Exhibit 99.2

Lincoln Statistical Report

......................................Fourth Q U A R T E R...............

2006

The financial data in this document is dated February 6, 2007 and has not been updated since that date. LNC does not intend to update this document.

Lincoln Financial Group
Statistical Report
Fourth 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 Roll Forward	16
Individual Annuities
Income Statements & Operational Data	17
Account Value Roll Forward	18
Account Values	19

Employer Markets
Defined Contribution
Income Statements & Operational Data	20
Account Value Roll Forward	21
Supplemental Data	22
Executive Benefits
Income Statements & Operational Data	23
Account Value Roll Forward and Supplemental Data	24
Group Protection
Income Statements & Operational Data	25
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 Deposits / Account Balances / Net Flows	32

Investment Data
Assets Managed	33
Other Investment Data	34

12/31/2006			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, Employer Markets - Group Protection, 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 "Station Operating Income" are non-GAAP financial measures and do not replace GAAP revenue and net income (loss). 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, and
		* 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, and
		* 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 annualized 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.

*	Station operating income is calculated as communications revenues less operating costs and expenses before depreciation and amortization.

Income from operations, operating revenue, return on capital, and station operating income 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, spreads, 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
		* Group Protection - 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.

*	Commissions and general & administrative expenses - we reclassified certain distribution expenses to commissions which had previously been reported in general & administrative expenses. This change impacted the Individual Markets Life segment and is also reflected in our consolidated presentation.

*	We made several reclassifications within our Other Operations income statement to separately present intersegment eliminations affecting revenues and expenses and we have also disclosed some additional line items. These changes were incorporated into all pages that reference Other Operations.

12/31/2006																									PAGE 1
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]



	For the Quarter Ended December 31												For the Year Ended December 31
	2006			2005									2006			2005
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
*Income from Operations - By Segment*
Individual Life Insurance	$	157.4		$	73.8		$	83.6			113.3	%	$	496.3		$	259.5		$	236.8			91.3	%
Individual Annuities		123.8			70.9			52.9			74.6	%		408.5			252.0			156.5			62.1	%
Individual Markets		281.1			144.7			136.4			94.3	%		904.7			511.5			393.2			76.9	%
Defined Contribution		44.6			45.2			(0.6	)		-1.3	%		203.8			187.1			16.7			8.9	%
Executive Benefits		12.7			9.5			3.2			33.7	%		49.2			19.6			29.6			151.0	%
Group Protection		33.2			-			33.2			NM			99.0			-			99.0			NM
Employer Markets		90.5			54.7			35.8			65.4	%		352.0			206.7			145.3			70.3	%
Investment Management		14.4			8.9			5.5			61.8	%		55.1			16.8			38.3			228.0	%
Lincoln UK		9.9			13.6			(3.7	)		-27.2	%		38.9			43.3			(4.4	)		-10.2	%
Lincoln Financial Media		17.5			-			17.5			NM			44.0			-			44.0			NM
Other Operations		(38.4	)		9.6			(48.0	)		NM			(75.8	)		54.3			(130.1	)		NM
*Total Income from Operations* ⁽¹⁾		375.2			231.4			143.8			62.1	%		1,319.0			832.7			486.3			58.4	%

Realized gains (losses)		9.4			(6.1	)		15.5			254.1	%		(2.6	)		(14.6	)		12.0			82.2	%
Net gain (loss) on reinsurance
derivative/trading account securities		0.1			-			0.1			NM			2.0			3.0			(1.0	)		-33.3	%
Gain on sale of subsidiaries/ businesses		-			-			-			NM			-			9.3			(9.3	)		-100.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2			-			-			0.9			0.8			0.1			12.5	%
Loss on early retirement of subordinated debt		(3.6	)		-			(3.6	)		NM			(3.6	)		-			(3.6	)		NM
*Net Income*	$	381.3		$	225.4		$	155.9			69.2	%	$	1,315.6		$	831.1		$	484.5			58.3	%

*Earnings per share (diluted)*

*Income from Operations* ⁽¹⁾	$	1.34		$	1.31		$	0.03			2.3	%	$	5.14		$	4.73		$	0.41			8.7	%
Realized losses		0.03			(0.03	)		0.06			200.0	%		(0.01	)		(0.08	)		0.07			87.5	%
Net gain (loss) on reinsurance
derivative/trading account securities		-			-			-			NM			0.01			0.02			(0.01	)		-50.0	%
Gain on sale of subsidiaries/ businesses		-			-			-			NM			-			0.05			(0.05	)		-100.0	%
Reserve development/ amortization of related deferred gain		-			-			-			NM			-			-			-			NM
Loss on early retirement of subordinated debt		(0.01	)		-			(0.01	)		NM			(0.01	)		-			(0.01	)		NM
*Net Income*	$	1.36		$	1.28		$	0.08			6.3	%	$	5.13		$	4.72		$	0.41			8.7	%



*Operating Revenue- By Segment*
Individual Life Insurance	$	958.4		$	501.1		$	457.3			91.3	%	$	3,255.8		$	1,910.6		$	1,345.2			70.4	%
Individual Annuities		637.3			372.1			265.2			71.3	%		2,161.3			1,422.5			738.8			51.9	%
Individual Markets		1,595.7			873.2			722.5			82.7	%		5,417.1			3,333.1			2,084.0			62.5	%
Defined Contribution		245.0			241.2			3.8			1.6	%		988.0			947.5			40.5			4.3	%
Executive Benefits		109.1			61.6			47.5			77.1	%		371.8			227.4			144.4			63.5	%
Group Protection		344.8			-			344.8			NM			1,031.8			-			1,031.8			NM
Employer Markets		698.9			302.8			396.1			130.8	%		2,391.6			1,174.9			1,216.7			103.6	%
Investment Management		148.9			127.9			21.0			16.4	%		563.5			475.3			88.2			18.6	%
Lincoln UK		84.8			62.6			22.2			35.5	%		308.0			318.4			(10.4	)		-3.3	%
Lincoln Financial Media		70.2			-			70.2			NM			187.8			-			187.8			NM
Other Operations		45.6			28.9			16.7			57.8	%		196.4			175.2			21.2			12.1	%
*Total Operating Revenue*		2,644.2			1,395.4			1,248.8			89.5	%		9,064.3			5,476.8			3,587.5			65.5	%

Realized losses		12.8			(9.3	)		22.1			237.6	%		(6.7	)		(22.1	)		15.4			69.7	%
Gain (loss) on reinsurance
derivative/trading account securities		1.2			-			1.2			NM			4.1			4.6			(0.5	)		-10.9	%
Gain on sale of subsidiaries/ businesses		-			-			-			NM			-			14.2			(14.2	)		-100.0	%
Amortization of deferred gain-reserve development		0.3			0.3			-			-			1.3			1.2			0.1			8.3	%
*Total Revenue*	$	2,658.4		$	1,386.4		$	1,272.0			91.7	%	$	9,062.9		$	5,474.8		$	3,588.1			65.5	%

⁽¹⁾ Income from operations includes after-tax restructuring charges of $2.1 million, or 1 cent per share, and $1.1 million, or 1 cent per share, for the quarters ended December 31, 2006 and 2005, respectively, and $9.3 million, or 4 cents per share, and $19.0 million, or 11 cents per share, for the full year ended December 31, 2006 and 2005, respectively.

12/31/2006																					PAGE 2
*Financial Highlights*
Unaudited [in Billions]


*Operational Data by Segment*	For the Quarter Ended December 31												For the Year Ended December 31
	2006			2005									2006			2005
	Amount			Amount			Change			% Change			Amount			Amount		Change			% Change

*Individual Markets*
Individual Annuities
Gross deposits	$	3.161		$	1.999		$	1.161			58.1	%	$	10.756		$	7.526	$	3.230			42.9	%
Net flows		0.892			0.767			0.125			16.3	%		2.665			2.876		(0.211	)		-7.3	%
Account values (gross)		66.714			48.495			18.219			37.6	%		66.714			48.495		18.219			37.6	%
Account values (net of reinsurance)		64.902			46.262			18.640			40.3	%		64.902			46.262		18.640			40.3	%
Individual Life Insurance
Sales (in millions) ⁽¹⁾		218.1			90.7			127.4			140.5	%		570.8			303.2		267.6			88.3	%
Life insurance in-force		501.376			316.641			184.736			58.3	%		501.376			316.641		184.736			58.3	%
Account values		26.490			14.051			12.439			88.5	%		26.490			14.051		12.439			88.5	%
*Employer Markets*
Defined Contribution
Gross deposits ⁽²⁾	$	1.099		$	1.078		$	0.021			1.9	%	$	4.585		$	4.403	$	0.182			4.1	%
Net flows		0.010			(0.026	)		0.036			138.5	%		0.342			0.419		(0.078	)		-18.6	%
Account values - annuities		28.482			26.701			1.781			6.7	%		28.482			26.701		1.781			6.7	%
Alliance Mutual Funds		5.175			3.772			1.403			37.2	%		5.175			3.772		1.403			37.2	%
Account values including Alliance Mutual Funds		33.656			30.473			3.184			10.4	%		33.656			30.473		3.184			10.4	%
Executive Benefits
COLI/BOLI sales (in millions)		32.5			11.1			21.4			192.8	%		82.9			49.8		33.1			66.5	%
Life insurance in-force		15.645			7.729			7.917			102.4	%		15.645			7.729		7.917			102.4	%
Account values		4.305			1.318			2.987			226.6	%		4.305			1.318		2.987			226.6	%
Group Protection
Annualized sales (in millions)		113.1			-			113.1			NM			208.7			-		208.7			NM
Loss ratio⁽³⁾		69.1	%		-			NM			NM			67.4	%		-		NM			NM
*Investment Management Segment*
Retail deposits	$	3.192		$	3.629		$	(0.437	)		-12.0	%	$	12.991		$	15.101	$	(2.110	)		-14.0	%
Retail net flows		(0.140	)		1.148			(1.288	)		NM			1.187			6.442		(5.255	)		-81.6	%
Institutional in-flows		4.888			4.833			0.055			1.1	%		15.102			16.302		(1.200	)		-7.4	%
Institutional net flows		2.666			1.733			0.934			53.9	%		7.991			8.778		(0.787	)		-9.0	%
Total Deposits and In-flows		8.080			8.462			(0.382	)		-4.5	%		28.093			31.403		(3.310	)		-10.5	%
Total Net Flows		2.526			2.881			(0.354	)		-12.3	%		9.177			15.220		(6.043	)		-39.7	%
Assets Under Management- Retail and Institutional		97.307			77.633			19.674			25.3	%		97.307			77.633		19.674			25.3	%
Assets Under Management - General Account		67.066			43.086			23.981			55.7	%		67.066			43.086		23.981			55.7	%
Assets Under Management - Total Segment		164.373			120.719			43.654			36.2	%		164.373			120.719		43.654			36.2	%
*Consolidated*
Domestic Retail Deposits	$	7.805		$	6.737		$	1.068			15.9	%	$	29.060		$	26.835	$	2.225			8.3	%
Domestic Retail Account Balances		165.287			121.858			43.428			35.6	%		165.287			121.858		43.428			35.6	%
Domestic Retail Net Flows		1.390			2.354			(0.964	)		-41.0	%		6.266			11.144		(4.878	)		-43.8	%
Domestic Deposits		12.584			11.305			1.279			11.3	%		43.229			42.107		1.121			2.7	%
Domestic Net Flows		4.125			4.285			(0.160	)		-3.7	%		14.378			20.045		(5.666	)		-28.3	%
Assets Under Management		233.523			171.755			61.768			36.0	%		233.523			171.755		61.768			36.0	%

⁽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.

12/31/2006																							PAGE 3
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]


	For the Quarter Ended December 31											For the Year Ended December 31
	2006 Amount			2005 Amount			Change		% Change			2006 Amount			2005 Amount			Change		% Change

*Balance Sheet Assets - End of Period*	$	178,493.7		$	124,859.6		$	53,634.2		43.0	%	$	178,493.7		$	124,859.6		$	53,634.2		43.0	%

*Shareholders' Equity*
Beg of period (including AOCI)	$	12,043.2		$	6,284.4		$	5,758.7				$	6,384.4		$	6,175.6		$	208.8
End of period (including AOCI)		12,201.0			6,384.4			5,816.6					12,201.0			6,384.4			5,816.6
End of period (excluding AOCI)		11,587.9			5,856.6			5,731.3					11,587.9			5,856.6			5,731.3
Average equity (excluding AOCI)		11,512.0			5,760.0			5,751.9					10,054.0			5,507.1			4,546.9

Return on Equity
Net income/average equity (excluding AOCI)		13.2	%		15.7	%							13.1	%		15.1	%
Inc from operations/average equity (excluding AOCI)		13.0	%		16.1	%							13.1	%		15.1	%

*Return on Capital*
Inc from operations/average capital		10.6	%		13.6	%							10.7	%		12.6	%

*Common Stock Outstanding*
Average for the period - diluted		280.4			176.6			103.8		58.8	%		256.2			176.1			80.0		45.4	%
End of period - assuming conv of preferreds		276.0			174.0			101.9		58.6	%		276.0			174.0			101.9		58.6	%
End of period - diluted		280.2			176.9			103.3		58.4	%		280.2			176.9			103.3		58.4	%

Book value (including AOCI)	$	44.21		$	36.69		$	7.52		20.5	%	$	44.21		$	36.69		$	7.52		20.5	%
Book value (excluding AOCI)	$	41.99		$	33.66		$	8.34		24.8	%	$	41.99		$	33.66		$	8.34		24.8	%

*Cash Returned to Shareholders*
Share repurchase - dollar amount	$	150.0		$	-		$	150.0				$	1,002.5		$	103.6		$	898.9
Dividends declared to shareholders		108.9			66.6			42.3					428.6			257.7			170.8
*Total Cash Returned to Shareholders*	$	258.9		$	66.6		$	192.3				$	1,431.1		$	361.3		$	1,069.8

Share repurchase - number of shares		2.504			-			2.504					16.877			2.331			14.546
Dividend declared on common stock - per share	$	0.395		$	0.380		$	0.015		3.9	%	$	1.535		$	1.475		$	0.060		4.1	%
Dividend payout ratio ⁽¹⁾		29.0	%		29.7	%							29.9	%		31.3	%
Annualized yield⁽²⁾		2.4	%		2.9	%							2.3	%		2.8	%

*Comprehensive Income (Loss)*
Net income	$	381.3		$	225.4							$	1,315.6		$	831.1
Net unrealized gains (losses) on securities		(8.4	)		(72.4	)							(27.0	)		(326.3	)
Gains (losses) on derivatives		6.5			(1.5	)							55.1			(6.7	)
Foreign currency translation		28.7			(16.1	)							81.7			(70.9	)
Minimum pension liability adjustment		63.2			(2.9	)							59.5			1.0
Adjustment to initially apply SFAS 158 ⁽⁴⁾		(84.0	)		-								(84.0	)		-
*Comprehensive Income*	$	387.3		$	132.4							$	1,400.9		$	428.2

*Ratios:*
Debt to total capitalization ⁽³⁾		21.1	%		19.9	%							21.1	%		19.9	%
Debt to equity⁽³⁾		26.7	%		24.8	%							26.7	%		24.8	%


Ratings as of February 5, 2007:
		A.M. Best			Fitch			Moody's		Standard & 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.
^[4]SFAS 158 was adopted effective December 31, 2006 which requires the disclosure of the funded status of our pension and post-retirement benefit plans on the balance sheet.

12/31/2006																		PAGE 4
*Combined Production Data* ⁽¹⁾
Unaudited [in Billions]


	Three Months Ended													Year Ended
	Dec.		March		June		Sept.		Dec.		%			Dec.		Dec.		%
	2005		2006		2006		2006		2006		Change			2005		2006		Change
Individual Markets
Individual Life Insurance
Sales by Product (millions)
Universal Life
Excluding MoneyGuard	$	117.2	$	83.4	$	97.5	$	119.9	$	177.6		51.5	%	$	422.8	$	478.3		13.1	%
MoneyGuard		9.4		7.7		7.5		8.3		7.8		-17.0	%		33.9		31.3		-7.7	%
Total		126.5		91.1		105.0		128.2		185.4		46.6	%		456.7		509.6		11.6	%
Variable universal life		20.6		16.4		15.7		13.0		22.1		7.3	%		70.4		67.2		-4.5	%
Whole life		0.9		1.2		0.4		0.7		0.6		-33.3	%		3.8		2.9		-23.7	%
Term		10.7		11.2		11.3		10.7		10.0		-6.5	%		41.4		43.1		4.1	%
*Total Sales by Product*	$	158.7	$	120.0	$	132.3	$	152.5	$	218.1		37.4	%	$	572.3	$	622.9		8.8	%

Individual Annuity Deposits
Fixed	$	0.567	$	0.560	$	0.644	$	0.818	$	0.855		50.8	%	$	2.345	$	2.878		22.7	%
Variable		1.533		1.666		1.867		1.658		2.061		34.4	%		5.596		7.252		29.6	%
Indexed annuities		0.178		0.173		0.228		0.244		0.245		37.6	%		0.788		0.890		12.9	%
*Total Individual Annuities*	$	2.278	$	2.399	$	2.739	$	2.720	$	3.161		38.8	%	$	8.728	$	11.018		26.2	%

Employer Markets
Defined Contribution
Fixed	$	0.240	$	0.253	$	0.242	$	0.268	$	0.183		-23.8	%	$	1.083	$	0.946		-12.7	%
Variable		0.616		0.669		0.714		0.583		0.559		-9.3	%		2.254		2.525		12.0	%
		0.856		0.923		0.955		0.851		0.742		-13.3	%		3.337		3.471		4.0	%
Alliance Mutual Funds Deposits		0.223		0.318		0.204		0.235		0.357		60.1	%		1.066		1.113		4.4	%
*Total Annuity and Alliance Mutual Funds*	$	1.078	$	1.241	$	1.159	$	1.086	$	1.099		1.9	%	$	4.403	$	4.585		4.1	%

Executive Benefits
COLI/BOLI sales (millions)	$	12.7	$	17.5	$	17.2	$	16.3	$	32.5		155.9	%	$	52.4	$	83.5		59.4	%

Group Protection
Annualized Sales (millions)
Life	$	29.4	$	23.6	$	15.3	$	19.4	$	43.1		46.6	%	$	86.7	$	101.4		17.0	%
Disability		44.5		34.2		22.9		24.7		56.9		27.9	%		141.0		138.7		-1.6	%
Dental		6.9		6.2		7.1		6.1		13.1		89.9	%		33.7		32.6		-3.3	%

Investment Management
Sales and Inflows
Retail
Annuities	$	0.713	$	0.885	$	0.869	$	0.960	$	0.932		30.7	%	$	2.768	$	3.647		31.8	%
Mutual funds		1.657		1.329		1.370		1.151		1.768		6.7	%		5.994		5.617		-6.3	%
Managed accounts & other		1.260		1.806		1.043		0.386		0.493		-60.9	%		6.339		3.728		-41.2	%
		3.629		4.019		3.282		2.497		3.192		-12.0	%		15.101		12.991		-14.0	%
Institutional		4.833		5.044		2.764		2.406		4.888		1.1	%		16.302		15.102		-7.4	%
*Total Sales and Inflows*	$	8.462	$	9.063	$	6.046	$	4.904	$	8.080		-4.5	%	$	31.403	$	28.093		-10.5	%


Total Annuity & Alliance
Mutual Fund Deposits
Fixed Annuities
Individual	$	0.745	$	0.733	$	0.872	$	1.062	$	1.100		47.7	%	$	3.133	$	3.767		20.2	%
Employer Markets		0.240		0.253		0.242		0.268		0.183		-23.8	%		1.083		0.946		-12.7	%
		0.985		0.986		1.114		1.330		1.283		30.3	%		4.215		4.713		11.8	%
Variable Annuities
Individual		1.533		1.666		1.867		1.658		2.061		34.4	%		5.596		7.252		29.6	%
Employer Markets		0.616		0.669		0.714		0.583		0.559		-9.3	%		2.254		2.525		12.0	%
		2.148		2.335		2.581		2.241		2.619		21.9	%		7.850		9.777		24.5	%
Total Annuities		3.134		3.322		3.695		3.571		3.903		24.5	%		12.065		14.491		20.1	%
Alliance Mutual Funds		0.223		0.318		0.204		0.235		0.357		60.1	%		1.066		1.113		4.4	%
Total Annuity and Alliance Mutual Funds	$	3.356	$	3.640	$	3.898	$	3.806	$	4.259		26.9	%	$	13.131	$	15.604		18.8	%

⁽¹⁾ This schedule combines the previously reported data for LNC and JP and does not reflect any adjustments that may have resulted had the April 4, 2006 merger been completed prior to the periods presented.

12/31/2006																									PAGE 5
*Consolidated Expense Detail*
Unaudited (In Millions)


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change

Commissions	$	216.4		$	212.9		$	362.0		$	382.6		$	464.7			114.7	%	$	790.3		$	1,422.2			80.0	%

General and administrative expenses:
General and administrative expenses		313.7			287.7			374.1			400.6			434.4			38.5	%		1,250.8			1,496.8			19.7	%
Merger-related expenses		-			-			7.4			12.1			15.8			NM			-			35.3			NM
Total general and administrative expenses
excluding Broker/Dealer		313.7			287.7			381.5			412.7			450.2			43.5	%		1,250.8			1,532.1			22.5	%

Restructuring charges		1.5			0.3			9.6			1.0			3.3			120.0	%		29.3			14.2			-51.5	%
Taxes, licenses and fees		17.3			33.5			47.3			50.3			48.0			177.5	%		95.5			179.2			87.6	%
Interest ⁽¹⁾		21.8			21.7			65.0			67.3			70.4			222.9	%		87.2			224.4			157.3	%
Total commissions and expenses incurred		570.7			556.1			865.4			914.0			1,036.6			81.6	%		2,253.0			3,372.1			49.7	%

Less: commissions and expenses capitalized		(263.0	)		(244.5	)		(391.6	)		(424.3	)		(517.9	)		-96.9	%		(937.6	)		(1,578.5	)		-68.4	%

Amortization:
DAC/VOBA Amortization		144.8			165.0			222.2			225.9			278.5			92.3	%		540.7			891.7			64.9	%
Amortization of intangibles		2.0			2.0			6.6			3.1			4.4			120.0	%		7.8			16.0			105.1	%
Total amortization		146.8			167.0			228.7			229.0			282.8			92.6	%		548.5			907.5			65.5	%

Broker/Dealer commissions and G&A		54.2			46.6			79.3			76.6			80.0			47.6	%		204.3			282.5			38.3	%

Total	$	508.8		$	525.1		$	781.9		$	795.3		$	881.5			73.3	%	$	2,068.1		$	2,983.8			44.3	%


Merger-related expenses:⁽²⁾
Severance and employee-related charges	$	-		$	-		$	12.8		$	8.4		$	6.2			NM		$	-		$	27.4			NM
Systems integration and related expenses		-			-			0.8			1.5			5.4			NM			-			7.7			NM
Other expenses		-			-			3.1			3.2			7.5			NM			-			13.8			NM
Total merger-related expenses	$	-		$	-		$	16.7		$	13.1		$	19.1			NM		$	-		$	48.9			NM

Note: The Consolidated Expense Detail data is presented on a GAAP basis.

⁽¹⁾ Interest expense for the fourth quarter and full year 2006 includes $5.6 million related to losses on early extinguishment of debt.

⁽²⁾ Represents merger-related expenses included in general and administrative expenses and restructuring charges.

12/31/2006																									PAGE 6
*Operating Results Summary*
Unaudited [Millions of Dollars, except Common Share Data]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Revenue*
Individual Life Insurance	$	501.1		$	500.6		$	901.4		$	895.3		$	958.4			91.3	%	$	1,910.6		$	3,255.8			70.4	%
Individual Annuities		372.1			374.8			552.6			596.5			637.3			71.3	%		1,422.5			2,161.3			51.9	%
Individual Markets		873.2			875.4			1,454.0			1,491.8			1,595.7			82.7	%		3,333.1			5,417.1			62.5	%
Defined Contribution		241.2			249.2			248.9			245.1			245.0			1.6	%		947.5			988.0			4.3	%
Executive Benefits		61.6			57.2			101.2			104.3			109.1			77.1	%		227.4			371.8			63.5	%
Group Protection		-			-			354.9			332.1			344.8			NM			-			1,031.8			NM
Employer Markets		302.8			306.4			704.9			681.5			698.9			130.8	%		1,174.9			2,391.6			103.6	%
Investment Management		127.9			139.6			134.7			140.4			148.9			16.4	%		475.3			563.5			18.6	%
Lincoln UK		62.6			69.5			81.4			72.3			84.8			35.5	%		318.4			308.0			-3.3	%
Lincoln Financial Media		-			-			57.7			60.0			70.2			NM			-			187.8			NM
Other Operations		28.9			31.7			67.6			51.4			45.6			57.8	%		175.2			196.4			12.1	%
*Total Operating Revenue*		1,395.4			1,422.6			2,500.3			2,497.4			2,644.2			89.5	%		5,476.8			9,064.3			65.5	%
																				-			-
Realized gains (losses) on investments and derivatives		(9.3	)		(6.9	)		(6.7	)		(5.8	)		12.8			237.6	%		(22.1	)		(6.7	)		69.7	%
Net gain (loss) on reinsurance
derivative/trading account securities		-			5.9			1.8			(4.7	)		1.2			NM			4.6			4.1			-10.9	%
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						1.2			1.3			8.3	%
*Total Revenue*	$	1,386.4		$	1,421.8		$	2,495.6		$	2,487.2		$	2,658.4			91.7	%	$	5,474.8		$	9,062.9			65.5	%

*Income from Operations* ⁽¹⁾
Individual Life Insurance	$	73.8		$	69.0		$	147.1		$	122.8		$	157.4			113.3	%	$	259.5		$	496.3			91.3	%
Individual Annuities		70.9			66.4			89.0			129.4			123.8			74.6	%		252.0			408.5			62.1	%
Individual Markets		144.7			135.4			236.1			252.2			281.1			94.3	%		511.5			904.7			76.9	%
Defined Contribution		45.2			52.5			54.3			52.5			44.6			-1.3	%		187.1			203.8			8.9	%
Executive Benefits		9.5			7.5			16.2			12.8			12.7			33.7	%		19.6			49.2			151.0	%
Group Protection		-			-			37.0			28.8			33.2			NM			-			99.0			NM
Employer Markets		54.7			60.0			107.6			94.0			90.5			65.4	%		206.7			352.0			70.3	%
Investment Management		8.9			15.3			12.0			13.4			14.4			61.8	%		16.8			55.1			228.0	%
Lincoln UK		13.6			10.7			9.9			8.3			9.9			-27.2	%		43.3			38.9			-10.2	%
Lincoln Financial Media		-			-			11.9			14.6			17.5			NM			-			44.0			NM
Other Operations		9.6			0.1			(26.1	)		(11.5	)		(38.4	)		NM			54.3			(75.8	)		NM
*Income from Operations* ⁽¹⁾		231.4			221.4			351.4			371.0			375.2			62.1	%		832.7			1,319.0			58.4	%

Realized gains (losses) on investments and derivatives		(6.1	)		(4.2	)		(3.8	)		(4.1	)		9.4			254.1	%		(14.6	)		(2.6	)		82.2	%
Net gain (loss) on reinsurance
derivative/trading account securities		-			3.8			1.2			(3.1	)		0.1			NM			3.0			2.0			-33.3	%
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						0.8			0.9			12.5	%
Loss on early retirement of debt		-			-			-			-			(3.6	)		NM			-			(3.6	)		NM
*Net Income*	$	225.4		$	221.2		$	349.0		$	364.1		$	381.3			69.2	%	$	831.1		$	1,315.6			58.3	%

*OTHER DATA*

		Three Months Ended																		Year Ended
		Dec.			March			June			Sept.			Dec.						Dec.			Dec.
		2005			2006			2006			2006			2006						2005			2006
*Shareholders' Equity*
Beg of period (including AOCI)	$	6,284.4		$	6,384.4		$	6,338.2		$	11,404.8		$	12,043.2					$	6,175.6		$	6,384.4
End of period (including AOCI)		6,384.4			6,338.2			11,404.8			12,043.2			12,201.0						6,384.4			12,201.0
End of period (excluding AOCI)		5,856.6			6,053.2			11,439.8			11,436.0			11,587.9						5,856.6			11,587.9
Average equity (excluding AOCI) ⁽²⁾		5,760.0			5,954.9			11,311.3			11,437.9			11,512.0						5,507.1			10,054.0

*Common Shares Outstanding*
Average for the period - diluted		176.6			177.9			282.6			282.4			280.4						176.1			256.2
End of period - diluted		176.9			178.5			285.0			281.3			280.2						176.9			280.2

*Per Share Data (Diluted)*
Net Income	$	1.28		$	1.24		$	1.23		$	1.29		$	1.36					$	4.72		$	5.13
Income from Operations ⁽¹⁾		1.31			1.25			1.24			1.31			1.34						4.73			5.14

*Shareholders' Equity Per Share*
Shareholders' Equity (including AOCI)	$	36.69		$	35.99		$	40.48		$	43.39		$	44.21					$	36.69		$	44.21
Shareholders' Equity (excluding AOCI)		33.66			34.37			40.60			41.20			41.99						33.66			41.99
Dividends declared (Common Stock)		0.380			0.380			0.380			0.380			0.395						1.475			1.535

*Return on Equity*
Net Income/Average Equity		15.7	%		14.9	%		12.3	%		12.7	%		13.2	%					15.1	%		13.1	%
Inc from Operations/Average Equity		16.1	%		14.9	%		12.4	%		13.0	%		13.0	%					15.1	%		13.1	%

*Market Value of Common Stock*
Highest price	$	54.41		$	57.97		$	60.52		$	63.47		$	66.72					$	54.41		$	66.72
Lowest price		46.94			52.00			54.30			53.94			61.74						41.59			52.00
*Closing price*	$	53.03		$	54.59		$	56.44		$	62.08		$	66.40					$	53.03		$	66.40

⁽¹⁾ Income from operations includes after-tax restructuring charges of $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, $6.2 million, or 2 cents per share, for the second quarter of 2006, $0.6 million, or -0- cents per share, for the third quarter of 2006, and $2.1 million, or 1 cent per share, for the fourth quarter of 2006. Results for the years ended December 31, 2006 and 2005 include $9.3 million, or 4 cents per share and $19.0 million, or 11 cents per share, respectively.

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

12/31/2006																									PAGE 7

*Consolidated Statements of Income*
Unaudited [Millions of Dollars]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Revenue*
Premiums	$	82.4		$	78.4		$	454.3		$	425.7		$	448.1			NM		$	308.4		$	1,406.5			NM
Surrender charges		18.0			18.7			27.3			26.6			29.9			66.1	%		73.3			102.5			39.8	%
Mortality assessments		145.1			146.2			294.7			294.9			295.9			103.9	%		568.3			1,031.7			81.5	%
Expense assessments		294.1			309.5			370.1			357.8			432.3			47.0	%		1,110.0			1,469.8			32.4	%
Investment advisory fees		70.9			77.8			81.2			82.9			86.1			21.4	%		255.9			327.9			28.1	%
Communications revenue		-			-			57.5			59.8			69.6			NM			-			186.9			NM
Net investment income		668.2			678.4			1,068.2			1,107.9			1,126.3			68.6	%		2,702.7			3,980.8			47.3	%
Other revenue and fees		97.6			94.8			128.2			123.1			137.2			40.6	%		382.6			483.2			26.3	%
Amortization of deferred gain		18.9			18.8			18.8			18.8			18.8			-0.5	%		75.7			75.0			-0.9	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			0.3						1.2			1.3			8.3	%
Realized gains (losses)		(9.3	)		(1.0	)		(5.0	)		(10.5	)		13.9			249.5	%		(3.3	)		(2.7	)		18.2	%
*Total Revenue*		1,386.3			1,421.8			2,495.6			2,487.2			2,658.4			91.8	%		5,474.7			9,062.9			65.5	%

*Benefits and Expenses*
Insurance benefits		198.0			200.4			589.3			566.2			562.2			183.9	%		805.5			1,918.2			138.1	%
Interest credited to contractholder funds		383.4			381.3			589.3			634.4			646.5			68.6	%		1,526.3			2,251.5			47.5	%
Communications expenses		-			-			29.8			31.4			36.9			NM			-			98.1			NM
Operating and acquisition expenses		469.7			469.9			669.5			677.6			763.1			62.5	%		1,885.5			2,580.2			36.8	%
Taxes, licenses and fees		17.3			33.5			47.3			50.3			48.0			177.5	%		95.5			179.2			87.6	%
Interest and debt expense		21.8			21.7			65.0			67.3			70.4			222.9	%		87.2			224.4			157.3	%
*Total Benefits and Expenses*		1,090.2			1,106.8			1,990.3			2,027.3			2,127.2			95.1	%		4,400.0			7,251.6			64.8	%

Income Before Federal Income Tax		296.1			315.0			505.3			459.9			531.3			79.4	%		1,074.6			1,811.3			68.6	%

Federal income taxes		70.6			93.9			156.3			95.8			149.9			112.3	%		243.6			495.7			103.5	%
*Net Income*	$	225.4		$	221.2		$	349.0		$	364.1		$	381.3			69.2	%	$	831.0		$	1,315.6			58.3	%


Roll Forward of Deferred Acquisition Costs		Three Months Ended																	Year Ended
& Value of Business Acquired		Dec.			March			June			Sept.			Dec.						Dec.			Dec.
		2005			2006			2006			2006			2006						2005			2006
Balance at beginning of period	$	4,989.1		$	5,163.3		$	5,433.8		$	8,328.4		$	8,171.6					$	4,590.3		$	5,163.3
Deferral		263.0			244.5			391.6			424.3			517.9						937.6			1,578.5
Amortization		(144.8	)		(165.0	)		(222.2	)		(225.9	)		(278.5	)					(540.7	)		(891.7	)
Included in Total Benefits and Expenses		118.2			79.6			169.4			198.4			239.5						396.9			686.8
Adjustment related to realized (gains) losses
on available-for-sale securities		(8.7	)		(10.9	)		(18.9	)		(8.9	)		(8.9	)					(48.5	)		(47.6	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		84.7			194.2			221.5			(359.8	)		(17.4	)					313.1			38.4
Foreign currency translation adjustment		(20.0	)		7.7			48.3			9.7			35.7						(88.5	)		101.5
Business acquired		-			-			2,474.2			3.8			-						-			2,478.0
Balance at end of period	$	5,163.3		$	5,433.8		$	8,328.4		$	8,171.6		$	8,420.4					$	5,163.3		$	8,420.4

Roll Forward of Deferred Front-End Load

Balance at beginning of period	$	786.9		$	795.7		$	805.8		$	861.0		$	923.9					$	814.2		$	795.7
Deferral		33.2			31.1			69.1			71.0			77.9						124.9			248.9
Amortization		(15.0	)		(24.7	)		(37.4	)		(12.7	)		(42.8	)					(99.6	)		(117.6	)
Included in Expense Assessments		18.2			6.4			31.8			58.3			35.1						25.3			131.3
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			-			(0.1	)		-						-			(0.1	)
Foreign currency translation adjustment		(9.5	)		3.8			23.6			4.7			17.9						(43.9	)		49.9
Balance at end of period	$	795.7		$	805.8		$	861.0		$	923.9		$	976.9					$	795.7		$	976.9

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	118.1		$	129.4		$	139.9		$	154.6		$	173.4					$	85.5		$	129.4
Deferral		15.6			15.7			19.9			22.2			28.4						59.5			86.1
Amortization		(4.4	)		(5.2	)		(5.2	)		(3.3	)		(7.9	)					(15.6	)		(21.6	)
Included in Income from Operations		11.3			10.5			14.7			18.9			20.5						43.9			64.5
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			-			(0.1	)		-						-			(0.1	)
Balance at end of period	$	129.4		$	139.9		$	154.6		$	173.4		$	193.8					$	129.4		$	193.8

12/31/2006

PAGE 8

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

For the Quarter Ended December 31, 2006

Individual Markets

Employer Markets

Lincoln

Defined

Executive

Group

Investment

Lincoln

Financial

Other

Consolidating

Life

Annuities

Contribution

Benefits

Protection

Management

Media

Operations

Adjustments

Consolidated

Operating Revenue

Premiums

93.5

10.7

3.3

315.9

21.0

3.8

448.1

Surrender charges

16.1

12.3

1.5

29.9

Mortality assessments

278.4

8.5

9.0

295.9

Expense assessments

116.4

215.2

58.4

5.5

36.8

432.3

Investment advisory fees

111.2

(25.2

)

86.1

Communications revenue

70.0

(0.5

)

69.6

Net investment income

441.1

314.8

180.6

90.5

28.0

18.0

0.1

54.1

(1.0

)

1,126.3

Amortization of deferred gain

18.8

Other revenue and fees

13.0

84.3

4.5

1.3

0.8

37.7

5.8

(10.2

)

137.2

Total Operating Revenue

958.4

637.3

245.0

109.1

344.8

148.9

84.8

70.2

82.0

(36.4

)

2,644.2

Operating Expenses

Insurance benefits

249.1

11.7

39.7

224.0

30.4

7.3

562.2

Interest credited to

contractholder funds

251.3

211.7

104.4

42.0

37.1

646.5

Communications expenses

36.9

Operating and acquisition expenses

192.0

248.0

78.2

7.8

62.8

122.7

39.1

3.9

44.4

(35.9

)

763.1

Taxes, licenses and fees

27.0

4.5

1.9

1.3

6.9

3.5

1.8

1.2

0.0

48.0

Interest

0.1

0.4

64.8

(0.5

)

64.8

Total Operating Expenses

719.4

476.0

184.6

90.8

293.6

126.2

69.5

43.0

154.9

(36.4

)

2,121.6

Income (Loss) from Operations

before Federal income taxes

239.1

161.4

60.4

18.3

51.2

22.7

15.3

27.2

(73.0

)

522.6

Federal income taxes

81.7

37.6

15.8

5.6

17.9

8.3

5.4

9.6

(34.5

)

147.3

Income from Operations

157.4

123.8

44.6

12.7

33.2

14.4

9.9

17.5

(38.4

)

375.2

12/31/2006

PAGE 9

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

For the Quarter Ended December 31, 2005

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group Protection

Investment

Management

Lincoln UK

Lincoln Financial Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

57.7

8.5

0.7

15.4

0.1

82.4

Surrender charges

11.6

4.4

2.0

18.0

Mortality assessments

135.3

2.5

7.3

145.1

Expense assessments

58.8

155.5

51.7

6.1

22.0

294.1

Investment advisory fees

95.4

(24.5

)

70.9

Communications revenue

Net investment income

227.5

150.4

181.3

51.0

17.8

41.5

(1.3

)

668.2

Amortization of deferred gain

18.9

Other revenue and fees

10.3

53.3

6.2

1.3

32.5

1.2

(7.1

)

97.6

Total Operating Revenue

501.1

372.1

241.2

61.6

127.9

62.6

61.7

(32.9

)

1,395.4

Operating Expenses

Insurance benefits

118.6

21.2

31.2

27.5

(0.5

)

198.0

Interest credited to

contractholder funds

142.1

96.3

101.1

9.5

34.5

383.4

Communications expenses

Operating and acquisition expenses

117.3

166.1

76.0

6.3

111.9

14.3

9.7

(31.8

)

469.7

Taxes, licenses and fees

12.9

(1.4

)

1.2

1.0

2.6

0.9

17.3

Interest

22.9

(1.0

)

21.8

Total Operating Expenses

390.8

282.2

178.3

48.0

114.4

41.8

67.4

(32.8

)

1,090.2

Income (Loss) from Operations before

Federal income taxes

110.4

89.9

62.9

13.6

13.5

20.8

(5.7

)

305.3

Federal income taxes

36.5

19.0

17.7

4.1

4.6

7.2

(15.4

)

73.8

Income from Operations

73.8

70.9

45.2

9.5

8.9

13.6

9.6

231.4

12/31/2006

PAGE 10

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

Year Ended December 31, 2006

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln

Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

321.5

47.5

4.7

949.0

78.6

5.3

1,406.5

Surrender charges

60.3

34.7

7.6

102.5

Mortality assessments

970.2

27.0

34.4

1,031.7

Expense assessments

350.0

755.4

222.6

18.1

123.5

0.3

1,469.8

Investment advisory fees

424.8

(96.9

)

327.9

Communications revenue

187.4

(0.5

)

186.9

Net investment income

1,510.9

1,038.6

738.2

316.6

80.2

71.4

0.5

225.4

(1.0

)

3,980.8

Amortization of deferred gain

75.0

Other revenue and fees

43.0

285.1

19.6

5.3

2.5

138.7

0.1

18.7

(29.8

)

483.2

Total Operating Revenue

3,255.8

2,161.3

988.0

371.8

1,031.8

563.5

308.0

187.8

324.2

(127.8

)

9,064.3

Operating Expenses

Insurance benefits

886.4

104.8

138.5

663.3

108.2

17.0

1,918.2

Interest credited to contractholder funds

882.1

683.8

410.5

131.4

143.7

2,251.5

Communications expenses

98.1

Operating and acquisition expenses

643.2

849.6

288.4

27.4

193.6

465.5

140.0

15.7

84.6

(127.8

)

2,580.2

Taxes, licenses and fees

99.1

19.4

9.0

5.0

22.6

13.4

3.2

7.4

179.2

Interest

0.6

1.4

216.9

218.8

Total Operating Expenses

2,510.8

1,658.1

708.0

302.3

879.5

478.9

248.2

118.5

469.5

(127.8

)

7,246.1

Income (Loss) from Operations before

Federal income taxes

745.0

503.2

280.0

69.4

152.3

84.5

59.8

69.4

(145.4

)

1,818.2

Federal income taxes

248.7

94.7

76.2

20.2

53.3

29.4

20.9

25.3

(69.5

)

499.3

Income from Operations

496.3

408.5

203.8

49.2

99.0

55.1

38.9

44.0

(75.8

)

1,319.0

12/31/2006

PAGE 11

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

Year Ended December 31, 2005

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln

Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

198.4

37.1

8.6

63.3

1.0

308.4

Surrender charges

43.9

19.9

9.9

(0.4

)

73.3

Mortality assessments

524.6

8.9

34.8

568.3

Expense assessments

189.7

559.4

200.6

18.6

141.6

1,110.0

Investment advisory fees

354.6

(98.8

)

255.9

Communications revenue

Net investment income

908.7

613.8

711.5

186.7

78.6

207.4

(4.2

)

2,702.7

Amortization of deferred gain

75.7

Other revenue and fees

45.2

192.4

25.5

5.1

120.6

0.1

4.7

(10.7

)

382.6

Total Operating Revenue

1,910.6

1,422.5

947.5

227.4

475.3

318.4

288.9

(113.8

)

5,476.8

Operating Expenses

Insurance benefits

461.4

94.3

133.7

116.0

0.1

805.5

Interest credited to

contractholder funds

559.8

392.7

401.8

38.8

133.0

1,526.3

Communications expenses

Operating and acquisition expenses

448.5

600.5

276.7

24.7

438.7

135.7

71.3

(110.6

)

1,885.5

Taxes, licenses and fees

54.6

13.9

7.8

4.5

10.4

4.2

95.5

Interest

90.5

(3.2

)

87.2

Total Operating Expenses

1,524.3

1,101.3

686.3

201.7

449.0

251.8

299.1

(113.8

)

4,400.0

Income (Loss) from Operations before

Federal income taxes

386.2

321.1

261.2

25.7

26.3

66.6

(10.2

)

1,076.8

Federal income taxes

126.7

69.1

74.1

6.1

9.5

23.3

(64.5

)

244.2

Income from Operations

259.5

252.0

187.1

19.6

16.8

43.3

54.3

832.7

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



	Dec.			March			June			Sept.			Dec.
	2005			2006			2006			2006			2006
*ASSETS*

*Investments*
Corporate bonds	$	25,860.7		$	25,418.0		$	43,881.6		$	45,345.3		$	45,489.4
U.S. government bonds		161.8			173.4			287.6			291.6			263.4
Foreign government bonds		1,203.3			1,169.7			1,188.0			1,144.4			1,141.6
Mortgage backed securities		5,951.2			5,868.8			8,370.3			8,765.1			8,691.3
State and municipal bonds		128.8			126.0			166.5			160.7			159.4
Preferred stocks - redeemable		137.4			136.9			130.1			117.8			108.3
Common stocks		55.9			61.0			458.8			506.3			525.5
Preferred stocks-equity		88.8			115.0			119.7			155.7			174.7
Total AFS Securities		33,587.9			33,068.8			54,602.6			56,486.9			56,553.7
Trading securities		3,246.0			3,190.1			3,109.0			3,172.5			3,036.3
Mortgage loans		3,662.6			3,586.2			7,741.2			7,580.5			7,384.3
Real estate		182.7			180.4			428.6			424.0			421.3
Policy loans		1,862.2			1,860.4			2,716.4			2,724.9			2,759.7
Other long-term investments		626.9			687.5			1,116.6			1,218.7			1,332.4
*Total Investments*		43,168.4			42,573.2			69,714.4			71,607.5			71,487.6

Cash and invested cash		2,311.7			1,974.0			1,499.8			1,108.3			1,620.6
Premiums and fees receivable		343.2			363.2			343.9			345.6			356.2
Accrued investment income		526.4			532.1			879.0			928.2			866.2
Amount recoverable from reinsurers		6,926.3			6,899.4			7,967.2			8,007.3			7,939.1
Deferred acquisition costs and VOBA		5,163.2			5,433.7			8,328.4			8,171.6			8,420.4
Goodwill		1,194.2			1,194.4			4,502.6			4,498.0			4,499.5
Other		1,479.3			1,517.7			3,049.6			2,703.1			2,770.4
Assets held in separate accounts		63,746.8			67,984.2			71,095.2			74,357.1			80,533.7
*Total Assets*	$	124,859.6		$	128,472.0		$	167,380.0		$	171,726.6		$	178,493.7

*LIABILITIES and SHAREHOLDERS' EQUITY*

*Liabilities*
Insurance and Investment Contract Liabilities:
Reserves	$	10,659.7		$	10,657.2		$	13,512.1		$	13,513.4		$	13,622.1
Unpaid claims		1,042.9			981.3			1,211.7			1,206.9			1,149.1
Premium deposit funds		21,713.3			21,448.6			21,198.4			20,708.6			20,541.4
Policyholders' funds		13,878.8			13,991.5			37,430.3			37,808.3			38,275.1
Total Insurance and Investment Contract Liabilities		47,294.8			47,078.6			73,352.5			73,237.2			73,587.7

Short-term debt		119.9			10.6			561.0			559.2			657.6
Long-term debt - senior notes		999.0			998.5			2,329.1			2,330.4			2,231.0
Long-term debt - subordinated
Capital securities		-			-			1,071.8			1,071.9			1,072.0
Junior subordinated debentures issued to
affiliated trusts		334.0			332.3			330.5			332.5			154.6
Embedded derivative - modco		292.2			192.0			126.7			232.5			228.7
Deferred gain on indemnity reinsurance		836.0			816.9			797.8			778.7			759.6
Federal income taxes		19.8			-			563.8			911.1			977.9
Other liabilities		4,832.8			4,720.7			5,746.7			5,872.8			6,089.9
Liabilities related to separate accounts		63,746.8			67,984.2			71,095.2			74,357.1			80,533.7
*Total Liabilities*		118,475.2			122,133.8			155,975.2			159,683.5			166,292.7

Preferred Stock		0.5			0.5			0.5			0.5			0.5
Capital stock		1,774.6			1,817.5			7,425.7			7,448.7			7,450.7
Retained earnings		4,081.5			4,235.2			4,013.7			3,986.7			4,136.7
Unrealized gains on investments		496.6			220.2			(151.5	)		478.0			469.6
Gains - derivatives		7.3			35.2			51.5			55.9			62.4
Foreign currency		83.4			89.7			128.5			136.5			165.1
Minimum pension liability		(59.5	)		(60.1	)		(63.6	)		(63.2	)		-
Adjustment to initially apply SFAS 158		-			-			-			-			(84.0	)
*Total Shareholders' Equity*		6,384.4			6,338.2			11,404.8			12,043.2			12,201.0

*Total Liabilities and Shareholders' Equity*	$	124,859.6		$	128,472.0		$	167,380.0		$	171,726.6		$	178,493.7

*Shareholders' Equity Per Share*	$	36.69		$	35.99		$	40.48		$	43.39		$	44.21

Book Value, Excluding AOCI	$	33.66		$	34.37		$	40.60		$	41.20		$	41.99
Common shares outstanding -assuming conv of
preferreds (in millions)		174.0			176.1			281.8			277.6			276.0

12/31/2006																				PAGE 13

*Balance Sheet Data - Segment Highlights*
Unaudited [Millions of Dollars]


	Individual				Employer
	Markets				Markets
As of December 31, 2006	Annuities		Life		Defined Contribution		Executive Benefits		Group Protection		Investment Management		Lincoln UK		Lincoln Financial Media		Other Operations⁽¹⁾			Consolidated

*Assets*
Allocated Investments	$	18,686.2	$	27,843.9	$	11,762.6	$	6,088.9	$	1,833.6	$	-	$	1,101.1	$	-	$	4,171.4		$	71,487.6
DAC and VOBA		2,050.4		4,659.4		497.6		265.3		137.6		-		809.0		-		1.3			8,420.4
Goodwill		1,031.6		2,181.3		20.2		-		281.0		261.7		16.2		707.6		-			4,499.5
Other intangibles		193.7		97.0		0.1		-		-		9.3		-		663.1		-			963.2
Amounts recoverable from reinsurers		836.9		1,817.7		-		5.3		27.5		-		70.2		-		5,181.5			7,939.1
Assets held in separate accounts		48,014.7		5,040.3		17,459.2		833.4		-		-		8,756.9		-		429.3			80,533.7

*Liabilities and Capital*
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		438.1		5,640.7		-		1,778.3		1,183.4		-		1,118.8		-		4,611.8			14,771.2
Contractholder funds		18,206.0		23,433.9		10,982.9		4,025.5		16.8		-		435.6		-		1,715.9			58,816.5
Total Insurance and Inv Contract Liabilities		18,644.1		29,074.6		10,982.9		5,803.8		1,200.2		-		1,554.4		-		6,327.7			73,587.7

Allocated capital ⁽²⁾		3,432.5		7,345.1		959.8		531.7		923.1		307.8		385.0		876.6		(3,173.6	)	$	11,587.9



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		1,328.0		2,543.9		454.9		113.6		-		-		743.4		-		(20.7	)		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		439.6		3,561.2		-		1,914.9		-		-		1,013.7		-		4,773.2			11,702.7
Contractholder funds		8,619.8		12,868.0		11,033.4		752.4		-		-		396.4		-		1,922.1			35,592.1
Total Insurance and Inv Contract Liabilities		9,059.4		16,429.2		11,033.4		2,667.3		-		-		1,410.1		-		6,633.0			47,294.8

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).

12/31/2006																									PAGE 14
*Individual Markets - Individual Life Insurance*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Revenue*
Premiums	$	57.7		$	51.1		$	89.9		$	87.0		$	93.5			62.0	%	$	198.4		$	321.5			62.0	%
Surrender charges		11.6			10.3			15.5			18.3			16.1			38.8	%		43.9			60.3			37.4	%
Mortality assessments		135.3			135.6			277.3			278.9			278.4			105.8	%		524.6			970.2			84.9	%
Expense assessments		58.8			54.3			93.0			86.1			116.4			98.0	%		189.7			350.0			84.5	%
Net investment income		227.5			239.5			415.9			414.4			441.1			93.9	%		908.7			1,510.9			66.3	%
Other revenue and fees		10.3			9.7			9.7			10.6			13.0			26.2	%		45.2			43.0
*Total Operating Revenue*		501.1			500.6			901.4			895.3			958.4			91.3	%		1,910.6			3,255.8			70.4	%

*Operating Expenses*
Insurance benefits		118.6			120.2			256.0			261.1			249.1			110.0	%		461.4			886.4			92.1	%
Interest credited to contractholder funds		142.1			142.2			241.5			247.1			251.3			76.8	%		559.8			882.1			57.6	%
Operating and acquisition expenses		130.1			132.8			182.9			207.6			219.0			68.3	%		503.1			742.3			47.5	%
*Total Operating Expenses*		390.8			395.3			680.4			715.7			719.4			84.1	%		1,524.3			2,510.8			64.7	%

Income from operations before Federal income taxes		110.4			105.3			221.0			179.6			239.1			116.6	%		386.2			745.0			92.9	%

Federal income taxes		36.5			36.3			73.9			56.8			81.7			123.8	%		126.7			248.7			96.3	%

*Income from Operations*	$	73.8		$	69.0		$	147.1		$	122.8		$	157.4			113.3	%	$	259.5		$	496.3			91.3	%

*Effective tax rate*		33.1	%		34.5	%		33.4	%		31.6	%		34.2	%					32.8	%		33.4	%

*Average equity*	$	3,278.0		$	3,266.0		$	7,051.8		$	7,223.9		$	7,292.7					$	3,206.5		$	6,208.6
*Return on average equity*		9.0	%		8.5	%		8.3	%		6.8	%		8.6	%					8.1	%		8.0	%


Operating and Acquisition Expenses
Commissions	$	82.2		$	66.8		$	151.2		$	167.1		$	226.5			175.7	%	$	266.9		$	611.6			129.1	%
General and administrative expenses		73.8			66.3			97.2			122.5			116.3			57.7	%		296.9			402.3			35.5	%
Taxes, licenses and fees		12.9			16.3			27.5			28.3			27.0			109.8	%		54.6			99.1			81.5	%
Total commissions and expenses incurred		168.7			149.4			275.9			317.9			369.8			119.1	%		618.3			1,113.0			80.0	%
Less: commissions and expenses capitalized		(113.8	)		(90.1	)		(199.8	)		(226.6	)		(291.3	)		NM			(373.8	)		(807.8	)		NM
Amortization of DAC and VOBA		75.2			73.6			106.7			116.3			140.5			86.8	%		258.7			437.0			68.9	%
Net Operating and Acquisition Expenses	$	130.1		$	132.8		$	182.9		$	207.6		$	219.0			68.3	%	$	503.1		$	742.3			47.5	%

General and administrative expenses -
basis points on account values - Annualized		212			187			153			191			178			(34	)		219			176			(43	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	2,479.9		$	2,543.9		$	2,643.8		$	4,592.2		$	4,524.7					$	2,359.0		$	2,543.9
Deferral		113.8			90.1			199.8			226.6			291.3						373.8			807.8
Amortization		(75.2	)		(73.6	)		(106.7	)		(116.3	)		(140.5	)					(258.7	)		(437.0	)
Included in Total Operating Expenses		38.6			16.6			93.0			110.3			150.8						115.1			370.8
Adjustment related to realized (gains) losses
on available-for-sale securities		(1.2	)		(3.4	)		(7.9	)		(3.8	)		(6.7	)					(15.4	)		(21.8	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		26.5			86.7			96.7			(174.0	)		(9.5	)					85.0			(0.1	)
Business acquired		-			-			1,766.6			-			-						-			1,766.6
Other		0.1			-			-			-			-						0.1			-
Balance at end of period	$	2,543.9		$	2,643.8		$	4,592.2		$	4,524.7		$	4,659.4					$	2,543.9		$	4,659.4

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	338.5		$	342.6		$	344.3		$	375.3		$	415.9					$	311.1		$	342.6
Deferral		21.8			19.7			57.8			58.9			65.2						81.0			201.6
Amortization		(17.6	)		(18.0	)		(26.8	)		(18.3	)		(31.6	)					(49.5	)		(94.7	)
Included in Expense Assessments		4.2			1.7			31.0			40.6			33.6						31.5			106.9
Balance at end of period	$	342.6		$	344.3		$	375.3		$	415.9		$	449.5					$	342.6		$	449.5

12/31/2006																					PAGE 15
*Individual Markets- Individual Life Insurance*
*Operational Data*
Unaudited [Millions of Dollars]


	Three Months Ended													Year Ended
	Dec.		March		June		Sept.		Dec.		%			Dec.		Dec.		%
	2005		2006		2006		2006		2006		Change			2005		2006		Change
*Sales by Product(Millions)***⁽¹⁾
Universal Life
Excluding MoneyGuard	$	59.6	$	41.3	$	97.5	$	119.9	$	177.6		198.0	%	$	191.7	$	436.2		127.5	%
MoneyGuard		9.4		7.7		7.5		8.3		7.8		-17.0	%		33.9		31.3		-7.7	%
Total		69.0		49.0		105.0		128.2		185.4		168.7	%		225.6		467.5		107.2	%
Variable universal life		13.4		10.0		15.7		13.0		22.1		64.9	%		42.2		60.8		44.1	%
Whole life		0.4		0.7		0.4		0.7		0.6		50.0	%		1.8		2.3		27.8	%
Term		7.9		8.2		11.3		10.7		10.0		26.6	%		33.7		40.2		19.3	%
Total	$	90.7	$	67.9	$	132.3	$	152.5	$	218.1		140.5	%	$	303.2	$	570.8		88.3	%



*First-Year Paid Premiums* *(Millions)*
Universal Life
Excluding MoneyGuard	$	144.0	$	108.2	$	261.2	$	269.0	$	351.0		143.8	%	$	436.3	$	989.4		126.8	%
MoneyGuard		62.5		51.5		50.0		54.8		52.3		-16.3	%		226.1		208.6		-7.7	%
Total		206.5		159.7		311.2		323.9		403.2		95.3	%		662.4		1,198.1		80.9	%
Variable universal life		33.4		27.1		40.5		34.4		53.4		59.9	%		106.5		155.4		45.9	%
Whole life		14.4		8.3		9.5		12.0		16.5		14.6	%		40.7		46.3		13.8	%
Term		8.4		8.6		11.5		10.4		9.6		14.3	%		35.9		40.0		11.4	%
Total	$	262.7	$	203.7	$	372.7	$	380.6	$	482.7		83.7	%	$	845.5	$	1,439.8		70.3	%



*Life Insurance In-Force* *(Billions)*
Universal life & other	$	128.791	$	129.584	$	260.945	$	263.485	$	267.228		107.5	%	$	128.791	$	267.228		107.5	%
Term insurance		187.850		191.825		229.082		232.214		234.148		24.6	%		187.850		234.148		24.6	%
*Total Life Segment In-Force*	$	316.641	$	321.409	$	490.027	$	495.699	$	501.376		58.3	%	$	316.641	$	501.376		58.3	%



⁽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.

12/31/2006																									PAGE 16
*Individual Markets - Individual Life Insurance*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
Interest Sensitive Life-Balance Beginning-of-Period	$	11.591		$	11.809		$	11.913		$	21.285		$	21.516			85.6	%	$	11.232		$	11.809			5.1	%
Business acquired		-			-			9.150			-			-			NM			-			9.150			NM
Deposits		0.499			0.401			0.799			0.717			0.948			90.0	%		1.685			2.865			70.0	%
Withdrawals & deaths		(0.160	)		(0.182	)		(0.317	)		(0.275	)		(0.301	)		-88.1	%		(0.675	)		(1.075	)		-59.3	%
Net flows		0.339			0.219			0.482			0.442			0.647			90.9	%		1.010			1.790			77.2	%
Policyholder assessments		(0.257	)		(0.250	)		(0.493	)		(0.451	)		(0.523	)		NM			(0.976	)		(1.717	)		-75.9	%
Interest credited		0.136			0.135			0.233			0.241			0.249			83.1	%		0.543			0.858			58.0	%
*Interest Sensitive Life-Balance End-of-Period* ⁽¹⁾	$	11.809		$	11.913		$	21.285		$	21.516		$	21.890			85.4	%	$	11.809		$	21.890			85.4	%

Variable Universal Life-Balance Beginning of Period	$	2.154		$	2.242		$	2.355		$	4.194		$	4.305			99.9	%	$	2.028		$	2.242			10.6	%
Business acquired		-			-			1.918			-			-			NM			-			1.918			NM
Deposits		0.097			0.087			0.224			0.036			0.153			57.7	%		0.346			0.499			44.2	%
Withdrawals & deaths		(0.036	)		(0.049	)		(0.158	)		0.013			(0.073	)		NM			(0.161	)		(0.267	)		-65.8	%
Net flows		0.061			0.038			0.066			0.049			0.080			31.1	%		0.185			0.233			25.9	%
Policyholder assessments		(0.044	)		(0.044	)		(0.077	)		(0.076	)		(0.079	)		-79.5	%		(0.171	)		(0.276	)		-61.4	%
Investment income and change in market value		0.071			0.119			(0.068	)		0.137			0.294			NM			0.200			0.483			141.5	%
*Variable Universal Life -Balance End-of-Period*	$	2.242		$	2.355		$	4.194		$	4.305		$	4.600			105.2	%	$	2.242		$	4.600			105.2	%

*Total Segment- Life Insurance Account Value Roll Forward*
Balance Beginning-of-Period	$	13.745		$	14.051		$	14.268		$	25.479		$	25.821			87.9	%	$	13.259		$	14.051			6.0	%
Business acquired		-			-			11.068			-			-			NM			-			11.068			NM
Deposits		0.596			0.488			1.023			0.753			1.101			84.7	%		2.030			3.365			65.8	%
Withdrawals & deaths		(0.196	)		(0.231	)		(0.476	)		(0.262	)		(0.374	)		-90.8	%		(0.836	)		(1.342	)		-60.5	%
Net flows		0.400			0.257			0.548			0.491			0.727			81.8	%		1.195			2.023			69.3	%
Policyholder assessments		(0.301	)		(0.294	)		(0.571	)		(0.526	)		(0.602	)		-100.0	%		(1.147	)		(1.992	)		-73.7	%
Investment income and change in market value		0.206			0.254			0.165			0.379			0.543			163.6	%		0.743			1.341			80.5	%
*Total Segment -Balance End-of-Period*	$	14.051		$	14.268		$	25.479		$	25.821		$	26.490			88.5	%	$	14.051		$	26.490			88.5	%

Life Product Spread Information ⁽²⁾

*Interest Sensitive Products*																	Change (Basis Points)									Change (Basis Points)
Net investment income ^{(3) (4)}		6.26	%		6.48	%		6.22	%		6.08	%		6.44	%		18			6.33	%		6.29	%		(4	)
Interest credited to policyholders		4.66	%		4.60	%		4.46	%		4.52	%		4.52	%		(14	)		4.68	%		4.52	%		(16	)
Spread ⁽³⁾⁽⁴⁾		1.60	%		1.88	%		1.76	%		1.57	%		1.92	%		32			1.65	%		1.77	%		12

*Traditional Products*
Net investment income ⁽³⁾		6.42	%		6.72	%		6.59	%		6.60	%		6.51	%		9			6.55	%		6.60	%		5


⁽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 December 31, 2006, interest sensitive products represented approximately 81% 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 12 bps in the 4th quarter of 2006, 20 bps in the 3rd quarter of 2006, 13 bps in the 2nd quarter of 2006, 7 bps in the 1st quarter of 2006 and 8 bps in the 4th quarter of 2005. The impact was 14 basis points for the full year 2006 and 6 basis points for the full year 2005. There was an impact on traditional products of 2 bps in the 4th quarter of 2006, 15 bps in the 3rd quarter of 2006, 14 bps in the 2nd quarter of 2006, 15 bps in the 1st quarter of 2006 and 0 bps in the 4th quarter of 2005. The impact was 12 basis points for the full year 2006 and 10 basis points for the full year 2005.
⁽⁴⁾ The net investment income and spread for the fourth, third, second and first quarters of 2006 include 24 bps, -22 bps, 2 bps and 17 bps, respectively, of incremental yield from special investments. The impact was 4 bps for the full year 2006 and 2 bps for the full year 2005.

12/31/2006																												PAGE 17
*Individual Markets - Individual Annuities*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]



	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Revenue*
Premiums	$	8.5		$	9.3		$	15.3		$	12.3		$	10.7			25.9	%	$	37.1		$	47.5			28.0	%
Surrender charges		4.4			6.2			9.6			6.6			12.3			179.5	%		19.9			34.7			74.7	%
Expense assessments		155.5			168.0			182.7			189.3			215.2			38.4	%		559.4			755.4			35.0	%
Net investment income		150.4			148.0			263.2			312.7			314.8			109.3	%		613.8			1,038.6			69.2	%
Other revenue and fees ⁽¹⁾		53.3			43.4			81.8			75.7			84.3			58.2	%		192.4			285.1			48.2	%
*Total Operating Revenue*		372.1			374.8			552.6			596.5			637.3			71.3	%		1,422.5			2,161.3			51.9	%

*Operating Expenses*
Insurance benefits		21.2			20.4			45.3			27.4			11.7			-44.8	%		94.3			104.8			11.1	%
Interest credited to contractholder funds		96.3			95.1			168.8			208.2			211.7			119.8	%		392.7			683.8			74.1	%
Operating and acquisition expenses		164.7			172.6			216.9			227.3			252.6			53.4	%		614.3			869.5			41.5	%
*Total Operating Expenses*		282.2			288.1			431.0			462.9			476.0			68.7	%		1,101.3			1,658.1			50.6	%

Income from operations before Federal income taxes		89.9			86.7			121.5			133.6			161.4			79.5	%		321.1			503.2			56.7	%

Federal income taxes		19.0			20.3			32.5			4.2			37.6			97.9	%		69.1			94.7			37.0	%

*Income from Operations*	$	70.9		$	66.4		$	89.0		$	129.4		$	123.8			74.6	%	$	252.0		$	408.5			62.1	%

*Effective tax rate*		21.1	%		23.4	%		26.7	%		3.1	%		23.3	%					21.5	%		18.8	%

*Average equity*	$	1,773.7		$	1,744.1		$	3,269.2		$	3,310.4		$	3,388.1					$	1,714.1		$	2,927.9
*Return on average equity*		16.0	%		15.2	%		10.9	%		15.6	%		14.6	%					14.7	%		14.0	%
*Income from Operations - basis points on* *average account values*		60			52			58			84			76						57			69

Operating and Acquisition Expenses
Commissions	$	100.4		$	111.3		$	140.5		$	146.2		$	167.2			66.5	%	$	383.8		$	565.1			47.2	%
General and administrative expenses		70.9			66.2			69.8			81.8			80.9			14.1	%		271.5			298.8			10.0	%
Broker-dealer commissions and general and
administrative expenses		54.2			46.6			79.3			76.6			80.0			47.6	%		204.3			282.5			38.3	%
Taxes, licenses and fees		(1.4	)		5.4			4.6			4.8			4.5			NM			13.9			19.4			39.6	%
Total commissions and expenses incurred		224.1			229.5			294.2			309.4			332.6			48.4	%		873.5			1,165.7			33.5	%
Less: commissions and expenses capitalized		(118.9	)		(122.7	)		(150.0	)		(157.6	)		(181.8	)		-52.9	%		(441.9	)		(612.0	)		-38.5	%
Amortization of DAC and VOBA		59.5			65.8			72.7			75.6			101.7			70.9	%		182.7			315.8			72.9	%

Net Operating and Acquisition Expenses	$	164.7		$	172.6		$	216.9		$	227.3		$	252.6			53.4	%	$	614.3		$	869.5			41.5	%

General and administrative expenses - basis
points on gross account values - Annualized ⁽²⁾		60			52			45			53			50			(10	)		61			50			(11	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	1,250.6		$	1,328.0		$	1,414.9		$	1,994.4		$	1,974.1					$	999.4		$	1,328.0
Deferral		118.9			122.7			150.0			157.6			181.8						441.9			612.0
Amortization		(59.5	)		(65.8	)		(72.7	)		(75.6	)		(101.7	)					(182.7	)		(315.8	)
Included in Total Operating Expenses		59.4			56.9			77.3			82.0			80.0						259.3			296.2
Adjustment related to realized (gains) losses
on available-for-sale securities		(3.5	)		(2.7	)		(4.1	)		(2.4	)		(1.1	)					(17.1	)		(10.4	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		21.5			32.7			57.3			(103.6	)		(2.7	)					86.5			(16.2	)
Business acquired		-			-			448.9			3.8			-						-			452.7
Balance at end of period	$	1,328.0		$	1,414.9		$	1,994.4		$	1,974.1		$	2,050.4					$	1,328.0		$	2,050.4

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	65.6		$	72.0		$	78.1		$	84.8		$	94.6					$	50.1		$	72.0
Deferral		9.5			9.4			9.8			10.0			10.6						35.8			39.7
Amortization		(3.1	)		(3.3	)		(3.0	)		(0.1	)		(4.3	)					(13.8	)		(10.7	)
Included in Income from Operations		6.4			6.1			6.8			9.8			6.3						22.0			29.0
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			-			(0.1	)		-						-			(0.1	)
Balance at end of period	$	72.0		$	78.1		$	84.8		$	94.6		$	100.9					$	72.0		$	100.9

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	118.1		$	129.4		$	139.9		$	154.6		$	173.4					$	85.5		$	129.4
Deferral		15.6			15.7			19.9			22.2			28.2						59.5			86.0
Amortization		(4.4	)		(5.2	)		(5.2	)		(3.3	)		(7.9	)					(15.6	)		(21.6	)
Included in Income from Operations		11.3			10.5			14.7			18.9			20.3						43.9			64.4
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			-			(0.1	)		-						-			(0.1	)
Balance at end of period	$	129.4		$	139.9		$	154.6		$	173.4		$	193.7					$	129.4		$	193.7

⁽¹⁾ Primarily broker-dealer revenue.
⁽²⁾ Includes distribution costs.

12/31/2006																												PAGE 18
*Individual Markets - Individual Annuities*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change

*Fixed Annuities - Balance at Beginning of Period*	$	11.375		$	10.840		$	10.563		$	19.533		$	18.939			66.5	%	$	11.448		$	10.840			-5.3	%

Business acquired		-			-			9.343			-			-			NM			-			9.343			NM
Gross deposits		0.486			0.471			0.872			1.062			1.100			126.3	%		1.987			3.505			76.4	%
Withdrawals & deaths		(0.370	)		(0.408	)		(1.037	)		(1.405	)		(1.162	)		NM			(1.410	)		(4.011	)		NM
Net flows		0.116			0.063			(0.164	)		(0.344	)		(0.062	)		NM			0.577			(0.506	)		NM
Transfer from (to) variable annuities		(0.766	)		(0.451	)		(0.395	)		(0.483	)		(0.561	)		26.8	%		(1.650	)		(1.891	)		-14.6	%
Interest credited		0.115			0.112			0.186			0.233			0.229			99.1	%		0.464			0.760			63.8	%
*Fixed Annuities - Gross*		10.840			10.563			19.533			18.939			18.545			71.1	%		10.840			18.545			71.1	%
Reinsurance ceded		(2.233	)		(2.202	)		(2.149	)		(2.045	)		(1.812	)		18.9	%		(2.233	)		(1.812	)		18.9	%
*Fixed Annuities - Balance at End of Period* ⁽¹⁾	$	8.607		$	8.362		$	17.384		$	16.894		$	16.733			94.4	%	$	8.607		$	16.733			94.4	%


*Variable Annuities - Balance at Beginning of Period*	$	35.276		$	37.655		$	40.495		$	41.537		$	43.977			24.7	%	$	30.684		$	37.655			22.7	%

Business acquired		-			-			0.250			-			-			NM			-			0.250			NM
Gross deposits		1.513			1.665			1.867			1.658			2.061			36.2	%		5.539			7.251			30.9	%
Withdrawals & deaths		(0.862	)		(0.959	)		(1.004	)		(1.011	)		(1.107	)		-28.4	%		(3.240	)		(4.080	)		-25.9	%
Net flows		0.651			0.706			0.864			0.648			0.954			46.5	%		2.299			3.171			37.9	%
Transfer from (to) fixed annuities		0.462			0.451			0.395			0.483			0.560			21.2	%		1.649			1.890			14.6	%
Investment increase & change in market value		1.266			1.682			(0.467	)		1.309			2.678			111.5	%		3.024			5.203			72.1	%
*Variable Annuities - Balance at End of Period* ⁽²⁾	$	37.655		$	40.495		$	41.537		$	43.977		$	48.169			27.9	%	$	37.655		$	48.169			27.9	%

*Total Annuities - Balance at Beginning of Period*	$	46.651		$	48.495		$	51.059		$	61.070		$	62.916			34.9	%	$	42.132		$	48.495			15.1	%

Business acquired		-			-			9.593			-			-			NM			-			9.593			NM
Gross deposits		1.999			2.136			2.740			2.720			3.161			58.1	%		7.526			10.756			42.9	%
Withdrawals & deaths		(1.232	)		(1.366	)		(2.040	)		(2.416	)		(2.269	)		-84.2	%		(4.650	)		(8.091	)		-74.0	%
Net flows		0.767			0.770			0.699			0.304			0.892			16.3	%		2.876			2.665			-7.3	%
Transfers		(0.304	)		-			0.000			0.000			(0.001	)		99.7	%		(0.001	)		(0.001	)		0.0	%
Interest credited & change in market value		1.381			1.794			(0.281	)		1.542			2.907			110.5	%		3.488			5.962			70.9	%
*Total Annuities - Gross*		48.495			51.059			61.070			62.916			66.714			37.6	%		48.495			66.714			37.6	%
Reinsurance ceded		(2.233	)		(2.202	)		(2.149	)		(2.045	)		(1.812	)		18.9	%		(2.233	)		(1.812	)		18.9	%
*Total Annuities (Net of Ceded) -* *Balance at End of Period*	$	46.262		$	48.857		$	58.921		$	60.872		$	64.902			40.3	%	$	46.262		$	64.902			40.3	%


*Variable Annuities Under Agreement - Included above*	$	0.197		$	0.190		$	0.173		$	0.169		$	0.170			-13.7	%	$	0.197		$	0.170			-13.7	%

*Incremental Deposits* ⁽³⁾:
Fixed annuities	$	0.472		$	0.461		$	0.861		$	1.058		$	1.086			130.1	%	$	1.931		$	3.466			79.5	%
Variable annuities		1.481			1.650			1.850			1.623			2.036			37.5	%		5.416			7.159			32.2	%
*Total Incremental Deposits*	$	1.953		$	2.111		$	2.711		$	2.681		$	3.122			59.9	%	$	7.346		$	10.625			44.6	%

Note: The withdrawals, net flows and ending account values for the second quarter of 2006 have been adjusted by $145 million to correct the amounts previously reported. Certain reclassifications have been made to properly distinguish between Fixed and Variable products. These changes did not have any impact on the income from operations of the segment or LFG.

⁽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.

12/31/2006																												PAGE 19
*Individual Markets - Individual Annuities*
*Account Values*
Unaudited [Billions of Dollars]



	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Fixed Annuities - excluding fixed portion of variable contracts*
Deposits	$	0.006		$	0.021		$	0.137		$	0.258		$	0.280			NM		$	0.117		$	0.697			NM
Withdrawals		(0.183	)		(0.243	)		(0.805	)		(1.148	)		(0.943	)		NM			(0.777	)		(3.140	)		NM
Net flows	$	(0.177	)	$	(0.222	)	$	(0.668	)	$	(0.890	)	$	(0.663	)		NM		$	(0.660	)	$	(2.443	)		NM

Gross fixed contract account values	$	6.918		$	6.745		$	12.190		$	11.766		$	11.221			62.2	%	$	6.918		$	11.221			62.2	%
Reinsurance ceded		(2.233	)		(2.202	)		(2.149	)		(2.045	)		(1.812	)		18.9	%		(2.233	)		(1.812	)		18.9	%
Net Fixed Contract Account Values	$	4.685		$	4.543		$	10.041		$	9.721		$	9.409			100.8	%	$	4.685		$	9.409			100.8	%


*Indexed Annuities*
Deposits	$	-		$	-		$	0.228		$	0.244		$	0.245			NM		$	-		$	0.717			NM
Withdrawals		-			-			(0.047	)		(0.068	)		(0.061	)		NM			-			(0.175	)		NM
Net flows	$	-		$	-		$	0.181		$	0.177		$	0.184			NM		$	-		$	0.542			NM

Equity-indexed Contract Account Values	$	-		$	-		$	3.210		$	3.454		$	3.711			NM		$	-		$	3.711			NM


*Fixed Portion of Variable Contracts*
Deposits	$	0.480		$	0.449		$	0.507		$	0.559		$	0.575			19.8	%	$	1.870		$	2.090			11.8	%
Withdrawals		(0.187	)		(0.164	)		(0.185	)		(0.190	)		(0.158	)		15.5	%		(0.632	)		(0.697	)		-10.3	%
Net flows	$	0.293		$	0.285		$	0.322		$	0.370		$	0.417			42.3	%	$	1.238		$	1.394			12.6	%

Fixed Portion of Variable Contract Account Values	$	3.922		$	3.819		$	4.132		$	3.719		$	3.613			-7.9	%	$	3.922		$	3.613			-7.9	%


*Variable Annuities -* *including fixed portion of variable contracts*
Deposits	$	1.993		$	2.114		$	2.374		$	2.218		$	2.635			32.2	%	$	7.409		$	9.342			26.1	%
Withdrawals		(1.049	)		(1.123	)		(1.188	)		(1.200	)		(1.265	)		-20.6	%		(3.872	)		(4.777	)		-23.4	%
Net Flows	$	0.945		$	0.991		$	1.186		$	1.017		$	1.371			45.1	%	$	3.536		$	4.565			29.1	%

Variable Contract Account Values	$	41.577		$	44.314		$	45.669		$	47.697		$	51.782			24.5	%	$	41.577		$	51.782			24.5	%

*Average Daily Variable Annuity Account Values*	$	36.089		$	39.947		$	41.214		$	42.342		$	46.514			28.9	%	$	33.255		$	42.504			27.8	%


Individual Annuity Product Spread Information																	Change									Change
																	(Basis Point)									(Basis Point)
Net investment income ^{(1) (2) (3)}		5.73	%		5.84	%		5.67	%		5.89	%		5.87	%		14			5.74	%		5.80	%		(6	)
Interest credited to policyholders ⁽⁴⁾		3.92	%		3.93	%		3.81	%		3.81	%		3.77	%		(15	)		3.94	%		3.82	%		(12	)
Spread ^{(1) (2) (3) (4)}		1.81	%		1.91	%		1.86	%		2.08	%		2.10	%		29			1.80	%		1.98	%		18

Note: The withdrawals, net flows and ending account values for the second quarter of 2006 have been adjusted by $145 million to correct the amounts previously reported. Certain reclassifications have been made to properly distinguish between Fixed and Variable products. These changes did not have any impact on the income from operations of the segment or LFG.
⁽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 10 bps in the fourth quarter of 2006, 7 bps in the third quarter of 2006, 2 bps in the second quarter of 2006, 9 bps in the first quarter of 2006 and 6 bps in the fourth quarter of 2005. The impact was 7 bps for the full year 2006 and 4 bps for the full year 2005.
⁽³⁾Prior period spreads for 2006 and 2005 have been updated to exclude the impact of the SFAS 133 adjustment on the Indexed Annuity business.
⁽⁴⁾ The third quarter 2006 spreads have been updated to reflect a reclassification of surrender charges within interest credited. No income statement changes were made as a result of this reclassification because the impact was immaterial.

12/31/2006													PAGE 20
*Employer Markets - Defined Contribution*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Revenue*
Surrender charges	$	2.0		$	2.3		$	2.1		$	1.7		$	1.5			-25.0	%	$	9.9		$	7.6			-23.2	%
Expense assessments		51.7			55.6			54.7			54.0			58.4			13.0	%		200.6			222.6			11.0	%
Net investment income		181.3			185.7			187.5			184.6			180.6			-0.4	%		711.5			738.2			3.8	%
Other revenue and fees		6.2			5.6			4.6			4.9			4.5			-27.4	%		25.5			19.6			-23.1	%
*Total Operating Revenue*		241.2			249.2			248.9			245.1			245.0			1.6	%		947.5			988.0			4.3	%

*Operating Expenses*
Interest credited to contractholder funds		101.1			100.7			102.4			103.1			104.4			3.3	%		401.8			410.5			2.2	%
Operating and acquisition expenses		77.2			73.3			69.5			74.5			80.2			3.9	%		284.5			297.4			4.5	%
*Total Operating Expenses*		178.3			174.0			171.9			177.6			184.6			3.5	%		686.3			708.0			3.2	%

Income from operations before Federal income taxes		62.9			75.2			77.0			67.5			60.4			-4.0	%		261.2			280.0			7.2	%
Federal income taxes		17.7			22.7			22.7			15.0			15.8			-10.7	%		74.1			76.2			2.8	%

*Income from Operations*	$	45.2		$	52.5		$	54.3		$	52.5		$	44.6			-1.3	%	$	187.1		$	203.8			8.9	%

*Effective tax rate*		28.2	%		30.2	%		29.4	%		22.3	%		26.2	%					28.4	%		27.2	%

*Average equity*	$	939.1		$	1,006.4		$	985.3		$	945.7		$	954.9					$	905.5		$	973.1
*Return on average equity*		19.3	%		20.9	%		22.0	%		22.2	%		18.7	%					20.7	%		20.9	%
*Income from Operations - basis points on* *average* *account values*		60			67			69			66			54						65			64

Operating and Acquisition Expenses
Commissions	$	25.1		$	26.2		$	22.2		$	23.4		$	20.8			-17.1	%	$	102.9		$	92.5			-10.1	%
General and administrative expenses		57.4			49.7			47.2			56.4			56.5			-1.6	%		215.6			209.8			-2.7	%
Taxes, licenses and fees		1.2			2.9			2.8			1.3			1.9			NM			7.8			9.0			15.4	%
Total commissions and expenses incurred		83.7			78.8			72.3			81.1			79.2			-5.4	%		326.2			311.3			-4.6	%
Less: commissions and expenses capitalized		(24.4	)		(25.5	)		(22.6	)		(21.5	)		(18.5	)		24.2	%		(97.3	)		(88.1	)		9.5	%
Amortization of DAC and VOBA		17.9			20.0			19.8			14.9			19.4			8.4	%		55.6			74.1			33.3	%

Net Operating and Acquisition Expenses	$	77.2		$	73.3		$	69.5		$	74.5		$	80.2			3.9	%	$	284.5		$	297.4			4.5	%

General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		77			64			60			71			68			(9	)		75			66			(9	)



Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	420.1		$	454.9		$	517.2		$	564.0		$	503.8					$	304.1		$	454.9
Deferral		24.4			25.5			22.6			21.5			18.5						97.3			88.1
Amortization		(17.9	)		(20.0	)		(19.8	)		(14.9	)		(19.4	)					(55.6	)		(74.1	)
Included in Total Operating Expenses		6.6			5.5			2.7			6.6			(0.9	)					41.8			13.9
Adjustment related to realized (gains) losses
on available-for-sale securities		(3.9	)		(4.4	)		(6.1	)		(2.0	)		(0.2	)					(16.8	)		(12.8	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		32.1			61.2			50.2			(64.8	)		(5.1	)					125.8			41.5
Business acquired		-			-			-			-			-						-			-
Other		-			-			-			-			-						-			-
Balance at end of period	$	454.9		$	517.2		$	564.0		$	503.8		$	497.6					$	454.9		$	497.6


⁽¹⁾ Includes distribution costs.

12/31/2006																			PAGE 21
*Employer Markets - Defined Contribution*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change

*Fixed Annuities - Balance at Beginning of Period*	$	10.686		$	11.009		$	11.033		$	11.050		$	11.061			3.5	%	$	10.837		$	11.009			1.6	%
Gross deposits⁽¹⁾		0.240			0.253			0.242			0.268			0.183			-23.8	%		1.083			0.946			-12.6	%
Withdrawals & deaths		(0.342	)		(0.328	)		(0.345	)		(0.426	)		(0.340	)		0.6	%		(1.463	)		(1.439	)		1.6	%
Net flows		(0.103	)		(0.075	)		(0.103	)		(0.159	)		(0.157	)		-52.4	%		(0.380	)		(0.493	)		-29.9	%
Transfer from (to) variable annuities		0.318			0.014			0.030			0.049			(0.011	)		NM			0.143			0.082			NM
Interest credited		0.108			0.085			0.090			0.121			0.112			3.7	%		0.408			0.408			-
*Fixed Annuities - Balance at End of Period*⁽²⁾	$	11.009		$	11.033		$	11.050		$	11.061		$	11.006			-		$	11.009		$	11.006			-


*Variable Annuities - Balance at Beginning of Period*	$	15.293		$	15.692		$	16.454		$	16.144		$	16.530			8.1	%	$	14.576		$	15.692			7.7	%
Gross deposits⁽¹⁾		0.616			0.669			0.714			0.583			0.559			-9.3	%		2.254			2.525			12.0	%
Withdrawals & deaths		(0.553	)		(0.676	)		(0.647	)		(0.565	)		(0.669	)		-21.0	%		(2.110	)		(2.557	)		-21.2	%
Net flows		0.062			(0.006	)		0.067			0.018			(0.110	)		NM			0.144			(0.032	)		NM
Transfer from (to) fixed annuities		(0.011	)		(0.015	)		(0.032	)		(0.046	)		0.008			172.7	%		(0.132	)		(0.084	)		36.1	%
Investment increase & change in market value		0.348			0.783			(0.345	)		0.414			1.047			200.9	%		1.104			1.899			71.9	%
*Variable Annuities - Balance at End of Period* ⁽³⁾	$	15.692		$	16.454		$	16.144		$	16.530		$	17.475			11.4	%	$	15.692		$	17.475			11.4	%

*Total Annuities - Balance at Beginning of Period*	$	25.979		$	26.701		$	27.487		$	27.194		$	27.591			6.2	%	$	25.413		$	26.701			5.1	%
Gross Deposits ⁽¹⁾		0.856			0.923			0.955			0.851			0.742			-13.3	%		3.337			3.471			4.0	%
Withdrawals & deaths		(0.896	)		(1.004	)		(0.992	)		(0.992	)		(1.009	)		-12.6	%		(3.573	)		(3.996	)		-11.8	%
Net flows		(0.040	)		(0.081	)		(0.036	)		(0.141	)		(0.267	)		NM			(0.236	)		(0.525	)		NM
Transfers		0.306			(0.001	)		(0.002	)		0.003			(0.002	)		NM			0.011			(0.002	)		NM
Interest credited & change in market value		0.456			0.867			(0.255	)		0.535			1.160			154.4	%		1.513			2.307			52.5	%
*Total Annuities - Balance at End of Period*	$	26.701		$	27.487		$	27.194		$	27.591		$	28.482			6.7	%	$	26.701		$	28.482			6.7	%

*Alliance Mutual Funds - Balance at Beginning of Period*	$	3.672		$	3.772		$	4.248		$	4.330		$	4.636			26.3	%	$	2.861		$	3.772			31.8	%
Plan/Participant Rollovers		0.063			0.125			0.021			0.057			0.168			166.7	%		0.422			0.371			-12.2	%
Additional contributions		0.160			0.193			0.183			0.178			0.189			18.1	%		0.644			0.743			15.4	%
Gross deposits		0.223			0.318			0.204			0.235			0.357			60.1	%		1.066			1.113			4.5	%
Withdrawals & deaths		(0.208	)		(0.056	)		(0.054	)		(0.057	)		(0.079	)		62.0	%		(0.410	)		(0.247	)		39.8	%
Net flows		0.014			0.262			0.150			0.178			0.277			NM			0.656			0.866			32.2	%
Transfers		(0.003	)		0.005			-			(0.015	)		0.003			200.0	%		(0.007	)		(0.007	)		NM
Interest credited & change in market value		0.088			0.209			(0.068	)		0.143			0.259			194.3	%		0.262			0.543			107.2	%
*Total Alliance Mutual Funds - Balance at End of Period* ⁽⁴⁾	$	3.772		$	4.248		$	4.330		$	4.636		$	5.175			37.2	%	$	3.772		$	5.175			37.2	%


*Total Defined Contribution Segment Account Values-*
*including Alliance Mutual Funds*
*Balance at Beginning of Period*	$	29.651		$	30.473		$	31.735		$	31.524		$	32.227			8.7	%	$	28.274		$	30.473			7.8	%
Gross deposits ⁽¹⁾		1.078			1.241			1.159			1.086			1.099			1.9	%		4.403			4.585			4.1	%
Withdrawals & deaths		(1.104	)		(1.060	)		(1.045	)		(1.049	)		(1.089	)		1.4	%		(3.983	)		(4.243	)		-6.5	%
Net flows		(0.026	)		0.181			0.114			0.037			0.010			138.5	%		0.419			0.342			-18.6	%
Transfers		0.304			0.005			(0.002	)		(0.012	)		0.000			-100.0	%		0.005			(0.009	)		NM
Interest credited & change in market value		0.544			1.077			(0.322	)		0.677			1.419			160.8	%		1.775			2.850			60.6	%
*Total Defined Contribution Segment Account Values-*
*Balance at End of Period*	$	30.473		$	31.735		$	31.524		$	32.227		$	33.656			10.4	%	$	30.473		$	33.656			10.4	%

*Variable Annuities Under Agreement - Included above*		0.019			0.018			0.017			0.017			0.017			-10.5	%		0.019			0.017			-10.5	%


*Incremental Deposits*⁽⁵⁾ :
Fixed Annuities	$	0.200		$	0.254		$	0.226		$	0.253		$	0.173			-13.5	%	$	1.020		$	0.905			-11.3	%
Variable Annuities		0.614			0.654			0.709			0.576			0.551			-10.3	%		2.245			2.490			10.9	%
*Total Annuities Incremental Deposits*		0.814			0.908			0.935			0.829			0.724			-11.1	%		3.265			3.395			4.0	%
Total Alliance Mutual Funds Incremental Deposits		0.223			0.318			0.204			0.235			0.357			60.1	%		1.066			1.114			4.5	%
*Total Defined Contribution Incremental Deposits*	$	1.036		$	1.226		$	1.139		$	1.064		$	1.080			4.2	%	$	4.331		$	4.509			4.1	%

Note: Certain reclassifications have been made to properly distinguish between Fixed and Variable products.
⁽¹⁾ Gross deposits for the second quarter and full year 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.

12/31/2006																			PAGE 22
*Employer Markets - Defined Contribution*
*Supplemental Data*
Unaudited [Billions of Dollars]



	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Fixed Annuities - excluding fixed portion of variable contracts*
Deposits⁽¹⁾	$	0.152		$	0.135		$	0.121		$	0.157		$	0.093			-38.8	%	$	0.563		$	0.506			-10.1	%
Withdrawals		(0.190	)		(0.108	)		(0.114	)		(0.162	)		(0.118	)		37.9	%		(0.679	)		(0.501	)		26.2	%
Net Flows	$	(0.039	)	$	0.027		$	0.008		$	(0.005	)	$	(0.024	)		38.5	%	$	(0.116	)	$	0.005			NM

Fixed Contract Account Values	$	4.654		$	4.690		$	4.717		$	4.758		$	4.797			3.1	%	$	4.654		$	4.797			3.1	%

*Fixed Portion of Variable Contracts*
Deposits	$	0.088		$	0.118		$	0.120		$	0.111		$	0.090			2.3	%	$	0.520		$	0.440			-15.4	%
Withdrawals		(0.152	)		(0.220	)		(0.231	)		(0.265	)		(0.222	)		-46.1	%		(0.784	)		(0.938	)		-19.6	%
Net Flows	$	(0.064	)	$	(0.102	)	$	(0.111	)	$	(0.154	)	$	(0.132	)		NM		$	(0.264	)	$	(0.499	)		-89.0	%

Fixed Portion of Variable Contract Account Values	$	6.355		$	6.343		$	6.333		$	6.303		$	6.210			-2.3	%	$	6.355		$	6.210			-2.3	%

*Variable Annuities - including fixed portion of variable contracts*
Deposits ⁽¹⁾	$	0.704		$	0.788		$	0.834		$	0.694		$	0.649			-7.8	%	$	2.774		$	2.965			6.9	%
Withdrawals		(0.705	)		(0.896	)		(0.878	)		(0.830	)		(0.891	)		-26.4	%		(2.894	)		(3.495	)		-20.8	%
Net Flows	$	(0.002	)	$	(0.108	)	$	(0.044	)	$	(0.136	)	$	(0.242	)		NM		$	(0.121	)	$	(0.530	)		NM

Variable Contract Account Values	$	22.047		$	22.797		$	22.477		$	22.833		$	23.685			7.4	%	$	22.047		$	23.685			7.4	%

*Average Daily Variable Annuity Account Values*	$	15.323		$	16.177		$	16.270		$	16.116		$	17.164			12.0	%	$	14.782		$	16.432			11.2	%


Total Annuity based Retirement Plan Product Spread Information⁽²⁾																	Change (Basis Point)									Change (Basis Point)
Net investment income ⁽³⁾		6.36	%		6.34	%		6.31	%		6.39	%		6.23	%		(13	)		6.29	%		6.32	%		3
Interest credited to policyholders		3.67	%		3.66	%		3.73	%		3.76	%		3.79	%		12			3.69	%		3.73	%		4
Spread ⁽³⁾		2.69	%		2.68	%		2.58	%		2.63	%		2.44	%		(25	)		2.60	%		2.59	%		(1	)


Note: Certain reclassifications have been made to properly distinguish between Fixed and Variable products.
⁽¹⁾ Gross deposits for the second quarter and full year 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 4 bps in the 4th quarter of 2006, 13 bps in the 3rd quarter of 2006, 12 bps in the 2nd quarter of 2006, 15 bps in the 1st quarter of 2006 and 17 bps in the 4th quarter of 2005.

12/31/2006																			PAGE 23
*Employer Markets - Executive Benefits*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Revenue*
Premiums	$	0.7		$	1.1		$	0.0		$	0.3		$	3.3			NM		$	8.6		$	4.7			-45.3	%
Surrender charges		0.0			0.0			0.0			0.0			0.0			NM			(0.4	)		0.0			NM
Mortality assessments		2.5			2.8			8.5			7.2			8.5			240.0	%		8.9			27.0			203.4	%
Expense assessments		6.1			3.3			4.9			4.5			5.5			-9.8	%		18.6			18.1			-2.7	%
Net investment income		51.0			48.7			86.5			91.0			90.5			77.5	%		186.7			316.6			69.6	%
Other revenue and fees		1.3			1.4			1.3			1.3			1.3						5.1			5.3			3.9	%
*Total Operating Revenue*		61.6			57.2			101.2			104.3			109.1			77.1	%		227.4			371.8			63.5	%

*Operating Expenses*
Insurance benefits		31.2			32.8			30.4			35.6			39.7			27.2	%		133.7			138.5			3.6	%
Interest credited to contractholder funds		9.5			9.3			40.2			39.9			42.0			NM			38.8			131.4			238.7	%
Operating and acquisition expenses		7.3			4.6			7.2			11.7			9.1			24.7	%		29.2			32.5			11.3	%
*Total Operating Expenses*		48.0			46.7			77.7			87.2			90.8			89.2	%		201.7			302.3			49.9	%

Income from operations before Federal income taxes		13.6			10.5			23.5			17.1			18.3			34.6	%		25.7			69.4			170.0	%

Federal income taxes		4.1			3.0			7.3			4.3			5.6			36.6	%		6.1			20.2			231.1	%

*Income from Operations*	$	9.5		$	7.5		$	16.2		$	12.8		$	12.7			33.7	%	$	19.6		$	49.2			151.0	%

*Effective tax rate*		30.0	%		28.5	%		31.0	%		25.2	%		30.7	%					23.6	%		29.1	%

*Average equity*	$	321.8		$	334.5		$	524.8		$	519.8		$	528.2					$	297.7		$	476.8
*Return on average equity*		11.8	%		9.0	%		12.4	%		9.8	%		9.6	%					6.6	%		10.3	%

Operating and Acquisition Expenses
Commissions	$	5.1		$	5.1		$	8.1		$	7.1		$	11.2			119.6	%	$	22.0		$	31.5			43.2	%
General and administrative expenses		5.0			3.7			2.8			6.2			4.8			-4.0	%		19.0			17.5			-7.9	%
Taxes, licenses and fees		1.0			1.1			1.3			1.4			1.3			30.0	%		4.5			5.0			11.1	%
Total commissions and expenses incurred		11.1			9.9			12.2			14.6			17.3			55.9	%		45.4			54.0			18.9	%
Less: commissions and expenses capitalized		(5.1	)		(5.7	)		(8.0	)		(6.7	)		(10.9	)		NM			(23.1	)		(31.4	)		-35.9	%
Amortization of DAC and VOBA		1.3			0.3			2.9			3.8			2.8			115.4	%		6.9			9.8			42.0	%

Net Operating and Acquisition Expenses	$	7.3		$	4.5		$	7.2		$	11.7		$	9.1			24.7	%	$	29.2		$	32.5			11.3	%

General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		49			36			16			36			27			(22	)		47			28			(19	)



Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	109.8		$	113.6		$	119.0		$	274.1		$	258.0					$	97.3		$	113.6
Deferral		5.1			5.7			8.0			6.7			10.9						23.1			31.4
Amortization		(1.3	)		(0.3	)		(2.9	)		(3.8	)		(2.8	)					(6.9	)		(9.8	)
Included in Total Operating Expenses		3.8			5.4			5.1			2.9			8.2						16.2			21.6
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			-			(0.7	)		(0.8	)					-			(1.5	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		-			-			7.6			(18.3	)		(0.1	)					-			(10.9	)
Business acquired		-			-			142.5			-			-						-			142.5
Other		-			-			-			-			-						(0.0	)		-
Balance at end of period	$	113.6		$	119.0		$	274.1		$	258.0		$	265.3					$	113.6		$	265.3

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	16.9		$	17.9		$	18.9		$	19.7		$	20.3					$	15.5		$	17.9
Deferral		1.2			1.0			1.0			0.9			1.5						3.9			4.4
Amortization		(0.3	)		(0.0	)		(0.2	)		(0.3	)		(0.2	)					(1.5	)		(0.7	)
Included in Income from Operations		0.9			1.0			0.8			0.6			1.4						2.4			3.8
Balance at end of period	$	17.9		$	18.9		$	19.7		$	20.3		$	21.7					$	17.9		$	21.7

⁽¹⁾ Includes distribution costs.

12/31/2006																			PAGE 24
*Employer Markets - Executive Benefits*
*Account Value Roll Forward and Supplemental Data*
Unaudited [Billions of Dollars]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
COLI/BOLI- Balance Beginning-of-Period	$	1.256		$	1.318		$	1.387		$	4.228		$	4.252			238.5	%	$	1.122		$	1.318			17.5	%
Business acquired		-			-			2.795			-			-			NM			-			2.795			NM
Deposits		0.052			0.047			0.077			0.058			0.085			63.5	%		0.209			0.267			27.8	%
Withdrawals & deaths		(0.002	)		(0.007	)		(0.042	)		(0.069	)		(0.092	)		NM			(0.048	)		(0.210	)		NM
Net flows		0.049			0.039			0.035			(0.011	)		(0.007	)		NM			0.161			0.057			-64.6	%
Policyholder assessments		(0.011	)		(0.009	)		(0.017	)		(0.016	)		(0.019	)		-72.7	%		(0.035	)		(0.060	)		-71.4	%
Interest credited and change in market value		0.023			0.038			0.028			0.051			0.079			243.5	%		0.070			0.196			180.0	%
*COLI/BOLI-Balance End-of-Period*	$	1.318		$	1.387		$	4.228		$	4.252		$	4.305			226.6	%	$	1.318		$	4.305			226.6	%


*COLI/BOLI In-Force*	$	7.729		$	7.979		$	15.373		$	15.342		$	15.645			102.4	%	$	7.729		$	15.645			102.4	%


*Run Off Institutional Pensions Account Values -*
*Balance at End of Period*	$	2.737		$	2.753		$	2.707		$	2.711		$	2.720			-0.6	%	$	2.737		$	2.720			-0.6	%

12/31/2006																PAGE 25
*Employer Markets - Group Protection*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended															Year Ended
	Dec.		March		June			Sept.			Dec.			%		Dec.		Dec.			%
	2005		2006		2006			2006			2006			Change		2005		2006			Change
*Operating Revenue*
Premiums	$	-	$	-	$	328.9		$	304.1		$	315.9			NM	$	-	$	949.0			NM
Net investment income		-		-		25.1			27.1			28.0			NM		-		80.2			NM
Other revenue and fees		-		-		0.8			0.9			0.8			NM		-		2.5			NM
*Total Operating Revenue*		-		-		354.9			332.1			344.8			NM		-		1,031.8			NM
						(0.0	)		(0.0	)		(0.0	)
*Operating Expenses*
Insurance benefits		-		-		226.0			213.3			224.0			NM		-		663.3			NM
Operating and acquisition expenses		-		-		72.0			74.6			69.6			NM		-		216.2			NM
*Total Operating Expenses*		-		-		297.9			287.9			293.6			NM		-		879.5			NM

Income from operations before Federal income taxes		-		-		56.9			44.2			51.2			NM		-		152.3			NM

Federal income taxes		-		-		19.9			15.5			17.9			NM		-		53.3			NM

*Income from Operations*	$	-	$	-	$	37.0		$	28.8		$	33.2			NM	$	-	$	99.0			NM

*Effective tax rate*						35.0	%		35.0	%		35.0	%						35.0	%

*Average equity*					$	861.0		$	896.8		$	913.4						$	890.4
*Return on average equity*						17.2	%		12.8	%		14.6	%						14.8	%


Operating and Acquisition Expenses
Commissions	$	-	$	-	$	37.3		$	36.0		$	36.8			NM	$	-	$	110.1			NM
General and administrative expenses		-		-		31.9			35.5			37.5			NM		-		104.8			NM
Taxes, licenses and fees		-		-		8.0			7.8			6.9			NM		-		22.6			NM
Total commissions and expenses incurred		-		-		77.1			79.3			81.2			NM		-		237.6			NM
Less commissions and expenses capitalized		-		-		(11.2	)		(11.3	)		(14.8	)		NM		-		(37.2	)		NM
Amortization of DAC and VOBA		-		-		6.0			6.6			3.2			NM		-		15.9			NM

Net Operating and Acquisition Expenses	$	-	$	-	$	72.0		$	74.6		$	69.6			NM	$	-	$	216.2			NM

General and administrative expenses as a
percentage of premiums		-		-		9.7	%		11.7	%		11.9	%		NM		-		11.0	%		NM



Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	-	$	-	$	-		$	121.4		$	126.1				$	-	$	-
Deferral		-		-		11.2			11.3			14.8					-		37.2
Amortization		-		-		(6.0	)		(6.6	)		(3.2	)				-		(15.9	)
Included in Total Operating Expenses		-		-		5.2			4.7			11.5					-		21.4
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		$	126.1		$	137.6				$	-	$	137.6

12/31/2006																PAGE 26
*Employer Markets - Group Protection*
*Supplemental Data*
Unaudited [Millions of Dollars]


	Three Months Ended															Year Ended
	Dec.		March		June			Sept.			Dec.			%		Dec.		Dec.			%
	2005		2006		2006			2006			2006			Change		2005		2006			Change

*Annualized Sales*
Life	$	-	$	-	$	15.3		$	19.4		$	43.1			NM	$	-	$	77.8			NM
Disability		-		-		22.9			24.7			56.9			NM		-		104.5			NM
Dental		-		-		7.1			6.1			13.1			NM		-		26.4			NM

*Premiums:*
Life	$	-	$	-	$	111.6		$	109.9		$	112.5			NM	$	-	$	334.0			NM
Disability		-		-		134.0			134.8			138.5			NM		-		407.2			NM
Dental		-		-		31.4			31.7			31.8			NM		-		94.9			NM
Other		-		-		51.9			27.8			33.2			NM		-		112.8			NM

Total	$	-	$	-	$	328.9		$	304.1		$	315.9			NM	$	-	$	949.0			NM
												0.0							(0.046	)
*Product Line Results:*
Life	$	-	$	-	$	13.5		$	9.8		$	13.6			NM	$	-	$	36.9			NM
Disability		-		-		21.1			16.1			15.5			NM		-		52.7			NM
Dental		-		-		1.4			2.2			3.0			NM		-		6.6			NM
Other		-		-		1.0			0.7			1.1			NM		-		2.8			NM

Total	$	-	$	-	$	37.0		$	28.8		$	33.2			NM	$	-	$	99.0			NM
												0.0							0.018
*Loss Ratios:*
Life		-		-		67.8	%		72.3	%		69.0	%		NM		-		69.7	%		NM
Disability		-		-		59.4	%		64.5	%		69.3	%		NM		-		64.4	%		NM
Dental		-		-		76.3	%		71.7	%		68.7	%		NM		-		72.2	%		NM

Combined loss ratios		-		-		64.7	%		68.4	%		69.1	%		NM		-		67.4	%		NM

12/31/2006																			PAGE 27
*Investment Management*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Revenue*
Investment advisory fees - External	$	70.9		$	77.8		$	81.2		$	82.4		$	86.5			22.0	%	$	255.8		$	327.8			28.1	%
Investment advisory fees - Insurance-related		24.5			25.1			23.5			23.7			24.7			0.8	%		98.8			97.0			-1.8	%
Other revenue and fees		32.5			36.7			30.0			34.3			37.7			16.0	%		120.6			138.7			15.0	%
*Operating Revenue*		127.9			139.6			134.7			140.4			148.9			16.4	%		475.3			563.5			18.6	%

*Operating Expenses*
Operating and administrative expenses		114.4			116.1			116.4			120.3			126.2			10.3	%		449.0			478.9			6.7	%
*Total Operating Expenses*		114.4			116.1			116.4			120.3			126.2			10.3	%		449.0			478.9			6.7	%

Income (Loss) from operations before Federal income taxes		13.5			23.5			18.3			20.1			22.7			68.1	%		26.3			84.5			221.3	%

Federal income taxes		4.6			8.2			6.3			6.7			8.3			80.4	%		9.5			29.4			209.5	%

*Income (Loss) from Operations*	$	8.9		$	15.3		$	12.0		$	13.4		$	14.4			61.8	%	$	16.8		$	55.1			228.0	%

*Effective tax rate*		34.1	%		34.9	%		34.4	%		33.1	%		36.5	%					36.1	%		34.8	%

*Pre-tax Operating Margin* ⁽¹⁾		10.6	%		16.8	%		13.6	%		14.3	%		15.2	%					5.5	%		15.0	%
*After-tax Operating Margin* ⁽²⁾		7.0	%		11.0	%		8.9	%		9.6	%		9.7	%					3.5	%		9.8	%


Operating and Acquisition Expenses
General and administrative expenses	$	97.8		$	96.1		$	99.4		$	104.2		$	109.1			11.6	%	$	384.9		$	408.8			6.2	%
Depreciation and amortization		2.0			2.2			2.4			2.2			2.4			20.0	%		8.7			9.3			6.9	%
Sub-advisory fees		10.1			11.0			10.6			9.8			9.8			-3.0	%		37.3			41.2			10.5	%
Total general and administrative expenses		109.9			109.3			112.4			116.2			121.3			10.4	%		430.9			459.2			6.6	%
Taxes, licenses and fees		2.6			4.8			2.4			2.7			3.5			34.6	%		10.4			13.4			28.8	%
Amortization of intangibles		2.0			2.0			1.6			1.4			1.4			-30.0	%		7.8			6.3			-19.2	%
Total expenses incurred	$	114.4		$	116.1		$	116.4		$	120.3		$	126.2			10.3	%	$	449.0		$	478.9			6.7	%

⁽¹⁾ Pre-tax operating margin is calculated as Income (Loss) from Operations before Federal income taxes divided by Operating Revenue.

⁽²⁾ After-tax operating margin is calculated as Income (Loss) from Operations divided by Operating Revenue.

12/31/2006																			PAGE 28
*Investment Management*
*Assets Under Management Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change

Retail Fixed - Balance-Beginning-of-Period	$	9.371		$	9.625		$	9.761		$	10.007		$	10.522			12.3	%	$	8.457		$	9.625			13.8	%
Sales ⁽¹⁾		0.965			0.951			1.034			0.981			1.091			13.1	%		3.718			4.057			9.1	%
Redemptions		(0.779	)		(0.805	)		(0.824	)		(0.810	)		(0.859	)		-10.3	%		(2.764	)		(3.298	)		-19.3	%
Transfers		0.026			(0.056	)		0.030			0.012			0.028			7.7	%		0.011			0.014			27.3	%
Net Flows		0.212			0.089			0.240			0.183			0.261			23.1	%		0.965			0.773			-19.9	%
Net investment gains and change in market value		0.043			0.046			0.007			0.332			0.211			NM			0.203			0.595			193.1	%
Balance at End-of-Period	$	9.625		$	9.761		$	10.007		$	10.522		$	10.993			14.2	%	$	9.625		$	10.993			14.2	%

Retail Equity - Balance-Beginning-of-Period	$	30.988		$	32.732		$	36.500		$	36.035		$	36.954			19.3	%	$	24.278		$	32.732			34.8	%
Sales ⁽¹⁾		2.664			3.069			2.249			1.516			2.101			-21.1	%		11.383			8.935			-21.5	%
Redemptions		(1.700	)		(1.840	)		(2.134	)		(1.984	)		(2.472	)		-45.4	%		(5.707	)		(8.430	)		-47.7	%
Transfers		(0.027	)		(0.013	)		(0.032	)		(0.016	)		(0.030	)		-11.1	%		(0.198	)		(0.091	)		54.0	%
Net Flows		0.936			1.216			0.082			(0.483	)		(0.401	)		NM			5.477			0.414			-92.4	%
Net investment gains and change in market value		0.807			2.552			(0.547	)		1.402			3.074			280.9	%		2.977			6.481			117.7	%
Balance at End-of-Period	$	32.732		$	36.500		$	36.035		$	36.954		$	39.627			21.1	%	$	32.732		$	39.627			21.1	%

Total Retail - Balance-Beginning-of-Period	$	40.359		$	42.357		$	46.261		$	46.042		$	47.476			17.6	%	$	32.735		$	42.357			29.4	%
Retail sales-Annuities		0.713			0.885			0.869			0.960			0.932			30.7	%		2.768			3.647			31.8	%
Retail sales-Mutual Funds		1.657			1.329			1.370			1.151			1.768			6.7	%		5.994			5.617			-6.3	%
Retail sales-Managed Accounts & Other		1.260			1.806			1.043			0.386			0.493			-60.9	%		6.339			3.728			-41.2	%
Total Retail Sales		3.629			4.019			3.282			2.497			3.192			-12.0	%		15.101			12.991			-14.0	%
Redemptions		(2.479	)		(2.645	)		(2.959	)		(2.794	)		(3.330	)		-34.3	%		(8.472	)		(11.728	)		-38.4	%
Transfers		(0.002	)		(0.069	)		(0.002	)		(0.003	)		(0.002	)					(0.187	)		(0.077	)		58.8	%
Net Flows		1.148			1.305			0.322			(0.300	)		(0.140	)		NM			6.442			1.187			-81.6	%
Net investment gains and change in market value		0.850			2.598			(0.540	)		1.733			3.285			286.5	%		3.180			7.077			122.5	%
Balance at End-of-Period	$	42.357		$	46.261		$	46.042		$	47.476		$	50.620			19.5	%	$	42.357		$	50.620			19.5	%


Institutional Fixed - Balance-Beginning-of-Period	$	13.964		$	14.699		$	17.262		$	18.154		$	19.387			38.8	%	$	11.547		$	14.699			27.3	%
Inflows ⁽¹⁾		1.175			3.080			1.634			1.133			3.644			210.1	%		5.214			9.490			82.0	%
Withdrawals/terminations		(0.483	)		(0.447	)		(0.750	)		(0.516	)		(0.487	)		-0.8	%		(2.209	)		(2.200	)		0.4	%
Transfers		(0.001	)		0.002			0.008			(0.002	)		0.001			NM			(0.006	)		0.010			NM
Net Flows		0.691			2.636			0.892			0.615			3.157			NM			2.998			7.300			143.5	%
Net investment gains and change in market value		0.044			(0.074	)		0.001			0.618			0.297			NM			0.154			0.842			NM
Balance at End-of-Period	$	14.699		$	17.262		$	18.154		$	19.387		$	22.841			55.4	%	$	14.699		$	22.841			55.4	%

Institutional Equity - Balance-Beginning-of-Period	$	18.951		$	20.576		$	22.906		$	21.729		$	22.649			19.5	%	$	12.849		$	20.576			60.1	%
Inflows⁽¹⁾		3.658			1.964			1.130			1.274			1.244			-66.0	%		11.089			5.612			-49.4	%
Withdrawals/terminations		(2.617	)		(1.008	)		(1.327	)		(0.844	)		(1.734	)		33.7	%		(5.167	)		(4.913	)		4.9	%
Transfers		0.001			0.000			(0.008	)		0.001			(0.001	)		NM			(0.142	)		(0.007	)		95.1	%
Net Flows		1.041			0.956			(0.205	)		0.431			(0.490	)		NM			5.780			0.691			-88.0	%
Net investment gains and change in market value		0.584			1.373			(0.971	)		0.489			1.687			188.9	%		1.948			2.578			32.3	%
Balance at End-of-Period	$	20.576		$	22.906		$	21.729		$	22.649		$	23.845			15.9	%	$	20.576		$	23.845			15.9	%

Total Institutional - Balance-Beginning-of-Period	$	32.915		$	35.276		$	40.167		$	39.883		$	42.035			27.7	%	$	24.396		$	35.276			44.6	%
Inflows		4.833			5.044			2.764			2.406			4.888			1.1	%		16.302			15.102			-7.4	%
Withdrawals/terminations		(3.100	)		(1.454	)		(2.078	)		(1.360	)		(2.221	)		28.4	%		(7.376	)		(7.113	)		3.6	%
Transfers		(0.001	)		0.003			0.000			(0.000	)		(0.000	)		100.0	%		(0.148	)		0.002			NM
Net Flows		1.733			3.592			0.687			1.046			2.666			53.8	%		8.778			7.991			-9.0	%
Net investment gains and change in market value		0.629			1.299			(0.971	)		1.107			1.984			215.4	%		2.101			3.419			62.7	%
Balance at End-of-Period	$	35.276		$	40.167		$	39.883		$	42.035		$	46.686			32.3	%	$	35.276		$	46.686			32.3	%

Total Retail and Institutional - At End-of-Period	$	77.633		$	86.428		$	85.926		$	89.511		$	97.307			25.3	%	$	77.633		$	97.307			25.3	%

General Account Assets-End-of-Period ⁽²⁾	$	43.086		$	41.995		$	65.637		$	67.410		$	67.066			55.7	%	$	43.086		$	67.066			55.7	%

Total Assets Under Management
At End-of-Period	$	120.719		$	128.423		$	151.563		$	156.921		$	164.373			36.2	%	$	120.719		$	164.373			36.2	%

Total Retail and Institutional - Net Flows	$	2.881		$	4.898		$	1.008		$	0.745		$	2.526			-12.3	%	$	15.220		$	9.177			-39.7	%

Subadvised Assets, included in Assets
Under Management above
Retail	$	15.388		$	17.320		$	16.899		$	16.421		$	18.023			17.1	%	$	15.388		$	18.023			17.1	%
Institutional		5.114			5.608			4.593			4.560			4.648			-9.1	%		5.114			4.648			-9.1	%
Total Subadvised Assets	$	20.503		$	22.928		$	21.491		$	20.982		$	22.671			10.6	%	$	20.503		$	22.671			10.6	%


⁽¹⁾ Sales and in-flows include dividend reinvestments.
⁽²⁾ Balances reflect $26.1 billion of assets assumed as a result of the merger with Jefferson-Pilot on April 4, 2006.

12/31/2006																									PAGE 29
*Lincoln UK*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Revenue*
Premiums	$	15.4		$	16.6		$	19.9		$	21.1		$	21.0			36.4	%	$	63.3		$	78.6			24.2	%
Mortality assessments		7.3			7.8			8.9			8.7			9.0			23.3	%		34.8			34.4			-1.1	%
Expense assessments		22.0			28.0			34.7			23.9			36.8			67.3	%		141.6			123.5			-12.8	%
Net investment income		17.8			17.0			17.8			18.6			18.0			1.1	%		78.6			71.4			-9.2	%
Other revenue and fees		-			0.1			-			-			-			NM			0.1			0.1			-
*Total Operating Revenue*		62.6			69.5			81.4			72.3			84.8			35.5	%		318.4			308.0			-3.3	%

*Operating Expenses*
Insurance benefits		27.5			25.4			27.5			25.0			30.4			10.5	%		116.0			108.2			-6.7	%
Operating and acquisition expenses		14.3			27.6			38.9			34.5			39.1			173.4	%		135.7			140.0			3.2	%
*Total Operating Expenses*		41.8			53.0			66.3			59.5			69.5			66.3	%		251.8			248.2			-1.4	%

Income from operations before Federal income taxes		20.8			16.5			15.1			12.8			15.3			-26.4	%		66.6			59.8			-10.2	%

Federal income taxes		7.2			5.8			5.2			4.5			5.4			-25.0	%		23.3			20.9			-10.3	%

*Income from Operations*	$	13.6		$	10.7		$	9.9		$	8.3		$	9.9			-27.2	%	$	43.3		$	38.9			-10.2	%

*Effective tax rate on*
*Income from Operations*		34.7	%		35.1	%		34.4	%		35.2	%		35.3	%					35.0	%		34.9	%

*Average equity*	$	447.8		$	427.0		$	417.8		$	406.0		$	392.3					$	446.8		$	410.8
*Return on average equity*		12.1	%		10.0	%		9.5	%		8.2	%		10.1	%					9.7	%		9.5	%

Operating and Acquisition Expenses

Commissions	$	0.1		$	0.9		$	1.1		$	1.4		$	1.1			NM		$	2.3		$	4.5			95.7	%
General and administrative expenses		24.2			22.7			23.9			25.1			27.9			15.3	%		98.3			99.5			1.2	%
Total commissions and expenses incurred		24.3			23.6			25.0			26.4			29.0			19.3	%		100.6			104.0			3.4	%
Less: commissions and expenses capitalized		(0.7	)		(0.5	)		(0.1	)		(0.6	)		(0.7	)					(2.8	)		(1.9	)		32.1	%
Amortization of DAC and VOBA		(9.3	)		4.5			13.9			8.7			10.8			216.1	%		37.9			37.9
																										NM
Net Operating and Acquisition Expenses	$	14.3		$	27.6		$	38.9		$	34.5		$	39.1			173.4	%	$	135.7		$	140.0			3.2	%



Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	753.5		$	743.4		$	747.2		$	781.7		$	783.4					$	867.0		$	743.4
Deferral		0.7			0.5			0.1			0.6			0.7						2.8			1.9
Amortization		9.3			(4.5	)		(13.9	)		(8.7	)		(10.8	)					(37.9	)		(37.9	)
Included in Total Benefits and Expenses		10.0			(4.0	)		(13.8	)		(8.0	)		(10.1	)					(35.1	)		(36.0	)
Foreign currency translation adjustment		(20.0	)		7.7			48.3			9.7			35.7						(88.5	)		101.5
Balance at end of period	$	743.4		$	747.2		$	781.7		$	783.4		$	809.0					$	743.4		$	809.0

Roll Forward of Deferred Front-End Load

Balance at beginning of period	$	365.8		$	363.1		$	364.5		$	381.2		$	392.8					$	437.5		$	363.1
Deferral		0.7			1.0			0.5			0.8			0.6						4.2			3.0
Amortization		6.0			(3.4	)		(7.4	)		6.1			(6.8	)					(34.8	)		(11.6	)
Included in Income from Operations		6.7			(2.4	)		(6.9	)		6.9			(6.2	)					(30.6	)		(8.5	)
Foreign currency translation adjustment		(9.5	)		3.8			23.6			4.7			17.9						(43.9	)		49.9
Balance at end of period	$	363.1		$	364.5		$	381.2		$	392.8		$	404.5					$	363.1		$	404.5

12/31/2006																									PAGE 30
*Lincoln UK*
*Operational Data*
Unaudited [Billions of Dollars]

	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change

Unit Linked Assets
Balance-Beg-of-Period	$	7.180		$	7.320		$	7.754		$	7.857		$	8.118			13.1	%	$	7.186		$	7.320			1.9	%

Deposits		0.156			0.069			0.073			0.105			0.071			-54.5	%		0.389			0.318			-18.3	%
Withdrawals (including charges) and Deaths		(0.178	)		(0.186	)		(0.201	)		(0.218	)		(0.232	)		-30.3	%		(0.728	)		(0.838	)		-15.1	%
Net Flows		(0.023	)		(0.118	)		(0.128	)		(0.113	)		(0.161	)		NM			(0.339	)		(0.520	)		-53.4	%
Investment income and change in market value		0.347			0.479			(0.267	)		0.275			0.424			22.2	%		1.243			0.911			-26.7	%
Foreign Currency Adjustment		(0.184	)		0.072			0.500			0.098			0.376			NM			(0.770	)		1.046			NM
Unit Linked Assets - End-of-Period	$	7.320		$	7.754		$	7.857		$	8.118		$	8.757			19.6	%	$	7.320		$	8.757			19.6	%

Individual Life In-force	$	17.521		$	17.744		$	18.289		$	18.464		$	19.345			10.4	%	$	17.521		$	19.345			10.4	%

Exchange Rate - Dollars to Pounds
For-the-Period		1.747			1.754			1.829			1.878			1.930			10.5	%		1.821			1.847			1.4	%
End-of-Period		1.719			1.737			1.849			1.872			1.958			13.9	%		1.719			1.958			13.9	%

12/31/2006																						PAGE 31
*Lincoln Financial Media*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
*Operating Results*
Communications revenues, net	$	-		$	-		$	57.5		$	59.8		$	70.0			NM		$	-		$	187.4			NM
Cost of sales		-			-			7.6			10.3			15.2			NM			-			33.1			NM
Operating expenses		-			-			22.2			21.0			21.7			NM			-			65.0			NM
Station operating income		-			-			27.7			28.5			33.1			NM			-			89.2			NM
Depreciation and amortization		-			-			6.0			2.7			2.6			NM			-			11.3			NM
General and administrative expenses		-			-			1.8			1.4			1.2			NM			-			4.4			NM
Taxes, licenses and fees		-			-			-			1.5			1.8			NM			-			3.2			NM
Net interest expense and other		-			-			0.3			0.3			0.3			NM			-			0.9			NM

Income from operations before Federal income taxes		-			-			19.6			22.6			27.2			NM			-			69.4			NM

Federal income taxes		-			-			7.7			8.0			9.6			NM			-			25.3			NM

*Income from Operations*	$	-		$	-		$	11.9		$	14.6		$	17.5			NM		$	-		$	44.0			NM

*Effective tax rate on*
*Income from Operations*								39.3	%		35.4	%		35.4	%								36.5	%




*Other Operations* ⁽¹⁾
Unaudited [Millions of Dollars]

		Three Months Ended																		Year Ended
		Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
		2005			2006			2006			2006			2006			Change			2005			2006			Change

*Operating Revenue*
Premiums	$	0.1		$	0.3		$	0.3		$	0.9		$	3.8			NM		$	1.0		$	5.3			NM
Net investment income		40.3			39.6			72.1			59.6			53.1			31.8	%		203.3			224.3			10.3	%
Amortization of deferred gain on
indemnity reinsurance ⁽²⁾		18.9			18.8			18.8			18.8			18.8			-0.5	%		75.7			75.0			-0.9	%
Other revenue and fees		(6.1	)		(1.8	)		(0.1	)		(4.5	)		(4.9	)		19.7	%		(6.1	)		(11.3	)		-85.2	%
Inter-segment elimination of investment advisory fees		(24.5	)		(25.1	)		(23.5	)		(23.3	)		(25.2	)		-2.9	%		(98.8	)		(96.9	)		1.9	%
*Total Operating Revenue*		28.9			31.7			67.6			51.4			45.6			57.8	%		175.2			196.4			12.1	%

*Operating Expenses*
Insurance benefits		(0.5	)		1.6			4.1			3.9			7.3			NM			0.1			17.0			NM
Interest credited to contractholder funds		34.5			33.9			36.5			36.1			37.1			7.5	%		133.0			143.7			8.0	%
Operating and acquisition expenses		2.4			(1.2	)		28.5			(7.3	)		33.8			NM			59.4			53.7			-9.6	%
Taxes, licenses and fees		0.9			3.0			0.6			2.6			1.2			33.3	%		4.3			7.4			72.1	%
Interest		21.8			21.5			64.3			66.7			64.3			195.0	%		87.2			216.9			148.7	%
Inter-segment elimination of investment advisory fees		(24.5	)		(25.1	)		(23.5	)		(23.3	)		(25.2	)		-2.9	%		(98.8	)		(96.9	)		1.9	%
*Total Operating Expenses*		34.6			33.7			110.6			78.8			118.6			242.8	%		185.4			341.7			84.3	%

Income (loss) from operations before Federal income taxes		(5.7	)		(2.0	)		(43.1	)		(27.4	)		(73.0	)		NM			(10.2	)		(145.4	)		NM

Federal income taxes ⁽³⁾		(15.4	)		(2.2	)		(17.0	)		(15.9	)		(34.5	)		NM			(64.5	)		(69.5	)		-7.8	%

*Income (loss) from Operations*	$	9.6		$	0.1		$	(26.1	)	$	(11.5	)	$	(38.4	)		NM		$	54.3		$	(75.8	)		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

12/31/2006																					PAGE 32
*Consolidated Domestic Deposits/Account Balances*
Unaudited [Billions of Dollars]

	Three Months Ended																		Year Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2005			2006			2006			2006			2006			Change			2005			2006			Change
Deposits - For the Period
Individual Markets - Fixed Annuities	$	0.486		$	0.471		$	0.872		$	1.062		$	1.100			126.3	%	$	1.987		$	3.505			76.4	%
Individual Markets - Variable Annuities		1.513			1.665			1.867			1.658			2.061			36.2	%		5.539			7.251			30.9	%
Individual Markets - Life Insurance		0.596			0.488			1.023			0.753			1.101			84.7	%		2.030			3.365			65.8	%
Employer Markets - Fixed Annuities		0.240			0.253			0.242			0.268			0.183			-23.8	%		1.083			0.946			-12.7	%
Employer Markets - Variable Products⁽¹⁾		0.839			0.987			0.918			0.818			0.916			9.2	%		3.320			3.639			9.6	%
Employer Markets - Executive Benefits		0.052			0.047			0.077			0.058			0.085			63.5	%		0.209			0.267			27.8	%
Inv Mgmt - Annuities		0.713			0.885			0.869			0.960			0.932			30.7	%		2.768			3.647			31.8	%
Inv Mgmt - Mutual Funds		1.657			1.329			1.370			1.151			1.768			6.7	%		5.994			5.617			-6.3	%
Inv Mgmt - Managed Acct. & Other		1.260			1.806			1.043			0.386			0.493			-60.9	%		6.339			3.728			-41.2	%
Consolidating Adjustments		(0.617	)		(0.481	)		(0.773	)		(0.817	)		(0.833	)		-35.0	%		(2.435	)		(2.905	)		-19.3	%
Total Gross Retail Deposits		6.737			7.449			7.509			6.297			7.805			15.9	%		26.835			29.060			8.3	%

Inv Mgmt - Institutional		4.833			5.044			2.764			2.406			4.888			1.1	%		16.302			15.102			-7.4	%
Consolidating Adjustments		(0.265	)		(0.257	)		(0.365	)		(0.202	)		(0.109	)		58.9	%		(1.030	)		(0.933	)		9.4	%
Total Gross Deposits	$	11.305		$	12.236		$	9.907		$	8.501		$	12.584			11.3	%	$	42.107		$	43.229			2.7	%

Account Balances - End of Period
Individual Markets - Fixed Annuities	$	8.607		$	8.362		$	17.384		$	16.894		$	16.733			94.4	%	$	8.607		$	16.733			94.4	%
Individual Markets - Variable Annuities		37.655			40.495			41.537			43.977			48.169			27.9	%		37.655			48.169			27.9	%
Individual Markets - Life Insurance		14.051			14.268			25.479			25.821			26.490			88.5	%		14.051			26.490			88.5	%
Employer Markets - Fixed Annuities		11.009			11.033			11.050			11.061			11.006			-			11.009			11.006			-
Employer Markets - Variable Products⁽¹⁾		19.464			20.702			20.475			21.166			22.650			16.4	%		19.464			22.650			16.4	%
Employer Markets - Executive Benefits		1.318			1.387			4.228			4.252			4.305			226.6	%		1.318			4.305			226.6	%
Inv Mgmt - Annuities		13.287			13.998			13.577			14.129			15.151			14.0	%		13.287			15.151			14.0	%
Inv Mgmt - Mutual Funds		16.231			17.101			16.654			17.068			17.875			10.1	%		16.231			17.875			10.1	%
Inv Mgmt - Managed Acct. & Other		12.839			15.162			15.812			16.279			17.594			37.0	%		12.839			17.594			37.0	%
Consolidating Adjustments		(12.602	)		(13.282	)		(13.057	)		(13.649	)		(14.687	)		-16.5	%		(12.602	)		(14.687	)		-16.5	%
Total Retail Account Balances		121.858			129.225			153.137			156.998			165.287			35.6	%		121.858			165.287			35.6	%

Inv Mgmt - Institutional		35.276			40.167			39.883			42.035			46.686			32.3	%		35.276			46.686			32.3	%
Consolidating Adjustments		(3.422	)		(3.573	)		(3.557	)		(3.510	)		(3.604	)		-5.3	%		(3.422	)		(3.604	)		-5.3	%
Total Account Balances	$	153.712		$	165.820		$	189.464		$	195.524		$	208.369			35.6	%	$	153.712		$	208.369			35.6	%


*Total Domestic Net Flows*
Unaudited [Billions of Dollars]

	Three Months Ended																			Year Ended
		Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
For the Period Ended		2005			2006			2006			2006			2006			Change			2005			2006			Change

Individual Markets - Life	$	0.400		$	0.257		$	0.548		$	0.491		$	0.727			81.8	%	$	1.195		$	2.023			69.3	%
Individual Markets - Annuities		0.767			0.770			0.699			0.304			0.892			16.3	%		2.876			2.665			-7.3	%
Employer Markets - Defined Contribution		(0.026	)		0.181			0.114			0.037			0.010			138.5	%		0.419			0.342			-18.4	%
Employer Markets - Executive Benefits		0.049			0.039			0.035			(0.011	)		(0.007	)		NM			0.161			0.057			-64.6	%
Investment Management - Retail		1.148			1.305			0.322			(0.300	)		(0.140	)		NM			6.442			1.187			-81.6	%
Consolidating Adjustments		0.015			0.083			(0.009	)		0.012			(0.092	)		NM			0.051			(0.007	)		NM
Total Retail Net Flows		2.354			2.635			1.709			0.532			1.390			-41.0	%		11.144			6.266			-43.8	%

Investment Management - Institutional		1.733			3.592			0.687			1.046			2.666			53.8	%		8.778			7.991			-9.0	%
Consolidating Adjustments		0.198			(0.039	)		(0.047	)		0.139			0.068			-65.7	%		0.123			0.121			NM
Total Net Flows	$	4.285		$	6.188		$	2.349		$	1.717		$	4.125			-3.7	%	$	20.045		$	14.378			-28.3	%

(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.

12/31/2006									PAGE 33
*Consolidated Investment Data - Assets Managed*
Unaudited [Billions of Dollars]

	As of
	Dec.		March		June		Sept.		Dec.		%
	2005		2006		2006		2006		2006		Change
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	33.443	$	32.893	$	54.024	$	55.825	$	55.853		67.0	%
Equity securities - available for sale		0.145		0.176		0.579		0.662		0.700		NM
Trading securities		3.246		3.190		3.109		3.172		3.036		-6.5	%
Other investments		6.334		6.314		12.003		11.948		11.898		87.8	%
Total LNC Investments		43.168		42.573		69.714		71.608		71.488		65.6	%
Separate accounts		63.747		67.984		71.095		74.357		80.534		26.3	%
Cash and invested cash		2.312		1.974		1.500		1.108		1.621		-29.9	%
Total LNC		109.227		112.531		142.309		147.073		153.642		40.7	%

Non-affiliate assets managed		62.528		70.464		70.185		73.227		79.881		27.8	%

Total Assets Managed	$	171.755	$	182.995	$	212.495	$	220.300	$	233.523		36.0	%

Assets Managed by Advisor
Investment Management segment
(See page 28 for additional detail)	$	77.633	$	86.428	$	85.926	$	89.511	$	97.307		25.3	%
DLIA-Corp
(Assets managed internally-see page 28)		43.086		41.995		65.637		67.410		67.066		55.7	%
Lincoln UK		8.562		8.986		9.171		9.440		10.108		18.1	%
Domestic Policy Loans (excluding Lincoln UK)		1.858		1.856		2.712		2.720		2.755		48.3	%
Non-LNC Affiliates		40.617		43.729		49.049		51.219		56.286		38.6	%
Total Assets Managed	$	171.755	$	182.995	$	212.495	$	220.300	$	233.523		36.0	%

12/31/2006													PAGE 34
*Consolidated Investment Data*
Unaudited [Millions of Dollars]

	Three Months Ended
	Dec.			March			June			Sept.			Dec.			%
	2005			2006			2006			2006			2006			Change

*Net Investment Income*

Fixed maturity AFS securities	$	509.7		$	513.7		$	829.0		$	824.8		$	841.7			65.1	%
Equity AFS securities		3.3			2.1			8.6			7.9			8.5			157.6	%
Trading securities		48.7			49.7			49.4			49.2			48.6			-0.2	%
Mortgage loans on real estate		75.1			67.2			135.0			137.8			128.5			71.1	%
Real estate		5.6			9.1			13.2			13.3			20.6			267.9	%
Policy loans		29.2			29.7			42.5			43.0			43.7			49.7	%
Invested cash		19.2			22.8			22.2			33.0			15.6			-18.8	%
Other investments		7.0			14.6			10.2			41.3			71.8			NM
Investment revenue		697.9			708.8			1,110.1			1,150.3			1,179.0			68.9	%
Investment expense		(29.8	)		(30.4	)		(41.9	)		(42.4	)		(52.6	)		-76.5	%

*Net Investment Income*	$	668.1		$	678.3		$	1,068.2		$	1,107.9		$	1,126.3			68.6	%

Mean Invested Assets (Amortized Cost)	$	44,035.2		$	44,363.6		$	70,933.3		$	70,646.9		$	70,451.4


Ratio of Net Invest Income Over Mean Invested Assets		6.07	%		6.12	%		6.02	%		6.27	%		6.39	%

		Three Months Ended
		Dec.			March			June			Sept.			Dec.			%
		2005			2006			2006			2006			2006			Change
*Realized Investment Gains (Losses)*
Fixed maturities	$	(5.6	)	$	4.4		$	8.2		$	6.7		$	10.6			289.3	%
Equity securities		2.2			0.2			(1.1	)		-			-			NM
Other gains (losses), net		6.3			3.5			6.5			(5.5	)		3.5			-44.4	%
Policyholders' interest		(1.3	)		(1.8	)		(1.4	)		2.0			7.6			NM
Capital gains expense		(2.3	)		(2.4	)		-			-			-			NM
Sale of affiliate		-			-			-			-			-			NM
Total pretax gains (losses)		(0.8	)		3.9			12.2			3.1			21.7			NM
Amortization of DAC, VOBA and deferred
sales inducements		(8.8	)		(10.9	)		(18.9	)		(8.9	)		(8.9	)		-1.1	%
Income taxes		(3.3	)		(2.9	)		(3.0	)		(1.7	)		3.4			203.0	%
Realized investment gains (losses), net of taxes	$	(6.2	)	$	(4.2	)	$	(3.8	)	$	(4.1	)	$	9.4			251.6	%


					As of December 31, 2006									As of December 31, 2005
					Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities [Millions of Dollars]
Fixed Maturity Sec (Fair Value)				$	58,889.8			98.8	%				$	36,687.1			99.6	%
Fixed Maturity Sec (Amortized Cost)					57,725.8			98.9	%					35,347.6			99.6	%

Equity Securities (Fair Value)					700.2			1.2	%					146.9			0.4	%
Equity Securities (Amortized Cost)					656.8			1.1	%					139.0			0.4	%

*% of Available-for-Sale Fixed Maturity Securities (Based on Fair Value)*
Treasuries and AAA								19.6	%								23.4	%
AA or better								28.1	%								30.9	%
BB or less								6.3	%								7.4	%

*General Account Investments*					As of December 31, 2006									As of December 31, 2005
					Amount			% of Total						Amount			% of Total
Fixed maturities- security sector:
Corporate bonds				$	45,489.4			81.4	%				$	25,860.7			77.3	%
U.S. government bonds					263.4			0.5	%					161.8			0.5	%
Foreign government bonds					1,141.6			2.0	%					1,203.3			3.6	%
Mortgage backed securities					8,691.3			15.6	%					5,951.2			17.8	%
State and municipal bonds					159.4			0.3	%					128.8			0.4	%
Preferred stocks - redeemable					108.3			0.2	%					137.4			0.4	%
Total				$	55,853.4			100.0	%				$	33,443.2			100.0	%


		As of
		Dec.			March			June			Sept.			Dec.			%
		2005			2006			2006			2006			2006			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed Maturity	$	33,443.2		$	32,892.8		$	54,024.1		$	55,824.9		$	55,853.4			67.0	%
Equity		144.7			176.0			578.5			662.0			700.2			NM
Trading securities		3,246.0			3,190.1			3,109.0			3,172.5			3,036.3			-6.5	%
Mortgage loans on real estate & real estate		3,845.3			3,766.5			8,169.7			8,004.5			7,805.6			103.0	%
Policy loans		1,862.2			1,860.4			2,716.4			2,724.9			2,759.7			48.2	%
Derivative Investments		174.7			199.3			279.6			349.4			415.3			137.7	%
Other investments		452.2			488.2			837.0			869.3			917.1			102.8	%
Total	$	43,168.4		$	42,573.2		$	69,714.4		$	71,607.5		$	71,487.6			65.6	%