031			0.031			0.030			0.032			0.032			0.031			0.032			0.031			0.032			0.030			0.039			0.037
Int Sensitive Whole Life-Bal End-of-Quarter	$	2.164		$	2.186		$	2.185		$	2.191		$	2.185		$	2.195		$	2.182		$	2.185		$	2.193		$	2.214		$	2.201		$	2.202
Total Segment- Life Insurance Account Values
Bal Beg-of-Quarter	$	11.759		$	11.726		$	12.086		$	12.233		$	12.663		$	12.958		$	13.420		$	13.606		$	13.770		$	13.912		$	14.382		$	14.466
Deposits		0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512			0.527
Withdrawals & deaths		(0.187	)		(0.234	)		(0.190	)		(0.202	)		(0.231	)		(0.259	)		(0.254	)		(0.217	)		(0.248	)		(0.278	)		(0.252	)		(0.218	)
Net flows		0.297			0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408			0.260			0.309
Policyholder assessments		(0.248	)		(0.263	)		(0.252	)		(0.257	)		(0.262	)		(0.280	)		(0.267	)		(0.271	)		(0.272	)		(0.287	)		(0.287	)		(0.290	)
Invest inc & change in market value		(0.082	)		0.222			0.103			0.363			0.202			0.341			0.205			0.145			0.114			0.348			0.111			0.206
Total Segment -Bal End-of-Quarter	$	11.726		$	12.086		$	12.233		$	12.663		$	12.958		$	13.420		$	13.606		$	13.770		$	13.912		$	14.382		$	14.466		$	14.691
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)(4)		7.26	%		7.15	%		7.21	%		7.09	%		6.90	%		6.73	%		6.84	%		6.70	%		6.62	%		6.50	%		6.32	%		6.35	%
Interest Credited to Policyholders		5.82	%		5.63	%		5.56	%		5.43	%		5.37	%		5.12	%		4.97	%		4.89	%		4.79	%		4.80	%		4.75	%		4.65	%
Spread (3)(4)		1.44	%		1.52	%		1.65	%		1.65	%		1.53	%		1.61	%		1.87	%		1.81	%		1.83	%		1.69	%		1.57	%		1.71	%
Traditional Products
Net Investment Income (3)(4)		7.58	%		7.28	%		7.16	%		7.13	%		6.99	%		6.72	%		7.33	%		6.61	%		6.97	%		6.60	%		6.43	%		6.50	%
(1) Includes fixed investment option of VUL products.
(2) Interest Sensitive Products - For the life 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 life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of June 30, 2005, interest sensitive products represented 88% of total interest sensitive and traditional non-par earning assets.
(3) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread for interest sensitive products was 12 bps in the 2nd quarter of 2005, 0 bps in the 1st quarter of 2005, 13 bps in the 4th quarter of 2004, 29 bps in the 3rd quarter of 2004, 32 bps in the 2nd quarter of 2004, 7 bps in the 1st quarter of 2004, and 1 bp in the 4th quarter of 2003. There was an impact on traditional products of 12 bps in the 2nd quarter of 2005, 5 bps in the 1st quarter of 2005, 7 bps in the 4th quarter of 2004, 59 bps in the 3rd quarter of 2004, 5 bps in the 2nd quarter of 2004, 0 bps in the 1st quarter of 2004, and 10 bps during the 4th quarter of 2003.
(4) First quarter 2004 includes income from contingent interest received, which contributed $6.5 million to net investment income or 25 bps to the yield and spread on Interest Sensitive Products and $2.4 million to net investment income or 72 bps to the yield and spread on Traditional Products.

6/30/2005																PAGE 26
Investment Management
Income Statements
Unaudited [Millions of Dollars]
																YTD			YTD
																Jun			Jun
For the Year Ended December 31	2000			2001			2002			2003			2004			2004			2005
Operating Revenue
Investment advisory fees - External	$	231.6		$	197.2		$	183.3		$	205.0		$	252.5		$	129.2		$	126.3
Investment advisory fees - Insurance-related Assets		112.4			105.0			97.7			101.2			105.8			52.6			49.4
Other revenue and fees		61.2			51.7			46.5			72.8			66.2			35.8			31.0
Surrender charges		2.8			2.2			2.4			2.3			1.9			1.0			1.2
Expense assessments		52.0			45.3			38.1			42.8			56.8			28.8			33.4
Net investment income		57.7			53.6			50.5			49.9			51.7			26.8			27.0
Operating Revenue		517.6			454.9			418.5			474.0			534.9			274.2			268.3
Operating Expenses
Interest credited to policy bal.		40.5			38.7			31.3			26.4			26.9			13.2			13.8
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		32.1			31.6			35.5			42.2			53.0			28.4			25.1
Operating and administrative expenses		361.6			344.6			335.5			368.7			392.9			194.7			207.9
DAC deferral net of amortization		(9.3	)		(4.7	)		(9.2	)		(22.8	)		(27.1	)		(13.7	)		(6.0	)
Taxes, licenses and fees		11.6			16.8			13.0			10.3			17.0			9.4			7.9
Subtotal		396.0			388.2			374.9			398.4			435.8			218.8			235.0
Other intangibles amortization		16.3			10.8			8.2			7.9			9.7			3.9			3.9
Total underwriting, acquisition,
insurance and other expenses		412.3			399.0			383.2			406.3			445.5			222.7			238.8
Goodwill amortization		16.2			16.2
Total Operating Expenses		469.0			454.0			414.4			432.7			472.5			236.0			252.6
Operating income before federal taxes		48.6			0.9			4.1			41.3			62.4			38.2			15.7
Federal income taxes		23.6			7.0			2.2			6.8			18.9			12.3			4.5
Income from Operations	$	25.0			($6.1	)	$	1.8		$	34.5		$	43.6		$	25.9		$	11.2
Average Capital (Securities at Cost)	$	582.0		$	557.0		$	581.2		$	602.4		$	610.9		$	634.5		$	545.2
Return on average capital		4.3	%		(1.1	%)		0.3	%		5.7	%		7.1	%		8.2	%		4.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of year	$	73.5		$	81.1		$	85.6		$	90.8		$	91.8		$	91.8		$	120.4
Deferral		36.4			35.6			42.0			42.0			51.4			25.1			22.8
Amortization		(27.1	)		(30.8	)		(32.9	)		(19.2	)		(24.3	)		(11.3	)		(16.8	)
Included in Total Benefits and Expenses		9.3			4.7			9.2			22.8			27.1			13.7			6.0
Adjustment related to realized (gains) losses
on available-for-sale securities		0.7			1.6			2.3			0.5			(1.3	)		(1.2	)		0.4
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(2.4	)		(1.8	)		(6.3	)		(22.2	)		2.7			15.8			(0.1	)
Balance at end of period	$	81.1		$	85.6		$	90.8		$	91.8		$	120.4		$	120.1		$	126.7
Certain reclassifications have been made to present financial information for the Investment Management segment's 401(k) Director product on a basis consistent with the reporting for similar products in the Retirement and Life Insurance segments.

6/30/2005																									PAGE 27
Investment Management
Income Statements
Unaudited [Millions of Dollars]
For the Quarter Ended	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2003			2003			2003			2004			2004			2004			2004			2005			2005
Operating Revenue
Investment advisory fees - External	$	49.4		$	53.2		$	58.3		$	62.7		$	66.4		$	67.4		$	56.0		$	59.4		$	66.9
Investment advisory fees - Insurance-related Assets		25.4			25.5			26.2			26.5			26.1			26.4			26.8			24.8			24.6
Other revenue and fees		18.4			18.9			23.7			19.1			16.7			13.7			16.7			16.0			14.9
Surrender charges		0.4			0.5			0.7			0.5			0.5			0.4			0.5			0.7			0.5
Expense assessments		10.6			10.2			12.4			14.1			14.7			12.5			15.5			16.6			16.8
Net investment income		12.1			13.2			12.5			12.2			14.6			12.7			12.3			12.9			14.2
Operating Revenue		116.3			121.4			133.8			135.2			139.0			133.0			127.7			130.4			138.0
Operating Expenses
Interest credited to policy bal.		6.6			6.6			6.6			6.6			6.7			6.9			6.8			6.8			7.0
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		9.9			10.4			12.0			14.0			14.4			12.9			11.7			13.3			11.8
Operating and administrative expenses		93.0			92.7			99.1			96.1			98.5			98.1			100.2			96.4			111.5
DAC deferral net of amortization		(5.1	)		(8.0	)		(4.4	)		(5.6	)		(8.1	)		(9.5	)		(3.9	)		(3.3	)		(2.7	)
Taxes, licenses and fees		2.8			2.4			2.1			3.9			5.5			4.6			3.1			4.4			3.6
Subtotal		100.7			97.4			108.7			108.5			110.3			106.0			111.0			110.9			124.1
Other intangibles amortization		2.0			2.0			2.0			2.0			2.0			2.0			3.8			1.9			1.9
Total underwriting, acquisition,
insurance and other expenses		102.6			99.4			110.7			110.4			112.3			108.0			114.8			112.8			126.0
Total Operating Expenses		109.2			106.0			117.3			117.0			118.9			114.8			121.7			119.6			133.0
Operating income before federal taxes		7.1			15.4			16.4			18.2			20.1			18.2			6.0			10.7			5.0
Federal income taxes		2.6			5.8			(2.6	)		5.6			6.7			5.7			0.8			3.3			1.2
Income from Operations	$	4.5		$	9.7		$	19.0		$	12.5		$	13.4		$	12.5		$	5.2		$	7.4		$	3.9
Average Capital (Securities at Cost)	$	588.6		$	600.4		$	623.0		$	634.2		$	634.8		$	627.2		$	547.3		$	548.0		$	542.5
Return on average capital		3.1	%		6.4	%		12.2	%		7.9	%		8.4	%		8.0	%		3.8	%		5.4	%		2.8	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of year	$	79.5		$	65.5		$	81.9		$	91.8		$	84.2		$	120.1		$	115.3		$	120.4		$	133.8
Deferral		9.0			13.9			10.2			11.7			13.4			12.5			13.8			12.2			10.6
Amortization		(4.0	)		(5.9	)		(5.8	)		(6.1	)		(5.3	)		(3.0	)		(10.0	)		(8.9	)		(7.8	)
Included in Total Benefits and Expenses		5.1			8.0			4.4			5.6			8.1			9.5			3.9			3.3			2.7
Adjustment related to realized (gains) losses
on available-for-sale securities		0.7			(1.1	)		(0.2	)		(3.6	)		2.4			0.4			(0.5	)		0.4			(0.0	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(19.8	)		9.5			5.7			(9.6	)		25.4			(14.8	)		1.7			9.8			(9.9	)
Balance at end-of-quarter	$	65.5		$	81.9		$	91.8		$	84.2		$	120.1		$	115.3		$	120.4		$	133.8		$	126.7
Certain reclassifications have been made to present financial information for the Investment Management segment's 401(k) Director product on a basis consistent with the reporting for similar products in the Retirement and Life Insurance segments.

6/30/2005																			PAGE 28
Investment Management
Assets Under Management Rollforward
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Retail Fixed - Bal Beg-of-Period	$	7.422		$	6.605		$	7.118		$	7.631		$	8.186		$	8.186		$	8.257
Fund Sales		0.769			0.876			1.218			1.792			1.882			0.965			1.221
Redemptions		(1.401	)		(1.051	)		(1.182	)		(1.442	)		(1.520	)		(0.880	)		(0.698	)
Net Money Market		(0.207	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.024	)		(0.041	)
Transfers		(0.168	)		0.405			0.206			(0.168	)		(0.212	)		(0.053	)		(0.003	)
Net Flows		(1.007	)		0.184			0.192			0.154			0.037			0.007			0.480
Market		0.096			0.330			0.321			0.401			0.290			(0.042	)		0.088
Transfer of Assets Under Administration(1)		0.094												(0.256	)					(0.001	)
Balance end of period	$	6.605		$	7.118		$	7.631		$	8.186		$	8.257		$	8.152		$	8.823
Retail Equity - Bal Beg-of-Period	$	23.384		$	21.525		$	17.990		$	14.917		$	20.887		$	20.887		$	26.130
Fund Sales		4.117			2.817			4.477			3.791			7.110			3.603			6.194
Redemptions		(4.431	)		(2.838	)		(3.690	)		(2.830	)		(4.054	)		(2.020	)		(2.630	)
Net Money Market		0.001
Transfers		(0.178	)		(0.538	)		(0.173	)		0.156			0.042			(0.005	)		(0.134	)
Net Flows		(0.492	)		(0.560	)		0.614			1.117			3.099			1.578			3.431
Market		(1.709	)		(2.975	)		(3.688	)		4.854			3.256			0.758			0.339
Sale of subsidiary/Transfer of Assets Under
Administration (1) (2)		0.342												(1.112	)					(0.003	)
Balance at end of period	$	21.525		$	17.990		$	14.917		$	20.887		$	26.130		$	23.223		$	29.898
Total Retail - Bal Beg-of-Period	$	30.807		$	28.129		$	25.108		$	22.547		$	29.073		$	29.073		$	34.387
Retail Sales-Annuities		1.782			1.701			2.751			2.151			2.757			1.420			1.390
Retail Sales-Mutual Funds		2.577			1.523			1.829			2.315			3.235			1.634			2.591
Retail Sales-Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999			1.514			3.433
Total Retail Sales		4.885			3.693			5.695			5.583			8.992			4.568			7.415
Redemptions		(5.832	)		(3.889	)		(4.873	)		(4.272	)		(5.574	)		(2.900	)		(3.328	)
Net Money Market		(0.206	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.024	)		(0.041	)
Transfers		(0.346	)		(0.133	)		0.033			(0.012	)		(0.170	)		(0.059	)		(0.136	)
Net Flows		(1.500	)		(0.375	)		0.806			1.271			3.136			1.585			3.910
Market		(1.613	)		(2.646	)		(3.366	)		5.255			3.546			0.717			0.427
Sale of subsidiary/Transfer of Assets Under
Administration (1) (2)		0.435												(1.368	)					(0.004	)
Balance at end of period(1) (2)	$	28.129		$	25.108		$	22.547		$	29.073		$	34.387		$	31.375		$	38.720
Institutional Fixed - Bal Beg-of-Period	$	6.936		$	6.111		$	5.489		$	7.237		$	8.399		$	8.399		$	9.960
Inflows		0.771			0.643			2.281			1.937			5.134			2.087			2.500
Withdrawals/Terminations		(1.973	)		(1.229	)		(1.146	)		(1.226	)		(0.593	)		(0.353	)		(0.872	)
Transfers		(0.005	)		0.017			0.004			0.005			0.009			0.007			0.001
Net Flows (2)		(1.207	)		(0.569	)		1.139			0.716			4.549			1.741			1.629
Market		0.382			(0.053	)		0.608			0.447			0.135			(0.234	)		0.179
Sale of Subsidiary (2)														(3.124	)
Balance at end of period (2)	$	6.111		$	5.489		$	7.237		$	8.399		$	9.960		$	9.906		$	11.769
Institutional Equity - Bal Beg-of-Period	$	23.632		$	19.114		$	17.815		$	16.711		$	25.322		$	25.322		$	11.682
Inflows		2.730			3.183			2.913			3.922			6.155			3.867			5.138
Withdrawals/Terminations		(7.209	)		(2.879	)		(1.991	)		(2.178	)		(3.583	)		(1.923	)		(1.473	)
Transfers		(0.008	)		0.035			0.045			0.018			0.057			0.018			0.030
Net Flows		(4.486	)		0.338			0.967			1.762			2.629			1.962			3.696
Market		(0.031	)		(1.637	)		(2.071	)		6.849			2.394			1.078			0.096
Sale of Subsidiary (2)														(18.664	)
Balance at end of period	$	19.114		$	17.815		$	16.711		$	25.322		$	11.682		$	28.362		$	15.474
Total Institutional - Bal Beg-of-Period	$	30.568		$	25.225		$	23.305		$	23.948		$	33.722		$	33.722		$	21.643
Inflows		3.501			3.826			5.194			5.859			11.289			5.954			7.639
Withdrawals/Terminations		(9.182	)		(4.109	)		(3.137	)		(3.404	)		(4.176	)		(2.275	)		(2.345	)
Transfers		(0.013	)		0.052			0.050			0.023			0.066			0.025			0.031
Net Flows		(5.693	)		(0.231	)		2.106			2.478			7.178			3.703			5.325
Market		0.351			(1.690	)		(1.463	)		7.296			2.530			0.843			0.275
Sale of Subsidiary (2)														(21.787	)
Balance at end of period	$	25.225		$	23.305		$	23.948		$	33.722		$	21.643		$	38.268		$	27.243
Total Retail/Institutional - At end of period	$	53.355		$	48.412		$	46.495		$	62.794		$	56.029		$	69.643		$	65.963
Insurance-related Assets - At end of period	$	35.686		$	38.119		$	41.104		$	43.024		$	43.980		$	42.528		$	45.219
Total Retail/Inst - Net Flows		($7.193	)		($0.606	)	$	2.912		$	3.749		$	10.314		$	5.289		$	9.235
Total Assets Under Management
At end of period	$	89.041		$	86.531		$	87.599		$	105.818		$	100.009		$	112.172		$	111.182
Subadvised Assets, included in Assets Under Management above
Retail	$	4.250		$	3.330		$	2.460		$	3.750		$	10.740		$	4.290		$	13.712
Institutional		0.030			0.030			0.020			0.030			3.740			0.030			4.221
Total Subadvised Assets	$	4.280		$	3.360		$	2.480		$	3.780		$	14.480		$	4.320		$	17.933
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively.
(2) In the third quarter of 2004, the Investment Management segment sold its London-based international investment unit. Assets under management transferred as a result of the sale were $22.1 billion. See page 30A for assets under management without the London-based international investment unit. In addition, the London-based international investment unit began subadvising certain retail and institutional assets in the third quarter of 2004.

6/30/2005																			PAGE 28A
Investment Management (excluding Assets
Managed by Delaware's London-based International Investment Unit)
Assets Under Management Rollforward
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Retail Fixed - Bal Beg-of-Period	$	7.422		$	6.605		$	7.118		$	7.631		$	8.186		$	8.186		$	8.257
Fund Sales		0.769			0.876			1.218			1.792			1.882			0.965			1.221
Redemptions		(1.401	)		(1.051	)		(1.182	)		(1.442	)		(1.520	)		(0.880	)		(0.698	)
Net Money Market		(0.207	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.024	)		(0.041	)
Transfers		(0.168	)		0.405			0.206			(0.168	)		(0.212	)		(0.053	)		(0.003	)
Net Flows		(1.007	)		0.184			0.192			0.154			0.037			0.007			0.480
Market		0.096			0.330			0.321			0.401			0.290			(0.042	)		0.088
Transfer of Assets Under Administration (1)		0.094												(0.256	)					(0.001	)
Balance end of period	$	6.605		$	7.118		$	7.631		$	8.186		$	8.257		$	8.152		$	8.823
Retail Equity - Bal Beg-of-Period	$	23.384		$	21.525		$	17.990		$	14.624		$	20.564		$	20.564		$	26.130
Fund Sales		4.117			2.817			4.182			3.780			7.105			3.600			6.194
Redemptions		(4.431	)		(2.838	)		(3.684	)		(2.765	)		(4.024	)		(1.997	)		(2.630	)
Transfers		(0.178	)		(0.538	)		(0.173	)		0.156			0.042			(0.005	)		(0.134	)
Net Flows		(0.492	)		(0.560	)		0.325			1.171			3.123			1.597			3.431
Market		(1.709	)		(2.975	)		(3.691	)		4.769			3.236			0.745			0.339
Transfer of Assets Under Administration (1)		0.342												(0.793	)					(0.003	)
Balance at end of period	$	21.525		$	17.990		$	14.624		$	20.564		$	26.130		$	22.906		$	29.898
Total Retail - Bal Beg-of-Period	$	30.807		$	28.129		$	25.108		$	22.255		$	28.750		$	28.750		$	34.387
Retail Sales-Annuities		1.782			1.701			2.456			2.140			2.752			1.417			1.390
Retail Sales-Mutual Funds		2.577			1.523			1.829			2.315			3.235			1.634			2.591
Retail Sales-Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999			1.514			3.433
Total Retail Sales		4.885			3.693			5.399			5.572			8.987			4.564			7.415
Redemptions		(5.832	)		(3.889	)		(4.867	)		(4.207	)		(5.544	)		(2.878	)		(3.328	)
Net Money Market		(0.206	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)		(0.024	)		(0.041	)
Transfers		(0.346	)		(0.133	)		0.033			(0.012	)		(0.170	)		(0.059	)		(0.136	)
Net Flows		(1.500	)		(0.375	)		0.517			1.325			3.160			1.604			3.911
Market		(1.613	)		(2.646	)		(3.370	)		5.171			3.526			0.703			0.427
Transfer of Assets Under Administration (1)		0.435												(1.049	)					(0.004	)
Balance at end of period	$	28.129		$	25.108		$	22.255		$	28.750		$	34.387		$	31.057		$	38.721
Institutional Fixed - Bal Beg-of-Period	$	4.013		$	3.590		$	3.377		$	5.147		$	5.981		$	5.981		$	9.960
Inflows		0.455			0.388			2.177			1.540			4.356			1.431			2.500
Withdrawals/Terminations		(1.248	)		(0.586	)		(0.541	)		(0.635	)		(0.452	)		(0.247	)		(0.872	)
Transfers		(0.005	)		0.017			0.004			(0.126	)		0.009			0.007			0.001
Net Flows		(0.798	)		(0.181	)		1.640			0.779			3.913			1.190			1.629
Market		0.375			(0.032	)		0.130			0.055			0.067			(0.192	)		0.179
Balance at end of period	$	3.590		$	3.377		$	5.147		$	5.981		$	9.960		$	6.980		$	11.769
Institutional Equity - Bal Beg-of-Period	$	13.909		$	9.664		$	8.186		$	7.201		$	10.318		$	10.318		$	11.682
Inflows		1.469			1.555			1.532			1.780			2.281			1.147			5.138
Withdrawals/Terminations		(5.784	)		(2.334	)		(1.333	)		(1.161	)		(2.428	)		(1.460	)		(1.473	)
Transfers		(0.008	)		0.035			0.045			0.034			0.118			0.061			0.030
Net Flows		(4.323	)		(0.744	)		0.245			0.653			(0.029	)		(0.252	)		3.696
Market		0.078			(0.735	)		(1.229	)		2.463			1.393			0.369			0.096
Balance at end of period	$	9.664		$	8.185		$	7.201		$	10.318		$	11.682		$	10.435		$	15.474
Total Institutional - Bal Beg-of-Period	$	17.923		$	13.255		$	11.563		$	12.348		$	16.299		$	16.299		$	21.643
Inflows		1.924			1.943			3.709			3.320			6.637			2.578			7.639
Withdrawals/Terminations		(7.032	)		(2.920	)		(1.874	)		(1.796	)		(2.880	)		(1.707	)		(2.345	)
Transfers		(0.013	)		0.052			0.050			(0.092	)		0.127			0.068			0.031
Net Flows		(5.120	)		(0.925	)		1.885			1.433			3.884			0.938			5.325
Market		0.453			(0.767	)		(1.099	)		2.518			1.459			0.177			0.275
Balance at end of period	$	13.255		$	11.562		$	12.348		$	16.299		$	21.643		$	17.414		$	27.243
Total Retail/Institutional - At end of period	$	41.384		$	36.670		$	34.603		$	45.049		$	56.029		$	48.472		$	65.964
Insurance-related Assets - At end of period	$	35.686		$	38.119		$	41.104		$	43.024		$	43.980		$	42.528		$	45.219
Total Retail/Inst - Net Flows		($6.620	)		($1.301	)	$	2.402		$	2.757		$	7.045		$	2.543		$	9.236
Total Assets Under Management
At end of period	$	77.070		$	74.789		$	75.707		$	88.072		$	100.009		$	91.000		$	111.183
Subadvised Assets, included in Assets Under Management above
Retail	$	4.250		$	3.330		$	2.460		$	3.750		$	10.740		$	4.290		$	13.712
Institutional		0.030			0.030			0.020			0.030			3.740		$	0.030		$	4.221
Total Subadvised Assets	$	4.280		$	3.360		$	2.480		$	3.780		$	14.480		$	4.320		$	17.933
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively.
(2) This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

6/30/2005																																		PAGE 29
Investment Management
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]
	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Retail Fixed - Bal-Beg-of-Qtr	$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501
Fund Sales		0.325			0.328			0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493			0.608			0.612
Redemptions		(0.277	)		(0.311	)		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)		(0.373	)		(0.325	)
Net Money Market		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)
Transfers		0.134			0.092			0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)		0.104			(0.107	)
Net Flows		0.174			0.074			0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134			0.314			0.166
Market		0.174			0.043			0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125			(0.068	)		0.156
Transfer of Assets Under Administration(1)																										(0.194	)		(0.062	)		(0.001	)
Balance at End-of-Qtr	$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501		$	8.823
Retail Equity - Bal-Beg-of-Qtr	$	16.613		$	13.705		$	14.917		$	14.286		$	16.906		$	17.961		$	20.887		$	22.546		$	23.223		$	22.620		$	26.130		$	26.970
Fund Sales		1.140			1.345			0.717			0.813			1.051			1.210			1.938			1.666			1.480			2.026			2.773			3.421
Redemptions		(1.137	)		(0.881	)		(0.803	)		(0.612	)		(0.706	)		(0.710	)		(0.992	)		(1.028	)		(1.081	)		(0.953	)		(1.325	)		(1.305	)
Transfers		(0.128	)		(0.036	)		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)		(0.183	)		0.049
Net Flows		(0.126	)		0.428			(0.145	)		0.213			0.457			0.592			0.944			0.634			0.485			1.036			1.265			2.166
Market		(2.782	)		0.784			(0.486	)		2.408			0.598			2.334			0.715			0.044			(0.188	)		2.685			(0.423	)		0.763
Sale of Subsidiary/Transfer of Assets Under
Administration (1) (2)																										(0.901	)		(0.211	)		(0.003	)
Balance at End-of-Qtr	$	13.705		$	14.917		$	14.286		$	16.906		$	17.961		$	20.887		$	22.546		$	23.223		$	22.620		$	26.130		$	26.970		$	29.898
Total Retail - Bal-Beg-of-Qtr	$	23.779		$	21.219		$	22.547		$	22.193		$	25.096		$	26.044		$	29.073		$	30.859		$	31.375		$	30.680		$	34.387		$	35.471
Retail Sales-Annuities		0.756			0.806			0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737			0.735			0.655
Retail Sales-Mutual Funds		0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255
Retail Sales-Managed Acct. & Other		0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123
Total Retail Sales		1.465			1.673			1.141			1.282			1.494			1.666			2.451			2.117			1.905			2.519			3.381			4.034
Redemptions		(1.414	)		(1.192	)		(1.130	)		(0.930	)		(1.141	)		(1.071	)		(1.409	)		(1.491	)		(1.422	)		(1.252	)		(1.697	)		(1.630	)
Net Money Market		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)
Transfers		0.006			0.056			0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)		(0.079	)		(0.058	)
Net Flows		0.048			0.502			0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170			1.579			2.331
Market		(2.608	)		0.826			(0.369	)		2.601			0.578			2.444			0.818			(0.101	)		0.019			2.810			(0.491	)		0.919
Sale of Subsidiary/Transfer of Assets Under
Administration (1) (2)																										(1.095	)		(0.273	)		(0.004	)
Balance at End-of-Qtr	$	21.219		$	22.547		$	22.193		$	25.096		$	26.044		$	29.073		$	30.859		$	31.375		$	30.680		$	34.387		$	35.471		$	38.720
Institutional Fixed - Bal-Beg-of-Qtr	$	6.844		$	7.207		$	7.237		$	7.605		$	7.753		$	8.077		$	8.399		$	9.028		$	9.906		$	7.906		$	9.960		$	11.002
Inflows		0.530			0.283			0.592			0.126			0.556			0.663			0.806			1.281			0.947			2.100			1.211			1.289
Withdrawals/Terminations		(0.308	)		(0.438	)		(0.308	)		(0.188	)		(0.226	)		(0.503	)		(0.218	)		(0.135	)		(0.163	)		(0.077	)		(0.130	)		(0.742	)
Transfers		0.007			(0.002	)		0.002			0.003			(0.000	)		(0.000	)		0.005			0.002			0.001			0.001			0.000			0.001
Net Flows		0.229			(0.157	)		0.286			(0.059	)		0.330			0.160			0.593			1.148			0.784			2.024			1.082			0.548
Market		0.134			0.187			0.083			0.207			(0.006	)		0.163			0.036			(0.271	)		0.339			0.031			(0.040	)		0.219
Sale of Subsidiary (2)																										(3.124	)
Balance at End-of-Qtr	$	7.207		$	7.237		$	7.605		$	7.753		$	8.077		$	8.399		$	9.028		$	9.906		$	7.906		$	9.960		$	11.002		$	11.769
Institutional Equity - Bal-Beg-of-Qtr	$	18.120		$	14.937		$	16.711		$	15.920		$	19.607		$	21.008		$	25.322		$	27.188		$	28.362		$	10.490		$	11.682		$	11.549
Inflows		0.631			1.040			0.494			0.727			1.386			1.315			1.817			2.049			1.638			0.650			0.576			4.563
Withdrawals/Terminations		(0.523	)		(0.322	)		(0.459	)		(0.381	)		(0.921	)		(0.419	)		(0.762	)		(1.161	)		(1.053	)		(0.607	)		(0.473	)		(1.000	)
Transfers		0.011			0.010			0.008			0.002			0.003			0.005			0.012			0.006			0.010			0.029			0.033			(0.003	)
Net Flows		0.119			0.728			0.044			0.348			0.469			0.901			1.068			0.895			0.595			0.072			0.135			3.560
Market		(3.302	)		1.046			(0.835	)		3.339			0.932			3.413			0.798			0.280			0.196			1.120			(0.269	)		0.365
Sale of Subsidiary (2)																										(18.664	)
Balance at End-of-Qtr	$	14.937		$	16.711		$	15.920		$	19.607		$	21.008		$	25.322		$	27.188		$	28.362		$	10.490		$	11.682		$	11.549		$	15.474
Total Institutional - Bal-Beg-of-Qtr	$	24.963		$	22.143		$	23.948		$	23.526		$	27.360		$	29.085		$	33.722		$	36.216		$	38.268		$	18.396		$	21.643		$	22.551
Inflows		1.162			1.323			1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750			1.787			5.852
Withdrawals/Terminations		(0.831	)		(0.760	)		(0.767	)		(0.568	)		(1.147	)		(0.922	)		(0.980	)		(1.296	)		(1.216	)		(0.684	)		(0.603	)		(1.742	)
Transfers		0.017			0.008			0.010			0.005			0.003			0.005			0.017			0.008			0.011			0.030			0.033			(0.002	)
Net Flows		0.348			0.572			0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095			1.217			4.108
Market		(3.168	)		1.233			(0.752	)		3.546			0.926			3.576			0.834			0.009			0.535			1.151			(0.308	)		0.584
Sale of Subsidiary (2)																										(21.787	)
Balance at End-of-Qtr	$	22.143		$	23.948		$	23.526		$	27.360		$	29.085		$	33.722		$	36.216		$	38.268		$	18.396		$	21.643		$	22.551		$	27.243
Total Retail/Inst - At End-of-Qtr	$	43.362		$	46.495		$	45.718		$	52.456		$	55.129		$	62.794		$	67.075		$	69.643		$	49.076		$	56.029		$	58.022		$	65.963
Insurance-related Assets-End-of-Qtr	$	40.416		$	41.104		$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980		$	44.210		$	45.219
Total Retail/Inst - Net Flows	$	0.396		$	1.074		$	0.344		$	0.591		$	1.169		$	1.645		$	2.629		$	2.660		$	1.760		$	3.265		$	2.796		$	6.439
Total Assets Under Management
At End-of-Qtr	$	83.778		$	87.599		$	87.848		$	96.313		$	98.113		$	105.818		$	111.081		$	112.172		$	93.123		$	100.009		$	102.231		$	111.182
Subadvised Assets, included in Assets Under Management above
Retail	$	2.280		$	2.460		$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740		$	12.178		$	13.712
Institutional		0.020			0.020			0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740			3.921			4.221
Total Subadvised Assets	$	2.300		$	2.480		$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480		$	16.100		$	17.933
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively. Assets under administration were $0.0 billion at March 31, 2005.
(2) In the third quarter of 2004, the Investment Management segment sold its London-based international investment unit. Assets under management transferred as a result of the sale were $22.1 billion. See page 31A for assets under management without the London-based international investment unit. In addition, the London-based international investment unit began subadvising certain retail and institutional assets in the third quarter of 2004.

6/30/2005																															PAGE 29A
Investment Management (excluding Assets
Managed by Delaware's London-based International Investment Unit)
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]
	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Retail Fixed - Bal-Beg-of-Qtr	$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501
Fund Sales		0.325			0.328			0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493			0.608			0.612
Redemptions		(0.277	)		(0.311	)		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)		(0.373	)		(0.325	)
Net Money Market		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)
Transfers		0.134			0.092			0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)		0.104			(0.107	)
Net Flows		0.174			0.074			0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134			0.314			0.166
Market		0.174			0.043			0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125			(0.068	)		0.156
Transfer of Assets Under Administration (1)																										(0.194	)		(0.062	)		(0.001	)
Balance at End-of-Qtr	$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501		$	8.823
Retail Equity - Bal-Beg-of-Qtr	$	16.613		$	13.705		$	14.624		$	14.048		$	16.622		$	17.673		$	20.564		$	22.225		$	22.906		$	22.620		$	26.130		$	26.970
Fund Sales		1.140			1.050			0.712			0.812			1.048			1.208			1.936			1.664			1.478			2.026			2.773			3.421
Redemptions		(1.137	)		(0.875	)		(0.765	)		(0.608	)		(0.698	)		(0.694	)		(0.979	)		(1.019	)		(1.074	)		(0.953	)		(1.325	)		(1.305	)
Transfers		(0.128	)		(0.036	)		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)		(0.183	)		0.049
Net Flows		(0.126	)		0.139			(0.111	)		0.214			0.462			0.606			0.956			0.641			0.490			1.036			1.265			2.166
Market		(2.782	)		0.780			(0.465	)		2.359			0.589			2.285			0.706			0.039			(0.194	)		2.685			(0.423	)		0.763
Transfer of Assets Under Administration (1)																										(0.582	)		(0.211	)		(0.003	)
Balance at End-of-Qtr	$	13.705		$	14.624		$	14.048		$	16.622		$	17.673		$	20.564		$	22.225		$	22.906		$	22.620		$	26.130		$	26.970		$	29.898
Total Retail - Bal-Beg-of-Qtr	$	23.779		$	21.219		$	22.255		$	21.955		$	24.812		$	25.756		$	28.750		$	30.538		$	31.057		$	30.680		$	34.387		$	35.471
Retail Sales-Annuities		0.756			0.510			0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737			0.735			0.655
Retail Sales-Mutual Funds		0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255
Retail Sales-Managed Acct. & Other		0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123
Total Retail Sales		1.465			1.378			1.136			1.280			1.491			1.664			2.449			2.115			1.903			2.519			3.381			4.034
Redemptions		(1.414	)		(1.186	)		(1.092	)		(0.926	)		(1.133	)		(1.055	)		(1.396	)		(1.481	)		(1.415	)		(1.252	)		(1.697	)		(1.630	)
Net Money Market		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)		(0.015	)
Transfers		0.006			0.056			0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)		(0.079	)		(0.058	)
Net Flows		0.048			0.213			0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170			1.579			2.331
Market		(2.608	)		0.823			(0.347	)		2.552			0.569			2.396			0.808			(0.105	)		0.013			2.810			(0.491	)		0.919
Transfer of Assets Under Administration (1)																										(0.776	)		(0.273	)		(0.004	)
Balance at End-of-Qtr	$	21.219		$	22.255		$	21.955		$	24.812		$	25.756		$	28.750		$	30.538		$	31.057		$	30.680		$	34.387		$	35.471		$	38.720
Institutional Fixed - Bal-Beg-of-Qtr	$	4.653		$	5.010		$	5.147		$	5.530		$	5.481		$	5.834		$	5.981		$	6.501		$	6.980		$	7.906		$	9.960		$	11.002
Inflows		0.493			0.251			0.553			0.120			0.516			0.351			0.655			0.776			0.825			2.100			1.211			1.289
Withdrawals/Terminations		(0.196	)		(0.162	)		(0.158	)		(0.152	)		(0.089	)		(0.236	)		(0.138	)		(0.109	)		(0.127	)		(0.077	)		(0.130	)		(0.742	)
Transfers		0.007			(0.002	)		0.002			(0.099	)		(0.056	)		0.028			0.005			0.002			0.001			0.001			0.000			0.001
Net Flows		0.304			0.087			0.397			(0.132	)		0.371			0.143			0.521			0.669			0.699			2.024			1.082			0.548
Market		0.054			0.050			(0.013	)		0.083			(0.019	)		0.004			(0.001	)		(0.191	)		0.227			0.031			(0.040	)		0.219
Balance at End-of-Qtr	$	5.010		$	5.147		$	5.530		$	5.481		$	5.834		$	5.981		$	6.501		$	6.980		$	7.906		$	9.960		$	11.002		$	11.769
Institutional Equity - Bal-Beg-of-Qtr	$	7.419		$	6.116		$	7.201		$	7.041		$	8.462		$	8.826		$	10.318		$	10.713		$	10.435		$	10.490		$	11.682		$	11.549
Inflows		0.373			0.743			0.339			0.347			0.571			0.524			0.552			0.596			0.484			0.650			0.576			4.563
Withdrawals/Terminations		(0.351	)		(0.167	)		(0.182	)		(0.232	)		(0.516	)		(0.231	)		(0.501	)		(0.959	)		(0.361	)		(0.607	)		(0.473	)		(1.000	)
Transfers		0.011			0.010			0.008			0.002			0.003			0.021			(0.012	)		0.073			0.029			0.029			0.033			(0.003	)
Net Flows		0.033			0.586			0.165			0.116			0.059			0.314			0.038			(0.290	)		0.152			0.072			0.135			3.560
Market		(1.336	)		0.499			(0.326	)		1.305			0.305			1.178			0.357			0.012			(0.096	)		1.120			(0.269	)		0.365
Balance at End-of-Qtr	$	6.116		$	7.201		$	7.041		$	8.462		$	8.826		$	10.318		$	10.713		$	10.435		$	10.490		$	11.682		$	11.549		$	15.474
Total Institutional - Bal-Beg-of-Qtr	$	12.072		$	11.126		$	12.348		$	12.571		$	13.943		$	14.660		$	16.299		$	17.215		$	17.414		$	18.396		$	21.643		$	22.551
Inflows		0.866			0.994			0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750			1.787			5.852
Withdrawals/Terminations		(0.547	)		(0.328	)		(0.340	)		(0.385	)		(0.604	)		(0.466	)		(0.640	)		(1.068	)		(0.488	)		(0.684	)		(0.603	)		(1.742	)
Transfers		0.017			0.008			0.010			(0.098	)		(0.053	)		0.049			(0.007	)		0.075			0.030			0.030			0.033			(0.002	)
Net Flows		0.337			0.673			0.562			(0.016	)		0.430			0.457			0.560			0.379			0.851			2.095			1.217			4.108
Market		(1.282	)		0.548			(0.339	)		1.388			0.287			1.182			0.356			(0.179	)		0.131			1.151			(0.308	)		0.584
Balance at End-of-Qtr	$	11.126		$	12.348		$	12.571		$	13.943		$	14.660		$	16.299		$	17.215		$	17.414		$	18.396		$	21.643		$	22.551		$	27.243
Total Retail/Inst - At End-of-Qtr	$	32.345		$	34.602		$	34.527		$	38.755		$	40.416		$	45.049		$	47.753		$	48.471		$	49.076		$	56.029		$	58.022		$	65.963
Insurance-related Assets-End-of-Qtr	$	40.416		$	41.104		$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980		$	44.210		$	45.219
Total Retail/Inst - Net Flows	$	0.385		$	0.886		$	0.610		$	0.288		$	0.805		$	1.055		$	1.540		$	1.003		$	1.236		$	3.265		$	2.796		$	6.439
Total Assets Under Management
At End-of-Qtr	$	72.761		$	75.706		$	76.656		$	82.612		$	83.400		$	88.072		$	91.759		$	91.000		$	93.123		$	100.009		$	102.231		$	111.182
Subadvised Assets, included in Assets Under Management above
Retail	$	2.280		$	2.460		$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740		$	12.178		$	13.712
Institutional		0.020			0.020			0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740			3.921			4.221
Total Subadvised Assets	$	2.300		$	2.480		$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480		$	16.100		$	17.933
(1) Retail assets under management include assets under administration related to the mutual fund-based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively.
(2) This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

6/30/2005																			PAGE 30
Lincoln UK
Income Statements
Unaudited [Millions of Dollars]
																YTD			YTD
																Jun			Jun
For the Year Ended December 31	2000			2001			2002			2003			2004			2004			2005
Operating Revenue
Premiums	$	148.4		$	46.1		$	50.6		$	62.2		$	70.3		$	37.7		$	31.0
Mortality assessments		31.4			33.9			32.4			35.7			39.5			20.0			18.4
Expense assessments		178.1			134.8			105.3			93.9			103.9			48.6			54.5
Other revenue and fees		2.6			(1.4	)		24.9			18.6			52.8			14.1			9.3
Net investment income		70.3			64.8			62.1			64.1			75.7			36.7			39.9
Total Operating Revenue		430.6			278.2			275.4			274.5			342.2			157.1			153.1
Operating Expenses
Benefits paid or provided		178.5			83.4			84.2			98.6			100.4			57.8			53.0
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		37.7			10.8			6.1			3.8			2.9			1.2			1.3
Operating and administrative expenses		142.5			82.5			77.0			78.3			81.0			45.3			49.2
Subtotal		180.1			93.2			83.1			82.1			83.9			46.5			50.5
DAC deferral net of amortization		(7.2	)		31.7			46.5			39.1			72.8			23.7			15.5
PVIF amortization		4.7			22.5			30.8			(10.7	)		18.1			3.1			2.7
Total underwriting, acquisition,
insurance and other expenses		177.6			147.4			160.5			110.4			174.8			73.3			68.7
Goodwill amortization		4.0			0.6
Total Operating Expenses		360.2			231.5			244.7			209.0			275.2			131.1			121.7
Operating income before federal taxes		70.4			46.8			30.7			65.5			67.0			26.0			31.3
Federal income taxes		11.2			(11.3	)		(3.9	)		21.9			23.4			9.1			11.0
Income from Operations	$	59.2		$	58.1		$	34.6		$	43.6		$	43.5		$	16.9		$	20.4
Effective tax rate		15.9	%		(24.2	%)		(12.8	%)		33.4	%		35.0	%		35.0	%		35.0	%
Average capital	$	494.0		$	593.8		$	549.9		$	478.9		$	435.4		$	434.6		$	443.3
Return on average capital		12.0	%		9.8	%		6.3	%		9.1	%		10.0	%		7.8	%		9.2	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning of year							$	587.3		$	597.6		$	620.5		$	620.5		$	590.6
Deferral								3.4			3.5			6.3			3.2			(1.4	)
Amortization								(50.0	)		(42.5	)		(79.1	)		(26.9	)		(14.1	)
Included in Total Benefits and Expenses								(46.5	)		(39.1	)		(72.8	)		(23.7	)		(15.5	)
Foreign currency translation adjustment								56.8			62.0			42.9			11.6			(38.3	)
Balance at end of year							$	597.6		$	620.5		$	590.6		$	608.3		$	536.8
Roll Forward of Present Value of In-Force
Balance at beginning of year							$	244.0		$	237.3		$	274.7		$	274.7		$	276.2
Amortization								(30.8	)		10.7			(18.1	)		(3.1	)		(2.7	)
Foreign currency translation adjustment								24.1			26.7			19.6			5.2			(18.1	)
Balance at end of year							$	237.3		$	274.7		$	276.2		$	276.7		$	255.4
Roll Forward of Deferred Front-End Load*
Balance at beginning of year				$	417.6		$	410.0		$	428.2		$	457.9		$	457.9		$	437.5
Deferral					33.4			16.7			10.4			6.6			3.8			2.6
Amortization					(30.4	)		(38.7	)		(26.4	)		(58.7	)		(17.7	)		(11.8	)
Included in Income from Operations					3.0			(22.0	)		(16.0	)		(52.1	)		(13.9	)		(9.2	)
Foreign currency translation adjustment					(10.6	)		40.2			45.8			31.7			8.5			(28.5	)
Balance at end of year				$	410.0		$	428.2		$	457.9		$	437.5		$	452.5		$	399.8
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

6/30/2005																									PAGE 31
Lincoln UK
Income Statements
Unaudited [Millions of Dollars]
For the Quarter Ended	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2003			2003			2003			2004			2004			2004			2004			2005			2005
Operating Revenue
Premiums	$	13.8		$	16.5		$	19.3		$	18.1		$	19.6		$	17.7		$	14.9		$	14.6		$	16.4
Mortality assessments		9.2			8.7			8.7			9.6			10.4			9.7			9.8			9.0			9.4
Expense assessments		24.5			23.2			24.6			24.2			24.4			27.0			28.3			26.6			27.9
Other revenue and fees		(3.9	)		2.6			9.6			5.8			8.3			22.8			16.0			4.1			5.2
Net investment income		16.7			16.0			16.2			18.5			18.3			18.7			20.2			20.3			19.6
Total Operating Revenue		60.2			67.0			78.4			76.1			81.0			95.8			89.3			74.6			78.4
Operating Expenses
Benefits paid or provided		24.3			22.7			33.3			29.0			28.8			21.4			21.3			25.1			27.9
Underwriting, acquisition,
insurance and other expenses:
Commissions and other volume-related expenses		0.8			1.0			0.8			0.6			0.6			0.7			1.0			0.6			0.7
Operating and administrative expenses		20.5			19.6			20.0			23.0			22.3			21.6			14.1			25.4			23.8
Subtotal		21.3			20.6			20.8			23.5			22.9			22.4			15.1			25.9			24.5
DAC deferral net of amortization		1.2			7.1			13.1			11.0			12.6			27.2			21.9			7.1			8.4
PVIF amortization		(5.7	)		(0.7	)		(7.3	)		3.0			0.1			9.4			5.6			1.0			1.7
Total underwriting, acquisition,
insurance and other expenses		16.8			27.0			26.6			37.6			35.7			59.0			42.5			34.0			34.7
Total Operating Expenses		41.1			49.6			59.9			66.6			64.5			80.3			63.8			59.2			62.6
Operating income before federal income taxes		19.1			17.4			18.5			9.5			16.5			15.5			25.5			15.5			15.9
Federal income taxes		6.6			6.1			5.4			3.3			5.8			5.4			8.9			5.4			5.6
Income from Operations	$	12.4		$	11.3		$	13.0		$	6.2		$	10.7		$	10.1		$	16.6		$	10.0		$	10.3
Effective tax rate on
Income from Operations		34.7	%		35.0	%		29.5	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
Average capital	$	487.9		$	452.2		$	443.1		$	447.9		$	421.2		$	432.5		$	439.9		$	440.2		$	446.4
Return on average capital		10.2	%		10.0	%		11.8	%		5.5	%		10.2	%		9.3	%		15.1	%		9.1	%		9.2	%

Roll Forward of Deferred Acquisition Costs
Balance at beginning of year	$	569.1		$	595.1		$	590.9		$	620.7		$	629.6		$	608.6		$	578.9		$	590.9		$	576.9
Deferral		0.8			0.2			1.6			1.5			1.8			1.4			1.6			(0.7	)		(0.7	)
Amortization		(2.0	)		(7.3	)		(14.7	)		(12.5	)		(14.4	)		(28.6	)		(23.5	)		(6.4	)		(7.7	)
Included in Total Benefits and Expenses		(1.2	)		(7.1	)		(13.1	)		(11.0	)		(12.6	)		(27.2	)		(21.9	)		(7.1	)		(8.4	)
Foreign currency translation adjustment		27.2			2.8			42.8			19.9			(8.4	)		(2.5	)		33.8			(7.0	)		(31.4	)
Balance at end of year	$	595.1		$	590.9		$	620.7		$	629.6		$	608.6		$	578.9		$	590.9		$	576.9		$	537.0
Roll Forward of Present Value of In-Force
Balance at beginning of year	$	230.1		$	247.0		$	249.0		$	274.7		$	280.5		$	276.7		$	266.2		$	276.1		$	271.9
Amortization		5.7			0.7			7.3			(3.0	)		(0.1	)		(9.4	)		(5.6	)		(1.0	)		(1.7	)
Foreign currency translation adjustment		11.2			1.3			18.4			8.9			(3.7	)		(1.1	)		15.6			(3.3	)		(14.8	)
Balance at end of year	$	247.0		$	249.0		$	274.7		$	280.5		$	276.7		$	266.2		$	276.1		$	271.9		$	255.3
Roll Forward of Deferred Front-End Load
Balance at beginning of year	$	411.1		$	434.8		$	434.8		$	457.9		$	466.9		$	452.5		$	428.0		$	437.5		$	428.3
Deferral		2.7			2.3			2.2			2.1			1.7			1.4			1.3			1.5			1.1
Amortization		1.3			(4.5	)		(10.6	)		(7.8	)		(9.9	)		(24.1	)		(16.8	)		(5.5	)		(6.2	)
Included in Income from Operations		4.0			(2.1	)		(8.5	)		(5.7	)		(8.2	)		(22.7	)		(15.5	)		(4.0	)		(5.1	)
Foreign currency translation adjustment		19.7			2.2			31.5			14.7			(6.2	)		(1.8	)		25.0			(5.2	)		(23.3	)
Balance at end of year	$	434.8		$	434.8		$	457.9		$	466.9		$	452.5		$	428.0		$	437.5		$	428.3		$	399.8
* Included in Insurance and Investment Contract Liabilities on the Balance Sheet

6/30/2005																															PAGE 32
Lincoln UK
Operational Data
Unaudited [Billions of Dollars]
																															YTD			YTD
																															Jun			Jun
For the Year Ended December 31																2000			2001			2002			2003			2004			2004			2005
Unit Linked Assets - Beg-of-Year																$	7.220		$	6.441		$	5.607		$	5.079		$	6.390		$	6.390		$	7.186
Deposits																	0.554			0.481			0.453			0.392			0.378			0.168			0.145
Withdrawals (incl. chgs) & Deaths																	(0.644	)		(0.529	)		(0.519	)		(0.614	)		(0.712	)		(0.349	)		(0.357	)
Net Flows																	(0.090	)		(0.048	)		(0.066	)		(0.222	)		(0.335	)		(0.182	)		(0.213	)
Inv Inc & Chg in Mkt Val																	(0.154	)		(0.617	)		(1.004	)		0.918			0.648			0.147			0.405
Foreign Currency Adjustment																	(0.536	)		(0.169	)		0.542			0.616			0.482			0.120			(0.475	)
Unit Linked Assets - end of year																$	6.441		$	5.607		$	5.079		$	6.390		$	7.186		$	6.476		$	6.903
Individual Life In-force																$	24.290		$	20.878		$	18.896		$	20.393		$	20.378		$	19.846		$	18.479
Exchange Rate - Dollars to Pounds
For-the-Period																	1.518			1.441			1.503			1.638			1.834			1.825			1.880
end of period																	1.493			1.456			1.610			1.786			1.919			1.819			1.792
For the Quarter Ended		Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
		2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Unit Linked Assets
Balance-Beg-of-Quarter	$	5.520		$	4.825		$	5.079		$	4.748		$	5.468		$	5.692		$	6.390		$	6.528		$	6.476		$	6.468		$	7.186		$	7.173
Deposits		0.119			0.104			0.094			0.090			0.113			0.095			0.083			0.085			0.102			0.108			0.075			0.070
Withdrawals (incl. chgs) & Deaths		(0.126	)		(0.129	)		(0.153	)		(0.137	)		(0.152	)		(0.172	)		(0.172	)		(0.177	)		(0.175	)		(0.188	)		(0.175	)		(0.183	)
Net Flows		(0.006	)		(0.025	)		(0.059	)		(0.047	)		(0.039	)		(0.077	)		(0.090	)		(0.092	)		(0.074	)		(0.080	)		(0.100	)		(0.113	)
Inv Inc & Chg in Mkt Val		(0.812	)		0.146			(0.184	)		0.549			0.205			0.348			0.020			0.127			0.091			0.411			0.171			0.233
Foreign Currency Adjustment		0.123			0.133			(0.087	)		0.218			0.059			0.427			0.207			(0.087	)		(0.025	)		0.387			(0.085	)		(0.390	)
Unit Linked Assets - End-of-Quarter	$	4.825		$	5.079		$	4.748		$	5.468		$	5.692		$	6.390		$	6.528		$	6.476		$	6.468		$	7.186		$	7.173		$	6.903
Individual Life In-force	$	19.815		$	18.896		$	18.512		$	19.138		$	19.258		$	20.393		$	20.522		$	19.846		$	19.380		$	20.378		$	19.820		$	18.479
Exchange Rate - Dollars to Pounds
For-the-Quarter		1.555			1.570			1.605			1.618			1.615			1.714			1.836			1.814			1.813			1.875			1.904			1.855
End-of-Quarter		1.569			1.610			1.580			1.656			1.664			1.786			1.844			1.819			1.812			1.919			1.896			1.792

6/30/2005																									PAGE 33
Other Operations
Unaudited [Millions of Dollars]
																						YTD			YTD
																						Jun			Jun
For the Year Ended December 31							2000			2001			2002			2003			2004			2004			2005
Operating Revenue by Source:
Lincoln Financial Advisors							$	377.5		$	360.7		$	318.0		$	316.9		$	383.6		$	188.0		$	253.3
Lincoln Financial Distributors								119.9			113.4			127.3			140.9			245.2			115.9			132.4
Total Distribution								497.4			474.0			445.4			457.8			628.8			304.0			385.7
Reinsurance								1,770.6			1,699.4
Amortization of deferred gain on indemnity reinsurance*											20.4			75.2			72.3			87.0			35.8			37.9
Other [Including
Consolidating Adjustments]								(316.0	)		(377.9	)		(165.6	)		(245.8	)		(380.7	)		(178.1	)		(254.5	)
Total Operating Revenue							$	1,951.9		$	1,815.9		$	355.0		$	284.2		$	335.1		$	161.6		$	169.0
Income (Loss) from Operations by Source:
Lincoln Financial Advisors								($15.4	)		($20.1	)		($31.4	)		($33.2	)		($17.8	)		($14.0	)		($12.0	)
Lincoln Financial Distributors								(19.6	)		(33.2	)		(35.2	)		(33.4	)		(23.7	)		(11.1	)		(11.4	)
Total Distribution								(35.0	)		(53.3	)		(66.6	)		(66.6	)		(41.5	)		(25.1	)		(23.4	)
Reinsurance								122.5			128.8
Amortization of deferred gain on indemnity reinsurance*											12.9			48.9			47.0			56.5			23.3			24.6
LNC Financing								(84.9	)		(77.9	)		(43.0	)		(56.7	)		(61.0	)		(30.3	)		(29.1	)
Other Corporate								(18.6	)		(9.5	)		3.5			(5.4	)		(11.3	)		(8.8	)		25.8
Income (Loss) from Operations								($16.0	)	$	1.0			($57.2	)		($81.8	)		($57.2	)		($41.0	)		($2.1	)
		Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
For the Quarter Ended		2003			2003			2003			2004			2004			2004			2004			2005			2005
Operating Revenue by Source:
Lincoln Financial Advisors	$	75.3		$	76.7		$	95.5		$	92.0		$	96.0		$	91.7		$	103.9		$	128.1		$	125.2
Lincoln Financial Distributors		29.4			32.2			43.9			57.5			58.4			59.9			69.4			63.5			68.9
Total Distribution		104.6			108.9			139.5			149.6			154.4			151.6			173.2			191.6			194.1
Amortization of deferred gain on
indemnity reinsurance*		18.2			18.3			17.4			17.9			17.9			32.1			19.1			18.9			18.9
Other [Including
Consolidating Adjustments]		(46.6	)		(56.2	)		(93.1	)		(111.3	)		(66.8	)		(91.2	)		(111.3	)		(136.7	)		(117.8	)
Total Operating Revenue	$	76.3		$	70.9		$	63.7		$	56.1		$	105.5		$	92.4		$	81.1		$	73.8		$	95.2
Income from Operations by Source:
Lincoln Financial Advisors		($7.4	)		($7.4	)		($8.0	)		($8.7	)		($5.3	)		($3.5	)		($0.3	)		($7.6	)		($4.4	)
Lincoln Financial Distributors		(10.7	)		(7.5	)		(7.1	)		(4.6	)		(6.4	)		(6.3	)		(6.3	)		(6.0	)		(5.4	)
Total Distribution		(18.1	)		(15.0	)		(15.1	)		(13.3	)		(11.8	)		(9.8	)		(6.6	)		(13.6	)		(9.8	)
Amortization of deferred gain on
indemnity reinsurance*		11.9			11.9			11.3			11.6			11.7			20.8			12.4			12.3			12.3
LNC Financing		(14.4	)		(13.3	)		(13.7	)		(14.6	)		(15.7	)		(16.0	)		(14.6	)		(14.6	)		(14.5	)
Other Corporate		(0.8	)		(1.5	)		(3.4	)		(4.0	)		(4.8	)		(5.0	)		2.5			4.7			21.1
Income(Loss) from Operations		($21.5	)		($18.0	)		($20.8	)		($20.3	)		($20.7	)		($9.9	)		($6.3	)		($11.3	)	$	9.2
* Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

3/31/2005																							PAGE 34
Restructuring Charges (After-tax)
Unaudited [Millions of Dollars]
																				YTD			YTD
																				Jun			Jun
For the Year Ended December 31					2000			2001			2002			2003			2004			2004			2005
Lincoln Retirement					$	0.0			($1.3	)		($1.0	)		($13.1	)		($3.5	)		($2.3	)		($10.4	)
Life Insurance						-			(3.5	)		-			(12.7	)		(3.1	)		(2.1	)		(3.0	)
Investment Management						(4.6	)		(0.4	)		0.3			(4.6	)		(0.8	)		(1.0	)		0.2
Lincoln UK						(76.5	)		-			1.7			-			-			-			-
Corporate & Other						1.0			(19.5	)		1.1			(4.7	)		(6.4	)		(5.5	)		(3.0	)
Total						($80.2	)		($24.7	)	$	2.0			($35.0	)		($13.9	)		($10.9	)		($16.3	)
For the quarter ended	Jun		Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2003		2003			2003			2004			2004			2004			2004			2005			2005
Lincoln Retirement	($4.0	)	($5.5	)		($3.6	)		($1.2	)		($1.2	)		($1.7	)	$	0.5			($0.4	)		($10.0	)
Life Insurance	(4.7	)	(1.6	)		(2.7	)		(1.8	)		(0.4	)		(0.6	)		(0.4	)		(0.6	)		(2.4	)
Investment Management	-		(3.5	)		(1.1	)		(1.0	)		(0.0	)		(0.0	)		0.2			-			0.2
Lincoln UK	-		-			-			-			-			-			-			-			-
Corporate & Other	-		(2.4	)		(2.4	)		(3.6	)		(1.9	)		(0.7	)		(0.3	)		(0.2	)		(2.8	)
Total	($8.8	)	($12.9	)		($9.8	)		($7.5	)		($3.5	)		($2.9	)		($0.0	)		($1.3	)		($15.0	)

6/30/2005																			PAGE 35
Consolidated Domestic Deposits/Account Balances
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Deposits - For the Year
Lincoln Retirement - Fixed Annuities	$	2.074		$	3.342		$	3.672		$	3.125		$	3.110		$	1.596		$	1.533
Lincoln Retirement - Variable Products(1)		3.165			3.067			2.743			3.119			5.910			2.831			3.635
Lincoln Retirement - Life Insurance		0.014			0.012
Life Insurance Segment - Life Insurance		1.884			1.934			2.138			2.259			2.243			1.009			1.039
Inv Mgmt - Annuities		1.782			1.701			2.751			2.151			2.757			1.420			1.390
Inv Mgmt - Mutual Funds		2.577			1.523			1.829			2.315			3.235			1.634			2.591
Inv Mgmt - Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999			1.514			3.433
Consolidating Adjustments		(0.765	)		(0.608	)		(1.576	)		(0.864	)		(0.975	)		(0.450	)		(0.513	)
Total Gross Retail Deposits		11.256			11.439			12.671			13.222			19.280			9.553			13.108
Investment Management Segment- Instit.		3.501			3.826			5.194			5.859			11.289			5.954			7.639
Consolidating Adjustments		(0.152	)		(0.207	)		(0.232	)		(0.150	)		(0.089	)		(0.054	)		(0.049	)
Total Gross Deposits	$	14.605		$	15.058		$	17.634		$	18.931		$	30.479		$	15.453		$	20.698
Account Balances - End of Year
Lincoln Retirement - Fixed Annuities	$	15.394		$	16.491		$	18.085		$	18.868		$	19.268
Lincoln Retirement - Variable Products(1)		39.427			34.638			27.438			35.786			43.223
Lincoln Retirement - Life Insurance		0.160			0.149
Life Insurance Segment - Life Insurance		10.847			11.377			12.086			13.420			14.382
Inv Mgmt - Annuities		13.527			11.835			9.981			12.691			14.494
Inv Mgmt - Mutual Funds		13.260			11.554			10.296			12.614			13.251
Inv Mgmt - Managed Acct. & Other		1.342			1.719			2.270			3.768			6.642
Consolidating Adjustments		(7.757	)		(6.676	)		(5.123	)		(6.553	)		(7.476	)
Total Retail Account Balances		86.200			81.088			75.033			90.593			103.784
Investment Management Segment- Instit.		25.225			23.305			23.948			33.722			21.643
Consolidating Adjustments		(1.434	)		(1.211	)		(0.924	)		(1.183	)		(1.248	)
Total Account Balances	$	109.991		$	103.181		$	98.057		$	123.132		$	124.179

	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	$	1.091		$	0.822		$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732		$	0.740		$	0.793
Lincoln Retirement - Variable Products(1)		0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899			1.736
Life Insurance Segment - Life Insurance		0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512			0.527
Inv Mgmt - Annuities		0.756			0.806			0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737			0.735			0.655
Inv Mgmt - Mutual Funds		0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255
Inv Mgmt - Managed Acct. & Other		0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123
Consolidating Adjustments		(0.437	)		(0.525	)		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)		(0.282	)		(0.230	)
Total Gross Retail Deposits		3.206			3.151			2.880			2.960			3.370			4.012			4.905			4.648			4.436			5.290			6.249			6.859
Investment Management Segment- Instit.		1.162			1.323			1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750			1.787			5.852
Consolidating Adjustments		(0.040	)		(0.076	)		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)		(0.015	)		(0.034	)
Total Gross Deposits	$	4.328		$	4.398		$	3.913		$	3.788		$	5.288		$	5.943		$	7.509		$	7.945		$	6.988		$	8.038		$	8.021		$	12.677
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084		$	19.141
Lincoln Retirement - Variable Products(1)		25.942			27.438			26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223			43.673			45.751
Life Insurance Segment - Life Insurance		11.726			12.086			12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382			14.466			14.691
Inv Mgmt - Annuities		9.327			9.981			9.660			11.002			11.392			12.691			13.294			13.355			13.074			14.494			14.356			14.844
Inv Mgmt - Mutual Funds		10.072			10.296			10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251			13.478			14.385
Inv Mgmt - Managed Acct. & Other		1.820			2.270			2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642			7.638			9.492
Consolidating Adjustments		(4.940	)		(5.123	)		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)		(7.758	)		(8.025	)
Total Retail Account Balances		71.597			75.033			74.546			81.283			83.787			90.593			94.133			95.860			95.393			103.784			104.936			110.278
Investment Management Segment- Instit.		22.143			23.948			23.526			27.360			29.085			33.722			36.216			38.268			18.396			21.643			22.551			27.243
Consolidating Adjustments		(0.866	)		(0.924	)		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)		(1.166	)		(1.198	)
Total Account Balances	$	92.874		$	98.057		$	97.140		$	107.595		$	111.828		$	123.132		$	129.173		$	132.961		$	112.649		$	124.179		$	126.321		$	136.323

Total Domestic Net Flows
Unaudited [Billions of Dollars]
															YTD			YTD
															Jun			Jun
For the Year	2000			2001			2002			2003			2004		2004			2005
Lincoln Retirement(1)		($2.874	)	$	0.105		$	0.453		$	1.007		$	2.922	$	1.412		$	1.633
Life Insurance Segment		1.158			1.163			1.320			1.377			1.247		0.539			0.569
Investment Management Segment- Retail		(1.500	)		(0.375	)		0.806			1.271			3.136		1.585			3.910
Consolidating Adjustments		1.022			0.035			(0.082	)		0.064			0.030		(0.036	)		(0.015	)
Total Retail Net Flows		(2.194	)		0.927			2.496			3.719			7.335		3.501			6.097
Investment Management Segment- Institutional		(5.693	)		(0.231	)		2.106			2.478			7.178		3.703			5.325
Consolidating Adjustments		0.035			(0.015	)		0.005			(0.002	)		0.031		0.037			0.048
Total Net Flows		($7.853	)	$	0.681		$	4.608		$	6.195		$	14.545	$	7.241		$	11.470

	Sep		Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec		Mar			Jun
For the Quarter	2002		2002			2003			2003			2003			2003			2004			2004			2004			2004		2005			2005
Lincoln Retirement(1)	$	0.068	$	0.074		$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794	$	0.776		$	0.857
Life Insurance Segment		0.297		0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408		0.260			0.309
Investment Management Segment- Retail		0.048		0.502			0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170		1.579			2.331
Consolidating Adjustments		0.133		(0.187	)		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154		(0.021	)		0.006
Total Retail Net Flows		0.545		0.791			0.568			0.723			0.965			1.464			1.832			1.669			1.308			2.527		2.593			3.504
Investment Management Segment- Instit.		0.348		0.572			0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095		1.217			4.108
Consolidating Adjustments		0.008		0.001			(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000		0.040			0.008
Total Net Flows	$	0.901	$	1.364		$	0.868		$	1.021		$	1.799		$	2.508		$	3.530		$	3.710		$	2.682		$	4.622	$	3.851		$	7.619
(1) Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.
(2) Amounts for the Investment Management segment exclude amounts reported as Assets Under Management - Insurance-related Assets.

6/30/2005																			PAGE 35A
Consolidated Domestic Deposits/Account Balances (excluding Assets
Managed by Delaware's London-based International Investment Unit)
Unaudited [Billions of Dollars]
																YTD			YTD
																Jun			Jun
	2000			2001			2002			2003			2004			2004			2005
Deposits - For the Year
Lincoln Retirement - Fixed Annuities	$	2.074		$	3.342		$	3.672		$	3.125		$	3.110		$	1.596		$	1.533
Lincoln Retirement - Variable Products(1)		3.165			3.067			2.743			3.119			5.910			2.831			3.635
Lincoln Retirement - Life Insurance		0.014			0.012
Life Insurance Segment - Life Insurance		1.884			1.934			2.138			2.259			2.243			1.009			1.039
Inv Mgmt - Annuities		1.782			1.701			2.456			2.140			2.752			1.417			1.390
Inv Mgmt - Mutual Funds		2.577			1.523			1.829			2.315			3.235			1.634			2.591
Inv Mgmt - Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999			1.514			3.433
Consolidating Adjustments		(0.765	)		(0.608	)		(1.576	)		(0.864	)		(0.975	)		(0.450	)		(0.513	)
Total Gross Retail Deposits		11.256			11.439			12.376			13.210			19.274			9.550			13.108
Investment Management Segment- Instit.		1.924			1.943			3.709			3.320			6.637			2.578			7.639
Consolidating Adjustments		(0.152	)		(0.207	)		(0.232	)		(0.150	)		(0.089	)		(0.054	)		(0.049	)
Total Gross Deposits	$	13.029		$	13.175		$	15.854		$	16.380		$	25.822		$	12.073		$	20.698
Account Balances - End of Year
Lincoln Retirement - Fixed Annuities	$	15.394		$	16.491		$	18.085		$	18.868		$	19.268
Lincoln Retirement - Variable Products(1)		39.427			34.638			27.438			35.786			43.223
Lincoln Retirement - Life Insurance		0.160			0.149
Life Insurance Segment - Life Insurance		10.847			11.377			12.086			13.420			14.382
Inv Mgmt - Annuities		13.527			11.835			9.688			12.368			14.494
Inv Mgmt - Mutual Funds		13.260			11.554			10.296			12.614			13.251
Inv Mgmt - Managed Acct. & Other		1.342			1.719			2.270			3.768			6.642
Consolidating Adjustments		(7.757	)		(6.676	)		(5.123	)		(6.553	)		(7.476	)
Total Retail Account Balances		86.200			81.088			74.741			90.271			103.784
Investment Management Segment- Instit.		25.225			11.562			12.348			16.299			21.643
Consolidating Adjustments		(1.434	)		(1.211	)		(0.924	)		(1.183	)		(1.248	)
Total Account Balances	$	109.991		$	91.439		$	86.165		$	105.387		$	124.179

	Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
	2002			2002			2003			2003			2003			2003			2004			2004			2004			2004			2005			2005
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	$	1.091		$	0.822		$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732		$	0.740		$	0.793
Lincoln Retirement - Variable Products(1)		0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899			1.736
Life Insurance Segment - Life Insurance		0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512			0.527
Inv Mgmt - Annuities		0.756			0.510			0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737			0.735			0.655
Inv Mgmt - Mutual Funds		0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336			1.255
Inv Mgmt - Managed Acct. & Other		0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310			2.123
Consolidating Adjustments		(0.437	)		(0.525	)		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)		(0.282	)		(0.230	)
Total Gross Retail Deposits		3.206			2.856			2.875			2.958			3.367			4.010			4.903			4.646			4.435			5.290			6.249			6.859
Investment Management Segment- Instit.		0.866			0.994			0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750			1.787			5.852
Consolidating Adjustments		(0.040	)		(0.076	)		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)		(0.015	)		(0.034	)
Total Gross Deposits	$	4.032		$	3.773		$	3.714		$	3.400		$	4.430		$	4.837		$	6.090		$	5.983		$	5.711		$	8.038		$	8.021		$	12.677
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084		$	19.141
Lincoln Retirement - Variable Products(1)		25.942			27.438			26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223			43.673			45.751
Life Insurance Segment - Life Insurance		11.726			12.086			12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382			14.466			14.691
Inv Mgmt - Annuities		9.327			9.688			9.423			10.718			11.104			12.368			12.973			13.037			13.074			14.494			14.356			14.844
Inv Mgmt - Mutual Funds		10.072			10.296			10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251			13.478			14.385
Inv Mgmt - Managed Acct. & Other		1.820			2.270			2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642			7.638			9.492
Consolidating Adjustments		(4.940	)		(5.123	)		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)		(7.758	)		(8.025	)
Total Retail Account Balances		71.597			74.741			74.309			80.999			83.499			90.271			93.812			95.542			95.393			103.784			104.936			110.278
Investment Management Segment- Instit.		11.126			12.348			12.571			13.943			14.660			16.299			17.215			17.414			18.396			21.643			22.551			27.243
Consolidating Adjustments		(0.866	)		(0.924	)		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)		(1.166	)		(1.198	)
Total Account Balances	$	81.857		$	86.165		$	85.948		$	93.894		$	97.115		$	105.387		$	109.851		$	111.789		$	112.649		$	124.179		$	126.321		$	136.323

Total Domestic Net Flows (excluding Assets
Managed by Delaware's London-based International Investment Unit)
																													YTD			YTD
																													Jun			Jun
For the Year															2000			2001			2002			2003			2004		2004			2005
Lincoln Retirement(1)																($2.874	)	$	0.105		$	0.453		$	1.007		$	2.922	$	1.412			1.633
Life Insurance Segment																1.158			1.163			1.320			1.377			1.247		0.539			0.569
Investment Management Segment- Retail																(1.500	)		(0.375	)		0.517			1.325			3.160		1.604			3.910
Consolidating Adjustments																1.022			0.035			(0.082	)		0.064			0.030		(0.036	)		(0.015	)
Total Retail Net Flows																(2.194	)		0.927			2.207			3.773			7.359		3.520			6.097
Investment Management Segment- Institutional																(5.120	)		(0.925	)		1.885			1.433			3.884		0.938			5.325
Consolidating Adjustments																0.035			(0.015	)		0.005			(0.002	)		0.031		0.037			0.048
Total Net Flows																($7.280	)		($0.013	)	$	4.097		$	5.203		$	11.274	$	4.495		$	11.470
		Sep		Dec			Mar			Jun			Sep			Dec			Mar			Jun			Sep			Dec		Mar			Jun
For the Quarter		2002		2002			2003			2003			2003			2003			2004			2004			2004			2004		2005			2005
Lincoln Retirement(1)	$	0.068	$	0.074		$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794	$	0.776		$	0.857
Life Insurance Segment		0.297		0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408		0.260			0.309
Investment Management Segment- Retail		0.048		0.213			0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170		1.579			2.331
Consolidating Adjustments		0.133		(0.187	)		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154		(0.021	)		0.006
Total Retail Net Flows		0.545		0.502			0.602			0.725			0.970			1.478			1.843			1.676			1.313			2.527		2.593			3.504
Investment Management Segment- Instit.		0.337		0.673			0.562			(0.016	)		0.430			0.457			0.560			0.379			0.850			2.095		1.217			4.108
Consolidating Adjustments		0.008		0.001			(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000		0.040			0.008
Total Net Flows	$	0.890	$	1.176		$	1.134		$	0.718		$	1.435		$	1.918		$	2.441		$	2.054		$	2.157		$	4.622	$	3.851		$	7.619
(1) Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.
(2) This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.
(3) Amounts for the Investment Management segment exclude amounts reported as Assets Under Management - Insurance-related Assets.

6/30/2005	PAGE 36
Consolidated Investment Data - Assets Managed
Unaudited [Billions of Dollars]

For the Year Ended December 31	2000		2001		2002		2003		2004
Assets Managed by Source
LNC's Investments and Cash
Fixed maturity securities - available for sale	$	27.450	$	28.346	$	32.767	$	32.769	$	34.701
Equity securities - available for sale		0.550		0.470		0.337		0.199		0.161
Trading securities								3.120		3.237
Other investments		7.369		7.297		6.895		6.689		6.408
Total LNC Investments		35.369		36.113		40.000		42.778		44.507
Separate accounts		50.580		44.833		36.178		46.565		55.205
Cash and invested cash		1.927		3.095		1.691		1.711		1.662
Total LNC		87.876		84.042		77.869		91.054		101.374
Non-affiliate assets managed		41.861		38.421		38.052		49.587		42.966
Total Assets Managed	$	129.737	$	122.463	$	115.921	$	140.641	$	144.340
Assets Managed by Advisor
Investment Management segment	$	53.355	$	48.412	$	46.495	$	62.794	$	56.029
(See page 28 for additional detail)
DLIA-Corp		35.686		38.119		41.104		43.024		43.980
(Assets managed internally-see page 28)
Lincoln (UK)		7.873		6.847		6.351		7.668		8.599
Policy Loans (within business units)		1.961		1.940		1.946		1.924		1.871
Non-LNC Affiliates		30.862		27.145		20.026		25.231		33.862
Total Assets Managed	$	129.737	$	122.463	$	115.921	$	140.641	$	144.340

	Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun
For the Quarter Ended	2002		2002		2003		2003		2003		2003		2004		2004		2004		2004		2005		2005
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	32.037	$	32.767	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701	$	34.225	$	34.975
Equity securities - available for sale		0.397		0.337		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161		0.155		0.155
Trading securities												3.120		3.191		3.088		3.224		3.237		3.207		3.345
Other investments		6.928		6.895		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408		6.396		6.389
Total LNC Investments		39.363		40.000		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507		43.982		44.863
Separate accounts		34.069		36.178		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205		55.387		57.240
Cash and invested cash		1.600		1.691		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662		1.499		1.659
Total LNC		75.031		77.869		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374		100.868		103.762
Non-affiliate assets managed		35.650		38.052		37.501		42.917		45.176		49.587		54.977		57.361		37.060		42.966		44.618		52.199
Total Assets Managed	$	110.682	$	115.921	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340	$	145.487	$	155.961
Assets Managed by Advisor
Investment Management segment	$	43.362	$	46.495	$	45.718	$	52.456	$	55.129	$	62.794	$	67.075	$	69.643	$	49.076	$	56.029	$	58.022	$	65.963
(See page 29 for additional detail)
DLIA-Corp		40.416		41.104		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980		44.210		45.219
(Assets managed internally-see page 29)
Lincoln (UK)		6.068		6.351		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599		8.578		8.278
Policy Loans (within business units)		1.906		1.899		1.946		1.920		1.910		1.924		1.877		1.871		1.872		1.871		1.860		1.867
Non-LNC Affiliates		18.930		20.073		19.164		22.439		23.933		25.231		28.497		29.476		29.877		33.862		32.816		34.635
Total Assets Managed	$	110.682	$	115.921	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340	$	145.487	$	155.961

6/30/2005									PAGE 36A
Consolidated Investment Data - Assets Managed (excluding Assets
Managed by Delaware's London-based International Investment Unit)
Unaudited [Billions of Dollars]
For the Year Ended December 31	2000		2001		2002		2003		2004
Assets Managed by Source
LNC's Investments and Cash
Fixed maturity securities - available for sale	$	27.450	$	28.346	$	32.767	$	32.769	$	34.701
Equity securities - available for sale		0.550		0.470		0.337		0.199		0.161
Trading securities								3.120		3.237
Other investments		7.369		7.297		6.895		6.689		6.408
Total LNC Investments		35.369		36.113		40.000		42.778		44.507
Separate accounts		50.580		44.833		36.178		46.565		55.205
Cash and invested cash		1.927		3.095		1.691		1.711		1.662
Total LNC		87.876		84.042		77.869		91.054		101.374
Non-affiliate assets managed		29.891		26.679		26.159		31.842		42.966
Total Assets Managed	$	117.767	$	110.721	$	104.028	$	122.896	$	144.340
Assets Managed by Advisor
Investment Management segment	$	41.384	$	36.670	$	34.602	$	45.049	$	56.029
(See page 28A for additional detail)
DLIA-Corp		35.686		38.119		41.104		43.024		43.980
(Assets managed internally-see page 28A)
Lincoln (UK)		7.873		6.847		6.351		7.668		8.599
Policy Loans (within business units)		1.961		1.940		1.946		1.924		1.871
Non-LNC Affiliates		30.862		27.145		20.026		25.231		33.862
Total Assets Managed	$	117.767	$	110.721	$	104.028	$	122.896	$	144.340

	Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun		Sep		Dec		Mar		Jun
For the Quarter Ended	2002		2002		2003		2003		2003		2003		2004		2004		2004		2004		2005		2005
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	32.037	$	32.767	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701	$	34.225	$	34.975
Equity securities - available for sale		0.397		0.337		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161		0.155		0.155
Trading securities												3.120		3.191		3.088		3.224		3.237		3.207		3.345
Other investments		6.928		6.895		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408		6.396		6.389
Total LNC Investments		39.363		40.000		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507		43.982		44.863
Separate accounts		34.069		36.178		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205		55.387		57.240
Cash and invested cash		1.600		1.691		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662		1.499		1.659
Total LNC		75.031		77.869		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374		100.868		103.762
Non-affiliate assets managed		24.633		26.159		26.309		29.216		30.463		31.842		35.655		36.190		37.060		42.966		44.618		52.199
Total Assets Managed	$	99.665	$	104.028	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340	$	145.486	$	155.961
Assets Managed by Advisor
Investment Management segment	$	32.345	$	34.602	$	34.527	$	38.755	$	40.416	$	45.049	$	47.753	$	48.471	$	49.076	$	56.029	$	58.022	$	65.963
(See page 29A for additional detail)
DLIA-Corp		40.416		41.104		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980		44.210		45.219
(Assets managed internally-see page 29A)
Lincoln (UK)		6.068		6.351		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599		8.578		8.278
Policy Loans (within business units)		1.906		1.899		1.946		1.920		1.910		1.924		1.877		1.871		1.872		1.871		1.860		1.867
Non-LNC Affiliates		18.930		20.072		19.164		22.439		23.933		25.231		28.497		29.476		29.878		33.862		32.816		34.635
Total Assets Managed	$	99.665	$	104.028	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340	$	145.486	$	155.961
NOTE: This page presents the assets under management roll-forward without the Investment Management segment's London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

6/30/2005																			PAGE 37
Consolidated Investment Data
Unaudited [Millions of Dollars]
																YTD			YTD
																Jun			Jun
For the Year Ended December 31	2000			2001			2002			2003			2004			2004			2005
Net Investment Income
Fixed maturity AFS securities	$	2,148.7		$	2,121.0		$	2,117.0		$	2,113.2		$	2,005.7		$	989.4		$	1,015.0
Equity AFS securities		19.5			17.6			15.4			12.3			10.9			4.4			3.8
Trading securities											46.5			193.5			96.0			96.4
Mortgage loans on real estate		373.8			374.5			356.8			338.3			350.1			192.6			141.5
Real estate		51.8			49.5			47.4			43.9			26.9			13.5			36.0
Policy loans		125.0			125.3			134.5			123.2			119.8			58.8			59.4
Invested cash		87.2			68.4			37.6			7.8			32.2			8.7			26.7
Other investments		66.8			69.4			16.3			48.8			55.3			38.8			37.8
Investment revenue		2,872.8			2,825.9			2,725.0			2,734.0			2,794.4			1,402.2			1,416.7
Investment expense		(88.7	)		(117.1	)		(93.1	)		(95.4	)		(90.3	)		(41.6	)		(53.3	)
Net Investment Income	$	2,784.1		$	2,708.7		$	2,631.9		$	2,638.5		$	2,704.1		$	1,360.6		$	1,363.4
Gross-up of Tax Exempt Income		7.8			7.2			7.5			7.7			7.7			3.4			3.2
Adjusted Net Investment Income	$	2,791.9		$	2,715.9		$	2,639.4		$	2,646.2		$	2,711.8		$	1,364.0		$	1,366.6
Mean Invested Assets (Amortized Cost)	$	37,471.3		$	37,616.9		$	38,828.5		$	41,042.8		$	43,216.4		$	42,801.5		$	43,829.0
Ratio of Adjusted Net Invest Income
Over Mean Invested Assets		7.45	%		7.22	%		6.80	%		6.45	%		6.27	%		6.37	%		6.24	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments		($17.5	)		($68.7	)		($177.2	)		($11.0	)		($30.0	)		($19.4	)		($6.2	)
Gains(Losses) on Derivatives					(4.9	)		0.8			(1.6	)		(7.4	)		(4.3	)		(1.1	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)		477.7			183.7			557.6			39.8			29.8			(381.1	)		28.4
Incr (Decr) on Derivatives					21.4			24.4			(6.3	)		(8.1	)		(3.6	)		(2.2	)
Securities Available-for-Sale
[Billions of Dollars]
Fixed Maturity Sec (Fair Value)		27.450			28.346			32.767			35.887			37.936			35.894			38.318
Fixed Maturity Sec (Amortized Cost)		27.373			27.956			31.103			33.743			35.692			34.648			35.977
Equity Securities (Fair Value)		0.550			0.470			0.337			0.201			0.163			0.185			0.157
Equity Securities (Amortized Cost)		0.458			0.444			0.334			0.176			0.148			0.162			0.144
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA		22.1	%		17.2	%		20.1	%		22.8	%		23.5	%		23.3	%		24.8	%
AA or better		29.2	%		23.6	%		25.8	%		29.3	%		29.9	%		29.5	%		32.1	%
BB or less		6.7	%		8.3	%		6.6	%		6.8	%		7.0	%		7.1	%		6.5	%

	Jun			Sep			Dec			Mar			Jun			Sep			Dec			Mar			Jun
For the Quarter Ended	2003			2003			2003			2004			2004			2004			2004			2005			2005
Net Investment Income
Fixed maturity AFS securities	$	546.8		$	536.6		$	487.5		$	493.0		$	496.4		$	501.5		$	514.8		$	505.1		$	509.8
Equity AFS securities		2.9			3.9			2.7			2.4			2.0			2.2			4.4			1.8			2.0
Trading securities								46.5			47.5			48.6			47.7			49.7			47.6			48.8
Mortgage loans on real estate		84.3			94.5			77.9			100.4			92.1			83.8			73.8			70.9			70.7
Real estate		10.0			10.0			13.2			7.6			5.9			8.0			5.4			4.3			31.7
Policy loans		30.6			30.9			30.8			29.2			29.6			29.7			31.3			29.6			29.8
Invested cash		(1.7	)		3.2			1.7			3.5			5.2			5.6			17.9			12.7			14.0
Other investments		10.7			8.9			20.9			15.0			23.8			14.0			2.4			13.5			24.2
Investment revenue		683.5			688.2			681.3			698.6			703.6			692.4			699.8			685.6			731.1
Investment expense		(23.3	)		(23.8	)		(22.1	)		(21.0	)		(20.5	)		(23.0	)		(25.7	)		(25.8	)		(27.5	)
Net Investment Income	$	660.2		$	664.4		$	659.2		$	677.5		$	683.1		$	669.4		$	674.1		$	659.8		$	703.6
Gross-up of Tax Exempt Income		1.8			2.3			1.8			1.7			1.6			1.7			2.6			1.6			1.6
Adjusted Net Invest Income	$	662.0		$	666.8		$	661.0		$	679.3		$	684.8		$	671.1		$	676.6		$	661.4		$	705.2
Mean Invested Assets (Amortized Cost)	$	39,733.1		$	40,342.2		$	41,999.1		$	42,615.7		$	42,987.4		$	43,499.3		$	43,763.4		$	43,851.9		$	43,806.2
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets		6.66	%		6.61	%		6.30	%		6.38	%		6.37	%		6.17	%		6.18	%		6.03	%		6.44	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments		(1.1	)		6.4			42.0			(7.9	)		(11.6	)		(14.5	)		3.9			(6.0	)		(0.2	)
Gains (Losses) on Derivatives		(0.6	)		5.9			(5.7	)		(2.5	)		(1.8	)		(3.4	)		0.3			1.4			(2.5	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)		(64.3	)		(313.4	)		(11.4	)		244.9			(626.0	)		368.1			42.8			(240.0	)		268.4
Incr (Decr) on Derivatives		1.0			(5.6	)		(1.1	)		6.9			(10.5	)		1.3			(5.8	)		(6.3	)		4.2
Available-for-Sale and Trading Securities
[Billions of Dollars]
Fixed Maturity Sec (Fair Value)		35.355			35.384			35.887			36.856			35.894			37.444			37.936			37.429			38.318
Fixed Maturity Sec (Amortized Cost)		32.257			32.896			33.743			34.031			34.648			35.256			35.692			35.849			35.977
Equity Securities (Fair Value)		0.257			0.243			0.201			0.200			0.185			0.180			0.163			0.157			0.157
Equity Securities (Amortized Cost)		0.244			0.223			0.176			0.171			0.162			0.156			0.148			0.145			0.144
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA		19.5	%		20.4	%		22.8	%		23.4	%		23.3	%		23.6	%		23.5	%		24.4	%		24.8	%
AA or better		25.1	%		26.4	%		29.3	%		29.6	%		29.5	%		29.7	%		29.9	%		32.2	%		32.1	%
BB or less		6.6	%		6.9	%		6.8	%		6.9	%		7.1	%		6.9	%		7.0	%		6.2	%		6.5	%

6/30/2005																															PAGE 38
Common Stock / Debt Information
Unaudited [Dollars per Share, except Percentages]
For the Year Ended December 31	1994			1995			1996			1997			1998			1999			2000			2001			2002			2003			2004
Common Stock [1]
Highest Price	$	22.188		$	26.875		$	28.500		$	39.063		$	49.438		$	57.500		$	56.375		$	52.750		$	53.650		$	41.320		$	50.380
Lowest Price		17.313			17.313			20.375			24.500			33.500			36.000			22.625			38.000			25.150			24.730			40.060
Closing Price		17.500			26.875			26.250			39.063			40.907			40.000			47.313			48.570			31.580		$	40.370			46.680
Dividend Payout Ratio [2]		51.0	%		39.7	%		38.2	%		22.8	%		43.9	%		50.5	%		38.3	%		44.9	%		273.5	%		49.1	%		37.0	%
Yield [3]		4.9	%		3.4	%		3.7	%		2.7	%		2.7	%		2.9	%		2.6	%		2.6	%		4.2	%		3.5	%		3.1	%
Preferred Stock Dividend (Millions)	$	17.119		$	8.644		$	0.112		$	0.106		$	0.100		$	0.089		$	0.078		$	0.071		$	0.061		$	0.057		$	0.052
Debt: (End of Period)
Senior Debt Ratings
A.M. Best																				a			a			a			a-			a-
Fitch		AA-			AA-			AA-			AA-			A+			A+			A+			A+			A			A			A
Moody's		A1			A2			A2			A2			A2			A2			A3			A3			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			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
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			AA			AA
First Penn - Moody's											A1			A1			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+			A+			A+
LLA of New York - Fitch*											AA+			AA+			AA+			AA			AA			AA			AA			AA
LLA of New York - Moody's								A1			A1			A1			A1			A1			A1			A1			A1			A1
LLA of New York - Standard & Poors*								AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
Ratios
Debt to Total Capitalization [4]		19.9	%		22.8	%		18.8	%		17.0	%		21.2	%		23.2	%		20.8	%		21.3	%		23.4	%		20.7	%		20.9	%
Debt to Equity [4]		24.9	%		29.5	%		23.1	%		20.5	%		26.9	%		30.3	%		26.3	%		27.0	%		30.5	%		26.1	%		26.5	%

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

For the Quarter Ended

2002

2002

2003

2003

2003

2003

2004

2004

2004

2004

2005

2005

Common Stock:

Highest Price

$

42.080

$

35.950

$

35.700

$

37.500

$

38.640

$

41.320

$

48.870

$

50.380

$

47.500

$

48.700

$

49.420

$

47.770

Lowest Price

29.120

25.150

24.730

27.870

34.630

35.410

40.060

43.260

41.900

40.790

44.360

41.590

Closing Price

30.550

31.580

28.000

35.630

35.380

40.370

47.320

47.250

47.000

46.680

45.140

46.920

Yield [3]

4.2

%

4.2

%

4.8

%

3.8

%

3.8

%

3.5

%

3.0

%

3.0

%

3.0

%

3.1

%

3.2

%

3.1

%

Preferred Stock Dividend

$

0.015

$

0.015

$

0.015

$

0.014

$

0.016

$

0.014

$

0.013

$

0.013

$

0.013

$

0.013

$

0.012

$

0.012

(Millions)

Debt: (End of Period)

Senior Debt Ratings

A.M. Best

a

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

A3

A3

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]

23.0

%

23.4

%

23.1

%

22.3

%

21.5

%

20.7

%

22.8

%

22.6

%

22.0

%

20.9

%

20.3

%

19.9

%

Debt to Equity [4]

29.9

%

30.5

%

30.0

%

28.7

%

27.5

%

26.1

%

29.5

%

29.1

%

28.1

%

26.5

%

25.5

%

24.8

%

* Rating based on affiliation with Lincoln Life

[1] Stock prices include the 2-for-1split in June 1999

[2] Indicated dividend divided by net income

[3] Indicated dividend divided by the closing price

[4] Equity used in calculation excludes accumulated other comprehensive income (loss). Junior subordinated debentures issued to affiliated trusts (hybrid securities) are considered 50% debt and 50% equity.