8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

Amendment No. 1

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

                   July 16, 2008                

Date of Report (Date of earliest event reported)

                  Lincoln National Corporation              

(Exact name of registrant as specified in its charter)

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

150 N. Radnor Chester Road, Radnor, PA 19087

(Address of principal executive offices)  (Zip Code)

(484) 583-1400

(Registrant’s telephone number, including area code)

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

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

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

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

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

Explanatory Note

This amendment is being filed solely to include a new page 18 of the statistical supplement attached hereto as Exhibit 99.1.  We have made no other changes to the Form 8-K or to the exhibits attached hereto.

Item 2.02.  Results of Operations and Financial Condition.

We are changing our definition of income from operations for the quarter and six months ended June 30, 2008.  Our new definition of income from operations is GAAP net income excluding:

*    Realized gains and losses associated with the following:

*    Sale or disposal of securities;

*    Impairments of securities;

*    Change in the fair value of embedded derivatives within certain reinsurance arrangements and the change in the fair value of related trading securities;

*    Change in the fair value of the embedded derivatives of our guaranteed living benefits within our variable annuities net of the change in the fair value of the derivatives we own to hedge the changes in the embedded derivative;

*    Net difference between the benefit ratio unlocking of SOP 03-1 reserves on our guaranteed death benefit riders within our variable annuities and the change in the fair value of the derivatives excluding our expected cost of the hedging instruments; and

*    Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products as required under Statement of Financial Accounting Standards (“SFAS”) Nos. 133 and 157;

*    Income (loss) from the initial adoption of changes in accounting principles;

*    Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance;

*    Losses on early retirement of debt, including subordinated debt; and

*    Income (loss) from discontinued operations.

We are changing our definition of income from operations to better reflect the underlying economics of our variable and indexed annuities that employ derivative instruments to hedge policy benefits and the manner in which management evaluate that business.  Our change in the definition of income from operations is primarily the result of our adoption of SFAS No. 157 during the first quarter of 2008.  Under SFAS No. 157’s fair value calculation, we are required to fair value these annuities from an “exit value” perspective, i.e., what a market participant or willing buyer would charge to assume the liability.  We, therefore, must include margins that a market participant buyer would require as well as a factor for non-performance risk related to our credit quality.  We do not believe that these factors relate to the economics of the underlying business and do not reflect the manner in which management evaluates the business.

To aid investors in their understanding of our new definition of income from operations prior to issuing our results for the quarter ended June 30, 2008, we are providing our previously issued statistical supplement for the quarter ended March 31, 2008, revised to reflect the new definition of income from operations.  A copy of the statistical supplement for the quarter ended March 31, 2008 revised for the new definition of income from operations is attached as Exhibit 99.1 and is incorporated herein by reference.

We are also attaching as Exhibit 99.2 and incorporating herewith a copy of the slides in connection with our investor presentation to be held on July 16, 2008 at 11:00 a.m. (E.D.T), during which members of management will discuss the new definition of income from operations and related matters.

We are currently in our “quiet period” regarding second quarter results, which means that we are currently analyzing our results for the second quarter 2008.  Therefore, we will not be discussing our second quarter results, which we will release on July 29, 2008.  You should not rely on the information in the presentation or in Exhibits 99.1 and 99.2 as being indicative of actual second quarter results, and we do not hereby undertake any obligation to provide such information during the presentation or to update such information except through our public earnings release.

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

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except page 1 of Exhibit 99.1 shall be incorporated by reference in our registration statements filed pursuant to the Securities Act of 1933, which by their terms incorporate documents by reference.

Forward Looking Statements — Cautionary Language

Certain statements made in this report and in other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe", "anticipate", "expect", "estimate", "project", "will", "shall" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

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

·   Legislative, regulatory or tax changes, both domestic and foreign, that affect the cost of, or demand for, Lincoln's products, the required amount of reserves and/or surplus, or otherwise affect our ability to conduct business, including changes to statutory reserves and/or risk-based capital requirements related to secondary guarantees under universal life and variable annuity products such as Actuarial Guideline VACARVM; restrictions on revenue sharing and 12b-1 payments; and the potential for U.S. Federal tax reform;

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

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

·   A decline in the equity markets causing a reduction in the sales of Lincoln's products, a reduction of asset-based fees that Lincoln charges on various investment and insurance products, an acceleration of amortization of deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads and an increase in liabilities related to guaranteed benefit features of Lincoln's variable annuity products;

·   Ineffectiveness of Lincoln's various hedging strategies used to offset the impact of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates;

·   A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from Lincoln's assumptions used in pricing its products, in establishing related insurance reserves and in the amortization of intangibles that may result in an increase in reserves and a decrease in net income, including as a result of investor-owned life insurance business;

·   Changes in GAAP that may result in unanticipated changes to Lincoln's net income, including the impact of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements," and SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities;"

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

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

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

·   The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Lincoln's ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions, including Lincoln's ability to successfully integrate Jefferson-Pilot's businesses, to achieve the expected synergies from the merger or to achieve such synergies within our expected timeframe;

·   The adequacy and collectibility of reinsurance that Lincoln has purchased;

·   Acts of terrorism, war or other man-made and natural catastrophes that may adversely affect Lincoln's businesses and the cost and availability of reinsurance;

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

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

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

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

·   Continued economic declines and credit market volatility that could cause us to realize additional impairments on investments and certain intangible assets and dampen future earnings.

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

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

Item 9.01.  Financial Statements and Exhibits

(c)   Exhibits.

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

Exhibit Number	Description
99.1	Lincoln National Corporation Statistical Supplement (revised) for the Quarter Ended March 31, 2008.
99.2	Slides in connection with the July 16, 2008 presentation

SIGNATURES

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

LINCOLN NATIONAL CORPORATION
By	/s/ Douglas N. Miller
Name:	Douglas N. Miller
Title:	Vice President and
	Chief Accounting Officer

Date:  July 16, 2008

EXHIBIT INDEX

Exhibit Number	Description
99.1	Lincoln National Corporation Statistical Supplement (revised) for the Quarter Ended March 31, 2008.
99.2	Slides in connection with the July 16, 2008 presentation

EX-99.1

Lincoln  Statistical Report
(Revised for New Definition of Operating Revenues
and Income from Operations)
		first Q U A R T E R
	2 0 0 8
This revised Statistical Report solely corrects the Variable Annuity Expense Assessment line item as shown on page 18 for all periods presented.  No other financial information has been changed.
Except for certain reclassifications, the financial data in this document is dated April 29, 2008 and has not been updated since that date.  LNC does not intend to update this document.

LFG Analyst Coverage

First Quarter, 2008

FIRM	ANALYST	PHONE NUMBER
Banc of America Securities	Tamara Kravec	646-855-5212
Bernstein	Suneet Kamath	212-756-4587
Citigroup	Colin Devine	212-816-1682
Credit Suisse	Tom Gallagher	212-538-2010
Deutsche Bank	Darin Arita	212-250-7321
Dowling & Partners	Paul Goulekas	860-676-8600
Fox-Pitt Kelton Cochran Caronia Waller	Mark Finkelstein	312-425-4079
Goldman Sachs & Company	Tom Cholnoky	212-902-3408
JP Morgan	Jimmy Bhullar	212-622-6397
Keefe, Bruyette & Woods, Inc.	Jeff Schuman	860-722-5902
Langen McAlenney	Bob Glasspiegel	860-724-1203
Lehman Brothers	Eric Berg	212-526-2805
Merrill Lynch	Ed Spehar	212-449-4245
Morgan Stanley	Nigel Dally	212-761-6235
Raymond James & Associates Inc.	Steven Schwartz	312-612-7686
UBS	Andrew Kligerman	212-713-2492
Wachovia	John Hall	212-214-8032

Investor inquiries may be directed to:

Jim Sjoreen, Vice President, Investor Relations

Email: Jim.Sjoreen@lfg.com

Voice: (484) 583-1420

Fax: (484) 583-3962

Note: This list is provided for informational purposes only.  LFG does not endorse the analyses, conclusions, or recommendations contained in any report issued by these or any other analysts.

** Statistical data will be available immediately after the release of earnings for each quarter through LNC’s Investor Relations website: http://www.LincolnFinancial.com/investor.

Lincoln Financial Group
Statistical Report
First Quarter
2008
Table of Contents
LFG Analyst Coverage
Notes
Financial Highlights	1 - 3
Consolidated Expense Detail	4
Operating Results Summary	5
Details Underlying Realized Gain (Loss), After-DAC	6
	7
Consolidated Statements of Income	8
Consolidating Statements of Income from Operations - Current Year	9
Consolidating Statements of Income from Operations - Prior Year	9(B)
Consolidated Balance Sheets	10
Balance Sheet Data - Segment Highlights	11
Individual Markets
Individual Life Insurance
Income Statements & Operational Data	12
Operational Data	13
Account Value Roll Forward	14
Individual Annuities
Income Statements & Operational Data	15
Roll Forwards of DAC, VOBA, DFEL and DSI	16
Account Value Roll Forward	17
Account Values	18
Employer Markets
Defined Contribution
Income Statements & Operational Data	19
Roll Forwards of DAC, VOBA  and DSI	20
Account Value Roll Forward	21
Account Value Roll Forward - By Product	22
Supplemental Data	23
Executive Benefits
Income Statements & Operational Data	24
Account Value Roll Forward & Supplemental Data	25
Group Protection
Income Statements & Operational Data	26
Supplemental Data	27
Investment Management
Income Statements	28
Assets Under Management Roll Forward	29
Assets Under Management Roll Forward (Continued)	29(B)
Lincoln UK
Income Statements	30
Operational Data	31
Other Operations	32
Discontinued Operations	32
Domestic Deposits / Account Balances / Net Flows	33
Consolidated Investment Data
Assets Managed	34
Other Investment Data	35

3/31/2008			ii
NOTES
Definitions and Presentation
"Income from Operations," "Operating Revenues" and "Return on Capital" are non-GAAP financial measures and do not replace
GAAP revenues 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 associated with the following (see page 6 for additional detail) ("Excluded realized gains
	and losses");
		*    Sale or disposal of securities;
		*    Impairments of securities;
		*    Change in the  fair value of embedded derivatives within certain reinsurance arrangements and the change in
		the fair value of related trading securities;
		*    Change in the fair value of the embedded derivatives of our guaranteed living benefits within our variable
		annuities ("GLB") net of the change in the fair value of the derivatives we own to hedge the changes in the
		embedded derivative);
		*    Net difference between the benefit ratio unlocking of SOP 03-1 reserves on our guaranteed death
		benefit ("GDB") riders within our variable annuities and the change in the fair value of the derivatives
		excluding our expected cost of the hedging instruments ("GDB Derivative Results"); and
		*    Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase
		in the future to hedge contract holder index allocations applicable to future reset periods for our indexed
		annuity products as required under SFAS 133/157 ("Indexed annuity forward-starting option").
	*    Income (loss) from the initial adoption of changes in accounting principles;
	*    Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance;
	*    Losses on early retirement of debt, including subordinated debt; and
	*    Income (loss) from discontinued operations.
*	"Operating Revenues" represent GAAP revenues excluding the following, as applicable:
	*    Excluded realized gains and losses;
	*    Amortization of deferred gains arising from the reserve changes on business sold through reinsurance; and
	*    Revenue adjustments from the initial impact of the adoption of changes in accounting principles.
*	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 stockholders' equity
	represents the effect of leveraging on LNC's consolidated results.
Income from Operations, Operating Revenues and Return on Capital are internal measures used by LNC in the management of its
operations.  Management believes that these performance measures explain the results of 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 not related to decisions regarding the underlying businesses and/or are unpredictable.  Accordingly, Income from
Operations and Operating Revenues exclude the effects of any realized gains (losses) that are not necessarily indicative of current
operating fundamentals or future performance of the business segments, and in many instances, decisions regarding these items do not
necessarily relate to the operations of the individual segments.  We report the impact of these items, net of associated impact of
amortization expense of DAC, VOBA, DSI and DFEL and changes in other contract holder funds, within realized gain (loss).
*	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 premiums,
	in force, spreads and assets under management.
*	Sales as reported consist of the following:
	*    Universal Life ("UL"), including MoneyGuard®, and corporate owned life insurance ("COLI") - first year
	commissionable premiums plus 5% of excess premiums received, including UL internal replacements;
	*    Whole Life and Term - first year paid premiums;
	*    Annuity - deposits from new and existing customers;
	*    Group Protection - annualized first year premiums from new policies; and
	*    Investment Management Retail Sales and Institutional Inflows - contributions, transfer in kind purchases
	and reinvested dividends for new and existing accounts.

Our roll forwards of Deferred Acquisition Costs ("DAC") and Value of Business Acquired ("VOBA"), Deferred Sales Inducements
("DSI") and Deferred Front-End Loads ("DFEL") disclose the net impact of prospective and retrospective unlocking on
amortization for these accounts.  This information helps explain a source of volatility in amortization.
*	Prospective unlocking - In the third quarter of each year, we review and update our assumptions used in projecting
	our future estimated gross profits ("EGPs") used to amortize DAC, VOBA, DFEL, DSI and the calculations of embedded
	derivatives and reserves for annuity and life insurance products with certain guarantees.  These updates to assumptions
	result in unlocking that represents an increase or decrease to our carrying value of DAC, VOBA, DFEL, DSI and other
	contract holder funds based upon our updated view of future EGPs.  The various assumptions that are reviewed include
	investment margins, mortality, retention and rider utilization.
*	Retrospective unlocking - On a quarterly basis, we “true-up” our models for actual gross profits and in-force
	experience for the period.  To the extent that actual experience differs from previously expected, a positive or
	negative retrospective adjustment to the amortization of DAC, VOBA, DSI and DFEL is recorded.  This update to
	the models may generate a change in the amortization rate which results in a catch-up to the cumulative
	amortization, by recalculating the DAC, VOBA, DSI and DFEL balances assuming that the revised amortization
	rate had been used since issue.
*	Our unlocking process also includes our reserves for our guaranteed benefit features and is described more fully
	in “Part II - Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations -
	Critical Accounting Policies and Estimates” of our 2007 Form 10-K.
Book value per share excluding accumulated other comprehensive income ("AOCI") is calculated based upon a non-GAAP
financial measure. It is calculated by dividing (a) stockholders' equity excluding AOCI, by (b) common shares outstanding. We
provide book value per share excluding AOCI to enable investors to analyze the amount of our net worth that is primarily
attributable to our business operations. We believe book value per share excluding AOCI is useful to investors because it
eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.
Book value per share is the most directly comparable GAAP measure.
Pre-tax operating margin is calculated as income (loss) from operations before federal income taxes divided by operating
revenues.
After-tax operating margin is calculated as income (loss) from operations divided by operating revenues.
In 2007, we executed plans to divest our television broadcasting, sports programming and Charlotte radio stations.  During the
fourth quarter of 2007, we entered into a definitive agreement to sell our television broadcasting, Charlotte radio and sports
programming businesses.  The divestiture of the sports programming business closed on November 30, 2007, the Charlotte
radio station business closed on January 31, 2008 and the television broadcasting closed on March 31, 2008.  Accordingly, in
the periods prior to the closings, the assets and liabilities of these businesses not sold have been reclassified as held-for-sale
for all periods presented, and are reported within other assets and other liabilities on our Consolidated Balance Sheets.  The
results of operations of these businesses have been reclassified into income from discontinued operations for all periods
presented on the Financial Highlights, Operating Results Summary and Consolidated Statements of Income.
Inter-segment transfer refers to a transfer from Individual Markets - Annuities to Employer Markets - Defined Contribution.
Reclassifications
Subsequent to the first quarter of 2008, we decided to change our non-GAAP measures, “Operating Revenues” and “Income from
Operations”, to exclude the effects of any realized gains (losses) that are not necessarily indicative of current operating fundamentals or
future performance of the business segments, and in many instances, decisions regarding these items do not necessarily relate to the
operations of the individual segments.  We believe that our new definitions of “Operating Revenues” and “Income from Operations” provide
investors with a more valuable measure of our performance because it better reveals trends in our business.  The items that are now
excluded from our operating results that were previously included are as follows: GLB net derivatives results; indexed annuity
forward-starting option; and GDB derivative results.  See page 6 for more information about these items.
We have restated all periods presented to conform to our new definition of "Income from Operations," "Operating Revenues" and "Return
on Capital."  In addition, we have reclassified our derivatives and embedded derivatives related to our GLB, GDB and indexed annuities to
realized gain (loss), which were previously reported within insurance fees, net investment income, interest credited or benefits. The
associated amortization expense of DAC and VOBA (previously reported within underwriting, acquisition, insurance and other expenses),
DSI (previously reported within interest credited) and DFEL (previously reported within insurance fees) and changes in contract holder
funds (previously reported within benefits) have also been reclassified to realized gain (loss). These reclassifications had no effect on net
income or total stockholders' equity.  Therefore, we have restated prior periods for these segments to conform to the current presentation.
All items that changed from our previously filed first quarter 2008 Statistical Report are highlighted in blue throughout the document
During the first quarter of 2008, our Institutional Pension business was moved from the Executive Benefits segment to Other
Operations.  Therefore, we have restated prior periods for these segments to conform to the current presentation.

3/31/2008										PAGE 1
Financial Highlights
Unaudited (millions of dollars, except per share data)
	For the Quarters Ended March 31,
							Change
	2008			2007			Amount			%
Income from Operations - By Segment
Individual Life Insurance	$	145.5		$	166.6		$	(21.1	)		-12.7	%
Individual Annuities		117.8			116.6			1.2			1.0	%
Total Individual Markets		263.2			283.2			(20.0	)		-7.1	%
Defined Contribution		40.4			49.7			(9.3	)		-18.7	%
Executive Benefits		11.9			11.9			-			-
Group Protection		26.3			23.1			3.2			13.9	%
Total Employer Markets		78.6			84.7			(6.1	)		-7.2	%
Investment Management		12.1			16.2			(4.1	)		-25.3	%
Lincoln UK		10.7			10.9			(0.2	)		-1.8	%
Other Operations		(42.3	)		(28.0	)		(14.3	)		-51.1	%
Total Income from Operations (1)		322.4			367.0			(44.6	)		-12.2	%
Excluded realized gain (loss), after-tax (2)		(29.5	)		21.5			(51.0	)	NM
Income (loss) from discontinued operations, after-tax (3)		(4.2	)		7.7			(11.9	)	NM
Net Income	$	289.1		$	396.5		$	(107.4	)		-27.1	%
Earnings per Share (Diluted)
Income from operations (1)	$	1.23		$	1.31		$	(0.08	)		-6.1	%
Excluded realized gain (loss), after-tax		(0.11	)		0.08			(0.19	)	NM
Income (loss) from discontinued operations, after-tax (3)		(0.02	)		0.03			(0.05	)	NM
Net Income	$	1.10		$	1.42		$	(0.32	)		-22.5	%
Operating Revenues - By Segment
Individual Life Insurance	$	987.5		$	971.4		$	16.1			1.7	%
Individual Annuities		622.6			590.4			32.2			5.5	%
Total Individual Markets		1,610.1			1,561.7			48.4			3.1	%
Defined Contribution		237.7			246.7			(9.0	)		-3.6	%
Executive Benefits		65.6			69.2			(3.6	)		-5.2	%
Group Protection		399.4			360.4			39.0			10.8	%
Total Employer Markets		702.6			676.4			26.2			3.9	%
Investment Management		120.3			150.2			(29.9	)		-19.9	%
Lincoln UK		85.6			90.7			(5.1	)		-5.6	%
Other Operations		118.0			108.8			9.2			8.5	%
Total Operating Revenues		2,636.6			2,587.8			48.8			1.9	%
Excluded realized gain (loss), pre-tax (2)		(45.2	)		32.9			(78.1	)	NM
Amortization of deferred gains arising from reserve changes
on business sold through reinsurance, pre-tax		0.7			0.3			0.4			133.3	%
Total Revenues	$	2,592.0		$	2,621.1		$	(29.1	)		-1.1	%
(1) Income from operations includes restructuring charges, after-tax, of $0.6 million, or -0- cents per share, and $2.5 million, or 1 cent per share, for the quarters ended March 31, 2008 and 2007, respectively.
(2) See page 6 for detail.
(3) Includes discontinued operations and the loss on disposal. See Discontinued Operations on page 32 for details.

3/31/2008										PAGE 2
Financial Highlights
Unaudited (billions of dollars)
Operational Data by Segment	For the Quarters Ended March 31,
							Change
	2008			2007			Amount			%
Individual Markets - Annuities
Gross deposits	$	3.025		$	2.821		$	0.204			7.2	%
Net flows		1.181			0.754			0.427			56.6	%
Account values (gross)		72.666			68.438			4.228			6.2	%
Account values (net of reinsurance)		71.361			66.749			4.612			6.9	%
Individual Markets - Life Insurance
Sales (in millions) (1)		145.4			203.5			(58.0	)		-28.5	%
Life insurance in force		521.047			508.411			12.635			2.5	%
Account values		27.881			26.924			0.957			3.6	%
Employer Markets - Defined Contribution
Gross deposits (2)	$	1.552		$	1.487		$	0.065			4.4	%
Net flows		0.281			0.221			0.060			27.1	%
Account values - annuities		27.509			28.669			(1.160	)		-4.0	%
Alliance and Smart Future Mutual Funds		7.254			5.807			1.447			24.9	%
Account values including Alliance and Smart Future
Mutual Funds		34.763			34.475			0.288			0.8	%
Employer Markets - Executive Benefits
COLI/BOLI sales (in millions)		28.2			20.4			7.8			38.2	%
Life insurance in force		15.826			14.747			1.080			7.3	%
Account values		4.460			4.264			0.196			4.6	%
Employer Markets - Group Protection
Annualized sales (in millions)		54.1			60.5			(6.5	)		-10.7	%
Loss ratio (3)		71.0	%		72.7	%	NM			NM
Investment Management
Retail sales	$	3.495		$	3.603		$	(0.108	)		-3.0	%
Retail net flows		(0.655	)		0.233			(0.888	)	NM
Institutional inflows		1.229			2.431			(1.202	)		-49.4	%
Institutional net flows		(0.510	)		(0.321	)		(0.189	)		-58.9	%
Total sales and inflows		4.724			6.034			(1.311	)		-21.7	%
Total net flows		(1.166	)		(0.088	)		(1.077	)	NM
Assets under management - retail and institutional		78.537			98.146			(19.608	)		-20.0	%
Assets under management - general account		67.340			67.658			(0.318	)		-0.5	%
Assets under management - total segment		145.877			165.804			(19.927	)		-12.0	%
Consolidated
Domestic retail deposits	$	7.710		$	8.217		$	(0.507	)		-6.2	%
Domestic retail account balances		172.831			169.282			3.549			2.1	%
Domestic retail net flows		1.359			1.827			(0.468	)		-25.6	%
Domestic deposits		8.846			10.536			(1.690	)		-16.0	%
Domestic net flows		0.878			1.554			(0.676	)		-43.5	%
Assets under management		224.725			237.000			(12.275	)		-5.2	%
(1) Sales for Individual Life Insurance consist of first year commissionable premiums for Universal Life ("UL"), including MoneyGuard® , plus 5% of excess premiums received, including UL internal replacements, and first year paid premiums for Whole Life and Term products.
(2) Includes deposits for Alliance and Smart Future Mutual Funds which are not included in separate account liabilities on our Consolidated Balance Sheets.
(3) Represents combined loss ratio for Life, Disability and Dental business.

3/31/2008													PAGE 3
Financial Highlights
Unaudited (millions of dollars)
	For the Quarters Ended March 31,
							Change
	2008			2007			Amount			%
Balance Sheet Assets - End-of-Period	$	185,349.3		$	181,327.1		$	4,022.2			2.2	%
Stockholders' Equity
Beginning-of-period (including AOCI)	$	11,718.4		$	12,201.0		$	(482.6	)
End-of-period (including AOCI)		11,086.3			12,032.2			(945.9	)
End-of-period (excluding AOCI)		11,408.0			11,372.5			35.5
Average equity (excluding AOCI)		11,450.5			11,480.2			(29.6	)
Return on Equity
Net income/average equity (excluding AOCI)		10.1	%		13.8	%
Income from operations/average equity (excluding AOCI)		11.3	%		12.8	%
Return on Capital
Income from operations/average capital		9.0	%		10.3	%
Common Stock Outstanding
Average for the period - diluted		262.8			279.5			(16.7	)		-6.0	%
End-of-period - assuming conversion of preferreds		259.4			270.9			(11.5	)		-4.2	%
End-of-period - diluted		260.5			274.0			(13.5	)		-4.9	%
Book value (including AOCI)	$	42.74		$	44.42		$	(1.68	)		-3.8	%
Book value (excluding AOCI)		43.98			41.98			2.00			4.8	%
Cash Returned to Shareholders
Share repurchase - dollar amount	$	285.7		$	511.7		$	(226.0	)
Dividends declared to shareholders		107.5			106.8			0.8
Total Cash Returned to Shareholders	$	393.3		$	618.5		$	(225.2	)
Share repurchase - number of shares		5.450			7.215			(1.765	)
Dividend declared on common stock - per share	$	0.415		$	0.395		$	0.020			5.1	%
Dividend payout ratio (1)		37.8	%		27.8	%
Annualized yield (2)		3.2	%		2.3	%
Comprehensive Income (Loss)
Net income	$	289.1		$	396.5
Net unrealized gains (losses) on available-for-sale securities		(538.2	)		46.9
Losses on derivatives		(8.8	)		(4.0	)
Foreign currency translation		(0.8	)		3.2
Funded status of employee benefit plans		0.6			0.4
Comprehensive Income (Loss)	$	(257.9	)	$	443.0
Ratios:
Debt to total capitalization (3)		21.7	%		21.9	%
Debt to equity (3)		27.7	%		28.1	%

	Ratings as of April 28, 2008
	A.M. Best	Fitch	Moody's	Standard & Poor's
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
(1)  Indicated dividend divided by net income.
(2)  Indicated dividend divided by the closing price.
(3)   Equity used in calculation excludes AOCI and $375 million of senior notes issued in October of 2007 because the proceeds were reinvested in a pool of long-term assets.  Capital securities are considered 25% debt and 75% equity.

3/31/2008																PAGE 4
Consolidated Operating Expense Detail
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Commissions	$	446.5		$	462.9		$	470.8		$	501.9		$	426.6			-4.4	%
General and Administrative Expenses
General and administrative expenses		390.9			432.4			418.2			432.7			400.6			2.5	%
Merger-related expenses		10.1			23.8			21.9			23.6			13.8			36.6	%
Total General and Administrative Expenses
Excluding Broker-Dealer		401.0			456.2			440.1			456.3			414.4			3.3	%
Communications expenses		14.7			15.2			13.2			13.5			15.5			5.9	%
Restructuring charges		3.9			6.2			7.4			2.9			0.9			-76.9	%
Taxes, licenses and fees		65.2			51.8			52.4			48.6			62.3			-4.4	%
Interest and debt expense		62.4			73.1			68.2			80.3			75.4			21.0	%
Total Commissions and Expenses Incurred		993.7			1,065.3			1,052.1			1,103.5			995.2			0.2	%
Less: Commissions and Expenses Capitalized		(487.4	)		(504.9	)		(511.4	)		(554.4	)		(456.6	)		6.3	%
Amortization
DAC/VOBA amortization, net of interest (1) (2)		275.2			233.4			283.4			273.0			255.2			-7.3	%
Amortization of intangibles		2.5			2.5			2.6			2.5			1.6			-37.3	%
Total Amortization		277.7			235.9			286.0			275.5			256.7			-7.6	%
Broker-Dealer Commissions and G&A		87.2			92.8			91.8			100.5			89.2			2.3	%
Total	$	871.2		$	889.2		$	918.5		$	925.1		$	884.6			1.5	%
Merger-Related Expenses (3)
Severance and employee-related charges	$	3.0		$	6.6		$	5.6		$	6.2		$	3.1			3.3	%
Systems integration and related expenses		5.6			17.7			17.9			15.1			9.3			66.1	%
Other expenses		5.4			5.7			5.8			6.6			2.3			-57.4	%
Total Merger-Related Expenses	$	14.0		$	30.0		$	29.3		$	27.9		$	14.7			5.0	%
(1) In the second quarter of 2007, we recognized certain adjustments that reduced DAC amortization by $23 million.
(2) For the first quarter of 2008, DAC/VOBA amortization excludes the non-operating expense of $5.4 million related to the initial impact of the adoption of SFAS 157.
(3) Represents merger-related expenses included in general and administrative expenses and restructuring charges.

3/31/2008																PAGE 5
Operating Results Summary
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Individual Life Insurance (1)	$	971.4		$	957.5		$	992.1		$	1,002.1		$	987.5			1.6	%
Individual Annuities		590.4			623.7			647.0			672.3			622.5			5.4	%
Individual Markets		1,561.7			1,581.1			1,639.1			1,674.4			1,610.1			3.1	%
Defined Contribution		246.7			252.0			243.4			243.3			237.7			-3.7	%
Executive Benefits		69.2			66.1			64.2			66.1			65.6			-5.3	%
Group Protection		360.4			391.0			367.5			380.6			399.4			10.8	%
Employer Markets		676.4			709.2			675.2			690.0			702.6			3.9	%
Investment Management		150.2			151.0			150.1			139.0			120.3			-19.9	%
Lincoln UK		90.7			92.5			88.7			98.3			85.6			-5.6	%
Other Operations		108.8			123.6			112.9			127.9			118.0			8.4	%
Total Operating Revenues		2,587.8			2,657.4			2,665.9			2,729.7			2,636.6			1.9	%
Excluded realized gain (loss), pre-tax (2)		32.9			5.8			(65.8	)		(147.9	)		(45.2	)	NM
Amortization of deferred gains arising from reserve changes
on business sold through reinsurance, pre-tax		0.3			7.8			0.6			0.7			0.7			133.3	%
Total Revenues	$	2,621.1		$	2,670.9		$	2,600.8		$	2,582.5		$	2,592.0			-1.1	%
Income from Operations (3)
Individual Life Insurance	$	166.6		$	176.4		$	173.6		$	158.8		$	145.5			-12.7	%
Individual Annuities		116.6			123.4			125.9			118.9			117.8			1.0	%
Individual Markets		283.2			299.8			299.5			277.7			263.2			-7.1	%
Defined Contribution		49.7			47.3			41.2			43.1			40.4			-18.7	%
Executive Benefits		11.9			10.8			8.9			11.9			11.9			-0.1	%
Group Protection		23.1			29.0			33.2			28.2			26.3			14.0	%
Employer Markets		84.7			87.1			83.4			83.1			78.6			-7.2	%
Investment Management		16.2			11.3			21.8			27.0			12.1			-25.0	%
Lincoln UK		10.9			11.7			10.3			12.7			10.7			-2.1	%
Other Operations		(28.0	)		(36.2	)		(49.8	)		(59.2	)		(42.3	)		-51.1	%
Income from Operations (3)		367.0			373.7			365.3			341.2			322.4			-12.2	%
Excluded realized gain (loss), after-tax (2)		21.5			4.0			(42.7	)		(102.4	)		(29.5	)	NM
Income (loss) from reserve changes (net of related amortization)
on business sold through reinsurance, after-tax		0.2			(7.9	)		0.4			0.4			0.4			100.0	%
Income (loss) from discontinued operations, after-tax (4)		7.7			6.3			6.6			(126.8	)		(4.2	)	NM
Net Income	$	396.5		$	376.0		$	329.6		$	112.5		$	289.1			-27.1	%
	For the Three Months Ended
	March			June			Sept.			Dec.			March
	2007			2007			2007			2007			2008
Stockholders' Equity
Beginning-of-period (including AOCI)	$	12,201.0		$	12,032.2		$	11,835.7		$	11,962.9		$	11,718.4
End-of-period (including AOCI)		12,032.2			11,835.7			11,962.9			11,718.4			11,086.3
End-of-period (excluding AOCI)		11,372.5			11,686.4			11,766.1			11,493.1			11,408.0
Average equity (excluding AOCI)		11,480.2			11,529.4			11,726.3			11,629.6			11,450.5
Common Shares Outstanding
Average for the period - diluted		279.5			274.4			272.5			269.4			262.8
End-of-period - diluted		274.0			274.5			271.7			266.2			260.5
Per Share Data (Diluted)
Net income	$	1.42		$	1.37		$	1.21		$	0.41		$	1.10
Income from operations (3)		1.31			1.36			1.34			1.26			1.23
Stockholders' Equity Per Share
Stockholders' Equity (including AOCI)	$	44.42		$	43.57		$	44.41		$	44.32		$	42.74
Stockholders' Equity (excluding AOCI)		41.98			43.02			43.68			43.46			43.98
Dividends declared (common stock)		0.395			0.395			0.395			0.415			0.415
Return on Equity
Net Income/Average Equity		13.8	%		13.0	%		11.2	%		3.9	%		10.1	%
Income from Operations/Average Equity		12.8	%		13.0	%		12.5	%		11.7	%		11.3	%
Market Value of Common Stock
Highest price	$	71.18		$	74.72		$	72.28		$	70.66		$	58.11
Lowest price		64.29			66.90			54.40			55.84			45.50
Closing price	$	67.79		$	70.95		$	65.97		$	58.22		$	52.00
(1) In the second quarter of 2007, we recognized certain adjustments that reduced operating revenues by $41 million. There were reductions to expenses
that offset most of this reduction in revenues.
(2) See page 6 for detail.
(3) Income from operations includes after-tax restructuring charges of $0.6 million, or -0- cents per share, for the first quarter of 2008, $1.9 million or 1 cent
per share, for the fourth quarter of 2007, $4.8 million, or 2 cents per share, for the third quarter of 2007, $4.0 million, or 1 cent per share, for the second
quarter of 2007 and $2.5 million, or 1 cent per share, for the first quarter of 2007.
(4) Includes discontinued operations and the loss on disposition. See Discontinued Operations on page 32 for details.

3/31/2008										PAGE 6
Details Underlying Realized Gain (Loss), After-DAC (1)
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Pre-Tax
Operating realized gain (loss) (2):
Indexed annuity net derivatives results (3)	$	0.9		$	1.2		$	0.2		$	(0.1	)	$	(1.4	)	NM
GLB (4)		0.8			1.4			1.6			1.8			5.8		NM
GDB hedge cost (5)		(0.4	)		(1.3	)		(0.8	)		0.5			5.9		NM
Total operating realized gain (loss)		1.3			1.3			0.9			2.2			10.3		NM
Realized gain (loss) related to investments (6)		26.4			(8.6	)		(35.4	)		(108.9	)		(41.0	)	NM
Gain (loss) on certain reinsurance derivative/
trading securities (7)		(0.2	)		4.0			(1.1	)		(0.8	)		0.4			277.8	%
GLB net derivatives results (8)		8.4			4.8			(23.2	)		(37.3	)		(6.6	)	NM
Indexed annuity forward-starting option (9)		(1.9	)		4.9			(6.2	)		(6.9	)		4.8		NM
GDB net derivative results (5)		0.3			0.7			0.1			(0.2	)		(5.2	)	NM
Gain on sale of subsidiaries/businesses		-			-			-			6.2			2.5		NM
Total excluded realized gain (loss)		32.9			5.8			(65.8	)		(147.9	)		(45.2	)	NM
Total realized gain (loss)	$	34.3		$	7.1		$	(64.9	)	$	(145.7	)	$	(35.0	)	NM
After-Tax
Operating realized gain (loss) (2):
Indexed annuity net derivatives results (3)	$	0.6		$	0.8		$	0.1		$	(0.1	)	$	(0.9	)	NM
GLB (4)		0.5			0.9			1.0			1.1			3.8		NM
GDB hedge cost (5)		(0.3	)		(0.9	)		(0.5	)		0.4			3.8		NM
Total operating realized gain (loss)		0.8			0.8			0.6			1.4			6.7		NM
Realized gain (loss) related to investments (6)		17.1			(4.9	)		(23.2	)		(71.4	)		(27.1	)	NM
Gain (loss) on certain reinsurance derivative/
trading securities (7)		0.0			2.1			(0.5	)		(0.3	)		0.6		NM
GLB net derivatives results (8)		5.4			3.1			(15.1	)		(24.3	)		(4.3	)	NM
Indexed annuity forward-starting option (9)		(1.3	)		3.2			(4.0	)		(4.5	)		3.1		NM
GDB net derivative results (5)		0.2			0.4			0.1			(0.1	)		(3.4	)	NM
Gain on sale of subsidiaries/businesses		-			-			-			(1.8	)		1.5		NM
Total excluded realized gain (loss)		21.5			4.0			(42.7	)		(102.4	)		(29.5	)	NM
Total realized gain (loss)	$	22.3		$	4.8		$	(42.1	)	$	(101.0	)	$	(22.8	)	NM

(1)  DAC refers to the associated amortization expense of DAC, VOBA, DSI, and DFEL and changes in other contract holder funds.

(2)   We exclude from our definitions of income from operations and operating revenues any realized gains (losses) that are not necessarily indicative of current operating fundamentals or future performance of the business segments, and in many instances, decisions regarding these items do not necessarily relate to the operations of the individual segments.

(3)  The net difference between the change in the fair value of the S&P 500 Index® call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuities products.

(4)   The portion of the GLB rider fees calculated as the attributed fees in excess of the net valuation premium.  Net valuation premium represents a level portion of rider fees required to fund potential living benefit claims. The attributed fees are the fees used in the calculation of the embedded derivative and represent net valuation premium plus a margin for risk/profit, including non-performance risk factor required by SFAS 157 benefit costs.

(5)   We include the change in the fair value of the derivatives that offsets the benefit ratio unlocking of our SOP 03-1 reserves on our GDB riders, including our expected cost of the hedging instruments in operating realized gain (loss).  We exclude from our definition of income from operations the net difference between the benefit ratio unlocking of SOP 03-1 reserves on our GDB riders and the change in the fair value of the derivatives excluding our expected cost of the hedging instruments.

(6)   See page 35 for detail.

(7)   Changes in the fair values of total return swaps (embedded derivatives) related to various modified coinsurance and coinsurance with funds withheld reinsurance arrangements that have contractual returns related to various assets and liabilities associated with these arrangements. Changes in the fair value of these derivatives are offset by the change in fair value of trading securities in the portfolios that support these arrangements.

(8)   Represents the net difference in the change in the fair value of the embedded derivative liabilities of our GLB products and the change in the fair value of the derivative instruments we own to hedge.  This includes the cost of hedging.  The impact of the initial adoption of SFAS 157 was $33.5 million pre-tax and $21.8 million, after-tax in the first quarter of 2008.

(9)   Changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products as required under SFAS 133/157.  In addition, $9.6 million, pre-tax and $6.3 million, after-tax is included in the first quarter of 2008 due to the initial impact of adopting SFAS 157.

3/31/2008	PAGE 7
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3/31/2008 PAGE 8

Consolidated Statements of Income
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Revenues
Insurance premiums	$	458.9		$	488.9		$	491.1		$	508.2		$	508.8			10.9	%
Surrender charges		26.9			28.1			25.6			25.1			27.2			1.1	%
Mortality assessments (1)		311.2			299.6			320.7			328.4			330.8			6.3	%
Expense assessments (1)		425.9			413.9			489.6			495.1			454.1			6.6	%
Investment advisory fees		90.3			92.7			89.0			87.7			76.2			-15.6	%
Net investment income		1,089.7			1,133.2			1,061.6			1,093.7			1,065.4			-2.2	%
Realized gain (loss) (2)		34.3			7.1			(64.9	)		(145.7	)		(35.0	)	NM
Amortization of deferred gains on business sold
through reinsurance		18.9			26.4			19.3			19.3			19.1			1.1	%
Other revenues and fees		164.9			181.0			168.8			170.8			145.2			-11.9	%
Total Revenues		2,621.1			2,670.9			2,600.8			2,582.5			2,592.0			-1.1	%
Benefits and Expenses
Insurance benefits (1)		592.8			650.7			622.7			696.2			677.5			14.3	%
Interest credited to contract holder funds		599.1			606.2			611.3			618.7			611.7			2.1	%
Operating and acquisition expenses		743.6			764.2			797.9			796.2			746.8			0.4	%
Taxes, licenses and fees		65.2			51.8			52.4			48.6			62.3			-4.4	%
Interest and debt expense		62.4			73.1			68.2			80.3			75.4			21.0	%
Total Benefits and Expenses		2,063.2			2,146.1			2,152.6			2,240.0			2,173.7			5.4	%
Income from continuing operations before taxes		558.0			524.9			448.2			342.5			418.3			-25.0	%
Federal income taxes		169.2			155.2			125.2			103.2			125.0			-26.1	%
Income from Continuing Operations		388.8			369.7			323.0			239.3			293.3			-24.6	%
Income (loss) from discontinued operations, net of
federal income taxes (3)		7.7			6.3			6.6			(126.8	)		(4.2	)	NM
Net Income	$	396.5		$	376.0		$	329.6		$	112.5		$	289.1			-27.1	%
Earnings per Share (Diluted)
Income from continuing operations	$	1.39		$	1.35		$	1.19		$	0.88		$	1.12			-19.4	%
Income (loss) from discontinued operations, net of
federal income taxes (3)		0.03			0.02			0.02			(0.47	)		(0.02	)	NM
Net Income	$	1.42		$	1.37		$	1.21		$	0.41		$	1.10			-22.6	%
Roll Forward of DAC & VOBA
Balance at beginning-of-period	$	8,420.4		$	8,534.7		$	9,100.6		$	9,337.0		$	9,579.8
Cumulative effect of adoption of SOP 05-1		(66.1	)		-			-			-			-
Deferrals		487.4			504.9			511.4			554.4			456.6
Amortization, net of interest: (1)
Unlocking		14.5			25.3			7.9			17.1			(10.9	)
Other amortization		(289.7	)		(258.6	)		(291.3	)		(290.0	)		(244.2	)
Deferrals, net of amortization included in
operating and acquisition expenses		212.2			271.6			228.0			281.5			201.4
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(24.3	)		(12.8	)		21.1			95.6			(1.4	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities and derivatives		(25.5	)		290.8			(27.9	)		(111.3	)		216.6
Foreign currency translation adjustment		4.1			16.3			15.1			(22.9	)		(0.9	)
Business acquired		14.0			-			-			-			-
Balance at end-of-period	$	8,534.7		$	9,100.6		$	9,337.0		$	9,579.8		$	9,995.5
Roll Forward of DFEL
Balance at beginning-of-period	$	976.9		$	1,017.9		$	1,105.8		$	1,128.1		$	1,183.1
Cumulative effect of adoption of SOP 05-1		(2.0	)		-			-			-			-
Deferrals		77.2			125.8			97.0			112.4			102.0
Amortization, net of interest:
Unlocking		1.6			6.9			(30.8	)		(0.4	)		(3.2	)
Other amortization		(36.7	)		(52.7	)		(52.5	)		(47.8	)		(46.6	)
Deferrals, net of amortization included in
expense assessments		42.2			79.9			13.7			64.2			52.2
Adjustment related to realized losses
on available-for-sale securities and derivatives		(1.0	)		(0.2	)		1.2			1.9			0.8
Foreign currency translation adjustment		2.0			8.1			7.5			(11.2	)		(0.4	)
Balance at end-of-period	$	1,017.9		$	1,105.8		$	1,128.1		$	1,183.1		$	1,235.6
Roll Forward of DSI
Balance at beginning-of-period	$	193.8		$	206.4		$	225.0		$	249.1		$	279.2
Cumulative effect of adoption of SOP 05-1		(2.8	)		-			-			-			-
Deferrals		23.7			27.4			29.8			35.5			26.0
Amortization, net of interest:
Unlocking		1.5			0.9			0.6			(0.9	)		0.5
Other amortization		(7.3	)		(8.6	)		(9.1	)		(10.1	)		(6.3	)
Deferrals, net of amortization included in
insurance benefits or interest credited		18.0			19.6			21.3			24.6			20.2
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(2.6	)		(1.0	)		2.8			5.6			(1.9	)
Balance at end-of-period	$	206.4		$	225.0		$	249.1		$	279.2		$	297.6

(1) In the second quarter of 2007, we recognized certain adjustments that reduced expense assessments by $26 million, reduced mortality

assessments by $15 million, increased insurance benefits by $3 million and reduced DAC amortization by $23 million.

(2)  See page 6 for detail

(3)  Contains discontinued operations and the loss on disposition.  See Discontinued Operations on page 32 for additional details.

3/31/2008 PAGE 9

Consolidating Statements of Income from Operations
Unaudited (millions of dollars)
For the Quarter Ended March 31, 2008
	Individual Markets				Employer Markets
					Defined		Executive			Group		Investment		Lincoln		Other			Consolidating
	Life		Annuities		Contribution		Benefits			Protection		Management		UK		Operations			Adjustments			Consolidated
Operating Revenues
Insurance premiums	$	86.3	$	31.6	$	-	$	0.1		$	370.4	$	-	$	19.1	$	1.4		$	-		$	508.8
Surrender charges		15.8		9.6		1.9		-			-		-		-		-			-			27.2
Mortality assessments		312.6		-		-		9.1			-		-		9.1		-			-			330.8
Expense assessments		116.7		236.0		59.3		4.6			-		-		37.1		(7.2	)		7.7			454.1
Investment advisory fees		-		-		-		-			-		96.2		-		7.6			(27.6	)		76.2
Net investment income		447.4		247.8		171.7		51.9			27.7		-		20.3		98.6			0.1			1,065.4
Operating realized gain (loss) (1)		-		10.2		0.0		-			-		-		-					-			10.3
Amortization of deferred gain on business sold
through reinsurance		-		-		-		-			-		-		-		18.5			-			18.5
Other revenues and fees		8.7		87.4		4.8		(0.1	)		1.2		24.1		0.1		31.2			(12.1	)		145.2
Total Operating Revenues		987.5		622.6		237.7		65.6			399.4		120.3		85.6		150.0			(32.0	)		2,636.6
Operating Expenses
Insurance benefits		296.1		51.3		0.0		2.5			269.2		-		30.7		27.8			-			677.5
Interest credited to contract holder funds		258.2		163.2		105.9		38.4			-		-		-		45.8			-			611.7
Operating and acquisition expenses		183.0		241.3		71.8		4.7			79.6		97.4		38.5		62.5			(32.0	)		746.8
Taxes, licenses and fees		29.7		10.4		4.4		2.0			10.0		3.6		-		2.1			-			62.3
Interest and debt expense		-		-		-		-			-		-		-		75.4			-			75.4
Total Operating Expenses		767.1		466.3		182.2		47.6			358.8		101.1		69.2		213.6			(32.0	)		2,173.7
Income (loss) from operations before federal income taxes		220.5		156.3		55.5		18.0			40.6		19.2		16.4		(63.6	)		-			462.9
Federal income taxes		75.0		38.5		15.1		6.1			14.2		7.1		5.7		(21.2	)		-			140.5
Income from Operations	$	145.5	$	117.8	$	40.4	$	11.9		$	26.3	$	12.1	$	10.7	$	(42.3	)	$	-		$	322.4

(1)  For detail, see page 15.

3/31/2008 PAGE 9(B)

Consolidating Statements of Income from Operations
Unaudited (millions of dollars)
For the Quarter Ended March 31, 2007
	Individual Markets				Employer Markets
					Defined		Executive			Group		Investment		Lincoln		Other			Consolidating
	Life		Annuities		Contribution		Benefits			Protection		Management		UK		Operations			Adjustments			Consolidated
Operating Revenues
Insurance premiums	$	87.7	$	12.8	$	-	$	0.1		$	331.3	$	-	$	24.2	$	2.7		$	-		$	458.9
Surrender charges		15.2		9.7		2.0		-			-		-		-		(0.0	)		-			26.9
Mortality assessments		292.3		-		-		8.9			-		-		10.0		-			-			311.2
Expense assessments		111.9		210.9		59.8		4.6			-		-		37.1		1.6			-			425.9
Investment advisory fees		-		-		-		-			-		114.9		-		-			(24.5	)		90.3
Net investment income		454.0		265.3		180.3		55.8			27.9		-		19.3		87.2			(0.0	)		1,089.7
Operating realized gain (loss) (1)		-		1.3		-		-			-		-		-					-			1.3
Amortization of deferred gain on business sold
through reinsurance		-		-		-		-			-		-		-		18.6			-			18.6
Other revenues and fees		10.2		90.4		4.7		(0.1	)		1.1		35.3		0.1		33.7			(10.4	)		164.9
Total Operating Revenues		971.4		590.4		246.7		69.2			360.4		150.2		90.7		143.8			(34.9	)		2,587.8
Operating Expenses
Insurance benefits		246.0		25.4		0.0		2.8			246.6		-		36.0		36.0			-			592.8
Interest credited to contract holder funds		251.7		161.1		104.3		38.2			-		-		-		43.8			-			599.1
Operating and acquisition expenses		188.3		241.1		66.5		9.0			68.6		120.5		38.0		46.6			(34.9	)		743.6
Taxes, licenses and fees		32.9		8.9		5.1		1.2			9.7		4.1		-		3.4			-			65.2
Interest and debt expense		-		-		-		-			-		-		-		62.4			-			62.4
Total Operating Expenses		718.9		436.6		176.0		51.1			324.9		124.6		74.0		192.1			(34.9	)		2,063.2
Income (loss) from operations before federal income taxes		252.5		153.8		70.8		18.2			35.5		25.6		16.7		(48.3	)		-			524.7
Federal income taxes		85.9		37.2		21.1		6.2			12.4		9.3		5.9		(20.3	)		-			157.7
Income from Operations	$	166.6	$	116.6	$	49.7	$	11.9		$	23.1	$	16.2	$	10.9	$	(28.0	)	$	-		$	367.0
(1)  For detail, see page 15.

3/31/2008  PAGE 10

Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	March			June			Sept.			Dec.			March
	2007			2007			2007			2007			2008
ASSETS
Investments
Corporate bonds	$	45,484.0		$	44,023.4		$	44,089.7		$	44,147.9		$	43,535.4
U.S. Government bonds		244.3			248.1			239.4			222.0			231.9
Foreign government bonds		1,077.1			975.0			1,030.0			1,037.5			1,037.4
Asset and mortgage-backed securities		9,186.2			9,946.2			10,479.7			10,604.6			10,568.8
State and municipal bonds		155.5			158.7			152.1			153.1			153.0
Preferred stocks - redeemable		108.4			95.5			95.3			110.7			97.5
Common stocks		503.8			487.9			499.3			413.9			384.2
Preferred stocks - equity		210.1			198.9			171.0			104.1			90.2
Total available-for-sale securities		56,969.5			56,133.8			56,756.4			56,793.7			56,098.4
Trading securities		2,909.7			2,818.3			2,716.6			2,730.2			2,713.6
Mortgage loans		7,416.0			7,310.8			7,280.7			7,422.7			7,531.9
Real estate		406.2			387.6			385.0			258.3			175.3
Policy loans		2,766.8			2,787.0			2,790.2			2,834.7			2,804.0
Other long-term investments		1,345.5			1,395.1			1,584.0			1,882.1			2,232.0
Total Investments		71,813.6			70,832.5			71,512.9			71,921.6			71,555.3
Cash and invested cash		904.7			989.1			1,327.5			1,665.5			2,446.8
Premiums and fees receivable		374.9			432.3			401.2			400.6			468.1
Accrued investment income		919.2			861.0			916.5			843.3			917.3
Amount recoverable from reinsurers		8,132.1			8,179.1			8,226.7			8,237.4			8,407.2
Deferred acquisition costs and value of business acquired		8,534.7			9,100.6			9,337.0			9,579.8			9,995.5
Goodwill		4,124.8			4,159.0			4,159.3			4,143.7			4,128.4
Other assets		3,375.6			3,599.5			3,432.6			3,529.9			2,727.7
Separate account assets		83,147.5			89,497.2			92,903.1			91,113.3			84,703.1
Total Assets	$	181,327.1		$	187,650.1		$	192,216.8		$	191,435.1		$	185,349.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Contract benefits and other contract holder funds:
Reserves	$	13,874.7		$	13,870.6		$	14,169.0		$	14,765.6		$	15,299.0
Unpaid claims		1,149.5			1,171.2			1,148.3			1,240.7			1,202.0
Premium deposit funds		20,115.8			20,201.6			19,885.4			19,687.8			19,886.9
Contract holders' funds		38,915.2			39,206.6			39,687.2			39,952.8			40,288.9
Total future contract benefits and other
contract holder funds		74,055.2			74,450.0			74,889.9			75,646.9			76,676.9
Short-term debt		493.8			231.0			327.1			550.2			410.6
Long-term debt - senior notes		2,483.4			2,382.4			2,682.5			2,892.7			2,901.5
Long-term debt - subordinated:
Capital securities		1,570.7			1,570.8			1,570.9			1,570.9			1,571.0
Junior subordinated debentures issued to
affiliated trusts		154.6			154.6			154.6			154.6			154.6
Embedded derivative - modco		229.8			157.5			191.5			219.5			205.2
Deferred gain on indemnity reinsurance		740.7			734.3			715.1			695.8			676.6
Federal income taxes		1,066.8			829.2			902.5			938.1			750.0
Other liabilities		5,352.4			5,807.3			5,916.6			5,934.8			6,213.4
Separate account liabilities		83,147.5			89,497.2			92,903.1			91,113.3			84,703.1
Total Liabilities		169,294.9			175,814.4			180,253.8			179,716.7			174,263.0
Preferred stock		0.5			0.5			0.5			0.4			0.4
Capital stock		7,318.5			7,362.1			7,308.6			7,200.5			7,074.8
Retained earnings		4,053.5			4,323.8			4,457.0			4,292.2			4,332.8
Unrealized gains on investments		528.1			16.6			56.0			86.0			(452.2	)
Gains - derivatives		46.8			35.5			31.9			53.0			44.3
Foreign currency		168.4			181.4			193.6			174.8			174.0
Funded status of employee benefit plans		(83.6	)		(84.2	)		(84.6	)		(88.5	)		(87.9	)
Total Stockholders' Equity		12,032.2			11,835.7			11,962.9			11,718.4			11,086.3
Total Liabilities and Stockholders' Equity	$	181,327.1		$	187,650.1		$	192,216.8		$	191,435.1		$	185,349.3
Stockholders' Equity Per Share	$	44.42		$	43.57		$	44.41		$	44.32		$	42.74
Book value, excluding AOCI	$	41.98		$	43.02		$	43.68		$	43.46		$	43.98
Common shares outstanding - assuming conversion of
preferred shares (in millions)		270.9			271.6			269.4			264.4			259.4

3/31/2008																			PAGE 11
Balance Sheet Data - Segment Highlights
Unaudited (in millions)
	Individual Markets
					Employer Markets
As of March 31, 2008	Life		Annuities		Defined Contribution		Executive Benefits			Group Protection		Investment Management		Lincoln UK		Other Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash	$	29,432.5	$	19,099.2	$	11,493.8	$	3,448.5		$	1,934.2	$	119.6	$	1,365.9	$	7,108.4		$	74,002.1
DAC and VOBA		5,670.0		2,570.8		564.2		298.1			129.0		-		760.4		3.0			9,995.5
Goodwill		2,192.3		1,039.8		20.2		-			274.3		247.7		16.5		337.7			4,128.4
DSI and other intangibles		92.0		295.7		4.9		-			-		4.9		-		385.9			783.4
Amounts recoverable from reinsurers		1,967.1		759.3		-		2.0			31.7		-		70.0		5,577.2			8,407.2
Separate account assets		4,216.3		54,850.4		16,265.4		1,039.7			-		-		8,079.5		251.8			84,703.1
Liabilities and Capital
Future contract benefits and other contract holder funds:
Future contract benefits		5,876.4		1,196.7		2.2		353.5			1,300.3		-		1,139.7		6,632.2			16,501.0
Other contract holder funds		25,755.6		17,622.7		11,207.0		3,053.5			16.6		-		394.4		2,126.0			60,175.8
Total future contract benefits and other contract holder funds		31,632.0		18,819.3		11,209.2		3,407.1			1,316.9		-		1,534.1		8,758.2			76,676.9
Allocated capital (2)		7,732.9		3,570.5		914.1		362.4			983.3		351.4		389.7		(2,896.3	)		11,408.0
As of December 31, 2007
Assets
Allocated investments and cash and invested cash	$	29,473.9	$	18,080.5	$	11,460.9	$	3,498.2		$	1,934.2	$	167.7	$	1,396.1	$	7,575.5		$	73,587.1
DAC and VOBA		5,408.7		2,477.0		513.8		283.0			123.4		-		772.1		1.8			9,579.8
Goodwill		2,201.0		1,045.6		20.2		(0.0	)		274.3		247.0		16.5		339.2			4,143.7
DSI and other intangibles		93.0		278.8		3.4		-			-		5.4		-		385.7			766.3
Amounts recoverable from reinsurers		1,943.6		744.4		-		4.9			31.3		-		69.8		5,443.5			8,237.4
Separate accounts assets		4,615.5		58,508.4		17,845.2		1,032.7			-		-		8,850.4		261.1			91,113.3
Liabilities and Capital
Future contract benefits and other contract holder funds:
Future contract benefits		5,898.7		816.9		0.0		356.2			1,273.0		-		1,146.9		6,057.9			15,549.6
Other contract holder funds		25,388.1		17,749.7		10,891.7		3,039.6			17.2		-		402.9		2,608.1			60,097.3
Total future contract benefits and other contract holder funds		31,286.8		18,566.6		10,891.7		3,395.9			1,290.2		-		1,549.8		8,666.0			75,646.9
Allocated capital (2)		7,835.8		3,552.7		898.7		353.9			968.3		348.5		361.8		(2,826.5	)		11,493.1
(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).

3/31/2008																PAGE 12
Individual Markets - Individual Life Insurance
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	87.7		$	87.8		$	84.7		$	90.0		$	86.3			-1.6	%
Surrender charges		15.2			15.7			14.0			14.1			15.8			3.7	%
Mortality assessments (1)		292.3			282.4			303.3			310.3			312.6			7.0	%
Expense assessments (1)		111.9			69.9			139.8			112.9			116.7			4.2	%
Net investment income		454.0			493.3			444.5			464.1			447.4			-1.5	%
Other revenues and fees		10.2			8.3			6.0			10.7			8.7			-14.6	%
Total Operating Revenues		971.4			957.5			992.1			1,002.1			987.5			1.7	%
Operating Expenses
Insurance benefits (1)		246.0			263.0			260.5			302.6			296.1			20.4	%
Interest credited to contract holder funds		251.7			254.0			255.1			260.2			258.2			2.6	%
Operating and acquisition expenses		221.2			171.0			219.0			199.0			212.8			-3.8	%
Total Operating Expenses		718.9			688.0			734.6			761.8			767.1			6.7	%
Income from operations before federal income taxes		252.5			269.4			257.6			240.3			220.5			-12.7	%
Federal income taxes		85.9			93.0			84.0			81.5			75.0			-12.7	%
Income from Operations	$	166.6		$	176.4		$	173.6		$	158.8		$	145.5			-12.7	%
Effective tax rate		34.0	%		34.5	%		32.6	%		33.9	%		34.0	%
Average equity	$	7,557.8		$	7,789.2		$	7,911.1		$	7,925.1		$	7,784.3
Return on average equity		8.8	%		9.1	%		8.8	%		8.0	%		7.5	%
Operating and Acquisition Expenses
Commissions	$	227.1		$	211.7		$	213.1		$	211.9		$	182.7			-19.5	%
General and administrative expenses		111.0			115.6			104.6			109.3			103.7			-6.6	%
Taxes, licenses and fees		32.9			26.6			27.3			23.5			29.7			-9.7	%
Total commissions and expenses incurred		371.1			353.8			345.1			344.7			316.1			-14.8	%
Less: commissions and expenses capitalized		(288.9	)		(272.4	)		(270.5	)		(268.1	)		(234.2	)		18.9	%
Amortization of DAC and VOBA, net of interest		139.1			89.6			144.4			122.5			130.8			-5.9	%
Net Operating and Acquisition Expenses	$	221.2		$	171.0		$	219.0		$	199.0		$	212.8			-3.8	%
General and administrative expenses -
basis points on account values - Annualized		166			170			151			156			148			(18	)
Roll Forward of Deferred Acquisition Costs & Value of Business Acquired
Balance at beginning-of-period	$	4,659.4		$	4,795.8		$	5,126.4		$	5,259.6		$	5,408.7
Deferrals		288.9			272.4			270.5			268.1			234.2
Amortization, net of interest: (1)
Unlocking		11.3			20.8			(3.8	)		6.1			(10.2	)
Other amortization		(150.4	)		(110.5	)		(140.6	)		(128.6	)		(120.6	)
Deferrals, net of amortization included in
operating and acquisition expenses		149.8			182.8			126.1			145.6			103.3
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(12.5	)		(2.4	)		0.6			56.1			7.0
Adjustment related to unrealized (gains)
losses on available-for-sale securities and derivatives		(0.9	)		150.2			6.5			(52.7	)		151.0
Balance at end-of-period	$	4,795.8		$	5,126.4		$	5,259.6		$	5,408.7		$	5,670.0
Roll Forward of Deferred Front-End Loads
Balance at beginning-of-period	$	449.5		$	490.6		$	569.0		$	585.2		$	648.7
Deferrals		65.5			112.4			83.9			98.2			87.5
Amortization, net of interest:
Unlocking		2.5			7.1			(27.0	)		0.7			(3.5	)
Other amortization		(26.9	)		(41.1	)		(40.7	)		(35.4	)		(36.0	)
Deferrals, net of amortization included in
expense assessments		41.0			78.4			16.2			63.5			48.0
Balance at end-of-period	$	490.6		$	569.0		$	585.2		$	648.7		$	696.7
(1) In the second quarter of 2007, we recognized certain adjustments that reduced expense assessments by $26 million, reduced mortality assessments by $15
million, increased insurance benefits by $3 million and reduced DAC amortization by $23 million.

3/31/2008											PAGE 13
Individual Markets - Individual Life Insurance
Operational Data
Unaudited
	For the Three Months Ended
	March		June		Sept.		Dec.		March		%
	2007		2007		2007		2007		2008		Change
Sales by Product (1) (in millions)
Universal Life
Excluding MoneyGuard®	$	166.1	$	145.0	$	143.9	$	141.3	$	113.7		-31.5	%
MoneyGuard®		7.4		9.9		10.9		12.1		11.0		49.6	%
Total		173.5		154.9		154.8		153.3		124.8		-28.1	%
Variable Universal Life		20.6		17.3		17.7		21.9		15.5		-24.4	%
Term/Whole Life		9.4		7.9		7.5		6.9		5.1		-45.4	%
Total	$	203.5	$	180.0	$	179.9	$	182.1	$	145.4		-28.5	%
First-Year Paid Premiums (in millions)
Universal Life
Excluding MoneyGuard®	$	367.9	$	315.7	$	303.8	$	304.6	$	245.4		-33.3	%
MoneyGuard®		49.2		65.9		72.4		80.4		73.6		49.6	%
Total		417.1		381.6		376.2		385.0		318.9		-23.5	%
Variable Universal Life		52.5		47.8		46.4		48.9		37.0		-29.5	%
Term/Whole Life		17.5		18.3		19.1		24.4		14.0		-19.8	%
Total	$	487.0	$	447.7	$	441.6	$	458.2	$	369.9		-24.0	%
Life Insurance In Force (in billions)
Universal Life and other	$	272.921	$	276.040	$	279.933	$	284.305	$	286.187		4.9	%
Term insurance		235.491		236.155		236.414		235.919		234.860		-0.3	%
Total Life Segment In Force	$	508.411	$	512.195	$	516.347	$	520.224	$	521.047		2.5	%
(1) Sales for Individual Life Insurance consist of first year commissionable premiums for Universal Life ("UL"), including MoneyGuard®, plus 5% of excess
premiums received, including UL internal replacements, and first year paid premiums for Whole Life and Term products.

3/31/2008																PAGE 14
Individual Markets - Individual Life Insurance
Account Value Roll Forward
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Interest Sensitive Life - Balance at Beginning-of-Period	$	21.890		$	22.228		$	22.517		$	22.818		$	23.161			5.8	%
Deposits		0.882			0.864			0.842			0.935			0.824			-6.6	%
Withdrawals and deaths		(0.264	)		(0.311	)		(0.258	)		(0.262	)		(0.314	)		-18.9	%
Net flows		0.618			0.553			0.585			0.673			0.509			-17.6	%
Contract holder assessments (1)		(0.523	)		(0.507	)		(0.527	)		(0.575	)		(0.561	)		-7.3	%
Interest credited		0.243			0.243			0.243			0.246			0.246			1.2	%
Interest Sensitive Life - Balance at End- of-Period (2)	$	22.228		$	22.517		$	22.818		$	23.161		$	23.355			5.1	%
Variable Universal Life - Balance at Beginning-of-Period	$	4.600		$	4.696		$	4.948		$	5.057		$	4.961			7.8	%
Deposits		0.157			0.142			0.137			0.151			0.143			-8.9	%
Withdrawals and deaths		(0.077	)		(0.109	)		(0.087	)		(0.079	)		(0.073	)		5.2	%
Net flows		0.080			0.033			0.050			0.072			0.070			-12.5	%
Contract holder assessments		(0.079	)		(0.080	)		(0.080	)		(0.082	)		(0.082	)		-3.8	%
Investment income and change in market value		0.095			0.299			0.139			(0.087	)		(0.423	)	NM
Variable Universal Life - Balance at End- of-Period	$	4.696		$	4.948		$	5.057		$	4.961		$	4.526			-3.6	%
Total Segment - Life Insurance Account Value Roll Forward
Balance at Beginning-of-Period	$	26.490		$	26.924		$	27.465		$	27.875		$	28.122			6.2	%
Deposits		1.039			1.005			0.980			1.086			0.967			-6.9	%
Withdrawals and deaths		(0.341	)		(0.420	)		(0.345	)		(0.341	)		(0.387	)		-13.5	%
Net flows		0.698			0.586			0.635			0.745			0.579			-17.0	%
Contract holder assessments (1)		(0.602	)		(0.586	)		(0.607	)		(0.657	)		(0.643	)		-6.8	%
Investment income and change in market value		0.338			0.542			0.382			0.159			(0.178	)	NM
Total Segment - Balance at End-of- Period	$	26.924		$	27.465		$	27.875		$	28.122		$	27.881			3.6	%
Life Product Spread Information (3)
																Change
Interest Sensitive Products																(Basis Points)
Net investment income (4) (5) (6)		6.48	%		6.99	%		6.09	%		6.30	%		6.04	%		(44	)
Interest credited to contract holders		4.46	%		4.45	%		4.41	%		4.41	%		4.34	%		(12	)
Spread (4) (5) (6)		2.02	%		2.54	%		1.68	%		1.89	%		1.70	%		(32	)
Traditional Products
Net investment income (4)		6.41	%		6.48	%		6.18	%		6.23	%		6.21	%		(20	)
(1) Interest sensitive contract holder assessments in the second quarter of 2007 includes +.017 related to certain adjustments.
(2) Includes universal life, interest sensitive whole life and the fixed investment option of VUL products.
(3) 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. We exclude net investment income earned on investments supporting statutory surplus and reverse repurchase agreement interest expense from our yield and spread calculations. 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 March 31, 2008, interest sensitive products represented approximately 81% of total interest sensitive and traditional earning assets.

(4) 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 4 bps in the 1st quarter of 2008, 16 bps in the 4th quarter of 2007, 9 bps in the 3rd quarter of 2007, 22 bps in the 2nd quarter of 2007 and 21 bps in the 1st quarter of 2007.  There was an impact on traditional products of 15 bps in the 1st quarter of 2008, 2 bps in the 4th quarter of 2007, 9 bps in the 3rd quarter of 2007, 14 bps in the 2nd quarter of 2007 and 2 bps in the 1st quarter of 2007.

(5) The net investment income and spread above include earnings from alternative investments, such as limited partnerships. The impact of these investments on investment income yields for interest sensitive products was (8) bps in the 1st quarter of 2008, 5 bps in the 4th quarter of 2007, (4) bps in the 3rd quarter of 2007, 70 bps in the 2nd quarter of 2007 and 14 bps in the 1st quarter of 2007. The impact of these investments on traditional products was (3) bps in the 1st quarter of 2008, (1) bp in the 4th quarter of 2007 and (6) bps in the 3rd quarter of 2007.

(6) The net investment income and spread above is partially offset by amortization associated with prepayment fee income. The impact of this offset to interest sensitive products was -0- bps in the 1st quarter of 2008, 1 bp in the 4th quarter of 2007, -0- bps in the 3rd quarter of 2007 and 8 bps in the 2nd quarter of 2007. There was an impact on traditional products of 4 bps in the 1st quarter of 2008.

3/31/2008										PAGE 15
Individual Markets - Individual Annuities
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	12.8		$	16.6		$	42.6		$	46.5		$	31.6			146.0	%
Surrender charges		9.7			10.1			9.8			9.1			9.6			-0.9	%
Expense assessments		210.9			233.9			249.4			265.2			236.0			11.9	%
Net investment income		265.3			265.3			249.4			251.8			247.8			-6.6	%
Operating realized gain (loss) (1)		1.3			1.3			0.9			2.2			10.2		NM
Other revenues and fees (2)		90.4			96.4			94.9			97.6			87.4			-3.3	%
Total Operating Revenues		590.4			623.7			647.0			672.3			622.6			5.5	%
Operating Expenses
Insurance benefits		25.4			26.6			56.3			62.0			51.3			105.3	%
Interest credited to contract holder funds		161.1			165.1			165.3			167.9			163.2			1.3	%
Operating and acquisition expenses		250.0			267.0			255.4			287.3			251.7			0.7	%
Total Operating Expenses		436.6			458.8			477.0			517.2			466.3			7.0	%
Income from operations before federal income taxes		153.8			164.9			170.0			155.1			156.3			1.1	%
Federal income taxes		37.2			41.5			44.1			36.2			38.5			2.9	%
Income from Operations	$	116.6		$	123.4		$	125.9		$	118.9		$	117.8			0.5	%
Effective tax rate		24.2	%		25.2	%		25.9	%		23.4	%		24.7	%
Average equity	$	3,446.7		$	3,491.1		$	3,537.8		$	3,549.1		$	3,561.6
Return on average equity		13.5	%		14.1	%		14.2	%		13.4	%		13.2	%
Income from Operations - basis points on
average account values		69			69			68			62			64
Operating Realized Gain (Loss) (1)
Indexed annuity net derivatives results (3)	$	0.9		$	1.2		$	0.2		$	(0.1	)	$	(1.4	)	NM
Guaranteed living benefits risk and profit charges (4)		0.8			1.4			1.6			1.8			5.8		NM
Guaranteed death benefits hedging offset (5)		(0.4	)		(1.3	)		(0.8	)		0.5			5.9		NM
Total Operating Realized Gain (Loss)	$	1.3		$	1.3		$	0.9		$	2.2		$	10.2		NM
Operating and Acquisition Expenses
Commissions	$	152.1		$	178.8		$	188.9		$	212.3		$	165.6			8.9	%
General and administrative expenses		69.2			82.2			80.9			96.7			80.2			15.9	%
Broker-dealer commissions and general and
administrative expenses		87.2			92.8			91.8			100.5			89.2			2.3	%
Taxes, licenses and fees		8.9			5.7			6.0			6.1			10.4			17.2	%
Total commissions and expenses incurred		317.4			359.6			367.6			415.6			345.4			8.8	%
Less: commissions and expenses capitalized		(157.6	)		(189.3	)		(196.1	)		(230.5	)		(172.8	)		-9.6	%
Amortization of DAC and VOBA, net of interest		90.2			96.8			83.9			102.3			79.1			-12.3	%
Net Operating and Acquisition Expenses	$	250.0		$	267.0		$	255.4		$	287.3		$	251.7			0.7	%
General and administrative expenses - basis
points on gross account values - Annualized (6)		41			46			44			51			44			3

(1)   The portion of the FAS 157 Attributed Fee included in income from Operations. See notes on page 18 for additional details.

(2)  Primarily broker-dealer revenues.

(3)  Changes in the fair value of the S&P 500 Index® call options that we hold and the change in the fair value of the embedded derivative liabilities of our Indexed Annuities products excluding the indexed annuity forward-starting option.

(4)  The portion of the rider fee revenue for GLB calculated as the attributed fee in excess of net valuation premium.

(5)  Change in the fair value of the derivatives that offsets the benefit ratio unlocking of our SOP 03-1 reserves on our GMDB riders, including our expected cost of the hedging instruments.

(6)  Includes distribution costs.

3/31/2008										PAGE 16
Individual Markets - Individual Annuities
Roll Forwards of DAC, VOBA, DFEL and DSI
Unaudited (millions of dollars)
Roll Forward of DAC & VOBA
	For the Three Months Ended
	March			June			Sept.			Dec.			March
	2007			2007			2007			2007			2008
Balance at beginning-of-period	$	2,050.4		$	2,082.0		$	2,236.8		$	2,347.4		$	2,477.0
Cumulative effect of adoption of SOP 05-1		(27.2	)		-			-			-			-
Inter-segment transfer		-			-			-			-			(6.9	)
Deferrals		157.6			189.3			196.1			230.5			172.8
Amortization, net of interest:
Unlocking		5.7			8.8			19.0			10.7			(0.6	)
Other amortization		(95.9	)		(105.6	)		(102.9	)		(112.9	)		(78.5	)
Deferrals, net of amortization included in
operating and acquisition expenses		67.4			92.6			112.2			128.2			93.7
Adjustment related to realized (gains) losses
on available-for-sale securities and derivatives		(8.5	)		(10.2	)		21.1			34.8			(10.5	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities and derivatives		(14.0	)		72.4			(22.8	)		(33.5	)		17.5
Business acquired		14.0			-			-			-			-
Balance at end-of-period	$	2,082.0		$	2,236.8		$	2,347.4		$	2,477.0		$	2,570.8
Roll Forward of DFEL
Balance at beginning-of-period	$	100.9		$	104.6		$	111.9		$	122.0		$	130.9
		(2.0	)		-			-			-			-
Deferrals		9.8			11.8			11.5			11.9			11.9
Amortization, net of interest:
Unlocking		0.5			0.2			1.4			(0.4	)		0.7
Other amortization		(3.4	)		(4.5	)		(4.1	)		(4.6	)		(2.7	)
Deferrals, net of amortization included in
expense assessments		6.9			7.5			8.9			6.9			9.9
Adjustment related to realized losses
on available-for-sale securities and derivatives		(1.0	)		(0.2	)		1.2			1.9			0.8
Balance at end-of-period	$	104.6		$	111.9		$	122.0		$	130.9		$	141.6
Roll Forward of DSI
Balance at beginning-of-period	$	193.7		$	206.2		$	224.7		$	248.7		$	278.8
Cumulative effect of adoption of SOP 05-1		(2.8	)		-			-			-			-
Inter-segment transfer		-			-			-			-			(1.3	)
Deferrals		23.7			27.3			29.7			35.5			25.8
Amortization, net of interest:
Unlocking		1.5			0.9			0.6			(0.9	)		0.5
Other amortization		(7.3	)		(8.6	)		(9.1	)		(10.1	)		(6.2	)
Deferrals, net of amortization included in
insurance benefits or interest credited		17.9			19.5			21.2			24.5			20.2
Adjustment related to realized (gains) losses
on available-for-sale securities		(2.6	)		(1.0	)		2.8			5.6			(1.9	)
Balance at end-of-period	$	206.2		$	224.7		$	248.7		$	278.8		$	295.7

3/31/2008										PAGE 17
Individual Markets - Individual Annuities
Account Value Roll Forward
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Balance at Beginning-of-Period	$	18.545		$	18.139		$	17.867		$	17.813		$	17.822			-3.9	%
Business acquired		0.040			-			-			-			-			-100.0	%
Inter-segment transfer		-			-			-			-			(0.089	)	NM
Gross deposits		0.821			0.982			1.231			1.288			1.160			41.3	%
Withdrawals and deaths		(0.887	)		(0.893	)		(0.891	)		(0.706	)		(0.585	)		34.0	%
Net flows		(0.066	)		0.089			0.340			0.582			0.575		NM
Transfer from (to) variable annuities		(0.557	)		(0.560	)		(0.589	)		(0.734	)		(0.680	)		-22.1	%
Interest credited		0.153			0.172			0.166			0.125			0.048			-68.6	%
Sales inducements deferred		0.024			0.027			0.030			0.035			0.026			8.3	%
Fixed Annuities - Gross		18.139			17.867			17.813			17.822			17.701			-2.4	%
Reinsurance ceded		(1.689	)		(1.598	)		(1.430	)		(1.352	)		(1.306	)		22.7	%
Fixed Annuities (Net of Ceded) - Balance at End-of-Period (1)	$	16.449		$	16.270		$	16.383		$	16.470		$	16.395			-0.3	%
Variable Annuities - Balance at Beginning-of-Period	$	48.169		$	50.300		$	55.171		$	58.293		$	58.643			21.7	%
Inter-segment transfer		-			-			-			-			(0.206	)	NM
Gross deposits		2.000			2.295			2.247			2.593			1.865			-6.8	%
Withdrawals and deaths		(1.179	)		(1.247	)		(1.296	)		(1.367	)		(1.259	)		-6.8	%
Net flows		0.821			1.048			0.951			1.226			0.607			-26.1	%
Transfer from (to) fixed annuities		0.556			0.560			0.589			0.734			0.680			22.3	%
Investment increase and change in market value		0.754			3.263			1.582			(1.611	)		(4.758	)	NM
Variable Annuities - Balance at End-of-Period (2)	$	50.300		$	55.171		$	58.293		$	58.643		$	54.966			9.3	%
Total Annuities - Balance at Beginning-of-Period	$	66.714		$	68.438		$	73.038		$	76.106		$	76.464			14.6	%
Business acquired		0.040			-			-			-			-			-100.0	%
Inter-segment transfer		-			-			-			-			(0.295	)	NM
Gross deposits		2.821			3.277			3.478			3.880			3.025			7.2	%
Withdrawals and deaths		(2.067	)		(2.140	)		(2.187	)		(2.072	)		(1.844	)		10.8	%
Net flows		0.754			1.138			1.291			1.808			1.181			56.6	%
Transfers		(0.001	)		-			-			-			(0.001	)		-
Interest credited and change in market value		0.907			3.435			1.748			(1.485	)		(4.710	)	NM
Sales inducements deferred		0.024			0.027			0.030			0.035			0.026			8.3	%
Total Annuities - Gross		68.438			73.038			76.106			76.464			72.666			6.2	%
Reinsurance ceded		(1.689	)		(1.598	)		(1.430	)		(1.352	)		(1.306	)		22.7	%
Total Annuities (Net of Ceded) - Balance at End-of-Period	$	66.749		$	71.441		$	74.676		$	75.113		$	71.361			6.9	%
Variable Annuities Under Agreement - Included Above	$	0.163		$	0.164		$	0.161		$	0.149		$	0.128			-21.5	%
Incremental Deposits: (3)
Fixed annuities	$	0.815		$	0.976		$	1.224		$	1.282		$	1.157			42.0	%
Variable annuities		1.979			2.265			2.217			2.558			1.838			-7.1	%
Total Incremental Deposits	$	2.794		$	3.241		$	3.441		$	3.840		$	2.994			7.2	%
(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.

3/31/2008																PAGE 18
Individual Markets - Individual Annuities
Account Values, Spread Information, GLB Expense Assessments,
GLB Attributed Fee and GLB Account Values by Type
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Excluding Fixed Portion of Variable Contracts
Deposits	$	0.126		$	0.129		$	0.286		$	0.231		$	0.086			-31.7	%
Withdrawals and deaths		(0.674	)		(0.677	)		(0.651	)		(0.486	)		(0.378	)		43.9	%
Net flows	$	(0.548	)	$	(0.548	)	$	(0.365	)	$	(0.255	)	$	(0.292	)		46.7	%
Gross fixed contract account values	$	10.818		$	10.377		$	10.115		$	9.960		$	9.767			-9.7	%
Reinsurance ceded		(1.689	)		(1.598	)		(1.430	)		(1.352	)		(1.306	)		22.7	%
Net fixed contract account values	$	9.129		$	8.779		$	8.684		$	8.609		$	8.462			-7.3	%
	$	0.000		$	0.000		$	-		$	-		$	-
Indexed Annuities
Deposits	$	0.160		$	0.191		$	0.199		$	0.204		$	0.218			36.3	%
Withdrawals and deaths		(0.063	)		(0.061	)		(0.059	)		(0.062	)		(0.083	)		-31.7	%
Net flows	$	0.098		$	0.130		$	0.140		$	0.143		$	0.135			37.8	%
Indexed Annuity Account Values	$	3.844		$	4.033		$	4.228		$	4.392		$	4.465			16.2	%
Fixed Portion of Variable Contracts
Deposits	$	0.535		$	0.662		$	0.746		$	0.853		$	0.856			60.0	%
Withdrawals and deaths		(0.151	)		(0.155	)		(0.181	)		(0.158	)		(0.124	)		17.9	%
Net flows	$	0.384		$	0.507		$	0.564		$	0.695		$	0.732			90.6	%
Fixed Portion of Variable Contract Account Values	$	3.476		$	3.458		$	3.470		$	3.470		$	3.469			-0.2	%
Variable Annuities - Including Fixed Portion of Variable Contracts
Deposits	$	2.535		$	2.957		$	2.993		$	3.445		$	2.721			7.3	%
Withdrawals and deaths		(1.330	)		(1.402	)		(1.477	)		(1.525	)		(1.383	)		-4.0	%
Net Flows	$	1.205		$	1.555		$	1.516		$	1.921		$	1.338			11.0	%
		-			-			-			-			-
Variable Contract Account Values	$	53.776		$	58.629		$	61.764		$	62.112		$	58.435			8.7	%
Average Daily Variable Annuity Separate Account Values	$	49.284		$	53.465		$	55.827		$	58.628		$	55.318			12.2	%
																Change
Individual Product Spread Information																(Basis Point)
Net investment income (1) (2) (3)		5.94	%		5.92	%		5.84	%		5.93	%		5.87	%		(7	)
Interest credited to contract holders (4)		3.63	%		3.74	%		3.76	%		3.77	%		3.81	%		18
Spread   (1) (2) (3)		2.31	%		2.18	%		2.08	%		2.16	%		2.06	%		(25	)
Variable Annuity Expense Assessments (in millions) (5)		224.9			249.7			267.1			286.5			271.6			20.8	%
GLB Expense Assessments (in millions) (6)		24.3			27.2			31.7			37.1			39.6			63.0	%
Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenue and income from operations (7)	$	3.2		$	3.5		$	3.8		$	4.4		$	15.9		NM
Attributed fee excluded from operating revenue and income from operations (8)		10.9			12.3			14.0			17.0			19.7			80.5	%
Total attributed fees on GLB	$	14.1		$	15.8		$	17.8		$	21.4		$	35.6			152.6	%
GLB Account Values by Type (in billions)
Guaranteed withdrawal benefits (9)	$	14.919		$	16.311		$	17.723		$	18.695		$	19.264			29.1	%
Guaranteed income benefits (10)		4.899			6.184			7.319			8.372			8.678			77.1	%
Total GLB account values	$	19.818		$	22.495		$	25.042		$	27.067		$	27.942			41.0	%
(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. We exclude net investment income earned on investments supporting statutory surplus, reverse repurchase agreement interest expense and inter-segment cash
management account interest expense from our yield and spread calculations. The average crediting rate is calculated using interest credited on annuity products before
DSI amortization, plus the immediate annuity reserve change (included within benefits), 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 5 bps in the 1st quarter of 2008, 11 bps in the 4th quarter of 2007, 4 bps in the 3rd quarter of 2007, 11 bps in
the 2nd quarter of 2007 and 5 bps in the 1st quarter of 2007.
(3) In the first quarter of 2008, we updated previously reported historical net investment income yields and interest rate spreads to conform to the presentation in the first
quarter of 2008, which is excluding hedge derivatives and collateral from average earning assets. The impact of the changes on spreads range from 6 bps - 8 bps per quarter.
(4) The 2007 spreads reflect a correction (a decrease) to interest credited to contract holders related to a correction to the opening balance sheet of JP that was finalized
in the first quarter of 2007. The impact of this correction was 9 bps in the first quarter of 2007.
(5) Comprised of the variable annuity expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of
attributed fees on GLB as described in footnotes 7 and 8 and disclosed above.
(6) Comprised of the GLB expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of
attributed fees on GLB as described in footnotes 7 and 8 and disclosed above.
(7) The portion of the GLB rider fees calculated as the attributed fees in excess of the net valuation premium. The attributed fees are the fees used in the calculation of the
embedded derivative. The net valuation premium represents the rider fees equal to the net present value of future benefit costs. This portion of the attributed fee is reported in
realized gains and losses and included in income from operations and operating revenue.
(8) Represents the portion of rider fee revenue for GLB required to fund the net valuation premium. This portion of the attributed fee is reported in realized gains and losses and
excluded in income from operations and operating revenue.
(9) Guaranteed withdrawal benefits include features that offer the contract holder a guarantee equal to the initial deposit (or contract value, if elected after issue), adjusted for
any subsequent purchase payments or withdrawals.
(10) For our guaranteed income benefits we offer other product riders allowing variable annuity contract holders access and control during the income distribution phase of their
contract. This added flexibility allows the contract holder to access the account value for transfers, additional withdrawals, and other service features like portfolio rebalancing.

3/31/2008 PAGE 19

Employer Markets - Defined Contribution
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Surrender charges	$	2.0		$	2.2		$	1.8		$	1.8		$	1.9			-6.9	%
Expense assessments		59.8			63.0			63.5			64.7			59.3			-0.8	%
Net investment income		180.3			182.2			172.9			173.3			171.7			-4.8	%
Other revenues and fees		4.7			4.6			5.2			3.6			4.8			3.6	%
Total Operating Revenues		246.7			252.0			243.4			243.3			237.7			-3.7	%
Operating Expenses
Interest credited to contract holder funds		104.3			104.6			104.6			104.8			105.9			1.5	%
Operating and acquisition expenses		71.6			80.6			84.7			77.3			76.6			6.9	%
Total Operating Expenses		176.0			185.2			189.3			182.1			182.2			3.3	%
Income from operations before federal income taxes		70.8			66.8			54.1			61.2			55.5			-20.9	%
Federal income taxes		21.1			19.5			12.9			18.1			15.1			-26.3	%
Income from Operations	$	49.7		$	47.3		$	41.2		$	43.1		$	40.4			-18.7	%
Effective tax rate		29.8	%		29.2	%		23.8	%		29.6	%		27.2	%
Average equity	$	936.0		$	906.6		$	901.4		$	902.7		$	906.4
Return on average equity		21.2	%		20.9	%		18.3	%		19.1	%		17.8	%
Income from Operations - basis points on
average account values		58			53			46			47			46
Operating and Acquisition Expenses
Commissions	$	19.3		$	21.3		$	19.9		$	20.3		$	19.6			1.7	%
General and administrative expenses		49.9			54.9			59.8			53.7			51.9			4.1	%
Taxes, licenses and fees		5.1			4.4			2.2			2.1			4.4			-13.6	%
Total commissions and expenses incurred		74.2			80.6			81.9			76.1			75.9			2.3	%
Less: commissions and expenses capitalized		(22.2	)		(22.5	)		(23.7	)		(23.7	)		(23.6	)		-6.2	%
Amortization of DAC and VOBA, net of interest		19.6			22.5			26.5			24.9			24.2			23.8	%
Net Operating and Acquisition Expenses	$	71.6		$	80.6		$	84.7		$	77.3		$	76.6			6.9	%
General and administrative expenses - basis
points on account values - Annualized (1)		59			62			67			59			59			1
(1)  Includes distribution costs.

3/31/2008 PAGE 20

Employer Markets - Defined Contribution
Roll Forwards of DAC, VOBA and DSI
Unaudited (millions of dollars)
Roll Forward of DAC & VOBA
	For the Three Months Ended
	March			June			Sept.			Dec.			March
	2007			2007			2007			2007			2008
Balance at beginning-of-period	$	497.6		$	489.4		$	541.9		$	531.8		$	513.8
Cumulative effect of adoption of SOP 05-1		(1.4	)		-			-			-			-
Inter-segment transfer		-			-			-			-			6.9
Deferrals		22.2			22.5			23.7			23.7			23.6
Amortization, net of interest:
Unlocking		(0.5	)		(2.0	)		(5.0	)		(1.2	)		(2.5	)
Other amortization		(19.0	)		(20.5	)		(21.5	)		(23.7	)		(21.4	)
Deferrals, net of amortization included in
operating and acquisition expenses		2.6			(0.0	)		(2.8	)		(1.2	)		(0.4	)
Adjustment related to realized (gains) losses
on available-for-sale securities		(2.1	)		(0.8	)		(0.6	)		3.4			0.6
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(7.2	)		53.3			(6.8	)		(20.2	)		43.2
Balance at end-of-period	$	489.4		$	541.9		$	531.8		$	513.8		$	564.2
Roll Forward of DSI
Balance at beginning-of-period	$	0.1		$	0.2		$	0.3		$	0.4		$	0.4
Inter-segment transfer		-			-			-			-			1.3
Deferrals		0.1			0.1			0.1			0.0			0.2
Amortization, net of interest:
Unlocking		(0.0	)		0.0			(0.0	)		(0.0	)		(0.1	)
Deferrals, net of amortization included in
insurance benefits or interest credited		0.1			0.1			0.1			0.0			0.1
Balance at end-of-period	$	0.2		$	0.3		$	0.4		$	0.4		$	1.9

3/31/2008 PAGE 21

Employer Markets - Defined Contribution
Account Value Roll Forward
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Balance at Beginning-of-Period	$	11.006		$	10.993		$	10.940		$	10.891		$	10.889			-1.1	%
Inter-segment transfer		-			-			-			-			0.089		NM
Gross deposits		0.299			0.233			0.305			0.268			0.332			11.0	%
Withdrawals and deaths		(0.399	)		(0.376	)		(0.450	)		(0.411	)		(0.370	)		7.3	%
Net flows		(0.101	)		(0.143	)		(0.144	)		(0.143	)		(0.038	)		62.4	%
Transfer from (to) variable annuities		(0.017	)		(0.012	)		(0.011	)		0.031			0.172		NM
Interest credited		0.104			0.102			0.106			0.111			0.105			1.0	%
Fixed Annuities - Balance at End-of-Period (1)	$	10.993		$	10.940		$	10.891		$	10.889		$	11.217			2.0	%
Variable Annuities - Balance at Beginning-of-Period	$	17.475		$	17.676		$	18.480		$	18.581		$	17.876			2.3	%
Inter-segment transfer		-			-			-			-			0.206		NM
Gross deposits		0.655			0.577			0.564			0.560			0.674			2.9	%
Withdrawals and deaths		(0.813	)		(0.747	)		(0.810	)		(0.842	)		(0.833	)		-2.5	%
Net flows		(0.158	)		(0.170	)		(0.247	)		(0.283	)		(0.158	)		-
Transfer from (to) fixed annuities		0.004			0.007			(0.028	)		(0.012	)		(0.143	)	NM
Investment increase and change in market value		0.354			0.968			0.375			(0.410	)		(1.488	)	NM
Variable Annuities - Balance at End-of-Period (2)	$	17.676		$	18.480		$	18.581		$	17.876		$	16.292			-7.8	%
Total Annuities - Balance at Beginning-of-Period	$	28.482		$	28.669		$	29.421		$	29.471		$	28.765			1.0	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		0.953			0.809			0.869			0.828			1.007			5.7	%
Withdrawals and deaths		(1.212	)		(1.122	)		(1.260	)		(1.253	)		(1.203	)		0.7	%
Net flows		(0.259	)		(0.313	)		(0.391	)		(0.426	)		(0.196	)		24.3	%
Transfers		(0.012	)		(0.005	)		(0.039	)		0.019			0.028		NM
Interest credited and change in market value		0.458			1.070			0.481			(0.300	)		(1.383	)	NM
Total Annuities - Balance at End-of-Period	$	28.669		$	29.421		$	29.471		$	28.765		$	27.509			-4.0	%
Alliance and Smart Future Mutual Funds - Balance at Beginning-of-Period	$	5.175		$	5.807		$	6.543		$	7.165		$	7.293			40.9	%
Plan/Participant Rollovers		0.279			0.217			0.411			0.168			0.221			-20.8	%
Additional contributions		0.254			0.247			0.245			0.269			0.324			27.6	%
Gross deposits		0.533			0.464			0.656			0.437			0.545			2.3	%
Withdrawals and deaths		(0.054	)		(0.077	)		(0.132	)		(0.102	)		(0.069	)		-27.8	%
Net flows		0.480			0.387			0.524			0.335			0.477			-0.6	%
Transfers		0.005			0.040			(0.013	)		(0.023	)		(0.070	)	NM
Interest credited and change in market value		0.147			0.310			0.111			(0.184	)		(0.445	)	NM
Total Alliance and Smart Future Mutual Funds -
Balance at End-of-Period (3)	$	5.807		$	6.543		$	7.165		$	7.293		$	7.254			24.9	%
Total Defined Contribution Segment Account Values -
including Alliance and Smart Future Mutual Funds -
Balance at Beginning-of-Period	$	33.656		$	34.475		$	35.964		$	36.636		$	36.058			7.1	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		1.487			1.273			1.525			1.265			1.552			4.4	%
Withdrawals and deaths		(1.266	)		(1.199	)		(1.392	)		(1.356	)		(1.271	)		-0.4	%
Net flows		0.221			0.074			0.133			(0.091	)		0.281			27.1	%
Transfers		(0.007	)		0.035			(0.052	)		(0.004	)		(0.042	)	NM
Interest credited and change in market value		0.606			1.379			0.592			(0.484	)		(1.828	)	NM
Total Defined Contribution Segment Account Values -
Balance at End-of-Period	$	34.475		$	35.964		$	36.636		$	36.058		$	34.763			0.8	%
Variable Annuities Under Agreement - Included Above		0.016			0.017			0.018			0.017			0.015			-6.3	%
Incremental Deposits: (4)
Fixed annuities	$	0.282		$	0.224		$	0.220		$	0.197		$	0.285			1.1	%
Variable annuities		0.581			0.631			0.556			0.551			0.667			14.8	%
Total annuities incremental deposits		0.862			0.855			0.776			0.747			0.953			10.6	%
Total Alliance mutual funds incremental deposits		0.533			0.464			0.656			0.437			0.545			2.3	%
Total Defined Contribution Incremental Deposits	$	1.396		$	1.318		$	1.431		$	1.185		$	1.498			7.3	%

(1) Includes fixed annuity products offered under the Alliance Program and the fixed portion of variable annuities.

(2) Excludes the fixed portion of variable annuities.

(3) Represents amounts attributable to Alliance and Smart Future mutual fund net flows.  Alliance and Smart Future mutual fund account values are not included in the separate

    accounts reported on our Consolidated Balance Sheets.

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

3/31/2008 PAGE 22

Employer Markets - Defined Contribution
Account Value Roll Forward - By Product
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Total Micro - Small Segment - Balance at Beginning-of- Period	$	7.535		$	7.689		$	8.012		$	8.077		$	7.798			3.5	%
Gross deposits		0.460			0.377			0.391			0.365			0.499			8.5	%
Withdrawals and deaths		(0.451	)		(0.434	)		(0.481	)		(0.565	)		(0.569	)		-26.2	%
Net flows		0.009			(0.056	)		(0.090	)		(0.201	)		(0.070	)	NM
Transfers		(0.005	)		(0.000	)		0.000			0.000			(0.012	)	NM
Investment increase and change in market value		0.150			0.379			0.155			(0.079	)		(0.497	)	NM
Total Micro - Small Segment - Balance at End-of-Period	$	7.689		$	8.012		$	8.077		$	7.798		$	7.218			-6.1	%
Total Mid - Large Segment - Balance at Beginning-of-Period	$	6.975		$	7.734		$	8.555		$	9.232		$	9.463			35.7	%
Gross deposits		0.711			0.590			0.861			0.610			0.769			8.2	%
Withdrawals and deaths		(0.118	)		(0.132	)		(0.263	)		(0.212	)		(0.159	)		-34.7	%
Net flows		0.593			0.458			0.598			0.398			0.610			2.9	%
Transfers		0.002			0.036			(0.051	)		(0.003	)		(0.029	)	NM
Investment increase and change in market value		0.164			0.328			0.130			(0.163	)		(0.423	)	NM
Total Mid - Large Segment - Balance at End-of-Period	$	7.734		$	8.555		$	9.232		$	9.463		$	9.621			24.4	%
Total Multi Fund and Other Variable Annuities -
Balance at Beginning-of-Period	$	19.146		$	19.053		$	19.397		$	19.327		$	18.797			-1.8	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		0.316			0.306			0.273			0.290			0.284			-10.1	%
Withdrawals and deaths		(0.697	)		(0.633	)		(0.649	)		(0.578	)		(0.543	)		22.1	%
Net flows		(0.381	)		(0.327	)		(0.376	)		(0.288	)		(0.259	)		32.0	%
Transfers		(0.004	)		(0.000	)		(0.001	)		(0.000	)		(0.001	)		75.0	%
Investment increase and change in market value		0.292			0.672			0.306			(0.241	)		(0.908	)	NM
Total Multi Fund and Other Variable Annuities -
Balance at End-of-Period	$	19.053		$	19.397		$	19.327		$	18.797		$	17.924			-5.9	%
Total Defined Contribution Account Values -
Including Alliance and Smart Future Mutual Funds -
Balance at Beginning-of-Period	$	33.656		$	34.475		$	35.964		$	36.636		$	36.058			7.1	%
Inter-segment transfer		-			-			-			-			0.295		NM
Gross deposits		1.487			1.273			1.525			1.265			1.552			4.4	%
Withdrawals and deaths		(1.266	)		(1.199	)		(1.392	)		(1.356	)		(1.271	)		-0.4	%
Net flows		0.221			0.074			0.133			(0.091	)		0.281			27.1	%
Transfers		(0.007	)		0.035			(0.052	)		(0.004	)		(0.042	)	NM
Investment increase and change in market value		0.606			1.379			0.592			(0.484	)		(1.828	)	NM
Total Defined Contribution Segment Account Values -
Balance at End-of-Period (1)	$	34.475		$	35.964		$	36.636		$	36.058		$	34.763			0.8	%
(1) Balance at end of period includes Alliance and Smart Future mutual fund account values. Alliance and Smart Future Mutual funds are not included in the separate accounts
reported on our Consolidated Balance Sheets.

3/31/2008	PAGE 23
Employer Markets - Defined Contribution
Supplemental Data
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Fixed Annuities - Excluding Fixed Portion of Variable Contracts
Deposits	$	0.198		$	0.146		$	0.221		$	0.189		$	0.240			21.2	%
Withdrawals and deaths		(0.166	)		(0.140	)		(0.215	)		(0.203	)		(0.160	)		3.6	%
Net flows	$	0.032		$	0.006		$	0.006		$	(0.014	)	$	0.080			150.0	%
Fixed Contract Account Values	$	4.870		$	4.917		$	4.943		$	4.996		$	5.166			6.1	%
Fixed Portion of Variable Contracts
Deposits	$	0.100		$	0.087		$	0.084		$	0.079		$	0.093			-7.0	%
Withdrawals and deaths		(0.233	)		(0.236	)		(0.235	)		(0.208	)		(0.210	)		9.9	%
Net flows	$	(0.133	)	$	(0.149	)	$	(0.150	)	$	(0.129	)	$	(0.117	)		12.0	%
Fixed Portion of Variable Contract Account Values	$	6.123		$	6.023		$	5.948		$	5.893		$	6.051			-1.2	%
Variable Annuities - Including Fixed Portion of Variable Contracts
Deposits	$	0.755		$	0.664		$	0.648		$	0.639		$	0.767			1.6	%
Withdrawals and deaths		(1.046	)		(0.982	)		(1.045	)		(1.050	)		(1.043	)		0.3	%
Net flows	$	(0.291	)	$	(0.319	)	$	(0.397	)	$	(0.411	)	$	(0.276	)		5.2	%
Variable Contract Account Values	$	23.799		$	24.504		$	24.528		$	23.769		$	22.343			-6.1	%
Average Daily Variable Annuity Account Values	$	17.582		$	18.377		$	18.162		$	18.235		$	16.640			-5.4	%
Total Annuity Based Retirement Plan Product Spread Information (1)																Change (Basis Point)
Net investment income (2) (3)		6.20	%		6.13	%		6.00	%		6.05	%		5.92	%		(28	)
Interest credited to contract holders		3.81	%		3.82	%		3.84	%		3.85	%		3.81	%		-
Spread (2) (3)		2.39	%		2.31	%		2.16	%		2.20	%		2.11	%		(28	)

(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.  We exclude net investment income earned on investments supporting statutory surplus from our spread calculations.  The average crediting rate is

     calculated using interest credited on annuity products less amortization related to DSI interest, divided by average fixed account values.

(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums.  The impact

     of these premiums on investment income and spread was 2 bps in the 1st quarter of 2008, 5 bps in the 4th quarter of 2007, 7 bps in the 3rd quarter of 2007, 9 bps

     in the 2nd quarter of 2007 and 3 bps in the 1st quarter of 2007.

(3)  The net investment income and spread reported above include earnings from alternative investments, such as limited partnerships and hedge funds.  The impact on

     investment income yields from these investments was (6) bps in the 1st quarter of 2008, (2) bps in the 4th quarter of 2007, (11) bps in the 3rd quarter of 2007, 11 bps

     in the 2nd quarter of 2007 and 7 bps in the 1st quarter of 2007.

3/31/2008 PAGE 24

Employer Markets - Executive Benefits
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	0.1		$	0.1		$	0.1		$	0.0		$	0.1			17.5	%
Surrender charges		(0.0	)		0.0			0.0			0.1			(0.0	)	NM
Mortality assessments		8.9			8.2			8.4			9.0			9.1			1.9	%
Expense assessments		4.6			4.7			4.0			4.7			4.6			1.0	%
Net investment income		55.8			53.1			51.8			52.3			51.9			-7.0	%
Other revenues and fees		(0.1	)		0.0			(0.1	)		(0.0	)		(0.1	)		22.9	%
Total Operating Revenues		69.2			66.1			64.2			66.1			65.6			-5.3	%
Operating Expenses
Insurance benefits		2.8			2.7			5.1			6.3			2.5			-9.8	%
Interest credited to contract holder funds		38.2			38.1			37.8			38.0			38.4			0.5	%
Operating and acquisition expenses		10.2			8.8			8.7			3.7			6.7			-34.1	%
Total Operating Expenses		51.1			49.7			51.6			48.0			47.6			-6.9	%
Income from operations before federal income taxes		18.2			16.5			12.7			18.1			18.0			-0.8	%
Federal income taxes		6.2			5.6			3.8			6.2			6.1			-2.1	%
Income from Operations	$	11.9		$	10.8		$	8.9		$	11.9		$	11.9			-0.1	%
Effective tax rate		34.4	%		34.3	%		30.0	%		34.4	%		33.9	%
Average equity	$	357.1		$	345.5		$	336.5		$	346.3		$	358.1
Return on average equity		13.3	%		12.5	%		10.5	%		13.7	%		13.3	%
Operating and Acquisition Expenses
Commissions	$	6.5		$	6.8		$	6.4		$	14.0		$	11.9			82.8	%
General and administrative expenses		1.7			1.9			3.0			2.3			2.7			61.5	%
Taxes, licenses and fees		1.2			1.0			1.0			1.5			2.0			70.0	%
Total commissions and expenses incurred		9.4			9.7			10.4			17.8			16.6			77.4	%
Less: commissions and expenses capitalized		(6.9	)		(6.7	)		(6.6	)		(14.1	)		(11.6	)		-67.5	%
Amortization of DAC and VOBA, net of interest		7.7			5.8			4.8			0.0			1.7			-77.7	%
Net Operating and Acquisition Expenses	$	10.2		$	8.8		$	8.7		$	3.7		$	6.7			-34.1	%
		-			-			-			-			-
General and administrative expenses - basis
points on account values - Annualized (1)		16			18			27			21			24			8
Roll Forward of DAC & VOBA
Balance at beginning-of-period	$	265.3		$	260.5		$	276.2		$	273.2		$	283.0
Deferrals		6.9			6.7			6.6			14.1			11.6
Amortization, net of interest:
Unlocking		(2.7	)		(2.3	)		(1.5	)		2.3			1.1
Other amortization		(5.1	)		(3.4	)		(3.4	)		(2.3	)		(2.8	)
Deferrals, net of amortization included in
operating and acquisition expenses		(0.8	)		0.9			1.8			14.1			9.9
Adjustment related to realized (gains) losses
on available-for-sale securities		(0.5	)		(0.1	)		0.1			0.6			0.2
Adjustment related to unrealized (gains) losses
on available-for-sale securities		(3.4	)		14.9			(4.8	)		(4.9	)		4.9
Balance at end-of-period	$	260.5		$	276.2		$	273.2		$	283.0		$	298.1
Roll Forward of DFEL
Balance at beginning-of-period	$	21.7		$	22.0		$	21.9		$	22.4		$	23.8
Deferrals		1.1			0.9			0.7			1.4			1.7
Amortization, net of interest:
Unlocking		(0.3	)		(0.6	)		0.1			0.3			0.1
Other amortization		(0.4	)		(0.3	)		(0.3	)		(0.3	)		(0.2	)
Deferrals, net of amortization included in
expense assessments		0.3			(0.1	)		0.5			1.4			1.6
Balance at end-of-period	$	22.0		$	21.9		$	22.4		$	23.8		$	25.5
(1)  Includes distribution costs.

3/31/2008 PAGE 25

Employer Markets - Executive Benefits
Account Value Roll Forward & Supplemental Data
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
COLI/BOLI - Balance at Beginning-of-Period	$	4.305		$	4.264		$	4.353		$	4.391		$	4.436			3.0	%
Deposits (1)		0.065			0.079			0.052			0.107			0.165			153.8	%
Withdrawals and deaths (1)		(0.140	)		(0.053	)		(0.057	)		(0.070	)		(0.094	)		32.9	%
Net flows		(0.075	)		0.026			(0.005	)		0.037			0.071			194.7	%
Contract holder assessments		(0.018	)		(0.017	)		(0.017	)		(0.019	)		(0.020	)		-11.1	%
Interest credited and change in market value		0.052			0.080			0.060			0.027			(0.026	)	NM
COLI/BOLI - Balance at End-of-Period	$	4.264		$	4.353		$	4.391		$	4.436		$	4.460			4.6	%
COLI/BOLI In Force	$	14.747		$	14.809		$	14.900		$	15.292		$	15.826			7.3	%

(1)  1st quarter 2008 Deposits include $0.044 billion and Withdrawals and deaths include $(0.044) billion related to the exchange of legacy Jefferson-Pilot products

      with new Lincoln products.

3/31/2008 PAGE 26

Employer Markets - Group Protection
Income Statements & Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	331.3		$	361.3		$	336.8		$	349.7		$	370.4			11.8	%
Net investment income		27.9			28.5			29.5			29.5			27.7			-0.6	%
Other revenues and fees		1.1			1.2			1.3			1.4			1.2			9.6	%
Total Operating Revenues		360.4			391.0			367.5			380.6			399.4			10.8	%
Operating Expenses
Insurance benefits		246.6			265.7			235.0			252.1			269.2			9.2	%
Operating and acquisition expenses		78.3			80.7			81.4			85.1			89.6			14.5	%
Total Operating Expenses		324.9			346.3			316.4			337.2			358.8			10.5	%
Income from operations before federal income taxes		35.5			44.7			51.2			43.4			40.6			14.1	%
Federal income taxes		12.4			15.7			17.9			15.2			14.2			14.4	%
Income from Operations	$	23.1		$	29.0		$	33.2		$	28.2		$	26.3			14.0	%
Effective tax rate		35.0	%		35.1	%		35.1	%		35.1	%		35.1	%
Average equity	$	915.1		$	917.5		$	936.2		$	956.4		$	975.8
Return on average equity		10.1	%		12.6	%		14.2	%		11.8	%		10.8	%
Operating and Acquisition Expenses
Commissions	$	39.4		$	41.4		$	40.3		$	43.1		$	43.5			10.5	%
General and administrative expenses		32.7			37.5			37.9			42.8			41.7			27.6	%
Taxes, licenses and fees		9.7			9.5			8.1			6.2			10.0			3.2	%
Total commissions and expenses incurred		81.8			88.4			86.3			92.1			95.3			16.5	%
Less: commissions and expenses capitalized		(11.2	)		(13.5	)		(13.0	)		(16.7	)		(13.8	)		-23.4	%
Amortization of DAC and VOBA, net of interest		7.6			5.8			8.1			9.7			8.1			6.6	%
Net Operating and Acquisition Expenses	$	78.3		$	80.7		$	81.4		$	85.1		$	89.6			14.5	%
General and administrative expenses as a
percentage of premiums		9.9	%		10.4	%		11.2	%		12.2	%		11.3	%		14.14	%
Roll Forward of DAC & VOBA
Balance at beginning-of-period	$	137.6		$	103.7		$	111.4		$	116.4		$	123.4
Cumulative effect of adoption of SOP 05-1		(37.5	)		-			-			-			-
Deferrals		11.2			13.5			13.0			16.7			13.8
Amortization, net of interest		(7.6	)		(5.8	)		(8.1	)		(9.7	)		(8.1	)
Deferrals, net of amortization included in
operating and acquisition expenses		3.5			7.8			5.0			7.0			5.7
Balance at end-of-period	$	103.7		$	111.4		$	116.4		$	123.4		$	129.0

3/31/2008   PAGE 27

Employer Markets - Group Protection
Supplemental Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Annualized Sales
Life	$	22.5		$	23.8		$	22.0		$	53.9		$	21.3			-5.6	%
Disability		28.6			28.9			30.5			72.1			24.9			-12.9	%
Dental		9.4			9.5			8.3			16.6			7.9			-16.3	%
Premiums
Life	$	118.6		$	125.0		$	123.4		$	126.5		$	132.9			12.0	%
Disability		144.8			150.4			151.1			155.2			163.2			12.7	%
Dental		32.9			33.5			34.1			35.2			36.5			10.9	%
Other		35.0			52.5			28.3			32.8			37.8			8.1	%
Total	$	331.3		$	361.3		$	336.8		$	349.7		$	370.4			11.8	%
Product Line Results
Life	$	8.6		$	10.0		$	11.0		$	11.2		$	10.1			17.2	%
Disability		13.3			18.1			18.8			13.7			15.4			15.2	%
Dental		0.2			(0.1	)		1.3			2.1			(0.3	)	NM
Other		0.9			1.0			2.2			1.2			1.2			27.6	%
Total	$	23.1		$	29.0		$	33.2		$	28.2		$	26.3			14.0	%
Loss Ratios
Life		75.0	%		73.9	%		71.2	%		72.1	%		71.9	%		-4.1	%
Disability		69.5	%		66.4	%		65.0	%		69.1	%		68.1	%		-2.0	%
Dental		79.2	%		79.3	%		74.9	%		73.1	%		80.8	%		2.0	%
Combined loss ratios		72.7	%		70.8	%		68.6	%		70.7	%		71.0	%		-2.3	%

3/31/2008 PAGE 28

Investment Management
Income Statements
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Investment advisory fees - external	$	89.2		$	90.8		$	91.5		$	88.2		$	76.2			-14.5	%
Investment advisory fees - inter-segment		25.7			21.5			20.1			19.8			20.0			-22.1	%
Other revenues and fees		35.3			38.7			38.5			31.0			24.1			-31.8	%
Total Operating Revenues		150.2			151.0			150.1			139.0			120.3			-19.9	%
Operating Expenses
Operating and administrative expenses		124.6			133.1			116.0			96.8			101.1			-18.9	%
Total Operating Expenses		124.6			133.1			116.0			96.8			101.1			-18.9	%
Income from operations before federal income taxes		25.6			17.9			34.1			42.2			19.2			-24.8	%
Federal income taxes		9.3			6.6			12.3			15.2			7.1			-24.1	%
Income from Operations	$	16.2		$	11.3		$	21.8		$	27.0		$	12.1			-25.3	%
Effective tax rate		36.4	%		36.8	%		36.1	%		35.9	%		36.8	%
Pre-Tax Operating Margin		17.0	%		11.8	%		22.7	%		30.3	%		16.0	%
After-Tax Operating Margin		10.8	%		7.5	%		14.5	%		19.4	%		10.1	%
Operating and Administrative Expenses
General and administrative expenses	$	106.5		$	116.7		$	100.5		$	81.0		$	87.5			-17.8	%
Depreciation and amortization		2.6			2.5			2.5			2.3			2.2			-15.6	%
Sub-advisory fees		10.0			8.4			7.7			8.1			7.2			-27.6	%
Total general and administrative expenses		119.1			127.7			110.7			91.4			97.0			-18.6	%
Taxes, licenses and fees		4.1			4.0			3.9			4.0			3.6			-11.2	%
Amortization of intangibles		1.4			1.4			1.4			1.4			0.5			-67.8	%
Total Operating and Administrative Expenses	$	124.6		$	133.1		$	116.0		$	96.8		$	101.1			-18.9	%

3/31/2008 PAGE 29

Investment Management
Assets Under Management Roll Forward
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Retail Fixed - Balance at Beginning-of-Period	$	10.993		$	11.644		$	12.303		$	13.014		$	13.463			22.5	%
Sales (1)		1.365			1.494			1.467			1.635			1.981			45.1	%
Redemptions (2)		(0.910	)		(1.062	)		(1.060	)		(1.330	)		(1.395	)		-53.3	%
Transfers		0.014			(0.005	)		0.027			0.017			0.054			285.7	%
Net flows		0.470			0.428			0.434			0.321			0.640			36.2	%
Net investment gains and change in market value		0.181			0.119			0.278			0.145			0.065			-64.1	%
Transfer of assets to third-party (2)		-			(0.055	)		-			(0.018	)		-		NM
Transfer of assets to an intercompany manager (3)		-			0.166			-			-			-		NM
Retail Fixed - Balance at End-of-Period (4)	$	11.644		$	12.303		$	13.014		$	13.463		$	14.168			21.7	%
Retail Equity - Balance at Beginning-of-Period	$	39.627		$	40.250		$	38.586		$	38.166		$	36.250			-8.5	%
Sales (1)		2.238			1.778			1.344			1.957			1.514			-32.4	%
Redemptions (2)		(2.455	)		(2.487	)		(2.084	)		(2.903	)		(2.752	)		-12.1	%
Transfers		(0.020	)		0.004			(0.029	)		(0.025	)		(0.057	)	NM
Net flows		(0.237	)		(0.704	)		(0.768	)		(0.970	)		(1.295	)	NM
Net investment gains and change in market value		0.861			2.190			0.348			(0.915	)		(3.492	)	NM
Transfer of assets to third-party (2)		-			(0.099	)		-			(0.030	)		-		NM
Transfer of assets to an intercompany manager (3)		-			(3.051	)		-			-			-		NM
Retail Equity - Balance at End-of-Period (4)	$	40.250		$	38.586		$	38.166		$	36.250		$	31.463			-21.8	%
Total Retail - Balance at Beginning-of-Period	$	50.620		$	51.895		$	50.889		$	51.180		$	49.713			-1.8	%
Retail sales - annuities		1.300			0.902			0.891			0.954			1.562			20.2	%
Retail sales - mutual funds		1.753			1.896			1.543			2.241			1.592			-9.2	%
Retail sales - managed accounts and other		0.550			0.474			0.377			0.398			0.341			-38.0	%
Total retail sales (1)		3.603			3.273			2.811			3.592			3.495			-3.0	%
Redemptions (2)		(3.365	)		(3.548	)		(3.144	)		(4.233	)		(4.147	)		-23.2	%
Transfers		(0.005	)		(0.001	)		(0.001	)		(0.008	)		(0.003	)		40.0	%
Net flows		0.233			(0.277	)		(0.334	)		(0.649	)		(0.655	)	NM
Net investment gains and change in market value		1.041			2.309			0.626			(0.770	)		(3.427	)	NM
Transfer of assets to third-party (2)		-			(0.153	)		-			(0.048	)		-		NM
Transfer of assets to an intercompany manager (3)		-			(2.885	)		-			-			-		NM
Total Retail - Balance at End-of-Period (4)	$	51.895		$	50.889		$	51.180		$	49.713		$	45.631			-12.1	%
Institutional Fixed - Balance at Beginning-of-Period	$	22.841		$	23.469		$	23.565		$	24.837		$	12.746			-44.2	%
Inflows (1)		1.560			1.514			2.233			0.577			0.243			-84.4	%
Withdrawals/terminations		(0.480	)		(1.271	)		(1.306	)		(0.673	)		(0.638	)		-32.9	%
Transfers		0.000			(0.000	)		(0.001	)		0.138			0.002		NM
Net flows		1.081			0.242			0.927			0.041			(0.394	)	NM
Net investment gains and change in market value		0.328			(0.146	)		0.345			0.180			0.057			-82.6	%
Transfer of assets to third-party (5)		-			-			-			(12.313	)		-		NM
Transfer of assets to an intercompany manager (3)		(0.780	)		-			-			-			-			100.0	%
Institutional Fixed - Balance at End-of-Period (4)	$	23.469		$	23.565		$	24.837		$	12.746		$	12.409			-47.1	%
Institutional Equity - Balance at Beginning-of-Period	$	23.845		$	22.782		$	23.271		$	23.699		$	22.898			-4.0	%
Inflows (1)		0.870			1.363			0.701			1.653			0.986			13.3	%
Withdrawals/terminations		(2.273	)		(1.753	)		(1.202	)		(1.996	)		(1.100	)		51.6	%
Transfers		0.000			(0.000	)		(0.001	)		(0.001	)		(0.002	)	NM
Net flows		(1.402	)		(0.390	)		(0.501	)		(0.343	)		(0.117	)		91.7	%
Net investment gains and change in market value		0.339			1.242			0.929			(0.457	)		(2.284	)	NM
Transfer of assets to an intercompany manager (3)		-			(0.363	)		-			-			-		NM
Institutional Equity - Balance at End-of-Period (4)	$	22.782		$	23.271		$	23.699		$	22.898		$	20.498			-10.0	%
Total Institutional - Balance at Beginning-of-Period	$	46.686		$	46.251		$	46.836		$	48.536		$	35.644			-23.7	%
Inflows (1)		2.431			2.877			2.934			2.230			1.229			-49.4	%
Withdrawals/terminations		(2.753	)		(3.025	)		(2.508	)		(2.669	)		(1.739	)		36.8	%
Transfers		0.001			(0.001	)		(0.001	)		0.137			(0.000	)	NM
Net flows		(0.321	)		(0.148	)		0.425			(0.302	)		(0.510	)		-58.9	%
Net investment gains and change in market value		0.667			1.096			1.274			(0.277	)		(2.227	)	NM
Transfer of assets to third-party (5)		-			-			-			(12.313	)		-		NM
Transfer of assets to an intercompany manager (3)		(0.780	)		(0.363	)		-			-			-			100.0	%
Total Institutional - Balance at End-of-Period (4)	$	46.251		$	46.836		$	48.536		$	35.644		$	32.907			-28.9	%
Total Retail and Institutional - At End-of-Period (4)	$	98.146		$	97.725		$	99.716		$	85.357		$	78.537			-20.0	%
General Account Assets - At End-of-Period (6)	$	67.658		$	66.423		$	67.324		$	67.416		$	67.340			-0.5	%
Total Assets Under Management
At End-of-Period	$	165.804		$	164.148		$	167.040		$	152.774		$	145.877			-12.0	%
Total Retail and Institutional - Net Flows (2)	$	(0.088	)	$	(0.425	)	$	0.091		$	(0.950	)	$	(1.166	)	NM
Sub-Advised Assets, Included in Assets
Under Management Above
Retail	$	18.466		$	16.329		$	16.380		$	16.219		$	14.212			-23.0	%
Institutional		4.645			4.594			4.734			4.570			4.071			-12.4	%
Total Sub-Advised Assets	$	23.111		$	20.922		$	21.114		$	20.789		$	18.283			-20.9	%

(1)  Sales and in-flows include dividend reinvestments.

(2)   Reflects assets transferred to a third-party manager (Upromise) as a result of Delaware's decision to exit the 529 Plan business.  529 Plan assets

     which transferred in 2Q07 and 4Q07 are reflected in Transfer of assets to third-party.

(3)  Reflects assets that were transferred to an intercompany manager which did not impact Lincoln's consolidated assets under management.

(4)   Includes inter-segment and external assets under management.

(5)  Reflects the sale of a portion of our institutional fixed-income business to an unaffiliated investment management company in 4Q07.

(6)  The 1Q07 balance has been restated to reflect adjustments made to Jefferson Pilot separate accounts.  The impact of this change was $366 million.

3/31/2008 PAGE 29(B)

Investment Management
Assets Under Management Roll Forward (Continued) (1)
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Total Separate Account Assets -
Balance at Beginning-of-Period	$	13.729		$	12.982		$	10.226		$	10.175		$	9.672			-29.6	%
Sales/inflows		0.501			0.707			0.545			0.742			0.719			43.5	%
Redemptions/withdrawals/terminations		(0.735	)		(0.766	)		(0.754	)		(1.148	)		(0.679	)		7.6	%
Transfers		-			0.000			(0.000	)		0.133			-		NM
Net flows		(0.233	)		(0.059	)		(0.209	)		(0.273	)		0.040			117.2	%
Net investment gains and change in market value		0.266			0.550			0.159			(0.231	)		(0.520	)	NM
Transfer of assets to an intercompany manager		(0.780	)		(3.248	)		-			-			-			100.0	%
Total Separate Account Assets -
Balance at End-of-Period	$	12.982		$	10.226		$	10.175		$	9.672		$	9.191			-29.2	%
														-
General Account Assets At End-of-Period	$	67.658		$	66.423		$	67.324		$	67.416		$	67.340			-0.5	%
Total Inter-Segment Assets At End-of-Period	$	80.640		$	76.648		$	77.499		$	77.088		$	76.531			-5.1	%
Total External - Balance at Beginning-of-Period (2)	$	83.577		$	85.164		$	87.499		$	89.541		$	75.686			-9.4	%
Sales/inflows		5.533			5.443			5.201			5.080			4.005			-27.6	%
Redemptions/withdrawals/terminations		(5.384	)		(5.807	)		(4.898	)		(5.754	)		(5.207	)		3.3	%
Transfers		(0.005	)		(0.001	)		(0.003	)		(0.004	)		(0.003	)		40.0	%
Net flows		0.145			(0.366	)		0.300			(0.677	)		(1.205	)	NM
Net investment gains and change in market value		1.442			2.854			1.741			(0.817	)		(5.134	)	NM
Transfer of assets to third-party		-			(0.153	)		-			(12.361	)		-		NM
Total External - Balance at End-of-Period	$	85.164		$	87.499		$	89.541		$	75.686		$	69.346			-18.6	%

(1)  This roll forward breaks out total assets under management by inter-segment and external balances which include both retail and institutional assets under

      management.

(2)  Includes Delaware's VIP funds.  Lincoln Financial insurance subsidiaries as well as unaffiliated insurers participate in these funds.

3/31/2008 PAGE 30

Lincoln UK
Income Statements
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	24.2		$	24.3		$	25.6		$	21.2		$	19.1			-21.3	%
Mortality assessments		10.0			8.9			9.2			9.1			9.1			-9.1	%
Expense assessments		37.1			39.9			33.0			46.6			37.1			-0.1	%
Net investment income		19.3			19.4			20.9			21.5			20.3			5.3	%
Other revenues and fees		0.1			-			-			-			0.1			-
Total Operating Revenues		90.7			92.5			88.7			98.3			85.6			-5.6	%
Operating Expenses
Insurance benefits		36.0			34.4			30.2			36.9			30.7			-14.8	%
Operating and acquisition expenses		38.0			40.2			42.5			41.9			38.5			1.4	%
Total Operating Expenses		74.0			74.6			72.7			78.8			69.2			-6.5	%
Income from operations before federal income taxes		16.7			18.0			15.9			19.5			16.4			-1.9	%
Federal income taxes		5.9			6.3			5.6			6.8			5.7			-1.9	%
Income from Operations	$	10.9		$	11.7		$	10.3		$	12.7		$	10.7			-1.9	%
Effective tax rate		35.3	%		35.0	%		35.2	%		34.9	%		34.8	%
Average equity	$	387.6		$	384.9		$	379.1		$	368.5		$	375.7
Return on average equity		11.2	%		12.1	%		10.9	%		13.8	%		11.4	%
Operating and Acquisition Expenses
Commissions	$	1.0		$	1.0		$	1.3		$	1.5		$	1.0			1.0	%
General and administrative expenses		26.5			26.7			26.9			28.1			26.6			0.3	%
Total commissions and expenses incurred		27.6			27.8			28.2			29.6			27.7			0.4	%
Less: commissions and expenses capitalized		(0.6	)		(0.6	)		(1.5	)		(1.4	)		(0.6	)		-9.6	%
Amortization of DAC and VOBA, net of interest		11.0			13.0			15.8			13.7			11.5			4.6	%
Net Operating and Acquisition Expenses	$	38.0		$	40.2		$	42.5		$	41.9		$	38.5			1.4	%
Roll Forward of DAC & VOBA
Balance at beginning-of-period	$	809.0		$	802.6		$	806.5		$	807.3		$	772.1
Deferrals		0.6			0.6			1.5			1.4			0.6
Amortization, net of interest:
Unlocking		0.7			(0.1	)		(0.9	)		(0.9	)		1.3
Other amortization		(11.7	)		(12.9	)		(14.9	)		(12.8	)		(12.8	)
Deferrals, net of amortization included in
operating and acquisition expenses		(10.4	)		(12.4	)		(14.3	)		(12.3	)		(10.8	)
Foreign currency translation adjustment		4.1			16.3			15.1			(22.9	)		(0.9	)
Balance at end-of-period	$	802.6		$	806.5		$	807.3		$	772.1		$	760.4
Roll Forward of DFEL
Balance at beginning-of-period	$	404.5		$	400.4		$	402.6		$	398.2		$	379.3
Deferrals		0.9			0.7			0.8			0.9			0.9
Amortization, net of interest:
Unlocking		(1.0	)		0.1			(5.3	)		(1.0	)		(0.5	)
Other amortization		(6.0	)		(6.7	)		(7.4	)		(7.5	)		(7.7	)
Deferrals, net of amortization included in
expense assessments		(6.1	)		(5.9	)		(11.9	)		(7.7	)		(7.3	)
Foreign currency translation adjustment		2.0			8.1			7.5			(11.2	)		(0.4	)
Balance at end-of-period	$	400.4		$	402.6		$	398.2		$	379.3		$	371.5

3/31/2008 PAGE 31

Lincoln UK
Operational Data
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Unit Linked Assets
Balance at Beginning-of-Period	$	8.757		$	8.906		$	9.168		$	9.192		$	8.850			1.1	%
Deposits		0.068			0.100			0.079			0.075			0.060			-11.8	%
Withdrawals (including charges) and deaths		(0.240	)		(0.251	)		(0.251	)		(0.227	)		(0.213	)		11.3	%
Net flows		(0.172	)		(0.151	)		(0.172	)		(0.152	)		(0.153	)		11.0	%
Investment income and change in market value		0.277			0.229			0.025			0.070			(0.608	)	NM
Foreign currency adjustment		0.045			0.183			0.171			(0.259	)		(0.010	)	NM
Unit Linked Assets - Balance at End-of-Period	$	8.906		$	9.168		$	9.192		$	8.850		$	8.079			-9.3	%
Individual Life In Force	$	19.307		$	19.605		$	19.757		$	19.022		$	18.283			-5.3	%
Exchange Rate - Dollars to Pounds
For-the-Period		1.964			1.989			2.025			2.051			1.987			1.2	%
End-of-Period		1.968			2.008			2.046			1.987			1.985			0.9	%

3/31/2008 PAGE 32

Other Operations (1)
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Operating Revenues
Insurance premiums	$	2.7		$	(1.2	)	$	1.3		$	0.7		$	1.4			-48.8	%
Net investment income		87.2			91.4			92.6			101.3			98.6			13.2	%
Amortization of deferred gain on business sold through
reinsurance (2)		18.6			18.6			18.6			18.6			18.5			-0.7	%
Other revenues and fees		0.0			5.6			(3.7	)		1.2			(2.2	)	NM
Communications revenues		24.8			28.8			26.6			26.5			21.7			-12.6	%
Inter-segment elimination of investment advisory fees		(24.5	)		(19.6	)		(22.6	)		(20.3	)		(20.0	)		18.5	%
Total Operating Revenues		108.8			123.6			112.9			127.9			118.0			8.4	%
Operating Expenses
Insurance benefits		36.0			38.3			35.7			36.4			27.8			-23.0	%
Interest credited to contract holder funds		43.8			44.4			48.4			47.8			45.8			4.6	%
Operating and acquisition expenses		21.5			38.5			48.2			55.2			34.9			62.3	%
Taxes, licenses and fees		3.4			0.5			3.9			5.1			2.1			-37.4	%
Interest and debt expenses		62.4			73.1			68.2			80.3			75.4			21.0	%
Communications expenses		14.7			15.2			13.2			13.5			15.5			5.9	%
Inter-segment elimination of investment advisory fees		(24.5	)		(19.6	)		(22.6	)		(20.3	)		(20.0	)		18.5	%
Total Operating Expenses		157.2			190.3			195.1			218.0			181.6			15.5	%
Loss from operations before federal income taxes		(48.3	)		(66.7	)		(82.2	)		(90.1	)		(63.6	)		-31.5	%
Federal income taxes		(20.3	)		(30.6	)		(32.4	)		(30.8	)		(21.2	)		-4.7	%
Loss from Operations	$	(28.0	)	$	(36.2	)	$	(49.8	)	$	(59.2	)	$	(42.3	)		-50.9	%
Run Off Institutional Pensions Account Values -
Balance at End-of-Period	$	2.734		$	2.729		$	2.720		$	2.094		$	2.074			-24.1	%
Discontinued Operations
Unaudited (in millions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Discontinued Operations Before Disposal
Income from discontinued operations before federal income taxes	$	11.9		$	9.6		$	10.2		$	13.9		$	7.4			-37.8	%
Federal income taxes		4.2			3.4			3.6			4.8			2.6			-38.0	%
Income From Discontinued Operations Before Disposal		7.7			6.3			6.6			9.1			4.8			-37.6	%
Disposal
Gain (loss) on disposal before federal income taxes		-			-			-			57.1			(12.3	)	NM
Federal income taxes		-			-			-			193.0			(3.3	)	NM
Loss on Disposal		-			-			-			(135.9	)		(9.0	)	NM
Income (Loss) From Discontinued Operations	$	7.7		$	6.3		$	6.6		$	(126.8	)	$	(4.2	)	NM

(1)   Includes inter-segment eliminations of transactions.

(2)   Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

3/31/2008 PAGE 33

Consolidated Domestic Deposits/Account Balances
Unaudited (billions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Deposits -  For the Period
Individual Markets - fixed annuities (1)	$	0.821		$	0.982		$	1.231		$	1.288		$	1.160			41.3	%
Individual Markets - variable annuities		2.000			2.295			2.247			2.593			1.865			-6.8	%
Individual Markets - Life Insurance		1.039			1.005			0.980			1.086			0.967			-6.9	%
Employer Markets - fixed annuities		0.299			0.233			0.305			0.268			0.332			11.0	%
Employer Markets - variable products (2)		1.188			1.041			1.219			0.997			1.220			2.7	%
Employer Markets - Executive Benefits		0.065			0.079			0.052			0.107			0.165			153.8	%
Investment Management - annuities		1.300			0.902			0.891			0.954			1.562			20.2	%
Investment Management - mutual funds		1.753			1.896			1.543			2.241			1.592			-9.2	%
Investment Management - managed account and other		0.550			0.474			0.377			0.398			0.341			-38.0	%
Consolidating adjustments		(0.799	)		(0.890	)		(0.878	)		(0.926	)		(1.494	)		-87.0	%
Total Gross Retail Deposits		8.217			8.016			7.968			9.005			7.710			-6.2	%
Investment Management - institutional		2.431			2.877			2.934			2.230			1.229			-49.4	%
Consolidating adjustments		(0.112	)		(0.188	)		(0.030	)		(0.192	)		(0.092	)		17.9	%
Total Gross Deposits	$	10.536		$	10.706		$	10.873		$	11.043		$	8.846			-16.0	%
Account Balances - End of Period
Individual Markets - fixed annuities (1)	$	16.449		$	16.270		$	16.383		$	16.470		$	16.395			-0.3	%
Individual Markets - variable annuities		50.300			55.171			58.293			58.643			54.966			9.3	%
Individual Markets - Life Insurance		26.924			27.465			27.875			28.122			27.881			3.6	%
Employer Markets - fixed annuities		10.993			10.940			10.891			10.889			11.217			2.0	%
Employer Markets - variable products (2)		23.482			25.024			25.745			25.168			23.546			0.3	%
Employer Markets - Executive Benefits		4.264			4.353			4.391			4.436			4.460			4.6	%
Investment Management - annuities		15.467			12.780			12.814			12.282			11.697			-24.4	%
Investment Management - mutual funds		18.747			19.894			20.274			19.793			18.690			-0.3	%
Investment Management - managed account and other		17.681			18.215			18.092			17.638			15.244			-13.8	%
Consolidating adjustments		(15.025	)		(12.240	)		(12.300	)		(11.798	)		(11.264	)		25.0	%
Total Retail Account Balances		169.282			177.871			182.458			181.644			172.831			2.1	%
Investment Management - institutional		46.251			46.836			48.536			35.644			32.907			-28.9	%
Consolidating adjustments		(2.829	)		(2.604	)		(2.529	)		(2.357	)		(2.208	)		22.0	%
Total Account Balances	$	212.704		$	222.103		$	228.465		$	214.931		$	203.529			-4.3	%
Total Domestic Net Flows
Unaudited (in billions)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Retail Net Flows
Individual Markets - Life Insurance	$	0.698		$	0.586		$	0.635		$	0.745		$	0.579			-17.0	%
Individual Markets - Annuities		0.754			1.138			1.291			1.808			1.181			56.6	%
Employer Markets - Defined Contribution		0.221			0.074			0.133			(0.091	)		0.281			27.1	%
Employer Markets - Executive Benefits		(0.075	)		0.026			(0.005	)		0.037			0.071			194.7	%
Investment Management - retail		0.233			(0.277	)		(0.334	)		(0.649	)		(0.655	)	NM
Consolidating adjustments		(0.004	)		0.330			0.071			0.140			(0.098	)	NM
Total Retail Net Flows		1.827			1.876			1.790			1.991			1.359			-25.6	%
Investment Management - institutional		(0.321	)		(0.148	)		0.425			(0.302	)		(0.510	)		-58.9	%
Consolidating adjustments		0.048			(0.026	)		0.128			0.132			0.030			-37.5	%
Total Net Flows	$	1.554		$	1.702		$	2.343		$	1.821		$	0.878			-43.5	%

(1)  Includes fixed portion of variable annuities.

(2)  Includes amounts attributable to Alliance and Smart Future mutual fund net flows.  Alliance and Smart Future mutual fund account values are not

     included in the separate accounts reported on our Consolidated Balance Sheets.

3/31/2008 PAGE 34

Consolidated Investment Data - Assets Managed
Unaudited (billions of dollars)
	As of
	March		June		Sept.		Dec.		March		%
	2007		2007		2007		2007		2008		Change
Assets Managed by Source
LNC's investments and cash:
Fixed maturity securities - available for sale	$	56.256	$	55.447	$	56.086	$	56.276	$	55.624		-1.1	%
Equity securities - available for sale		0.714		0.687		0.670		0.518		0.474		-33.6	%
Trading securities		2.910		2.818		2.717		2.730		2.714		-6.7	%
Other investments		11.934		11.880		12.040		12.398		12.743		6.8	%
Total LNC investments		71.814		70.832		71.513		71.922		71.555		-0.4	%
Separate accounts		83.147		89.497		92.903		91.113		84.703		1.9	%
Cash and invested cash		0.905		0.989		1.328		1.665		2.447		170.4	%
Total LNC		155.866		161.319		165.744		164.700		158.705		1.8	%
Non-affiliate assets managed		81.134		83.709		85.684		71.975		66.020		-18.6	%
Total Assets Managed	$	237.000	$	245.028	$	251.427	$	236.675	$	224.725		-5.2	%
Assets Managed by Advisor
Investment Management segment
(See page 24 for additional detail)	$	98.146	$	97.725	$	99.716	$	85.357	$	78.537		-20.0	%
DLIA-Corp (Assets managed internally-see page 24)		67.658		66.423		67.324		67.416		67.340		-0.5	%
Lincoln UK		10.255		10.536		10.589		10.247		9.445		-7.9	%
Domestic policy loans (excluding Lincoln UK)		2.763		2.783		2.786		2.831		2.801		1.4	%
Non-LNC affiliates		58.178		67.562		71.012		70.824		66.602		14.5	%
Total Assets Managed	$	237.000	$	245.028	$	251.427	$	236.675	$	224.725		-5.2	%

3/31/2008																PAGE 35
Consolidated Investment Data - Other Investment Data
Unaudited (millions of dollars)
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Net Investment Income
Available-for-sale fixed maturity securities	$	844.0		$	845.4		$	854.0		$	868.0		$	858.2			1.7	%
Available-for-sale equity securities		8.6			11.8			10.4			10.4			9.1			5.7	%
Trading securities		45.4			44.4			44.0			42.4			42.5			-6.4	%
Mortgage loans on real estate		130.6			131.8			123.0			122.0			121.6			-6.9	%
Real estate		15.2			12.5			15.5			13.3			8.0			-47.4	%
Policy loans		42.6			44.3			43.0			44.6			44.6			4.6	%
Invested cash		18.9			16.7			16.2			20.9			18.8			-0.6	%
Other investments		29.2			73.0			4.3			17.4			(2.9	)	NM
Investment income		1,134.6			1,179.7			1,110.4			1,138.9			1,099.8			-3.1	%
Investment expense		(44.8	)		(46.5	)		(48.8	)		(45.2	)		(34.4	)		23.2	%
Net Investment Income	$	1,089.7		$	1,133.2		$	1,061.6		$	1,093.7		$	1,065.4			-2.2	%
Mean Invested Assets (Amortized Cost)	$	69,905.7		$	70,062.2		$	70,535.5		$	70,718.2		$	70,941.2
Ratio of Net Investment Income Over Mean Invested Assets		6.24	%		6.47	%		6.02	%		6.19	%		6.01	%
	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Realized Gain (Loss) Related to Investments
Fixed maturity securities available-for-sale
Gross gains	$	54.9		$	26.6		$	26.4		$	16.7		$	9.1			-83.3	%
Gross losses		(6.8	)		(46.3	)		(44.2	)		(87.7	)		(100.0	)	NM
Equity securities
Gross gains		2.3			4.0			1.2			0.3			2.8			23.5	%
Gross losses		(0.0	)		(0.4	)		(0.0	)		(110.9	)		-			100.0	%
Gain (loss) on other investments		(4.2	)		5.3			5.9			11.5			25.1		NM
Associated amortization of DAC, VOBA, DSI, DFEL and changes in other contract holder funds		(19.9	)		(1.7	)		(14.3	)		65.2			25.1			226.2	%
Total realized gain (loss) on investments, excluding trading securities		26.3			(12.6	)		(25.0	)		(104.9	)		(37.9	)	NM
Loss on certain derivative instruments		0.2			4.0			(10.9	)		(4.1	)		(3.1	)	NM
Associated amortization of DAC, VOBA, DSI, DFEL and changes in other contract holder funds		(0.0	)		(0.0	)		0.5			0.2			(0.0	)	NM
Total, pre-tax		26.4			(8.6	)		(35.4	)		(108.9	)		(41.0	)	NM
Income taxes		9.3			(3.8	)		(12.2	)		(37.4	)		(14.0	)	NM
Total, After-Tax	$	17.1		$	(4.9	)	$	(23.2	)	$	(71.4	)	$	(27.1	)	NM
				As of March 31, 2008									As of December 31, 2007
				Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)				$	58,335.5			99.2	%				$	59,003.8			99.1	%
Fixed maturity security (amortized cost)					58,952.5			99.1	%					58,578.9			99.1	%
Equity securities (fair value)					476.5			0.8	%					520.0			0.9	%
Equity securities (amortized cost)					558.3			0.9	%					549.9			0.9	%
% of Available-for-Sale Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA								23.4	%								23.1	%
AA or better								32.3	%								32.9	%
BB or less								5.2	%								5.1	%
General Account Investments				As of March 31, 2008									As of December 31, 2007
				Amount			% of Total						Amount			% of Total
Fixed Maturities - Security Sector:
Corporate bonds				$	43,535.4			78.2	%				$	44,147.9			78.5	%
U.S. Government bonds					231.9			0.4	%					222.0			0.4	%
Foreign government bonds					1,037.4			1.9	%					1,037.5			1.8	%
Mortgage-backed securities					10,568.8			19.0	%					10,604.6			18.8	%
State and municipal bonds					153.0			0.3	%					153.1			0.3	%
Preferred stocks - redeemable					97.5			0.2	%					110.7			0.2	%
Total				$	55,624.0			100.0	%				$	56,275.7			100.0	%
	As of
	March			June			Sept.			Dec.			March			%
	2007			2007			2007			2007			2008			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed maturity	$	56,255.6		$	55,447.0		$	56,086.1		$	56,275.7		$	55,624.0			-1.1	%
Equity		713.9			686.8			670.3			518.0			474.4			-33.5	%
Trading securities		2,909.7			2,818.3			2,716.6			2,730.2			2,713.6			-6.7	%
Mortgage loans on real estate and real estate		7,822.2			7,698.4			7,665.7			7,681.0			7,707.2			-1.5	%
Policy loans		2,766.8			2,787.0			2,790.2			2,834.7			2,804.0			1.3	%
Derivative investments		412.6			375.9			554.1			807.1			1,091.1			164.5	%
Other investments		932.9			1,019.1			1,030.0			1,075.0			1,140.9			22.3	%
Total	$	71,813.6		$	70,832.5		$	71,512.9		$	71,921.6		$	71,555.3			-0.4	%

EX-99.2

1

We are currently in our “quiet period” regarding second quarter results, which means that we are currently
analyzing our results for the second quarter 2008.Therefore, we will not be discussing our second
quarter results, which we will release on July 29, 2008.You should not rely on the information in this
presentation as being indicative of actual second quarter results, and we do not hereby undertake any
obligation to provide such information during this presentation or to update such information except
through our public earnings release.

Important Note

2

This presentation and certain oral statements made on LNC’s behalf may contain information that
includes or is a “forward-looking statement” within the meaning of the Private Securities Litigation Reform
Act of 1995 (“PSLRA”). A forward-looking statement is a statement that does not strictly relate to a
historical fact.A forward look statement includes any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain words like: “believe”, “anticipate”,
“expect”, “estimate”, “project”, “will”, “shall” and other words or phrases with similar meaning. LNC claims
the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ
materially from the results contained in the forward-looking statements, and include but are not limited to,
legislative and regulatory changes and proceedings, changes in interest rates, sudden or prolonged
declines in the equity markets, deviation in actual experience regarding future persistency, mortality,
morbidity, interest rates or equity market returns from Lincoln’s assumptions used in pricing its products,
in establishing related insurance reserves, and in the amortization of intangibles that may result in an
increase in reserves and a decrease in net income; and changes in general economic or business
conditions. These risks and uncertainties, as well others, are described in LNC’s recent Forms 10-K, 10-
Q, 8-K, and other documents filed with the Securities and Exchange Commission. Moreover, LNC
operates in a rapidly changing and competitive environment. New risk factors emerge from time to time
and it is not possible for management to predict all such risk factors.

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

Safe Harbor

* Represents account values of riders on individual annuities as of March 31, 2008

3

Rider	Positioning	Rider Fee	Restrictions	Account Value*
Guaranteed Withdrawal Benefits
SmartSecurity 5 year SmartSecurity 1 year (Lifetime feature)	Protection feature with upside opportunity from market performance. Protection feature with upside opportunity from market performance.	45 bps (max 95 bps, change possible on reset after year 5) 65 bps (max 150 bps, change possible on reset after year 10)	Withdrawal rate limitedto 7%. Withdrawal rate limited to 5%.	$18.1 billion
Lifetime Income Advantage Plus option	Protection feature with upside from market performance and a guaranteed enhancement (5%) when withdrawals are delayed. 7-year money back option with Plus.	75 bps (max 150 bps, change possible on reset) 90 bps for Plus option (max 150bp, possible on reset)	Withdrawal rate limited to 5%; “nursing home” provision can double withdrawal. Has investment restrictions. Enhancement encourages delay in withdrawals.	$155 million
Guaranteed Income Benefits
i4LIFE Advantage with Guaranteed Income Benefit	Immediate income solution with downside protection.	40 bps (for i4LIFE) 50 bps (max 150 bps for Guaranteed Income Benefit)	Less behavior risk versus a withdrawal benefit - know when and how much income will come out.	$5.6billion
4Later	Protection feature with upside from market performance and a guaranteed enhancement (every 3 years, 15%) when income is delayed.	50 bps (max 150 bps, change possible on reset after year 3)	i4LIFE is the income solution. Qualifying for the roll-up feature requires policyholder to delay income.	$3.0billion

Current VA Living Benefit Rider Designs

55%

14%

31%

VA Account Value

VA Deposits

$2.5

$2.7

24%

43%

33%

31%

44%

25%

Account Value = $58 billion*

($ billions)

* As of March 31, 2008

No Living Benefit

Guaranteed Withdrawal Benefits

Guaranteed Income Benefits

4

Individual Variable Annuity
Living Benefits Profile

Years

5

VA Living Benefit Pricing

Variables driving potential living benefit claims:

Product features - benefits, restrictions, etc.

Policyholder behavior - withdrawal rates, resets, lapses, mortality, etc.

Capital markets - interest rates, equity volatility and correlations

The same considerations used to calculate Net Valuation Premium

* Expected Run Rate = ongoing cost of the hedge program representing option premium amortization and implied borrowing costs on hedge instruments.

Increase in Living Benefit Reserve

Net Income Impact Above/Below Expected Run Rate*

($ millions)

1Q
2005

1Q
2006

1Q
2007

1Q
2008

-$100

$0

$100

$200

$300

6

VA Living Benefit Hedging

Historically focused on protecting against GAAP income movements

SFAS 157 created disconnect between GAAP and economics

Greater focus on hedging economics going forward

7

VALB Rider Fees

- Net Valuation Premiums

Income from Operations

Revised VA Living Benefit Income from
Operations

8

	Financial Statement Line Items	Current Financial Reporting	Revised Financial Reporting
Income from Operations	Expense assessments	Rider fees	Rider fees-Attributed fees
	Operating realized gains (losses)	N/A	Attributed fees-NVP
	Benefits	“Hedge performance”	N/A
	VALB operating margin	Rider fees +/- “Hedge performance”	Rider fees - NVP
Net Income	Realized gains (losses)	N/A	NVP +/- “Hedge performance”

SFAS 157 Attributed Fee Definition:The Net Valuation Premiums (NVP) plus a
margin for risk/profit, including a non-performance risk factor related to the credit quality
of the “selling” company, that a “willing buyer” would apply to assume the risk for the
current period issues

VALB Financial Statement Presentation
SFAS 157

Mechanics - - Current to Revised:

Attributed fee calculated under SFAS 157 and recorded in realized gains (losses)

The difference between NVP and attributed fee pulled back into income from
operations and recorded in “operating realized gains and losses”

“Hedge performance” moved from income from operations to realized gains (losses)

9

($ millions)

1Q07

$ 121

5

0

(1)

4

$ 117

2Q07

$ 130

4

0

3

7

$ 123

3Q07

$ 107

(15)

0

(4)

(19)

$ 126

4Q07

$ 90

(24)

0

(5)

(29)

$ 119

1Q08

$ 129

18

(3)

(3)

12

$ 117

Reported Income from Operations:

Changes in Definition:

VALB

GMDB

Indexed Annuities

Revised Income From Operations:

Individual Annuities Segment Reporting

Change In Income From Operations:

VALB - hedge performance moved to realized gains (losses): Rider fees less
net valuation premium = VALB operating margin.

Guaranteed Minimum Death Benefits (GMDB) - hedge performance moved
to realized gains/losses: Rider fees less benefits and hedge costs = GMDB
operating margin.

Indexed Annuities (IA) - forward starting option valuation moved to realized
gains/losses: Spreads and net option values = IA operating margin.

10

Disclosures

Expanded disclosure on realized gains/losses:

VALB and GMDB hedge performance

Indexed Annuity Forward starting option impact.

Expanded disclosure on components of attributed fee

Expanded disclosure on types of guarantees sold and
account value by VALB type.