8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

                August 8, 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.

On August 8, 2006, the registrant issued a press release announcing its financial results for the quarter ended June 30, 2006, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference, and the registrant’s statistical supplement for the quarter ended June 30, 2006 is attached as Exhibit 99.2 and is incorporated herein by reference.

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

Item 9.01. Financial Statements and Exhibits

(c)   Exhibits.

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

Exhibit Number	Description
99.1	Press release dated August 8, 2006, announcing Lincoln National Corporation’s financial results for the quarter ended June 30, 2006.
99.2	Lincoln National Corporation Statistical Supplement for the Quarter Ended June 30, 2006.

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: August 8, 2006

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release dated August 8, 2006, announcing Lincoln National Corporation’s financial results for the quarter ended June 30, 2006.
99.2	Lincoln National Corporation Statistical Supplement for the Quarter Ended June 30, 2006.

EX-99.1

NEWS RELEASE

Lincoln Financial Group Reports Second Quarter 2006 Earnings

Robust Results Reflect Combined Earnings from the Jefferson-Pilot Merger

PHILADELPHIA, August 8, 2006 - Lincoln National Corporation (NYSE:LNC) today reported net income of $349.0 million, or $1.23 per diluted share for the second quarter of 2006. By comparison, net income for the second quarter of 2005 was $197.9 million, or $1.13 per diluted share.

Income from operations for the second quarter of 2006 was $351.4 million, or $1.24 per diluted share, compared with $203.6 million, or $1.16 per diluted share, in the second quarter of 2005. Income from operations was positively impacted by the merger with Jefferson-Pilot that closed on April 3, 2006, which contributed approximately $145 million to earnings in the quarter.

Return on equity (ROE), based on income from operations, for the quarter was 12.4%. The attached table defines and reconciles income from operations and ROE, non-GAAP measures, to net income and ROE calculated in accordance with GAAP.

Consolidated domestic retail deposits, which include individual annuities, mutual funds, life insurance and other personal wealth accumulation products together with retirement products sold into the employer-sponsored marketplace, reached $7.5 billion, up 6% over the second quarter of 2005. Lincoln reported consolidated retail net flows for the quarter of $1.9 billion. Investment management institutional deposits were $2.8 billion for the quarter with $687 million in net flows. At June 30, 2006, consolidated assets under management were $212 billion, an increase of 15% after adjusting for the combination with Jefferson-Pilot, which added approximately $29 billion to assets under management.

“In our first quarter of combined operations, our results underscore Lincoln’s enhanced earnings engine and improved presence in the marketplace as well as the integration expertise of our management team,” said Jon A. Boscia, chairman and chief executive officer of Lincoln Financial Group.

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Individual Markets

Individual Annuities

Second quarter income from operations for the Individual Annuities segment was $89.0 million versus $52.5 million for the same period a year ago. Approximately 50% of the growth in income from operations was driven by the Jefferson-Pilot merger. The current quarter’s results benefited from approximately $3 million, after tax, primarily related to better than expected investment income and favorable DAC unlocking, which was partially offset by slightly negative hedge program results.

In the quarter, gross deposits reached $2.8 billion and net flows were $844 million, both fueled by individual variable annuity deposits of $2.4 billion, an increase of 31% over the second quarter of 2005. Lincoln’s i4LIFE^®Advantage, a retirement income solution, continued to excel in the market, as elections increased 69% over 2005 levels.

“Despite the highly competitive marketplace and many new features introduced this year, we continued to see momentum in our variable annuity results, driven by broad-based distribution and quality products,” said Boscia.

Individual Life Insurance

Individual Life Insurance income from operations was $147.1 million, compared to $62.6 million in the second quarter of 2005. The year-over-year variance was primarily driven by the merger with Jefferson-Pilot, accounting for approximately 80% of the increase in earnings. The 2006 quarter was favorably impacted by approximately $10 million, after tax, largely related to better than expected investment returns and positive DAC unlocking.

Combined individual life insurance sales, reported as paid annualized premium, decreased 4% in the quarter as compared to the prior year period. Sequentially, the current quarter’s combined life insurance sales gained 10%.

“A challenging market, together with success in curtailing IOLI sales, has pressured life insurance production,” said Boscia. “Work has begun to integrate product portfolios and I’m encouraged by the momentum in the wirehouse channel where production has doubled since last year,” Boscia added.

Employer Markets

Retirement Products & Other

Retirement Products

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Second quarter income from operations for Retirement Products was $54.3 million versus $45.3 million for the same period a year ago. The growth in earnings reflected $1.8 billion of account value expansion, driving an 11% increase in fee income and included approximately $2 million, after tax, of better than expected investment income.

Excluding approximately $130 million of assets transferred from the Jefferson Pilot 401k plan in the current quarter, gross deposits were $1 billion, consistent with the same period results in 2005. By product, deposits varied in the period with growth in Lincoln Director^SM, a small-case group variable annuity product, offset by declines in Lincoln Alliance^® Program, a large-case employer-sponsored retirement plan solution. Alliance deposits can vary on a quarter-to-quarter basis with the second quarter of 2005 being one of our strongest since introducing the product.

“As the market’s reliance on employee funded plans increases, Lincoln is focused on solidifying its employer-sponsored strategy and is well-positioned to execute on a complimentary product portfolio and integrated distribution platform. Our product and distribution balance allowed us to match the $1 billion in deposits from the same period in 2005 despite Alliance’s shortfall,” said Boscia.

Executive Benefits & Other

Executive Benefits and Other income from operations was $16.2 million, compared to $4.3 million in the second quarter of 2005. Approximately 50% of the growth in earnings was related to the addition of the principally BOLI-based executive benefits business from the Jefferson-Pilot merger, with the remaining increase attributable to growth in the inforce COLI/BOLI business and improved mortality margin in the institutional pension business.

Benefit Partners

For the second quarter, Benefit Partners’ income from operations was $37.0 million, up 74% over the prior year period, as reported by Jefferson-Pilot. The current quarter benefited by approximately $11 million, after tax, due to a better than expected non-medical loss ratio of 64.7%, driven by favorable long-term disability claims incidence and terminations.

In the quarter, annualized premiums for new business were $45.3 million, reflecting pricing discipline in a highly competitive market and a significant decline in the larger-case disability premiums.

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“Consistent with industry results, we have seen significant weakness in the price-competitive large-case market while experiencing more modest declines in our core small case business, which we define as less than 200 lives,” said Boscia.

Investment Management

Investment Management reported income from operations of $12.0 million for the quarter, compared to an operating loss of $1.4 million for the same period a year ago. Year-over-year growth was primarily attributable to a 29% increase in third-party assets under management. Earnings were impacted by a number of small items, including adverse markets and the installation of a new fee structure in Delaware's management of the Lincoln general account assets. Together these items impacted the quarter's results by $3 million, after tax. The second quarter of 2005 included approximately $4 million of expenses associated with investment talent acquisitions.

In the quarter, total deposits reached $6.0 billion and net flows were slightly over $1.0 billion. Strong inflows in 2005 and 2006 have resulted in capacity constraints in the International ADR managed account product and two of the Large Cap Growth products, contributing to the reduced deposits in the quarter as compared to the record results in the year-ago period. “The second quarter of 2006 marked 8 consecutive quarters of net flows in excess of $1 billion, highlighting one of the more consistently strong growth records in the business,” said Boscia.

Lincoln UK

For the second quarter, the UK segment’s income from operations was $9.9 million, which compares with $10.3 million in the second quarter of 2005.

Lincoln Financial Media

Lincoln Financial Media income from operations was $11.9 million in the second quarter of 2006, down approximately $3 million as compared to the second quarter of 2005 as reported by Jefferson-Pilot. The quarter’s results were primarily impacted by expenses associated with stock options and the amortization of merger-related intangible assets.

Other Operations

The Other Operations line has undergone significant changes to include the corporate held assets of the former Jefferson-Pilot, income on unallocated capital, and branding expenses. Other Operations recorded an operating loss for the second quarter of $26.1 million, versus income from operations of $30.1 million in the second quarter of 2005. The current quarter included an $11 million, after tax, impact of merger-related expenses, partially offset by approximately $3 million, after tax, of better than expected

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investment income. The second quarter of 2005 included approximately $50 million, after-tax, of better than expected investment income and a reduction in a deferred tax asset valuation allowance. Interest expense for the period was $42 million, after-tax, an increase of $28 million over the same period in 2005, reflecting merger-related financing and the consolidation of existing Jefferson-Pilot debt.

Capital and Share Repurchase

As of June 30, 2006, the book value of Lincoln National Corporation common stock, excluding accumulated other comprehensive loss, was $40.60, compared with $31.56 a year ago. Book value, including accumulated other comprehensive loss, was $40.48, compared with $36.87 a year ago. As previously announced, Lincoln repurchased approximately 8.1 million shares in the second quarter of 2006 as part of the accelerated share repurchase program (ASR) the company entered on April 3, 2006. On July 18, 2006, Lincoln completed the ASR and retired another 779,000 shares, bringing the total number of shares repurchased to 8.84 million shares.

2006 Outlook

Merger Integration

Integration remains on track with realized pre-tax savings in the quarter of $18 million, yielding an annualized run-rate savings of approximately $75 million and on course for achieving the $90 million run-rate savings target in the first year after closing the merger. Lincoln maintains its three-year, annualized run-rate merger savings estimate of $180 million.

Individual Annuities

For the Individual Annuities segment, Lincoln anticipates income from operations, as reported in the second quarter of 2006, to benefit from solid variable flows, excluding the period’s net favorable items and adjusting for the equity markets. In the second half of 2006, the company expects continued pressure on fixed flows.

Individual Life Insurance

Lincoln expects the Individual Life segment’s income from operations to build modestly from results reported in the second quarter after factoring in the positive DAC unlocking and favorable investment results in the quarter. With competitive pressures and the company’s current product-line integration efforts underway, Lincoln expects individual life sales for the second half of 2006 to modestly outperform the first two quarters of 2006.

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Employer Markets

Acknowledging the newness of Employer Markets as a standalone segment, Lincoln expects improved variable deposits and flows throughout the second half of 2006 with more modest growth in earnings, as incremental asset growth may be offset by competitive pressures on crediting rate activity and its impact on spreads. The segment’s earnings are also impacted by changes in the equity markets. Lincoln anticipates Benefit Partners to return to normal non-medical loss ratios in the range of 71-75% with modestly better sales results as the year continues.

Earnings Estimates

Lincoln expects income from operations for Investment Management to be in the mid-$50 million range, recognizing results are sensitive to the equity markets and acknowledging a slightly more than $1 million negative impact per quarter related to the new general account management fee structure.

For the UK segment, Lincoln continues to estimate 2006 earnings in the mid to upper $30 million range, assuming stable exchange rates.

For Lincoln Financial Media, the company expects 2006 income from operations to be in the upper $30 million range for the last nine months of the year.

Capital Management

During the remaining six months of 2006, Lincoln intends to repurchase $350-500 million of shares of our common stock. As part of this repurchase activity the company expects to execute another accelerated stock buyback program of approximately $350 million as soon as practicable.

This outlook contains estimates that are forward-looking, and Lincoln’s actual experience in 2006 will almost certainly differ because of the many assumptions utilized in the outlook as well as a large number of other factors that will probably change, which may lead us to revise our estimates over time, such as changes that may result from our annual comprehensive review of the assumptions underlying DAC, VOBA, and DFEL that will occur during the third quarter. Please see the Forward-Looking Statements - Cautionary Language that follow for additional factors that may cause actual results to differ materially from our current expectations.

Lincoln National Corporation will discuss the company’s second quarter results with investors in a conference call beginning at 11:00 a.m. (ET) on Wednesday, August 9, 2006. The company will also post its second quarter 2006 statistical supplement on its Web site, www.LFG.com.

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Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in Philadelphia, Lincoln Financial Group had consolidated assets of $167 billion as of June 30, 2006, and had annual consolidated revenues of $5.5 billion in 2005. The company offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Company affiliates include: Lincoln Financial Distributors, which provides wholesaling and marketing support; Lincoln Financial Advisors and Jefferson Pilot Securities Corp., Lincoln Financial Retail Distribution, a national network of financial planners, agents, and registered representatives; Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; Lincoln Financial Media, which owns and operates three television stations, 18 radio stations, and the Lincoln Financial Sports production and syndication business; and Lincoln UK. For more information please visit www.LFG.com.

Contacts:	Jim Sjoreen	Laurel O’Brien
	215 448-1420	215 255-1520
	Investor Relations	Media Relations
	investorrelations@LFG.com	mediarelations@LFG.com

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Definition of Income (Loss) from Operations and ROE

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

	For the Quarter						For the Six Months
($ in millions, except per share data)	Ended June 30,						Ended June 30,
	2006			2005			2006			2005
Net Income	$	349.0		$	197.9		$	570.2		$	376.8
Less:
Net realized loss on investments		(3.8	)		(2.6	)		(8.2	)		(7.3	)
Net gain on reinsurance
derivative/trading account securities		1.2			(3.3	)		5.0			(0.5	)
Reserve development and related amortization
on business sold through reinsurance		0.2			0.2			0.4			0.4
Gain on sale of subsidiaries/ businesses		-			-			-			9.3
Income from Operations	$	351.4		$	203.6		$	573.0		$	374.9
Earnings per share (diluted)
Net Income	$	1.23		$	1.13		$	2.47		$	2.14
Income from Operations	$	1.24			1.16		$	2.48		$	2.13
Average Equity
(Excluding accumulated other comprehensive income)	$	11,311.3		$	5,407.1		$	8,633.1		$	5,356.2
Return on Equity
Net Income		12.3	%		14.6	%		13.2	%		14.1	%
Income from Operations		12.4	%		15.1	%		13.3	%		14.0	%

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LINCOLN NATIONAL CORPORATION

DIGEST OF EARNINGS

	For the Quarter Ended June 30
	2006		2005
Revenue	$	2,495,592,450	$	1,374,359,835
Net Income		348,968,242		197,900,000
EPS - Basic	$	1.25	$	1.15
EPS - Diluted	$	1.23	$	1.13
Avg. Shares - Basic		279,117,917		172,758,060
Avg. Shares - Diluted		282,620,341		175,353,027
	For the Six Months Ended June 30
		2006		2005
Revenue	$	3,917,437,728	$	2,693,579,450
Net Income		570,196,163		376,804,394
EPS - Basic	$	2.51	$	2.18
EPS - Diluted	$	2.47	$	2.14
Avg. Shares - Basic		227,136,449		173,224,239
Avg. Shares - Diluted		230,532,255		175,811,246

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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:

•   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;

•   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;

•   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;

•   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;

•   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;

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

•   A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates 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;

•   Changes in accounting principles generally accepted in the U.S. that may result in unanticipated changes to our net income;

•   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;

•   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;

•   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;

•   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;

•   The adequacy and collectibility of reinsurance that we have purchased;

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

•   Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that we can charge for our products;

•   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;

•   Loss of key management, portfolio managers in the Investment Management segment, financial planners or wholesalers; and

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

The risks included here are not exhaustive. 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.

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EX-99.2

Lincoln Statistical Report
	secondQ U A R T E R
2 0 0 6
The financial data in this document is dated August 8, 2006 and has not been updated since that date. LNC does not intend to update this document.

Lincoln Financial Group
Statistical Report
Second 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

6/30/2006		ii
NOTES
On April 3, 2006, LNC completed its previously announced merger with Jefferson Pilot Corporation ("JP"). Beginning with the second quarter of 2006, we are reporting 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. Historical information presented in this report has been restated to reflect the new organizational structure. 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," "Return on Capital," and "Broadcast Cash Flow" 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, capital securities 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.
*	Broadcast cash flow is calculated as communications revenues less operating costs and expenses before depreciation and amortization.
Income from operations, operating revenue, return on capital, and broadcast cash flow 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 from new policies
	* 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 expense items. 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 a component of either other revenue, benefits expense or DAC amortization.
*	Investment Management Advisory Fees and General 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.

6/30/2006																						PAGE 1
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
	For the Quarter Ended June 30												For the Six Months Ended June 30
	2006			2005						%			2006			2005						%
	Amount			Amount			Change			Change			Amount			Amount			Change			Change
Income from Operations - By Segment
Individual Life Insurance	$	147.1		$	62.6		$	84.5			135.0	%	$	216.1		$	120.8		$	95.3			78.9	%
Individual Annuities		89.0			52.5			36.5			69.5	%		155.5			102.1			53.4			52.3	%
Individual Markets		236.1			115.1			121.0			105.1	%		371.6			222.8			148.8			66.8	%
Retirement Products		54.3			45.3			9.0			19.9	%		106.8			88.5			18.3			20.7	%
Benefit Partners		37.0			-			37.0			NM			37.0			-			37.0			NM
Executive Benefits & Other		16.2			4.3			11.9			276.7	%		23.8			7.7			16.1			209.1	%
Employer Markets		107.6			49.6			58.0			116.9	%		167.6			96.2			71.4			74.2	%
Investment Management		12.0			(1.4	)		13.4			NM			27.3			3.1			24.2			NM
Lincoln UK		9.9			10.3			(0.4	)		-3.9	%		20.6			20.2			0.4			2.0	%
Lincoln Financial Media		11.9			-			11.9			NM			11.9			-			11.9			NM
Other Operations		(26.1	)		30.1			(56.2	)		NM			(26.0	)		32.5			(58.5	)		NM
Total Income from Operations (1)		351.4			203.6			147.8			72.6	%		573.0			374.9			198.1			52.8	%
Realized losses		(3.8	)		(2.7	)		(1.1	)		-40.7	%		(8.2	)		(7.4	)		(0.8	)		-10.8	%
Net gain (loss) on reinsurance
derivative/trading account securities		1.2			(3.3	)		4.5			136.4	%		5.0			(0.5	)		5.5			NM
Gain on sale of subsidiaries/ businesses		-			-			-			NM			-			9.3			(9.3	)		-100.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2			-			-			0.4			0.4			-			-
Net Income	$	349.0		$	197.9		$	151.1			76.4	%	$	570.2		$	376.8		$	193.4			51.3	%
Earnings per share (diluted)
Income from Operations (1)	$	1.24		$	1.16		$	0.08			6.9	%	$	2.48		$	2.13		$	0.35			16.4	%
Realized losses		(0.01	)		(0.01	)		-			-			(0.04	)		(0.04	)		-			-
Net gain (loss) on reinsurance
derivative/trading account securities		-			(0.02	)		0.02			100.0	%		0.02			-			0.02			NM
Gain on sale of subsidiaries/ businesses		-			-			-			NM			-			0.05			(0.05	)		-100.0	%
Reserve development/ amortization of related deferred gain		-			-			-			NM			-			-			-			NM
Net Income	$	1.23		$	1.13		$	0.10			8.8	%	$	2.47		$	2.14		$	0.33			15.4	%
Operating Revenue- By Segment
Individual Life Insurance	$	901.4		$	475.4		$	426.0			89.6	%	$	1,402.0		$	951.0		$	451.0			47.4	%
Individual Annuities		552.6			348.2			204.4			58.7	%		927.4			688.0			239.4			34.8	%
Individual Markets		1,454.0			823.6			630.4			76.5	%		2,329.4			1,639.0			690.4			42.1	%
Retirement Products		248.9			234.3			14.6			6.2	%		498.1			467.6			30.5			6.5	%
Benefit Partners		354.9			-			354.9			NM			354.9			-			354.9			NM
Executive Benefits & Other		101.2			53.2			48.0			90.2	%		158.4			106.3			52.1			49.0	%
Employer Markets		704.9			287.5			417.4			145.2	%		1,011.3			573.9			437.4			76.2	%
Investment Management		134.7			114.4			20.3			17.7	%		274.3			224.2			50.1			22.3	%
Lincoln UK		81.4			78.4			3.0			3.8	%		150.9			153.0			(2.1	)		-1.4	%
Lincoln Financial Media		57.7			-			57.7			NM			57.7			-			57.7			NM
Other Operations		67.6			79.2			(11.6	)		-14.6	%		99.3			100.4			(1.1	)		-1.1	%
Total Operating Revenue		2,500.3			1,383.2			1,117.1			80.8	%		3,922.8			2,690.7			1,232.1			45.8	%
Realized losses		(6.7	)		(4.0	)		(2.7	)		-67.5	%		(13.6	)		(11.2	)		(2.4	)		-21.4	%
Gain (loss) on reinsurance
derivative/trading account securities		1.8			(5.1	)		6.9			NM			7.7			(0.7	)		8.4			NM
Gain on sale of subsidiaries/ businesses		-			-			-			NM			-			14.2			(14.2	)		-100.0	%
Amortization of deferred gain-reserve development		0.3			0.3			-			-			0.6			0.6			-			-
Total Revenue	$	2,495.6		$	1,374.4		$	1,121.2			81.6	%	$	3,917.4		$	2,693.6		$	1,223.8			45.4	%

⁽¹⁾ Income from operations includes after-tax restructuring charges of $6.2 million, or 2 cents per share, and $15.0 million, or 9 cents per share, for the quarters ended June 30, 2006 and 2005, respectively, and $6.5 million, or 2 cents per share, and $16.3 million, or 9 cents per share, for the six months ended June 30, 2006 and 2005, respectively.

6/30/2006																				PAGE 2
Financial Highlights
Unaudited [in Billions]
Operational Data by Segment	For the Quarter Ended June 30											For the Six Months Ended June 30
	2006			2005					%			2006			2005					%
	Amount			Amount		Change			Change			Amount			Amount		Change			Change
Individual Markets
Individual Annuities
Gross deposits	$	2.750		$	1.862	$	0.888			47.7	%	$	4.886		$	3.623	$	1.263			34.9	%
Net flows		0.844			0.748		0.096			12.8	%		1.613			1.392		0.222			15.9	%
Account values (gross)		61.219			44.242		16.976			38.4	%		61.219			44.242		16.976			38.4	%
Account values (net of reinsurance)		59.070			41.966		17.104			40.8	%		59.070			41.966		17.104			40.8	%
Individual Life Insurance
Sales (in millions) (1)		132.3			74.3		58.0			78.1	%		200.3			139.6		60.6			43.4	%
Life insurance in-force		490.027			306.727		183.300			59.8	%		490.027			306.727		183.300			59.8	%
Account values		25.479			13.496		11.982			88.8	%		25.479			13.496		11.982			88.8	%
Employer Markets
Retirement Products
Gross deposits (2)	$	1.159		$	1.032	$	0.127			12.3	%	$	2.400		$	2.313	$	0.087			3.8	%
Net flows		0.114			0.181		(0.067	)		-37.0	%		0.295			0.418		(0.123	)		-29.4	%
Account values - annuities		27.194			25.358		1.836			7.2	%		27.194			25.358		1.836			7.2	%
Alliance Mutual Funds		4.330			3.432		0.899			26.2	%		4.330			3.432		0.899			26.2	%
Account values including Alliance Mutual Funds		31.524			28.790		2.735			9.5	%		31.524			28.790		2.735			9.5	%
Executive Benefits
COLI/BOLI sales (in millions)		17.2			5.0		12.2			244.0	%		34.1			22.7		11.4			50.2	%
Life insurance in-force		15.373			7.278		8.095			111.2	%		15.373			7.278		8.095			111.2	%
Account values		4.228			1.194		3.033			254.0	%		4.228			1.194		3.033			254.0	%
Benefit Partners
Annualized sales (in millions)		45.3			-		45.3			NM			45.3			-		45.3			NM
Loss ratio (3)		64.7	%		-		NM			NM			64.7	%		-		NM			NM
Investment Management Segment
Retail deposits	$	3.282		$	4.334	$	(1.052	)		-24.3	%	$	7.302		$	7.900	$	(0.598	)		-7.6	%
Retail net flows		0.322			2.147		(1.826	)		-85.0	%		1.627			3.574		(1.947	)		-54.5	%
Institutional in-flows		2.764			6.110		(3.346	)		-54.8	%		7.808			8.303		(0.495	)		-6.0	%
Institutional net flows		0.687			3.875		(3.188	)		-82.3	%		4.279			5.220		(0.941	)		-18.0	%
Total Deposits and In-flows		6.046			10.444		(4.398	)		-42.1	%		15.110			16.203		(1.093	)		-6.7	%
Total Net Flows		1.008			6.022		(5.014	)		-83.3	%		5.906			8.794		(2.888	)		-32.8	%
Assets Under Management- Retail and Institutional		85.926			66.851		19.075			28.5	%		85.926			66.851		19.075			28.5	%
Assets Under Management - General Account		65.637			43.917		21.720			49.5	%		65.637			43.917		21.720			49.5	%
Assets Under Management - Total Segment		151.563			110.768		40.794			36.8	%		151.563			110.768		40.794			36.8	%
Consolidated
Domestic Retail Deposits	$	7.519		$	7.085	$	0.434			6.1	%	$	14.968		$	13.681	$	1.287			9.4	%
Domestic Retail Account Balances		153.286			110.476		42.810			38.8	%		153.286			110.476		42.810			38.8	%
Domestic Retail Net Flows		1.854			3.476		(1.622	)		-46.7	%		4.489			6.041		(1.552	)		-25.7	%
Domestic Deposits		9.917			13.023		(3.105	)		-23.8	%		22.153			21.436		0.717			3.3	%
Domestic Net Flows		2.494			7.449		(4.955	)		-66.5	%		8.682			11.236		(2.554	)		-22.7	%
Assets Under Management		212.495			156.405		56.089			35.9	%		212.495			156.405		56.089			35.9	%

⁽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 deposits for Alliance Mutual Funds which are not included in separate account liabilities on our balance sheet.

⁽³⁾ Represents combined loss ratio for Life, Disability and Dental business.

6/30/2006																				PAGE 3
Financial Highlights
Unaudited [Millions of Dollars, except Common Share Data]
	For the Quarter Ended June 30											For the Six Months Ended June 30
	2006			2005					%			2006			2005					%
	Amount			Amount			Change		Change			Amount			Amount			Change		Change
Balance Sheet Assets - End of Period	$	167,380.0		$	119,014.5		$	48,365.5		40.6	%	$	167,380.0		$	119,014.5		$	48,365.5		40.6	%
Shareholders' Equity
Beg of period (including AOCI)	$	6,338.2		$	6,043.0		$	295.3				$	6,384.4		$	6,175.6		$	208.8
End of period (including AOCI)		11,404.8			6,363.5			5,041.3					11,404.8			6,363.5			5,041.3
End of period (excluding AOCI)		11,439.8			5,448.4			5,991.5					11,439.8			5,448.4			5,991.5
Average equity (excluding AOCI)		11,311.3			5,407.1			5,904.2					8,633.1			5,356.2			3,276.9
Return on Equity
Net income/average equity (excluding AOCI)		12.3	%		14.6	%							13.2	%		14.1	%
Inc from operations/average equity (excluding AOCI)		12.4	%		15.1	%							13.3	%		14.0	%
Return on Capital
Inc from operations/average capital		10.1	%		12.5	%							11.0	%		11.7	%
Common Stock Outstanding
Average for the period - diluted		282.6			175.4			107.3		61.2	%		230.5			175.8			54.7		31.1	%
End of period - assuming conv of preferreds		281.8			172.6			109.2		63.2	%		281.8			172.6			109.2		63.2	%
End of period - diluted		285.0			174.8			110.1		63.0	%		285.0			174.8			110.1		63.0	%
Book value (including AOCI)	$	40.48		$	36.87		$	3.61		9.8	%	$	40.48		$	36.87		$	3.61		9.8	%
Book value (excluding AOCI)	$	40.60		$	31.56		$	9.04		28.6	%	$	40.60		$	31.56		$	9.04		28.6	%
Cash Returned to Shareholders
Share repurchase - dollar amount	$	502.6		$	69.0		$	433.6				$	502.6		$	103.6		$	399.0
Dividends declared to shareholders		147.4			63.6			83.9					214.9			127.3			87.6
Total Cash Returned to Shareholders	$	650.0		$	132.6		$	517.5				$	717.5		$	230.9		$	486.6
Share repurchase - number of shares		8.060			1.576			6.484					8.060			2.331			5.729
Dividend declared on common stock - per share	$	0.380		$	0.365		$	0.015		4.1	%	$	0.760		$	0.730		$	0.030		4.1	%
Dividend payout ratio (1)		30.9	%		32.3	%							30.7	%		34.1	%
Annualized yield (2)		2.7	%		3.1	%							2.7	%		3.1	%
Comprehensive Income (Loss)
Net income	$	349.0		$	197.9							$	570.2		$	376.8
Net unrealized gains (losses) on securities		(371.7	)		268.4								(648.1	)		28.4
Gains (losses) on derivatives		16.4			4.2								44.2			(2.2	)
Foreign currency translation		38.8			(37.1	)							45.1			(44.9	)
Minimum pension liability adjustment		(3.5	)		2.6								(4.0	)		3.2
Comprehensive Income	$	29.0		$	435.9							$	7.3		$	361.3
Ratios:
Debt to total capitalization (3)		22.1	%		22.3	%							22.1	%		22.3	%
Debt to equity (3)		28.5	%		28.7	%							28.5	%		28.7	%
Ratings as of August 1, 2006:		A.M.								Standard
		Best			Fitch			Moody's		& Poors
Senior Debt Ratings:		a			A			A3		A+
Financial Strength 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			N/R		AA

^[1] Indicated dividend divided by net income

^[2] Indicated dividend divided by the closing price

^[3] Equity used in calculation excludes accumulated other comprehensive income (loss). Capital securities are considered 25% debt and 75% equity. The calculation for the second quarter of 2006 includes adjustments to beginning equity for stock issued in connection with the April 3, 2006 merger with Jefferson-Pilot Corporation ("JP") and the accelerated stock repurchase transaction.

6/30/06																		PAGE 4
Combined Production Data (1)
Unaudited [in Billions]
	Three Months Ended													Six Months Ended
	Jun		Sep		Dec		Mar		Jun		%			Jun		Jun		%
	2005		2005		2005		2006		2006		Change			2005		2006		Change
Individual Markets
Individual Life Insurance
Sales by Product (millions)
Universal Life
Excluding MoneyGuard	$	102.0	$	118.8	$	117.2	$	83.4	$	97.5		-4.4	%	$	186.9	$	180.9		-3.2	%
MoneyGuard		8.0		9.1		9.4		7.7		7.5		-6.3	%		15.4		15.2		-1.3	%
Total		110.0		127.9		126.5		91.1		105.0		-4.5	%		202.3		196.1		-3.1	%
Variable universal life		17.1		14.5		20.6		16.4		15.7		-8.2	%		35.4		32.1		-9.3	%
Whole life		0.7		0.8		0.9		1.2		0.4		-42.9	%		2.1		1.6		-23.8	%
Term		10.2		10.0		10.7		11.2		11.3		10.8	%		20.8		22.5		8.2	%
Total Sales by Product	$	138.0	$	153.2	$	158.7	$	120.0	$	132.3		-4.1	%	$	260.5	$	252.3		-3.1	%
Individual Annuity Deposits
Fixed	$	0.634	$	0.600	$	0.567	$	0.560	$	0.644		1.6	%	$	1.178	$	1.205		2.3	%
Variable		1.339		1.424		1.533		1.680		1.877		40.2	%		2.639		3.557		34.8	%
Equity indexed annuities		0.218		0.197		0.178		0.173		0.228		4.6	%		0.412		0.401		-2.7	%
Total Individual Markets - Annuities	$	2.191	$	2.221	$	2.278	$	2.413	$	2.750		25.5	%	$	4.229	$	5.163		22.1	%
Employer Markets
Retirement Products
Fixed	$	0.286	$	0.259	$	0.230	$	0.257	$	0.226		-21.0	%	$	0.583	$	0.483		-17.2	%
Variable		0.524		0.553		0.615		0.666		0.599		14.3	%		1.086		1.265		16.5	%
		0.810		0.812		0.845		0.923		0.825		1.9	%		1.669		1.748		4.7	%
Alliance Mutual Funds Deposits		0.222		0.200		0.223		0.318		0.204		-8.1	%		0.643		0.522		-18.8	%
Total Annuity and Alliance Mutual Funds	$	1.032	$	1.012	$	1.068	$	1.241	$	1.029		-0.3	%	$	2.313	$	2.270		-1.9	%
Benefit Partners
Annualized Sales (millions)
Life	$	15.6	$	19.3	$	29.4	$	23.6	$	15.3		-1.9	%	$	37.9	$	38.9		2.6	%
Disability		27.2		30.5		44.5		34.2		22.9		-15.8	%		66.0		57.1		-13.5	%
Dental		9.4		8.0		6.9		6.2		7.1		-24.5	%		18.9		13.3		-29.6	%
Executive Benefits
COLI/BOLI sales (millions)	$	5.4	$	16.4	$	12.7	$	17.5	$	17.2		218.5	%	$	23.2	$	34.7		49.6	%
Investment Management
Sales and Inflows
Retail
Annuities	$	0.701	$	0.642	$	0.713	$	0.885	$	0.869		24.0	%	$	1.414	$	1.754		24.0	%
Mutual funds		1.487		1.331		1.657		1.329		1.370		-7.9	%		3.007		2.699		-10.2	%
Managed accounts & other		2.146		1.599		1.260		1.806		1.043		-51.4	%		3.479		2.849		-18.1	%
		4.334		3.572		3.629		4.019		3.282		-24.3	%		7.900		7.302		-7.6	%
Institutional		6.110		3.166		4.833		5.044		2.764		-54.8	%		8.303		7.808		-6.0	%
Total Sales and Inflows	$	10.444	$	6.738	$	8.462	$	9.063	$	6.046		-42.1	%	$	16.203	$	15.110		-6.7	%
Total Annuity & Alliance
Mutual Fund Deposits
Fixed Annuities
Individual	$	0.852	$	0.797	$	0.745	$	0.733	$	0.872		2.3	%	$	1.590	$	1.605		0.9	%
Employer Markets		0.286		0.259		0.230		0.257		0.226		-21.0	%		0.583		0.483		-17.2	%
		1.138		1.056		0.975		0.990		1.098		-3.5	%		2.173		2.088		-3.9	%
Variable Annuities
Individual		1.339		1.424		1.533		1.680		1.877		40.2	%		2.639		3.557		34.8	%
Employer Markets		0.524		0.553		0.615		0.666		0.599		14.3	%		1.086		1.265		16.5	%
		1.863		1.977		2.148		2.346		2.477		33.0	%		3.725		4.823		29.5	%
Total Annuities		3.001		3.033		3.123		3.336		3.575		19.1	%		5.898		6.911		17.2	%
Alliance Mutual Funds		0.222		0.200		0.223		0.318		0.204		-8.1	%		0.643		0.522		-18.8	%
Total Annuity and Alliance Mutual Funds	$	3.223	$	3.233	$	3.346	$	3.654	$	3.779		17.3	%	$	6.542	$	7.432		13.6	%

⁽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. 

6/30/2006																									PAGE 5
Consolidated Expense Detail
Unaudited (In Millions)
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Commissions	$	167.3		$	182.2		$	183.3		$	186.9		$	344.2			105.7	%	$	316.7		$	531.1			67.7	%
General and administrative expenses:
General and administrative expenses		357.1			383.3			369.9			331.9			420.3			17.7	%		686.5			752.2			9.6	%
Merger-related expenses		-			-			-			-			7.4			NM			-			7.4			NM
Total general and administrative expenses		357.1			383.3			369.9			331.9			427.7			19.8	%		686.5			759.6			10.6	%
Restructuring charges		23.2			2.7			1.5			0.3			9.6			-58.6	%		25.1			9.9			-60.6	%
Taxes, licenses and fees		24.4			21.4			17.3			33.3			47.3			93.9	%		56.8			80.6			41.9	%
Interest		21.8			21.4			21.8			21.5			65.0			198.2	%		44.0			86.5			96.6	%
Total commissions and expenses incurred		593.8			611.0			593.8			573.9			893.9			50.5	%		1,129.1			1,467.8			30.0	%
Less: commissions and expenses capitalized		(224.0	)		(239.3	)		(263.0	)		(244.5	)		(391.6	)		-74.8	%		(435.4	)		(636.1	)		-46.1	%
Amortization:
DAC/VOBA Amortization		142.3			99.1			144.8			165.0			222.2			56.1	%		296.8			387.2			30.5	%
Amortization of intangibles		1.9			2.0			2.0			2.0			5.6			194.7	%		3.8			7.6			100.0	%
Total amortization		144.2			101.1			146.8			167.0			227.7			57.9	%		300.6			394.7			31.3	%
Broker/Dealer Commissions		32.5			29.9			31.2			28.8			51.9			59.7	%		62.2			80.7			29.7	%
Total	$	546.5		$	502.8		$	508.8		$	525.1		$	781.9			43.1	%	$	1,056.5		$	1,307.0			23.7	%
General & administrative expenses - basis
points on assets - Annualized		121			127			120			105			102			(19	)		117			104			(13	)
Merger-related expenses: (1)
Severance and employee-related charges	$	-		$	-		$	-		$	-		$	12.8			NM		$	-		$	12.8			NM
Systems integration and related expenses		-			-			-			-			0.8			NM			-			0.8			NM
Other expenses		-			-			-			-			3.1			NM			-			3.1			NM
Total Merger-related expenses	$	-		$	-		$	-		$	-		$	16.7			NM		$	-		$	16.7			NM

⁽¹⁾ Represents merger-related expenses included in general and administrative expenses and restructuring charges.

6/30/2006																									PAGE 6
Operating Results Summary
Unaudited [Millions of Dollars, except Common Share Data]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Individual Life Insurance	$	475.4		$	458.5		$	501.1		$	500.6		$	901.4			89.6	%	$	951.0		$	1,402.0			47.4	%
Individual Annuities		348.2			362.4			372.1			374.8			552.6			58.7	%		688.0			927.4			34.8	%
Individual Markets		823.6			820.9			873.2			875.4			1,454.0			76.5	%		1,639.0			2,329.4			42.1	%
Retirement Products		234.3			238.7			241.2			249.2			248.9			6.2	%		467.6			498.1			6.5	%
Benefit Partners		-			-			-			-			354.9			NM			-			354.9			NM
Executive Benefits & Other		53.2			59.4			61.6			57.2			101.2			90.2	%		106.3			158.4			49.0	%
Employer Markets		287.5			298.1			302.8			306.4			704.9			145.2	%		573.9			1,011.3			76.2	%
Investment Management		114.4			123.2			127.9			139.5			134.7			17.7	%		224.2			274.3			22.3	%
Lincoln UK		78.4			102.8			62.5			69.5			81.4			3.8	%		153.0			150.9			-1.4	%
Lincoln Financial Media		-			-			-			-			57.7			NM			-			57.7			NM
Other Operations		79.2			45.9			28.9			31.7			67.6			-14.6	%		100.4			99.3			-1.1	%
Total Operating Revenue		1,383.2			1,391.0			1,395.4			1,422.5			2,500.3			80.8	%		2,690.7			3,922.8			45.8	%
Realized gains (losses) on investments and derivatives		(4.0	)		(1.6	)		(9.3	)		(6.9	)		(6.7	)		-67.5	%		(11.2	)		(13.6	)		-21.4	%
Net gain (loss) on reinsurance
derivative/trading account securities		(5.1	)		5.3			-			5.9			1.8			NM			(0.7	)		7.7			NM
Gain on sale of subsidiaries/ businesses		-			-			-			-			-			NM			14.2			-			NM
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			0.3						0.6			0.6
Total Revenue	$	1,374.4		$	1,395.0		$	1,386.4		$	1,421.8		$	2,495.6			81.6	%	$	2,693.6		$	3,917.4			45.4	%
Income from Operations (1)
Individual Life Insurance	$	62.6		$	64.9		$	73.8		$	69.0		$	147.1			135.0	%	$	120.8		$	216.1			78.9	%
Individual Annuities		52.5			79.0			70.9			66.4			89.0			69.5	%		102.1			155.5			52.3	%
Individual Markets		115.1			144.0			144.7			135.4			236.1			105.1	%		222.8			371.6			66.8	%
Retirement Products		45.3			53.4			45.2			52.4			54.3			19.9	%		88.5			106.8			20.7	%
Benefit Partners		-			-			-			-			37.0			NM			-			37.0			NM
Executive Benefits & Other		4.3			2.4			9.5			7.5			16.2			276.7	%		7.7			23.8			209.1	%
Employer Markets		49.6			55.8			54.7			60.0			107.6			116.9	%		96.2			167.6			74.2	%
Investment Management		(1.4	)		4.9			9.0			15.3			12.0			NM			3.1			27.3			NM
Lincoln UK		10.3			9.6			13.5			10.7			9.9			-3.9	%		20.2			20.6			2.0	%
Lincoln Financial Media		-			-			-			-			11.9			NM			-			11.9			NM
Other Operations		30.1			12.1			9.5			0.1			(26.1	)		NM			32.5			(26.0	)		NM
Income from Operations (1)		203.6			226.3			231.4			221.6			351.4			72.6	%		374.9			573.0			52.8	%
Realized gains (losses) on investments and derivatives		(2.7	)		(1.1	)		(6.1	)		(4.4	)		(3.8	)		-40.7	%		(7.4	)		(8.2	)		-10.8	%
Net gain (loss) on reinsurance
derivative/trading account securities		(3.3	)		3.5			-			3.8			1.2			NM			(0.5	)		5.0			NM
Gain on sale of subsidiaries/ businesses		-			-			-			-			-			NM			9.3			-			-100.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2			0.2			0.2			0.2						0.4			0.4
Loss on early retirement of debt		-			-			-			-			-			NM			-			-			NM
Net Income	$	197.9		$	228.8		$	225.4		$	221.2		$	349.0			76.4	%	$	376.8		$	570.2			51.3	%
OTHER DATA
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun						Jun			Jun
	2005			2005			2005			2006			2006						2005			2006
Shareholders' Equity
Beg of period (including AOCI)	$	6,042.9		$	6,363.5		$	6,284.4		$	6,384.4		$	6,338.2					$	6,175.6		$	6,338.2
End of period (including AOCI)		6,363.5			6,284.4			6,384.4			6,338.2			11,404.8						6,363.5			11,404.8
End of period (excluding AOCI)		5,448.3			5,663.5			5,856.6			6,053.2			11,439.8						5,448.3			11,439.8
Average equity (excluding AOCI) (2)		5,407.1			5,555.9			5,760.0			5,954.9			11,311.3						5,356.2			8,633.1
Common Shares Outstanding
Average for the period - diluted		175.4			175.8			176.6			177.9			282.6						175.4			230.5
End of period - diluted		174.8			176.3			176.9			178.5			285.0						174.8			285.0
Per Share Data (Diluted)
Net Income	$	1.13		$	1.30		$	1.28		$	1.24		$	1.23					$	2.14		$	2.47
Income from Operations (1)		1.16			1.29			1.31			1.25			1.24						2.13			2.48
Shareholders' Equity Per Share
Shareholders' Equity (including AOCI)	$	36.86		$	36.23		$	36.69		$	35.99		$	40.48					$	36.86		$	40.48
Shareholders' Equity (excluding AOCI)		31.56			32.65			33.66			34.37			40.60						31.56			40.60
Dividends declared (Common Stock)		0.365			0.365			0.380			0.380			0.380						0.730			0.760
Return on Equity
Net Income/Average Equity		14.6	%		16.5	%		15.7	%		14.9	%		12.3	%					14.1	%		13.2	%
Inc from Operations/Average Equity		15.1	%		16.3	%		16.1	%		14.9	%		12.4	%					14.0	%		13.3	%
Market Value of Common Stock
Highest price	$	47.77		$	52.42		$	54.41		$	57.97		$	60.52					$	49.42		$	60.52
Lowest price		41.59			46.59			46.94			52.00			54.30						41.59			52.00
Closing price	$	46.92		$	52.02		$	53.03		$	54.59		$	56.44					$	46.92		$	56.44

⁽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; $0.2 million, or  -0- cents per share, for the first quarter of 2006, and $6.2 million, or 2 cents per share, for the second quarter of 2006.

⁽²⁾ Average equity was adjusted to reflect the merger with Jefferson-Pilot effective April 3, 2006.

6/30/2006																									PAGE 7
Consolidated Statements of Income
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Revenue
Premiums	$	72.6		$	83.1		$	82.4		$	78.4		$	454.3			NM		$	143.0		$	532.7			272.5	%
Surrender charges		16.5			18.6			18.0			18.7			27.3			65.5	%		36.7			46.0			25.3	%
Mortality assessments		142.1			138.8			145.1			146.2			294.7			107.4	%		284.4			440.9			55.0	%
Expense assessments		267.4			290.8			294.1			309.5			367.6			37.5	%		525.1			677.1			28.9	%
Investment advisory fees		62.0			67.9			70.9			77.8			81.2			31.0	%		117.0			159.0			35.9	%
Communications revenue		-			-			-			-			57.5			NM			-			57.5			NM
Net investment income		703.7			670.9			668.2			678.4			1,068.2			51.8	%		1,363.5			1,746.6			28.1	%
Other revenue and fees		100.0			101.8			97.6			94.8			130.7			30.7	%		183.1			225.5			23.2	%
Amortization of deferred gain		18.9			18.9			18.9			18.8			18.8			-0.5	%		37.9			37.5			-1.1	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			0.3						0.6			0.6
Realized gains (losses)		(9.1	)		3.7			(9.3	)		(1.0	)		(5.0	)		45.1	%		2.3			(6.0	)		NM
Total Revenue		1,374.4			1,395.0			1,386.3			1,421.8			2,495.6			81.6	%		2,693.4			3,917.4			45.4	%
Benefits and Expenses
Insurance benefits		209.7			206.7			198.0			200.4			589.3			181.0	%		400.8			789.7			97.0	%
Interest credited to contractholder funds		380.1			382.6			383.4			381.3			589.3			55.0	%		760.2			970.6			27.7	%
Communications expenses		-			-			-			-			29.8			NM			-			29.8			NM
Operating and acquisition expenses		500.4			460.0			469.7			470.3			669.5			33.8	%		955.8			1,139.8			19.3	%
Taxes, licenses and fees		24.4			21.4			17.3			33.3			47.3			93.9	%		56.8			80.6			41.9	%
Interest and debt expense		21.8			21.4			21.8			21.5			65.0			198.2	%		44.0			86.5			96.6	%
Total Benefits and Expenses		1,136.4			1,092.1			1,090.2			1,106.8			1,990.3			75.1	%		2,217.6			3,097.1			39.7	%
Income Before Federal Income Tax		237.9			302.8			296.1			315.0			505.3			112.4	%		475.7			820.3			72.4	%
Federal income taxes		40.1			74.0			70.6			93.9			156.3			289.8	%		99.0			250.2			152.7	%
Net Income	$	197.9		$	228.8		$	225.4		$	221.2		$	349.0			76.4	%	$	376.8		$	570.1			51.3	%
Roll Forward of Deferred Acquisition Costs		Three Months Ended																	Six Months Ended
& Value of Business Acquired		Jun			Sep			Dec			Mar			Jun						Jun			Jun
		2005			2005			2005			2006			2006						2005			2006
Balance at beginning of period	$	4,841.0		$	4,657.4		$	4,989.1		$	5,163.3		$	5,433.8					$	4,590.3		$	5,163.3
Deferral		224.0			239.3			263.0			244.5			391.6						435.4			636.1
Amortization		(142.3	)		(99.1	)		(144.8	)		(165.0	)		(222.2	)					(296.8	)		(387.2	)
Included in Total Benefits and Expenses		81.7			140.1			118.2			79.6			169.4						138.6			249.0
Adjustment related to realized (gains) losses
on available-for-sale securities		(14.3	)		(13.8	)		(8.7	)		(10.9	)		(18.9	)					(26.0	)		(29.8	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(204.8	)		217.4			84.7			194.2			221.5						10.9			415.7
Foreign currency translation adjustment		(46.2	)		(12.1	)		(20.0	)		7.7			48.3						(56.4	)		56.1
Business acquired		-			-			-			-			2,474.2						-			2,474.2
Balance at end of period	$	4,657.4		$	4,989.1		$	5,163.3		$	5,433.8		$	8,328.4					$	4,657.4		$	8,328.4
Roll Forward of Deferred Front-End Load
Balance at beginning of period	$	811.4		$	792.5		$	786.9		$	795.7		$	805.8					$	814.2		$	795.7
Deferral		31.0			30.2			33.2			31.1			32.7						61.5			63.8
Amortization		(26.7	)		(29.8	)		(15.0	)		(24.7	)		(28.7	)					(54.7	)		(53.4	)
Included in Expense Assessments		4.4			0.4			18.2			6.4			4.0						6.8			10.4
Foreign currency translation adjustment		(23.3	)		(5.9	)		(9.5	)		3.8			23.6						(28.5	)		27.4
Balance at end of period	$	792.5		$	786.9		$	795.7		$	805.8		$	833.3					$	792.5		$	833.5
Roll Forward of Deferred Sales Inducements
Balance at beginning of period	$	94.9		$	106.6		$	118.1		$	129.4		$	139.9					$	85.5		$	129.4
Deferral		15.5			15.1			15.6			15.7			19.9						28.8			35.6
Amortization		(3.8	)		(3.6	)		(4.4	)		(5.2	)		(5.2	)					(7.7	)		(10.4	)
Included in Income from Operations		11.7			11.5			11.3			10.5			14.7						21.1			25.2
Balance at end of period	$	106.6		$	118.1		$	129.4		$	139.9		$	154.6					$	106.6		$	154.6

6/30/2006																				PAGE 8
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
For the Quarter Ended June 30, 2006
	Individual Markets				Employer Markets
									Executive		Invest- ment				Lincoln					Consolid- ating
					Retirement		Benefit		Benefits		Manage-		Lincoln		Financial		Other			Adjust-			Consolid-
	Life		Annuities		Products		Partners		& Other		ment		UK		Media		Operations			ments			ated
Operating Revenue
Premiums	$	89.9	$	15.3	$	-	$	328.9	$	0.0	$	-	$	19.9	$	-	$	0.3		$	-		$	454.3
Surrender charges		15.5		9.6		2.1		-		0.0		-		-		-		-			-			27.3
Mortality assessments		277.3		-		-		-		8.5		-		8.9		-		(0.0	)		-			294.7
Expense assessments		90.6		182.7		54.7		-		4.9		-		34.7		-		0.0			-			367.6
Investment advisory fees		-		-		-		-		-		104.6		-		-		-			(23.5	)		81.2
Communications revenue		-		-		-		-		-		-		-		57.5		-			-			57.5
Net investment income		415.9		263.2		187.5		25.1		86.5		-		17.8		0.2		72.2			(0.2	)		1,068.2
Amortization of deferred gain		-		-		-		-		-		-		-		-		18.8			-			18.8
Other revenue and fees		12.2		81.8		4.6		0.8		1.3		30.0		0.0		-		5.2			(5.3	)		130.7
Total Operating Revenue		901.4		552.6		248.9		354.9		101.2		134.7		81.4		57.7		96.5			(28.9	)		2,500.3
Operating Expenses
Insurance benefits		256.0		45.3		0.0		226.0		30.4		-		27.5		-		4.1			-			589.3
Interest credited to contractholder funds		241.5		168.8		102.4		-		40.2		-		-		-		36.5			-			589.3
Communications expenses		-		-		-		-		-		-		-		29.8		-			-			29.8
Operating and acquisition expenses		155.4		212.0		66.7		64.0		5.9		114.0		38.9		7.7		33.9			(28.9	)		669.5
Taxes, licenses and fees		27.5		4.6		2.8		8.0		1.3		2.4		-		-		0.6			0.0			47.3
Interest		0.0		0.2		0.0		-		-		-		-		0.5		64.3			-			65.0
Total Operating Expenses		680.4		431.0		171.9		297.9		77.7		116.4		66.3		38.1		139.5			(28.9	)		1,990.3
Income (Loss) from Operations before Federal income taxes		221.0		121.5		77.0		56.9		23.5		18.3		15.1		19.6		(43.1	)		-			510.0
Federal income taxes		73.9		32.5		22.7		19.9		7.3		6.3		5.2		7.7		(17.0	)		-			158.5
Income from Operations	$	147.1	$	89.0	$	54.3	$	37.0	$	16.2	$	12.0	$	9.9	$	11.9	$	(26.1	)	$	-		$	351.4

6/30/2006																									PAGE 9
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
For the Quarter Ended June 30, 2005
	Individual Markets				Employer Markets
									Executive			Invest- ment					Lincoln					Consolid- ating
					Retirement		Benefit		Benefits			Manage-			Lincoln		Financial		Other			Adjust-			Consolid-
	Life		Annuities		Products		Partners		& Other			ment			UK		Media		Operations			ments			ated
Operating Revenue
Premiums	$	47.8	$	7.3	$	-	$	-	$	0.5		$	-		$	16.4	$	-	$	0.6		$	-		$	72.6
Surrender charges		9.4		5.2		2.2		-		(0.2	)		-			-		-		-			-			16.5
Mortality assessments		130.6		-		-		-		2.1			-			9.4		-		-			-			142.1
Expense assessments		49.1		131.7		49.1		-		4.4			-			33.0		-		-			-			267.4
Investment advisory fees		-		-		-		-		-			86.6			-		-		-			(24.6	)		62.0
Communications revenue		-		-		-		-		-			-			-		-		-			-			-
Net investment income		227.8		154.8		176.7		-		45.2			-			19.6		-		80.6			(1.0	)		703.7
Amortization of deferred gain		-		-		-		-		-			-			-		-		18.9			-			18.9
Other revenue and fees		10.7		49.3		6.3		-		1.2			27.8			-		-		1.2			3.6			100.0
Total Operating Revenue		475.4		348.2		234.3		-		53.2			114.4			78.4		-		101.3			(22.0	)		1,383.2
Operating Expenses
Insurance benefits		119.1		31.4		-		-		30.7			-			27.9		-		0.5			-			209.7
Interest credited to contractholder funds		138.0		98.9		100.4		-		9.6			-			-		-		33.2			-			380.1
Communications expenses		-		-		-		-		-			-			-		-		-			-			-
Operating and acquisition expenses		112.1		148.5		68.1		-		6.6			114.4			34.7		-		37.1			(21.3	)		500.4
Taxes, licenses and fees		13.3		4.2		3.1		-		0.9			2.2			-		-		0.8			-			24.4
Interest		-		-		-		-		-			-			-		-		22.6			(0.8	)		21.8
Total Operating Expenses		382.5		283.1		171.6		-		47.8			116.6			62.6		-		94.2			(22.0	)		1,136.4
Income (Loss) from Operations before Federal income taxes		92.9		65.1		62.7		-		5.3			(2.2	)		15.8		-		7.0			0.0			246.8
Federal income taxes		30.3		12.7		17.4		-		1.0			(0.8	)		5.6		-		(22.9	)		-			43.3
Income from Operations	$	62.6	$	52.5	$	45.3	$	-	$	4.3		$	(1.4	)	$	10.2	$	-	$	30.0		$	-		$	203.6

6/30/2006																							PAGE 10
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
Six Months Ended June 30, 2006
	Individual Markets				Employer Markets
											Invest-									Consolid-
									Executive		ment				Lincoln					ating
					Retirement		Benefit		Benefits		Manage-		Lincoln		Financial		Other			Adjust-			Consolid-
	Life		Annuities		Products		Partners		& Other		ment		UK		Media		Operations			ments			ated
Operating Revenue
Premiums	$	141.0	$	24.6	$	-	$	328.9	$	1.1	$	-	$	36.5	$	-	$	0.6		$	-		$	532.7
Surrender charges		25.8		15.8		4.4		-		0.0		-		-		-		-			-			46.0
Mortality assessments		413.0		-		-		-		11.3		-		16.7		-		(0.0	)		-			440.9
Expense assessments		144.9		350.8		110.3		-		8.2		-		62.7		-		0.3			-			677.1
Investment advisory fees		-		-		-		-		-		207.5		-		-		-			(48.5	)		159.0
Communications revenue		-		-		-		-		-		-		-		57.5		-			-			57.5
Net investment income		655.4		411.1		373.2		25.1		135.2		-		34.9		0.2		112.3			(0.9	)		1,746.6
Amortization of deferred gain		-		-		-		-		-		-		-		-		37.5			-			37.5
Other revenue and fees		21.9		125.1		10.2		0.8		2.7		66.7		0.1		-		6.4			(8.4	)		225.5
Total Operating Revenue		1,402.0		927.4		498.1		354.9		158.4		274.3		150.9		57.7		157.1			(57.8	)		3,922.8
Operating Expenses
Insurance benefits		376.3		65.7		0.0		226.0		63.2		-		52.9		-		5.8			-			789.7
Interest credited to        contractholder funds		383.7		263.9		203.1		-		49.4		-		-		-		70.4			-			970.6
Communications expenses		-		-		-		-		-		-		-		29.8		-			-			29.8
Operating and acquisition          expenses		271.9		379.2		137.0		64.0		9.4		225.3		66.5		7.7		36.3			(57.3	)		1,139.8
Taxes, licenses and fees		43.9		10.1		5.8		8.0		2.4		7.2		-		-		3.4			0.0			80.6
Interest		0.0		0.2		0.0		-		-		-		-		0.5		86.3			(0.5	)		86.5
Total Operating Expenses		1,075.7		719.1		345.9		297.9		124.3		232.5		119.3		38.1		202.2			(57.8	)		3,097.1
Income (Loss) from Operations       before Federal income taxes		326.3		208.3		152.2		56.9		34.0		41.8		31.6		19.6		(45.1	)		-			825.7
Federal income taxes		110.2		52.8		45.4		19.9		10.3		14.5		11.0		7.7		(19.1	)		-			252.7
Income from Operations	$	216.1	$	155.5	$	106.8	$	37.0	$	23.8	$	27.3	$	20.6	$	11.9	$	(26.0	)	$	-		$	573.0

6/30/2006																								PAGE 11
Consolidating Statements of Income from Operations
Unaudited [Millions of Dollars]
Six Months Ended June 30, 2005
	Individual Markets				Employer Markets
												Invest-									Consolid-
									Executive			ment				Lincoln					ating
					Retirement		Benefit		Benefits			Manage-		Lincoln		Financial		Other			Adjust-			Consolid-
	Life		Annuities		Products		Partners		& Other			ment		UK		Media		Operations			ments			ated
Operating Revenue
Premiums	$	93.3	$	17.9	$	-	$	-	$	0.5		$	-	$	31.0	$	-	$	0.3		$	-		$	143.0
Surrender charges		21.4		10.5		5.1		-		(0.2	)		-		-		-		-			-			36.7
Mortality assessments		261.7		-		-		-		4.3			-		18.4		-		-			-			284.4
Expense assessments		99.2		256.2		97.1		-		8.8			-		63.6		-		-			-			525.1
Investment advisory fees		-		-		-		-		-			166.4		-		-		-			(49.4	)		117.0
Communications revenue		-		-		-		-		-			-		-		-		-			-			-
Net investment income		451.7		311.7		352.7		-		90.5			-		39.9		-		118.8			(2.0	)		1,363.5
Amortization of deferred gain		-		-		-		-		-			-		-		-		37.9			-			37.9
Other revenue and fees		23.6		91.7		12.7		-		2.5			57.8		0.1		-		2.4			(7.5	)		183.1
Total Operating Revenue		951.0		688.0		467.6		-		106.3			224.2		153.0		-		159.4			(58.9	)		2,690.7
Operating Expenses
Insurance benefits		232.9		52.6		-		-		62.5			-		53.0		-		(0.2	)		-			400.8
Interest credited to         contractholder funds		276.9		199.0		200.1		-		18.9			-		-		-		65.3			-			760.2
Communications expenses		-		-		-		-		-			-		-		-		-			-			-
Operating and acquisition         expenses		232.7		299.7		137.8		-		13.5			214.3		68.7		-		46.6			(57.4	)		955.8
Taxes, licenses and fees		29.3		10.2		7.3		-		1.9			5.3		-		-		2.6			-			56.8
Interest		-		-		-		-		-			-		-		-		45.5			(1.5	)		44.0
Total Operating Expenses		771.8		561.5		345.1		-		96.9			219.6		121.8		-		159.8			(58.9	)		2,217.6
Income (Loss) from Operations before Federal income taxes		179.2		126.5		122.5		-		9.4			4.6		31.2		-		(0.4	)		-			473.0
Federal income taxes		58.4		24.4		34.0		-		1.8			1.5		11.0		-		(32.9	)		-			98.1
Income from Operations	$	120.8	$	102.1	$	88.5	$	-	$	7.7		$	3.1	$	20.2	$	-	$	32.5		$	-		$	374.9

6/30/2006													PAGE 12
Consolidated Balance Sheet
Unaudited [Millions of Dollars, except Common Share Data]
	Jun			Sep			Dec			Mar			Jun
	2005			2005			2005			2006			2006
ASSETS
Investments
Corporate bonds	$	26,757.7		$	26,453.6		$	25,860.7		$	25,418.0		$	43,881.6
U.S. government bonds		174.4			158.3			161.8			173.4			287.6
Foreign government bonds		1,248.0			1,195.0			1,203.3			1,169.7			1,188.0
Mortgage backed securities		6,503.0			6,237.1			5,951.2			5,868.8			8,370.3
State and municipal bonds		160.8			157.9			128.8			126.0			166.5
Preferred stocks - redeemable		131.2			123.0			137.4			136.9			130.1
Common stocks		64.2			62.2			55.9			61.0			458.8
Preferred stocks-equity		90.3			89.4			88.8			115.0			119.7
Total AFS Securities		35,129.6			34,476.5			33,587.9			33,068.8			54,602.6
Trading securities		3,345.1			3,287.0			3,246.0			3,190.1			3,109.0
Mortgage loans		3,750.6			3,696.2			3,662.6			3,586.2			7,741.2
Real estate		209.8			196.6			182.7			180.4			428.6
Policy loans		1,866.9			1,856.4			1,862.2			1,860.4			2,716.4
Other long-term investments		561.3			572.3			626.9			687.5			1,116.6
Total Investments		44,863.3			44,085.0			43,168.4			42,573.2			69,714.4
Cash and invested cash		1,658.9			1,601.9			2,311.7			1,974.0			1,499.8
Premiums and fees receivable		222.8			332.6			343.2			363.2			343.9
Accrued investment income		537.5			565.2			526.4			532.1			879.0
Amount recoverable from reinsurers		7,241.6			7,211.0			6,926.3			6,899.4			7,967.2
Deferred acquisition costs and VOBA		4,657.4			4,989.0			5,163.2			5,433.7			8,328.4
Goodwill		1,194.8			1,194.6			1,194.2			1,194.4			4,502.6
Other		1,398.3			1,379.5			1,479.3			1,517.7			3,049.6
Assets held in separate accounts		57,240.0			60,811.5			63,746.8			67,984.2			71,095.2
Total Assets	$	119,014.5		$	122,170.2		$	124,859.6		$	128,472.0		$	167,380.0
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Insurance and Investment Contract Liabilities:
Reserves	$	11,035.9		$	10,981.4		$	10,659.7		$	10,657.2		$	13,512.1
Unpaid claims		1,116.2			1,038.9			1,042.9			981.3			1,211.7
Premium deposit funds		22,075.8			21,932.7			21,713.3			21,448.6			21,198.4
Policyholders' funds		13,444.7			13,637.9			13,878.8			13,991.5			37,430.3
Total Insurance and Investment Contract Liabilities		47,672.6			47,590.9			47,294.8			47,078.6			73,352.5
Short-term debt		222.5			165.1			119.9			10.6			561.0
Long-term debt - senior notes		1,000.6			999.5			999.0			998.5			2,329.1
Long-term debt - subordinated
Capital securities		-			-			-			-			1,071.8
Junior subordinated debentures issued to
affiliated trusts		338.7			335.9			334.0			332.3			330.5
Embedded derivative - modco		420.3			314.1			292.2			192.0			126.7
Deferred gain on indemnity reinsurance		874.5			855.2			836.0			816.9			797.8
Federal income taxes		160.8			31.5			19.8			-			563.8
Other liabilities		4,721.0			4,782.1			4,832.8			4,720.7			5,746.7
Liabilities related to separate accounts		57,240.0			60,811.5			63,746.8			67,984.2			71,095.2
Total Liabilities		112,651.0			115,885.8			118,475.2			122,133.8			155,975.2
Preferred Stock		0.5			0.5			0.5			0.5			0.5
Capital stock		1,690.2			1,740.2			1,774.6			1,817.5			7,425.7
Retained earnings		3,757.6			3,922.8			4,081.5			4,235.2			4,013.7
Unrealized gains on investments		851.2			569.0			496.6			220.2			(151.5	)
Gains - derivatives		11.9			8.9			7.3			35.2			51.5
Foreign currency		109.4			99.6			83.4			89.7			128.5
Minimum pension liability		(57.3	)		(56.6	)		(59.5	)		(60.1	)		(63.6	)
Total Shareholders' Equity		6,363.5			6,284.4			6,384.4			6,338.2			11,404.8
Total Liabilities
and Shareholders' Equity	$	119,014.5		$	122,170.2		$	124,859.6		$	128,472.0		$	167,380.0
Shareholders' Equity Per Share	$	36.87		$	36.23		$	36.69		$	35.99		$	40.48
Book Value, Excluding AOCI	$	31.56		$	32.65		$	33.66		$	34.37		$	40.60
Common shares outstanding (in millions)		172.6			173.5			174.0			176.1			281.8

6/30/2006																				PAGE 13
Balance Sheet Data - Segment Highlights
Unaudited [Millions of Dollars]
	Individual				Employer
	Markets				Markets
As of June 30, 2006	Annuities		Life		Retirement Products		Benefit Partners		Executive Benefits & Other		Investment Management		Lincoln UK		Lincoln Financial Media		Other Operations (1)			Consolidated
Assets
Allocated Investments	$	18,450.5	$	25,477.9	$	11,542.3	$	1,285.5	$	5,469.1	$	-	$	1,020.7	$	-	$	6,468.4		$	69,714.4
DAC and VOBA		1,994.4		4,592.2		564.0		121.4		274.1		-		781.7		-		0.7			8,328.4
Goodwill		1,031.5		2,188.4		20.2		278.9		-		260.8		15.3		707.6		-			4,502.6
Other intangibles		154.6		99.0		-		-		-		10.3		-		665.6		-			929.5
Amounts recoverable from reinsurers		956.1		1,739.6		-		29.5		4.0		-		67.6		-		5,170.3			7,967.2
Assets held in separate accounts		41,284.5		4,532.0		16,141.5		-		791.3		-		7,857.0		-		488.9			71,095.2
Liabilities and Capital
Insurance and Investment Contract         Liabilities:
Insurance policy & claim reserves		438.0		5,681.5		0.0		1,156.3		1,783.6		-		1,064.3		-		4,592.4			14,716.1
Contractholder funds		19,253.7		22,558.1		11,017.4		15.6		3,690.4		-		413.4		-		1,687.8			58,636.4
Total Insurance and Inv                        Contract Liabilities		19,691.7		28,239.5		11,017.4		1,171.9		5,474.0		-		1,477.6		-		6,280.3			73,352.5
Allocated capital (2)		3,285.9		7,233.1		936.4		889.7		513.2		338.1		412.2		1,155.2		(3,323.9	)	$	11,439.9

As of December 31, 2005
Assets
Allocated Investments	$	8,104.7	$	14,990.3	$	13,666.6	$	-	$	2,879.4	$	-	$	996.6	$	-	$	2,530.8		$	43,168.4
DAC and VOBA		1,559.3		2,543.9		151.6		-		113.6		-		743.4		-		51.4			5,163.2
Goodwill		43.9		855.1		20.2		-		-		260.8		14.3		-		-			1,194.2
Other intangibles		129.4		-		-		-		-		13.9		-		-		-			143.3
Amounts recoverable from reinsurers		1,085.9		1,270.2		-		-		2.8		-		59.9		-		4,507.5			6,926.3
Assets held in separate accounts		37,903.9		2,482.7		15,243.9		-		796.7		-		7,319.6		-		-			63,746.8
Liabilities and Capital
Insurance and Investment Contract         Liabilities:
Insurance policy & claim reserves		445.7		3,562.9		-		-		1,915.9		-		1,013.7		-		4,764.5			11,702.7
Contractholder funds		8,613.7		12,866.3		11,033.4		-		751.4		-		395.0		-		1,932.3			35,592.1
Total Insurance and Inv                 Contract Liabilities		9,059.4		16,429.2		11,033.4		-		2,667.3		-		1,408.7		-		6,634.4			47,232.4
Allocated capital (2)		1,785.0		3,231.9		978.7		-		346.0		360.0		430.6		-		(1,275.6	)	$	5,856.6
(1) Includes consolidating adjustments.
(2) Allocated capital is based on internal economic capital models plus certain other items (principally intangibles including DAC and VOBA, goodwill and other items).

6/30/2006																									PAGE 14
Individual Markets - Individual Life Insurance
Income Statements & Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Premiums	$	47.8		$	47.4		$	57.7		$	51.1		$	89.9			88.1	%	$	93.3		$	141.0			51.1	%
Surrender charges		9.4			10.9			11.6			10.3			15.5			64.9	%		21.4			25.8			20.6	%
Mortality assessments		130.6			127.7			135.3			135.6			277.3			112.3	%		261.7			413.0			57.8	%
Expense assessments		49.1			31.7			58.8			54.3			90.6			84.5	%		99.2			144.9			46.1	%
Net investment income		227.8			229.5			227.5			239.5			415.9			82.6	%		451.7			655.4			45.1	%
Other revenue and fees		10.7			11.2			10.3			9.7			12.2			14.0	%		23.6			21.9			-7.2	%
Total Operating Revenue		475.4			458.5			501.1			500.6			901.4			89.6	%		951.0			1,402.0			47.4	%
Operating Expenses
Insurance benefits		119.1			109.9			118.6			120.2			256.0			114.9	%		232.9			376.3			61.6	%
Interest credited to contractholder funds		138.0			140.9			142.1			142.2			241.5			75.0	%		276.9			383.7			38.6	%
Operating and acquisition expenses		125.4			110.9			130.1			132.8			182.9			45.9	%		262.1			315.7			20.5	%
Total Operating Expenses		382.5			361.8			390.8			395.3			680.4			77.9	%		771.8			1,075.7			39.4	%
Income from operations before Federal    income taxes		92.9			96.7			110.4			105.3			221.0			137.9	%		179.2			326.3			82.1	%
Federal income taxes		30.3			31.8			36.5			36.3			73.9			143.9	%		58.4			110.2			88.7	%
Income from Operations	$	62.6		$	64.9		$	73.8		$	69.0		$	147.1			135.0	%	$	120.8		$	216.1			78.9	%
Effective tax rate		32.6	%		32.8	%		33.1	%		34.5	%		33.4	%					32.6	%		33.8	%
Average equity	$	3,227.9		$	3,212.8		$	3,278.0		$	3,266.0		$	7,051.8					$	3,167.6		$	5,158.9
Return on average equity		7.8	%		8.1	%		9.0	%		8.5	%		8.3	%					7.6	%		8.4	%
Operating and Acquisition Expenses
Commissions	$	36.5		$	43.4		$	50.3		$	44.2		$	125.4			243.4	%	$	72.8		$	169.6			133.0	%
General and administrative expenses		94.5			105.3			105.6			88.9			123.0			30.1	%		186.3			211.9			13.7	%
Taxes, licenses and fees		13.3			12.4			12.9			16.3			27.5			107.8	%		29.3			43.9			49.8	%
Total commissions and expenses incurred		144.3			161.1			168.7			149.4			275.9			91.3	%		288.4			425.4			47.5	%
Less: commissions and expenses capitalized		(85.7	)		(94.7	)		(113.8	)		(90.1	)		(199.8	)		NM			(165.3	)		(289.9	)		-75.4	%
Amortization of DAC and VOBA		66.9			44.6			75.2			73.6			106.7			59.6	%		138.9			180.3			29.8	%
Net Operating and Acquisition Expenses	$	125.4		$	110.9		$	130.1		$	132.8		$	182.9			45.9	%	$	262.1		$	315.7			20.5	%
General and administrative expenses -
basis points on account values - Annualized		282			309			304			251			194			(88	)		278			214			(64	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$	2,425.4		$	2,350.0		$	2,479.9		$	2,543.9		$	2,643.8					$	2,359.0		$	2,543.9
Deferral		85.7			94.7			113.8			90.1			199.8						165.3			289.9
Amortization		(66.9	)		(44.6	)		(75.2	)		(73.6	)		(106.7	)					(138.9	)		(180.3	)
Included in Total Operating Expenses		18.9			50.1			38.6			16.6			93.0						26.3			109.6
Adjustment related to realized (gains) losses
on available-for-sale securities		(5.9	)		(6.1	)		(1.2	)		(3.4	)		(7.9	)					(8.1	)		(11.3	)
Adjustment related to unrealized
(gains) losses on                   available-for-sale securities		(88.4	)		85.9			26.5			86.7			96.7						(27.3	)		183.4
Business acquired														1,766.6						-			1,766.6
Other		(0.1	)		0.0			0.1			0.0			-						0.1			0.0
Balance at end of period	$	2,350.0		$	2,479.9		$	2,543.9		$	2,643.8		$	4,592.2					$	2,350.0		$	4,592.2
Roll Forward of Deferred Front-End Loads
Balance at beginning of period	$	312.5		$	315.9		$	338.5		$	342.6		$	344.3					$	311.1		$	342.6
Deferral		20.0			19.0			21.8			19.7			21.4						40.2			41.0
Amortization		(16.7	)		3.6			(17.6	)		(18.0	)		(18.1	)					(35.5	)		(36.1	)
Included in Expense Assessments		3.4			22.6			4.2			1.7			3.2						4.8			4.9
Balance at end of period	$	315.9		$	338.5		$	342.6		$	344.3		$	347.5					$	315.9		$	347.5

6/30/2006																		PAGE 15
Individual Markets- Individual Life Insurance
Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended													Six Months Ended
	Jun		Sep		Dec		Mar		Jun		%			Jun		Jun		%
	2005		2005		2005		2006		2006		Change			2005		2006		Change
Sales by Product(Millions)(1)
Universal Life
Excluding MoneyGuard	$	47.3	$	46.3	$	59.6	$	41.3	$	97.5		106.1	%	$	85.8	$	138.7		61.7	%
MoneyGuard		8.0		9.1		9.4		7.7		7.5		-6.3	%		15.4		15.2		-1.3	%
Total		55.3		55.4		69.0		49.0		105.0		89.9	%		101.2		154.0		52.2	%
Variable universal life		10.2		9.1		13.4		10.0		15.7		53.9	%		19.7		25.7		30.5	%
Whole life		0.2		0.4		0.4		0.7		0.4		100.0	%		1.0		1.1		10.0	%
Term		8.6		8.1		7.9		8.2		11.3		31.4	%		17.7		19.5		10.2	%
Total	$	74.3	$	72.9	$	90.7	$	67.9	$	132.3		78.1	%	$	139.6	$	200.3		43.5	%
First-Year Paid Premiums (Millions)
Universal Life
Excluding MoneyGuard	$	103.6	$	102.3	$	144.0	$	108.2	$	261.2		152.1	%	$	190.0	$	369.4		94.4	%
MoneyGuard		53.4		60.8		62.5		51.5		50.0		-6.4	%		102.8		101.5		-1.3	%
Total		157.0		163.1		206.5		159.7		311.2		98.2	%		292.8		470.9		60.8	%
Variable universal life		23.8		23.4		33.4		27.1		40.5		70.2	%		49.7		67.6		36.0	%
Whole life		8.3		10.2		14.4		8.3		9.5		14.5	%		16.1		17.8		10.6	%
Term		9.1		8.6		8.4		8.6		11.5		26.4	%		18.9		20.1		6.3	%
Total	$	198.2	$	205.3	$	262.7	$	203.7	$	372.7		88.0	%	$	377.5	$	576.4		52.7	%
Life Insurance In-Force (Billions)
Universal life & other	$	126.069	$	126.976	$	128.791	$	129.584	$	260.945		107.0	%	$	126.069	$	260.945		107.0	%
Term insurance		180.659		184.334		187.850		191.825		229.082		26.8	%		180.659		229.082		26.8	%
Total Life Segment In-Force	$	306.727	$	311.310	$	316.641	$	321.409	$	490.027		59.8	%	$	306.727	$	490.027		59.8	%
(1) Sales for Individual Life Insurance consist of first year commissionable premium for Universal life ("UL"), including Moneyguard, including UL internal replacements, and first year paid premiums for Whole life and Term products.

6/30/2006																									PAGE 16
Individual Markets - Individual Life Insurance
Account Value Roll Forward
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Interest Sensitive Life-Balance     Beginning-of-Period	$	11.325		$	11.443		$	11.591		$	11.809		$	11.913			5.2	%	$	11.232		$	11.809			5.1	%
Business acquired		-			-			-			-			9.150			NM			-			9.150			NM
Deposits		0.390			0.415			0.499			0.401			0.799			104.9	%		0.771			1.201			55.8	%
Withdrawals & deaths		(0.166	)		(0.161	)		(0.160	)		(0.182	)		(0.317	)		-91.0	%		(0.354	)		(0.499	)		-41.0	%
Net flows		0.223			0.253			0.339			0.219			0.482			116.1	%		0.417			0.701			68.1	%
Policyholder assessments		(0.239	)		(0.242	)		(0.257	)		(0.250	)		(0.493	)		NM			(0.477	)		(0.743	)		-55.8	%
Interest credited		0.134			0.136			0.136			0.135			0.233			73.9	%		0.272			0.368			35.3	%
Interest Sensitive Life-Balance                  End-of-Period (1)	$	11.443		$	11.591		$	11.809		$	11.913		$	21.285			86.0	%	$	11.443		$	21.285			86.0	%
Variable Universal Life-Balance       Beginning of Period	$	2.003		$	2.053		$	2.154		$	2.242		$	2.355			17.6	%	$	2.028		$	2.242			10.6	%
Business acquired		-			-			-			-			1.918			NM			-			1.918			NM
Deposits		0.081			0.082			0.097			0.087			0.224			176.5	%		0.167			0.311			86.2	%
Withdrawals & deaths		(0.041	)		(0.041	)		(0.036	)		(0.049	)		(0.158	)		NM			(0.084	)		(0.207	)		NM
Net flows		0.040			0.041			0.061			0.038			0.066			65.0	%		0.083			0.103			24.1	%
Policyholder assessments		(0.042	)		(0.043	)		(0.044	)		(0.044	)		(0.077	)		-83.3	%		(0.084	)		(0.121	)		-44.0	%
Investment income and change in           market value		0.052			0.103			0.071			0.119			(0.068	)		NM			0.027			0.051			88.9	%
Variable Universal Life -                   Balance End-of-Period	$	2.053		$	2.154		$	2.242		$	2.355		$	4.194			104.3	%	$	2.053		$	4.194			104.3	%
Total Segment- Life Insurance Account Value Rollforward
Balance Beginning-of-Period	$	13.328		$	13.496		$	13.745		$	14.051		$	14.268			7.1	%	$	13.259		$	14.051			6.0	%
Business acquired		-			-			-			-			11.068			NM			-			11.068			NM
Deposits		0.470			0.497			0.596			0.488			1.023			117.7	%		0.938			1.511			61.1	%
Withdrawals & deaths		(0.207	)		(0.202	)		(0.196	)		(0.231	)		(0.476	)		NM			(0.438	)		(0.706	)		-61.2	%
Net flows		0.263			0.295			0.400			0.257			0.548			108.4	%		0.500			0.805			61.0	%
Policyholder assessments		(0.281	)		(0.285	)		(0.301	)		(0.294	)		(0.571	)		NM			(0.561	)		(0.864	)		-54.0	%
Investment income and change in           market value		0.187			0.239			0.206			0.254			0.165			-11.8	%		0.298			0.420			40.9	%
Total Segment -Balance End-of-Period	$	13.496		$	13.745		$	14.051		$	14.268		$	25.479			88.8	%	$	13.496		$	25.479			88.8	%
Life Product Spread Information (2)
																	Change									Change
Interest Sensitive Products																	(Basis Points)									(Basis Points)
Net investment income (3) (4)		6.38	%		6.35	%		6.26	%		6.48	%		6.22	%		(16	)		6.34	%		6.31	%		(3	)
Interest credited to policyholders		4.65	%		4.70	%		4.66	%		4.60	%		4.46	%		(19	)		4.69	%		4.51	%		(18	)
Spread (3)(4)		1.74	%		1.65	%		1.60	%		1.88	%		1.76	%		2			1.65	%		1.79	%		14
Traditional Products
Net investment income (3)		6.59	%		6.62	%		6.42	%		6.72	%		6.59	%		-			6.59	%		6.65	%		6

⁽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 traditional investment portfolios divided by average earning assets. As of June 30, 2006, interest sensitive products represented 80% of total interest sensitive and traditional 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 13 bps in the 2nd quarter of 2006, 7 bps in the 1st quarter of 2006, 8 bps in the 4th quarter of 2005, 4 bps in the 3rd quarter of 2005, and 12 bps in the 2nd quarter of 2005.  The impact was 12 basis points for the first six months of 2006 and 6 basis points for the first six months of 2005. There was an impact on traditional products of 14 bps in the 2nd quarter of 2006, 15 bps in the 1st quarter of 2006, 0 bps in the 4th quarter of 2005, 20 bps in the 3rd quarter of 2005 and 11 bps in the 2nd quarter of 2005. The impact was 15 basis points for the first six months of 2006 and 11 basis points for the first six months 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.

6/30/2006																									PAGE 17
Individual Markets - Individual Annuities
Income Statements & Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Premiums	$	7.3		$	10.7		$	8.5		$	9.3		$	15.3			109.6	%	$	17.9		$	24.6			37.3	%
Surrender charges		5.2			5.0			4.4			6.2			9.6			84.6	%		10.5			15.8			50.6	%
Expense assessments		131.7			147.7			155.5			168.0			182.7			38.7	%		256.2			350.8			36.9	%
Net investment income		154.8			151.7			150.4			148.0			263.2			70.0	%		311.7			411.1			31.9	%
Other revenue and fees(1)		49.3			47.3			53.3			43.4			81.8			65.9	%		91.7			125.1			36.4	%
Total Operating Revenue		348.2			362.4			372.1			374.8			552.6			58.7	%		688.0			927.4			34.8	%
Operating Expenses
Insurance benefits		31.4			20.5			21.2			20.4			45.3			44.3	%		52.6			65.7			24.9	%
Interest credited to contractholder funds		98.9			97.3			96.3			95.1			168.8			70.7	%		199.0			263.9			32.6	%
Operating and acquisition expenses		152.7			139.8			164.7			172.6			216.9			42.0	%		309.9			389.4			25.7	%
Total Operating Expenses		283.1			257.6			282.2			288.1			431.0			52.2	%		561.5			719.1			28.1	%
Income from operations before      Federal income taxes		65.1			104.8			89.9			86.7			121.5			86.6	%		126.5			208.3			64.7	%
Federal income taxes		12.7			25.8			19.0			20.3			32.5			155.9	%		24.4			52.8			116.8	%
Income from Operations	$	52.5		$	79.0		$	70.9		$	66.4		$	89.0			69.5	%	$	102.1		$	155.5			52.3	%
Effective tax rate		19.4	%		24.6	%		21.1	%		23.4	%		26.7	%					19.3	%		25.4	%
Average equity	$	1,705.9		$	1,713.7		$	1,773.7		$	1,744.1		$	3,269.2					$	1,684.5		$	2,506.6
Return on average equity		12.3	%		18.5	%		16.0	%		15.2	%		10.9	%					12.1	%		12.4	%
Basis points on average account values		49			69			60			52			58						48			56
Operating and Acquisition Expenses
Commissions	$	124.2		$	131.7		$	131.6		$	140.0		$	200.3			61.3	%	$	244.0		$	340.3			39.5	%
General and administrative expenses		68.7			68.4			70.9			66.2			69.3			0.9	%		132.2			135.5			2.5	%
Broker-dealer general and          administrative expenses		20.4			19.9			23.0			17.8			20.0			-2.0	%		38.0			37.8			-0.5	%
Taxes, licenses and fees		4.2			5.0			(1.4	)		5.4			4.6			9.5	%		10.2			10.1			-1.2	%
Total commissions and expenses incurred		217.5			225.0			224.1			229.5			294.2			35.3	%		424.4			523.7			23.4	%
Less: commissions and expenses capitalized		(108.6	)		(112.1	)		(118.9	)		(122.7	)		(150.0	)		-38.1	%		(210.9	)		(272.7	)		-29.3	%
Amortization of DAC and VOBA		43.8			26.8			59.5			65.8			72.7			66.0	%		96.3			138.5			43.7	%
Net Operating and Acquisition Expenses	$	152.7		$	139.8		$	164.7		$	172.6		$	216.9			42.0	%	$	309.8		$	389.4			25.7	%
General and administrative expenses - basis
points on gross account values - Annualized (2)		64			60			60			52			45			(19	)		62			49			(13	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$	1,097.6		$	1,118.5		$	1,250.6		$	1,328.0		$	1,414.9					$	999.4		$	1,328.0
Deferral		108.6			112.1			118.9			122.7			150.0						210.9			272.7
Amortization		(43.8	)		(26.8	)		(59.5	)		(65.8	)		(72.7	)					(96.3	)		(138.5	)
Included in Total Operating Expenses		64.8			85.2			59.4			56.9			77.3						114.6			134.2
Adjustment related to realized (gains) losses
on available-for-sale securities		(1.8	)		(4.7	)		(3.5	)		(2.7	)		(4.1	)					(8.9	)		(6.8	)
Adjustment related to unrealized
(gains) losses on                available-for-sale securities		(42.1	)		51.7			21.5			32.7			57.3						13.3			90.0
Business acquired		-			-			-			-			448.9						-			448.9
Balance at end of period	$	1,118.5		$	1,250.6		$	1,328.0		$	1,414.9		$	1,994.4					$	1,118.5		$	1,994.4
Roll Forward of Deferred Front-End Loads
Balance at beginning of period	$	55.2		$	61.1		$	65.6		$	72.0		$	78.1					$	50.1		$	72.0
Deferral		9.0			9.4			9.5			9.4			9.8						16.9			19.2
Amortization		(3.1	)		(4.8	)		(3.1	)		(3.3	)		(3.0	)					(5.9	)		(6.3	)
Included in Income from Operations		5.9			4.6			6.4			6.1			6.8						11.0			12.9
Balance at end of period	$	61.1		$	65.6		$	72.0		$	78.1		$	84.8					$	61.1		$	84.8
Roll Forward of Deferred Sales Inducements
Balance at beginning of period	$	94.9		$	106.6		$	118.1		$	129.4		$	139.9					$	85.5		$	129.4
Deferral		15.5			15.1			15.6			15.7			19.9						28.8			35.6
Amortization		(3.8	)		(3.6	)		(4.4	)		(5.2	)		(5.2	)					(7.7	)		(10.4	)
Included in Income from Operations		11.7			11.5			11.3			10.5			14.7						21.1			25.2
Balance at end of period	$	106.6		$	118.1		$	129.4		$	139.9		$	154.6					$	106.6		$	154.6
(1) Primarily broker-dealer revenue.
(2) Includes distribution costs.

6/30/2006																									PAGE 18
Individual Markets - Individual Annuities
Account Value Rollforward
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Fixed Annuities - Balance at Beginning of Period	$	11.411		$	11.441		$	11.375		$	10.837		$	10.561			-7.4	%	$	11.448		$	10.837			-5.3	%
Business acquired		-			-			-			-			9.343			NM			-			9.343			NM
Gross deposits		0.534			0.494			0.486			0.471			0.872			63.3	%		1.007			1.343			33.4	%
Withdrawals & deaths		(0.339	)		(0.340	)		(0.370	)		(0.408	)		(0.892	)		NM			(0.700	)		(1.299	)		-85.6	%
Net flows		0.196			0.155			0.116			0.063			(0.019	)		NM			0.307			0.044			-85.7	%
Transfer from (to) variable annuities		(0.282	)		(0.338	)		(0.768	)		(0.451	)		(0.395	)		-40.1	%		(0.546	)		(0.847	)		-55.1	%
Interest credited		0.117			0.117			0.115			0.112			0.186			59.0	%		0.232			0.298			28.4	%
Fixed Annuities - Gross		11.441			11.375			10.837			10.561			19.675			72.0	%		11.441			19.675			72.0	%
Reinsurance ceded		(2.277	)		(2.257	)		(2.233	)		(2.202	)		(2.149	)		5.6	%		(4.568	)		(2.149	)		53.0	%
Fixed Annuities -                 Balance at End of Period (1)	$	9.165		$	9.117		$	8.605		$	8.359		$	17.526			91.2	%	$	9.165		$	17.526			91.2	%
Variable Annuities - Balance at                Beginning of Period	$	31.100		$	32.801		$	35.276		$	37.662		$	40.501			30.2	%	$	30.684		$	37.662			22.7	%
Business acquired		-			-			-			-			0.250			NM			-			0.250			NM
Gross deposits		1.327			1.410			1.513			1.665			1.877			41.4	%		2.616			3.543			35.4	%
Withdrawals & deaths		(0.775	)		(0.847	)		(0.862	)		(0.959	)		(1.014	)		-30.8	%		(1.531	)		(1.973	)		-28.9	%
Net flows		0.552			0.563			0.651			0.706			0.864			56.5	%		1.085			1.570			44.7	%
Transfer from (to) fixed annuities		0.384			0.418			0.469			0.451			0.395			2.9	%		0.768			0.847			10.3	%
Investment increase & change in market value		0.765			1.494			1.266			1.682			(0.467	)		NM			0.264			1.215			NM
Variable Annuities -                  Balance at End of Period (2)	$	32.801		$	35.276		$	37.662		$	40.501		$	41.543			26.7	%	$	32.801		$	41.543			26.7	%
Total Annuities -               Balance at Beginning of Period	$	42.510		$	44.242		$	46.651		$	48.499		$	51.062			20.1	%	$	42.132		$	48.499			15.1	%
Business acquired		-			-			-			-			9.593			NM			-			9.593			NM
Gross deposits		1.862			1.904			1.999			2.136			2.750			47.7	%		3.623			4.886			34.9	%
Withdrawals & deaths		(1.114	)		(1.187	)		(1.232	)		(1.367	)		(1.905	)		-71.0	%		(2.231	)		(3.272	)		-46.7	%
Net flows		0.748			0.717			0.767			0.769			0.844			12.8	%		1.392			1.613			15.9	%
Transfers		0.102			0.080			(0.299	)		-			0.000			-100.0	%		0.223			0.000			-100.0	%
Interest credited & change in market value		0.882			1.611			1.381			1.794			(0.281	)		NM			0.496			1.513			205.0	%
Total Annuities - Gross		44.242			46.651			48.499			51.062			61.219			38.4	%		44.242			61.219			38.4	%
Reinsurance ceded		(2.277	)		(2.257	)		(2.233	)		(2.202	)		(2.149	)		5.6	%		(4.568	)		(2.149	)		53.0	%
Total Annuities (Net of Ceded) -          Balance at End of Period	$	41.966		$	44.393		$	46.266		$	48.861		$	59.070			40.8	%	$	41.966		$	59.070			40.8	%
Variable Annuities Under Agreement         - Included above	$	0.213		$	0.226		$	0.197		$	0.190		$	0.173			-18.8	%	$	0.213		$	0.173			-18.8	%
Incremental Deposits (3):
Fixed annuities	$	0.523		$	0.481		$	0.472		$	0.461		$	0.861			64.6	%		0.978		$	1.322			35.2	%
Variable annuities		1.293			1.383			1.481			1.650			1.850			43.1	%		2.552			3.500			37.1	%
Total Incremental Deposits		1.816			1.864			1.953			2.111			2.711			49.3	%		3.529			4.822			36.6	%
(1) Includes fixed portion of variable annuities.
(2) Excludes the fixed portion of variable annuities.
(3) Incremental Deposits represent gross deposits reduced by transfers from other Lincoln products.

6/30/2006																									PAGE 19
Individual Markets - Individual Annuities
Account Values
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Fixed Annuities - excluding fixed portion of     variable contracts
Deposits	$	0.045		$	0.024		$	0.025		$	0.022		$	0.137			204.4	%	$	0.100		$	0.159			59.0	%
Withdrawals		(0.226	)		(0.172	)		(0.218	)		(0.244	)		(0.660	)		NM			(0.475	)		(0.904	)		-90.3	%
Net flows	$	(0.180	)	$	(0.149	)	$	(0.193	)	$	(0.222	)	$	(0.523	)		NM		$	(0.375	)	$	(0.745	)		-98.7	%
Gross fixed contract account values	$	8.089		$	8.019		$	7.823		$	7.676		$	12.335			52.5	%	$	8.089		$	12.335			52.5	%
Reinsurance ceded		(2.277	)		(2.257	)		(2.233	)		(2.202	)		(2.149	)		5.6	%		(2.277	)		(2.149	)		5.6	%
Net Fixed Contract Account Values	$	5.812		$	5.761		$	5.590		$	5.474		$	10.186			75.3	%	$	5.812		$	10.186			75.3	%
Equity-indexed Annuities
Deposits	$	-		$	-		$	-		$	-		$	0.228			NM		$	-		$	0.228			NM
Withdrawals		-			-			-			-			(0.047	)		NM			-			(0.047	)		NM
Net flows	$	-		$	-		$	-		$	-		$	0.181			NM		$	-		$	0.181			NM
Equity-indexed Contract Account Values	$	-		$	-		$	-		$	-		$	3.210			NM		$	-		$	3.210			NM
Fixed Portion of Variable Contracts
Deposits	$	0.489		$	0.470		$	0.460		$	0.449		$	0.507			3.7	%	$	0.906		$	0.956			5.5	%
Withdrawals		(0.113	)		(0.164	)		(0.145	)		(0.164	)		(0.185	)		-63.7	%		(0.225	)		(0.348	)		-54.7	%
Net flows	$	0.376		$	0.306		$	0.315		$	0.285		$	0.322			-14.4	%	$	0.681		$	0.608			-10.7	%
Fixed Portion of Variable Contract Account Values	$	3.111		$	3.115		$	2.773		$	2.642		$	4.130			32.8	%	$	3.111		$	4.130			32.8	%
Variable Annuities - including fixed portion      of variable contracts
Deposits	$	1.817		$	1.880		$	1.973		$	2.114		$	2.384			31.2	%	$	3.523		$	4.499			27.7	%
Withdrawals		(0.889	)		(1.011	)		(1.007	)		(1.123	)		(1.198	)		-34.8	%		(1.756	)		(2.321	)		-32.2	%
Net Flows	$	0.928		$	0.868		$	0.966		$	0.991		$	1.186			27.8	%	$	1.766		$	2.177			23.3	%
Variable Contract Account Values	$	35.912		$	38.391		$	40.435		$	43.082		$	45.673			27.2	%	$	35.912		$	45.673			27.2	%
Average Daily Variable     Annuity Account Values	$	31.660		$	34.367		$	36.089		$	39.947		$	41.214			30.2	%	$	31.281		$	40.580			29.7	%
Individual Annuity Product Spread Information
																	Change (Basis Point)									Change (Basis Point)
Net investment income (1) (2)		5.74	%		5.68	%		5.73	%		5.84	%		5.67	%		(7	)		5.76	%		5.72	%		(4	)
Interest credited to policyholders		3.95	%		3.93	%		3.92	%		3.93	%		3.81	%		(14	)		3.96	%		3.89	%		(7	)
Spread (1) (2)		1.79	%		1.75	%		1.81	%		1.91	%		1.86	%		7			1.81	%		1.84	%		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 2 bps in the second quarter of 2006, 9 bps in the first quarter of 2006, 6 bps in the fourth quarter of 2005, 1 bp in the third quarter of 2005 and 2 bps in the second quarter of 2005. The impact was 4 bps in the first six months of 2006 and 1 bp in the first six months of 2005.

6/30/2006																									PAGE 20
Employer Markets - Retirement Products
Income Statements & Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Surrender charges	$	2.2		$	2.8		$	2.0		$	2.3		$	2.1			-4.5	%	$	5.1		$	4.4			-13.7	%
Expense assessments		49.1			51.8			51.7			55.6			54.7			11.4	%		97.1			110.3			13.6	%
Net investment income		176.7			177.5			181.3			185.7			187.5			6.1	%		352.7			373.2			5.8	%
Other revenue and fees		6.3			6.6			6.2			5.6			4.6			-27.0	%		12.7			10.2			-19.7	%
Total Operating Revenue		234.3			238.7			241.2			249.2			248.9			6.2	%		467.6			498.1			6.5	%
Operating Expenses
Interest credited to contractholder funds		100.4			100.7			101.1			100.7			102.4			2.0	%		200.1			203.1			1.5	%
Operating and acquisition expenses		71.2			62.2			77.2			73.3			69.5			-2.4	%		145.1			142.8			-1.6	%
Total Operating Expenses		171.6			162.9			178.3			174.0			171.9			0.2	%		345.1			345.9			0.2	%
Income from operations before     Federal income taxes		62.7			75.8			62.9			75.2			77.0			22.8	%		122.5			152.2			24.2	%
Federal income taxes		17.4			22.4			17.7			22.7			22.7			30.5	%		34.0			45.4			33.5	%
Income from Operations	$	45.3		$	53.4		$	45.2		$	52.5		$	54.3			19.9	%	$	88.5		$	106.8			20.7	%
Effective tax rate		27.7	%		29.5	%		28.2	%		30.2	%		29.4	%					27.7	%		29.8	%
Average equity	$	876.8		$	909.9		$	939.1		$	1,006.4		$	985.3					$	886.4		$	995.9
Return on average equity		20.7	%		23.5	%		19.3	%		20.9	%		22.0	%					20.0	%		21.5	%
Basis points on average account values		64			73			60			67			69						63			68
Operating and Acquisition Expenses
Commissions	$	24.9		$	26.4		$	25.1		$	26.2		$	22.2			-10.8	%	$	51.4		$	48.4			-5.8	%
General and administrative expenses		48.8			60.6			57.4			49.7			47.2			-3.3	%		97.6			96.9			-0.7	%
Taxes, licenses and fees		3.1			(0.8	)		1.2			2.9			2.8			-9.7	%		7.3			5.8			-20.5	%
Total commissions and expenses incurred		76.8			86.2			83.7			78.8			72.3			-5.9	%		156.3			151.1			-3.3	%
Less: commissions and expenses capitalized		(23.7	)		(24.5	)		(24.4	)		(25.5	)		(22.6	)		4.6	%		(48.4	)		(48.1	)		0.6	%
Amortization of DAC and VOBA		18.1			0.5			17.9			20.0			19.8			9.4	%		37.2			39.9			7.3	%
Net Operating and Acquisition Expenses	$	71.2		$	62.2		$	77.2		$	73.3		$	69.5			-2.4	%	$	145.1		$	142.8			-1.6	%
General and administrative expenses - basis
points on account values - Annualized (1)		69			83			77			64			60			(9	)		69			62			(7	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$	395.6		$	332.0		$	420.1		$	454.9		$	517.2					$	304.1		$	454.9
Deferral		23.7			24.5			24.4			25.5			22.6						48.4			48.1
Amortization		(18.1	)		(0.5	)		(17.9	)		(20.0	)		(19.8	)					(37.2	)		(39.9	)
Included in Total Operating Expenses		5.6			24.1			6.6			5.5			2.7						11.2			8.2
Adjustment related to realized (gains) losses
on available-for-sale securities		(6.6	)		(3.7	)		(3.9	)		(4.4	)		(6.1	)					(9.2	)		(10.6	)
Adjustment related to unrealized
(gains) losses on                 available-for-sale securities		(62.5	)		67.7			32.1			61.2			50.2						26.0			111.5
Business acquired		-			-			-			-			-						-			-
Other		-			-			-			-			-						-			-
Balance at end of period	$	332.0		$	420.1		$	454.9		$	517.2		$	564.0					$	332.0		$	564.0
(1) Includes distribution costs.

6/30/2006																			PAGE 21
Employer Markets - Retirement Products Account Value Rollforward
Account Value Rollforward
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Fixed Annuities - Balance at Beginning of Period	$	10.688		$	10.710		$	10.686		$	10.995		$	11.028			3.2	%	$	10.837		$	10.995			1.5	%
Gross deposits (1)		0.286			0.259			0.240			0.253			0.242			-15.4	%		0.584			0.495			-15.2	%
Withdrawals & deaths		(0.332	)		(0.330	)		(0.342	)		(0.328	)		(0.345	)		-3.9	%		(0.790	)		(0.673	)		14.8	%
Net flows		(0.046	)		(0.071	)		(0.103	)		(0.075	)		(0.103	)		NM			(0.206	)		(0.178	)		13.7	%
Transfer from (to) variable annuities		(0.033	)		(0.055	)		0.304			0.014			0.039			218.2	%		(0.119	)		0.053			NM
Interest credited		0.100			0.102			0.108			0.094			0.090			-10.0	%		0.198			0.184			-7.2	%
Fixed Annuities - Balance at End of Period(2)	$	10.710		$	10.686		$	10.995		$	11.028		$	11.054			3.2	%	$	10.710		$	11.054			3.2	%
Variable Annuities - Balance at Beginning of Period	$	14.346		$	14.648		$	15.293		$	15.702		$	16.455			14.7	%	$	14.576		$	15.702			7.7	%
Gross deposits (1)		0.524			0.527			0.642			0.669			0.714			36.3	%		1.085			1.383			27.4	%
Withdrawals & deaths		(0.497	)		(0.522	)		(0.579	)		(0.676	)		(0.647	)		-30.2	%		(1.009	)		(1.322	)		-31.0	%
Net flows		0.026			0.005			0.062			(0.006	)		0.067			157.7	%		0.076			0.061			-19.9	%
Transfer from (to) fixed annuities		(0.066	)		(0.025	)		(0.001	)		(0.015	)		(0.032	)		51.5	%		(0.096	)		(0.047	)		51.4	%
Investment increase & change in market value		0.341			0.665			0.348			0.774			(0.350	)		NM			0.092			0.424			NM
Variable Annuities - Balance at End of Period (3)	$	14.648		$	15.293		$	15.702		$	16.455		$	16.140			10.2	%	$	14.648		$	16.140			10.2	%
Total Annuities - Balance at Beginning of Period	$	25.034		$	25.358		$	25.979		$	26.697		$	27.483			9.8	%	$	25.413		$	26.697			5.1	%
Gross Deposits (1)		0.810			0.786			0.882			0.923			0.955			17.9	%		1.669			1.878			12.5	%
Withdrawals & deaths		(0.829	)		(0.852	)		(0.922	)		(1.004	)		(0.992	)		-19.7	%		(1.800	)		(1.995	)		-10.9	%
Net flows		(0.019	)		(0.066	)		(0.040	)		(0.081	)		(0.036	)		-89.5	%		(0.130	)		(0.117	)		10.0	%
Transfers		(0.099	)		(0.080	)		0.302			(0.001	)		0.007			NM			(0.215	)		0.007			NM
Interest credited & change in market value		0.442			0.766			0.456			0.868			(0.260	)		NM			0.290			0.608			109.5	%
Total Annuities - Balance at End of Period	$	25.358		$	25.979		$	26.697		$	27.483		$	27.194			7.2	%	$	25.358		$	27.194			7.2	%
Alliance Mutual Funds - Balance at Beginning of Period	$	3.163		$	3.432		$	3.672		$	3.772		$	4.248			34.3	%	$	2.861		$	3.772			31.8	%
Plan/Participant Rollovers		0.065			0.036			0.063			0.125			0.021			-67.7	%		0.323			0.146			-54.9	%
Additional contributions		0.157			0.164			0.160			0.193			0.183			16.6	%		0.320			0.376			17.5	%
Gross deposits		0.222			0.200			0.223			0.318			0.204			-8.1	%		0.643			0.522			-18.9	%
Withdrawals & deaths		(0.022	)		(0.107	)		(0.208	)		(0.056	)		(0.054	)		NM			(0.095	)		(0.110	)		-15.4	%
Net flows		0.201			0.093			0.014			0.262			0.150			-25.4	%		0.548			0.412			-24.9	%
Transfers		(0.006	)		(0.000	)		(0.003	)		0.005			-			100.0	%		(0.004	)		0.005			NM
Interest credited & change in market value		0.075			0.147			0.088			0.209			(0.068	)		NM			0.027			0.142			NM
Total Alliance Mutual Funds - Balance at End of Period(4)	$	3.432		$	3.672		$	3.772		$	4.248		$	4.330			26.2	%	$	3.432		$	4.330			26.2	%
Total Retirement Products Segment Account Values - including Alliance Mutual Funds
Balance at Beginning of Period	$	28.197		$	28.790		$	29.651		$	30.469		$	31.731			12.5	%	$	28.274		$	30.469			7.8	%
Gross deposits (1)		1.032			0.986			1.104			1.241			1.159			12.3	%		2.313			2.400			3.8	%
Withdrawals & deaths		(0.851	)		(0.958	)		(1.130	)		(1.060	)		(1.045	)		-22.8	%		(1.895	)		(2.105	)		-11.1	%
Net flows		0.181			0.028			(0.026	)		0.181			0.114			-37.0	%		0.418			0.295			-29.4	%
Transfers		(0.105	)		(0.080	)		0.300			0.005			0.007			106.7	%		(0.219	)		0.012			NM
Interest credited & change in market value		0.516			0.914			0.544			1.077			(0.327	)		NM			0.317			0.749			136.4	%
Total Retirement Products Segment Account Values-
Balance at End of Period	$	28.790		$	29.651		$	30.469		$	31.731		$	31.524			9.5	%	$	28.790		$	31.524			9.5	%
Variable Annuities Under Agreement - Included above		0.019			0.019			0.019			0.018			0.017			-10.5	%		0.019			0.017			-10.5	%
Incremental Deposits (5):
Fixed Annuities	$	0.284		$	0.243		$	0.200		$	0.254		$	0.226			-20.4	%	$	0.578		$	0.480			-17.0	%
Variable Annuities		0.521			0.553			0.614			0.654			0.709			36.1	%		1.078			1.363			26.5	%
Total Annuities Incremental Deposits		0.805			0.796			0.814			0.908			0.935			16.1	%		1.656			1.843			11.3	%
Total Alliance Mutual Funds Incremental Deposits		0.222			0.200			0.223			0.318			0.204			-8.1	%		0.643			0.522			-18.8	%
Total Retirement Products Incremental Deposits	$	1.028		$	0.996		$	1.036		$	1.226		$	1.139			10.8	%	$	2.299		$	2.365			2.9	%

⁽¹⁾Gross deposits for the second quarter and first six months of 2006 include approximately $20 million and $110 million of fixed and variable annuity deposits, respectively, resulting from JP employee plan deposits into the LNC employee plan as a result of the merger. 

⁽²⁾ Includes Fixed Annuity products offered under the Alliance mutual funds and the fixed portion of variable annuities. 

⁽³⁾Excludes the fixed portion of variable annuities. 

⁽⁴⁾  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.

⁽⁵⁾Incremental Deposits represent gross deposits reduced by transfers from other Lincoln products. 

6/30/2006																			PAGE 22
Employer Markets - Retirement Products
Supplemental Data
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Fixed Annuities - excluding fixed portion of variable contracts
Deposits (1)	$	0.135		$	0.121		$	0.133		$	0.135		$	0.121			-10.4	%	$	0.278		$	0.256			-7.9	%
Withdrawals		(0.077	)		(0.154	)		(0.156	)		(0.108	)		(0.114	)		-48.1	%		(0.282	)		(0.222	)		21.3	%
Net Flows	$	0.058		$	(0.033	)	$	(0.023	)	$	0.027		$	0.008			-86.2	%	$	(0.004	)	$	0.035			NM
Fixed Contract Account Values	$	3.592		$	3.599		$	3.696		$	3.745		$	3.573			-0.5	%	$	3.592		$	3.573			-0.5	%
Fixed Portion of Variable Contracts
Deposits	$	0.151		$	0.139		$	0.108		$	0.118		$	0.120			-20.5	%	$	0.306		$	0.239			-21.9	%
Withdrawals		(0.254	)		(0.179	)		(0.194	)		(0.220	)		(0.231	)		9.1	%		(0.509	)		(0.452	)		11.2	%
Net Flows	$	(0.103	)	$	(0.040	)	$	(0.086	)	$	(0.102	)	$	(0.111	)		-7.8	%	$	(0.202	)	$	(0.213	)		-5.4	%
Fixed Portion of Variable Contract Account Values	$	7.118		$	7.087		$	7.299		$	7.283		$	7.482			5.1	%	$	7.118		$	7.482			5.1	%
Variable Annuities - including fixed portion of variable contracts
Deposits (1)	$	0.675		$	0.692		$	0.724		$	0.788		$	0.834			23.6	%	$	1.392		$	1.622			16.5	%
Withdrawals		(0.752	)		(0.728	)		(0.747	)		(0.896	)		(0.878	)		-16.8	%		(1.518	)		(1.774	)		-16.9	%
Net Flows	$	(0.077	)	$	(0.036	)	$	(0.023	)	$	(0.108	)	$	(0.044	)		42.9	%	$	(0.126	)	$	(0.152	)		-20.6	%
Variable Contract Account Values	$	21.766		$	22.380		$	23.001		$	23.738		$	23.621			8.5	%	$	21.766		$	23.621			8.5	%
Average Daily Variable Annuity Account Values	$	14.328		$	15.087		$	15.323		$	16.177		$	16.270			13.6	%	$	14.359		$	16.223			13.0	%
Total Annuity based Retirement Plan Product Spread Information (2)																	Change									Change
																	(Basis Point)									(Basis Point)
Net investment income (3)		6.25	%		6.25	%		6.36	%		6.34	%		6.31	%		6			6.27	%		6.33	%		6
Interest credited to policyholders		3.68	%		3.67	%		3.67	%		3.66	%		3.73	%		5			3.69	%		3.70	%		1
Spread (3)		2.57	%		2.58	%		2.69	%		2.68	%		2.58	%		1			2.58	%		2.63	%		5
(1) Gross deposits for the second quarter and first six months of 2006 include approximately $20 million and $110 million of fixed and variable annuity deposits, respectively, resulting from JP employee plan deposits into the LNC employee plan as a result of the merger.
(2) 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.
(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 was 12 bps in the 2nd quarter of 2006, 15 bps in the 1st quarter of 2006, 17 bps in the 4th quarter of 2005, 7 bps in the 3rd quarter of 2005 and 13 bps in the 2nd quarter of 2005.

6/30/2006																PAGE 23
Employer Markets - Benefit Partners
Income Statements & Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended													Six Months Ended
	Jun		Sep		Dec		Mar		Jun			%		Jun		Jun			%
	2005		2005		2005		2006		2006			Change		2005		2006			Change
Operating Revenue
Premiums	$	-	$	-	$	-	$	-	$	328.9			NM	$	-	$	328.9			NM
Net investment income		-		-		-		-		25.1			NM		-		25.1			NM
Other revenue and fees		-		-		-		-		0.8			NM		-		0.8			NM
Total Operating Revenue		-		-		-		-		354.9			NM		-		354.9			NM
Operating Expenses
Insurance benefits		-		-		-		-		226.0			NM		-		226.0			NM
Operating and acquisition expenses		-		-		-		-		72.0			NM		-		72.0			NM
Total Operating Expenses		-		-		-		-		297.9			NM		-		297.9			NM
Income from operations before Federal income taxes		-		-		-		-		56.9			NM		-		56.9			NM
Federal income taxes		-		-		-		-		19.9			NM		-		19.9			NM
Income from Operations	$	-	$	-	$	-	$	-	$	37.0			NM	$	-	$	37.0			NM
Effective tax rate										35.0	%						35.0	%
Operating and Acquisition Expenses
Commissions	$	-	$	-	$	-	$	-	$	37.3			NM	$	-	$	37.3			NM
General and administrative expenses		-		-		-		-		31.9			NM		-		31.9			NM
Taxes, licenses and fees		-		-		-		-		8.0			NM		-		8.0			NM
Total commissions and expenses incurred		-		-		-		-		77.1			NM		-		77.1			NM
Less commissions and expenses capitalized		-		-		-		-		(11.2	)		NM		-		(11.2	)		NM
Amortization of DAC and VOBA		-		-		-		-		6.0			NM		-		6.0			NM
Net Operating and Acquisition Expenses	$	-	$	-	$	-	$	-	$	72.0			NM	$	-	$	72.0			NM
General and administrative expenses as a
percentage of premiums		-		-		-		-		9.7	%		NM		-		9.7	%		NM
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$	-	$	-	$	-	$	-	$	-				$	-	$	-
Deferral		-		-		-		-		11.2					-		11.2
Amortization		-		-		-		-		(6.0	)				-		(6.0	)
Included in Total Operating Expenses		-		-		-		-		5.2					-		5.2
Adjustment related to realized (gains) losses
on available-for-sale securities		-		-		-		-		-					-		-
Adjustment related to unrealized (gains) losses
on available-for-sale securities		-		-		-		-		-					-		-
Business acquired		-		-		-		-		116.2					-		116.2
Other		-		-		-		-		-					-		-
Balance at end of period	$	-	$	-	$	-	$	-	$	121.4				$	-	$	121.4

6/30/2006														PAGE 24
Employer Markets - Benefit Partners
Supplemental Data
Unaudited [Millions of Dollars]
	Three Months Ended													Six Months Ended
	Jun		Sep		Dec		Mar		Jun			%		Jun		Jun			%
	2005		2005		2005		2006		2006			Change		2005		2006			Change
Annualized Sales
Life	$	-	$	-	$	-	$	-	$	15.3			NM	$	-	$	15.3			NM
Disability		-		-		-		-		22.9			NM		-		22.9			NM
Dental		-		-		-		-		7.1			NM		-		7.1			NM
Premiums:
Life	$	-	$	-	$	-	$	-	$	111.6			NM	$	-	$	111.6			NM
Disability		-		-		-		-		134.0			NM		-		134.0			NM
Dental		-		-		-		-		31.4			NM		-		31.4			NM
Other		-		-		-		-		51.9			NM		-		51.9			NM
Total	$	-	$	-	$	-	$	-	$	328.9			NM	$	-	$	328.9			NM
Product Line Results:
Life	$	-	$	-	$	-	$	-	$	13.5			NM	$	-	$	13.5			NM
Disability		-		-		-		-		21.1			NM		-		21.1			NM
Dental		-		-		-		-		1.4			NM		-		1.4			NM
Other		-		-		-		-		1.0			NM		-		1.0			NM
Total	$	-	$	-	$	-	$	-	$	37.0			NM	$	-	$	37.0			NM
Loss Ratios:
Life		-		-		-		-		67.8	%		NM		-		67.8	%		NM
Disability		-		-		-		-		59.4	%		NM		-		59.4	%		NM
Dental		-		-		-		-		76.3	%		NM		-		76.3	%		NM
Combined loss ratios		-		-		-		-		64.7	%		NM		-		64.7	%		NM

6/30/2006																			PAGE 25
Employer Markets - Executive Benefits & Other
Income Statements & Operational Data
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Premiums	$	0.5		$	7.4		$	0.7		$	1.1		$	0.0			-100.0	%	$	0.5		$	1.1			120.0	%
Surrender charges		(0.2	)		(0.1	)		0.0			0.0			0.0			NM			(0.2	)		0.0			NM
Mortality assessments		2.1			2.0			2.5			2.8			8.5			NM			4.3			11.3			162.8	%
Expense assessments		4.4			3.7			6.1			3.3			4.9			11.4	%		8.8			8.2			-6.8	%
Net investment income		45.2			45.1			51.0			48.7			86.5			91.4	%		90.5			135.2			49.4	%
Other revenue and fees		1.2			1.3			1.3			1.4			1.3			8.3	%		2.5			2.7			8.0	%
Total Operating Revenue		53.2			59.4			61.6			57.2			101.2			90.2	%		106.3			158.4			49.0	%
Operating Expenses
Insurance benefits		30.7			39.9			31.2			32.8			30.4			-1.0	%		62.5			63.2			1.1	%
Interest credited to contractholder funds		9.6			10.4			9.5			9.3			40.2			NM			18.9			49.4			161.4	%
Operating and acquisition expenses		7.5			6.4			7.3			4.6			7.2			-4.0	%		15.5			11.7			-24.5	%
Total Operating Expenses		47.8			56.8			48.0			46.7			77.7			62.6	%		96.9			124.3			28.3	%
Income from operations before Federal income taxes		5.3			2.7			13.6			10.5			23.5			NM			9.4			34.0			261.7	%
Federal income taxes		1.0			0.2			4.1			3.0			7.3			NM			1.8			10.3			NM
Income from Operations	$	4.3		$	2.5		$	9.5		$	7.5		$	16.2			276.7	%	$	7.7		$	23.8			209.1	%
Effective tax rate		19.3	%		7.6	%		30.0	%		28.5	%		31.0	%					18.7	%		30.2	%
Average equity	$	296.8		$	283.1		$	321.8		$	334.5		$	524.8					$	292.9		$	429.7
Return on average equity		5.8	%		3.5	%		11.8	%		9.0	%		12.4	%					5.2	%		11.1	%
Operating and Acquisition Expenses
Commissions	$	5.4		$	6.7		$	5.1		$	5.1		$	8.1			50.0	%	$	10.1		$	13.3			31.7	%
General and administrative expenses		4.0			5.8			5.0			3.7			2.8			-30.0	%		8.3			6.5			-21.7	%
Taxes, licenses and fees		0.9			1.5			1.0			1.1			1.3			44.4	%		1.9			2.4			26.3	%
Total commissions and expenses incurred		10.2			14.0			11.1			9.9			12.2			19.6	%		20.3			22.1			8.9	%
Less: commissions and expenses capitalized		(5.3	)		(7.3	)		(5.1	)		(5.7	)		(8.0	)		-50.9	%		(10.8	)		(13.7	)		-26.9	%
Amortization of DAC and VOBA		2.6			(0.3	)		1.3			0.3			2.9			11.5	%		5.9			3.2			-45.8	%
Net Operating and Acquisition Expenses	$	7.5		$	6.4		$	7.3		$	4.5		$	7.2			-4.0	%	$	15.5		$	11.7			-24.5	%
General and administrative expenses - basis
points on account values - Annualized (1)		136			189			155			109			26			(110	)		142			47			(95	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$	99.5		$	102.2		$	109.8		$	113.6		$	119.0					$	97.3		$	113.6
Deferral		5.3			7.3			5.1			5.7			8.0						10.8			13.7
Amortization		(2.6	)		0.3			(1.3	)		(0.3	)		(2.9	)					(5.9	)		(3.2	)
Included in Total Operating Expenses		2.7			7.6			3.8			5.4			5.1						4.9			10.4
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			-			-			-						-			-
Adjustment related to unrealized (gains) losses
on available-for-sale securities		-			-			-			-			7.6						-			7.6
Business acquired		-			-			-			-			142.5						-			142.5
Balance at end of period	$	102.2		$	109.8		$	113.6		$	119.0		$	274.1					$	102.2		$	274.1
Roll Forward of Deferred Front-End Loads
Balance at beginning of period	$	15.5		$	15.6		$	16.9		$	17.9		$	18.9					$	15.5		$	17.9
Deferral		0.9			1.0			1.2			1.0			1.0						1.7			2.0
Amortization		(0.7	)		0.4			(0.3	)		(0.0	)		(0.2	)					(1.6	)		(0.2	)
Included in Income from Operations		0.1			1.3			0.9			1.0			0.8						0.1			1.8
Balance at end of period	$	15.6		$	16.9		$	17.9		$	18.9		$	19.7					$	15.6		$	19.7
(1) Includes distribution costs.

6/30/2006																						PAGE 26
Employer Markets - Executive Benefits & Other
Account Value Roll Forward and Supplemental Data
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
COLI/BOLI- Balance Beginning-of-Period	$	1.138		$	1.194		$	1.256		$	1.318		$	1.387			21.9	%	$	1.122		$	1.318			17.5	%
Business acquired		-			-			-			-			2.795			NM			-			2.795			NM
Deposits		0.056			0.057			0.052			0.047			0.077			37.5	%		0.101			0.124			22.8	%
Withdrawals & deaths		(0.011	)		(0.015	)		(0.002	)		(0.007	)		(0.042	)		NM			(0.031	)		(0.049	)		-58.1	%
Net flows		0.045			0.042			0.049			0.039			0.035			-22.2	%		0.070			0.075			7.1	%
Policyholder assessments		(0.008	)		(0.008	)		(0.011	)		(0.009	)		(0.017	)		NM			(0.016	)		(0.026	)		-62.5	%
Interest credited and change in market value		0.019			0.028			0.023			0.038			0.028			47.4	%		0.019			0.066			247.4	%
COLI/BOLI-Balance End-of-Period	$	1.194		$	1.256		$	1.318		$	1.387		$	4.228			254.1	%	$	1.194		$	4.228			254.1	%
COLI/BOLI In-Force	$	7.278		$	7.506		$	7.729		$	7.979		$	15.373			111.2	%	$	7.278		$	15.373			111.2	%
Run Off Institutional Pensions Account Values -
Balance at End of Period	$	2.883		$	2.877		$	2.737		$	2.753		$	2.707			-6.1	%	$	2.883		$	2.707			-6.1	%

6/30/2006																			PAGE 27
Investment Management
Income Statements
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Investment advisory fees - External	$	62.0		$	67.9		$	70.9		$	77.8		$	81.2			31.0	%	$	117.0		$	159.0			35.9	%
Investment advisory fees - Insurance-related		24.6			24.9			24.5			25.1			23.5			-4.5	%		49.4			48.6			-1.6	%
Other revenue and fees		27.8			30.4			32.5			36.7			30.0			7.9	%		57.8			66.7			15.4	%
Operating Revenue		114.4			123.2			127.9			139.6			134.7			17.7	%		224.2			274.3			22.3	%
Operating Expenses
Operating and administrative expenses		116.6			115.0			114.4			116.1			116.4			-0.2	%		219.6			232.5			5.9	%
Total Operating Expenses		116.6			115.0			114.4			116.1			116.4			-0.2	%		219.6			232.5			5.9	%
Income (Loss) from operations before Federal income taxes		(2.2	)		8.2			13.5			23.5			18.3			NM			4.6			41.8			NM
Federal income taxes		(0.8	)		3.4			4.6			8.2			6.3			NM			1.5			14.5			NM
Income (Loss) from Operations	$	(1.4	)	$	4.8		$	8.9		$	15.3		$	12.0			NM		$	3.1		$	27.3			NM
Effective tax rate		36.4	%		41.5	%		34.1	%		34.9	%		34.4	%					32.6	%		34.7	%
Operating and Acquisition Expenses
General and administrative expenses	$	101.0		$	99.0		$	97.8		$	96.1		$	99.4			-1.6	%	$	188.1		$	195.5			3.9	%
Depreciation and amortization		2.5			1.7			2.0			2.2			2.4			-4.0	%		4.9			4.6			-6.1	%
Sub-advisory fees		9.0			9.8			10.1			11.0			10.6			17.8	%		17.3			21.6			24.9	%
Total general and administrative expenses		112.5			110.5			109.9			109.3			112.4			-0.1	%		210.4			221.7			5.4	%
Taxes, licenses and fees		2.2			2.5			2.6			4.8			2.4			9.1	%		5.3			7.2			35.8	%
Amortization of intangibles		1.9			2.0			2.0			2.0			1.6			-15.8	%		3.8			3.6			-5.3	%
Total expenses incurred	$	116.6		$	115.0		$	114.4		$	116.1		$	116.4			-0.2	%	$	219.6		$	232.5			5.9	%
General and administrative expenses -
basis points on assets under
management - Annualized (1)		38			35			33			31			28			(10	)		36			29			(7	)
(1) Includes distribution costs.

6/30/2006																			PAGE 28
Investment Management
Assets Under Management Roll Forward
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Retail Fixed - Balance-Beginning-of-Period	$	8.638		$	9.095		$	9.371		$	9.625		$	9.761			13.0	%	$	8.457		$	9.625			13.8	%
Sales (1)		0.905			0.942			0.965			0.951			1.034			14.3	%		1.811			1.984			9.6	%
Redemptions		(0.632	)		(0.664	)		(0.779	)		(0.805	)		(0.824	)		-30.4	%		(1.322	)		(1.630	)		-23.3	%
Transfers		(0.063	)		0.023			0.026			(0.056	)		0.030			NM			(0.038	)		(0.026	)		31.6	%
Net Flows		0.211			0.301			0.212			0.089			0.240			13.7	%		0.452			0.329			-27.2	%
Net investment gains and change in market value		0.246			(0.025	)		0.043			0.046			0.007			-97.2	%		0.185			0.053			-71.4	%
Balance at End-of-Period	$	9.095		$	9.371		$	9.625		$	9.761		$	10.007			10.0	%	$	9.095		$	10.007			10.0	%
Retail Equity - Balance-Beginning-of-Period	$	25.053		$	27.725		$	30.988		$	32.732		$	36.500			45.7	%	$	24.278		$	32.732			34.8	%
Sales (1)		3.429			2.630			2.664			3.069			2.249			-34.4	%		6.089			5.318			-12.7	%
Redemptions		(1.365	)		(1.186	)		(1.700	)		(1.840	)		(2.134	)		-56.3	%		(2.821	)		(3.974	)		-40.9	%
Transfers		(0.127	)		(0.025	)		(0.027	)		(0.013	)		(0.032	)		74.8	%		(0.146	)		(0.045	)		69.2	%
Net Flows		1.936			1.419			0.936			1.216			0.082			-95.8	%		3.122			1.298			-58.4	%
Net investment gains and change in market value		0.736			1.844			0.807			2.552			(0.547	)		NM			0.326			2.006			NM
Balance at End-of-Period	$	27.725		$	30.988		$	32.732		$	36.500		$	36.035			30.0	%	$	27.725		$	36.035			30.0	%
Total Retail - Balance-Beginning-of-Period	$	33.691		$	36.820		$	40.359		$	42.357		$	46.261			37.3	%	$	32.735		$	42.357			29.4	%
Retail sales-Annuities		0.701			0.642			0.713			0.885			0.869			24.0	%		1.414			1.754			24.0	%
Retail sales-Mutual Funds		1.487			1.331			1.657			1.329			1.370			-7.9	%		3.007			2.699			-10.2	%
Retail sales-Managed Accounts & Other		2.146			1.599			1.260			1.806			1.043			-51.4	%		3.479			2.849			-18.1	%
Total Retail Sales		4.334			3.572			3.629			4.019			3.282			-24.3	%		7.900			7.302			-7.6	%
Redemptions		(1.997	)		(1.850	)		(2.479	)		(2.645	)		(2.959	)		-48.2	%		(4.143	)		(5.604	)		-35.3	%
Transfers		(0.190	)		(0.002	)		(0.002	)		(0.069	)		(0.002	)		98.9	%		(0.183	)		(0.071	)		61.2	%
Net Flows		2.147			1.720			1.148			1.305			0.322			-85.0	%		3.574			1.627			-54.5	%
Net investment gains and change in market value		0.982			1.819			0.850			2.598			(0.540	)		NM			0.511			2.058			NM
Balance at End-of-Period	$	36.820		$	40.359		$	42.357		$	46.261		$	46.042			25.0	%	$	36.820		$	46.042			25.0	%
Institutional Fixed - Balance-Beginning-of-Period	$	12.715		$	13.403		$	13.964		$	14.699		$	17.262			35.8	%	$	11.547		$	14.699			27.3	%
Inflows (1)		1.472			1.036			1.175			3.080			1.634			11.0	%		3.002			4.714			57.0	%
Withdrawals/terminations		(1.016	)		(0.393	)		(0.483	)		(0.447	)		(0.750	)		26.2	%		(1.333	)		(1.197	)		10.2	%
Transfers		(0.006	)		0.001			(0.001	)		0.002			0.008			NM			(0.006	)		0.011			NM
Net Flows		0.450			0.643			0.691			2.636			0.892			98.2	%		1.664			3.528			112.0	%
Net investment gains and change in market value		0.239			(0.083	)		0.044			(0.074	)		0.001			-99.6	%		0.192			(0.073	)		NM
Balance at End-of-Period	$	13.403		$	13.964		$	14.699		$	17.262		$	18.154			35.4	%	$	13.403		$	18.154			35.4	%
Institutional Equity - Balance-Beginning-of-Period	$	12.674		$	16.627		$	18.951		$	20.576		$	22.906			80.7	%	$	12.849		$	20.576			60.1	%
Inflows (1)		4.638			2.131			3.658			1.964			1.130			-75.6	%		5.300			3.094			-41.6	%
Withdrawals/terminations		(1.069	)		(0.948	)		(2.617	)		(1.008	)		(1.327	)		-24.1	%		(1.601	)		(2.335	)		-45.8	%
Transfers		(0.144	)		(0.000	)		0.001			0.000			(0.008	)		94.4	%		(0.143	)		(0.008	)		94.4	%
Net Flows		3.425			1.182			1.041			0.956			(0.205	)		NM			3.556			0.751			-78.9	%
Net investment gains and change in market value		0.528			1.141			0.584			1.373			(0.971	)		NM			0.222			0.402			81.1	%
Balance at End-of-Period	$	16.627		$	18.951		$	20.576		$	22.906		$	21.729			30.7	%	$	16.627		$	21.729			30.7	%
Total Institutional - Balance-Beginning-of-Period	$	25.390		$	30.031		$	32.915		$	35.276		$	40.167			58.2	%	$	24.396		$	35.276			44.6	%
Inflows		6.110			3.166			4.833			5.044			2.764			-54.8	%		8.303			7.808			-6.0	%
Withdrawals/terminations		(2.085	)		(1.342	)		(3.100	)		(1.454	)		(2.078	)		0.3	%		(2.934	)		(3.532	)		-20.4	%
Transfers		(0.151	)		0.000			(0.001	)		0.003			0.000			100.0	%		(0.148	)		0.003			NM
Net Flows		3.875			1.825			1.733			3.592			0.687			-82.3	%		5.220			4.279			-18.0	%
Net investment gains and change in market value		0.766			1.058			0.629			1.299			(0.971	)		NM			0.415			0.328			-21.0	%
Balance at End-of-Period	$	30.031		$	32.915		$	35.276		$	40.167		$	39.883			32.8	%	$	30.031		$	39.883			32.8	%
Total Retail and Institutional - At End-of-Period	$	66.851		$	73.274		$	77.633		$	86.428		$	85.926			28.5	%	$	66.851		$	85.926			28.5	%
General Account Assets-End-of-Period (2)	$	43.917		$	43.095		$	43.086		$	41.995		$	65.637			49.5	%	$	43.917		$	65.637			49.5	%
Total Assets Under Management
At End-of-Period	$	110.768		$	116.369		$	120.719		$	128.423		$	151.563			36.8	%	$	110.768		$	151.563			36.8	%
Total Retail and Institutional - Net Flows	$	6.022		$	3.546		$	2.881		$	4.898		$	1.008			-83.3	%	$	8.794		$	5.906			-32.8	%
Subadvised Assets, included in Assets
Under Management above
Retail	$	12.202		$	14.319		$	15.388		$	17.320		$	16.899			38.5	%	$	12.202		$	16.899			38.5	%
Institutional		4.564			4.986			5.114			5.608			4.593			0.6	%		4.564			4.593			0.6	%
Total Subadvised Assets	$	16.766		$	19.305		$	20.503		$	22.928		$	21.491			28.2	%	$	16.766		$	21.491			28.2	%
(1) Sales and in-flows include dividend reinvestments.
(2) Balance at June 30, 2006 includes $26.1 billion of assets acquired due to the merger with Jefferson Pilot.

6/30/2006																			PAGE 29
Lincoln UK
Income Statements
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Premiums	$	16.4		$	16.9		$	15.4		$	16.6		$	19.9			21.3	%	$	31.0		$	36.5			17.7	%
Mortality assessments		9.4			9.0			7.3			7.8			8.9			-5.3	%		18.4			16.7			-9.2	%
Expense assessments		33.0			56.0			22.0			28.0			34.7			5.2	%		63.6			62.7			-1.4	%
Net investment income		19.6			20.9			17.8			17.0			17.8			-9.2	%		39.9			34.9			-12.5	%
Other revenue and fees		-			-			-			0.1			0.0			NM			0.1			0.1
Total Operating Revenue		78.4			102.9			62.6			69.5			81.4			3.8	%		153.0			150.9			-1.4	%
Operating Expenses
Insurance benefits		27.9			35.5			27.5			25.4			27.5			-1.4	%		53.0			52.9			-0.2	%
Operating and acquisition expenses		34.7			52.7			14.3			27.6			38.9			12.1	%		68.7			66.5			-3.2	%
Total Operating Expenses		62.6			88.2			41.8			53.0			66.3			5.9	%		121.8			119.3			-2.1	%
Income from operations before Federal income taxes		15.8			14.7			20.8			16.5			15.1			-4.4	%		31.2			31.6			1.3	%
Federal income taxes		5.6			5.1			7.2			5.8			5.2			-7.1	%		11.0			11.0
Income from Operations	$	10.2		$	9.6		$	13.6		$	10.7		$	9.9			-2.9	%	$	20.2		$	20.6			2.0	%
Effective tax rate on
Income from Operations		35.5	%		34.8	%		34.7	%		35.1	%		34.4	%					35.2	%		34.8	%
Average equity	$	446.4		$	452.7		$	447.8		$	427.0		$	417.8					$	443.3		$	422.4
Return on average equity		9.1	%		8.4	%		12.1	%		10.0	%		9.5	%					9.1	%		9.8	%
Operating and Acquisition Expenses
Commissions	$	0.7		$	0.9		$	0.1		$	0.9		$	1.1			57.1	%	$	1.3		$	2.0			53.8	%
General and administrative expenses		23.8			24.9			24.2			22.7			23.9			0.4	%		49.2			46.6			-5.3	%
Total commissions and expenses incurred		24.5			25.8			24.3			23.6			25.0			2.0	%		50.5			48.6			-3.8	%
Less: commissions and expenses capitalized		(0.7	)		(0.7	)		(0.7	)		(0.5	)		(0.1	)		85.7	%		(1.4	)		(0.6	)		57.1	%
Amortization of DAC and VOBA		10.8			27.5			(9.3	)		4.5			13.9			28.7	%		19.6			18.4			-6.1	%
																										NM
Net Operating and Acquisition Expenses	$	34.7		$	52.7		$	14.3		$	27.6		$	38.9			12.1	%	$	68.7		$	66.5			-3.2	%
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning of period	$	848.7		$	792.4		$	753.5		$	743.4		$	747.2					$	867.0		$	743.4
Deferral		0.7			0.7			0.7			0.5			0.1						1.4			0.6
Amortization		(10.8	)		(27.5	)		9.3			(4.5	)		(13.9	)					(19.6	)		(18.4	)
Included in Total Benefits and Expenses		(10.1	)		(26.8	)		10.0			(4.0	)		(13.8	)					(18.2	)		(17.8	)
Foreign currency translation adjustment		(46.2	)		(12.1	)		(20.0	)		7.7			48.3						(56.4	)		56.1
Balance at end of period	$	792.4		$	753.5		$	743.4		$	747.2		$	781.7					$	792.4		$	781.7
Roll Forward of Deferred Front-End Load
Balance at beginning of period	$	428.3		$	399.8		$	365.8		$	363.1		$	364.5					$	437.5		$	363.1
Deferral		1.1			0.9			0.7			1.0			0.8						2.6			1.8
Amortization		(6.2	)		(29.0	)		6.0			(3.4	)		(7.6	)					(11.8	)		(11.0	)
Included in Income from Operations		(5.1	)		(28.1	)		6.7			(2.4	)		(6.9	)					(9.2	)		(9.2	)
Foreign currency translation adjustment		(23.3	)		(5.9	)		(9.5	)		3.8			23.6						(28.5	)		27.4
Balance at end of period	$	399.8		$	365.8		$	363.1		$	364.5		$	381.2					$	399.8		$	381.2

6/30/2006																			PAGE 30
Lincoln UK
Operational Data
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Unit Linked Assets
Balance-Beg-of-Period	$	7.173		$	6.903		$	7.180		$	7.320		$	7.754			8.1	%	$	7.186		$	7.320			1.9	%
Deposits		0.070			0.088			0.156			0.069			0.073			4.3	%		0.145			0.142			-2.1	%
Withdrawals (including charges) and Deaths		(0.183	)		(0.192	)		(0.178	)		(0.186	)		(0.201	)		-9.8	%		(0.357	)		(0.387	)		-8.4	%
Net Flows		(0.113	)		(0.104	)		(0.023	)		(0.118	)		(0.128	)		-13.3	%		(0.213	)		(0.245	)		-15.0	%
Investment income and change in market value		0.233			0.492			0.347			0.479			(0.267	)		NM			0.405			0.212			-47.7	%
Foreign Currency Adjustment		(0.390	)		(0.111	)		(0.184	)		0.072			0.500			228.2	%		(0.475	)		0.572			220.4	%
Unit Linked Assets - End-of-Period	$	6.903		$	7.180		$	7.320		$	7.754		$	7.857			13.8	%	$	6.903		$	7.857			13.8	%
Individual Life In-force	$	18.479		$	18.175		$	17.521		$	17.744		$	18.289			-1.0	%	$	18.479		$	18.289			-1.0	%
Exchange Rate - Dollars to Pounds
For-the-Period		1.855			1.779			1.747			1.754			1.829			-1.4	%		1.880			1.791			-4.7	%
End-of-Period		1.792			1.764			1.719			1.737			1.849			3.2	%		1.792			1.849			3.2	%

6/30/2006																			PAGE 31
Lincoln Financial Media
Income Statements
Unaudited [Millions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Results
Communications revenues, net	$	-		$	-		$	-		$	-		$	57.5			NM		$	-		$	57.5			NM
Cost of sales		-			-			-			-			7.6			NM			-			7.6			NM
Operating expenses		-			-			-			-			22.2			NM			-			22.2			NM
Broadcast cash flow		-			-			-			-			27.7			NM			-			27.7			NM
Depreciation and amortization		-			-			-			-			6.0			NM			-			6.0			NM
General and administrative expenses		-			-			-			-			1.8			NM			-			1.8			NM
Net interest expense and other		-			-			-			-			0.3			NM			-			0.3			NM
Income from operations before Federal income taxes		-			-			-			-			19.6			NM			-			19.6			NM
Federal income taxes		-			-			-			-			7.7			NM			-			7.7			NM
Income from Operations	$	-		$	-		$	-		$	-		$	11.9			NM		$	-		$	11.9			NM
Effective tax rate on
Income from Operations														39.3	%								39.3	%
Other Operations (1)
Unaudited [Millions of Dollars]
	Three Months Ended																			Six Months Ended
		Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
		2005			2005			2005			2006			2006			Change			2005			2006			Change
Operating Revenue
Earnings on investments & other income	$	60.3		$	27.0		$	10.0		$	12.9		$	48.8			-19.1	%	$	62.6		$	61.8			-1.3	%
Amortization of deferred gain on
indemnity reinsurance (2)		18.9			18.9			18.9			18.8			18.8			-0.5	%		37.9			37.5			-1.1	%
Total Operating Revenue		79.2			45.9			28.9			31.7			67.6			-14.6	%		100.4			99.3			-1.1	%
Operating Expenses
Interest on debt		21.8			21.4			21.8			21.5			64.3			195.0	%		44.0			85.8			95.0	%
Operating expenses		50.3			28.5			12.8			12.2			46.3			-8.0	%		56.8			58.5			3.0	%
Total Operating Expenses		72.2			49.9			34.6			33.7			110.6			53.2	%		100.8			144.3			43.2	%
Income (loss) from operations before Federal income taxes		7.0			(4.0	)		(5.7	)		(2.0	)		(43.1	)		NM			(0.4	)		(45.1	)		NM
Federal income taxes (3)		(22.9	)		(16.3	)		(15.4	)		(2.2	)		(17.0	)		25.8	%		(32.9	)		(19.1	)		41.9	%
Income (loss) from Operations	$	30.0		$	12.2		$	9.6		$	0.1		$	(26.1	)		NM		$	32.5		$	(26.0	)		NM
(1) Includes eliminations 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

6/30/2006																									PAGE 32
Consolidated Domestic Deposits/Account Balances
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
	2005			2005			2005			2006			2006			Change			2005			2006			Change
Deposits - For the Period
Individual Markets - Fixed Annuities	$	0.534		$	0.494		$	0.486		$	0.471		$	0.872			63.3	%	$	1.007		$	1.343			33.4	%
Individual Markets - Variable Annuities		1.327			1.410			1.513			1.665			1.877			41.4	%		2.616			3.543			35.4	%
Individual Markets - Life Insurance		0.470			0.497			0.596			0.488			1.023			117.7	%		0.938			1.511			61.1	%
Employer Markets - Fixed Annuities		0.286			0.259			0.240			0.253			0.242			-15.4	%		0.584			0.495			-15.2	%
Employer Markets - Variable Products (1)		0.746			0.726			0.865			0.987			0.918			23.1	%		1.729			1.905			10.2	%
Employer Markets - Executive Benefits & Other		0.056			0.057			0.052			0.047			0.077			37.5	%		0.101			0.124			22.8	%
Inv Mgmt - Annuities		0.701			0.642			0.713			0.885			0.869			24.0	%		1.414			1.754			24.0	%
Inv Mgmt - Mutual Funds		1.487			1.331			1.657			1.329			1.370			-7.9	%		3.007			2.699			-10.2	%
Inv Mgmt - Managed Acct. & Other		2.146			1.599			1.260			1.806			1.043			-51.4	%		3.479			2.849			-18.1	%
Consolidating Adjustments		(0.670	)		(0.624	)		(0.617	)		(0.481	)		(0.773	)		-15.4	%		(1.193	)		(1.254	)		-5.1	%
Total Gross Retail Deposits		7.085			6.391			6.763			7.449			7.519			6.1	%		13.681			14.968			9.4	%
Inv Mgmt - Institutional		6.110			3.166			4.833			5.044			2.764			-54.8	%		8.303			7.808			-6.0	%
Consolidating Adjustments		(0.173	)		(0.217	)		(0.265	)		(0.257	)		(0.365	)		NM			(0.548	)		(0.623	)		-13.7	%
Total Gross Deposits	$	13.023		$	9.340		$	11.331		$	12.236		$	9.917			-23.9	%	$	21.436		$	22.153			3.3	%
Account Balances - End of Period
Individual Markets - Fixed Annuities	$	9.165		$	9.117		$	8.605		$	8.359		$	17.526			91.2	%	$	9.165		$	17.526			91.2	%
Individual Markets - Variable Annuities		32.801			35.276			37.662			40.501			41.543			26.7	%		32.801			41.543			26.7	%
Individual Markets - Life Insurance		13.496			13.745			14.051			14.268			25.479			88.8	%		13.496			25.479			88.8	%
Employer Markets - Fixed Annuities		10.710			10.686			10.995			11.028			11.054			3.2	%		10.710			11.054			3.2	%
Employer Markets - Variable Products (1)		18.080			18.965			19.474			20.703			20.471			13.2	%		18.080			20.471			13.2	%
Employer Markets - Executive Benefits & Other		1.194			1.256			1.318			1.387			4.228			254.1	%		1.194			4.228			254.1	%
Inv Mgmt - Annuities		12.500			13.022			13.287			13.998			13.577			8.6	%		12.500			13.577			8.6	%
Inv Mgmt - Mutual Funds		14.929			15.738			16.231			17.101			16.654			11.6	%		14.929			16.654			11.6	%
Inv Mgmt - Managed Acct. & Other		9.392			11.599			12.839			15.162			15.812			68.4	%		9.392			15.812			68.4	%
Consolidating Adjustments		(11.790	)		(12.229	)		(12.602	)		(13.282	)		(13.057	)		-10.7	%		(11.790	)		(13.057	)		-10.7	%
Total Retail Account Balances		110.476			117.175			121.859			129.225			153.286			38.8	%		110.476			153.286			38.8	%
Inv Mgmt - Institutional		30.031			32.915			35.276			40.167			39.883			32.8	%		30.031			39.883			32.8	%
Consolidating Adjustments		(3.405	)		(3.559	)		(3.422	)		(3.573	)		(3.557	)		-4.5	%		(3.405	)		(3.557	)		-4.5	%
Total Account Balances	$	137.102		$	146.530		$	153.712		$	165.820		$	189.613			38.3	%	$	137.102		$	189.613			38.3	%
Total Domestic Net Flows
Unaudited [Billions of Dollars]
	Three Months Ended																		Six Months Ended
	Jun			Sep			Dec			Mar			Jun			%			Jun			Jun			%
For the Period Ended	2005			2005			2005			2006			2006			Change			2005			2006			Change
Individual Markets - Life	$	0.263		$	0.295		$	0.400		$	0.257		$	0.548			108.4	%	$	0.500		$	0.805			61.0	%
Individual Markets - Annuities		0.748			0.717			0.767			0.769			0.844			12.8	%		1.392			1.613			15.9	%
Employer Markets - Retirement Products		0.181			0.028			(0.026	)		0.181			0.114			-37.0	%		0.418			0.295			-29.4	%
Employer Markets - Executive Benefits & Other		0.045			0.042			0.049			0.039			0.035			-22.2	%		0.070			0.075			7.1	%
Investment Management - Retail		2.147			1.720			1.148			1.305			0.322			-85.0	%		3.574			1.627			-54.5	%
Consolidating Adjustments		0.090			(0.053	)		0.015			0.083			(0.009	)		NM			0.089			0.074			-16.9	%
Total Retail Net Flows		3.476			2.749			2.354			2.635			1.854			-46.7	%		6.041			4.489			-25.7	%
Investment Management - Institutional		3.875			1.825			1.733			3.592			0.687			-82.3	%		5.220			4.279			-18.0	%
Consolidating Adjustments		0.098			(0.050	)		0.198			(0.039	)		(0.047	)		NM			(0.025	)		(0.086	)		NM
Total Net Flows	$	7.449		$	4.524		$	4.285		$	6.188		$	2.494			-66.5	%	$	11.236		$	8.682			-22.7	%

(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.

6/30/2006									PAGE 33
Consolidated Investment Data - Assets Managed
Unaudited [Billions of Dollars]
	As of
	Jun		Sep		Dec		Mar		Jun		%
	2005		2005		2005		2006		2006		Change
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	34.975	$	34.325	$	33.443	$	32.893	$	54.024		54.5	%
Equity securities - available for sale		0.155		0.152		0.145		0.176		0.579		273.5	%
Trading securities		3.345		3.287		3.246		3.190		3.109		-7.1	%
Other investments		6.389		6.322		6.334		6.314		12.003		87.9	%
Total LNC Investments		44.863		44.085		43.168		42.573		69.714		55.4	%
Separate accounts		57.240		60.812		63.747		67.984		71.095		24.2	%
Cash and invested cash		1.659		1.602		2.312		1.974		1.500		-9.6	%
Total LNC		103.762		106.498		109.227		112.531		142.309		37.1	%
Non-affiliate assets managed		52.643		58.446		62.528		70.464		70.185		33.3	%
Total Assets Managed	$	156.405	$	164.944	$	171.755	$	182.995	$	212.495		35.9	%
Assets Managed by Advisor
Investment Management segment
(See page 28 for additional detail)	$	66.851	$	73.274	$	77.633	$	86.428	$	85.926		28.5	%
DLIA-Corp
(Assets managed internally-see page 28)		43.917		43.095		43.086		41.995		65.637		49.5	%
Lincoln UK		8.278		8.518		8.562		8.986		9.171		10.8	%
Domestic Policy Loans (excluding Lincoln UK)		1.862		1.851		1.858		1.856		2.712		45.6	%
Non-LNC Affiliates		35.497		38.205		40.617		43.729		49.049		38.2	%
Total Assets Managed	$	156.405	$	164.944	$	171.755	$	182.995	$	212.495		35.9	%

6/30/066													PAGE 34
Consolidated Investment Data
Unaudited [Millions of Dollars]
	Three Months Ended
	Jun			Sep			Dec			Mar			Jun			%
	2005			2005			2005			2006			2006			Change
Net Investment Income
Fixed maturity AFS securities	$	509.8		$	505.7		$	509.7		$	513.7		$	829.0			62.6	%
Equity AFS securities		2.0			2.4			3.3			2.1			8.6			NM
Trading securities		48.8			48.6			48.7			49.7			49.4			1.2	%
Mortgage loans on real estate		70.7			70.9			75.1			67.2			135.0			90.9	%
Real estate		31.7			8.5			5.6			9.1			13.2			-58.4	%
Policy loans		29.8			29.8			29.2			29.7			42.5			42.6	%
Invested cash		14.0			17.0			19.2			22.8			22.2			58.6	%
Other investments		24.2			16.4			7.0			14.6			10.2			-57.9	%
Investment revenue		731.1			699.3			697.9			708.8			1,110.1			51.8	%
Investment expense		(27.5	)		(28.5	)		(29.8	)		(30.4	)		(41.9	)		-52.4	%
Net Investment Income	$	703.6		$	670.8		$	668.1		$	678.3		$	1,068.2			51.8	%
Mean Invested Assets (Amortized Cost)	$	43,806.2		$	44,040.1		$	44,035.2		$	44,363.6		$	70,933.3
Ratio of Net Invest Income
Over Mean Invested Assets		6.42	%		6.09	%		6.07	%		6.12	%		6.02	%
	Three Months Ended
		Jun			Sep			Dec			Mar			Jun			%
Realized Investment Gains (Losses)		2005			2005			2005			2006			2006			Change
Fixed maturities	$	13.9		$	8.2		$	(5.6	)	$	4.3		$	8.2			-41.0	%
Equity securities		5.7			(0.6	)		2.2			0.3			(1.1	)		NM
Other gains (losses), net		(2.7	)		5.4			6.3			(0.1	)		6.3			NM
Policyholders' interest		0.3			0.7			(1.3	)		(1.8	)		(1.4	)		NM
Capital gains expense		(2.4	)		(2.4	)		(2.3	)		(2.4	)		-			NM
Sale of affiliate		-			-			-			-			-			NM
Total pretax gains (losses)		14.7			11.3			(0.8	)		0.3			12.0			-18.4	%
Amortization of DAC, VOBA and deferred
sales inducements		(15.3	)		(14.0	)		(8.8	)		(10.8	)		(18.9	)		-23.5	%
Income taxes		(0.4	)		(0.7	)		(3.3	)		(3.3	)		(2.9	)		NM
Realized investment gains (losses), net of taxes	$	(0.2	)	$	(2.0	)	$	(6.2	)	$	(7.2	)	$	(4.0	)		NM
				As of June 30, 2006									As of Dec 31, 2005
				Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities [Millions of Dollars]
Fixed Maturity Sec (Fair Value)				$	57,131.0			99.0	%				$	36,687.1			99.6	%
Fixed Maturity Sec (Amortized Cost)					57,435.1			99.0	%					35,347.6			99.6	%
Equity Securities (Fair Value)					580.6			1.0	%					146.9			0.4	%
Equity Securities (Amortized Cost)					570.8			1.0	%					139.0			0.4	%
% of Available-for-Sale Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA								19.4	%								23.4	%
AA or better								27.1	%								30.9	%
BB or less								7.0	%								7.4	%
General Account Investments				As of June 30, 2006									As of Dec 31, 2005
				Amount			% of Total						Amount			% of Total
Fixed maturities- security sector:
Corporate bonds				$	43,881.6			81.3	%				$	25,860.7			77.3	%
U.S. government bonds					287.6			0.5	%					161.8			0.5	%
Foreign government bonds					1,188.0			2.2	%					1,203.3			3.6	%
Mortgage backed securities					8,370.3			15.5	%					5,951.2			17.8	%
State and municipal bonds					166.5			0.3	%					128.8			0.4	%
Preferred stocks - redeemable					130.1			0.2	%					137.4			0.4	%
Total				$	54,024.1			100.0	%				$	33,443.2			100.0	%
	As of
		Jun			Sep			Dec			Mar			Jun			%
		2005			2005			2005			2006			2006			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed Maturity	$	34,975.1		$	34,324.9		$	33,443.2		$	32,892.8		$	54,024.1			54.5	%
Equity		154.5			151.6			144.7			176.0			578.5			274.4	%
Trading securities		3,345.1			3,287.0			3,246.0			3,190.1			3,109.0			-7.1	%
Mortgage loans on real estate & real estate		3,960.4			3,892.8			3,845.3			3,766.5			8,169.7			106.3	%
Policy loans		1,866.9			1,856.4			1,862.2			1,860.4			2,716.4			45.5	%
Derivative Investments		156.6			155.9			174.7			199.3			279.6			78.5	%
Other investments		404.8			416.4			452.2			488.2			837.0			106.8	%
Total	$	44,863.3		$	44,085.0		$	43,168.4		$	42,573.2		$	69,714.4			55.4	%