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

                July 10, 2006                

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, including area code)

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.

As a result of the consummation of our merger with Jefferson-Pilot Corporation on April 3, 2006, we have changed our reporting segments for the quarter ended June 30, 2006. The change in our reporting segments is in accordance with Statement of Financial Accounting Standards No. 131, and reflects the manner in which we are currently organized for purposes of making operating decisions and assessing performance. Accordingly, we will begin reporting the new segments beginning with results for the quarter ended June 30, 2006.

To aid investors in their understanding of our new reporting segments prior to issuing our results for the quarter ended June 30, 2006, we are providing our previously issued statistical supplement for the quarter ended March 31, 2006, revised to reflect the new reporting segments in accordance with generally accepted accounting principles ("GAAP").  With the exception of a specific page dedicated to combined sales data, the revised data does not give effect to the merger with Jefferson-Pilot. A copy of the statistical supplement for the quarter ended March 31, 2006 revised for segmentation is attached as Exhibit 99.1 and is incorporated herein by reference.

The following is a brief description of our new business units and their related segments:

l  Individual Markets. The Individual Markets business unit operates through two segments, Individual Annuities and Individual Life. The Individual Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering individual fixed, variable and equity-indexed annuities. The Individual Life segment offers wealth protection and transfer opportunities through both single and survivorship versions of universal life, variable universal life, interest-sensitive whole life, term insurance, as well as a linked-benefit product, which is a universal life insurance policy linked with riders that provide for long-term care costs.

l Employer Markets. The Employer Markets business unit operates through two segments providing products and services to the employer-sponsored marketplace, offering group protection, retirement income, and executive benefits solutions. The Retirement Products & Other segment includes employer-sponsored variable and fixed annuities, mutual-fund based programs in the 401(k), 403(b), and 457 marketplaces (including the Lincoln Director^SM business reported in the Investment Management segment through the first quarter of 2006) and corporate owned life insurance. The Benefit Partners segment offers group life, disability, and dental insurance.

l     Investment Management.    The Investment Management business unit operates as a segment and, through Delaware Investments, provides a broad range of managed accounts and portfolios, mutual funds, subadvised funds, and other investment products to individual investors and to institutional investors such as private and public pension funds, foundations, and endowment funds. Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries.

   l     Lincoln UK. Lincoln UK is headquartered in Barnwood, Gloucester, England, and is licensed to do business throughout the United Kingdom. Lincoln UK primarily focuses on protecting and enhancing the value of its existing customer base. The segment accepts new deposits from existing relationships into existing and a limited number of new products. Lincoln UK’s product portfolio principally consists of unit-linked life and pension products, which are similar to U.S. produced variable life and annuity products, where the risk associated with the underlying investments is borne by the policyholders.

l     Lincoln Financial Media. The Lincoln Financial Media business unit operates as a segment and consists of radio and television broadcasting stations located in selected markets in the Southeastern and Western United States and also produces syndicated collegiate basketball and football sports programming.

We are also attaching as Exhibit 99.2 and incorporating herewith a copy of the slides in connection with our investor presentation to be held on July 11, 2006 at 11:00 a.m. (E.D.T), during which members of management will discuss the new reporting segment presentation and related matters, including GAAP purchase accounting.

Interested persons may listen to a webcast of the presentation and obtain a copy of the reissued statistical supplement and the slide presentation by going to our website--www.lfg.com by clicking “Shareholders & Analysts” and then “Webcasts.”

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

Item 9.01. Financial Statements and Exhibits

(c)   Exhibits.

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

Exhibit Number	Description
99.1	Lincoln National Corporation Statistical Supplement for the Quarter Ended March 31, 2006 - Revised for New Segmentation.
99.2	Slides in connection with the July 11, 2006 investor presentation.

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 and

Chief Accounting Officer

Date: July 10, 2006

EXHIBIT INDEX

Exhibit Number	Description
99.1	Lincoln National Corporation Statistical Supplement for the Quarter Ended March 31, 2006 - Revised for New Segmentation.
99.2	Slides in connection with the July 11, 2006 investor presentation.

EX-99

Lincoln Statistical Report

 Revised for New Segmentation

     first  Q U A R T E R

2006

The financial datea in this document is dated May 2, 2006 and has not been updated since that date, except for the impacts of re-segmentation and certain reclassifications. LNC does not intend to update this document.

Lincoln Financial Group
Statistical Report
First Quarter
2006
Table of Contents
LFG Analyst Coverage
Notes
Financial Highlights	1 - 4
Consolidated Expense Detail	5
Operating Results Summary	6
Consolidated Statements of Income	7
Consolidating Statements of Income from Operations	8-11
Consolidated Balance Sheet	12
Balance Sheet Data - Segment Highlights	13
Individual Markets
Individual Life Insurance
Income Statements & Operational Data	14
Operational Data	15
Account Value Rollforward	16
Individual Annuities
Income Statements & Operational Data	17
Account Value Rollforward	18
Account Values	19
Employer Markets
Retirement Products
Income Statements & Operational Data	20
Account Value Rollforward	21
Supplemental Data	22
Benefit Partners
Income Statements & Operational Data	23
Supplemental Data	24
Executive Benefits & Other
Income Statements & Operational Data	25
Account Value Roll Forward and Supplemental Data	26
Investment Management
Income Statements	27
Assets Under Management Roll Forward	28
Lincoln UK
Income Statements	29
Operational Data	30
Lincoln Financial Media	31
Other Operations	31
Domestic Retail Deposits / Account Balances / Net Flows	32
Investment Data
Assets Managed	33
Other Investment Data	34

			ii
NOTES
On April 3, 2006, LNC completed its previously announced merger with Jefferson Pilot Corporation ("JP"). Beginning in the second quarter of 2006, we will report results through the following segments: Individual Markets - Annuities, Individual Markets - Life Insurance, Employer Markets - Retirement Products & Other, Employer Markets - Benefit Partners, Investment Management, Lincoln UK and Lincoln Financial Media. This first quarter 2006 statistical supplement is being reissued to provide historical information for LNC for the four quarters of 2005 and the first quarter of 2006 in the same format as will be used beginning with second quarter 2006. In addition, as described below, certain reclassifications have been made to historically reported items to reflect the new reporting practices of LNC.
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,
	*	Gains and losses related to reinsurance embedded derivatives/trading account securities,
	*	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
		NOTE: Income from operations is lower than previously reported as it now includes restructuring charges previously excluded in the determination of income from operations
*	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 securities,
	*	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.
*	Sales as reported consist of the following:
	* Universal life ("UL"), including Moneyguard, and COLI - first year commissionable premium plus 5% of excess premium received, including UL internal replacements
	* Whole life and term - first year paid premium
	* Annuity - deposits from new and existing customers
	* Benefit Partners - annualized first year premium
	* Investment Management Retail Sales and Institutional Inflows - contributions, transfer in kind purchases, and reinvested dividends for new and existing accounts.
Reclassifications
Certain reclassifications have been made in the historical presentation of certain revenue and expenses. The principal reclassifications consist of the following:
*	Deferred Front End Loads ("DFEL") - capitalization and amortization of DFEL is reported as a component of expense assessments revenue. Depending on the segment, these had previously been reported as either other revenue, benefits expense or DAC amortization.
*	Investment Management Advisory Fees and Operating and Administrative Expenses - certain reclassifications have been made between revenue and expenses for such items as distribution fees and management fee waivers to conform to current industry practices.

3/31/2006																						PAGE 1
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
	For the Quarter Ended March 31												For the Year-to-Date Period Ended March 31
	2006			2005									2006			2005
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Income from Operations - By Segment
Individual Life Insurance	$	69.0		$	58.2		$	10.8			18.6	%	$	69.0		$	58.2		$	10.8			18.6	%
Individual Annuities		66.4			49.7			16.7			33.7	%		66.4			49.7			16.7			33.7	%
Individual Markets		135.4			107.9			27.6			25.5	%		135.4			107.9			27.6			25.5	%
Retirement Products		52.4			43.2			9.2			21.3	%		52.4			43.2			9.2			21.3	%
Benefit Partners		-			-			-			NM			-			-			-			NM
Executive Benefits & Other		7.5			3.3			4.2			127.2	%		7.5			3.3			4.2			127.2	%
Employer Markets		60.0			46.6			13.4			28.8	%		60.0			46.6			13.4			28.8	%
Investment Management		15.3			4.5			10.8			239.9	%		15.3			4.5			10.8			239.9	%
Lincoln UK		10.7			10.0			0.7			7.0	%		10.7			10.0			0.7			7.0	%
Lincoln Financial Media		-			-			-			NM			-			-			-			NM
Other Operations		0.1			2.4			(2.3	)		-94.1	%		0.1			2.4			(2.3	)		-94.1	%
Total Income from Operations (1)		221.6			171.3			50.3			29.3	%		221.6			171.3			50.3			29.3	%
Realized gains (losses)		(4.4	)		(4.7	)		0.3			6.4	%		(4.4	)		(4.7	)		0.3			6.4	%
Net gain (loss) on reinsurance
derivative/trading account securities		3.8			2.8			1.0			35.7	%		3.8			2.8			1.0			35.7	%
Gain on sale of subsidiaries/ businesses		-			9.3			(9.3	)		-100.0	%		-			9.3			(9.3	)		-100.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2			-			-			0.2			0.2			-			-
Net Income	$	221.2		$	178.9		$	42.3			23.6	%	$	221.2		$	178.9		$	42.3			23.6	%
Earnings per share (diluted)
Income from Operations (1)	$	1.25		$	0.97		$	0.28			28.9	%	$	1.25		$	0.97		$	0.28			28.9	%
Realized gains (losses)		(0.03	)		(0.03	)		-			-			(0.03	)		(0.03	)		-			-
Net gain (loss) on reinsurance
derivative/trading account securities		0.02			0.02			-			-			0.02			0.02			-			-
Gain on sale of subsidiaries/ businesses		-			0.05			(0.05	)		-100.0	%		-			0.05			(0.05	)		-100.0	%
Reserve development/ amortization of related deferred gain		-			-			-			NM			-			-			-			NM
Net Income	$	1.24		$	1.01		$	0.23			22.8	%	$	1.24		$	1.01		$	0.23			22.7	%
Operating Revenue- By Segment
Individual Life Insurance	$	500.6		$	475.6		$	25.1			5.3	%	$	500.6		$	475.6		$	25.1			5.3	%
Individual Annuities		374.8			339.8			35.0			10.3	%		374.8			339.8			35.0			10.3	%
Individual Markets		875.4			815.4			60.1			7.4	%		875.4			815.4			60.1			7.4	%
Retirement Products		246.8			231.3			15.5			6.7	%		246.8			231.3			15.5			6.7	%
Benefit Partners		-			-			-			NM			-			-			-			NM
Executive Benefits & Other		57.2			53.2			4.0			7.5	%		57.2			53.2			4.0			7.5	%
Employer Markets		304.0			284.5			19.5			6.9	%		304.0			284.5			19.5			6.9	%
Investment Management		139.5			109.8			29.7			27.1	%		139.5			109.8			29.7			27.1	%
Lincoln UK		69.5			74.6			(5.2	)		-6.9	%		69.5			74.6			(5.2	)		-6.9	%
Lincoln Financial Media		-			-			-			NM			-			-			-			NM
Other Operations		31.7			21.2			10.5			49.6	%		31.7			21.2			10.5			49.6	%
Total Operating Revenue		1,420.1			1,305.5			114.6			8.8	%		1,420.1			1,305.5			114.6			8.8	%
Realized gains (losses)		(6.9	)		(7.2	)		0.3			4.2	%		(6.9	)		(7.2	)		0.3			4.2	%
Gain (loss) on reinsurance
derivative/trading account securities		5.9			4.4			1.5			34.1	%		5.9			4.4			1.5			34.1	%
Gain on sale of subsidiaries/ businesses		-			14.2			(14.2	)		-100.0	%		-			14.2			(14.2	)		-100.0	%
Amortization of deferred gain-reserve development		0.3			0.3			-			-			0.3			0.3			-			-
Total Revenue	$	1,419.4		$	1,317.2		$	102.2			7.8	%	$	1,419.4		$	1,317.2		$	102.2			7.8	%
(1) Income from operations includes after-tax restructuring charges of $0.2 million, or -0- cents per share, and $1.3 million, or 1 cent per share, for the quarters ended March 31, 2006 and 2005, respectively.

3/31/2006																						PAGE 2
Financial Highlights
Unaudited (In Billions)
Operational Data by Segment	For the Quarter Ended March 31												For the Year-to-Date Period Ended March 31
	2006			2005									2006			2005
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Individual Markets
Individual Annuities
Gross deposits	$	2.136		$	1.761		$	0.375			21.3	%	$	2.136		$	1.761		$	0.375			21.3	%
Net flows		0.769			0.644			0.125			19.5	%		0.769			0.644			0.125			19.5	%
Account values (gross)		50.999			42.510			8.488			20.0	%		50.999			42.510			8.488			20.0	%
Account values (net of reinsurance)		48.797			40.219			8.578			21.3	%		48.797			40.219			8.578			21.3	%
Individual Life Insurance
Sales (in millions) (1)	$	67.9		$	65.4		$	2.6			3.9	%	$	67.9		$	65.4		$	2.6			3.9	%
Life insurance in-force		321.409			301.743			19.666			6.5	%		321.409			301.743			19.666			6.5	%
Account values		14.268			13.328			0.941			7.1	%		14.268			13.328			0.941			7.1	%
Employer Markets
Retirement Products
Gross deposits	$	0.923		$	0.860		$	0.063			7.3	%	$	0.923		$	0.860		$	0.063			7.3	%
Net flows		(0.081	)		(0.111	)		0.030			27.2	%		(0.081	)		(0.111	)		0.030			27.2	%
Account values		27.547			25.034			2.513			10.0	%		27.547			25.034			2.513			10.0	%
Alliance Mutual Funds		4.248			3.163			1.085			34.3	%		4.248			3.163			1.085			34.3	%
Account values including     Alliance Mutual Funds		31.795			28.197			3.597			12.8	%		31.795			28.197			3.597			12.8	%
Executive Benefits
COLI sales (in millions)	$	16.1		$	19.0		$	(2.9	)		-15.3	%	$	16.1		$	19.0		$	(2.9	)		-15.3	%
Life insurance in-force		7.979			7.234			0.745			10.3	%		7.979			7.234			0.745			10.3	%
Account values		1.387			1.138			0.249			21.9	%		1.387			1.138			0.249			21.9	%
Benefit Partners
Annualized sales (in millions)	$	-		$	-		$	-			NM		$	-		$	-		$	-			NM
Loss ratio		-			-			-			NM			-			-			-			NM
Combined ratio		-			-			-			NM			-			-			-			NM
Investment Management Segment
Retail deposits	$	4.019		$	3.566		$	0.453			12.7	%	$	4.019		$	3.566		$	0.453			12.7	%
Retail net flows		1.305			1.426			(0.121	)		-8.5	%		1.305			1.426			(0.121	)		-8.5	%
Institutional in-flows		5.044			2.193			2.851			130.0	%		5.044			2.193			2.851			130.0	%
Institutional net flows		3.592			1.345			2.247			167.1	%		3.592			1.345			2.247			167.1	%
Total Deposits and In-flows		9.063			5.759			3.305			57.4	%		9.063			5.759			3.305			57.4	%
Total Net Flows		4.898			2.771			2.126			76.7	%		4.898			2.771			2.126			76.7	%
Assets Under Management-      Retail and Institutional		86.428			59.080			27.347			46.3	%		86.428			59.080			27.347			46.3	%
Assets Under Management - General Account		41.995			42.992			(0.997	)		-2.3	%		41.995			42.992			(0.997	)		-2.3	%
Assets Under Management - Total Segment		128.423			102.073			26.351			25.8	%		128.423			102.073			26.351			25.8	%
Consolidated
Domestic Retail Deposits (2)	$	7.449		$	6.596		$	0.853			12.9	%	$	7.449		$	6.596		$	0.853			12.9	%
Domestic Retail Account Balances (2)		129.226			104.990			24.236			23.1	%		129.226			104.990			24.236			23.1	%
Domestic Retail Net Flows (2)		2.635			2.565			0.069			2.7	%		2.635			2.565			0.069			2.7	%
Domestic Deposits (3)		12.236			8.414			3.822			45.4	%		12.236			8.414			3.822			45.4	%
Domestic Net Flows (3)		6.188			3.787			2.401			63.4	%		6.188			3.787			2.401			63.4	%
Assets Under Management (3)		182.995			145.907			37.088			25.4	%		182.995			145.907			37.088			25.4	%
(1) Sales for Individual Life Insurance consist of first year commissionable premium for Universal life ("UL"), including Moneyguard, and COLI plus 5% of excess premium received, including UL internal replacements, and first year paid premiums for Whole life and Term products.
(2) Includes amounts for the Individual Markets annuity and life insurance products and amounts for Investment Management's retail operations.
(3) Includes amounts for Employer Markets Retirement and Executive Benefits products and Investment Management's Institutional business.

3/31/2006																						PAGE 3
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
	For the Quarter Ended March 31												For the Year-to-date Period Ended March 31
	2006			2005									2006			2005
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
Balance Sheet Assets - End of Period	$	128,472.0		$	116,407.4		$	12,064.6			10.4	%	$	128,472.0		$	116,407.4		$	12,064.6			10.4	%
Shareholders' Equity
Beg of period (including AOCI)	$	6,384.4		$	6,175.6		$	208.8					$	6,384.4		$	6,175.6		$	208.8
End of period (including AOCI)		6,338.2			6,043.0			295.3						6,338.2			6,043.0			295.3
End of period (excluding AOCI)		6,053.2			5,365.8			687.4						6,053.2			5,365.8			687.4
Average equity (excluding AOCI)		5,954.9			5,305.4			649.5						5,954.9			5,305.4			649.5
Return on Equity
Net income/average equity (excluding AOCI)		14.9	%		13.5	%								14.9	%		13.5	%
Inc from operations/average equity      (excluding AOCI)		14.9	%		12.9	%								14.9	%		12.9	%
Return on Capital
Inc from operations/average capital		12.8	%		10.8	%								12.8	%		10.8	%
Common Stock Outstanding
Average for the period - diluted		177.9			176.6			1.3			0.7	%		177.9			176.6			1.3			0.7	%
End of period - assuming conv of preferreds		176.1			173.9			2.2			1.3	%		176.1			173.9			2.2			1.3	%
End of period - diluted		178.5			176.5			1.9			1.1	%		178.5			176.5			1.9			1.1	%
Book value (including AOCI)	$	35.99		$	34.74		$	1.25			3.6	%	$	35.99		$	34.74		$	1.25			3.6	%
Book value (excluding AOCI)	$	34.37		$	30.85		$	3.52			11.4	%	$	34.37		$	30.85		$	3.52			11.4	%
Cash Returned to Shareholders
Share repurchase - dollar amount	$	-		$	34.6		$	(34.6	)				$	-		$	34.6		$	(34.6	)
Dividends declared to shareholders		67.5			63.7			3.7						67.5			63.7			3.7
Total Cash Returned to Shareholders	$	67.5		$	98.4		$	(30.9	)				$	67.5		$	98.4		$	(30.9	)
Share repurchase - number of shares		-			0.755			(0.755	)					-			0.755			(0.755	)
Dividend declared on common stock -     per share	$	0.380		$	0.365		$	0.015			4.1	%	$	0.380		$	0.365		$	0.015			4.1	%
Dividend payout ratio		30.6	%		36.0	%								30.6	%		36.0	%
Annualized yield		2.8	%		3.2	%								2.8	%		3.2	%
Comprehensive Income (Loss)
Net income	$	221.2		$	178.9								$	221.2		$	178.9
Net unrealized gains (losses) on securities		(276.4	)		(240.0	)								(276.4	)		(240.0	)
Losses on derivatives		27.8			(6.3	)								27.8			(6.3	)
Foreign currency translation		6.3			(7.8	)								6.3			(7.8	)
Minimum pension liability adjustment		(0.6	)		0.6									(0.6	)		0.6
Comprehensive Income (Loss)	$	(21.6	)	$	(74.6	)							$	(21.6	)	$	(74.6	)
Ratios:
Debt to total capitalization		15.9	%		20.3	%								15.9	%		20.3	%
Debt to equity		18.9	%		25.5	%								18.9	%		25.5	%
Ratings as of July 7, 2006:
		A.M. Best			Fitch			Moody's			Standard & Poors
Senior Debt Ratings:		a			A			A3			A+
Claims Paying Ratings:
Lincoln National Life Insurance Company		A+			AA			Aa3			AA
First Penn-Pacific Life Insurance Company		A+			AA			A1			AA-
Lincoln Life & Annuity Company of New York		A+			AA			Aa3			AA
Jefferson-Pilot Life Insurance Company		A+			AA			Aa3			AA
Jefferson-Pilot Financial Insurance Company		A+			AA			Aa3			AA
Jefferson-Pilot LifeAmerica Insurance Company		A+			AA			NR			AA

3/31/2006											PAGE 4
Lincoln National Corporation
Combined Production Data (1)
Unaudited
	Three Months Ended
	Mar		Jun		Sep		Dec		Mar		%
	2005		2005		2005		2005		2006		Change
Individual Markets
Individual Life Insurance
(millions)
Sales by Product
Universal Life
Excluding MoneyGuard	$	84.3	$	101.9	$	118.7	$	118.4	$	83.7		-0.8	%
MoneyGuard		7.4		8.0		9.1		9.4		7.7		4.4	%
Total		91.7		109.9		127.8		127.8		91.4		-0.3	%
Variable universal life		18.3		17.1		14.5		20.6		16.4		-10.0	%
Whole life		1.4		0.7		0.8		0.9		1.2		-10.0	%
Term		11.3		10.7		10.5		11.1		11.5		1.5	%
Total Sales by Product	$	122.7	$	138.3	$	153.5	$	160.3	$	120.6		-1.7	%
Individual Annuity Deposits
(billions)
Fixed	$	0.731	$	0.839	$	0.784	$	0.736	$	0.722		-1.2	%
Variable		1.289		1.329		1.410		1.524		1.666		29.2	%
Total Individual Markets	$	2.021	$	2.168	$	2.194	$	2.260	$	2.389		18.2	%
Employer Markets
Annuities
(billions)
Fixed	$	0.298	$	0.286	$	0.259	$	0.240	$	0.257		-13.8	%
Variable		0.562		0.524		0.527		0.642		0.666		18.5	%
		0.860		0.810		0.786		0.882		0.923		7.3	%
Alliance Mutual Funds Deposits		0.421		0.222		0.200		0.223		0.318		-24.5	%
Total Annuity and Alliance Mutual Funds	$	1.281	$	0.032	$	0.986	$	1.105	$	1.241		-3.1	%
Benefit Partners
(millions)
Annualized Sales
Life	$	22.3	$	15.6	$	19.3	$	29.4	$	23.6		5.9	%
Disability		38.8		27.2		30.5		44.5		34.2		-11.8	%
Dental		9.5		9.4		8.0		6.9		6.2		-34.4	%
Executive Benefits
COLI sales - millions	$	19.0	$	7.8	$	17.1	$	10.1	$	16.1		-15.2	%
Investment Management
Sales and Inflows
(billions)
Retail
Annuities	$	0.713	$	0.701	$	0.642	$	0.713	$	0.885		24.1	%
Mutual funds		1.520		1.487		1.331		1.657		1.329		-12.6	%
Managed accounts & other		1.333		2.146		1.599		1.260		1.806		35.4	%
		3.566		4.334		3.572		3.629		4.019		12.7	%
Institutional		2.193		6.110		3.166		4.833		5.044		130.0	%
Total Sales and Inflows	$	5.759	$	10.444	$	6.738	$	8.462	$	9.063		57.4	%
Total Annuity & Alliance
Mutual Fund Deposits
(billions)

Fixed Annuities
Individual	$	0.731	$	0.839	$	0.784	$	0.736	$	0.722	-1.2	%
Employer Markets		0.298		0.286		0.259		0.240		0.257	-13.8	%
		1.029		1.125		1.043		0.976		0.979	-4.9	%
Variable Annuities
Individual		1.289		1.329		1.410		1.524		1.666	29.2	%
Employer Markets		0.562		0.524		0.527		0.642		0.666	18.5	%
		1.851		1.853		1.937		2.166		2.332	26.0	%
Total Annuities		2.881		2.978		2.980		3.142		3.312	15.0	%
Alliance Mutual Funds		0.421		0.222		0.200		0.223		0.318	-24.5	%
Total Annuity and Alliance Mutual Funds	$	3.302	$	3.200	$	3.180	$	3.365	$	3.630	9.9	%

⁽¹⁾ This schedule combines the previously reported data for LNC and JP and does not reflect any adjustments that may have resulted had the merger been completed prior to the periods presented.

3/31/2006																						PAGE 5
Consolidated Expense Detail
Unaudited (In Millions)
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Commissions	$	143.2		$	161.3		$	176.2		$	176.9		$	179.9			25.7	%	$	143.2		$	179.9			25.7	%
General and administrative expenses:
General and administrative expenses		335.1			362.6			384.7			374.4			336.5			0.4	%		335.1			336.5			0.4	%
Merger-related expenses		-			-			-			-			-			NM			-			-			NM
Total general and administrative expenses		335.1			362.6			384.7			374.4			336.5			0.0			335.1			336.5			0.0
Restructuring charges		1.9			23.2			2.7			1.5			0.3			-84.2	%		1.9			0.3			-84.2	%
Taxes, licenses and fees		30.9			23.1			24.1			17.2			33.3			7.8	%		30.9			33.3			7.8	%
Interest		22.2			21.8			21.4			21.8			21.5			-3.2	%		22.2			21.5			-3.2	%
Total commissions and expenses incurred		533.3			592.0			609.1			591.8			571.5			7.2	%		533.3			571.5			7.2	%
Less: commissions and expenses capitalized		(211.4	)		(224.0	)		(239.3	)		(263.0	)		(244.5	)		0.4	%		(211.4	)		(244.5	)		0.4	%
Amortization:
DAC/VOBA Amortization		154.5			142.3			99.1			144.8			165.0			6.8	%		154.5			165.0			6.8	%
Amortization of intangibles		1.9			1.9			2.0			2.0			2.0			5.3	%		1.9			2.0			5.3	%
Other		-			-			-			-			-			NM			-			-			NM
Total amortization		156.4			144.2			101.1			146.8			167.0			6.8	%		156.4			167.0			6.8	%
Broker/Dealer Commissions		29.7			32.5			29.9			31.2			28.8			-3.2	%		29.7			28.8			-3.2	%
Total net expenses	$	508.0		$	544.7		$	500.9		$	506.8		$	522.7			2.9	%	$	508.0		$	522.7			2.9	%
General & administrative expenses																	(Basis Points	)								(Basis Points	)
basis points on assets - Annualized		7			8			8			8			7			(1	)		7			7			(1	)
Merger-related expenses:
Severance and employee-related charges	$	-		$	-		$	-		$	-		$	-			0.0	%	$	-		$	-			0.0	%
Systems integration and related expenses		-			-			-			-			-			0.0	%		-			-			0.0	%
Other expenses		-			-			-			-			-			0.0	%		-			-			0.0	%
Total Merger-related expenses	$	-		$	-		$	-		$	-		$	-			0.0	%	$	-		$	-			0.0	%

3/31/2006																									PAGE 6
Operating Results Summary
Unaudited [Millions of Dollars, except Common Share Data]
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Individual Life Insurance	$	475.6		$	475.4		$	458.5		$	501.1		$	500.6			5.3	%	$	475.6		$	500.6			5.3	%
Individual Annuities		339.8			348.2			362.4			372.1			374.8			10.3	%		339.8			374.8			10.3	%
Individual Markets		815.4			823.6			820.9			873.2			875.4			7.4	%		815.4			875.4			7.4	%
Retirement Products		231.3			232.5			236.8			239.2			246.8			6.7	%		231.3			246.8			6.7	%
Benefit Partners		-			-			-			-			-			NM			-			-			NM
Executive Benefits & Other		53.2			53.2			59.4			61.6			57.2			7.5	%		53.2			57.2			7.5	%
Employer Markets		284.5			285.7			296.2			300.8			304.0			6.9	%		284.5			304.0			6.9	%
Investment Management		109.8			114.4			123.2			127.9			139.5			27.1	%		109.8			139.5			27.1	%
Lincoln UK		74.6			78.4			102.8			62.5			69.5			-6.9	%		74.6			69.5			-6.9	%
Lincoln Financial Media		-			-			-			-			-			NM			-			-			NM
Other Operations		21.2			79.2			45.9			28.9			31.7			49.6	%		21.2			31.7			49.6	%
Total Operating Revenue		1,305.5			1,381.4			1,389.1			1,393.4			1,420.1			8.8	%		1,305.5			1,420.1			8.8	%
Realized gains (losses) on investments and derivatives		(7.2	)		(4.0	)		(1.6	)		(9.3	)		(6.9	)		4.2	%		(7.2	)		(6.9	)		4.2	%
Net gain (loss) on reinsurance
derivative/trading account securities		4.4			(5.1	)		5.3			-			5.9			34.1	%		4.4			5.9			34.1	%
Gain on sale of subsidiaries/ businesses		14.2			-			-			-			-			-100.0	%		14.2			-			-100.0	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			0.3			-			0.3			0.3			-
Total Revenue	$	1,317.2		$	1,372.6		$	1,393.1		$	1,384.4		$	1,419.4			7.8	%	$	1,317.2		$	1,419.4			7.8	%
Income from Operations (1)
Individual Life Insurance	$	58.2		$	62.6		$	64.9		$	73.8		$	69.0			18.6	%	$	58.2		$	69.0			18.6	%
Individual Annuities		49.7			52.5			79.0			70.9			66.4			33.7	%		49.7			66.4			33.7	%
Individual Markets		107.9			115.1			144.0			144.7			135.4			25.5	%		107.9			135.4			25.5	%
Retirement Products		43.2			45.3			53.5			45.1			52.4			21.3	%		43.2			52.4			21.3	%
Benefit Partners		-			-			-			-			-			NM			-			-			NM
Executive Benefits & Other		3.3			4.3			2.4			9.5			7.5			127.2	%		3.3			7.5			127.2	%
Employer Markets		46.5			49.6			55.9			54.6			60.0			29.0	%		46.5			60.0			29.0	%
Investment Management		4.5			(1.4	)		4.9			9.0			15.3			239.9	%		4.5			15.3			239.9	%
Lincoln UK		10.0			10.3			9.6			13.5			10.7			7.0	%		10.0			10.7			7.0	%
Lincoln Financial Media		-			-			-			-			-			NM			-			-			NM
Other Operations		2.4			30.1			12.1			9.5			0.1			-94.1	%		2.4			0.1			-94.1	%
Income from Operations (1)		171.3			203.6			226.4			231.3			221.6			29.3	%		171.3			221.6			29.3	%
Realized gains (losses) on investments and derivatives		(4.7	)		(2.7	)		(1.1	)		(6.1	)		(4.4	)		6.4	%		(4.7	)		(4.4	)		6.4	%
Net gain (loss) on reinsurance
derivative/trading account securities		2.8			(3.3	)		3.5			-			3.8			35.7	%		2.8			3.8			35.7	%
Gain on sale of subsidiaries/ businesses		9.3			-			-			-			-			-100.0	%		9.3			-			-100.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2			0.2			0.2			0.2			-			0.2			0.2			-
Loss on early retirement of debt		-			-			-			-			-			NM			-			-			NM
Income Before Cumulative Effect of
Accounting Change		178.9			197.9			228.9			225.3			221.2			23.6	%		178.9			221.2			24	%
Cumulative effect of accounting change,    net of income tax		-			-			-			-			-						-			-
Net Income	$	178.9		$	197.9		$	228.9		$	225.3		$	221.2			23.6	%	$	178.9		$	221.2			24	%
OTHER DATA
		Three Months Ended																		Year-to-Date
		Mar			Jun			Sep			Dec			Mar						Mar			Mar
		2005			2005			2005			2005			2006						2005			2006
Shareholders' Equity
Beg of period (including AOCI)	$	6,175.6		$	6,042.9		$	6,363.5		$	6,284.4		$	6,384.4					$	6,175.6		$	6,384.4
End of period (including AOCI)		6,042.9			6,363.5			6,284.4			6,384.4			6,338.2						6,042.9			6,338.2
End of period (excluding AOCI)		5,365.8			5,448.3			5,663.5			5,856.6			6,053.2						5,365.8			6,053.2
Average equity (excluding AOCI)		5,305.4			5,407.1			5,555.9			5,760.0			5,954.9						5,305.4			5,954.9
Common Shares Outstanding
Average for the period - diluted		176.6			175.4			175.8			176.6			177.9						176.6			177.9
End of period - diluted		176.5			174.8			176.3			176.9			178.5						176.5			178.5
Per Share Data (Diluted)
Net Income	$	1.01		$	1.13		$	1.30		$	1.28		$	1.24					$	1.01		$	1.24
Income from Operations (1)		0.97			1.16			1.29			1.31		$	1.25						0.97		$	1.25
Shareholders' Equity Per Share
Shareholders' Equity (including AOCI)		34.7			36.9			36.2			36.7			36.0						34.7			36.0
Shareholders' Equity (excluding AOCI)		30.8			31.6			32.6			33.7			34.4						30.8			34.4
Dividends declared (Common Stock)		0.365			0.365			0.365			0.380			0.380						0.365			0.380
Return on Equity
Net Income/Average Equity		13.5	%		14.6	%		16.5	%		15.6	%		14.9	%					13.5	%		14.9	%
Inc from Operations/Average Equity		12.9	%		15.1	%		16.3	%		16.1	%		14.9	%					12.9	%		14.9	%
Market Value of Common Stock
Highest price	$	49.42		$	47.77		$	52.42		$	54.41		$	57.97					$	49.42		$	57.97
Lowest price		44.36			41.59			46.59			46.94			52.00						44.36			52.00
Closing price	$	45.14		$	46.92		$	52.02		$	53.03		$	54.59					$	45.14		$	54.59

⁽¹⁾ Income from operations includes after-tax restructuring charges of $1.3 million, or 1 cent per share, for the first quarter of 2005, $15.0 million, or 9 cents per share, for the second quarter of 2005, $1.8 million, or 1 cent per share, for the third quarter of 2005, $1.1 million, or 1 cent per share, for the fourth quarter of 2005 and $0.2 million, or -0- cents per share, for the first quarter of 2006

3/31/2006																									PAGE 7
Consolidated Statements of Income
Unaudited [Millions of Dollars]
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Revenue
Premiums	$	70.4		$	72.6		$	83.1		$	82.4		$	78.4			11.4	%	$	70.4		$	78.4			11.4	%
Surrender charges		20.1			16.5			18.6			18.0			18.7			-7.0	%		20.1			18.7			-7.0	%
Mortality assessments		142.3			142.1			138.8			145.1			146.2			2.7	%		142.3			146.2			2.7	%
Expense assessments		259.7			269.4			292.9			296.0			310.8			19.7	%		259.7			310.8			19.7	%
Investment advisory fees		55.0			62.0			67.9			70.9			77.8			41.5	%		55.0			77.8			41.5	%
Communications revenue		-			-			-			-			-			NM			-			-			NM
Net investment income		659.9			703.7			670.9			668.2			678.4			2.8	%		659.9			678.4			2.8	%
Other revenue and fees		79.1			96.2			97.8			93.7			91.1			15.2	%		79.1			91.1			15.2	%
Amortization of deferred gain		18.9			18.9			18.9			18.9			18.8			-0.9	%		18.9			18.8			-0.9	%
Amortization of deferred gain-reserve     development		0.3			0.3			0.3			0.3			0.3			-			0.3			0.3			-
Realized gains (losses)		11.4			(9.1	)		3.7			(9.3	)		(1.0	)		NM			11.4			(1.0	)		NM
Total Revenue		1,317.1			1,372.6			1,393.1			1,384.3			1,419.4			7.8	%		1,317.1			1,419.4			7.8	%
Benefits and Expenses
Insurance benefits		191.2			209.7			206.7			198.0			200.4			4.9	%		191.2			200.4			4.9	%
Interest credited to contractholder funds		380.1			380.1			382.6			383.4			381.3			0.3	%		380.1			381.3			0.3	%
Communications expenses		-			-			-			-			-			NM			-			-			NM
Operating and acquisition expenses		454.9			499.9			455.3			467.9			467.9			2.8	%		454.9			467.9			2.8	%
Taxes, licenses and fees		30.9			23.1			24.1			17.2			33.3			7.8	%		30.9			33.3			7.8	%
Interest and debt expense		22.2			21.8			21.4			21.8			21.5			-3.0	%		22.2			21.5			-3.0	%
Total Benefits and Expenses		1,079.2			1,134.6			1,090.1			1,088.3			1,104.4			2.3	%		1,079.2			1,104.4			2.3	%
Income Before Federal Income Tax		237.8			237.9			302.9			296.0			315.0			32.5	%		237.8			315.0			32.5	%
Federal income taxes		58.9			40.1			74.0			70.6			93.9			59.4	%		58.9			93.9			59.4	%
Net Income	$	178.9		$	197.9		$	228.9		$	225.3		$	221.2			23.6	%	$	178.9		$	221.2			23.6	%
Roll Forward of Deferred Acquisition Costs		Three Months Ended																		Year-to-Date
& Value of Business Acquired		Mar			Jun			Sep			Dec			Mar						Mar			Mar
		2005			2005			2005			2005			2006						2005			2006
Balance at beginning of period	$	4,590.3		$	4,841.0		$	4,657.4		$	4,989.1		$	5,163.3					$	4,590.3		$	5,163.3
Deferral		211.4			224.0			239.3			263.0			244.5						211.4			244.5
Amortization		(154.5	)		(142.3	)		(99.1	)		(144.8	)		(165.0	)					(154.5	)		(165.0	)
Included in Total Benefits and Expenses		56.9			81.7			140.1			118.2			79.6						56.9			79.6
Adjustment related to realized (gains) losses
on available-for-sale securities		(11.7	)		(14.3	)		(13.8	)		(8.7	)		(10.9	)					(11.7	)		(10.9	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		215.7			(204.8	)		217.4			84.7			194.2						215.7			194.2
Foreign currency translation adjustment		(10.2	)		(46.2	)		(12.1	)		(20.0	)		7.7						(10.2	)		7.7
Other		-			-			-			-			-						-			-
Business acquired		-			-			-			-			-						-			-
Balance at end of period	$	4,841.0		$	4,657.4		$	4,989.1		$	5,163.3		$	5,433.8					$	4,841.0		$	5,433.8
Roll Forward of Deferred Front-End Load
Balance at beginning of period	$	814.2		$	811.4		$	792.5		$	786.9		$	795.7					$	814.2		$	795.7
Deferral		30.5			31.0			30.2			33.2			31.1						30.5			31.1
Amortization		(28.0	)		(26.7	)		(29.8	)		(15.0	)		(24.7	)					(28.0	)		(24.7	)
Included in Expense Assessments		2.4			4.4			0.4			18.2			6.4						2.4			6.4
Foreign currency translation adjustment		(5.2	)		(23.3	)		(5.9	)		(9.5	)		3.8						(5.2	)		3.8
Balance at end of period	$	811.4		$	792.5		$	786.9		$	795.7		$	805.8					$	811.4		$	805.8
Roll Forward of Deferred Sales Inducements
Balance at beginning of period	$	85.5		$	94.9		$	106.6		$	118.1		$	129.4					$	85.5		$	129.4
Deferral		13.3			15.5			15.1			15.6			15.7						13.3			15.7
Amortization		(3.9	)		(3.8	)		(3.6	)		(4.4	)		(5.2	)					(3.9	)		(5.2	)
Included in Income from Operations		9.4			11.7			11.5			11.3			10.5						9.4			10.5
Balance at end of period	$	94.9		$	106.6		$	118.1		$	129.4		$	139.9					$	94.9		$	139.9

3/31/2006	PAGE 8
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
For the Quarter Ended March 31, 2006

	Individual Markets				Employer Markets
	Life		Annuities		Retirement Products		Benefit Partners		Executive Benefits & Other		Invest-ment Manage- ment		Lincoln UK		Lincoln Financial Media		Other Operations			Consolid-ating Adjust-ments			Consolid-ated
Operating Revenue
Premiums	$	51.1	$	9.3	$	-	$	-	$	1.1	$	-	$	16.5	$	-	$	0.3		$	-		$	78.4
Surrender charges		10.3		6.2		2.3		-		0.0		-		-		-		-			-			18.7
Mortality assessments		135.6		-				-		2.8		-		7.8		-		-			-			146.2
Expense assessments		54.3		168.0		56.9		-		3.3		-		28.0		-		0.3			-			310.8
Investment advisory fees		-		-		-		-		-		102.9		-		-		-			(25.1	)		77.8
Communications revenue		-		-		-		-		-		-		-		-		-			-			-
Net investment income		239.5		148.0		185.7		-		48.7		0.1		17.0		-		40.1			(0.8	)		678.4
Amortization of deferred gain		-		-		-		-		-		-		-		-		18.8			-			18.8
Other revenue and fees		9.7		43.4		1.9		-		1.4		36.6		0.1		-		1.2			(3.1	)		91.1
Total Operating Revenue		500.6		374.8		246.8		-		57.2		139.5		69.5		-		60.7			(29.0	)		1,420.1
Operating Expenses
Insurance benefits		120.2		20.4		-		-		32.8		-		25.4		-		1.6			-			200.4
Interest credited to contractholder funds		142.2		95.1		100.7		-		9.3		-		-		-		33.9			-			381.3
Communications cost of sales		-		-		-		-		-		-		-		-		-			-			-
Operating and acquisition expenses		116.5		167.1		68.0		-		3.5		111.3		27.6		-		2.4			(28.5	)		467.9
Taxes, licenses and fees		16.3		5.4		2.9		-		1.1		4.8		0.0		-		2.7			-			33.3
Interest		-		-		-		-		-		-		-		-		22.0			(0.5	)		21.5
Total Operating Expenses		395.3		288.1		171.7		-		46.7		116.1		52.9		-		62.7			(29.0	)		1,104.4
Income (loss) from Operations before Federal income taxes		105.3		86.7		75.2		-		10.5		23.5		16.5		-		(2.0	)		-			315.7
Federal income taxes		36.3		20.3		22.7		-		3.0		8.2		5.8		-		(2.2	)		-			94.1
Income from Operations	$	69.0	$	66.4	$	52.4	$	-	$	7.5	$	15.3	$	10.7	$	-	$	0.1		$	-		$	221.6

3/31/2006																							PAGE 9
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
For the Quarter Ended March 31, 2005
	Individual Markets				Employer Benefits
	Life		Annuities		Retirement Products		Benefit Partners		Executive Benefits & Other		Invest- ment Manage- ment		Lincoln UK		Lincoln Financial Media		Other Operations			Consolid- ating Adjust- ments			Consolid- ated
Operating Revenue
Premiums	$	45.5	$	10.5	$	-	$	-	$	0.0	$	-	$	14.6	$	-	$	(0.3	)	$	-		$	70.4
Surrender charges		12.0		5.3		2.8		-		0.0		-		-		-		-			-			20.1
Mortality assessments		131.1		-		-		-		2.2		-		9.0		-		-			-			142.3
Expense assessments		50.1		124.5		50.0		-		4.4		-		30.7		-		-			-			259.7
Investment advisory fees		-		-		-		-		-		79.8		-		-		-			(24.8	)		55.0
Communications revenue		-		-		-		-		-		-		-		-		-			-			-
Net investment income		223.9		157.0		176.1		-		45.3		0.0		20.3		-		38.2			(1.0	)		659.9
Amortization of deferred gain		-		-		-		-		-		-		-		-		18.9			-			18.9
Other revenue and fees		12.9		42.5		2.4		-		1.3		30.0		0.1		-		1.2			(11.1	)		79.2
Total Operating Revenue		475.6		339.8		231.3		-		53.2		109.8		74.6		-		58.1			(36.9	)		1,305.5
Operating Expenses
Insurance benefits		113.8		21.2		-		-		31.8		-		25.1		-		(0.8	)		-			191.2
Interest credited to contractholder funds		138.9		100.1		99.6		-		9.3		-		-		-		32.1			-			380.1
Communications cost of sales		-		-		-		-		-		-		-		-		-			-			-
Operating and acquisition expenses		120.6		151.1		67.6		-		6.9		99.8		34.0		-		9.4			(36.2	)		453.3
Taxes, licenses and fees		16.1		6.0		4.2		-		1.1		3.1		-		-		1.8			-			32.4
Interest		-		-		-		-		-		-		-		-		22.9			(0.7	)		22.2
Total Operating Expenses		389.3		278.5		171.5		-		49.1		103.0		59.2		-		65.5			(36.9	)		1,079.2
Income from Operations before Federal income taxes		86.3		61.3		59.8		-		4.1		6.8		15.5		-		(7.5	)		-			226.3
Federal income taxes		28.1		11.7		16.6		-		0.7		2.3		5.4		-		(10.0	)		-			54.8
Income from Operations	$	58.2	$	49.7	$	43.2	$	-	$	3.3	$	4.5	$	10.0	$	-	$	2.5		$	0.0		$	171.5

3/31/2006																				PAGE 10
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
Year-to-Date Period Ended March 31, 2006
	Individual Markets				Employer Markets
	Life		Annuities		Retirement Products		Benefit Partners		Executive Benefits & Other		Invest- ment Manage-ment		Lincoln UK		Lincoln Financial Media		Other Operations			Consolid- ating Adjust- ments			Consolid-ated
Operating Revenue
Premiums	$	51.1	$	9.3	$	-	$	-	$	1.1	$	-	$	16.5	$	-	$	0.3		$	-		$	78.4
Surrender charges		10.3		6.2		2.3		-		0.0		-		-		-		-			-			18.7
Mortality assessments		135.6		-				-		2.8		-		7.8		-		-			-			146.2
Expense assessments		54.3		168.0		56.9		-		3.3		-		28.0		-		0.3			-			310.8
Investment advisory fees		-		-		-		-		-		102.9		-		-		-			(25.1	)		77.8
Communications revenue		-		-		-		-		-		-		-		-		-			-			-
Net investment income		239.5		148.0		185.7		-		48.7		0.1		17.0		-		40.1			(0.8	)		678.4
Amortization of deferred gain		-		-		-		-		-		-		-		-		18.8			-			18.8
Other revenue and fees		9.7		43.4		1.9		-		1.4		36.6		0.1		-		1.2			(3.1	)		91.1
Total Operating   Revenue		500.6		374.8		246.8		-		57.2		139.5		69.5		-		60.7			(29.0	)		1,420.1
Operating Expenses
Insurance benefits		120.2		20.4		-		-		32.8		-		25.4		-		1.6			-			200.4
Interest credited to               contractholder funds		142.2		95.1		100.7		-		9.3		-		-		-		33.9			-			381.3
Communications cost                 of sales		-		-		-		-		-		-		-		-		-			-			-
Operating and acquisition                 expenses		116.5		167.1		68.0		-		3.5		111.3		27.6		-		2.4			(28.5	)		467.9
Taxes, licenses and fees		16.3		5.4		2.9		-		1.1		4.8		0.0		-		2.7			-			33.3
Interest		-		-		-		-		-		-		-		-		22.0			(0.5	)		21.5
Total Operating                        Expenses		395.3		288.1		171.7		-		46.7		116.1		52.9		-		62.7			(29.0	)		1,104.4
Income (loss) from Operations before      Federal income taxes		105.3		86.7		75.2		-		10.5		23.5		16.5		-		(2.0	)		-			315.7
Federal income taxes		36.3		20.3		22.7		-		3.0		8.2		5.8		-		(2.2	)		-			94.1
Income from Operations	$	69.0	$	66.4	$	52.4	$	-	$	7.5	$	15.3	$	10.7	$	-	$	0.1		$	-		$	221.6

3/31/2006																							PAGE 11
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
Year-to-Date Period Ended March 31, 2005
	Individual Markets				Employer Benefits
	Life		Annuities		Retirement Products		Benefit Partners		Executive Benefits & Other		Invest- ment Manage- ment		Lincoln UK		Lincoln Financial Media		Other Operations			Consolid-ating Adjust- ments			Consolid-ated
Operating Revenue
Premiums	$	45.5	$	10.5	$	-	$	-	$	0.0	$	-	$	14.6	$	-	$	(0.3	)	$	-		$	70.4
Surrender charges		12.0		5.3		2.8		-		0.0		-		-		-		-			-			20.1
Mortality assessments		131.1		-		-		-		2.2		-		9.0		-		-			-			142.3
Expense assessments		50.1		124.5		50.0		-		4.4		-		30.7		-		-			-			259.7
Investment advisory fees		-		-		-		-		-		79.8		-		-		-			(24.8	)		55.0
Communications revenue		-		-		-		-		-		-		-		-		-			-			-
Net investment income		223.9		157.0		176.1		-		45.3		0.0		20.3		-		38.2			(1.0	)		659.9
Amortization of deferred gain		-		-		-		-		-		-		-		-		18.9			-			18.9
Other revenue and fees		12.9		42.5		2.4		-		1.3		30.0		0.1		-		1.2			(11.1	)		79.2
Total Operating Revenue		475.6		339.8		231.3		-		53.2		109.8		74.6		-		58.1			(36.9	)		1,305.5
Operating Expenses
Insurance benefits		113.8		21.2		-		-		31.8		-		25.1		-		(0.8	)		-			191.2
Interest credited to     contractholder funds		138.9		100.1		99.6		-		9.3		-		-		-		32.1			-			380.1
Communications cost of sales		-		-		-		-		-		-		-		-		-			-			-
Operating and     acquisition expenses		120.6		151.1		67.6		-		6.9		99.8		34.0		-		9.4			(36.2	)		453.3
Taxes, licenses and fees		16.1		6.0		4.2		-		1.1		3.1		-		-		1.8			-			32.4
Interest		-		-		-		-		-		-		-		-		22.9			(0.7	)		22.2
Total Operating Expenses		389.3		278.5		171.5		-		49.1		103.0		59.2		-		65.5			(36.9	)		1,079.2
Income from Operations before       Federal income taxes		86.3		61.3		59.8		-		4.1		6.8		15.5		-		(7.5	)		-			226.3
Federal income taxes		28.1		11.7		16.6		-		0.7		2.3		5.4		-		(10.0	)		-			54.8
Income from Operations	$	58.2	$	49.7	$	43.2	$	-	$	3.3	$	4.5	$	10.0	$	-	$	2.5		$	0.0		$	171.5

3/31/2006	PAGE 12
Consolidated Balance Sheet
Unaudited [Millions of Dollars, except Common Share Data]

	Mar			Jun			Sep			Dec			Mar
	2005			2005			2005			2005			2006
ASSETS
Investments
Corporate bonds	$	26,305.9		$	26,757.7		$	26,453.6		$	25,860.7		$	25,418.0
U.S. government bonds		165.7			174.4			158.3			161.8			173.4
Foreign government bonds		1,296.7			1,248.0			1,195.0			1,203.3			1,169.7
Mortgage backed securities		6,193.8			6,503.0			6,237.1			5,951.2			5,868.8
State and municipal bonds		156.3			160.8			157.9			128.8			126.0
Preferred stocks - redeemable		106.5			131.2			123.0			137.4			136.9
Common stocks		65.2			64.2			62.2			55.9			61.0
Preferred stocks-equity		89.6			90.3			89.4			88.8			115.0
Total AFS Securities		34,379.6			35,129.6			34,476.5			33,587.9			33,068.8
Trading securities		3,206.5			3,345.1			3,287.0			3,246.0			3,190.1
Mortgage loans		3,805.7			3,750.6			3,696.2			3,662.6			3,586.2
Real estate		213.4			209.8			196.6			182.7			180.4
Policy loans		1,860.5			1,866.9			1,856.4			1,862.2			1,860.4
Other long-term investments		516.5			561.3			572.3			626.9			687.5
Total Investments		43,982.2			44,863.3			44,085.0			43,168.4			42,573.2
Cash and invested cash		1,499.1			1,658.9			1,601.9			2,311.7			1,974.0
Premiums and fees receivable		299.3			222.8			332.6			343.2			363.2
Accrued investment income		557.6			537.5			565.2			526.4			532.1
Amount recoverable from reinsurers		7,336.5			7,241.6			7,211.0			6,926.3			6,899.4
Deferred acquisition costs and VOBA		4,841.0			4,657.4			4,989.0			5,163.2			5,433.7
Goodwill		1,195.7			1,194.8			1,194.6			1,194.2			1,194.4
Other		1,308.8			1,398.3			1,379.5			1,479.3			1,517.7
Assets held in separate accounts		55,387.2			57,240.0			60,811.5			63,746.8			67,984.2
Total Assets	$	116,407.4		$	119,014.5		$	122,170.2		$	124,859.6		$	128,472.0
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Insurance and Investment Contract Liabilities:
Reserves	$	11,126.3		$	11,035.9		$	10,981.4		$	10,659.7		$	10,657.2
Unpaid claims		1,164.9			1,114.2			1,037.7			1,040.8			979.0
Unearned premiums		3.1			1.9			1.2			2.1			2.3
Premium deposit funds		22,026.0			22,075.8			21,932.7			21,713.3			21,448.6
Policyholders' funds		13,271.3			13,444.7			13,637.9			13,878.8			13,991.5
Total Insurance and Investment Contract Liabilities		47,591.6			47,672.6			47,590.9			47,294.8			47,078.6
Short-term debt		194.0			222.5			165.1			119.9			10.6
Long-term debt - senior notes		1,046.6			1,000.6			999.5			999.0			998.5
Long-term debt - subordinated
Capital securities		-			-			-			-			-
Junior subordinated debentures issued to
affiliated trusts		336.6			338.7			335.9			334.0			332.3
Embedded derivative - modco		313.5			420.3			314.1			292.2			192.0
Deferred gain on indemnity reinsurance		893.7			874.5			855.2			836.0			816.9
Federal income taxes		-			160.8			31.5			19.8			-
Other liabilities		4,601.3			4,721.0			4,782.1			4,832.8			4,720.7
Liabilities related to separate accounts		55,387.2			57,240.0			60,811.5			63,746.8			67,984.2
Total Liabilities		110,364.5			112,651.0			115,885.8			118,475.2			122,133.8
Preferred Stock		0.6			0.5			0.5			0.5			0.5
Capital stock		1,688.0			1,690.2			1,740.2			1,774.6			1,817.5
Retained earnings		3,677.3			3,757.6			3,922.8			4,081.5			4,235.2
Unrealized gains on investments		582.9			851.2			569.0			496.6			220.2
Gains - derivatives		7.7			11.9			8.9			7.3			35.2
Foreign currency		146.5			109.4			99.6			83.4			89.7
Minimum pension liability		(60.0	)		(57.3	)		(56.6	)		(59.5	)		(60.1	)
Total Shareholders' Equity		6,043.0			6,363.5			6,284.4			6,384.4			6,338.2
Total Liabilities
and Shareholders' Equity	$	116,407.4		$	119,014.5		$	122,170.2		$	124,859.6		$	128,472.0
Shareholders' Equity Per Share	$	34.74		$	36.87		$	36.23		$	36.69		$	35.99
Book Value, Excluding AOCI	$	30.85		$	31.56		$	32.65		$	33.66		$	34.37
Common shares outstanding (in millions)		173.9			172.6			173.5			174.0			176.1

3/31/2006													PAGE 13
Balance Sheet Data - Segment Highlights
Unaudited [Millions of Dollars]
As of March 31, 2006
	Individual Markets				Employer Markets
	Annuities		Life		Retirement Products		Benefit Partners		Executive Benefits & Other		Investment Management		Lincoln UK		Lincoln Financial Media
Assets
Allocated Investments	$	7,438.5	$	14,847.8	$	13,932.2	$	-	$	2,831.0	$	-	$	1,002.6	$	-
DAC and VOBA		1,336.8		2,643.8		517.2		-		119.0		-		747.2		-
Goodwill		43.9		855.1		20.2		-		-		260.8		14.4		-
Other intangibles		139.9		-		-		-		-		11.9		-		-
Amounts recoverable from reinsurers		1,017.5		1,297.4		-		-		2.0		-		69.7		-
Assets held in separate accounts		40,320.6		2,643.0		16,444.1		-		823.1		-		7,753.5		-
Liabilities and Capital
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		436.3		3,920.2		-		-		1,930.3		-		1,384.7		-
Contractholder funds		10,253.0		12,613.0		11,003.6		-		743.5		-		30.5		-
Total Insurance and Inv          Contract Liabilities		10,689.3		16,533.2		11,003.6		-		2,673.8		-		1,415.2		-
Allocated equity (1)		1,541.3		3,300.2		1,196.0		-		323.1		338.1		494.7		-
As of December 31, 2005
Assets
Allocated Investments	$	8,104.7	$	14,990.3	$	13,666.6	$	-	$	2,879.4	$	-	$	996.6	$	-
DAC and VOBA		1,559.3		2,543.9		151.6		-		113.6		-		743.4		-
Goodwill		43.9		855.1		20.2		-		-		260.8		14.3		-
Other intangibles		129.4		-		-		-		-		13.9		-		-
Amounts recoverable from reinsurers		1,085.9		1,270.2		-		-		2.8		-		67.4		-
Assets held in separate accounts		37,903.9		2,482.7		15,243.9		-		796.7		-		7,319.6		-
Liabilities and Capital
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		517.7		3,905.5		-		-		1,933.8		-		1,386.5		-
Contractholder funds		8,541.7		12,523.7		11,033.4		-		733.5		-		31.9		-
Total Insurance and Inv       Contract Liabilities		9,059.4		16,429.2		11,033.4		-		2,667.3		-		1,418.3		-
Allocated equity (1)		1,605.2		3,231.9		1,158.5		-		346.0		360.0		503.6		-
(1) Allocated equity is based on internal economic capital models as of March 31, 2006, plus certain other items (principally intangibles including DAC and VOBA, goodwill and other items).

3/31/2006	PAGE 14
Individual Markets - Individual Life Insurance
Income Statements & Operational Data
Unaudited [Millions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Premiums	$	45.5		$	47.8		$	47.4		$	57.7		$	51.1			12.3	%	$	45.5		$	51.1			12.3	%
Surrender charges		12.0			9.4			10.9			11.6			10.3			-13.9	%		12.0			10.3			-13.9	%
Mortality assessments		131.1			130.6			127.7			135.3			135.6			3.5	%		131.1			135.6			3.5	%
Expense assessments		50.1			49.1			31.7			58.8			54.3			8.4	%		50.1			54.3			8.4	%
Net investment income		223.9			227.8			229.5			227.5			239.5			7.0	%		223.9			239.5			7.0	%
Other revenue and fees		12.9			10.7			11.2			10.3			9.7			-24.8	%		12.9			9.7			-24.8	%
Total Operating Revenue		475.6			475.4			458.5			501.1			500.6			5.3	%		475.6			500.6			5.3	%
Operating Expenses
Insurance benefits		113.8			119.1			109.9			118.6			120.2			5.7	%		113.8			120.2			5.7	%
Interest credited to contractholder funds		138.9			138.0			140.9			142.1			142.2			2.4	%		138.9			142.2			2.4	%
Operating and acquisition expenses		136.7			125.4			110.9			130.1			132.8			-2.8	%		136.7			132.8			-2.8	%
Total Operating Expenses		389.3			382.5			361.8			390.8			395.3			1.5	%		389.3			395.3			1.5	%
Income from operations before     Federal income taxes		86.2			92.9			96.7			110.4			105.3			22.1	%		86.2			105.3			22.1	%
Federal income taxes		28.1			30.3			31.8			36.5			36.3			29.3	%		28.1			36.3			29.3	%
Income from Operations	$	58.1		$	62.6		$	64.9		$	73.8		$	69.0			18.7	%	$	58.1		$	69.0			18.7	%
Effective tax rate		32.6	%		32.6	%		32.8	%		33.1	%		34.5	%					32.6	%		34.5	%
Average equity	$	3,107.4		$	3,227.9		$	3,212.8		$	3,278.0		$	3,266.0					$	3,107.4		$	3,266.0
Return on average equity		7.5	%		7.8	%		8.1	%		9.0	%		8.5	%					7.5	%		8.5	%
Operating and Acquisition Expenses
Commissions	$	36.3		$	36.5		$	43.4		$	50.3		$	44.2			21.7	%	$	36.3		$	44.2			21.7	%
General and administrative expenses		91.8			94.5			105.3			105.6			88.9			-3.1	%		91.8			88.9			-3.1	%
Taxes, licenses and fees		16.1			13.3			12.4			12.9			16.3			1.5	%		16.1			16.3			1.5	%
Total commissions and                     expenses incurred		144.2			144.3			161.1			168.7			149.4			3.6	%		144.2			149.4			3.6	%
Less: commissions and expenses                     capitalized		(79.5	)		(85.7	)		(94.7	)		(113.8	)		(90.1	)		-13.3	%		(79.5	)		(90.1	)		-13.3	%
Amortization of DAC and VOBA		72.1			66.9			44.6			75.2			73.6			2.0	%		72.1			73.6			2.0	%
Net Operating and Acquisition Expenses	$	136.7		$	125.4		$	110.9		$	130.1		$	132.8			-2.8	%	$	136.7		$	132.8			-2.8	%
General and administrative expenses   basis points on account values																	(Basis points	)								(Basis points	)
- Annualized		276			282			309			304			251			(24	)		276			251			(24	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$	2,359.0		$	2,425.4		$	2,350.0		$	2,479.9		$	2,543.9					$	2,359.0		$	2,543.9
Deferral		79.5			85.7			94.7			113.8			90.1						79.5			90.1
Amortization		(72.1	)		(66.9	)		(44.6	)		(75.2	)		(73.6	)					(72.1	)		(73.6	)
Included in Total Operating Expenses		7.5			18.9			50.1			38.6			16.6						7.5			16.6
Adjustment related to realized (gains) losses
on available-for-sale securities		(2.2	)		(5.9	)		(6.1	)		(1.2	)		(3.4	)					(2.2	)		(3.4	)
Adjustment related to unrealized (gains)
losses on available-for-sale securities		61.0			(88.4	)		85.9			26.5			86.7						61.0			86.7
Business acquired																				-			-
Other		0.1			(0.1	)		0.0			0.1			0.0						0.1			0.0
Balance at end of period	$	2,425.4		$	2,350.0		$	2,479.9		$	2,543.9		$	2,643.8					$	2,425.4		$	2,643.8
Roll Forward of Deferred Front-End Loads
Balance at beginning of period	$	311.1		$	312.5		$	315.9		$	338.5		$	342.6					$	311.1		$	342.6
Deferral		20.2			20.0			19.0			21.8			19.7						20.2			19.7
Amortization		(18.8	)		(16.7	)		3.6			(17.6	)		(18.0	)					(18.8	)		(18.0	)
Included in Expense Assessments		1.4			3.4			22.6			4.2			1.7						1.4			1.7
Balance at end of period	$	312.5		$	315.9		$	338.5		$	342.6		$	344.3					$	312.5		$	344.3

3/31/2006																PAGE 15
Individual Markets- Individual Life Insurance
Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended													Year-to-Date
	Mar		Jun		Sep		Dec		Mar		%			Mar		Mar		%
	2005		2005		2005		2005		2006		Change			2005		2006		Change
Sales by Product (1)    (Millions)
Universal Life
Excluding MoneyGuard	$	37.7	$	46.8	$	45.8	$	59.2	$	41.0		8.6	%	$	37.7	$	41.0		8.6	%
MoneyGuard		7.4		8.0		9.1		9.4		7.7		4.4	%		7.4		7.7		4.4	%
Total		45.2		54.8		54.9		68.6		48.7		7.9	%		45.2		48.7		7.9	%
Variable universal life		9.6		10.2		9.1		13.4		10.0		4.9	%		9.6		10.0		4.9	%
Whole life		0.8		0.2		0.4		0.4		0.7		-14.8	%		0.8		0.7		-14.8	%
Term		9.8		9.1		8.6		8.3		8.5		-13.4	%		9.8		8.5		-13.4	%
Total	$	65.4	$	74.3	$	72.9	$	90.7	$	67.9		3.9	%	$	65.4	$	67.9		3.9	%
Sales by Distribution (Millions)
Retail (LFA)	$	17.0	$	16.6	$	16.8	$	15.5	$	14.0		-17.7	%	$	17.0	$	14.0		-17.7	%
Wholesale (LFD)		44.8		54.3		53.0		69.7		48.8		9.0	%		44.8		48.8		9.0	%
Other (2)		3.6		3.5		3.1		5.5		5.1		41.7	%		3.6		5.1		41.7	%
Total by Distribution	$	65.4	$	74.3	$	72.9	$	90.7	$	67.9		3.9	%	$	65.4	$	67.9		3.9	%
First-Year Paid Premiums (Millions)
Universal Life
Excluding MoneyGuard	$	86.4	$	103.6	$	102.3	$	144.0	$	108.2		25.2	%	$	86.4	$	108.2		25.2	%
MoneyGuard		49.4		53.4		60.8		62.5		51.5		4.3	%		49.4		51.5		4.3	%
Total		135.8		157.0		163.1		206.5		159.7		17.6	%		135.8		159.7		17.6	%
Variable universal life		25.9		23.8		23.4		33.4		27.1		4.6	%		25.9		27.1		4.6	%
Whole life		7.8		8.3		10.2		14.4		8.3		6.4	%		7.8		8.3		6.4	%
Term		9.8		9.1		8.6		8.4		8.6		-12.4	%		9.8		8.6		-12.4	%
Total	$	179.3	$	198.2	$	205.3	$	262.7	$	203.7		13.6	%	$	179.3	$	203.7		13.6	%
First-Year Paid Premiums (Millions)
Retail (LFA)	$	43.1	$	44.3	$	45.6	$	50.1	$	41.5		-3.7	%	$	43.1	$	41.5		-3.7	%
Wholesale (LFD)		127.1		144.9		152.8		190.1		141.7		11.5	%		127.1		141.7		11.5	%
Other*		9.1		9.0		6.9		22.5		20.5		125.3	%		9.1		20.5		125.3	%
Total by Distribution	$	179.3	$	198.2	$	205.3	$	262.7	$	203.7		13.6	%	$	179.3	$	203.7		13.6	%
Life Insurance In-Force (Billions)
Universal life & other	$	125.202	$	126.069	$	126.976	$	128.791	$	129.584		3.5	%	$	125.202	$	129.584		3.5	%
Term insurance		176.541		180.659		184.334		187.850		191.825		8.7	%		176.541		191.825		8.7	%
Total Life Segment In-Force	$	301.743	$	306.727	$	311.310	$	316.641	$	321.409		6.5	%	$	301.743	$	321.409		6.5	%

⁽¹⁾ Sales for Individual Life Insurance consist of first year commissionable premium for Universal life ("UL"), including Moneyguard, and COLI plus 5% of excess premium received, including UL internal replacements, and first year paid premiums for Whole life and Term products.

⁽²⁾ Other consists of distibution arrangements with third-party intermediaries

3/31/2006	PAGE 16
Individual Markets - Individual Life Insurance
Account Value Roll Forward
Unaudited [Billions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Interest Sensitive Life-Balance Beginning-of-Period		$ 11.232			$ 11.325			$ 11.443			$ 11.591			$11.809			5.1	%		$ 11.232			$11.809			5.1	%
Deposits		0.382			0.390			0.415			0.499			0.401			5.1	%		0.382			0.401			5.1	%
Withdrawals & deaths		(0.188	)		(0.166	)		(0.161	)		(0.160	)		(0.182	)		3.3	%		(0.188	)		(0.182	)		3.3	%
Net flows		0.194			0.223			0.253			0.339			0.219			13.2	%		0.194			0.219			13.2	%
Policyholder assessments		(0.238	)		(0.239	)		(0.242	)		(0.257	)		(0.250	)		-5.3	%		(0.238	)		(0.250	)		-5.3	%
Interest credited		0.137			0.134			0.136			0.136			0.135			-1.6	%		0.137			0.135			-1.6	%
Business acquired		-			-			-			-			-			NM			-			-			NM
Interest Sensitive Life-Balance End-of-Period (1)		$ 11.325			$ 11.443			$ 11.591			$ 11.809			$11.913			5.2	%		$ 11.325			$11.913			5.2	%
Variable Universal Life-Balance Beginning of Period		$ 2.028			$ 2.003			$ 2.053			$ 2.154			$ 2.242			10.6	%		$ 2.028			$ 2.242			10.6	%
Deposits		0.086			0.081			0.082			0.097			0.087			0.9	%		0.086			0.087			0.9	%
Withdrawals & deaths		(0.044	)		(0.041	)		(0.041	)		(0.036	)		(0.049	)		-12.5	%		(0.044	)		(0.049	)		-12.5	%
Net flows		0.042			0.040			0.041			0.061			0.038			-10.9	%		0.042			0.038			-10.9	%
Policyholder assessments		(0.042	)		(0.042	)		(0.043	)		(0.044	)		(0.044	)		-4.1	%		(0.042	)		(0.044	)		-4.1	%
Investment income and change in market value		(0.026	)		0.052			0.103			0.071			0.119			NM			(0.026	)		0.119			NM
Business acquired		-			-			-			-			-			NM			-			-			NM
Variable Universal Life -Balance End-of-Period		$ 2.003			$ 2.053			$ 2.154			$ 2.242			$ 2.355			17.6	%		$ 2.003			$ 2.355			17.6	%
Total Segment- Life Insurance Account Value Rollforward
Balance Beginning-of-Period		$ 13.259			$ 13.328			$ 13.496			$ 13.745			$14.051			6.0	%		$ 13.259			$14.051			6.0	%
Deposits		0.468			0.470			0.497			0.596			0.488			4.3	%		0.468			0.488			4.3	%
Withdrawals & deaths		(0.231	)		(0.207	)		(0.202	)		(0.196	)		(0.231	)		0.3	%		(0.231	)		(0.231	)		0.3	%
Net flows		0.236			0.263			0.295			0.400			0.257			8.9	%		0.236			0.257			8.9	%
Policyholder assessments		(0.279	)		(0.281	)		(0.285	)		(0.301	)		(0.294	)		-5.2	%		(0.279	)		(0.294	)		-5.2	%
Investment income and change in market value		0.112			0.187			0.239			0.206			0.254			127.5	%		0.112			0.254			127.5	%
Business acquired		-			-			-			-			-			NM			-			-			NM
Total Segment -Balance End-of-Period		$ 13.328			$ 13.496			$ 13.745			$ 14.051			$14.268			7.1	%		$ 13.328			$14.268			7.1	%
Life Product Spread Information (2)
																	Change									Change
Interest Sensitive Products																	(Basis Points	)								(Basis Points	)
Net investment income (3)(4)		6.32	%		6.35	%		6.35	%		6.26	%		6.47	%		15			6.32	%		6.47	%		15
Interest credited to policyholders		4.75	%		4.65	%		4.70	%		4.66	%		4.64	%		(11	)		4.75	%		4.64	%		(11	)
Spread (3)(4)		1.57	%		1.71	%		1.65	%		1.60	%		1.83	%		26			1.57	%		1.83	%		26
Traditional Products
Net investment income (3)		6.59	%		6.59	%		6.62	%		6.42	%		6.72	%		13			6.59	%		6.72	%		13

(1) Includes universal life, interest sensitive life, and the 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 March 31, 2006, interest sensitive products represented 89% 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 7bps in the 1st quarter of 2006, 11 bps in the 4th quarter of 2005, 4 bps in the 3rd quarter of 2005, 12 bps in the 2nd quarter of 2005 and 0 bps in the 1st quarter of 2005.  There was an impact on traditional products of 15 bps in the 1st quarter of 2006, 0 bps in the 4th quarter of 2005, 20 bps in the 3rd quarter of 2005, 11 bps in the 2nd quarter of 2005 and 10 bps in the 1st quarter of 2005.

(4) The net investment income and spread for the first quarter of 2006 includes 17 basis points of incremental yield from special investments.

3/31/2006	PAGE 17
Individual Markets - Individual Annuities
Income Statements & Operational Data
Unaudited [Millions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Jun			Jun			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Premiums		$ 10.5			$ 7.3			$ 10.7			$ 8.5			$ 9.3			-12.2	%		$ 10.5			$ 9.3			-12.2	%
Surrender charges		5.3			5.2			5.0			4.4			6.2			16.0	%		5.3			6.2			16.0	%
Expense assessments		124.5			131.7			147.7			155.5			168.0			34.9	%		124.5			168.0			34.9	%
Net investment income		157.0			154.8			151.7			150.4			148.0			-5.7	%		157.0			148.0			-5.7	%
Other revenue and fees		42.5			49.3			47.3			53.3			43.4			2.2	%		42.5			43.4			2.2	%
Total Operating Revenue		339.8			348.2			362.4			372.1			374.8			10.3	%		339.8			374.8			10.3	%
																							-
Operating Expenses
Insurance benefits		21.2			31.4			20.5			21.2			20.4			-3.7	%		21.2			20.4			-3.7	%
Interest credited to contractholder funds		100.1			98.9			97.3			96.3			95.1			-5.0	%		100.1			95.1			-5.0	%
Operating and acquisition expenses		157.1			152.7			139.8			164.7			172.6			9.8	%		157.1			172.6			9.8	%
Total Operating Expenses		278.5			283.1			257.6			282.2			288.1			3.4	%		278.5			288.1			3.4	%
Income from operations before Federal income taxes		61.3			65.1			104.8			89.9			86.7			41.4	%		61.3			86.7			41.4	%
Federal income taxes		11.7			12.7			25.8			19.0			20.3			73.6	%		11.7			20.3			73.6	%
Income from Operations		$ 49.6			$ 52.5			$ 79.0			$ 70.9			$ 66.4			33.8	%		$ 49.6			$ 66.4			33.8	%
Effective tax rate		19.1	%		19.4	%		24.6	%		21.1	%		23.4	%					19.1	%		23.4	%
Average equity		$ 1,476.3			$ 1,525.7			$ 1,539.7			$ 1,596.0			$1,549.5						$1,476.3			$1,549.5
Return on average equity		13.4	%		13.8	%		20.5	%		17.8	%		17.1	%					13.4	%		17.1	%
Basis points on average account values		47			49			69			60			52						47			52
Operating and Acquisition Expenses
Commissions		$ 119.8			$ 124.2			$ 131.7			$ 131.6			$ 140.0			16.9	%		$ 119.8			$ 140.0			16.9	%
General and administrative expenses		81.1			89.1			88.3			93.9			84.0			3.6	%		81.1			84.0			3.6	%
Taxes, licenses and fees		6.0			4.2			5.0			(1.4	)		5.4			-9.3	%		6.0			5.4			-9.3	%
Total commissions and expenses incurred		206.9			217.5			225.0			224.1			229.5			10.9	%		206.9			229.5			10.9	%
Less: commissions and expenses capitalized		(102.3	)		(108.6	)		(112.1	)		(118.9	)		(122.7	)					(102.3	)		(122.7	)
Amortization of DAC and VOBA		52.5			43.8			26.8			59.5			65.8			25.3	%		52.5			65.8			25.3	%
Net Operating and Acquisition Expenses		$ 157.1			$ 152.7			$ 139.8			$ 164.7			$ 172.6			9.9	%		$ 157.1			$ 172.6			9.9	%
																	(Basis Points)									(Basis Points)
General and administrative expenses
basis points on gross account values - Annualized		0.76	%		0.82	%		0.78	%		0.79	%		0.68	%		(9)			0.76	%		0.68	%		(9)

Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$ 999.4		$ 1,097.6		$ 1,118.5		$ 1,250.6		$1,328.0			$ 999.4		$1,328.0
Deferral	102.3		108.6		112.1		118.9			122.7		102.3			122.7
Amortization	(52.5	)	(43.8	)	(26.8	)	(59.5	)		(65.8	)	(52.5	)		(65.8	)
Included in Total Operating Expenses	49.8		64.8		85.2		59.4			56.9		49.8			56.9
Adjustment related to realized (gains) losses
on available-for-sale securities	(7.1	)	(1.8	)	(4.7	)	(3.5	)		(2.7	)	(7.1	)		(2.7	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities	55.4		(42.1	)	51.7		21.5			32.7		55.4			32.7
Business acquired	-		-		-		-			-		-			-
Other	-		-		-		-			-		-			-
Balance at end of period	$ 1,097.6		$ 1,118.5		$ 1,250.6		$ 1,328.0		$1,414.9			$ 1,097.6		$1,414.9
Roll Forward of Deferred Front-End Loads
Balance at beginning of period	$ 50.1		$ 55.2		$ 61.1		$ 65.6			$ 72.0		$ 50.1			$ 72.0
Deferral	7.9		9.0		9.4		9.5			9.4		7.9			9.4
Amortization	(2.8	)	(3.1	)	(4.8	)	(3.1	)		(3.3	)	(2.8	)		(3.3	)
Included in Income from Operations	5.1		5.9		4.6		6.4			6.1		5.1			6.1
Balance at end of period	$ 55.2		$ 61.1		$ 65.6		$ 72.0			$ 78.1		$ 55.2			$ 78.1
Roll Forward of Deferred Sales Inducements
Balance at beginning of period	$ 85.5		$ 94.9		$ 106.6		$ 118.1			$ 129.4		$ 85.5			$ 129.4
Deferral	13.3		15.5		15.1		15.6			15.7		13.3			15.7
Amortization	(3.9	)	(3.8	)	(3.6	)	(4.4	)		(5.2	)	(3.9	)		(5.2	)
Included in Income from Operations	9.4		11.7		11.5		11.3			10.5		9.4			10.5
Adjustment related to realized (gains) losses												-			-
Business acquired												-			-
Balance at end of period	$ 94.9		$ 106.6		$ 118.1		$ 129.4			$ 139.9		$ 94.9			$ 139.9

3/31/2006	PAGE 18
Individual Markets - Individual Annuities
Account Value Rollforward
Unaudited [Billions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Fixed Annuities - Balance at Beginning of Period		$ 11.448			$ 11.411			$ 11.441			$ 11.375			$10.837			-5.3	%		$ 11.448			$10.837			-5.3	%
Gross deposits		0.472			0.534			0.494			0.486			0.471			-0.3	%		0.472			0.471			-0.3	%
Withdrawals & deaths		(0.361	)		(0.339	)		(0.340	)		(0.370	)		(0.408	)		-12.9	%		(0.361	)		(0.408	)		-12.9	%
Net flows		0.111			0.196			0.155			0.116			0.063			-43.1	%		0.111			0.063			-43.1	%
Transfer from (to) variable annuities		(0.264	)		(0.282	)		(0.338	)		(0.768	)		(0.454	)		-72.0	%		(0.264	)		(0.454	)		-72.0	%
Interest credited		0.116			0.117			0.117			0.115			0.112			-3.4	%		0.116			0.112			-3.4	%
Business acquired		-			-			-			-			-			NM			-			-			NM
Fixed Annuities - Gross		11.411			11.441			11.375			10.837			10.559			-7.5	%		11.411			10.559			-7.5	%
Reinsurance ceded		(2.291	)		(2.277	)		(2.257	)		(2.233	)		(2.202	)		3.9	%		(2.291	)		(2.202	)		3.9	%
Fixed Annuities - Balance at End of Period*		$ 9.120			$ 9.165			$ 9.117			$ 8.605			$ 8.357			-8.4	%		$ 9.120			$ 8.357			-8.4	%
Variable Annuities - Balance at Beginning     of Period		$ 30.684			$ 31.100			$ 32.801			$ 35.276			$37.662			22.7	%		$ 30.684			$37.662			22.7	%
Gross deposits		1.289			1.327			1.410			1.513			1.665			29.2	%		1.289			1.665			29.2	%
Withdrawals & deaths		(0.756	)		(0.775	)		(0.847	)		(0.862	)		(0.959	)		-26.8	%		(0.756	)		(0.959	)		-26.8	%
Net flows		0.533			0.552			0.563			0.651			0.706			32.5	%		0.533			0.706			32.5	%
Transfer from (to) fixed annuities		0.384			0.384			0.418			0.469			0.451			17.5	%		0.384			0.451			17.5	%
Investment increase & change in market value		(0.501	)		0.765			1.494			1.266			1.621			NM			(0.501	)		1.621			NM
Business acquired		-			-			-			-			-			NM			-			-			NM
Variable Annuities - Balance at End     of Period **		$ 31.100			$ 32.801			$ 35.276			$ 37.662			$40.440			30.0	%		$ 31.100			$40.440			30.0	%
Total Annuities - Balance at Beginning     of Period		$ 42.132			$ 42.510			$ 44.242			$ 46.651			$48.499			15.1	%		$ 42.132			$48.499			15.1	%
Gross deposits		1.761			1.862			1.904			1.999			2.136			21.3	%		1.761			2.136			21.3	%
Withdrawals & deaths		(1.117	)		(1.114	)		(1.187	)		(1.232	)		(1.367	)		-22.3	%		(1.117	)		(1.367	)		-22.3	%
Net flows		0.644			0.748			0.717			0.767			0.769			19.5	%		0.644			0.769			19.5	%
Transfers		0.120			0.102			0.080			(0.299	)		(0.002	)		NM			0.120			(0.002	)		NM
Interest credited & change in market value		(0.385	)		0.882			1.611			1.381			1.733			NM			(0.385	)		1.733			NM
Business acquired		-			-			-			-			-			NM			-			-			NM
Total Annuities - Gross		42.510			44.242			46.651			48.499			50.999			20.0	%		42.510			50.999			20.0	%
Reinsurance ceded		(2.291	)		(2.277	)		(2.257	)		(2.233	)		(2.202	)		3.9	%		(2.291	)		(2.202	)		3.9	%
Total Annuities (Net of Ceded) - Balance at     End of Period		$ 40.219			$ 41.966			$ 44.393			$ 46.266			$48.797			21.3	%		$ 40.219			$48.797			21.3	%
Variable Annuities Under Agreement - Included above		$ 0.225			$ 0.213			$225.981			$ 0.197			$ 0.190			-15.7	%		$ 0.225			$ 0.190			-15.7	%
Incremental Deposits***:
Fixed annuities		$ 0.455			$ 0.523			$ 0.481			$ 0.472			$ 0.461			1.4	%		0.455			$ 0.461			1.4	%
Variable annuities		1.259			1.293			1.383			1.481			1.650			31.1	%		1.259			1.650			31.1	%
Total Incremental Deposits		$ 1.714			$ 1.816			$ 1.864			$ 1.953			$2.111			23.2	%		$ 1.714			$ 2.111			23.2	%

* Includes fixed portion of variable annuities.

** Excludes the fixed portion of variable annuities.

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

3/31/2006	PAGE 19
Individual Markets - Individual Annuities
Account Values
Unaudited [Billions of Dollars]

 

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Fixed Annuities - excluding fixed portion of variable contracts
Deposits		$ 0.055			$ 0.045			$ 0.024			$ 0.025			$ 0.022			-60.8	%		$ 0.055			$ 0.022			-60.8	%
Withdrawals		(0.250	)		(0.226	)		(0.172	)		(0.218	)		(0.244	)		2.2	%		(0.250	)		(0.244	)		2.2	%
Net flows		$ (0.194	)		$ (0.180	)		$ (0.149	)		$ (0.193	)		$(0.222	)		-14.4	%		$ (0.194	)		$(0.222	)		-14.4	%
Gross fixed contract account values		$ 8.157			$ 8.089			$ 8.019			$ 7.823			$ 7.676			-5.9	%		$ 8.157			$ 7.676			-5.9	%
Reinsurance ceded		(2.291	)		(2.277	)		(2.257	)		(2.233	)		(2.202	)		3.9	%		(2.291	)		(2.202	)		3.9	%
Net Fixed Contract Account Values		$ 5.866			$ 5.812			$ 5.761			$ 5.590			$ 5.474			-6.7	%		$ 5.866			$ 5.474			-6.7	%
Equity-indexed Annuities
Deposits
Withdrawals
Net flows
Equity-indexed Contract Account Values
Fixed Portion of Variable Contracts
Deposits		$ 0.417			$ 0.489			$ 0.470			$ 0.460			$ 0.449			7.7	%		$ 0.417			$ 0.449			7.7	%
Withdrawals		(0.112	)		(0.113	)		(0.164	)		(0.145	)		(0.164	)		-46.6	%		(0.112	)		(0.164	)		-46.6	%
Net flows		$ 0.305			$ 0.376			$ 0.306			$ 0.315			$ 0.285			-6.5	%		$ 0.305			$ 0.285			-6.5	%
Fixed Portion of Variable Contract Account Values		$ 3.012			$ 3.111			$ 3.115			$ 2.773			$ 2.642			-12.3	%		$ 3.012			$ 2.642			-12.3	%
Variable Annuities - including fixed portion of variable contracts
Deposits		$ 1.706			$ 1.817			$ 1.880			$ 1.973			$ 2.114			23.9	%		$ 1.706			$ 2.114			23.9	%
Withdrawals		(0.868	)		(0.889	)		(1.011	)		(1.007	)		(1.123	)		-29.4	%		(0.868	)		(1.123	)		-29.4	%
Net Flows		$ 0.838			$ 0.928			$ 0.868			$ 0.966			$ 0.991			18.3	%		$ 0.838			$ 0.991			18.3	%
Variable Contract Account Values		$ 34.112			$ 35.912			$ 38.391			$ 40.435			$43.082			26.3	%		$ 34.112			$43.082			26.3	%
Average Daily Variable Annuity Account Values		$ 30.903			$ 31.660			$ 34.367			$ 36.089			$39.947			29.3	%		$ 30.903			$39.947			29.3	%
Individual Annuity Product Spread Information																	Change									Change
																	(Basis Point	)								(Basis Point	)
Net investment income(1) (2)		5.78	%		5.74	%		5.68	%		5.73	%		5.84	%		6			5.78	%		5.84	%		6
Interest credited to policyholders		3.96	%		3.95	%		3.93	%		3.92	%		3.93	%		(3	)		3.96	%		3.93	%		(3	)
Spread(1) (2)		1.82	%		1.79	%		1.75	%		1.81	%		1.91	%		9			1.82	%		1.91	%		9

Sales By Distribution
Retail (LFA)	$	0.213	$	0.232	$	0.183	$	0.212	$	0.219	2.8	%	$	0.213	$	0.219	2.8	%
Wholesale (LFD)		1.549		1.630		1.721		1.797		1.917	23.8	%		1.549		1.917	23.8	%

Total by Distribution $1.762 $1.862 $1.904 $2.009 $2.136 21.3 % $1.762 $2.136 21.3 %

(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 first quarter of 2006, 6 bps in the fourth quarter of 2005, 1 bp in the third quarter of 2005, 2 bps in the second quarter of 2005 and 6 bps in the first quarter of 2005.

3/31/2006	PAGE 20
Employer Markets - Retirement Products
Income Statements & Operational Data
Unaudited [Millions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Surrender charges		$   2.8			$   2.2			$    2.8			$    2.0			$   2.3			-20.0	%		$   2.8			$   2.3			-20.0	%
Expense assessments		50.0			51.1			53.9			53.6			56.9			13.7	%		50.0			56.9			13.7	%
Net investment income		176.1			176.7			177.5			181.3			185.7			5.5	%		176.1			185.7			5.5	%
Other revenue and fees		2.4			2.5			2.6			2.3			1.9			-19.4	%		2.4			1.9			-19.4	%
Total Operating Revenue		231.3			232.5			236.8			239.2			246.8			6.7	%		231.3			246.8			6.7	%
Operating Expenses
Insurance benefits																	NM			-			-			NM
Interest credited to contractholder funds		99.6			100.4			100.7			101.1			100.7			1.1	%		99.6			100.7			1.1	%
Operating and acquisition expenses		71.9			69.4			60.2			75.3			70.9			-1.3	%		71.9			70.9			-1.3	%
Total Operating Expenses		171.5			169.9			160.9			176.4			171.7			0.1	%		171.5			171.7			0.1	%
Income from operations before Federal income taxes		59.8			62.7			75.9			62.8			75.2			25.7	%		59.8			75.2			25.7	%
Federal income taxes		16.6			17.4			22.4			17.7			22.7			37.1	%		16.6			22.7			37.1	%
Income from Operations		$ 43.2			$ 45.3			$ 53.5			$ 45.1			$ 52.4			21.3	%		$ 43.2			$ 52.4			21.3	%
Effective tax rate		27.7	%		27.7	%		29.5	%		28.2	%		30.2	%					27.7	%		30.2	%
Average equity		$ 1,082.8			$ 1,057.0			$ 1,083.9			$ 1,116.8			$1,232.3						$ 1,082.8			$1,232.3
Return on average equity		16.0	%		17.1	%		19.7	%		16.2	%		17.0	%					16.0	%		17.0	%
Return on average account values		61			64			73			60			67						61			67
Operating and Acquisition Expenses
Commissions		$ 20.3			$ 18.9			$ 20.4			$ 18.7			$ 19.2			-5.2	%		$ 20.3			$ 19.2			-5.2	%
General and administrative expenses		53.0			53.0			64.7			61.8			54.3			2.5	%		53.0			54.3			2.5	%
Taxes, licenses and fees		4.2			3.1			(0.8	)		1.2			2.9			-30.6	%		4.2			2.9			-30.6	%
Total commissions and expenses incurred		77.5			75.0			84.3			81.8			76.4			-1.4	%		77.5			76.4			-1.4	%
Less: commissions and expenses capitalized		(24.7	)		(23.7	)		(24.5	)		(24.4	)		(25.5	)		-3.1	%		(24.7	)		(25.5	)		-3.1	%
Amortization of DAC and VOBA		19.1			18.1			0.5			17.9			20.0			4.7	%		19.1			20.0			4.7	%
Net Operating and Acquisition Expenses		$ 71.9			$ 69.4			$ 60.2			$ 75.2			$ 71.0			-1.3	%		$ 71.9			$ 71.0			-1.3	%
General and administrative expenses																	(Basis Points	)								(Basis Points	)
basis points on account values - Annualized		75			74			89			82			70			(5	)		75			70			(5	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period		$ 304.1			$ 395.6			$ 332.0			$ 420.1			$ 454.9						$ 304.1			$ 454.9
Deferral		24.7			23.7			24.5			24.4			25.5						24.7			25.5
Amortization		(19.1	)		(18.1	)		(0.5	)		(17.9	)		(20.0	)					(19.1	)		(20.0	)
Included in Total Operating Expenses		5.6			5.6			24.1			6.6			5.5						5.6			5.5
Adjustment related to realized (gains) losses
on available-for-sale securities		(2.6	)		(6.6	)		(3.7	)		(3.9	)		(4.4	)					(2.6	)		(4.4	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		88.5			(62.5	)		67.7			32.1			61.2						88.5			61.2
Business acquired		-			-			-			-			-						-			-
Other		-			-			-			-			-						-			-
Balance at end of period		$ 395.6			$ 332.0			$ 420.1			$ 454.9			$ 517.2						$ 395.6			$ 517.2

3/31/2006	PAGE 21
Employer Markets - Retirement Products Account Value Rollforward
Account Value Rollforward
Unaudited [Billions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Fixed Annuities - Balance at Beginning of Period		$ 10.837			$ 10.688			$ 10.710			$ 10.686			$10.995			1.5	%		$ 10.837			$10.995			1.5	%
Gross deposits		0.298			0.286			0.259			0.240			0.257			-13.7	%		0.298			0.257			-13.7	%
Withdrawals & deaths		(0.459	)		(0.332	)		(0.330	)		(0.342	)		(0.347	)		24.3	%		(0.459	)		(0.347	)		24.3	%
Net flows		(0.161	)		(0.046	)		(0.071	)		(0.103	)		(0.090	)		44.0	%		(0.161	)		(0.090	)		44.0	%
Transfer from (to) variable annuities		(0.086	)		(0.033	)		(0.055	)		0.304			0.016			118.8	%		(0.086	)		0.016			118.8	%
Interest credited		0.098			0.100			0.102			0.108			0.094			-4.4	%		0.098			0.094			-4.4	%
Fixed Annuities - Balance at End of Period*		$ 10.688			$ 10.710			$ 10.686			$ 10.995			$11.015			3.1	%		$ 10.688			$11.015			3.1	%
Variable Annuities - Balance at Beginning of Period		$ 14.576			$ 14.346			$ 14.648			$ 15.293			$15.702			7.7	%		$ 14.576			$15.702			7.7	%
Gross deposits		0.562			0.524			0.527			0.642			0.666			18.5	%		0.562			0.666			18.5	%
Withdrawals & deaths		(0.512	)		(0.497	)		(0.522	)		(0.579	)		(0.656	)		-28.2	%		(0.512	)		(0.656	)		-28.2	%
Net flows		0.050			0.026			0.005			0.062			0.009			-81.1	%		0.050			0.009			-81.1	%
Transfer from (to) fixed annuities		(0.030	)		(0.066	)		(0.025	)		(0.001	)		(0.015	)		51.6	%		(0.030	)		(0.015	)		51.6	%
Investment increase & change in market value		(0.249	)		0.341			0.665			0.348			0.835			NM			(0.249	)		0.835			NM
Variable Annuities - Balance at End of Period **		$ 14.346			$ 14.648			$ 15.293			$ 15.702			$16.532			15.2	%		$ 14.346			$16.532			15.2	%
Total Annuities - Balance at Beginning of Period		$ 25.413			$ 25.034			$ 25.358			$ 25.979			$26.697			5.1	%		$ 25.413			$26.697			5.1	%
Gross Deposits		0.860			0.810			0.786			0.882			0.923			7.3	%		0.860			0.923			7.3	%
Withdrawals & deaths		(0.970	)		(0.829	)		(0.852	)		(0.922	)		(1.003	)		-3.4	%		(0.970	)		(1.003	)		-3.4	%
Net flows		(0.111	)		(0.019	)		(0.066	)		(0.040	)		(0.081	)		27.2	%		(0.111	)		(0.081	)		27.2	%
Transfers		(0.116	)		(0.099	)		(0.080	)		0.302			0.002			101.3	%		(0.116	)		0.002			101.3	%
Interest credited & change in market value		(0.152	)		0.442			0.766			0.456			0.929			NM			(0.152	)		0.929			NM
Total Annuities - Balance at End of Period		$ 25.034			$ 25.358			$ 25.979			$ 26.697			$27.547			10.0	%		$ 25.034			$27.547			10.0	%
Alliance Mutual Funds - Balance at Beginning of Period		$ 2.861			$ 3.163			$ 3.432			$ 3.672			$ 3.772			31.8	%		$ 2.861			$ 3.772			31.8	%
Plan/Participant Rollovers		0.258			0.065			0.036			0.063			0.125			-51.6	%		0.258			0.125			-51.6	%
Additional contributions		0.163			0.157			0.164			0.160			0.193			18.5	%		0.163			0.193			18.5	%
Gross deposits		0.421			0.222			0.200			0.223			0.318			-24.5	%		0.421			0.318			-24.5	%
Withdrawals & deaths		(0.074	)		(0.022	)		(0.107	)		(0.208	)		(0.056	)		23.5	%		(0.074	)		(0.056	)		23.5	%
Net flows		0.347			0.201			0.093			0.014			0.262			-24.7	%		0.347			0.262			-24.7	%
Transfers		0.002			(0.006	)		(0.000	)		(0.003	)		0.005			119.8	%		0.002			0.005			119.8	%
Interest credited & change in market value		(0.048	)		0.075			0.147			0.088			0.209			NM			(0.048	)		0.209			NM
Total Alliance Mutual Funds - Balance at End of Period		$ 3.163			$ 3.432			$ 3.672			$ 3.772			$ 4.248			34.3	%		$ 3.163			$ 4.248			34.3	%
Total Retirement Products Segment Account Values-
including Alliance Mutual Funds
Balance at Beginning of Period		$ 28.274			$ 28.197			$ 28.790			$ 29.651			$30.469			7.8	%		$ 28.274			$30.469			7.8	%
Gross deposits		1.281			1.032			0.986			1.104			1.241			-3.1	%		1.281			1.241			-3.1	%
Withdrawals & deaths		(1.044	)		(0.851	)		(0.958	)		(1.130	)		(1.060	)		-1.5	%		(1.044	)		(1.060	)		-1.5	%
Net flows		0.237			0.181			0.028			(0.026	)		0.181			-23.5	%		0.237			0.181			-23.5	%
Transfers		(0.114	)		(0.105	)		(0.080	)		0.300			0.007			106.1	%		(0.114	)		0.007			106.1	%
Interest credited & change in market value		(0.199	)		0.516			0.914			0.544			1.138			NM			(0.199	)		1.138			NM
Total Retirement Products Segment Account Values-
Balance at End of Period		$ 28.197			$ 28.790			$ 29.651			$ 30.469			$31.795			12.8	%		$ 28.197			$31.795			12.8	%
Variable Annuities Under Agreement - Included above		0.019			0.019			0.019			0.019			0.018			-3.3	%		0.019			0.018			-3.3	%
Incremental Deposits****:
Fixed Annuities		$ 0.294			$ 0.284			$ 0.243			$ 0.200			$ 0.254			-13.8	%		$ 0.294			$ 0.254			-13.8	%
Variable Annuities		0.556			0.521			0.553			0.614			0.654			17.7	%		0.556			0.654			17.7	%
Total Annuities Incremental Deposits		0.851			0.805			0.796			0.814			0.908			6.8	%		0.851			0.908			6.8	%
Total Alliance Mutual Funds Incremental     Deposits		0.421			0.222			0.200			0.223			0.318			-24.5	%		0.421			0.318			-24.5	%
Total Retirement Products Incremental    Deposits		$ 1.272			$ 1.028			$ 0.996			$ 1.036			$ 1.226			-3.6	%		$ 1.272			$ 1.226			-3.6	%

* Includes Fixed Annuity products offered under the Alliance mutual funds and the fixed portion of variable annuities.

** Excludes the fixed portion of variable annuities.

*** Represents amounts attributable to Alliance mutual fund net flows. Alliance 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 products.

3/31/2006	PAGE 22
Employer Markets - Retirement Products
Supplemental Data
Unaudited [Billions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Fixed Annuities - excluding fixed portion of variable contracts
Deposits		$ 0.143			$ 0.135			$ 0.121			$ 0.133			$ 0.140			-1.7	%		$ 0.143			$ 0.140			-1.7	%
Withdrawals		(0.204	)		(0.077	)		(0.154	)		(0.156	)		(0.132	)		35.3	%		(0.204	)		(0.132	)		35.3	%
Net Flows		$ (0.061	)		$ 0.058			$ (0.033	)		$ (0.023	)		$ 0.008			113.6	%		$ (0.061	)		$ 0.008			113.6	%
Fixed Contract Account Values		$ 3.526			$ 3.592			$ 3.599			$ 3.696			$ 3.745			6.2	%		$ 3.526			$ 3.745			6.2	%
Fixed Portion of Variable Contracts
Deposits		$ 0.155			$ 0.151			$ 0.139			$ 0.108			$ 0.117			-24.7	%		$ 0.155			$ 0.117			-24.7	%
Withdrawals		(0.254	)		(0.254	)		(0.179	)		(0.194	)		(0.215	)		15.4	%		(0.254	)		(0.215	)		15.4	%
Net Flows		$ (0.099	)		$ (0.103	)		$ (0.040	)		$ (0.086	)		$ (0.098	)		0.9	%		$ (0.099	)		$ (0.098	)		0.9	%
Fixed Portion of Variable Contract Account Values		$ 6.679			$ 6.625			$ 6.587			$ 6.797			$ 6.767			1.3	%		$ 6.679			$ 6.767			1.3	%
Variable Annuities - including fixed portion of variable contracts
Deposits		$ 0.717			$ 0.675			$ 0.692			$ 0.724			$ 0.782			9.1	%		$ 0.717			$ 0.782			9.1	%
Withdrawals		(0.766	)		(0.752	)		(0.728	)		(0.747	)		(0.871	)		-13.7	%		(0.766	)		(0.871	)		-13.7	%
Net Flows		$ (0.049	)		$ (0.077	)		$ (0.036	)		$ (0.023	)		$ (0.089	)		-80.5	%		$ (0.049	)		$ (0.089	)		-80.5	%
Variable Contract Account Values		$ 21.750			$ 22.007			$ 22.621			$ 23.242			$ 24.043			10.5	%		$ 21.750			$ 24.043			10.5	%
Average Daily Variable Annuity Account Values		$ 14.389			$ 14.328			$ 15.087			$ 15.323			$ 16.177			12.4	%		$ 14.389			$ 16.177			12.4	%
Total Annuity based Retirement Plan Product Spread Information (1)																	Change									Change
																	(Basis Point	)								(Basis Point	)
Net investment income (2)		6.28	%		6.25	%		6.25	%		6.36	%		6.34	%		6			6.28	%		6.34	%		6
Interest credited to policyholders		3.69	%		3.68	%		3.67	%		3.67	%		3.66	%		(3	)		3.69	%		3.66	%		(3	)
Spread (2)		2.59	%		2.57	%		2.58	%		2.69	%		2.68	%		9			2.59	%		2.68	%		9

(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. 

(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 15 bps in the 1st quarter of 2006, 17 bps in the 4th quarter of 2005, 7 bps in the 3rd quarter of 2005, 13 bps in the 2nd quarter of 2005 and 12 bps in the 1st quarter of 2005.

3/31/2006													PAGE 23
Employer Markets - Benefit Partners
Income Statements & Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended										Year-to-Date
	Mar		Jun		Sep		Dec		Mar	%	Mar		Mar	%
	2005		2005		2005		2005		2006	Change	2005		2006	Change
Operating Revenue
Premiums
Net investment income
Other revenue and fees
Total Operating Revenue		-		-		-		-				-
Operating Expenses
Insurance benefits
Operating and acquisition expenses
Total Operating Expenses		-		-		-		-
Income from operations before Federal income taxes		-		-		-		-				-
Federal income taxes
Income from Operations		$ -		$ -		$ -		$ -				$ -
Effective tax rate
Operating and Acquisition Expenses
Commissions
General and administrative expenses
Taxes, licenses and fees
Total commissions and expenses incurred		$ -		$ -		$ -		$ -				$ -
Less commissions and expenses capitalized
Amortization of DAC and VOBA
Net Operating and Acquisition Expenses		$ -		$ -		$ -		$ -				$ -
General and administrative expenses as a
percentage of assets - Annualized
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period
Deferral
Amortization
Included in Total Operating Expenses		-		-		-		-				-
Adjustment related to realized (gains) losses
on available-for-sale securities
Adjustment related to unrealized (gains) losses
on available-for-sale securities
Business acquired
Other
Balance at end of period		$ -		$ -		$ -		$ -				$ -

3/31/2006										PAGE 24
Employer Markets - Benefit Partners
Supplemental Data
Unaudited [Millions of Dollars]
	Three Months Ended						Year-to-Date
	Mar	Jun	Sep	Dec	Mar	%	Mar	Mar	%
	2005	2005	2005	2005	2006	Change	2005	2006	Change
Annualized Sales
Life
Disability
Dental
Premiums:
Life
Disability
Dental
Other
Total
Product Line Results:
Life
Disability
Dental
Other
Total
Loss Ratios:
Life
Disability
Dental
Combined

3/31/2006	PAGE 25
Employer Markets - Executive Benefits & Other
Income Statements & Operational Data
Unaudited [Millions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Premiums		$ 0.0			$ 0.5			$ 7.4			$ 0.7			$ 1.1			NM			$ 0.0			$ 1.1			NM
Surrender charges		0.0			(0.2	)		(0.1	)		0.0			0.0			-92.9	%		0.0			0.0			-92.9	%
Mortality assessments		2.2			2.1			2.0			2.5			2.8			26.7	%		2.2			2.8			26.7	%
Expense assessments		4.4			4.4			3.7			6.1			3.3			-25.3	%		4.4			3.3			-25.3	%
Net investment income		45.3			45.2			45.1			51.0			48.7			7.5	%		45.3			48.7			7.5	%
Other revenue and fees		1.3			1.2			1.3			1.3			1.4			4.9	%		1.3			1.4			4.9	%
Total Operating Revenue		53.2			53.2			59.4			61.6			57.2			7.5	%		53.2			57.2			7.5	%
Operating Expenses
Insurance benefits		31.8			30.7			39.9			31.2			32.8			3.1	%		31.8			32.8			3.1	%
Interest credited to contractholder funds		9.3			9.6			10.4			9.5			9.3			-0.5	%		9.3			9.3			-0.5	%
Operating and acquisition expenses		8.0			7.5			6.4			7.3			4.6			-42.5	%		8.0			4.6			-42.5	%
Total Operating Expenses		49.1			47.8			56.8			48.0			46.7			-5.0	%		49.1			46.7			-5.0	%
Income from operations before Federal income taxes		4.1			5.3			2.7			13.6			10.5			157.5	%		4.1			10.5			157.5	%
Federal income taxes		0.7			1.0			0.2			4.1			3.0			NM			0.7			3.0			NM
Income from Operations		$ 3.4			$ 4.3			$ 2.5			$ 9.5			$ 7.5			124.5	%		$ 3.4			$ 7.5			124.5	%
Effective tax rate		18.0	%		19.3	%		7.6	%		30.0	%		28.5	%					18.0	%		28.5	%
Average equity		$ 288.9			$ 296.8			$ 283.1			$ 321.8			$ 345.5						$ 288.9			$ 345.5
Return on average equity		4.6	%		5.8	%		3.5	%		11.8	%		8.7	%					4.6	%		8.7	%
Operating and Acquisition Expenses
Commissions		$ 4.8			$ 5.4			$ 6.7			$ 5.1			$ 5.1			7.3	%		$ 4.8			$ 5.1			7.3	%
General and administrative expenses		4.3			4.0			5.8			5.0			3.7			-13.9	%		4.3			3.7			-13.9	%
Taxes, licenses and fees		1.1			0.9			1.5			1.0			1.1			-1.3	%		1.1			1.1			-1.3	%
Total commissions and expenses incurred		10.2			10.2			14.0			11.1			9.9			-2.5	%		10.2			9.9			-2.5	%
Less: commissions and expenses capitalized		(5.5	)		(5.3	)		(7.3	)		(5.1	)		(5.7	)		-4.4	%		(5.5	)		(5.7	)		-4.4	%
Amortization of DAC and VOBA		3.3			2.6			(0.3	)		1.3			0.3			-90.8	%		3.3			0.3			-90.8	%
Net Operating and Acquisition Expenses		$ 8.0			$ 7.5			$ 6.4			$ 7.3			$ 4.5			-43.4	%		$ 8.0			$ 4.5			-43.4	%
General and administrative expenses basis																	(Basis Points	)								(Basis Points	)
points on account values - Annualized		151			136			189			155			109			(42	)		151			109			(42	)

Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$ 97.3		$ 99.5		$ 102.2	$ 109.8		$ 113.6		$ 97.3		$ 113.6
Deferral	5.5		5.3		7.3	5.1		5.7		5.5		5.7
Amortization	(3.3	)	(2.6	)	0.3	(1.3	)	(0.3	)	(3.3	)	(0.3	)
Included in Total Operating Expenses	2.2		2.7		7.6	3.8		5.4		2.2		5.4
Business acquired	-		-		-	-		-		-		-
Balance at end of period	$ 99.5		$ 102.2		$ 109.8	$ 113.6		$ 119.0		$ 99.5		$ 119.0
Roll Forward of Deferred Front-End Loads
Balance at beginning of period	$ 15.5		$ 15.5		$ 15.6	$ 16.9		$ 17.9		$ 15.5		$ 17.9
Deferral	0.9		0.9		1.0	1.2		1.0		0.9		1.0
Amortization	(0.9	)	(0.7	)	0.4	(0.3	)	(0.0	)	(0.9	)	(0.0	)
Included in Income from Operations	(0.0	)	0.1		1.3	0.9		1.0		(0.0	)	1.0
Balance at end of period	$ 15.5		$ 15.6		$ 16.9	$ 17.9		$ 18.9		$ 15.5		$ 18.9

3/31/2006																						PAGE 26
Employer Markets - Executive Benefits & Other
Account Value Roll Forward and Supplemental Data
Unaudited [Billions of Dollars]
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
COLI/BOLI- Balance Beginning-of-Period		$ 1.122			$ 1.138			$ 1.194			$ 1.256			$ 1.318			17.4	%		$ 1.122			$ 1.318			17.4	%
Deposits		0.044			0.056			0.057			0.052			0.047			5.4	%		0.044			0.047			5.4	%
Withdrawals & deaths		(0.020	)		(0.011	)		(0.015	)		(0.002	)		(0.007	)		63.4	%		(0.020	)		(0.007	)		63.4	%
Net flows		0.024			0.045			0.042			0.049			0.039			63.2	%		0.024			0.039			63.2	%
Policyholder assessments		(0.008	)		(0.008	)		(0.008	)		(0.011	)		(0.009	)		-11.0	%		(0.008	)		(0.009	)		-11.0	%
Interest credited and change in market value		(0.001	)		0.019			0.028			0.023			0.038			NM			(0.001	)		0.038			NM
COLI/BOLI-Balance End-of-Period		$ 1.138			$ 1.194			$ 1.256			$ 1.318			$ 1.387			21.9	%		$ 1.138			$ 1.387			21.9	%
Sales by Distribution (Millions)
Wholesale (LFD)		$ 17.4			$ 6.6			$ 15.8			$  7.2			$ 13.5			-22.4	%		$ 17.4			$ 13.5			-22.4	%
Other*		1.6			1.2			1.3			2.9			2.6			62.5	%		1.6			2.6			62.5	%
Total by Distribution		$ 19.0			$ 7.8			$ 17.1			$ 10.1			$ 16.1			-15.3	%		$ 19.0			$ 16.1			-15.3	%
COLI In-Force		$ 7.234			$ 7.278			$ 7.506			$ 7.729			$ 7.979			10.3	%		$ 7.234			$ 7.979			10.3	%
Run Off Institutional Pensions Account Values -
Balance at End of Period		$ 2.886			$ 2.883			$ 2.877			$ 2.737			$ 2.753			-4.6	%		$ 2.886			$ 2.753			-4.6	%
* Other consists of distribution arrangements with third-party intermediaries.

3/31/2006																			PAGE 27
Investment Management
Income Statements
Unaudited [Millions of Dollars]
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Investment advisory fees - External		$ 55.0			$ 62.0			$ 67.9			$ 70.9			$ 77.8			41.5	%		$ 55.0			$ 77.8			41.5	%
Investment advisory fees - Insurance-related		24.8			24.6			24.9			24.5			25.1			1.2	%		24.8			25.1			1.2	%
Other revenue and fees		30.0			27.8			30.4			32.5			36.7			22.3	%		30.0			36.7			22.3	%
Operating Revenue		109.8			114.4			123.2			127.9			139.6			27.1	%		109.8			139.6			27.1	%
Operating Expenses
Operating and administrative expenses		103.0			116.6			115.0			114.4			116.1			12.7	%		103.0			116.1			12.7	%
Total Operating Expenses		103.0			116.6			115.0			114.4			116.1			12.7	%		103.0			116.1			12.7	%
Income from operations before Federal income taxes		6.8			(2.2	)		8.2			13.5			23.5			245.6	%		6.8			23.5			245.6	%
Federal income taxes		2.3			(0.8	)		3.4			4.6			8.2			256.5	%		2.3			8.2			256.5	%
Income from Operations		$ 4.5			$ (1.4	)		$ 4.8			$ 8.9			$ 15.3			240.0	%		$ 4.5			$ 15.3			240.0	%
Effective tax rate		33.8	%		36.4	%		41.5	%		34.1	%		34.9	%					33.8	%		34.9	%
Operating and Acquisition Expenses
General and administrative expenses		$ 87.1			$ 101.0			$ 99.0			$ 97.8			$ 96.1			10.3	%		$ 87.1			$ 96.1			10.3	%
Depreciation and amortization		2.4			2.5			1.7			2.0			2.2			-10.3	%		2.4			2.2			-10.3	%
Sub-advisory fees		8.3			9.0			9.8			10.1			11.0			31.8	%		8.3			11.0			31.8	%
Total general and administrative expenses		97.9			112.5			110.5			109.9			109.3			11.6	%		97.9			109.3			11.6	%
Taxes, licenses and fees		3.1			2.2			2.5			2.6			4.8			54.8	%		3.1			4.8			54.8	%
Total expenses incurred		101.0			114.7			113.0			112.5			114.1			12.9	%		101.0			114.1			12.9	%
Amortization of intangibles		1.9			1.9			2.0			2.0			2.0			5.3	%		1.9			2.0			5.3	%
Net expense		$ 103.0			$ 116.6			$ 115.0			$ 114.4			$ 116.1			12.7	%		$ 103.0			$ 116.1			12.7	%
General and administrative expenses basis on points of assets under																	(Basis Points	)								(Basis Points	)
management - Annualized		35			38			35			33			31			(4	)		35			31			(4	)

3/31/2006	PAGE 28
Investment Management
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Retail Fixed - Balance-Beginning-of-Period		$ 8.457			$ 8.638			$ 9.095			$ 9.371			$ 9.625			13.8	%		$ 8.457			$ 9.625			13.8	%
Sales *		0.906			0.905			0.942			0.965			0.951			4.9	%		0.906			0.951			4.9	%
Redemptions		(0.690	)		(0.632	)		(0.664	)		(0.779	)		(0.805	)		-16.6	%		(0.690	)		(0.805	)		-16.6	%
Transfers		0.025			(0.063	)		0.023			0.026			(0.056	)		NM			0.025			(0.056	)		NM
Net Flows		0.241			0.211			0.301			0.212			0.089			-62.9	%		0.241			0.089			-62.9	%
Net investment gains and change in market value		(0.060	)		0.246			(0.025	)		0.043			0.046			176.0	%		(0.060	)		0.046			176.0	%
Balance at End-of-Period		$ 8.638			$ 9.095			$ 9.371			$ 9.625			$ 9.761			13.0	%		$ 8.638			$ 9.761			13.0	%
Retail Equity - Balance-Beginning-of-Period		$24.278			$25.053			$27.725			$30.988			$32.732			34.8	%		$ 24.278			$32.732			34.8	%
Sales *		2.660			3.429			2.630			2.664			3.069			15.4	%		2.660			3.069			15.4	%
Redemptions		(1.456	)		(1.365	)		(1.186	)		(1.700	)		(1.840	)		-26.4	%		(1.456	)		(1.840	)		-26.4	%
Transfers		(0.019	)		(0.127	)		(0.025	)		(0.027	)		(0.013	)		30.6	%		(0.019	)		(0.013	)		30.6	%
Net Flows		1.185			1.936			1.419			0.936			1.216			2.6	%		1.185			1.216			2.6	%
Net investment gains and change in market value		(0.410	)		0.736			1.844			0.807			2.552			NM			(0.410	)		2.552			NM
Balance at End-of-Period		$25.053			$27.725			$30.988			$32.732			$36.500			45.7	%		$25.053			$36.500			45.7	%
Total Retail - Balance-Beginning-of-Period		$32.735			$33.691			$36.820			$40.359			$42.357			29.4	%		$32.735			$42.357			29.4	%
Retail sales-Annuities		0.713			0.701			0.642			0.713			0.885			24.1	%		0.713			0.885			24.1	%
Retail sales-Mutual Funds		1.520			1.487			1.331			1.657			1.329			-12.6	%		1.520			1.329			-12.6	%
Retail sales-Managed Acct. & Other		1.333			2.146			1.599			1.260			1.806			35.4	%		1.333			1.806			35.4	%
Total Retail Sales		3.566			4.334			3.572			3.629			4.019			12.7	%		3.566			4.019			12.7	%
Redemptions		(2.146	)		(1.997	)		(1.850	)		(2.479	)		(2.645	)		-23.2	%		(2.146	)		(2.645	)		-23.2	%
Transfers		0.006			(0.190	)		(0.002	)		(0.002	)		(0.069	)		NM			0.006			(0.069	)		NM
Net Flows		1.426			2.147			1.720			1.148			1.305			-8.5	%		1.426			1.305			-8.5	%
Net investment gains and change in market value		(0.471	)		0.982			1.819			0.850			2.598			NM			(0.471	)		2.598			NM
Balance at End-of-Period		$33.691			$36.820			$40.359			$42.357			$46.261			37.3	%		$33.691			$46.261			37.3	%
Institutional Fixed - Balance-Beginning-of-Period		$11.547			$12.715			$13.403			$13.964			$14.699			27.3	%		$11.547			$14.699			27.3	%
Inflows *		1.531			1.472			1.036			1.175			3.080			101.2	%		1.531			3.080			101.2	%
Withdrawals/terminations		(0.317	)		(1.016	)		(0.393	)		(0.483	)		(0.447	)		-40.8	%		(0.317	)		(0.447	)		-40.8	%
Transfers		0.001			(0.006	)		0.001			(0.001	)		0.002			181.7	%		0.001			0.002			181.7	%
Net Flows		1.214			0.450			0.643			0.691			2.636			117.1	%		1.214			2.636			117.1	%
Net investment gains and change in market value		(0.046	)		0.239			(0.083	)		0.044			(0.074	)		-59.4	%		(0.046	)		(0.074	)		-59.4	%
Balance at End-of-Period		$12.715			$13.403			$13.964			$ 14.699			$17.262			35.8	%		$12.715			$17.262			35.8	%
Institutional Equity - Balance-Beginning-of-Period		$12.849			$12.674			$16.627			$ 18.951			$20.576			60.1	%		$12.849			$20.576			60.1	%
Inflows *		0.662			4.638			2.131			3.658			1.964			196.7	%		0.662			1.964			196.7	%
Withdrawals/terminations		(0.532	)		(1.069	)		(0.948	)		(2.617	)		(1.008	)		-89.3	%		(0.532	)		(1.008	)		-89.3	%
Transfers		0.001			(0.144	)		(0.000	)		0.001			0.000			-88.0	%		0.001			0.000			-88.0	%
Net Flows		0.131			3.425			1.182			1.041			0.956			NM			0.131			0.956			NM
Net investment gains and change in market value		(0.306	)		0.528			1.141			0.584			1.373			NM			(0.306	)		1.373			NM
Balance at End-of-Period		$12.674			$16.627			$18.951			$20.576			$22.906			80.7	%		$12.674			$22.906			80.7	%
Total Institutional - Balance-Beginning-of-Period		$24.396			$25.390			$30.031			$32.915			$35.276			44.6	%		$24.396			$35.276			44.6	%
Inflows		2.193			6.110			3.166			4.833			5.044			130.0	%		2.193			5.044			130.0	%
Withdrawals/terminations		(0.850	)		(2.085	)		(1.342	)		(3.100	)		(1.454	)		-71.2	%		(0.850	)		(1.454	)		-71.2	%
Transfers		0.002			(0.151	)		0.000			(0.001	)		0.003			22.1	%		0.002			0.003			22.1	%
Net Flows		1.345			3.875			1.825			1.733			3.592			167.1	%		1.345			3.592			167.1	%
Net investment gains and change in market value		(0.352	)		0.766			1.058			0.629			1.299			NM			(0.352	)		1.299			NM
Balance at End-of-Period		$25.390			$30.031			$32.915			$35.276			$40.167			58.2	%		$25.390			$40.167			58.2	%
Total Retail and Institutional - At End-of-Period		$59.080			$66.851			$73.274			$77.633			$86.428			46.3	%		$59.080			$86.428			46.3	%
General Account Assets-End-of-Period		$42.992			$43.917			$43.095			$43.086			$41.995			-2.3	%		$42.992			$41.995			-2.3	%
Total Assets Under Management
At End-of-Period	$102.073			$110.768			$116.369			$120.719			$128.423			25.8		%	$102.073			$128.423				25.8	%
Total Retail and Institutional - Net Flows		$ 2.771			$ 6.022			$ 3.546			$ 2.881			$ 4.898			76.7	%		$ 2.771			$ 4.898			76.7	%
Subadvised Assets, included in Assets
Under Management above
Retail		$10.846			$12.202			$14.319			$15.388			$17.320			59.7	%		$10.846			$17.320			59.7	%
Institutional		4.258			4.564			4.986			5.114			5.608			31.7	%		4.258			5.608			31.7	%
Total Subadvised Assets		$15.104			$16.766			$19.305			$20.503			$22.928			51.8	%		$15.104			$22.928			51.8	%
* Sales and in-flows include dividend reinvestments.

3/31/2006	PAGE 29
Lincoln UK
Income Statements
Unaudited [Millions of Dollars]

	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Premiums		$ 14.6			$ 16.4			$ 16.9			$ 15.4			$ 16.6			13.3	%		$ 14.7			$ 16.6			13.3	%
Mortality assessments		9.0			9.4			9.0			7.3			7.8			-13.4	%		9.0			7.8			-13.4	%
Expense assessments		30.6			33.0			56.0			22.0			28.0			-8.8	%		30.7			28.0			-8.8	%
Net investment income		20.3			19.6			20.9			17.8			17.0			-16.1	%		20.3			17.0			-16.1	%
Total Operating Revenue		74.6			78.4			102.9			62.6			69.5			-7.0	%		74.7			69.5			-7.0	%
Operating Expenses
Insurance benefits		25.1			27.9			35.5			27.5			25.4			1.2	%		25.1			25.4			1.2	%
Operating and acquisition expenses		34.0			34.7			52.7			14.3			27.6			-18.8	%		34.0			27.6			-18.8	%
Total Operating Expenses		59.2			62.6			88.2			41.8			53.0			-10.3	%		59.1			53.0			-10.3	%
Income from operations before Federal income taxes		15.5			15.8			14.7			20.8			16.5			5.5	%		15.6			16.5			5.5	%
Federal income taxes		5.4			5.6			5.1			7.2			5.8			7.4	%		5.4			5.8			7.4	%
Income from Operations		$ 10.0			$ 10.2			$ 9.6			$ 13.6			$ 10.7			4.5	%		$ 10.2			$ 10.7			4.5	%
Effective tax rate on
Income from Operations		34.6	%		35.5	%		34.8	%		34.7	%		35.2	%					34.6	%		35.2	%
Average equity		$ 440.2			$ 446.4			$ 452.7			$ 447.8			$ 427.0						$ 440.2			$ 427.0
Return on average equity		9.3	%		9.1	%		8.4	%		12.1	%		10.0	%					9.3	%		10.0	%
Operating and Acquisition Expenses
Commissions		$ 0.6			$ 0.7			$ 0.9			$ 0.1			$ 0.9			58.5	%		$ 0.6			$ 0.9			58.5	%
General and administrative expenses		25.4			23.8			24.9			24.2			22.7			-10.7	%		25.4			22.7			-10.7	%
Total commissions and expenses incurred		25.9			24.5			25.8			24.3			23.6			-9.2	%		25.9			23.6			-9.2	%
Less: commissions and expenses capitalized		(0.7	)		(0.7	)		(0.7	)		(0.7	)		(0.5	)		27.1	%		(0.7	)		(0.5	)		27.1	%
Amortization of DAC and VOBA		8.8			10.8			27.5			(9.3	)		4.5			-48.7	%		8.8			4.5			-48.7	%
Net Operating and Acquisition Expenses		$ 34.0			$ 34.7			$ 52.7			$ 14.3			$ 27.6			-19.0	%		$ 34.0			$ 27.6			-19.0	%
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period		$ 867.0			$ 848.7			$ 792.4			$ 753.5			$ 743.4						$ 867.0			$ 743.4
Deferral		0.7			0.7			0.7			0.7			0.5						0.7			0.5
Amortization		(8.8	)		(10.8	)		(27.5	)		9.3			(4.5	)					(8.8	)		(4.5	)
Included in Total Benefits and Expenses		(8.1	)		(10.1	)		(26.8	)		10.0			(4.0	)					(8.1	)		(4.0	)
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			-			-			-						-			-
Foreign currency translation adjustment		(10.2	)		(46.2	)		(12.1	)		(20.0	)		7.7						(10.2	)		7.7
Balance at end of period		$ 848.7			$ 792.4			$ 753.5			$ 743.4			$ 747.2						$ 848.7			$ 747.2
Roll Forward of Deferred Front-End Load
Balance at beginning of period		$ 437.5			$ 428.3			$ 399.8			$ 365.8			$ 363.1						$ 437.5			$ 363.1
Deferral		1.5			1.1			0.9			0.7			1.0						1.5			1.0
Amortization		(5.5	)		(6.2	)		(29.0	)		6.0			(3.4	)					(5.5	)		(3.4	)
Included in Income from Operations		(4.0	)		(5.1	)		(28.1	)		6.7			(2.4	)					(4.0	)		(2.4	)
Foreign currency translation adjustment		(5.2	)		(23.3	)		(5.9	)		(9.5	)		3.8						(5.2	)		3.8
Balance at end of period		$ 428.3			$ 399.8			$ 365.8			$ 363.1			$ 364.5						$ 428.3			$ 364.5

3/31/2006																						PAGE 30
Lincoln UK
Operational Data
Unaudited [Billions of Dollars]
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Unit Linked Assets
Balance-Beg-of-Period	$	7.186		$	7.173		$	6.903		$	7.180		$	7.320			1.9	%	$	7.186		$	7.320			1.9	%
Deposits		0.075			0.070			0.088			0.156			0.069			-8.6	%		0.075			0.069			-8.6	%
Withdrawals (including charges) and Deaths		(0.175	)		(0.183	)		(0.192	)		(0.178	)		(0.186	)		-6.7	%		(0.175	)		(0.186	)		-6.7	%
Net Flows		(0.100	)		(0.113	)		(0.104	)		(0.023	)		(0.118	)		-18.3	%		(0.100	)		(0.118	)		-18.3	%
Investment income and change in market value		0.171			0.233			0.492			0.347			0.479			179.6	%		0.171			0.479			179.6	%
Foreign Currency Adjustment		(0.085	)		(0.390	)		(0.111	)		(0.184	)		0.072			184.9	%		(0.085	)		0.072			184.9	%
Unit Linked Assets - End-of-Period	$	7.173		$	6.903		$	7.180		$	7.320		$	7.754			8.1	%	$	7.173		$	7.754			8.1	%
Individual Life In-force	$	19.820		$	18.479		$	18.175		$	17.521		$	17.744			-10.5	%	$	19.820		$	17.744			-10.5	%
Exchange Rate - Dollars to Pounds
For-the-Period		1.904			1.855			1.779			1.747			1.754			-7.9	%		1.904			1.754			-7.9	%
End-of-Period		1.896			1.792			1.764			1.719			1.737			-8.4	%		1.896			1.737			-8.4	%

3/31/2006																						PAGE 31
Lincoln Financial Media
Income Statements
Unaudited [Millions of Dollars]
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Communications revenues, net
Total Operating Revenue
Operating Expenses
Cost of sales
Operating expenses
Broadcast cash flow
Depreciation and amortization
Operating and administrative expenses
Net interest expense and other
Total Operating Expenses
Income from operations before       Federal Income Taxes
Federal income taxes
Income from Operations
Effective tax rate on
Income from Operations
Other Operations (1)
Unaudited [Millions of Dollars]
		Three Months Ended																		Year-to-Date
		Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
		2005			2005			2005			2005			2006			Change			2005			2006			Change
Operating Revenue
Earnings on investments & other income	$	2.3		$	60.3		$	27.0		$	10.0		$	12.9			NM		$	2.3		$	12.9			NM
Amortization of deferred gain on
indemnity reinsurance(2)		18.9			18.9			18.9			18.9			18.8			-0.9	%		18.9			18.8			-0.9	%
Total Operating Revenue		21.2			79.2			45.9			28.9			31.7			49.6	%		21.2			31.7			49.6	%
Operating Expenses
Interest on debt		22.2			21.8			21.4			21.8			21.5			-3.0	%		22.2			21.5			-3.0	%
Operating expenses		6.5			50.3			28.5			12.8			12.2			88.1	%		6.5			12.2			88.1	%
Total Operating Expenses		28.6			72.2			49.9			34.6			33.7			17.6	%		28.6			33.7			17.6	%
Income from operations before Federal Income Taxes		(7.5	)		7.0			(4.0	)		(5.7	)		(2.0	)		73.1	%		(7.5	)		(2.0	)		73.1	%
Federal income taxes(3)		(10.0	)		(22.9	)		(16.3	)		(15.4	)		(2.2	)		78.5	%		(10.0	)		(2.2	)		78.5	%
Income from Operations	$	2.5		$	30.0		$	12.2		$	9.6		$	0.1			-94.4	%	$	2.5		$	0.1			-94.4	%
(1) Includes elimination of intercompany transactions.
(2) Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.
(3) Includes a reduction of the valuation allowance on the deferred tax asset of our foreign life reinsurance subsidiary of $5.7 million in the 1st quarter of 2005, $23.5 million in the 2nd quarter of 2005, $13.3 million in the 3rd quarter of 2005, $4.3 million in the 4th quarter of 2005, $46.8 million for the full year 2005

3/31/2006																									PAGE 32
Consolidated Domestic Deposits/Account Balances
Unaudited [Billions of Dollars]
	Three Months Ended																		Year-to-Date
	Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
	2005			2005			2005			2005			2006			Change			2005			2006			Change
Deposits - For the Period
Individual Markets - Fixed Annuities	$	0.472		$	0.534		$	0.494		$	0.486		$	0.471			-0.3	%	$	0.472		$	0.471			-0.3	%
Individual Markets - Variable Annuities		1.289			1.327			1.410			1.513			1.665			29.2	%		1.289			1.665			29.2	%
Individual Markets - Life Insurance		0.468			0.470			0.497			0.596			0.488			4.3	%		0.468			0.488			4.3	%
Employer Markets - Fixed Annuities		0.298			0.286			0.259			0.240			0.257			-13.7	%		0.298			0.257			-13.7	%
Employer Markets - Variable Products (1)		0.983			0.746			0.726			0.865			0.983			0.1	%		0.983			0.983			0.1	%
Employer Markets - Executive Benefits          & Other		0.044			0.056			0.057			0.052			0.047			5.4	%		0.044			0.047			5.4	%
Inv Mgmt - Annuities		0.713			0.701			0.642			0.713			0.885			24.1	%		0.713			0.885			24.1	%
Inv Mgmt - Mutual Funds		1.520			1.487			1.331			1.657			1.329			-12.6	%		1.520			1.329			-12.6	%
Inv Mgmt - Managed Acct. & Other		1.333			2.146			1.599			1.260			1.806			35.4	%		1.333			1.806			35.4	%
Consolidating Adjustments		(0.524	)		(0.670	)		(0.624	)		(0.617	)		(0.481	)		8.1	%		(0.524	)		(0.481	)		8.1	%
Total Gross Retail Deposits		6.596			7.085			6.391			6.763			7.449			12.9	%		6.596			7.449			12.9	%
Inv Mgmt - Institutional		2.193			6.110			3.166			4.833			5.044			130.0	%		2.193			5.044			130.0	%
Consolidating Adjustments		(0.375	)		(0.173	)		(0.217	)		(0.265	)		(0.257	)		31.4	%		(0.375	)		(0.257	)		31.4	%
Total Gross Deposits	$	8.414		$	13.023		$	9.340		$	11.331		$	12.236			45.4	%	$	8.414		$	12.236			45.4	%
Account Balances - End of Period
Individual Markets - Fixed Annuities	$	9.120		$	9.165		$	9.117		$	8.605		$	8.357			-8.4	%	$	9.120		$	8.357			-8.4	%
Individual Markets - Variable Annuities		31.100			32.801			35.276			37.662			40.440			30.0	%		31.100			40.440			30.0	%
Individual Markets - Life Insurance		13.328			13.496			13.745			14.051			14.268			7.1	%		13.328			14.268			7.1	%
Employer Markets - Fixed Annuities		10.688			10.710			10.686			10.995			11.015			3.1	%		10.688			11.015			3.1	%
Employer Markets - Variable Products (1)		17.509			18.080			18.965			19.474			20.780			18.7	%		17.509			20.780			18.7	%
Employer Markets - Executive Benefits         & Other		1.138			1.194			1.256			1.318			1.387			21.9	%		1.138			1.387			21.9	%
Inv Mgmt - Annuities		12.165			12.500			13.022			13.287			13.998			15.1	%		12.165			13.998			15.1	%
Inv Mgmt - Mutual Funds		14.040			14.929			15.738			16.231			17.101			21.8	%		14.040			17.101			21.8	%
Inv Mgmt - Managed Acct. & Other		7.486			9.392			11.599			12.839			15.162			102.5	%		7.486			15.162			102.5	%
Consolidating Adjustments		(11.584	)		(11.790	)		(12.229	)		(12.602	)		(13.282	)		-14.7	%		(11.584	)		(13.282	)		-14.7	%
Total Retail Account Balances		104.990			110.476			117.175			121.859			129.226			23.1	%		104.990			129.226			23.1	%
Inv Mgmt - Institutional		25.390			30.031			32.915			35.276			40.167			58.2	%		25.390			40.167			58.2	%
Consolidating Adjustments		(3.431	)		(3.405	)		(3.559	)		(3.422	)		(3.573	)		-4.1	%		(3.431	)		(3.573	)		-4.1	%
Total Account Balances	$	126.948		$	137.102		$	146.530		$	153.712		$	165.820			30.6	%	$	126.948		$	165.820			30.6	%
Total Domestic Net Flows
Unaudited [Billions of Dollars]
		Three Months Ended																		Year-to-Date
		Mar			Jun			Sep			Dec			Mar			%			Mar			Mar			%
For the Period Ended		2005			2005			2005			2005			2006			Change			2005			2006			Change
Individual Markets	$	0.880		$	1.011		$	1.012		$	1.167		$	1.026			16.6	%	$	0.880		$	1.026			16.6	%
Employer Markets		0.261			0.227			0.070			0.024			0.220			-15.5	%		0.261			0.220			-15.5	%
Investment Management - Retail		1.426			2.147			1.720			1.148			1.305			-8.5	%		1.426			1.305			-8.5	%
Consolidating Adjustments		(0.002	)		0.090			(0.053	)		0.015			0.083			NM			(0.002	)		0.083			NM
Total Retail Net Flows		2.565			3.476			2.749			2.354			2.635			2.7	%		2.565			2.635			2.7	%
Investment Management - Institutional		1.345			3.875			1.825			1.733			3.592			167.1	%		1.345			3.592			167.1	%
Consolidating Adjustments		(0.123	)		0.098			(0.050	)		0.198			(0.039	)		68.5	%		(0.123	)		(0.039	)		68.5	%
Total Net Flows	$	3.787		$	7.449		$	4.524		$	4.285		$	6.188			63.4	%	$	3.787		$	6.188			63.4	%
(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.

3/31/2006											PAGE 33
Consolidated Investment Data - Assets Managed
Unaudited [Billions of Dollars]
	As of
	Mar		Jun		Sep		Dec		Mar		%
	2005		2005		2005		2005		2006		Change
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	34.225	$	34.975	$	34.325	$	33.443	$	32.893		-3.9	%
Equity securities - available for sale		0.155		0.155		0.152		0.145		0.176		13.7	%
Trading securities		3.207		3.345		3.287		3.246		3.190		-0.5	%
Other investments		6.396		6.389		6.322		6.334		6.314		-1.3	%
Total LNC Investments		43.982		44.863		44.085		43.168		42.573		-3.2	%
Separate accounts		55.387		57.240		60.812		63.747		67.984		22.7	%
Cash and invested cash		1.499		1.659		1.602		2.312		1.974		31.7	%
Total LNC		100.868		103.762		106.498		109.227		112.531		11.6	%
Non-affiliate assets managed		45.039		52.643		58.446		62.528		70.464		56.5	%
Total Assets Managed	$	145.907	$	156.405	$	164.944	$	171.755	$	182.995		25.4	%
Assets Managed by Advisor
Investment Management segment
(See page 28 for additional detail)	$	59.080	$	66.851	$	73.274	$	77.633	$	86.428		46.3	%
DLIA-Corp
(Assets managed internally-see page --)		42.992		43.917		43.095		43.086		41.995		-2.3	%
Lincoln UK		8.578		8.278		8.518		8.562		8.986		4.8	%
Domestic Policy Loans (excluding Lincoln UK)		1.854		1.862		1.851		1.858		1.856		0.1	%
Non-LNC Affiliates		33.402		35.497		38.205		40.617		43.729		30.9	%
Total Assets Managed	$	145.907	$	156.405	$	164.944	$	171.755	$	182.995		25.4	%

3/31/2006																			PAGE 34
Consolidated Investment Data
Unaudited [Millions of Dollars]
	Three Months Ended
	Mar			Jun			Sep			Dec			Mar			%
	2005			2005			2005			2005			2006			Change
Net Investment Income
Fixed maturity AFS securities	$	505.1		$	509.8		$	505.7		$	509.7		$	513.7			1.7	%
Equity AFS securities		1.8			2.0			2.4			3.3			2.1			16.3	%
Trading securities		47.6			48.8			48.6			48.7			49.7			4.3	%
Mortgage loans on real estate		70.9			70.7			70.9			75.1			67.2			-5.3	%
Real estate		4.3			31.7			8.5			5.6			9.1			110.8	%
Policy loans		29.6			29.8			29.8			29.2			29.7			0.4	%
Invested cash		12.7			14.0			17.0			19.2			22.8			79.4	%
Other investments		13.5			24.2			16.4			7.0			14.6			7.9	%
Investment revenue		685.6			731.1			699.3			697.9			708.8			3.4	%
Investment expense		(25.8	)		(27.5	)		(28.5	)		(29.8	)		(30.4	)		-18.0	%
Net Investment Income		659.8			703.6			670.8			668.1			678.3			2.8	%
Gross-up of Tax Exempt Income		1.6			1.6			1.8			2.1			1.5			-2.9	%
Adjusted Net Invest Income	$	661.4		$	705.2		$	672.6		$	670.2		$	679.9			101.4	%
Mean Invested Assets (Amortized Cost)	$	43,851.9		$	43,806.2		$	44,040.1		$	44,035.2		$	44,363.6
Ratio of Adjusted Net Invest Income
Over Mean Invested Assets		6.03	%		6.44	%		6.11	%		6.09	%		6.13	%
		Three Months Ended
		Mar			Jun			Sep			Dec			Mar			%
Realized Investment Gains (Losses)		2005			2005			2005			2005			2006			Change
Fixed maturities	$	6.0		$	13.9		$	8.2		$	(5.6	)	$	4.3			-28.0	%
Equity securities		0.0			5.7			(0.6	)		2.2			0.3			NM
Other gains (losses), net		1.0			(2.7	)		5.4			6.3			(0.1	)		NM
Policyholders' interest		(1.8	)		0.3			0.7			(1.3	)		(1.8	)		-0.7	%
Capital gains expense		(2.4	)		(2.4	)		(2.4	)		(2.3	)		(2.4	)		-0.8	%
Sale of affiliate		14.2			-			-			-			-			-100.0	%
Total pretax gains (losses)		17.1			14.7			11.3			(0.8	)		0.3			-98.1	%
Amortization of DAC, VOBA and deferred
sales inducements		(11.5	)		(15.3	)		(14.0	)		(8.8	)		(10.8	)		6.4	%
Income taxes		2.2			(0.4	)		(0.7	)		(3.3	)		(3.3	)		NM
Realized investment gains (losses), net of taxes	$	3.3		$	(0.2	)	$	(2.0	)	$	(6.2	)	$	(7.2	)		NM
					As of March 31, 2006									As of Dec 31, 2005
					Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed Maturity Sec (Fair Value)				$	36,080.6			99.5	%				$	36,687.0			99.6	%
Fixed Maturity Sec (Amortized Cost)					35,497.4			99.6	%					35,347.6			99.6	%
Equity Securities (Fair Value)					178.2			0.5	%					146.9			0.4	%
Equity Securities (Amortized Cost)					160.0			0.4	%					139.0			0.4	%
% of Available-for-Sale Fixed Maturity      Securities (Based on Fair Value)
Treasuries and AAA								23.4	%								23.4	%
AA or better								31.0	%								30.9	%
BB or less								7.5	%								7.4	%
General Account Investments					As of March 31, 2006									As of Dec 31, 2005
					Amount			% of Total						Amount			% of Total
Fixed maturities- security sector:
Corporate bonds				$	25,418.0			77.3	%				$	25,860.7			77.3	%
U.S. government bonds					173.4			0.5	%					161.8			0.5	%
Foreign government bonds					1,169.7			3.6	%					1,203.3			3.6	%
Mortgage backed securities					5,868.8			17.8	%					5,951.2			17.8	%
State and municipal bonds					126.0			0.4	%					128.8			0.4	%
Preferred stocks - redeemable					136.9			0.4	%					137.4			0.4	%
Total				$	32,892.8			100.0	%				$	33,443.2			100.0	%
		As of
		Mar			Jun			Sep			Dec			Mar			%
		2005			2005			2005			2005			2006			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed Maturity	$	34,224.9		$	34,975.1		$	34,324.9		$	33,443.2		$	32,892.8			-3.9	%
Equity		154.8			154.5			151.6			144.7			176.0			13.7	%
Trading securities		3,206.5			3,345.1			3,287.0			3,246.0			3,190.1			-0.5	%
Mortgage loans on real estate & real estate		4,019.1			3,960.4			3,892.8			3,845.3			3,766.5			-6.3	%
Policy loans		1,860.5			1,866.9			1,856.4			1,862.2			1,860.4			-
Derivative Investments		104.6			156.6			155.9			174.7			199.3			90.5	%
Other investments		411.9			404.8			416.4			452.2			488.2			18.5	%
Total	$	43,982.2		$	44,863.3		$	44,085.0		$	43,168.4		$	42,573.2			-3.2	%

EX-99.2

Lincoln Financial Group

Financial Reporting Investor Call

July 11, 2006

Fred Crawford

Chief Financial Officer

Doug Miller
Chief Accounting Officer

1

Drivers of New Segmentation

Merger with Jefferson Pilot

Creation of Employer Markets segment

A “pure” asset manager presentation of

Delaware Investments

Consolidation of distribution expenses in

manufacturing segments

2

Annuity and Investment Products

Fixed and Equity-Indexed Annuities

Funding Agreements

Individual Products

UL/VUL, Traditional and

Term Life Insurance

Community Banks and BOLI

Benefit Partners

Group Term Life, Disability and

Dental Insurance

Communications

Radio, Television and

Sports Production

Corporate and Other

Excess Capital and

Corporate Investments

Jefferson Pilot Financial

Lincoln Financial Group

Retirement

Fixed and Variable Annuities

Alliance Mutual Funds

Institutional Pensions

Life Insurance

UL/VUL and ISWL

(including Single Life and
Survivorship) and Term

COLI/BOLI

Delaware Investments

Managed Accounts, Mutual Funds,

Institutional, 529 Plans and
General Account

Director/401(k)

Lincoln UK

Unit-Linked Life Insurance

and Pensions

Corporate and Other

Lincoln Financial Distributors

Lincoln Financial Advisors

Segments Before Merger

3

Individual

Markets

Investment

Management

Lincoln Financial

Media

Lincoln UK

Other

Operations

LFG

Consolidated

Employer

Markets

Annuities

Life

Retirement

Products

Executive

Benefits

Benefit

Partners

New Reporting Structure

4

Group LTD,

Group STD,

Group Life,

Dental

Benefit

Partners

Lincoln Financial Group

Delaware

Investments

Jefferson

Pilot

LFD

LFA

Director^®

Executive

 Benefits

(COLI)

Lincoln

Alliance^®

Program 

Multi-Fund^®

Group

Variable
Annuity

Life and

Annuity

Before: Employer Markets Segment

Employer-sponsored businesses were spread across the enterprise

5

After:Employer MarketsAlignment of Product, Distribution and MarketsProductsDirector^®Lincoln Alliance^® ProgramGroup Variable AnnuityMulti-Fund^®Executive Benefits (COLI)LTD/STDGroup LifeDentalDistributionBrokersFinancialPlannersIndependentAgentsTPAsConsultantsMarketsCorporateprivately-held business healthcare education

Internal Sales Professionals/ Relationship Managers

6

Investment

Management

Individual

Markets

Employer

Markets

Lincoln UK

Managed

Accounts,

Mutual Funds,

Institutional,

529 Plans and

General Account
Management

Life: UL/VUL

and ISWL
(Single Life and
Survivorship)
and Term

Annuities:

Variable, Fixed
and
Equity-Indexed
Annuities

Unit-Linked Life

Insurance and
Pensions

Retirement

Products: Director^®, Lincoln Alliance^® Program, Multi-Fund^®  and Group Variable
Annuity

Executive Benefits

and Other:

COLI, BOLI and

Pensions

Benefit Partners:

Group Life, Disability
and Dental

Radio, Television

and Sports
Production

Lincoln

Financial Media

Corporate and Shared Services

New Segment Business Mix

7

“Other Operations”

Reporting Changes

Includes:

Deferred gain amortization

Financing costs

Branding expenses

Earnings on excess capital

Earnings on corporate assets

Excludes:

Distribution expenses (P&L)

8

Statistical Supplement Changes

 Jefferson Pilot historical results

 5 period reporting format

 Combined production results

 Expense detail

 New businesses

9

Former JP

Annuity and Investment Products

Individual Products

Benefit Partners

Communications

Corporate and Other

3

1

Individual Markets

Life Insurance

UL/VUL and ISWL (Single Life and Survivorship) and Term 

Annuities

Variable, Fixed and Equity-Indexed Annuities

Employer Markets

Retirement Products

Director^®, Lincoln Alliance^® Program, Multi-Fund^® 

and Group Variable Annuities

Benefit Partners

Group Life, Disability and Dental

Executive Benefits and Other

COLI, BOLI and Pensions

Investment Management

Managed Accounts, Mutual Funds, Institutional,

529 Plans and General Account Management

Lincoln UK

Unit-Linked Life Insurance and Pensions

Lincoln Financial Media

Radio, Television and Sports Production

Other Operations

2

Segment Reporting Changes

Former Lincoln

Retirement

Life Insurance

Delaware Investments

Lincoln UK

Corporate and Other

(LFA and LFD)

10

1Q06 Reported

(millions of dollars)

1Q06 Revised

(millions of dollars)

Retirement

Life

Investment Management

Lincoln UK

Corporate

Total Income from

Operations

Individual Markets

   Annuities

   Life Insurance

Employer Markets

   Retirement Products

   Executive Benefits & Other

Investment Management

Lincoln UK

Other Operations

Total Income from Operations

* Includes restructuring charges of $0.2 million

$123

82

20

11

(15

$221

)

$66

69

52

8

15

11

0

$221

*

1Q06 Revised Income From Operations

(Lincoln Financial Only)

11

12

What Changed?

Includes restructuring and merger related expenses

Definition of Income From Operations

Income (loss) from operations represents after tax results

excluding, as applicable, realized gains or losses on
investments and derivatives, cumulative effect of
accounting changes, reserve changes on business sold
through reinsurance, gain on sale of subsidiaries and
book of business and loss on early retirement of debt.

13

*

Purchase price allocated of approximately $1.1 billion, net of deferred taxes, is related to Lincoln Financial Media. Includes approximately $700 million of goodwill and $650 million of intangibles.

Overall Earnings Impact Neutral to

Modestly Positive in 2006

Purchase Accounting

Deferred acquisition cost (DAC) to Value of

business acquired (VOBA)

Mark-to-market asset portfolio and corporate

debt

Goodwill and intangibles

Approximately $3.3 billion in goodwill*

14

Lincoln will not provide EPS Guidance

Approach to Guidance and Outlook

Outlook:

Market conditions and impact on production

Merger expense saves and integration costs

Capital management

Select earnings drivers

Annual earnings range on select businesses

Long-range ROE targets

15

Lincoln Financial Group

Financial Reporting Investor Call

Questions and Answers

16

Forward Looking Statements

Cautionary Language

This document and oral statements made during the presentation may contain information that includes or is based

upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements give expectations or forecasts of future events. You can identify these statements by the
fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,”
“expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a
discussion of future operating or financial performance. In particular, these include statements relating to future
actions, prospective services or products, future performance or results of current and anticipated services or
products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and
financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by

known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results.
These statements are based on current expectations and the current economic environment. They involve a number of
risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual
results could differ materially from those expressed or implied in the forward-looking statements. Among factors that
could cause actual results to differ materially are:

l

Problems arising with the ability to successfully integrate our and Jefferson-Pilot Corporation’s (“Jefferson-Pilot”)

businesses, which may affect our ability to operate as effectively and efficiently as expected or to achieve the
expected synergies from the merger or to achieve such synergies within our expected timeframe and the impact of the
application of purchase accounting on results of operations;

l

Legislative, regulatory or tax changes, both domestic and foreign, that affect the cost of, or demand for, our 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 such as Actuarial Guideline 38; restrictions on revenue sharing and 12b-1 payments; and the
potential for U.S. Federal tax reform;

l

The initiation 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 that result in changes in law; and (d) unexpected trial court rulings;

l

Changes in interest rates causing a reduction of investment income, the margins of our fixed annuity and life

insurance businesses and demand for our products;

l

A decline in the equity markets causing a reduction in the sales of our products, a reduction of asset fees that LNC

charges on various investment and insurance products, an acceleration of amortization of deferred acquisition costs,

the value of business acquired, deferred sales inducements and deferred front-end loads
and an increase in liabilities related to guaranteed benefit features of our variable annuity products;

l

Ineffectiveness of our various hedging strategies used to offset the impact of declines in the equity markets;

l

A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market

returns from our assumptions used in pricing our 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;

17

Forward Looking Statements

Cautionary Language

l

Changes in accounting principles generally accepted in the U.S. that may result in unanticipated changes to

our net income;

l

Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations, and the

adverse impact such action may have on our ability to raise capital and on our liquidity and financial condition;

l

Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries, and the adverse impact

such action may have on the premium writings, policy retention, and profitability of our insurance subsidiaries;

l

Significant credit, accounting, fraud or corporate governance issues that may adversely affect the value of certain

investments in the portfolios of our companies requiring that LNC realize losses on such investments;

l

The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including our

ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;

l

The adequacy and collectibility of reinsurance that we have purchased;

l

Acts of terrorism or war that may adversely affect our businesses and the cost and availability of reinsurance;

l

Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that

may affect the level of premiums and fees that we can charge for our products;

l

The unknown impact on our business resulting from changes in the demographics of our client base, as aging

baby-boomers move from the asset-accumulation stage to the asset-distribution stage of life;

l

Loss of key management, portfolio managers in the Investment Management segment, financial planners or

wholesalers; and

l

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. We describe additional risks in our recent Forms 10-K, 10-Q and 8-K and

other documents filed with the Securities and Exchange Commission. Moreover, we operate in a rapidly
changing and competitive environment. New risk factors emerge from time to time and it is not possible for
management to predict all such risk factors.

Further, it is not possible to assess the impact of all risk factors on our 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 undue reliance on forward-looking
statements as a prediction of actual results. In addition, we disclaim any current intention to update any
forward-looking statements to reflect events or circumstances that occur after the date of this document.

18