Exhibit 99.1

Lincoln Statistical Report

Fourth Quarter

2003

Lincoln Financial Group

This document is dated February 9, 2004. It may not be accurate after such date and LNC

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

Lincoln Financial Group

Statistical Report

Fourth Quarter

2003

Table of Contents

LFG Analyst Coverage
Notes
Financial Highlights	1 - 4
Eleven-Year Summary	5
Quarterly Summary	6
Reconciliation of Business Segments to Consolidated Income Statement	7 - 8
Statement of Consolidated Income	9 - 10
Reconciliation of Business Segments to Consolidated Balance Sheets	11 - 12
Five-Year Comparative Balance Sheet	13
Quarterly Balance Sheet	14
Lincoln Retirement
Income Statement & Operational Data	15 - 16
Account Value Roll Forward	17 - 18
Life Insurance
Income Statement	19 - 20
Operational Data	21
Account Value Roll Forward	22 - 23
Investment Management
Income Statement	24 - 25
Assets Under Management Roll Forward	26 - 27
Lincoln UK
Income Statement	28 - 29
Operational Data	30
Other Operations	31
Consolidated
Domestic Retail Deposits / Account Balances	32
Total Domestic Net Flows	32
Assets Managed	33
Investment Data	34
Common Stock / Debt Information	35

NOTES

Definitions and Presentation

• Income from Operations represents net income excluding the after-tax effects of the items below, as applicable. Income from Operations is an internal measure used by LNC in the management of its operations. Management believes that this performance measure explains the results of operations of the LNC’s ongoing operations in a manner

that allows for a better understanding of the underlying trends in LNC’s current business.

• Realized gains or losses on investments and derivatives,

• Restructuring charges,

• Gains (losses) related to reinsurance embedded derivatives/trading account assets

• The cumulative effect of accounting changes,

• Reserve changes on business sold through reinsurance net of related deferred gain amortization,

• Gains (losses) on the sale of subsidiaries

• Certain other items

• Operating revenue represents revenue excluding the following, as applicable:

• Realized gains or losses on investments and derivatives,

• Gains (losses) related to reinsurance embedded derivatives/trading account assets

• Gains (losses) on the sale of subsidiaries

• Deferred gain amortization related to reserve changes on business sold through reinsurance

• Certain other items

• Return on capital measures the effectiveness of LNC’s use of its total capital, which is made up of equity, debt and junior subordinated debentures issued to affiliated trusts. Return on capital is calculated by dividing income from operations (after adding back interest expense) by average capital. The difference between return on capital and return on shareholders’ equity represents the affect of leveraging on LNC’s consolidated results.

• Accumulated other comprehensive income (“AOCI”) represents unrealized gains (losses) on investments, net gain on derivative instruments, cumulative translation adjustments and minimum pension liability adjustments, net of tax.

• Certain operating and statistical measures are included in this report to provide supplemental data that indicate trends in LNC’s current business. These measures include deposits, net flows, first year premium, inforce and assets under management.

• Certain reclassifications have been made to the prior periods to conform to the December 31, 2003 presentation.

Accounting Changes

• During the fourth quarter of 2003, LNC implemented the FASB’s Derivative Implementation Group Statement 133 Implementation Issue No. B36 (“DIG B36”). DIG B36 provides that the embedded derivatives included within modified coinsurance agreements (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance agreements must be accounted for separately from the underlying reinsurance agreements. Upon adoption, LNC recorded a $255.2 million after-tax charge to net income as a cumulative effect of a change in accounting, representing the fair value of the embedded derivatives included in various Modco and CFW reinsurance agreements. Concurrent with the initial recording of the embedded derivative associated with these reinsurance arrangements, LNC reclassified related available-for-sale securities to trading account classification and recorded an after-tax gain of $241.5 million.

• Effective January 1, 2003, LNC adopted the fair value recognition method of accounting for it stock option incentive plans under Statement of Financial Accounting Standards (“FAS”) No. 123, “Accounting for Stock-based Compensation” (“FAS 123”). LNC adopted the retroactive restatement method under FAS No. 148, “Accounting for Stock-based Compensation - Transition and Disclosure”. As a result, LNC has chosen to restate 2000, 2001, and 2002 to reflect stock-based compensation cost under the fair value method in FAS 123 for all employee awards granted, modified or settled in fiscal years beginning after December 31, 1994.

ii

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended December 31											For the Year Ended December 31
	2003 Amount			2002 Amount			Change			% Change		2003 Amount			2002 Amount			Change			% Change
Net Income		194.3			51.0			143.3		280.8	%		511.9			48.8			463.1		948.8	%
Less:
Realized gains (losses) on investments		42.0			(33.3	)		75.3					(11.0	)		(177.2	)		166.2
Gains (losses) on derivatives		(5.7	)		0.2			(5.9	)				(1.6	)		0.8			(2.4	)
Net gain (loss) on reinsurance derivative/trading account securities		2.7			—			2.7					2.7			—			2.7
Reserve development/ amortization of related deferred gain		0.2			(8.2	)		8.4					(18.5	)		(199.1	)		180.5
Restructuring charges		(9.8	)		1.7			(11.5	)				(35.0	)		2.0			(37.1	)
Loss on early retirement of subordinated debt		—			—								(3.7	)		—			(3.7	)
Gain on sale of subsidiaries		—			(9.4	)		9.4					—			(9.4	)		9.4
Mark-to-market adjustment on reclassification from AFS to trading account securities		241.5			—			241.5					241.5			—			241.5
Cumulative effect - reinsurance embedded derivative acctg.		(255.2	)		—			(255.2	)				(255.2	)		—			(255.2	)
Income from Operations		178.7			100.0			78.7		78.7	%		592.8			431.6			161.2		37.3	%
Net Income - By Segment
Lincoln Retirement		109.9			5.0			104.9		2,089.8	%		300.5			53.7			246.8		459.3	%
Life Insurance		82.2			59.5			22.6		38.0	%		252.1			206.1			46.0		22.3	%
Investment Management		18.2			1.1			17.1		1,520.3	%		30.2			(1.4	)		31.6
Lincoln UK		12.2			17.9			(5.8	)	(32.4	)%		42.9			37.7			5.2		13.8	%
Corporate & Other		(28.1	)		(32.6	)		4.5					(113.7	)		(247.3	)		133.6
Total		194.3			51.0			143.3		280.8	%		511.9			48.8			463.1		948.8	%
Income from Operations - By Segment
Lincoln Retirement		94.1			35.4			58.6		165.4	%		331.9			183.4			148.6		81.0	%
Life Insurance		73.4			63.1			10.3		16.3	%		264.5			269.0			(4.4	)	(1.6	)%
Investment Management		19.0			2.1			16.9		815.4	%		34.5			1.8			32.7		1,769.7	%
Lincoln UK		13.0			15.3			(2.3	)	(15.0	)%		43.6			34.6			9.0		26.0	%
Corporate & Other		(20.8	)		(15.9	)		(4.9	)				(81.8	)		(57.2	)		(24.6	)
Total		178.7			100.0			78.7		78.7	%		592.8			431.6			161.2		37.3	%
Earnings per share (diluted)
Net Income	$	1.08		$	0.29		$	0.79		276.1	%	$	2.85		$	0.26		$	2.59		979.5	%
Less:
Realized gains (losses) on investments	$	0.23		$	(0.18	)	$	0.41				$	(0.06	)	$	(0.95	)	$	0.89
Gains (losses) on derivatives	$	(0.03	)				$	(0.03	)			$	(0.01	)				$	(0.01	)
Net Gain (loss) on reinsurance derivative/trading account securities	$	0.01					$	0.01				$	0.01					$	0.01
Reserve development/ amortization of related deferred gain				$	(0.05	)	$	0.05				$	(0.10	)	$	(1.08	)	$	0.98
Restructuring charges	$	(0.05	)	$	0.01		$	(0.06	)			$	(0.20	)	$	0.01		$	(0.21	)
Loss on early retirement of subordinated debt												$	(0.02	)				$	(0.02	)
Gain on Sale of Subsidiaries				$	(0.05	)	$	0.05							$	(0.05	)	$	0.05
Mark-to-market adjustment on reclassification from AFS to trading account securities	$	1.34					$	1.34				$	1.35					$	1.35
Cumulative effect - reinsurance embedded derivative acctg.	$	(1.41	)				$	(1.41	)			$	(1.42	)				$	(1.42	)
Income from Operations	$	0.99		$	0.56		$	0.42		74.9	%	$	3.30		$	2.34		$	0.94		40.2	%
Operational Data by Segment (Billions, except where noted):
Lincoln Retirement
Gross Deposits		1.879			1.368			0.511		37.4	%		6.244			6.415			(0.171	)	(2.7	)%
Net Flows		0.536			0.074			0.462		624.3	%		1.007			0.453			0.555		122.5	%
Account Values (Gross)		57.007			47.525			9.482		20.0	%		57.007			47.525			9.482		20.0	%
Account Values (Net of Reinsurance)		54.654			45.522			9.132		20.1	%		54.654			45.522			9.132		20.1	%
Life Insurance Segment
First Year Premium- Retail (in millions)		243.516			223.164			20.352		9.1	%		795.673			692.328			103.345		14.9	%
First Year Premium- COLI (in millions)		29.623			26.774			2.849		10.6	%		125.672			88.109			37.563		42.6	%
First Year Premium- Total (in millions)		273.139			249.938			23.200		9.3	%		921.345			780.437			140.908		18.1	%
In-force		281.340			253.896			27.444		10.8	%		281.340			253.896			27.444		10.8	%
Account Values		13.420			12.086			1.333		11.0	%		13.420			12.086			1.333		11.0	%
Investment Management Segment
Retail Deposits		1.666			1.673			(0.007	)	(0.4	)%		5.583			5.695			(0.112	)	(2.0	)%
Retail Net Flows		0.584			0.502			0.082		16.3	%		1.271			0.806			0.465		57.7	%
Institutional In-flows		1.978			1.323			0.654		49.4	%		5.859			5.194			0.665		12.8	%
Institutional Net Flows		1.061			0.572			0.489		85.6	%		2.478			2.106			0.372		17.7	%
Total Net Flows		1.645			1.074			0.571		53.2	%		3.749			2.912			0.837		28.7	%
Assets Under Management- Retail and Inst’l		62.794			46.495			16.299		35.1	%		62.794			46.495			16.299		35.1	%
Assets Under Management - Insurance Assets		43.024			41.104			1.920		4.7	%		43.024			41.104			1.920		4.7	%
Assets Under Management - Total Segment		105.818			87.599			18.219		20.8	%		105.818			87.599			18.219		20.8	%
Consolidated
Domestic Retail Deposits		4.012			3.151			0.861		27.3	%		13.222			12.671			0.550		4.3	%
Domestic Retail Account Balances		90.593			75.034			15.560		20.7	%		90.593			75.034			15.560		20.7	%
Total Domestic Retail Net Flows		1.464			0.791			0.672		84.9	%		3.719			2.496			1.223		49.0	%
Total Domestic Deposits		5.943			4.398			1.544		35.1	%		18.931			17.634			1.297		7.4	%
Total Domestic Net Flows		2.508			1.364			1.144		83.9	%		6.195			4.608			1.587		34.4	%
Total Assets Under Management		140.505			115.921			24.583		21.2	%		140.505			115.921			24.583		21.2	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 1

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended December 31											For the Year Ended December 31
	2003 Amount			2002 Amount			Change			% Change		2003 Amount			2002 Amount			Change			% Change
Revenue		1,702.6			1,188.6			514.0		43.2	%		5,283.9			4,635.5			648.4		14.0	%
Less:
Realized gains (losses) on investments		64.8			(58.9	)		123.7		210.0	%		(16.7	)		(280.9	)		264.3		94.1	%
Gains (losses) on derivatives		(8.8	)		0.3			(9.1	)				(2.5	)		1.2			(3.7	)
Gain (loss) on reinsurance derivative/trading account securities		4.1			—			4.1					4.1			—			4.1
Amortization of deferred gain-reserve development		0.3			0.5			(0.3	)				3.6			(0.8	)		4.4
Mark-to-market adjustment on reclassification from AFS to trading account securities		371.5			—			371.5					371.5			—			371.5
Operating Revenue		1,270.7			1,246.7			24.0		1.9	%		4,923.9			4,916.1			7.8		0.2	%
Revenue - By Segment
Lincoln Retirement		634.2			451.4			182.8		40.5	%		2,054.7			1,787.7			267.0		14.9	%
Life Insurance		505.0			479.6			25.4		5.3	%		1,905.5			1,785.0			120.5		6.8	%
Investment Management		134.3			102.2			32.1		31.5	%		474.4			413.1			61.3		14.8	%
Lincoln UK		77.1			51.8			25.3		48.9	%		273.5			277.2			(3.8	)	(1.4	)%
Corporate & Other		351.9			103.6			248.3		239.6	%		575.8			372.4			203.3		54.6	%
Total		1,702.6			1,188.6			514.0		43.2	%		5,283.9			4,635.5			648.4		14.0	%
Operating Revenue- By Segment
Lincoln Retirement		506.6			497.6			8.9		1.8	%		1,985.1			1,985.5			(0.5	)	(0.0	)%
Life Insurance		488.2			485.0			3.3		0.7	%		1,906.1			1,881.7			24.4		1.3	%
Investment Management		133.8			103.6			30.1		29.1	%		474.0			418.5			55.5		13.3	%
Lincoln UK		78.4			50.6			27.8		54.9	%		274.5			275.4			(0.8	)	(0.3	)%
Corporate & Other		63.7			109.8			(46.1	)	(42.0	)%		284.2			355.0			(70.7	)	(19.9	)%
Total		1,270.7			1,246.7			24.0		1.9	%		4,923.9			4,916.1			7.8		0.2	%
Balance Sheet Assets - End of Period		106,744.9			93,184.6			13,560.2		14.6	%		106,744.9			93,184.6			13,560.2		14.6	%
Shareholders’ Equity
Beg of Period (including AOCI)		5,586.4			5,436.8			149.6					5,347.5			5,303.8			43.7
End of Period (including AOCI)		5,811.6			5,347.5			464.1					5,811.6			5,347.5			464.1
End of Period (excluding AOCI)		4,942.6			4,612.9			329.7					4,942.6			4,612.9			329.7
Average Equity (excluding AOCI)		4,888.2			4,643.6			244.6					4,756.7			4,983.3			(226.6	)
Return on Equity
Net Income/Average Equity (excluding AOCI)		15.9	%		4.4	%		11.5	%				10.8	%		1.0	%		9.8	%
Inc from Operations/Average Equity (excluding AOCI)		14.6	%		8.6	%		6.0	%				12.5	%		8.7	%		3.8	%
Return on Capital
Inc from Operations/Average Capital		12.0	%		6.9	%		5.1	%				10.2	%		7.3	%		2.9	%
Common Stock Outstanding
Average for the Period - Diluted		180.4			178.4			2.0		1.1	%		179.4			184.6			(5.1	)	(2.8	)%
End of Period - Assuming Conv of Pref.		178.5			177.6			0.9		0.5	%		178.5			177.6			0.9		0.5	%
End of Period - Diluted		180.7			178.5			2.2		1.2	%		180.7			178.5			2.2		1.2	%
Book Value (including AOCI)	$	32.56		$	30.10		$	2.45		8.1	%	$	32.56		$	30.10		$	2.45		8.1	%
Book Value (excluding AOCI)	$	27.69		$	25.97		$	1.72		6.6	%	$	27.69		$	25.97		$	1.72		6.6	%
Cash Returned to Shareholders
Share Repurchase - dollar amount		—			—			—					—			474.5			(474.5	)
Dividends Declared to Shareholders		63.0			55.9			7.1					243.5			234.3			9.1
Total Cash Returned to Shareholders		63.0			55.9			7.1					243.5			708.8			(465.4	)
Share Repurchase - number of shares		—			—			—					—			12.088			(12.088	)
Dividend Declared on Common Stock - per share	$	0.350		$	0.335		$	0.015		4.5	%	$	1.355		$	1.295		$	0.060		4.6	%
	For the Quarter Ended December 31											For the Year Ended December 31
	2003 Amount			2002 Amount								2003 Amount			2002 Amount
Comprehensive Income
Net Income		194.3			51.0								511.9			48.8
Foreign Currency Translation		42.0			15.4								58.2			58.8
Net Unrealized Gains (Losses) on Securities		(11.4	)		(64.3	)							39.8			557.6
Gains (Losses) on Derivatives		(1.1	)		1.1								(6.3	)		6.8
Minimum Pension Liability Adjustment		43.9			(62.6	)							42.7			(61.9	)
Comprehensive Income		267.7			(59.3	)							646.4			610.2

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 2

Financial Highlights

Unaudited [Amounts in Millions]

	For the Quarter Ended December 31								For the Year Ended December 31
	2003 Amount		2002 Amount		Change		% Change		2003 Amount		2002 Amount		Change		% Change
Consolidated Condensed Statements of Income
Revenue:
Insurance Premiums and Fees	454.1		446.2		7.9		1.8	%	1,698.4		1,726.8		(28.3	)	(1.6	)%
Investment Advisory Fees	58.3		44.7		13.6		30.5	%	205.0		183.3		21.7		11.8	%
Net Investment Income	659.2		667.3		(8.1	)	(1.2	)%	2,638.5		2,631.9		6.6		0.3	%
Realized Gains (Losses) on Investments	64.8		(58.9	)	123.7				(16.7	)	(280.9	)	264.3
Gains (Losses) on Derivatives	(8.8	)	0.3		(9.1	)			(2.5	)	1.2		(3.7	)
Gain on Reinsurance Derivative/Trading Account Securities	4.1		—		4.1				4.1		—		4.1
Amortization of Deferred Gain on Indemnity Reinsurance	17.4		6.9		10.4		150.5	%	72.3		75.2		(3.0	)	(3.9	)%
Mark-to-Market Adjustment on Reclassification from AFS to Trading Account Securities	371.5		—		371.5				371.5		—		371.5
Other	82.0		82.0		—				313.2		298.0		15.2		5.1	%
Total Revenue	1,702.6		1,188.6		514.0		43.2	%	5,283.9		4,635.5		648.4		14.0	%
Benefits and Expenses:
Benefits	583.1		666.2		(83.1	)	(12.5	)%	2,428.5		2,859.5		(431.0	)	(15.1	)%
Underwriting, Acquisition, Insurance and Other Expenses	473.7		478.0		(4.3	)	(0.9	)%	1,807.8		1,829.8		(22.0	)	(1.2	)%
Total Benefits and Expenses	1,056.8		1,144.2		(87.4	)	(7.6	)%	4,236.3		4,689.3		(453.0	)	(9.7	)%
Income before Federal Taxes	645.7		44.4		601.3				1,047.6		(53.8	)	1,101.4
Federal Income Taxes	196.2		(6.6	)	202.8				280.4		(102.6	)	383.1
Income before Accounting Changes	449.6		51.0		398.5				767.2		48.8		718.3
Cumulative Effect of Accounting Changes	(255.2	)	—		(255.2	)			(255.2	)	—		(255.2	)
Net Income	194.3		51.0		143.3		280.7	%	511.9		48.8		463.1		948.9	%
Income before Tax and Cumulative Effect of Accounting Changes By Segment
Lincoln Retirement	241.4		(13.4	)	254.8				463.0		(5.6	)	468.6
Life Insurance	120.3		86.0		34.2				365.4		294.2		71.2
Investment Management	15.2		2.0		13.2				34.6		(0.9	)	35.6
Lincoln UK	17.2		15.1		2.1				64.5		34.3		30.1
Corporate and Other	251.7		(45.3	)	297.0				120.0		(375.9	)	495.9
Income before Tax and Cumulative Effect of Accounting Changes	645.7		44.4		601.3				1,047.6		(53.8	)	1,101.4
Pre-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	38.9		(46.2	)	85.1				(19.1	)	(197.8	)	178.7
Life Insurance	17.4		(5.4	)	22.8				0.0		(96.7	)	96.7
Investment Management	0.5		(1.5	)	2.0				0.4		(5.4	)	5.8
Lincoln UK	(1.3	)	1.2		(2.5	)			(1.1	)	1.9		(2.9	)
Corporate and Other	0.5		1.5		(1.1	)			0.6		26.6		(26.0	)
Pre-Tax Realized Gains (Losses) on Investments and Derivatives	56.0		(50.3	)	106.3				(19.2	)	(271.5	)	252.3
After-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	25.3		(30.4	)	55.7				(12.4	)	(128.6	)	116.1
Life Insurance	11.3		(3.5	)	14.9				0.0		(62.9	)	62.9
Investment Management	0.3		(0.9	)	1.3				0.3		(3.5	)	3.8
Lincoln UK	(0.9	)	0.8		(1.7	)			(0.7	)	1.3		(2.0	)
Corporate and Other	0.2		1.0		(0.8	)			0.3		17.3		(17.0	)
After-Tax Realized Gains (Losses) on Investments and Derivatives	36.3		(33.1	)	69.3				(12.6	)	(176.4	)	163.8

* Includes both realized gains (losses) on investments and gains (losses) on derivatives.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 3

Financial Highlights

Unaudited [Millions of Dollars]

	As of
	December 2003 Amount		December 2002 Amount		Change		% Change
Consolidated Condensed Balance Sheets
Assets:
Investments:
Available for Sale Securities:
Fixed Maturities	32,769.5		32,767.5		2.0		0.0	%
Equities	199.1		337.2		(138.1	)	(41.0	)%
Trading Securities	3,120.1		—		3,120.1		100.0	%
Mortgage Loans on Real Estate	4,195.0		4,205.5		(10.4	)	(0.2	)%
Real Estate	112.9		279.7		(166.8	)	(59.6	)%
Policy Loans	1,924.4		1,945.6		(21.2	)	(1.1	)%
Other Long-Term Investments	456.7		464.4		(7.7	)	(1.7	)%
Total Investments	42,777.6		39,999.9		2,777.8		6.9	%
Assets Held in Separate Accounts	46,565.2		36,178.3		10,386.8		28.7	%
Other Assets	17,402.1		17,006.5		395.6		2.3	%
Total Assets	106,744.9		93,184.6		13,560.2		14.6	%
Liabilities and Shareholders’ Equity
Liabilities:
Insurance and Investment Contract Liabilities	47,318.1		44,845.3		2,472.8		5.5	%
Liabilities Related to Separate Accounts	46,565.2		36,178.3		10,386.8		28.7	%
Other Liabilities	7,050.0		6,813.6		236.5		3.5	%
Total Liabilities	100,933.2		87,837.2		13,096.1		14.9	%
Shareholders’ Equity:
Net Unrealized Gains on Securities and Derivatives	815.1		781.6		33.5		4.3	%
Minimum Pension Liability Adjustment	(55.1	)	(97.8	)	42.7		43.7	%
Foreign Currency Translation Adjustment	109.0		50.8		58.2		114.5	%
Other Shareholders’ Equity	4,942.5		4,612.9		329.7		7.1	%
Total Shareholders’ Equity	5,811.6		5,347.5		464.1		8.7	%
Total Liabilities and Shareholders’ Equity	106,744.9		93,184.6		13,560.2		14.6	%
	As of
	December 2003 Amount		December 2002 Amount		Change		% Change
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	2,970.9		2,885.3		85.6		3.0	%
Deferral	658.7		627.3		31.4		5.0	%
Amortization	(323.1	)	(346.7	)	23.6		6.8	%
Included in Total Benefits and Expenses	335.7		280.6		55.1		19.6	%
Adjustment related to realized (gains) losses on available-for-sale securities	(50.2	)	115.0		(165.2	)	(143.6	)%
Adjustment related to unrealized (gains) losses on available-for-sale securities	(126.0	)	(338.6	)	212.6		62.8	%
Foreign currency translation adjustment	62.0		56.9		5.1		8.9	%
Other	—		(28.4	)	28.4		100.0	%
Balance at end-of-period	3,192.3		2,970.9		221.5		7.5	%
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	1,250.1		1,362.5		(112.4	)	(8.2	)%
Amortization	(80.2	)	(136.5	)	56.3		41.2	%
Foreign currency translation adjustment	26.6		24.1		2.5		10.5	%
Balance at end-of-period	1,196.5		1,250.1		(53.6	)	(4.3	)%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 4

Eleven-Year Summary

Unaudited [Millions of Dollars, except Common Share Data]

For the Year Ended December 31	2003			2002			2001			2000			1999			1998			1997			1996			1995			1994			1993			Ten-Year compound annual  growth
Revenue
Lincoln Retirement		2,054.7			1,787.7			1,968.3			2,133.7			2,115.8			2,068.1			2,023.0			1,805.0			1,877.1			1,506.2			1,603.8		2.5	%
Life Insurance		1,905.5			1,785.0			1,840.6			1,819.0			1,760.4			1,378.5			544.8			549.2			514.9			466.2			477.5		14.8	%
Investment Management		474.4			413.1			451.2			513.7			514.9			509.6			459.1			410.5			290.5
Lincoln UK		273.5			277.2			290.7			433.8			446.6			439.7			427.3			393.2			351.5			216.0			174.9		4.6	%
Corporate & Other		575.8			372.4			1,827.3			1,946.9			1,966.0			1,691.1			1,444.3			1,575.6			1,552.5			1,744.1			2,680.9
Total Revenue		5,283.9			4,635.5			6,378.0			6,847.1			6,803.7			6,087.1			4,898.5			4,733.6			4,586.5			3,932.5			4,937.1		0.7	%
Net Income
Lincoln Retirement		300.5			53.7			265.1			354.7			291.5			273.8			263.3			204.3			248.8			142.4			127.1		9.0	%
Life Insurance		252.1			206.1			229.3			246.0			211.5			127.5			39.1			51.8			40.6			34.2			37.8		20.9	%
Investment Management		30.2			(1.4	)		(9.0	)		17.9			51.6			44.4			25.1			25.0			27.4
Lincoln UK		42.9			37.7			66.8			(15.1	)		(18.2	)		71.7			(106.8	)		66.0			45.7			18.5			12.6
Corporate & Other		(113.7	)		(247.3	)		(6.6	)		(18.2	)		(76.1	)		(7.6	)		(198.4	)		9.3			(61.0	)		(29.6	)		(101.1	)
Total Net Inc from Cont Oper		511.9			48.8			545.7			585.3			460.4			509.8			22.2			356.4			301.4			165.5			76.4		21.0	%
Discontinued Operations		—			—			—			—			—			—			911.8			157.2			180.8			184.4			242.5
Total Net Income		511.9			48.8			545.7			585.3			460.4			509.8			934.0			513.6			482.2			349.9			318.9		4.8	%
Income from Operations
Lincoln Retirement		331.9			183.4			316.2			358.1			299.4			262.4			223.0			174.6			175.2			142.4			127.1		10.1	%
Life Insurance		264.5			269.0			275.3			256.7			212.0			149.2			39.9			41.2			35.4			34.2			37.8		21.5	%
Investment Management		34.5			1.8			(6.1	)		25.0			61.0			43.9			18.1			18.6			20.6
Lincoln UK		43.6			34.6			58.1			59.2			(13.9	)		70.9			(108.3	)		66.0			45.9			17.2			11.9		13.9	%
Corporate & Other		(81.8	)		(57.2	)		1.0			(16.0	)		(83.1	)		4.0			(223.3	)		(1.7	)		(136.2	)		24.8			20.8
Total Income from Cont Oper		592.8			431.6			644.4			683.0			475.5			530.4			(50.6	)		298.8			140.8			218.6			197.6		11.6	%
Discontinued Operations		—			—			—			—			—			—			110.1			135.3			165.6			171.1			145.9
Income from Operations		592.8			431.6			644.4			683.0			475.5			530.4			59.4			434.1			306.5			389.7			343.5		5.6	%
OTHER DATA
Assets		106,744.9			93,184.6			98,041.6			99,870.6			103,095.7			93,836.3			77,174.7			71,713.4			63,257.7			48,864.8			47,825.1		8.4	%
Shareholders’ Equity
Including AOCI		5,811.6			5,347.5			5,303.8			4,980.6			4,263.9			5,387.9			4,982.9			4,470.0			4,378.1			3,042.1			4,072.3		3.6	%
Excluding AOCI		4,942.6			4,612.9			5,130.6			4,946.6			4,699.5			4,785.5			4,500.7			3,990.6			3,669.2			3,353.1			3,157.6		4.6	%
Average Equity (excluding AOCI)		4,756.7			4,983.3			5,057.1			4,831.4			4,786.2			4,636.3			4,172.7			3,851.7			3,400.3			3,288.6			3,009.0		4.7	%
Common Shares Outstanding (millions)
End of Period - Diluted		180.7			178.5			189.3			193.2			197.0			203.4			204.7			209.5			210.3			208.3			208.3
Average for the Period - Diluted		179.4			184.6			191.5			193.0			200.4			203.3			208.0			208.0			210.7			208.7			206.1
Per Share Data (Diluted)
Net Income from Continuing Operations	$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	0.11		$	1.71		$	1.43		$	0.79		$	0.37		22.6	%
Net Income	$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	4.49		$	2.47		$	2.29		$	1.68		$	1.55		6.3	%
Income (Loss) from Continuing Operations	$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61		$	(0.24	)	$	1.44		$	0.67		$	1.05		$	0.96		13.2	%
Income from Operations	$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61		$	0.29		$	2.09		$	1.45		$	1.87		$	1.67		7.1	%
Shareholders’ Equity Per Share
Shareholders’ Equity (Including AOCI)	$	32.56		$	30.10		$	28.32		$	26.05		$	21.76		$	26.59		$	24.63		$	21.50		$	20.95		$	14.67		$	19.69		5.2	%
Shareholders’ Equity (Excluding accum AOCI)	$	27.69		$	25.97		$	27.39		$	25.88		$	23.98		$	23.62		$	22.25		$	19.19		$	17.55		$	16.17		$	15.27		6.1	%
Dividends Declared (Common Stock)	$	1.36		$	1.30		$	1.24		$	1.18		$	1.12		$	1.06		$	1.00		$	0.94		$	0.875		$	0.830		$	0.775		5.7	%
Return on Equity
Net Income/Average Equity		10.8	%		1.0	%		10.8	%		12.1	%		9.6	%		11.0	%		22.4	%		13.3	%		15.5	%		10.6	%		10.6	%
Inc from Operations/Average Equity		12.5	%		8.7	%		12.7	%		14.1	%		9.9	%		11.4	%		1.4	%		11.3	%		9.8	%		11.8	%		11.4	%
Market Value of Common Stock
High for the Year	$	41.32		$	53.65		$	52.75		$	56.38		$	57.50		$	49.44		$	39.06		$	28.50		$	26.88		$	22.19		$	24.13
Low for the Year	$	24.73		$	25.15		$	38.00		$	22.63		$	36.00		$	33.50		$	24.50		$	20.38		$	17.31		$	17.31		$	17.34
Close for the Year	$	40.37		$	31.58		$	48.57		$	47.31		$	40.00		$	40.91		$	39.06		$	26.25		$	26.88		$	17.50		$	21.75		6.4	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 5

Quarterly Summary

Unaudited [Millions of Dollars, except Common Share Data]

For the Quarter Ended	Dec 2001			Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003
Revenue
Lincoln Retirement		467.5			453.0			442.6			440.7			451.4			397.8			486.4			536.3			634.2
Life Insurance		464.7			423.9			439.8			441.6			479.6			457.5			474.0			468.9			505.0
Investment Management		110.8			107.3			106.1			97.5			102.2			102.1			116.4			121.7			134.3
Lincoln UK		53.4			53.2			80.5			91.8			51.8			68.9			60.2			67.3			77.1
Corporate & Other		367.4			88.5			88.5			91.8			103.6			73.0			76.1			74.8			351.9
Total Revenue		1,463.8			1,126.0			1,157.5			1,163.4			1,188.6			1,099.3			1,213.2			1,268.8			1,702.6
Net Income
Lincoln Retirement		53.1			46.6			9.2			(7.0	)		5.0			6.9			81.7			102.0			109.9
Life Insurance		50.9			43.5			56.7			46.4			59.5			48.5			65.6			55.8			82.2
Investment Management		(2.4	)		2.1			(0.8	)		(3.9	)		1.1			1.0			4.6			6.3			18.2
Lincoln UK		22.0			10.3			9.3			0.2			17.9			6.8			12.4			11.5			12.2
Corporate & Other		33.2			(16.8	)		(25.8	)		(172.1	)		(32.6	)		(21.7	)		(21.6	)		(42.4	)		(28.1	)
Total Net Income		156.9			85.6			48.5			(136.4	)		51.0			41.6			142.7			133.3			194.3
Income from Operations
Lincoln Retirement		73.7			79.4			46.8			21.8			35.4			57.4			86.1			94.3			94.1
Life Insurance		72.3			70.4			72.8			62.7			63.1			60.7			71.8			58.7			73.4
Investment Management		(1.3	)		3.1			(0.3	)		(3.0	)		2.1			1.3			4.5			9.7			19.0
Lincoln UK		19.0			13.8			6.1			(0.6	)		15.3			6.8			12.4			11.3			13.0
Corporate & Other		23.0			(13.6	)		(8.9	)		(18.8	)		(15.9	)		(21.5	)		(21.5	)		(18.0	)		(20.8	)
Income from Operations		186.7			153.1			116.4			62.1			100.0			104.8			153.3			156.0			178.7
OTHER DATA
Assets		98,041.6			97,888.5			95,114.2			90,483.9			93,184.6			92,497.6			99,532.8			100,825.5			106,744.9
Shareholders’ Equity
Beg of Period (including AOCI)		5,405.0			5,303.8			5,173.2			5,352.8			5,436.8			5,347.5			5,450.0			5,815.9			5,586.4
End of Period (including AOCI)		5,303.8			5,173.2			5,352.8			5,436.8			5,347.5			5,450.0			5,815.9			5,586.4			5,811.6
End of Period (excluding AOCI)		5,130.6			5,174.7			5,020.3			4,591.8			4,612.9			4,610.5			4,699.8			4,790.6			4,942.6
Average Equity (excluding AOCI)		5,179.0			5,179.8			5,165.8			4,944.0			4,643.6			4,682.0			4,672.0			4,784.5			4,888.2
Common Shares Outstanding
Average for the Period - Diluted		190.9			190.0			188.5			183.2			178.4			178.3			179.2			179.9			180.4
End of Period - Diluted		189.3			190.2			186.1			178.2			178.5			178.4			179.5			179.9			180.7
Per Share Data (Diluted)
Net Income	$	0.82		$	0.45		$	0.26		$	(0.74	)	$	0.29		$	0.23		$	0.80		$	0.74		$	1.08
Income from Operations	$	0.98		$	0.81		$	0.62		$	0.34		$	0.56		$	0.59		$	0.86		$	0.87		$	0.99
Shareholders’ Equity
Shareholders’ Equity (including AOCI)		28.32			27.53			29.01			30.64			30.10			30.66			32.68			31.34			32.56
Shareholders’ Equity (excluding AOCI)		27.39			27.54			27.21			25.87			25.97			25.94			26.41			26.87			27.69
Dividends Declared (Common Stock)		0.320			0.320			0.320			0.320			0.335			0.335			0.335			0.335			0.350
Return on Equity
Net Income/Average Equity		12.1	%		6.6	%		3.8	%		(11.0	)%		4.4	%		3.6	%		12.2	%		11.1	%		15.9	%
Inc from Operations/Average Equity		14.4	%		11.8	%		9.0	%		5.0	%		8.6	%		8.9	%		13.1	%		13.0	%		14.6	%
Market Value of Common Stock
Highest Price	$	49.450		$	53.650		$	52.540		$	42.080		$	35.950		$	35.700		$	37.500		$	38.640		$	41.320
Lowest Price	$	40.000		$	47.200		$	40.750		$	29.120		$	25.150		$	24.730		$	27.870		$	34.630		$	35.410
Closing Price	$	48.570		$	50.730		$	42.000		$	30.550		$	31.580		$	28.000		$	35.630		$	35.380		$	40.370

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 6

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Amounts in Millions]

For the Quarter Ended December 31	Lincoln Retirement				Life Insurance				Investment Management				Lincoln UK
	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002
Revenue
Life and annuity premiums	5.6		8.7		52.2		56.4						18.8		13.5
Surrender charges	6.2		7.4		16.1		15.5
Mortality assessments					128.4		127.3						8.7		8.9
Expense assessments	124.8		100.6		55.0		56.3						24.6		22.8
Health premiums													0.5		0.6
Investment advisory fees									84.4		68.9
Other revenue and fees	0.5		2.7		8.4		6.2		36.9		22.1		9.6		(11.9	)
Net investment income	369.5		378.3		228.1		223.3		12.5		12.7		16.2		16.6
Realized gains (losses) on investments	44.7		(46.1	)	20.5		(5.5	)	0.5		(1.5	)	(1.3	)	1.2
Gains (losses) on derivatives	(5.8	)	(0.1	)	(3.1	)	0.1
Gain (loss) on reins. derivative/trading account securities	2.8				(0.6	)
Mark-to-market adjustment on reclassification from AFS to trading account securities	86.0
Total Revenue	634.2		451.4		505.0		479.6		134.3		102.2		77.1		51.8
Operating Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	37.1		78.4		83.2		114.6						26.5		21.2
Div accum & div to policyholders					33.8		22.8
Interest credited to policy bal.	214.0		231.7		147.5		150.7
Health policy benefits													6.8		1.8
Total insurance benefits	251.1		310.1		264.5		288.0						33.3		23.1
Underwriting, acquisition, insurance and other expenses:
Commissions	96.8		72.8		44.3		38.6						0.8		1.3
Other volume related expenses	22.8		18.1		62.6		58.3
Operating and administrative expenses	58.5		69.9		45.4		44.7		113.3		95.8		20.0		20.6
Restructuring charges	5.5				4.2				1.7						(1.7	)
Taxes, licenses and fees	4.0		(0.5	)	18.0		11.5		2.1		2.4
Par policyholder interests
Foreign exchange
Subtotal	187.6		160.4		174.4		153.2		117.1		98.2		20.8		20.2
Deferral of acquisition costs	(80.1	)	(55.3	)	(112.1	)	(101.4	)					(1.6	)	(0.6	)
DAC amortization	32.5		29.6		38.0		36.3						14.7		(11.5	)
DAC deferral net of amortization	(47.6	)	(25.7	)	(74.1	)	(65.1	)					13.1		(12.1	)
PVIF amortization	1.8		20.0		19.9		17.4						(7.3	)	5.5
Other intangibles amortization									2.0		2.0
Total underwriting, acquisition, insurance and other expenses	141.8		154.8		120.2		105.5		119.1		100.2		26.6		13.6
Goodwill amortization
Interest
Benefits and Expenses	392.9		464.8		384.8		393.6		119.1		100.2		59.9		36.7
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	241.4		(13.4	)	120.3		86.0		15.2		2.0		17.2		15.1
Federal income taxes	67.9		(18.4	)	38.7		26.5		(3.0	)	0.9		5.1		(2.8	)
Income Before Cumulative Effect of Accounting Change	173.5		5.0		81.6		59.5		18.2		1.1		12.2		17.9
Cumulative effect of accounting change	(63.6	)			0.6
Net Income	109.9		5.0		82.2		59.5		18.2		1.1		12.2		17.9
Less:
Restructuring charges	(3.6	)			(2.7	)			(1.1	)					1.7
Realized gains (losses) on investments	29.1		(30.4	)	13.4		(3.6	)	0.3		(0.9	)	(0.9	)	0.8
Gains (losses) on derivatives	(3.8	)			(2.0	)	0.1
Net gain (loss) on reinsurance derivative/trading account securities	1.8				(0.4	)
Reserve development on business sold through reinsurance/ amortization of deferred gain
Gain on sale of subsidiaries
Loss on early retirement of subordinated debt
Mark-to-market adjustment on reclassification from AFS to trading account securities	55.9
Cumulative effect - reins. embedded derivative acctg.	(63.6	)			0.6
Income from Operations	94.1		35.4		73.4		63.1		19.0		2.1		13.0		15.3

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 7

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Amounts in Millions]

For the Quarter Ended December 31	Corporate and Other Operations				Consolidating Adjustments				Consolidated
	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002
Revenue
Life and annuity premiums			2.2						76.6		80.7
Surrender charges					0.7		0.6		23.0		23.5
Mortality assessments	1.0		(0.9	)					138.1		135.3
Expense assessments	(1.0	)	0.9		12.4		7.0		215.9		187.6
Health premiums	0.1		18.4						0.5		19.1
Investment advisory fees					(26.2	)	(24.2	)	58.3		44.7
Amortization of deferred gain	17.4		6.9						17.4		6.9
Amortization of deferred gain-reserve development	0.3		0.5						0.3		0.5
Other revenue and fees	140.0		141.4		(113.7	)	(78.9	)	81.7		81.5
Net investment income	33.6		37.7		(0.6	)	(1.3	)	659.2		667.3
Earnings in unconsolidated affiliates
Realized gains (losses) on investments	0.3		(10.2	)			3.2		64.8		(58.9	)
Gains (losses) on derivatives	0.2		0.3						(8.8	)	0.3
Gain (loss) on reins. derivative/trading account securities	1.9								4.1
Mark-to-market adjustment on reclassification from AFS to trading account securities	285.5								371.5
Total Revenue	479.2		197.3		(127.3	)	(93.7	)	1,702.6		1,188.6
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	(32.4	)	(0.2	)					114.5		214.0
Div accum & div to policyholders	(0.0	)	(0.0	)					33.8		22.8
Interest credited to policy bal.	27.6		21.4		6.6		7.2		395.7		411.1
Health policy benefits	32.3		3.3						39.1		5.1
Reserve developments on Reins. business sold			13.2								13.2
Total insurance benefits	27.5		37.7		6.6		7.2		583.1		666.2
Underwriting, acquisition, insurance and other expenses:
Commissions	22.1		42.2		9.4		7.1		173.5		162.0
Other volume related expenses	73.9		58.7		(58.3	)	(62.5	)	101.0		72.6
Operating and administrative expenses	74.3		73.8		(80.1	)	(45.2	)	231.4		259.7
Restructuring charges	3.6								15.0		(1.7	)
Loss on early retirement of subordinated debt
Taxes, licenses and fees	3.2		9.1						27.3		22.6
Par policyholder interests
Foreign exchange			(0.6	)							(0.6	)
Subtotal	177.1		183.2		(128.9	)	(100.5	)	548.1		514.6
Deferral of acquisition costs					(10.2	)	(10.5	)	(204.0	)	(167.8	)
DAC amortization	0.1		0.1		5.8		8.2		91.0		62.8
DAC deferral net of amortization	0.1		0.1		(4.4	)	(2.2	)	(112.9	)	(105.0	)
PVIF amortization									14.4		43.0
Other intangibles amortization									2.0		2.0
Total underwriting, acquisition, insurance and other expenses	177.2		183.3		(133.3	)	(102.8	)	451.5		454.5
Goodwill amortization
Interest	22.8		24.8		(0.6	)	(1.3	)	22.2		23.5
Total Benefits and Expenses	227.5		245.8		(127.3	)	(96.9	)	1,056.8		1,144.2
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	251.7		(48.5	)			3.2		645.7		44.4
Federal income taxes	87.6		(13.9	)			1.1		196.2		(6.6	)
Income Before Cumulative Effect of Accounting Change	164.1		(34.6	)	(0.0	)	2.1		449.6		51.0
Cumulative effect of accounting change	(192.2	)							(255.2	)
Net Income	(28.1	)	(34.6	)	(0.0	)	2.1		194.3		51.0
Less:
Restructuring charges	(2.4	)	0.0						(9.8	)	1.7
Realized gains (losses) on investments	0.1		0.8						42.0		(33.3	)
Gains (losses) on derivatives	0.1		0.2						(5.7	)	0.2
Net gain (loss) on reinsurance derivative/trading account securities	1.3								2.7
Reserve development on business sold through reinsurance/ amortization of related deferred gain	0.2		(8.2	)					0.2		(8.2	)
Gain on sale of subsidiaries			(11.5	)			2.1				(9.4	)
Loss on early retirement of subordinated debt
Mark-to-market adjustment on reclassification from AFS to trading account securities	185.6								241.5
Cumulative effect - reins. embedded derivative acctg.	(192.2	)							(255.2	)
Income from Operations	(20.8	)	(15.9	)	0.0		(0.0	)	178.7		100.0

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 7A

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Amounts in Millions]

For the Year Ended December 31	Lincoln Retirement				Life Insurance				Investment Management				Lincoln UK
	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002
Revenue
Life and annuity premiums	21.9		47.4		194.8		203.6						60.2		48.0
Surrender charges	28.9		31.2		53.6		54.1
Mortality assessments					516.7		501.5						35.7		32.4
Expense assessments	441.9		446.2		201.8		199.5						93.9		105.3
Health premiums					0.1		0.2						2.0		2.6
Investment advisory fees									306.2		281.0
Other revenue and fees	8.7		3.3		28.0		23.7		117.9		87.0		18.6		24.9
Net investment income	1,483.7		1,457.5		911.1		899.1		49.9		50.5		64.1		62.1
Realized gains (losses) on investments	(12.5	)	(196.6	)	3.6		(98.2	)	0.4		(5.4	)	(1.1	)	1.9
Gains (losses) on derivatives	(6.6	)	(1.2	)	(3.6	)	1.5
Gain (loss) on reins. derivative/trading account securities	2.8				(0.6	)
Mark-to-market adjustment on reclassification from AFS to trading account securities	86.0
Total Revenue	2,054.7		1,787.7		1,905.5		1,785.0		474.4		413.1		273.5		277.2
Operating Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	181.5		314.1		416.0		427.4						85.5		70.8
Div accum & div to policyholders					81.6		76.0
Interest credited to policy bal.	867.7		903.8		598.2		598.6
Health policy benefits													13.0		13.4
Total insurance benefits	1,049.2		1,217.9		1,095.9		1,102.0						98.6		84.2
Underwriting, acquisition, insurance and other expenses:
Commissions	318.5		320.8		141.8		139.8						3.8		6.1
Other volume related expenses	67.5		64.6		208.3		190.4
Operating and administrative expenses	226.2		231.3		166.2		162.2		414.6		393.2		78.3		77.0
Restructuring charges	20.1		1.6		19.5				7.1		(0.4	)			(1.7	)
Taxes, licenses and fees	17.7		11.5		62.2		53.2		10.3		13.0
Par policyholder interests
Foreign exchange
Subtotal	650.0		629.8		598.0		545.6		431.9		405.8		82.1		81.4
Deferral of acquisition costs	(242.5	)	(243.9	)	(370.8	)	(336.5	)					(3.5	)	(3.5	)
DAC amortization	125.5		157.7		135.5		105.8						42.5		50.0
DAC deferral net of amortization	(117.0	)	(86.2	)	(235.2	)	(230.7	)					39.1		46.5
PVIF amortization	9.5		31.8		81.4		73.9						(10.7	)	30.8
Other intangibles amortization									7.9		8.2
Total underwriting, acquisition, insurance and other expenses	542.5		575.4		444.2		388.8		439.8		414.0		110.4		158.7
Benefits and Expenses	1,591.7		1,793.3		1,540.1		1,490.8		439.8		414.0		209.0		242.9
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	463.0		(5.6	)	365.4		294.2		34.6		(0.9	)	64.5		34.3
Federal income taxes	98.9		(59.3	)	113.9		88.1		4.5		0.5		21.6		(3.4	)
Income Before Cumulative Effect of Accounting Change	364.1		53.7		251.5		206.1		30.2		(1.4	)	42.9		37.7
Cumulative effect of accounting change	(63.6	)			0.6
Net Income	300.5		53.7		252.1		206.1		30.2		(1.4	)	42.9		37.7
Less:
Restructuring charges	(13.1	)	(1.0	)	(12.7	)			(4.6	)	0.3				1.7
Realized gains (losses) on investments	(8.2	)	(127.8	)	2.3		(63.8	)	0.3		(3.5	)	(0.7	)	1.3
Gains (losses) on derivatives	(4.3	)	(0.8	)	(2.3	)	1.0
Net gain (loss) on reinsurance derivative/trading account securities	1.8				(0.4	)
Reserve development on business sold through reinsurance/ Amortization of deferred gain
Gain on sale of subsidiaries
Loss on early retirement of subordinated debt
Mark-to-market adjustment on reclassification from AFS to trading account securities	55.9
Cumulative effect - reins. embedded derivative acctg.	(63.6	)			0.6
Income from Operations	331.9		183.4		264.5		269.0		34.5		1.8		43.6		34.6

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 8

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Amounts in Millions]

For the Year Ended December 31	Corporate and Other Operations				Consolidating Adjustments				Consolidated
	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002
Revenue
Life and annuity premiums			(3.3	)					277.0		295.6
Surrender charges					2.3		2.4		84.7		87.8
Mortality assessments	(1.9	)	(3.6	)					550.5		530.3
Expense assessments	1.9		3.6		42.8		38.1		782.3		792.7
Health premiums	1.9		17.5						4.0		20.3
Investment advisory fees					(101.2	)	(97.7	)	205.0		183.3
Amortization of deferred gain	72.3		75.2						72.3		75.2
Amortization of deferred gain-reserve development	3.6		(0.8	)					3.6		(0.8	)
Other revenue and fees	460.9		438.6		(324.4	)	(277.9	)	309.7		299.5
Net investment income	133.2		168.6		(3.5	)	(6.0	)	2,638.5		2,631.9
Earnings in unconsolidated affiliates			(0.6	)							(0.6	)
Realized gains (losses) on investments	(7.1	)	14.2				3.2		(16.7	)	(280.9	)
Gains (losses) on derivatives	7.6		0.9						(2.5	)	1.2
Gain (loss) on reins. derivative/trading account securities	1.9								4.1
Mark-to-market adjustment on reclassification from AFS to trading account securities	285.5								371.5
Total Revenue	959.8		710.3		(384.0	)	(337.9	)	5,283.9		4,635.5
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	0.6		(1.1	)					683.7		811.3
Div accum & div to policyholders									81.6		76.0
Interest credited to policy bal.	124.8		83.5		26.4		31.3		1,617.0		1,617.1
Health policy benefits	1.0		36.3						14.1		49.7
Reserve developments on reins. business sold	32.1		305.4						32.1		305.4
Total insurance benefits	158.5		424.2		26.4		31.3		2,428.5		2,859.5
Underwriting, acquisition, insurance and other expenses:
Commissions	80.1		86.1		31.9		26.5		576.1		579.4
Other volume related expenses	227.7		201.1		(175.0	)	(199.3	)	328.4		256.8
Operating and administrative expenses	250.2		248.7		(241.0	)	(184.4	)	894.4		928.0
Restructuring charges	7.2		(1.7	)					53.8		(2.2	)
Loss on early retirement of subordinated debt	5.6								5.6
Taxes, licenses and fees	17.2		29.1						107.4		106.8
Par policyholder interests
Foreign exchange	(0.0	)	0.3						(0.0	)	0.3
Subtotal	588.0		563.7		(384.1	)	(357.2	)	1,965.8		1,869.0
Deferral of acquisition costs			(1.4	)	(42.0	)	(42.0	)	(658.7	)	(627.3	)
DAC amortization	0.4		0.4		19.2		32.9		323.1		346.7
DAC deferral net of amortization	0.4		(1.0	)	(22.8	)	(9.2	)	(335.7	)	(280.6	)
PVIF amortization									80.2		136.5
Other intangibles amortization									7.9		8.2
Total underwriting, acquisition, insurance and other expenses	588.3		562.6		(406.9	)	(366.4	)	1,718.3		1733.2
Interest	93.0		102.6		(3.5	)	(6.0	)	89.5		96.6
Total Benefits and Expenses	839.8		1,089.4		(384.0	)	(341.1	)	4,236.3		4,689.3
Income from Before Federal Income Tax and Cumulative Effect of Accounting Change	120.0		(379.1	)			3.2		1,047.6		(53.8	)
Federal income taxes	41.5		(129.7	)			1.1		280.4		(102.6	)
Income Before Cumulative Effect of Accounting Change	78.5		(249.4	)			2.1		767.2		48.8
Cumulative effect of accounting change	(192.2	)							(255.2	)
Net Income	(113.7	)	(249.4	)	0.0		2.1		511.9		48.8
Less:
Restructuring charges	(4.7	)	1.1						(35.0	)	2.0
Realized gains (losses) on investments	(4.7	)	16.7						(11.0	)	(177.2	)
Gains (losses) on derivatives	5.0		0.6						(1.6	)	0.8
Net gain (loss) on reinsurance derivative/trading account securities	1.3								2.7
Reserve development on business sold through reinsurance/ amortization of deferred gain	(18.5	)	(199.1	)					(18.5	)	(199.1	)
Gain on sale of subsidiaries			(11.5	)			2.1				(9.4	)
Loss on early retirement of subordinated debt	(3.7	)							(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities	185.6								241.5
Cumulative effect - reins. embedded derivative acctg.	(192.2	)							(255.2	)
Income from Operations	(81.8	)	(57.2	)	0.0		(0.0	)	592.8		431.6

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 8A

Statement of Consolidated Income

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Life and annuity premiums	1,183.0		1,403.3		1,363.4		295.6		277.0
Surrender charges	110.2		114.7		101.5		87.8		84.7
Mortality assessments	496.4		496.5		533.3		530.3		550.5
Expense assessments	896.0		1,013.1		880.1		792.7		782.3
Health premiums	698.5		409.8		340.6		20.3		4.0
Investment advisory fees	223.8		213.1		197.2		183.3		205.0
Amortization of deferred gain					20.4		75.2		72.3
Amortization of deferred gain-reserve development							(0.8	)	3.6
Other revenue and fees	344.5		441.1		328.7		299.5		309.7
Net investment income	2,842.5		2,784.1		2,708.7		2,631.9		2,638.5
Earnings in unconsolidated affiliates	5.8		(0.4	)	5.7		(0.6	)
Realized gains (losses) on investments	3.0		(28.3	)	(92.4	)	(280.9	)	(16.7	)
Gains (losses) on derivatives					(9.3	)	1.2		(2.5	)
Gain (loss) on reinsurance derivative/trading account securities									4.1
Mark-to-market adjustment on reclassification from AFS to trading account securities									371.5
Total Revenue	6,803.7		6,847.1		6,378.0		4,635.5		5,283.9
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	1,546.6		1,546.4		1,517.9		811.3		683.7
Div accum & div to policyholders	88.4		87.6		83.7		76.0		81.6
Interest credited to policy bal.	1,510.4		1,474.2		1,506.0		1,617.1		1,617.0
Health policy benefits	659.7		449.0		302.1		49.7		14.1
Reserve developments on reins. business sold							305.4		32.1
Total insurance benefits	3,805.0		3,557.2		3,409.7		2,859.5		2,428.5
Underwriting, acquisition, insurance and other expenses:
Commissions	961.0		919.1		860.3		579.4		576.1
Other volume related expenses	197.1		253.8		184.8		256.8		328.4
Operating and administrative expenses	1,165.3		1,208.4		1,114.5		928.0		894.4
Restructuring charges	27.4		104.9		38.0		(2.2	)	53.8
Loss on early retirement of subordinated debt									5.6
Taxes, licenses and fees	77.9		107.5		122.9		106.8		107.4
Par policyholder interests	3.3		1.1
Foreign exchange	1.9		(2.9	)	(1.4	)	0.3		(0.0	)
Subtotal	2,433.8		2,592.0		2,319.1		1,869.0		1,965.8
Deferral of acquisition costs					(714.1	)	(627.3	)	(658.7	)
DAC amortization					367.8		346.7		323.1
DAC deferral net of amortization	(314.6	)	(427.5	)	(346.3	)	(280.6	)	(335.7	)
PVIF amortization	102.5		132.6		113.1		136.5		80.2
Other intangibles amortization	18.0		17.7		12.1		8.2		7.9
Total underwriting, acquisition, insurance and other expenses	2,239.7		2,314.9		2,098.0		1,733.2		1,718.3
Goodwill amortization	49.2		45.1		43.4
Interest	133.7		139.5		121.0		96.6		89.5
Total Benefits and Expenses	6,227.6		6,056.7		5,672.1		4,689.3		4,236.3
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	576.1		790.5		705.9		(53.8	)	1047.6
Federal income taxes	115.7		205.2		144.7		(102.6	)	280.4
Income Before Cumulative Effect of Accounting Change	460.4		585.3		561.2		48.8		767.2
Cumulative effect of accounting change					(15.6	)			(255.2	)
Net Income	460.4		585.3		545.7		48.8		511.9
Less:
Restructuring charges	(18.9	)	(80.2	)	(24.7	)	2.0		(35.0	)
Realized gains (losses) on investments	3.8		(17.5	)	(68.7	)	(177.2	)	(11.0	)
Gains (losses) on derivatives					(4.9	)	0.8		(1.6	)
Net gain (loss) on reinsurance derivative/trading account securities									2.7
Reserve development on business sold through reinsurance/ amortization of deferred gain							(199.1	)	(18.5	)
Gain on sale of subsidiaries					15.0		(9.4	)
Loss on early retirement of subordinated debt									(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities									241.5
Cumulative effect of accounting change					(15.6	)			(255.2	)
Income from Operations	475.5		683.0		644.4		431.6		592.8
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year					3,070.5		2,885.3		2,970.9
Deferral					714.1		627.3		658.7
Amortization					(367.8	)	(346.7	)	(323.1	)
Included in Total Benefits and Expenses					346.3		280.6		335.7
Adjustment related to realized (gains) losses on available-for-sale securities					112.9		115.0		(50.2	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(187.2	)	(338.6	)	(126.1	)
Foreign currency translation adjustment					(16.0	)	56.9		62.0
Disposition of business					(425.9	)
Other					(15.3	)	(28.4	)
Balance at end-of-year					2,885.3		2,970.9		3,192.3
Roll Forward of Present Value of In-Force
Balance at beginning-of-year					1,483.3		1,362.5		1,250.1
Amortization					(113.1	)	(136.5	)	(80.2	)
Foreign currency translation adjustment					(7.0	)	24.1		26.6
Other					(0.7	)
Balance at end-of-year					1,362.5		1,250.1		1,196.5

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 9

Statement of Consolidated Income

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Revenue
Life and annuity premiums	270.7		74.7		68.7		71.6		80.7		65.3		65.9		69.1		76.6
Surrender charges	27.7		20.2		21.3		22.8		23.5		18.9		21.3		21.5		23.0
Mortality assessments	132.6		130.4		130.5		134.1		135.3		138.9		135.6		137.9		138.1
Expense assessments	205.9		203.9		208.0		193.2		187.6		177.1		190.9		198.5		215.9
Health premiums	36.1		2.4		8.3		(9.6	)	19.1		3.0		0.1		0.4		0.5
Investment advisory fees	50.9		48.0		47.8		42.9		44.7		44.2		49.4		53.2		58.3
Amortization of deferred gain	20.4		24.2		22.0		22.1		6.9		18.4		18.2		18.3		17.4
Amortization of deferred gain-reserve development							(1.4	)	0.5		(0.2	)	(0.2	)	3.7		0.3
Other revenue and fees	87.9		70.8		75.1		72.1		81.5		70.6		74.5		82.9		81.7
Net investment income	653.1		654.8		657.4		652.4		667.3		654.6		660.2		664.4		659.2
Earnings in unconsolidated affiliates	4.3				(0.6	)
Realized gains (losses) on investments	(16.8	)	(103.5	)	(81.5	)	(37.1	)	(58.9	)	(89.6	)	(1.7	)	9.8		64.8
Gains (losses) on derivatives	(8.9	)	0.1		0.4		0.3		0.3		(1.9	)	(1.0	)	9.1		(8.8	)
Gain (loss) on reinsurance derivative/trading account securities																	4.1
Mark-to-market adjustment on reclassification from AFS to trading account securities																	371.5
Total Revenue	1,463.8		1,126.0		1,157.5		1,163.4		1,188.6		1,099.3		1,213.2		1,268.8		1,702.6
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	302.8		176.1		191.5		229.7		214.0		187.1		155.1		227.1		114.5
Div accum & div to policyholders	26.6		17.8		18.2		17.2		22.8		14.4		17.6		15.9		33.8
Interest credited to policy bal.	390.6		406.2		382.5		417.4		411.1		409.3		406.3		405.6		395.7
Health policy benefits	25.0		3.3		33.9		7.3		5.1		2.3		14.2		(41.5	)	39.1
Reserve developments on reins. business sold					22.2		270.0		13.2						32.1
Total insurance benefits	744.9		603.4		648.3		941.6		666.2		613.0		593.2		639.2		583.1
Underwriting, acquisition, insurance and other expenses:
Commissions	217.9		144.2		148.6		124.6		162.0		125.7		132.9		144.1		173.5
Other volume related expenses	29.1		54.7		65.5		63.9		72.6		71.5		65.4		90.5		101.0
Operating and administrative expenses	314.9		220.7		219.4		228.1		259.7		217.8		235.5		209.8		231.4
Restructuring charges	31.0				1.6		(2.1	)	(1.7	)	5.5		13.5		19.8		15.0
Loss on early retirement of subordinated debt															5.6
Taxes, licenses and fees	28.4		36.6		23.5		24.1		22.6		30.6		23.1		26.4		27.3
Par policyholder interests
Foreign exchange	1.1		0.0		0.6		0.4		(0.6	)	(0.0	)
Subtotal	622.4		456.2		459.2		439.1		514.6		451.2		470.3		496.2		548.1
Deferral of acquisition costs	(194.5	)	(147.9	)	(156.1	)	(155.5	)	(167.8	)	(148.5	)	(140.6	)	(165.7	)	(204.0	)
DAC amortization	56.8		70.4		100.5		113.0		62.8		100.1		64.0		67.9		91.0
DAC deferral net of amortization	(137.7	)	(77.5	)	(55.5	)	(42.5	)	(105.0	)	(48.4	)	(76.5	)	(97.8	)	(112.9	)
PVIF amortization	21.8		21.3		31.9		40.2		43.0		22.7		13.6		29.6		14.4
Other intangibles amortization	2.5		2.2		2.0		2.0		2.0		2.0		2.0		2.0		2.0
Total underwriting, acquisition, insurance and other expenses	509.0		402.2		437.6		438.8		454.5		427.5		409.3		430.0		451.5
Goodwill amortization	10.7
Interest	25.0		24.8		24.6		23.7		23.5		23.3		23.0		21.0		22.2
Total Benefits and Expenses	1,289.7		1,030.4		1,110.5		1,404.1		1,144.2		1,063.9		1,025.5		1,090.2		1,056.8
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	174.2		95.5		46.9		(240.7	)	44.4		35.4		187.7		178.7		645.7
Federal income taxes	17.3		9.9		(1.6	)	(104.3	)	(6.6	)	(6.1	)	45.0		45.4		196.2
Income Before Cumulative Effect of Accounting Change	156.9		85.6		48.5		(136.4	)	51.0		41.6		142.7		133.3		449.6
Cumulative effect of accounting change																	(255.2	)
Net Income	156.9		85.6		48.5		(136.4	)	51.0		41.6		142.7		133.3		194.3
Less:
Restructuring charges	(20.2	)			(1.0	)	1.3		1.7		(3.6	)	(8.8	)	(12.9	)	(9.8	)
Realized gains (losses) on investments	(20.0	)	(67.6	)	(52.7	)	(23.6	)	(33.3	)	(58.2	)	(1.1	)	6.4		42.0
Gains (losses) on derivatives	(4.6	)	0.1		0.3		0.1		0.2		(1.2	)	(0.6	)	5.9		(5.7	)
Net gain on Reinsurance derivative/trading account securities																	2.7
Reserve development on business sold through reinsurance/ amortization of deferred gain					(14.4	)	(176.4	)	(8.2	)	(0.1	)	(0.1	)	(18.5	)	0.2
Gain on sale of subsidiaries	15.0								(9.4	)
Loss on early retirement of subordinated debt															(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities																	241.5
Cumulative effect - reins. embedded derivative acctg.																	(255.2	)
Income from Operations	186.7		153.1		116.4		62.1		100.0		104.8		153.3		156.0		178.7
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period	3,087.2		2,885.3		3,114.9		3,056.6		2,868.7		2,970.9		2,919.0		2,697.1		2,919.4
Deferral	194.5		147.9		156.1		155.5		167.8		148.5		140.6		165.7		204.0
Amortization	(56.8	)	(70.4	)	(100.5	)	(113.0	)	(62.8	)	(100.1	)	(64.0	)	(67.9	)	(91.0	)
Included in Total Benefits and Expenses	137.7		77.5		55.5		42.5		105.0		48.4		76.5		97.8		112.9
Adjustment related to realized (gains) losses on available-for-sale securities	49.5		41.9		32.5		22.9		17.8		30.0		8.3		(60.6	)	(27.9	)
Adjustment related to unrealized (gains) losses on available-for-sale securities	68.1		114.9		(152.1	)	(267.1	)	(34.2	)	(119.4	)	(334.0	)	182.2		145.2
Foreign currency translation adjustment	(7.2	)	(12.2	)	41.7		13.8		13.7		(10.9	)	27.2		2.8		42.8
Disposition of business	(425.9	)
Other	(24.2	)	7.5		(35.7	)
Balance at end-of-period	2,885.3		3,114.9		3,056.6		2,868.7		2,970.9		2,919.0		2,697.1		2,919.4		3,192.3
Roll Forward of Present Value of In-Force
Balance at beginning-of-period	1,387.4		1,362.5		1,336.1		1,321.4		1,286.9		1,250.1		1,223.1		1,220.8		1,192.5
Amortization	(21.8	)	(21.3	)	(31.9	)	(40.2	)	(43.0	)	(22.7	)	(13.6	)	(29.6	)	(14.4	)
Foreign currency translation adjustment	(3.2	)	(5.1	)	17.4		5.7		6.1		(4.3	)	11.2		1.3		18.4
Other					(0.1	)			0.1
Balance at end-of-period	1,362.5		1,336.1		1,321.4		1,286.9		1,250.1		1,223.1		1,220.8		1,192.5		1,196.5

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 10

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement				Life Insurance				Investment Management		Lincoln UK
	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003	Dec 2002	Dec 2003	Dec 2002
ASSETS
Investments
Corporate bonds	13,111.1		12,928.9		8,365.3		7,879.1		518.1	494.5	697.8	621.0
U.S. government bonds	51.8		41.1		68.8		87.0		0.0	0.1	20.0
Foreign government bonds	275.9		259.2		158.1		136.5		4.0	1.5	342.1	307.5
Asset/mortgage backed securities	3,168.4		3,243.5		1,390.6		937.0		65.3	47.2
State and municipal bonds	89.2		67.8		50.0		30.4		1.2
Preferred stocks-redeemable	35.4		55.6		24.0		12.5			8.9
Common stocks	—		0.1		0.0		1.5				50.2	128.9
Preferred stocks-equity	43.4		33.6		14.3				2.8	2.7
Total AFS Securities	16,775.3		16,629.8		10,071.2		9,084.0		591.5	554.9	1,110.1	1,057.5
Trading Securities	1,195.9
Mortgage loans	2,201.7		2,210.3		1,577.0		1,572.6		75.0	81.2	0.3	0.3
Real estate											0.2	0.2
Policy loans	446.4		469.5		1,471.5		1,468.2				6.6	7.9
Other long-term investments	33.4		27.9		14.9		23.7
Total Investments	20,652.6		19,337.5		13,134.6		12,148.5		666.5	636.1	1,117.2	1,066.0
Allocated investments	3,577.8		3,757.4		1,223.4		1,250.7		102.8	100.0
Notes receivable from LNC	271.3		358.8		202.6		207.7		45.5	51.7
Cash and invested cash	(120.2	)	(76.7	)	(25.4	)	(22.7	)	89.1	52.9	160.2	206.7
Property and equipment	7.5		1.5		2.8		7.7		38.2	44.7	19.5	19.0
Premium and fees receivable	9.8		0.7		33.2		32.0		51.3	37.0
Accrued investment income	243.9		256.7		174.0		171.7		8.5	9.0	21.6	22.2
Assets held in separate accounts	34,459.0		26,934.1		1,795.8		1,310.4				6,390.3	5,077.9
Federal income tax recoverable
Amount recoverable from reinsurers	1,348.6		1,169.7		1026.8		920.5
Deferred acquisition costs	899.9		855.8		1,578.3		1,424.5				620.7	597.6
Other intangible assets									33.9	41.8
Present value of in-force	113.2		122.7		808.6		890.1				274.7	237.4
Goodwill	64.1		64.1		855.1		855.1		300.7	300.7	14.8	13.3
Other	130.6		114.1		429.9		395.6		224.5	187.4	65.7	87.0
Total Assets	61,657.9		52,896.4		21,239.8		19,591.6		1,561.1	1,461.4	8,684.7	7,327.1

	Corporate and Other Operations				Consolidating Adjustments				Consolidated
	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003	Dec 2002
ASSETS
Investments
Corporate bonds	3,176.2		4,011.1						25,868.5	25,934.7
U.S. government bonds	85.2		385.4						225.8	513.6
Foreign government bonds	414.5		405.6						1,194.6	1,110.2
Asset/mortgage backed securities	571.4		787.8						5,195.6	5,015.5
State and municipal bonds	12.3		16.2						152.8	114.4
Preferred stocks-redeemable	72.7		2.1						132.2	79.0
Common stocks	48.1		97.4						98.4	228.0
Preferred stocks-equity	40.1		72.9						100.7	109.2
Total AFS Securities	4,420.5		5,778.5						32,968.6	33,104.7
Trading securities	1,924.3								3,120.1
Mortgage loans	341.0		341.0						4,195.0	4,205.5
Real estate	112.7		279.5						112.9	279.7
Policy loans									1,924.4	1,945.6
Other long-term investments	408.5		412.8						456.7	464.4
Total Investments	7,206.9		6,811.9		(0.0	)	(0.0	)	42,777.6	39,999.9
Allocated investments	153.9		(468.2	)	(5,058.0	)	(4,639.9	)	0.0	(0.0	)
Notes receivable from LNC	(382.7	)	(617.6	)	(136.6	)	(0.5	)	0.0	0.0
Cash and invested cash	1,607.5		1,530.4						1,711.2	1,690.5
Property and equipment	167.2		169.3						235.2	242.1
Premium and fees receivable	257.8		143.2						352.1	212.9
Accrued investment income	74.7		77.0						522.7	536.7
Assets held in separate accounts					3,920.0		2,856.0		46,565.2	36,178.3
Federal income tax recoverable					45.9		317.7		45.9	317.7
Amount recoverable from reinsurers	5,712.7		5,450.1		(248.9	)	(260.3	)	7,839.2	7,280.0
Deferred acquisition costs	1.8		2.2		91.8		90.8		3,192.3	2,970.9
Other intangible assets									33.9	41.8
Present value of in-force									1,196.5	1,250.1
Goodwill	(0.0	)	(0.0	)					1,234.7	1,233.2
Other	290.5		853.2		(102.9	)	(407.0	)	1,038.3	1,230.3
Total Assets	15,090.1		13,951.4		(1,488.7	)	(2,043.4	)	106,744.9	93,184.6

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 11

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement		Life Insurance				Investment Management				Lincoln UK
	Dec 2003	Dec 2002	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	2,598.1	2,718.5	14,690.4		13,780.9						1,400.3		1,336.2
Health reserves			0.3		0.3						49.2		48.5
Unpaid claims - life and health	50.8	48.3	112.0		108.3						49.3		44.7
Unearned premiums			0.0		0.0
Premium deposit funds	21,050.4	19,921.6	18.4		18.3						29.5		30.8
Participating policyholders’ funds			155.1		156.7
Other policyholders’ funds			673.0		603.5
Liability related to separate accounts	34,459.0	26,934.1	1,795.8		1,310.4						6,390.3		5,077.9
Total Insurance and Inv Contract Liabilities	58,158.3	49,622.4	17,445.1		15,978.4						7,918.6		6,538.1
Federal income taxes	346.6	218.6	167.3		95.7		28.1		29.8		19.0		(7.3	)
Short-term debt
Long-term debt
Junior subordinated debentures issued to affiliated trusts
Notes payable to LNC	1.0	0.2	8.5
Embedded derivative - modco	85.2		(0.3	)
Other liabilities	159.3	94.5	487.2		443.9		904.3		835.7		183.2		201.3
Deferred gain on indemnity reinsurance
Total Liabilities	58,750.4	49,935.7	18,107.8		16,518.0		932.3		865.4		8,120.9		6,732.1
Net unrealized gains (losses) on securities	465.6	309.8	235.1		178.0		2.9		6.4		26.8		25.8
Gains (losses) on derivatives	8.2	10.6	12.1		16.7
Foreign currency translation adjustment	—	—	—		—		1.0		(0.4	)	90.1		33.7
Other shareholders’ equity	2,433.7	2,640.3	2,884.7		2,879.6		624.8		592.6		492.7		568.6
Minimum pension liability adjustment					(0.7	)	(0.0	)	(2.6	)	(45.8	)	(33.0	)
Shareholders’ Equity	2,907.5	2,960.7	3,131.9		3,073.6		628.7		596.0		563.8		595.1
Total Liabilities and S/Hs’ Equity	61,657.9	52,896.4	21,239.8		19,591.6		1,561.1		1,461.4		8,684.7		7,327.1

	Corporate and Other Operations				Consolidating Adjustments				Consolidated
	Dec 2003		Dec 2002		Dec 2003		Dec 2002		Dec 2003		Dec 2002
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	2,123.4		2,209.4		(93.9	)	(94.7	)	20,718.3		19,950.3
Health reserves	2,782.0		2,640.2						2,831.5		2,689.0
Unpaid claims - life and health	848.9		577.1		(2.6	)			1,058.4		778.4
Unearned premiums	104.5		141.2						104.5		141.2
Premium deposit funds	133.7		40.1		537.4		508.1		21,769.3		20,518.8
Participating policyholders’ funds									155.1		156.7
Other policyholders’ funds	7.9		7.4						680.9		610.9
Liability related to separate accounts					3,920.0		2,856.0		46,565.2		36,178.3
Total Insurance and Inv Contract Liabilities	6,000.2		5,615.4		4,360.9		3,269.4		93,883.2		81,023.6
Federal income taxes	(607.6	)	(655.3	)	46.7		318.5
Short-term debt	44.4		153.0		(0.4	)			44.0		153.0
Long-term debt	1,117.5		1,119.2						1,117.5		1,119.2
Junior subordinated debentures issued to affiliated trusts	341.3		392.7						341.3		392.7
Notes payable to LNC	126.8		308.7		(136.2	)	(308.9	)	(0.0	)	(0.0	)
Embedded derivative - modco	267.3		—						352.3		—
Other liabilities	2,636.9		3,277.6		(700.9	)	(681.5	)	4,270.1		4,171.5
Deferred gain on indemnity reinsurance	924.8		977.1						924.8		977.1
Total Liabilities	11,451.7		11,188.6		3,570.1		2,597.4		100,933.2		87,837.2
Net unrealized gains (losses) on securities	57.5		228.2		5.2		5.2		793.1		753.3
Gains (losses) on derivatives	1.8		1.0						22.1		28.3
Foreign currency translation adjustment	10.4		10.0		7.5		7.5		109.0		50.8
Other shareholders’ equity	3,578.0		2,585.2		(5,071.5	)	(4,653.4	)	4,942.6		4,612.9
Minimum pension liability adjustment	(9.3	)	(61.6	)					(55.1	)	(97.8	)
Shareholders’ Equity	3,638.4		2,762.9		(5,058.8	)	(4,640.7	)	5,811.6		5,347.5
Total Liabilities and S/Hs’ Equity	15,090.1		13,951.4		(1,488.7	)	(2,043.4	)	106,744.9		93,184.6

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 12

Five Year Comparative Balance Sheet

Unaudited [Millions of Dollars except Common Share Data]

	1999			2000		2001			2002			2003
ASSETS
Investments
Corporate bonds		21,119.5			21,249.7		23,105.1			25,934.7			25,868.5
U.S. government bonds		538.3			542.9		410.5			513.6			225.8
Foreign government bonds		1,447.5			1,321.1		1,174.7			1,110.2			1,194.6
Mortgage backed securities		4,404.0			4,160.4		3,524.7			5,015.5			5,195.6
State and municipal bonds		14.7			14.6		44.7			114.4			152.8
Preferred stocks-redeemable		164.7			161.2		85.9			79.0			132.2
Common stocks		514.5			436.6		319.3			228.0			98.4
Preferred stocks-equity		89.5			113.1		151.2			109.2			100.7
Total AFS Securities		28,292.6			27,999.5		28,816.1			33,104.7			32,968.6
Trading securities													3,120.1
Mortgage loans		4,735.4			4,663.0		4,535.5			4,205.5			4,195.0
Real estate		256.2			282.0		267.9			279.7			112.9
Policy loans		1,892.4			1,960.9		1,939.7			1,945.6			1,924.4
Other long-term investments		401.8			463.3		553.8			464.4			456.7
Total Investments		35,578.4			35,368.6		36,113.1			39,999.9			42,777.6
Invest in unconsol affiliates		25.8			6.4		8.1
Cash and invested cash		1,895.9			1,927.4		3,095.5			1,690.5			1,711.2
Property and equipment		203.8			228.2		257.5			242.1			235.2
Premiums and fees receivable		259.6			296.7		400.1			212.9			352.1
Accrued investment income		533.2			546.4		563.5			536.7			522.7
Assets held in separate accounts		53,654.2			50,579.9		44,833.4			36,178.3			46,565.2
Federal income taxes recoverable		345.0			234.1		55.5			317.7			45.9
Amounts recoverable from reinsurers		3,954.3			3,747.7		6,030.4			7,280.0			7,839.2
Deferred acquisition costs		2,800.3			3,070.5		2,885.3			2,970.9			3,192.3
Other intangible assets		92.3			73.7		50.1			41.8			33.9
Present value of in-force		1,654.2			1,483.3		1,362.5			1,250.1			1,196.5
Goodwill		1,423.0			1,286.0		1,211.8			1,233.2			1,234.7
Other		675.7			1,021.6		1,174.9			1,230.3			1,038.3
Total Assets		103,095.7			99,870.6		98,041.6			93,184.6			106,744.9
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Investment Contract Liabilities:
Life and annuity reserves		17,071.4			17,841.2		17,917.0			19,950.3			20,718.3
Health reserves		2,507.8			2,523.8		2,537.9			2,689.0			2,831.5
Unpaid claims-life and health		1,269.8			1,316.6		1,087.5			778.4			1,058.4
Unearned premiums		75.8			46.5		66.9			141.2			104.5
Premium deposit funds		19,624.1			17,715.5		18,585.0			20,518.8			21,769.3
Participating policyholders’ funds		132.0			139.4		100.2			156.7			155.1
Other policyholders’ funds		472.6			522.2		562.7			610.9			680.9
Liability related to separate accounts		53,654.2			50,579.9		44,833.4			36,178.3			46,565.2
Total Ins and Inv Contr Liabilities		94,807.7			90,685.1		85,690.6			81,023.6			93,883.2
Federal income taxes
Short-term debt		460.2			312.9		350.2			153.0			44.0
Long-term debt		712.0			712.2		861.8			1,119.2			1,117.5
Junior subordinated debentures issued to affiliated trusts		745.0			745.0		474.7			392.7			341.3
Embedded derivative - modco													352.3
Other liabilities		2,107.0			2,434.7		4,216.1			4,171.5			4,270.1
Deferred gain on indemnity reinsurance							1144.5			977.1			924.8
Total Liabilities		98,831.9			94,890.0		92,737.8			87,837.2			100,933.2
Unrealized gains (losses)-cont op.		(465.7	)		12.0		199.6			781.6			815.1
Foreign currency		30.1			22.0		(8.0	)		50.8			109.0
Minimum pension liability adjustment							(36.0	)		(97.8	)		(55.1	)
S/Hs’ equity-other		4,699.5			4,946.6		5,130.6			4,612.9			4,942.6
Cumulative effect of accounting change							17.6
Total Shareholders’ Equity		4,263.9			4,980.6		5,303.8			5,347.5			5,811.6
Total Liabilities and Shareholders’ Equity		103,095.7			99,870.6		98,041.6			93,184.6			106,744.9
Shareholders’ Equity Per Share
Book Value, Excluding AOCI	$	23.98		$	25.88	$	27.39		$	25.97		$	27.69
Common shares outstanding (in millions)		196.0			191.2		187.3			177.6			178.5

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 13

Quarterly Balance Sheet

Unaudited [Millions of Dollars, except Common Share Data]

	Dec 2001			Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003
ASSETS
Investments
Corporate bonds		23,105.1			23,470.4			23,993.6			25,484.6			25,934.7			26,936.1			28,419.3			28,286.3			25,868.5
U.S. government bonds		410.5			429.1			441.6			495.3			513.6			537.0			561.9			522.5			225.8
Foreign government bonds		1,174.7			1,180.1			1,120.1			1,038.6			1,110.2			1,206.6			1,349.4			1,352.9			1,194.6
Mortgage backed securities		3,524.7			3,613.9			4,031.0			4,843.7			5,015.5			4,960.1			4,754.9			4,992.7			5,195.6
State and municipal bonds		44.7			62.6			58.8			97.8			114.4			134.9			150.4			164.0			152.8
Preferred stocks - redeemable		85.9			84.6			79.6			76.8			79.0			112.0			118.5			65.6			132.2
Common stocks		319.3			284.4			267.7			237.2			228.0			145.0			146.6			131.8			98.4
Preferred stocks-equity		151.2			154.2			151.8			160.3			109.2			104.5			110.7			111.2			100.7
Total AFS Securities		28,816.1			29,279.2			30,144.1			32,434.3			33,104.7			34,136.2			35,611.8			35,626.9			32,968.6
Trading securities																										3,120.1
Mortgage loans		4,535.5			4,448.2			4,395.4			4,285.2			4,205.5			4,235.5			4,314.3			4,151.5			4,195.0
Real estate		267.9			258.2			258.7			286.4			279.7			242.0			240.3			249.8			112.9
Policy loans		1,939.7			1,918.0			1,906.1			1,899.0			1,945.6			1,928.8			1,919.6			1,910.5			1,924.4
Other long-term investments		553.8			459.6			456.0			457.7			464.4			465.7			505.6			484.7			456.7
Total Investments		36,113.1			36,363.1			37,160.1			39,362.6			39,999.9			41,008.4			42,591.6			42,423.3			42,777.6
Invest in unconsol affiliates		8.1			8.1			7.5
Cash and invested cash		3,095.5			1,699.5			2,265.4			1,599.9			1,690.5			1,635.5			1,945.8			1,960.6			1,574.6
Property and equipment		257.5			266.4			253.5			252.7			242.1			239.4			239.1			237.3			235.2
Premiums and fees receivable		400.1			376.3			461.4			577.2			212.9			194.0			396.0			306.5			352.1
Accrued investment income		563.5			577.1			556.3			568.2			536.7			567.2			555.1			560.2			522.7
Assets held in separate accounts		44,833.4			44,916.7			40,579.6			34,069.0			36,178.3			34,775.2			39,942.8			41,283.4			46,565.2
Federal income taxes recoverable		55.5			593.4			483.4			340.7			317.7			89.1									45.9
Amount recoverable from reinsurers		6,030.4			6,096.3			6,509.9			7,094.5			7,280.0			7,323.5			7,377.1			7,537.9			7,839.2
Deferred acquisition costs		2,885.3			3,114.9			3,056.6			2,868.7			2,970.9			2,919.0			2,697.1			2,919.4			3,192.3
Other intangible assets		50.1			47.9			45.8			43.8			41.8			39.8			37.9			35.9			33.9
Present value of in-force		1,362.5			1,336.1			1,321.4			1,286.9			1,250.1			1,223.1			1,220.8			1,192.5			1,196.5
Goodwill		1,211.8			1,211.5			1,212.4			1,232.7			1,233.2			1,233.0			1,233.6			1,233.7			1,234.7
Other		1,174.9			1,280.9			1,200.6			1,187.1			1,230.3			1,250.6			1,295.9			1,134.9			1,174.9
Total Assets		98,041.6			97,888.5			95,114.2			90,483.9			93,184.6			92,497.6			99,532.8			100,825.5			106,744.9
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves		17,917.0			18,014.6			18,611.2			19,142.5			19,950.3			20,025.6			20,194.5			20,459.2			20,718.3
Health reserves		2,537.9			2,492.4			2,176.1			2,448.3			2,689.0			2,689.9			2,703.3			2,657.9			2,831.5
Unpaid claims - life and health		1,087.5			1,153.6			1,086.1			1,100.9			778.4			763.1			997.1			1,041.2			1,058.4
Unearned premiums		66.9			66.5			154.3			185.8			141.2			141.1			24.0			26.9			104.5
Premium deposit funds		18,585.0			18,669.6			19,157.8			20,054.4			20,518.8			21,070.5			21,437.7			21,680.2			21,769.3
Participating policyholders’ funds		100.2			98.6			91.9			90.5			156.7			166.3			193.8			179.2			155.1
Other policyholders’ funds		562.7			571.9			584.7			595.7			610.9			607.1			621.8			671.5			680.9
Liab related to separate accounts		44,833.4			44,916.7			40,579.6			34,069.0			36,178.3			34,775.2			39,942.8			41,283.4			46,565.2
Total Ins and Inv Contr Liabilities		85,690.6			85,983.9			82,441.8			77,687.1			81,023.6			80,238.8			86,115.0			87,999.6			93,883.2
Federal income taxes																				72.0			37.1
Short-term debt		350.2			510.2			211.0			120.0			153.0			125.4			83.4			76.5			44.0
Long-term debt		861.8			861.8			1,112.3			1,118.1			1,119.2			1,118.6			1,121.4			1,118.5			1,117.5
Junior subordinated debentures issued to affiliated trusts		474.7			376.2			380.0			390.6			392.7			390.8			397.1			333.6			341.3
Notes payable to LNC					(0.0	)		0.0			(0.0	)		(0.0	)		0.2			(0.0	)		0.0			(0.0	)
Embedded derivative - modco																										352.3
Funds withheld																										1,925.3
Other liabilities		4,216.1			3,864.6			4,501.1			4,661.9			4,171.5			4,214.8			4,989.0			4,724.8			2,344.8
Deferred gain on indemnity reinsurance		1144.5			1118.6			1,115.2			1,069.5			977.1			959.0			938.9			949.0			924.8
Total Liabilities		92,737.8			92,715.3			89,761.4			85,047.1			87,837.2			87,047.6			93,716.9			95,239.1			100,933.2
Unrealized gns (losses)-inv.		195.7			31.8			325.7			817.5			753.3			872.0			1,117.8			804.5			793.1
Gains (losses)-derivatives*		3.9			22.6			22.7			27.3			28.3			25.0			28.8			23.2			22.1
Foreign currency		(8.0	)		(20.8	)		22.0			35.4			50.8			39.8			68.4			67.0			109.0
Minimum pension liability adj		(36.0	)		(35.2	)		(37.8	)		(35.2	)		(97.8	)		(97.2	)		(98.8	)		(99.0	)		(55.1	)
S/Hs’ equity-other		5,130.6			5,174.7			5,020.3			4,591.8			4,612.9			4,610.5			4,699.8			4,790.6			4,942.6
Cumulative effect of accounting change		17.6
Total Shareholders’ Equity		5,303.8			5,173.2			5,352.8			5,436.8			5,347.5			5,450.0			5,815.9			5,586.4			5,811.6
Total Liabilities and Shareholders’ Equity		98,041.6			97,888.5			95,114.2			90,483.9			93,184.6			92,497.6			99,532.8			100,825.5			106,744.9
Shareholders’ Equity Per Share
Book Value, Excluding AOCI	$	27.39		$	27.54		$	27.21		$	25.87		$	25.97		$	25.94		$	26.41		$	26.87		$	27.69
Common shares outstanding (in millions)		187.3			187.9			184.5			177.5			177.6			177.7			178.0			178.3			178.5

* Cumulative effect of accounting change recorded upon the adoption of FAS 133 in the 1st quarter of 2001 is a component of gains (losses) on derivatives in the 1st quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 14

Lincoln Retirement

Income Statements & Operational Data

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Premiums	65.2		64.3		77.5		47.4		21.9
Surrender charges	37.9		41.8		31.2		31.2		28.9
Expense assessments	501.3		591.3		508.6		446.2		441.9
Other revenue and fees	14.5		11.0		16.7		3.3		8.7
Net investment income	1,509.1		1,430.5		1,399.1		1,457.5		1,483.7
Realized gains (losses) on investments	(12.1	)	(5.2	)	(64.5	)	(196.6	)	(12.5	)
Gains (losses) on derivatives					(0.3	)	(1.2	)	(6.6	)
Gain (loss) on reinsurance derivative/trading account securities									2.8
Mark-to-market adjustment on reclassification from AFS to trading account securities									86.0
Total Revenue	2,115.8		2,133.7		1,968.3		1,787.7		2,054.7
Operating Benefits and Expenses
Benefits paid or provided:
Benefits	259.1		254.7		263.9		314.1		181.5
Interest credited to policy bal.	925.2		866.1		863.8		903.8		867.7
Total insurance benefits	1,184.3		1,120.8		1,127.7		1,217.9		1,049.2
Underwriting, acquisition, insurance and other expenses
Commissions	341.4		326.8		336.3		320.8		318.5
Other volume related expenses	42.8		52.0		49.7		64.6		67.5
Operating and administrative expenses	208.6		206.6		231.8		231.3		226.2
Restructuring charges					2.0		1.6		20.1
Taxes, licenses and fees	0.3		9.3		13.7		11.5		17.7
Subtotal	593.2		594.8		633.6		629.8		650.0
Deferral of acquisition costs					(240.9	)	(243.9	)	(242.5	)
DAC amortization					125.5		157.7		125.5
DAC deferral net of amortization	(47.7	)	(37.5	)	(115.4	)	(86.2	)	(117.0	)
PVIF amortization	15.3		24.2		14.7		31.8		9.5
Total underwriting, acquisition, insurance and other expenses	560.8		581.5		532.8		575.4		542.5
Goodwill amortization	2.0		(0.6	)	1.2
Total Benefits and Expenses	1,747.1		1,701.7		1,661.8		1,793.3		1,591.7
Income Before Federal Income Tax and Cumulative Effect of Accounting Changes	368.7		432.0		306.5		(5.6	)	463.0
Federal income taxes	77.2		77.3		34.1		(59.3	)	98.9
Income Before Cumulative Effect of Accounting Changes	291.5		354.7		272.4		53.7		364.1
Cumulative effect of accounting changes					(7.3	)			(63.6	)
Net Income	291.5		354.7		265.1		53.7		300.5
Less:
Restructuring charges					(1.3	)	(1.0	)	(13.1	)
Realized gains (losses) on investments	(7.9	)	(3.4	)	(42.3	)	(127.8	)	(8.2	)
Gains (losses) on derivatives					(0.2	)	(0.8	)	(4.3	)
Net gain (loss) on reinsurance derivative/trading account securities									1.8
Mark-to-market adjustment on reclassification from AFS to trading account securities									55.9
Cumulative effect of accounting changes					(7.3	)			(63.6	)
Income from Operations	299.4		358.1		316.2		183.4		331.9
Effective tax rate on Income from Operations	21.4	%	18.1	%	15.3	%	5.4	%	19.7	%
Revenue	2,115.8		2,133.7		1,968.3		1,787.7		2,054.7
Less:
Realized gains (losses) on investments	(12.1	)	(5.2	)	(64.5	)	(196.6	)	(12.5	)
Gains (losses) on derivatives					(0.3	)	(1.2	)	(6.6	)
Gain (loss) on reinsurance derivative/trading account securities									2.8
Mark-to-market adjustment on reclassification from AFS to trading account securities									86.0
Operating Revenue	2,128.0		2,138.9		2,033.1		1,985.5		1,985.1
Average capital	1,562.0		1,602.9		1,831.4		2,339.6		2,400.3
Net Income return on average capital	18.7	%	22.1	%	14.5	%	2.3	%	12.5	%
Income from operations return on average capital	19.2	%	22.3	%	17.3	%	7.8	%	13.8	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period					812.5		912.8		855.8
Deferral					240.9		243.9		242.5
Amortization					(125.5	)	(157.7	)	(125.5	)
Included in Total Benefits and Expenses					115.4		86.2		117.0
Adjustment related to realized (gains) losses on available-for-sale securities					68.2		73.0		(18.7	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(90.0	)	(201.4	)	(54.2	)
Other*					6.7		(14.8	)	—
Balance at end-of-period					912.8		855.8		899.9
Roll Forward of Present Value of In-Force
Balance at beginning-of-period					169.2		154.5		122.7
Amortization					(14.7	)	(31.8	)	(9.5	)
Balance at end-of-period					154.5		122.7		113.2

* Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 15

Lincoln Retirement

Income Statements & Operational Data

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Revenue
Premiums	12.7		12.2		13.1		13.4		8.7		5.5		3.0		7.8		5.6
Surrender charges	7.2		7.9		7.2		8.7		7.4		6.9		8.5		7.4		6.2
Expense assessments	119.7		121.0		120.7		103.9		100.6		97.6		104.3		115.2		124.8
Other revenue and fees	10.0		5.8		(1.3	)	(4.0	)	2.7		(1.4	)	1.3		8.3		0.5
Net investment income	349.1		356.6		359.1		363.5		378.3		367.0		369.8		377.4		369.5
Realized gains (losses) on investments	(31.3	)	(50.5	)	(56.2	)	(43.8	)	(46.1	)	(76.8	)	0.9		18.6		44.7
Gains (losses) on derivatives	0.2		0.0		(0.1	)	(1.1	)	(0.1	)	(1.0	)	(1.5	)	1.7		(5.8	)
Gain (loss) on reinsurance derivative/trading account securities																	2.8
Mark-to-market adjustment on reclassification from AFS to trading account securities																	86.0
Total Revenue	467.5		453.0		442.6		440.7		451.4		397.8		486.4		536.3		634.2
Benefits and Expenses
Benefits paid or provided:
Benefits	55.3		55.4		72.5		107.8		78.4		65.0		34.8		44.6		37.1
Interest credited to policy balances	227.5		226.1		221.8		224.2		231.7		220.1		217.1		216.5		214.0
Total insurance benefits	282.8		281.5		294.3		332.0		310.1		285.1		251.9		261.1		251.1
Underwriting, acquisition, insurance and other expenses:
Commissions	96.7		82.4		82.5		83.0		72.8		66.8		74.2		80.7		96.8
Other volume related expenses	13.1		10.0		16.9		19.6		18.1		14.0		14.7		16.1		22.8
Operating and administrative expenses	68.0		54.6		53.8		53.0		69.9		54.0		56.6		57.0		58.5
Restructuring charges					1.6								6.2		8.4		5.5
Taxes, licenses and fees	4.5		4.7		4.2		3.0		(0.5	)	5.7		4.3		3.7		4.0
Subtotal	182.3		151.8		159.0		158.6		160.4		140.4		156.0		166.0		187.6
Deferral of acquisition costs	(71.9	)	(61.7	)	(60.8	)	(66.0	)	(55.3	)	(47.8	)	(51.0	)	(63.6	)	(80.1	)
DAC amortization	20.9		32.7		48.3		47.1		29.6		31.0		28.5		33.6		32.5
DAC deferral net of amortization,	(51.0	)	(29.1	)	(12.6	)	(18.9	)	(25.7	)	(16.8	)	(22.6	)	(30.0	)	(47.6	)
PVIF amortization	1.4		3.8		3.9		4.1		20.0		2.3		2.1		3.3		1.8
Total underwriting, acquisition, insurance and other expenses	132.7		126.5		150.4		143.8		154.8		125.9		135.5		139.3		141.8
Goodwill amortization	0.3
Total Benefits and Expenses	415.8		408.0		444.7		475.8		464.8		411.0		387.4		400.3		392.9
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	51.8		45.1		(2.2	)	(35.1	)	(13.4	)	(13.3	)	99.0		135.9		241.4
Federal income taxes	(1.4	)	(1.5	)	(11.3	)	(28.0	)	(18.4	)	(20.1	)	17.3		33.9		67.9
Income Before Cumulative Effect of Accounting Change	53.1		46.6		9.2		(7.0	)	5.0		6.9		81.7		102.0		173.5
Cumulative effect of accounting change																	(63.6	)
Net Income	53.1		46.6		9.2		(7.0	)	5.0		6.9		81.7		102.0		109.9
Less:
Restructuring charges					(1.0	)							(4.0	)	(5.5	)	(3.6	)
Realized gains (losses) on investments	(20.7	)	(32.8	)	(36.6	)	(28.0	)	(30.4	)	(50.3	)	1.0		12.1		29.1
Gains (losses) on derivatives	0.1				0.1		(0.8	)	(0.0	)	(0.2	)	(1.4	)	1.1		(3.8	)
Net gain (loss) on reinsurance derivative/trading account securities																	1.8
Mark-to-market adjustment on reclassification from AFS to trading account securities																	55.9
Cumulative effect of accounting change																	(63.6	)
Income from Operations	73.7		79.4		46.8		21.8		35.4		57.4		86.1		94.3		94.1
Effective tax rate on Income from Operations	11.1	%	16.9	%	16.0	%	(121.8	%)	(8.1	%)	11.0	%	18.6	%	24.0	%	21.1	%
Revenue	467.5		453.0		442.6		440.7		451.4		397.8		486.4		536.3		634.2
Less:
Realized gains (losses) on investments	(31.3	)	(50.5	)	(56.2	)	(43.8	)	(46.1	)	(76.8	)	0.9		18.6		44.7
Gains (losses) on derivatives	0.2				(0.1	)	(1.1	)	(0.1	)	(1.0	)	(1.5	)	1.7		(5.8	)
Gain (loss) on reinsurance derivative/trading account securities																	2.8
Mark-to-market adjustment on reclassification from AFS to trading account securities																	86.0
Operating Revenue	498.7		503.5		498.8		485.6		497.6		475.5		487.0		516.0		506.6
Average capital	1,828.9		2,046.1		2,396.3		2,411.1		2,504.9		2,526.7		2,262.3		2,386.7		2,425.4
Net Income return on average capital	11.6	%	9.1	%	1.5	%	(1.2	%)	0.8	%	1.1	%	14.4	%	17.1	%	18.1	%
Income from operations return on average capital	16.1	%	15.5	%	7.8	%	3.6	%	5.7	%	9.1	%	15.2	%	15.8	%	15.5	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	781.2		912.8		1,031.0		967.8		843.9		855.8		820.6		653.1		761.3
Deferral	71.9		61.7		60.8		66.0		55.3		47.8		51.0		63.6		80.1
Amortization	(20.9	)	(32.7	)	(48.3	)	(47.1	)	(29.6	)	(31.0	)	(28.5	)	(33.6	)	(32.5	)
Included in Total Benefits and Expenses	51.0		29.1		12.6		18.9		25.7		16.8		22.6		30.0		47.6
Adjustment related to realized (gains) losses on available-for-sale securities	34.1		25.7		20.9		10.3		16.1		21.8		7.9		(31.8	)	(16.7	)
Adjustment related to unrealized (gains) losses on available-for-sale securities	46.5		78.2		(96.6	)	(153.1	)	(29.9	)	(73.9	)	(197.9	)	109.9		107.6
Other*	(0.0	)	(14.8	)
Balance at end-of-quarter	912.8		1,031.0		967.8		843.9		855.8		820.6		653.1		761.3		899.9
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	155.9		154.5		150.7		146.8		142.7		122.7		120.4		118.3		115.0
Amortization	(1.4	)	(3.8	)	(3.9	)	(4.1	)	(20.0	)	(2.3	)	(2.1	)	(3.3	)	(1.8	)
Balance at end-of-quarter	154.5		150.7		146.8		142.7		122.7		120.4		118.3		115.0		113.2

* Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 16

Lincoln Retirement

Annuity Account Value Rollforward

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
Fixed Annuities-Bal Beg-of-Year	18.111		18.210		16.615		18.004		20.087
Gross Deposits	2.563		2.074		3.342		3.672		3.125
Withdrawals (incl charges) & deaths	(2.521	)	(3.283	)	(2.448	)	(2.637	)	(2.074	)
Net flows	0.042		(1.209	)	0.894		1.035		1.051
Transfer from (to) var annuities	(0.783	)	(1.329	)	(0.428	)	0.108		(0.817	)
Interest credited	0.840		0.944		0.923		0.940		0.899
Acq of new business/companies
Fixed Annuities-Gross	18.210		16.615		18.004		20.087		21.220
Reinsurance Ceded	(1.419	)	(1.221	)	(1.514	)	(2.003	)	(2.353	)
Fixed Annuities-Bal End-of-Year	16.791		15.394		16.491		18.085		18.868
Fixed Annuities Incremental Deposits *	2.310		1.918		3.213		3.600		3.067
Variable Annuities-Bal Beg-of-Year	33.358		41.493		39.427		34.638		27.438
Gross Deposits	2.553		3.165		3.067		2.743		3.119
Withdrawals (incl charges) & deaths	(3.760	)	(4.830	)	(3.856	)	(3.325	)	(3.162	)
Net flows	(1.207	)	(1.665	)	(0.789	)	(0.582	)	(0.044	)
Transfer from (to) fixed annuities	0.787		1.320		0.428		(0.122	)	0.809
Invest inc & change in mkt value	8.555		(1.721	)	(4.428	)	(6.497	)	7.583
Acq(sale) of new business/companies
Var Annuities-Bal End-of-Year	41.493		39.427		34.638		27.438		35.786
Variable Annuities Incremental Deposits *	2.409		2.667		2.624		2.569		3.019
Total Annuities-Bal Beg-of-Year	51.469		59.703		56.042		52.642		47.525
Gross Deposits	5.116		5.239		6.409		6.415		6.244
Withdrawals (incl charges) & deaths	(6.281	)	(8.113	)	(6.304	)	(5.962	)	(5.236	)
Net flows	(1.165	)	(2.874	)	0.105		0.453		1.007
Transfers	0.004		(0.009	)			(0.013	)	(0.008	)
Interest credited & change in mkt value	9.395		(0.777	)	(3.505	)	(5.558	)	8.482
Acq of new business/companies
Total Gross Annuities-Bal End-of-Year	59.703		56.042		52.642		47.525		57.007
Reinsurance Ceded	(1.419	)	(1.221	)	(1.514	)	(2.003	)	(2.353	)
Total Annuities (Net of Ceded) - Bal End-of-Year	58.284		54.821		51.128		45.522		54.654
Total Annuities Incremental Deposits *	4.719		4.585		5.837		6.169		6.086
Var Ann Under Agree - Included above	0.719		0.941		1.077		1.186		2.166
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	0.709		0.459		1.712		1.844		1.415
Withdrawals	(1.367	)	(2.271	)	(1.604	)	(1.473	)	(0.934	)
Net Flows	(0.658	)	(1.812	)	0.108		0.371		0.481
Gross Fixed Account Values							10.475		11.440
Reinsurance Ceded							(2.003	)	(2.353	)
Net Fixed Account Values							8.473		9.087
Variable Annuities - including fixed portion of variable contracts
Deposits	4.407		4.780		4.697		4.571		4.829
Withdrawals	(4.915	)	(5.842	)	(4.700	)	(4.489	)	(4.302	)
Net Flows	(0.508	)	(1.062	)	(0.003	)	0.082		0.527
Variable Account Values							37.050		45.567
Fixed Portion of Variable Contracts
Deposits	1.853		1.615		1.630		1.828		1.710
Withdrawals	(1.154	)	(1.012	)	(0.844	)	(1.164	)	(1.140	)
Net Flows	0.699		0.603		0.786		0.664		0.570
Fixed Portion of Variable Account Values							9.612		9.781
Average Daily Variable Account Values	35.932		41.776		35.573		30.826		30.372
Annuity Product Spread Information**
Net Investment Income ***	7.22	%	7.38	%	7.38	%	6.98	%	6.41	%
Interest Credited	5.13	%	5.24	%	5.33	%	4.87	%	4.25	%
Spread ***	2.09	%	2.14	%	2.05	%	2.11	%	2.16	%

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

** For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.

*** The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread was 0.06% in 2003 and 0.07% in 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 17

Lincoln Retirement

Annuity Account Value Rollforward

Unaudited [Billions of Dollars]

	Mar 2001		Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Fixed Annuities-Bal Beg-of-Quarter	16.615		16.598		16.696		17.317		18.004		18.178		18.679		19.562		20.087		20.611		20.863		21.131
Gross Deposits	0.560		0.668		0.896		1.218		0.906		0.853		1.091		0.822		0.776		0.778		0.778		0.792
Withdrawals (incl charges) & deaths	(0.787	)	(0.574	)	(0.525	)	(0.562	)	(0.730	)	(0.551	)	(0.825	)	(0.531	)	(0.524	)	(0.501	)	(0.492	)	(0.557	)
Net flows	(0.227	)	0.094		0.372		0.656		0.176		0.302		0.265		0.291		0.253		0.277		0.286		0.235
Transfer from (to) var annuities	(0.014	)	(0.222	)	0.021		(0.213	)	(0.232	)	(0.032	)	0.379		(0.007	)	0.046		(0.250	)	(0.243	)	(0.369	)
Interest credited	0.225		0.226		0.228		0.244		0.230		0.231		0.238		0.240		0.226		0.226		0.225		0.223
Fixed Annuities-Gross	16.598		16.696		17.317		18.004		18.178		18.679		19.562		20.087		20.611		20.863		21.131		21.220
Reinsurance Ceded	(1.169	)	(1.146	)	(1.266	)	(1.514	)	(1.645	)	(1.770	)	(1.913	)	(2.003	)	(2.075	)	(2.169	)	(2.264	)	(2.353	)
Fixed Annuities-Bal End-of-Quarter	15.430		15.551		16.051		16.491		16.534		16.910		17.650		18.085		18.537		18.696		18.868		18.868
Fixed Annuities Incremental Deposits *	0.536		0.611		0.873		1.193		0.881		0.839		1.072		0.808		0.753		0.768		0.767		0.779
Variable Annuities-Bal Beg-of-Quarter	39.427		34.733		36.961		30.506		34.638		35.150		31.206		25.942		27.438		26.474		30.457		31.709
Gross Deposits	0.887		0.703		0.684		0.793		0.808		0.787		0.603		0.545		0.648		0.584		0.800		1.087
Withdrawals (incl charges) & deaths	(1.250	)	(0.993	)	(0.795	)	(0.818	)	(0.896	)	(0.866	)	(0.800	)	(0.763	)	(0.806	)	(0.762	)	(0.809	)	(0.786	)
Net flows	(0.363	)	(0.290	)	(0.111	)	(0.025	)	(0.088	)	(0.079	)	(0.197	)	(0.217	)	(0.158	)	(0.178	)	(0.009	)	0.300
Transfer from (to) fixed annuities	0.011		0.227		(0.023	)	0.213		0.234		0.032		(0.388	)	0.000		(0.048	)	0.249		0.243		0.365
Invest inc & change in mkt value	(4.342	)	2.291		(6.321	)	3.944		0.366		(3.897	)	(4.679	)	1.713		(0.759	)	3.912		1.018		3.412
Var Annuities-Bal End-of-Quarter	34.733		36.961		30.506		34.638		35.150		31.206		25.942		27.438		26.474		30.457		31.709		35.786
Variable Annuities Incremental Deposits	0.683		0.612		0.604		0.725		0.725		0.744		0.573		0.528		0.629		0.560		0.776		1.053
Total Annuities - Bal Beg-of-Quarter	56.042		51.331		53.657		47.823		52.642		53.328		49.885		45.504		47.525		47.085		51.320		52.841
Gross Deposits	1.447		1.371		1.580		2.011		1.714		1.640		1.694		1.368		1.424		1.363		1.578		1.879
Withdrawals (incl charges) & deaths	(2.037	)	(1.567	)	(1.320	)	(1.380	)	(1.626	)	(1.417	)	(1.626	)	(1.294	)	(1.329	)	(1.263	)	(1.301	)	(1.343	)
Net flows	(0.590	)	(0.196	)	0.261		0.631		0.088		0.223		0.068		0.074		0.095		0.099		0.277		0.536
Transfers	(0.003	)	0.005		(0.002	)			0.002		0.000		(0.009	)	(0.006	)	(0.002	)	(0.002	)	0.001		(0.004	)
Interest credited & change in mkt value	(4.117	)	2.517		(6.093	)	4.188		0.596		(3.666	)	(4.441	)	1.953		(0.532	)	4.137		1.243		3.634
Total Gross Annuities - Bal End-of-Quarter	51.331		53.657		47.823		52.642		53.328		49.885		45.504		47.525		47.085		51.320		52.841		57.007
Reinsurance Ceded	(1.169	)	(1.146	)	(1.266	)	(1.514	)	(1.645	)	(1.770	)	(1.913	)	(2.003	)	(2.075	)	(2.169	)	(2.264	)	(2.353	)
Total Annuities (Net of Ceded) - Bal End-of-Qtr	50.162		52.512		46.557		51.128		51.683		48.115		43.591		45.522		45.010		49.151		50.576		54.654
Total Annuities Incremental Deposits *	1.219		1.223		1.477		1.918		1.606		1.583		1.645		1.336		1.382		1.328		1.543		1.833
Var Ann Under Agree - Included above	0.904		0.975		0.907		1.077		1.207		1.175		1.083		1.186		1.355		1.637		1.820		2.166

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

	Mar 2001		Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	0.160		0.329		0.489		0.734		0.505		0.430		0.559		0.351		0.368		0.356		0.344		0.347
Withdrawals	(0.556	)	(0.356	)	(0.340	)	(0.352	)	(0.463	)	(0.267	)	(0.516	)	(0.228	)	(0.208	)	(0.235	)	(0.238	)	(0.253	)
Net Flows	(0.396	)	(0.027	)	0.149		0.382		0.042		0.163		0.042		0.123		0.160		0.121		0.106		0.094
Gross Fixed Account Values									9.761		10.048		10.219		10.475		10.759		11.001		11.226		11.440
Reinsurance Ceded									(1.645	)	(1.770	)	(1.913	)	(2.003	)	(2.075	)	(2.169	)	(2.264	)	(2.353	)
Net Fixed Account Values									8.116		8.278		8.306		8.473		8.684		8.832		8.962		9.087
Variable Annuities - including fixed portion of variable contracts
Deposits	1.287		1.042		1.091		1.277		1.209		1.210		1.135		1.017		1.056		1.007		1.234		1.532
Withdrawals	(1.481	)	(1.211	)	(0.979	)	(1.028	)	(1.163	)	(1.150	)	(1.109	)	(1.066	)	(1.121	)	(1.028	)	(1.063	)	(1.090	)
Net Flows	(0.194	)	(0.169	)	0.112		0.249		0.046		0.060		0.026		(0.049	)	(0.065	)	(0.022	)	0.172		0.442
Variable Account Values									43.568		39.839		35.286		37.050		36.327		40.320		41.616		45.567
Fixed Portion of Variable Contracts
Deposits	0.400		0.339		0.407		0.484		0.401		0.423		0.532		0.472		0.408		0.422		0.434		0.445
Withdrawals	(0.231	)	(0.218	)	(0.184	)	(0.210	)	(0.267	)	(0.284	)	(0.309	)	(0.303	)	(0.316	)	(0.266	)	(0.254	)	(0.304	)
Net Flows	0.169		0.121		0.223		0.274		0.134		0.139		0.223		0.169		0.093		0.156		0.180		0.141
Fixed Portion of Variable Account Values									8.418		8.632		9.344		9.612		9.853		9.864		9.906		9.781
Average Daily Variable Account Values	38.180		36.499		34.399		33.216		34.341		33.502		28.023		27.431		26.907		29.195		31.490		33.897
Annuity Product Spread Information**
Net Investment Income ***	7.50	%	7.45	%	7.33	%	7.26	%	7.15	%	7.11	%	6.87	%	6.89	%	6.61	%	6.49	%	6.42	%	6.13	%
Interest Credited	5.40	%	5.29	%	5.34	%	5.28	%	5.14	%	4.92	%	4.76	%	4.72	%	4.42	%	4.29	%	4.20	%	4.09	%
Spread ***	2.09	%	2.16	%	1.99	%	1.98	%	2.01	%	2.18	%	2.11	%	2.17	%	2.19	%	2.20	%	2.22	%	2.04	%

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

** For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.

*** The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread was 0.03% in the 4th quarter of 2003, 0.15% in the 3rd quarter of 2003, and 0.07% in the 4th quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 18

Life Insurance Segment

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Premiums	235.8		227.3		212.4		203.8		194.9
Surrender charges	66.3		66.4		66.1		54.1		53.6
Mortality assessments	444.6		465.2		499.4		501.5		516.7
Expense assessments	165.8		191.8		191.4		199.5		201.8
Other revenue and fees	9.8		14.2		17.9		23.7		28.0
Net investment income	840.1		871.5		910.2		899.1		911.1
Realized gains (losses) on investments	(2.2	)	(17.4	)	(57.6	)	(98.2	)	3.6
Gains (losses) on derivatives					0.7		1.5		(3.6	)
Gain (loss) on reinsurance derivative/trading account securities									(0.6	)
Total Revenue	1,760.4		1,819.0		1,840.6		1,785.0		1,905.5
Benefits and Expenses
Benefits paid or provided:
Benefits	430.4		411.5		418.6		427.4		416.0
Div accum & div to policyholders	81.5		80.8		78.5		76.0		81.6
Interest credited to policy bal.	493.8		525.4		569.9		598.6		598.2
Total insurance benefits	1,005.8		1,017.8		1,067.0		1,101.9		1,095.8
Underwriting, acquisition, insurance and other expenses:
Commissions	163.4		152.8		142.1		139.8		141.8
Other volume related expenses	185.6		200.9		176.4		190.4		208.3
Operating and administrative expenses	171.2		169.4		166.8		162.2		166.2
Restructuring Charges					5.4				19.5
Taxes, licenses and fees	51.8		48.5		49.2		53.2		62.2
Par policyholder interests	3.3		1.1
Subtotal	575.2		572.6		539.9		545.6		598.0
Deferral of acquisition costs					(324.8	)	(336.5	)	(370.8	)
DAC amortization					95.0		105.8		135.5
DAC deferral net of amortization	(235.0	)	(286.5	)	(229.8	)	(230.7	)	(235.2	)
PVIF amortization	58.8		103.7		75.9		73.9		81.4
Total underwriting, acquisition, insurance and other expenses	399.1		389.8		385.9		388.8		444.2
Goodwill amortization	23.4		23.7		23.7
Total Benefits and Expenses	1,428.2		1,431.4		1,476.6		1,490.8		1,540.1
Income from Before Federal Income Tax and Cumulative Effect of Accounting Change	332.2		387.6		364.0		294.2		365.4
Federal income taxes	120.6		141.6		129.2		88.1		113.9
Income Before Cumulative Effect of Accounting Change	211.5		246.0		234.8		206.1		251.5
Cumulative effect of accounting change					(5.5	)			0.6
Net Income	211.5		246.0		229.3		206.1		252.1
Less:
Restructuring charges					(3.5	)			(12.7	)
Realized gains (losses) on investments	(0.5	)	(10.7	)	(38.5	)	(63.8	)	2.3
Gains (losses) on derivatives					1.6		1.0		(2.3	)
Net gain (loss) on reinsurance derivative/trading account securities									(0.4	)
Cumulative effect of accounting change					(5.5	)			0.6
Income from Operations	212.0		256.7		275.3		269.0		264.5
Effective tax rate on Income from Operations	36.6	%	36.6	%	35.4	%	31.2	%	31.4	%
Revenue	1760.4		1,819.0		1,840.6		1,785.0		1,905.5
Less:
Realized gains (losses) on investments	(2.2	)	(17.4	)	(57.6	)	(98.2	)	3.6
Gains (losses) on derivatives					0.7		1.5		(3.6	)
Gain (loss) on reinsurance derivative/trading account securities									(0.6	)
Operating Revenue	1,762.6		1,836.4		1,897.5		1,881.7		1,906.1
Average capital	2,712.3		2,641.3		2,734.4		2,846.3		2,849.9
Net Income return on average capital	7.8	%	9.3	%	8.4	%	7.2	%	8.8	%
Income from operations return on average capital	7.8	%	9.7	%	10.1	%	9.4	%	9.3	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period					1,079.3		1,265.7		1,424.5
Deferral					324.8		336.5		370.8
Amortization					(95.0	)	(105.8	)	(135.5	)
Included in Total Benefits and Expenses					229.8		230.7		235.2
Adjustment related to realized (gains) losses on available-for-sale securities					43.0		39.7		(31.9	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(89.0	)	(130.9	)	(49.5	)
Other*					2.5		19.3		—
Balance at end-of-period					1,265.7		1,424.5		1,578.3
Roll Forward of Present Value of In-Force
Balance at beginning-of-period					1,040.5		964.0		890.1
Amortization					(75.9	)	(73.9	)	(81.4	)
Other					(0.7	)	(0.0	)	—
Balance at end-of-period					964.0		890.1		808.6

* Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 19

Life Insurance Segment

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Revenue
Premiums	64.4		51.1		47.6		48.6		56.4		47.8		49.7		45.2		52.2
Surrender charges	19.9		11.7		13.5		13.4		15.5		11.4		12.4		13.7		16.1
Mortality assessments	125.5		123.9		123.9		126.3		127.3		129.7		128.4		130.2		128.4
Expense assessments	52.8		46.9		47.2		49.2		56.3		48.3		49.6		48.9		55.0
Other revenue and fees	6.0		5.7		6.7		5.1		6.2		5.8		7.3		6.4		8.4
Net investment income	226.6		226.0		225.7		224.1		223.3		227.6		229.0		226.4		228.1
Realized gains (losses) on investments	(31.1	)	(41.4	)	(25.4	)	(25.9	)	(5.5	)	(12.7	)	(2.6	)	(1.7	)	20.5
Gains (losses) on derivatives	0.6		0.0		0.6		0.7		0.1		(0.5	)	0.3		(0.3	)	(3.1	)
Gain (loss) on reinsurance derivative/trading account securities																	(0.6	)
Total Revenue	464.7		423.9		439.8		441.6		479.6		457.5		474.0		468.9		505.0
Benefits and Expenses
Benefits paid or provided:
Benefits	112.9		104.1		103.6		105.2		114.6		103.8		110.5		118.5		83.2
Div accum & div to policyholders	25.4		17.8		18.2		17.2		22.8		14.4		17.6		15.9		33.8
Interest credited to policy bal.	146.9		146.3		148.9		152.6		150.7		150.1		149.8		150.7		147.5
Total insurance benefits	285.1		268.1		270.8		275.1		288.0		268.3		277.9		285.1		264.5
Underwriting, acquisition, insurance and other expenses:
Commissions	45.1		34.6		34.8		31.8		38.6		32.4		30.7		34.4		44.3
Other volume related expenses	56.9		42.7		43.6		45.8		58.3		54.2		43.2		48.3		62.6
Operating and administrative expenses	39.8		38.2		38.2		41.1		44.7		40.6		38.5		41.7		45.4
Restructuring charges	2.3										5.5		7.3		2.5		4.2
Taxes, licenses and fees	12.5		13.2		15.3		13.2		11.5		14.4		13.8		16.1		18.0
Subtotal	156.5		128.6		132.0		131.8		153.2		147.1		133.4		143.0		174.4
Deferral of acquisition costs	(106.3	)	(74.3	)	(82.2	)	(78.6	)	(101.4	)	(91.0	)	(79.7	)	(88.0	)	(112.1	)
DAC amortization	30.2		22.1		23.6		23.9		36.3		47.0		29.5		21.1		38.0
DAC deferral net of amortization	(76.1	)	(52.3	)	(58.6	)	(54.8	)	(65.1	)	(44.0	)	(50.2	)	(66.9	)	(74.1	)
PVIF amortization	14.7		16.9		16.3		23.3		17.4		17.4		17.2		26.9		19.9
Total underwriting, acquisition, insurance and other expenses	95.1		93.2		89.6		100.4		105.5		120.5		100.4		103.0		120.2
Goodwill amortization	5.9
Total Benefits and Expenses	386.2		361.3		360.4		375.5		393.6		388.8		378.3		388.1		384.8
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	78.4		62.6		79.4		66.1		86.0		68.7		95.7		80.8		120.3
Federal income taxes	27.5		19.1		22.7		19.7		26.5		20.2		30.1		24.9		38.7
Income Before Cumulative Effect of Accounting Change	50.9		43.5		56.7		46.4		59.5		48.5		65.6		55.8		81.6
Cumulative effect of accounting change																	0.6
Net Income	50.9		43.5		56.7		46.4		59.5		48.5		65.6		55.8		82.2
Less:
Restructuring charges	(1.5	)									(3.6	)	(4.7	)	(1.6	)	(2.7	)
Realized gains (losses) on investments	(21.3	)	(26.9	)	(16.4	)	(16.9	)	(3.6	)	(8.1	)	(1.9	)	(1.1	)	13.4
Gains (losses) on derivatives	1.5		0.0		0.3		0.6		0.1		(0.5	)	0.4		(0.2	)	(2.0	)
Net gain (loss) on reinsurance derivative/trading account securities																	(0.4	)
Cumulative effect of accounting change																	0.6
Income from Operations	72.3		70.4		72.8		62.7		63.1		60.7		71.8		58.7		73.4
Effective tax rate on Income from Operations	35.0	%	32.3	%	30.1	%	31.3	%	31.0	%	30.6	%	31.8	%	31.1	%	31.8	%
Revenue	464.7		423.9		439.8		441.6		479.6		457.5		474.0		468.9		505.0
Less:
Realized gains (losses) on investments	(31.1	)	(41.4	)	(25.4	)	(25.9	)	(5.5	)	(12.7	)	(2.6	)	(1.7	)	20.5
Gains (losses) on derivatives	0.6		0.0		0.6		0.7		0.1		(0.5	)	0.3		(0.3	)	(3.1	)
Gain (loss) on reinsurance derivative/trading account securities																	(0.6	)
Operating Revenue	495.2		465.3		464.6		466.8		485.0		470.7		476.2		470.8		488.2
Average capital	2,748.0		2,805.9		2,870.1		2,857.6		2,851.5		2,864.2		2,792.7		2,849.0		2,893.7
Net Income return on average capital	7.4	%	6.2	%	7.9	%	6.5	%	8.3	%	6.8	%	9.4	%	7.8	%	11.4	%
Income from operations return on average capital	10.5	%	10.0	%	10.1	%	8.8	%	8.8	%	8.5	%	10.3	%	8.2	%	10.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	1,156.0		1,265.6		1,385.3		1,404.9		1,362.2		1,424.5		1,447.7		1,381.3		1,483.4
Deferral	106.3		74.3		82.2		78.6		101.4		91.0		79.7		88.0		112.1
Amortization	(30.2	)	(22.1	)	(23.6	)	(23.9	)	(36.3	)	(47.0	)	(29.5	)	(21.1	)	(38.0	)
Included in Total Benefits and Expenses	76.1		52.3		58.6		54.8		65.1		44.0		50.2		66.9		74.1
Adjustment related to realized (gains) losses on available-for-sale securities	14.7		15.8		11.2		11.7		1.0		7.0		(0.3	)	(27.6	)	(11.0	)
Adjustment related to unrealized (gains) losses on available-for-sale securities	18.5		34.0		(51.9	)	(109.3	)	(3.7	)	(27.9	)	(116.3	)	62.8		31.9
Other*	0.3		17.6		1.7
Balance at end-of-quarter	1,265.6		1,385.3		1,404.9		1,362.2		1,424.5		1,447.7		1,381.3		1,483.4		1,578.3
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	978.7		964.0		947.1		930.7		907.4		890.1		872.7		855.5		828.5
Amortization	(14.7	)	(16.9	)	(16.3	)	(23.3	)	(17.4	)	(17.4	)	(17.2	)	(26.9	)	(19.9	)
Other					(0.1	)			0.1
Balance at end-of-quarter	964.0		947.1		930.7		907.4		890.1		872.7		855.5		828.5		808.6

* Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 20

Life Insurance Segment

Operational Data

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999	2000	2001	2002	2003
First Year Premiums by Product (Millions)
Universal Life
Excluding Moneyguard	229.4	195.1	184.7	356.9	417.0
Moneyguard	113.5	94.1	107.9	138.4	224.7
Total	342.9	289.3	292.7	495.3	641.6
Variable Universal Life	142.2	218.7	228.6	134.5	79.4
Whole Life	23.9	22.4	26.3	30.3	34.4
Term	45.9	41.9	30.8	32.3	40.2
Total Retail	555.0	572.3	578.4	692.3	795.7
Corporate Owned Life Insurance (COLI)	14.7	87.0	47.3	88.1	125.7
Total	569.7	659.3	625.6	780.4	921.3
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	188.3	200.6	196.1	201.7	230.0
Lincoln Financial Distributors	367.9	444.7	413.0	556.3	625.6
Other*	13.5	14.0	16.6	22.4	65.8
Total by Distribution	569.7	659.3	625.6	780.4	921.3
Life Insurance In-Force (Billions)
Universal Life & Other	109.288	115.872	121.168	126.016	129.623
Term Insurance	85.701	100.130	113.226	127.880	151.717
Total Life Segment In-Force	194.988	216.002	234.394	253.896	281.340

For the Quarter Ended	Mar 2001	Jun 2001	Sep 2001	Dec 2001	Mar 2002	Jun 2002	Sep 2002	Dec 2002	Mar 2003	Jun 2003	Sep 2003	Dec 2003
First Year Premiums by Product (Millions)
Universal Life
Excluding Moneyguard	36.1	46.8	36.2	65.7	57.4	63.8	98.0	137.8	84.5	93.8	114.2	124.5
Moneyguard	21.6	23.2	31.3	31.9	29.0	35.1	34.9	39.3	46.3	48.9	58.2	71.4
Total	57.7	70.0	67.4	97.5	86.4	98.9	132.9	177.1	130.8	142.7	172.3	195.9
Variable Universal Life	56.0	52.2	50.1	70.2	39.0	42.4	26.1	27.0	24.4	14.1	16.6	24.4
Whole Life	4.1	5.1	6.7	10.4	5.2	6.4	7.7	11.0	6.5	7.1	8.5	12.3
Term	6.5	7.2	8.1	9.1	8.7	8.1	7.3	8.1	9.1	9.6	10.5	10.9
Total Retail	124.2	134.6	132.4	187.2	139.4	155.8	174.0	223.2	170.7	173.5	208.0	243.5
Corporate Owned Life Insurance (COLI)	7.1	21.0	5.1	14.2	6.9	46.6	7.8	26.8	10.6	61.8	23.7	29.6
Total	131.3	155.6	137.4	201.3	146.3	202.4	181.8	249.9	181.3	235.3	231.7	273.1
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	38.1	48.2	41.8	68.0	41.5	48.3	46.9	64.9	42.1	48.4	66.9	72.6
Lincoln Financial Distributors	89.1	104.0	90.4	129.5	100.9	151.6	132.7	171.1	131.6	146.6	156.1	191.2
Other*	4.2	3.4	5.2	3.8	3.8	2.6	2.2	13.9	7.5	40.2	8.7	9.4
Total by Distribution	131.3	155.6	137.4	201.3	146.3	202.4	181.8	249.9	181.3	235.3	231.7	273.1
Insurance In-Force (Billions)
Universal Life & Other	116.747	118.007	119.029	121.168	122.316	123.674	124.085	126.016	126.414	127.276	127.855	129.623
Term Insurance	102.467	105.265	108.723	113.226	117.752	121.076	123.945	127.880	133.251	139.191	145.480	151.717
Total Segment In-Force	219.214	223.272	227.751	234.394	240.068	244.750	248.030	253.896	259.666	266.467	273.335	281.340

* Other consists of distribution arrangements with third-party intermediaries.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 21

Life Insurance Segment

Life Insurance Account Value Rollforward

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
Universal Life-Bal Beg-of-Year	6.259		6.650		6.976		7.508		8.211
Deposits	1.017		0.955		1.043		1.332		1.532
Withdrawals & deaths	(0.452	)	(0.426	)	(0.319	)	(0.426	)	(0.437	)
Net flows	0.564		0.528		0.724		0.906		1.095
Policyholder assessments	(0.544	)	(0.584	)	(0.598	)	(0.648	)	(0.702	)
Interest credited	0.370		0.382		0.405		0.428		0.427
Acq of new business/transfers between segments							0.018
Universal Life-Bal End of Year (1)	6.650		6.976		7.508		8.211		9.030
Variable Universal Life-Bal Beg-of-Year	1.200		1.605		1.808		1.746		1.690
Deposits	0.326		0.607		0.584		0.504		0.448
Withdrawals & deaths	(0.099	)	(0.132	)	(0.251	)	(0.193	)	(0.208	)
Net flows	0.228		0.475		0.332		0.311		0.240
Policyholder assessments	(0.084	)	(0.141	)	(0.170	)	(0.186	)	(0.191	)
Invest inc & chg in mkt value	0.370		(0.130	)	(0.225	)	(0.313	)	0.457
Acq of new business/transfers between segments	(0.110	)					0.132
Variable Universal Life -Bal End-of-Year	1.605		1.808		1.746		1.690		2.195
Interest Sensitive Whole Life - Bal Beg-of-Year	1.784		1.963		2.062		2.123		2.186
Deposits	0.355		0.322		0.307		0.301		0.279
Withdrawals & deaths	(0.162	)	(0.168	)	(0.200	)	(0.199	)	(0.236	)
Net flows	0.193		0.154		0.107		0.103		0.043
Policyholder assessments	(0.168	)	(0.168	)	(0.164	)	(0.167	)	(0.159	)
Interest credited	0.109		0.113		0.118		0.127		0.125
Acq of new business/transfers between segments	0.045
Int Sensitive Whole Life-Bal End -of -Year	1.963		2.062		2.123		2.186		2.195
Total Segment- Life Insurance Account Values
Bal Beg-of-Year	9.243		10.217		10.847		11.377		12.086
Deposits	1.698		1.884		1.934		2.138		2.259
Withdrawals & deaths	(0.713	)	(0.727	)	(0.771	)	(0.818	)	(0.881	)
Net flows	0.985		1.158		1.163		1.320		1.377
Policyholder assessments	(0.795	)	(0.893	)	(0.931	)	(1.002	)	(1.053	)
Invest inc & change in market value	0.849		0.364		0.299		0.241		1.009
Acq of new business/transfers between segments	(0.065	)					0.150
Total Segment -Bal End-of-Year	10.217		10.847		11.377		12.086		13.420
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)					7.63	%	7.30	%	6.97	%
Interest Credited					5.86	%	5.77	%	5.36	%
Spread (3)					1.77	%	1.53	%	1.61	%
Traditional Products
Net Investment Income (3)					7.49	%	7.42	%	6.99	%

(1) Includes fixed investment option of VUL products.

(2) Interest Sensitive Products - For the life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of December 31, 2001, 2002, 2003, interest sensitive products represented 86%, 87% and 88%, respectively, of total interest sensitive and traditional non-par earning assets.

(3) The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread for interest sensitive products was 0.03% in 2003, 0.04% in 2002, and 0.06% in 2001. The impact for traditional products was 0.06% in 2003, 0.05% in 2002, and 0.13% in 2001.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 22

Life Insurance Segment

Life Insurance Account Value Roll Forward

Unaudited [Billions of Dollars]

	Mar 2001		Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Universal Life-Bal Beg-of-Quarter	6.976		7.063		7.216		7.315		7.508		7.622		7.838		7.987		8.211		8.359		8.542		8.782
Deposits	0.227		0.270		0.233		0.314		0.248		0.364		0.310		0.410		0.316		0.350		0.426		0.440
Withdrawals & deaths	(0.091	)	(0.071	)	(0.085	)	(0.073	)	(0.097	)	(0.096	)	(0.108	)	(0.125	)	(0.107	)	(0.101	)	(0.117	)	(0.113	)
Net flows	0.136		0.199		0.147		0.241		0.150		0.268		0.201		0.286		0.210		0.249		0.309		0.327
Policyholder assessments	(0.147	)	(0.147	)	(0.150	)	(0.153	)	(0.158	)	(0.158	)	(0.162	)	(0.170	)	(0.168	)	(0.171	)	(0.178	)	(0.185	)
Interest credited	0.098		0.100		0.102		0.105		0.104		0.106		0.110		0.108		0.106		0.106		0.108		0.106
Acq of new business/transfers between segments	—		—		—		—		0.018		—		—		—		—		—		—		—
Universal Life-Bal End-of-Quarter (1)	7.063		7.216		7.315		7.508		7.622		7.838		7.987		8.211		8.359		8.542		8.782		9.030
Variable Universal Life-Bal Beg of Quarter	1.808		1.633		1.766		1.527		1.746		1.919		1.776		1.575		1.690		1.689		1.930		1.991
Deposits	0.136		0.138		0.124		0.186		0.129		0.147		0.102		0.126		0.118		0.114		0.093		0.123
Withdrawals & deaths	(0.049	)	(0.060	)	(0.055	)	(0.088	)	(0.055	)	(0.057	)	(0.034	)	(0.047	)	(0.036	)	(0.050	)	(0.048	)	(0.074	)
Net flows	0.087		0.078		0.069		0.098		0.074		0.090		0.068		0.079		0.082		0.064		0.045		0.049
Policyholder assessments	(0.041	)	(0.041	)	(0.042	)	(0.045	)	(0.047	)	(0.046	)	(0.046	)	(0.047	)	(0.049	)	(0.048	)	(0.046	)	(0.049	)
Invest inc & chg in mkt value	(0.221	)	0.096		(0.266	)	0.166		0.013		(0.186	)	(0.224	)	0.083		(0.034	)	0.225		0.062		0.204
Acq of new business/transfers between segments	—		—		—		—		0.132		—		—		—		—		—		—		—
Variable Universal Life -Bal End-of-Quarter	1.633		1.766		1.527		1.746		1.919		1.776		1.575		1.690		1.689		1.930		1.991		2.195
Interest Sensitive Whole Life - Bal Beg-of-Quarter	2.062		2.068		2.084		2.096		2.123		2.126		2.145		2.164		2.186		2.185		2.191		2.185
Deposits	0.056		0.069		0.077		0.105		0.063		0.066		0.073		0.100		0.051		0.062		0.067		0.098
Withdrawals & deaths	(0.041	)	(0.043	)	(0.054	)	(0.061	)	(0.051	)	(0.039	)	(0.045	)	(0.063	)	(0.046	)	(0.050	)	(0.066	)	(0.073	)
Net flows	0.014		0.027		0.022		0.044		0.012		0.026		0.027		0.037		0.005		0.012		0.001		0.026
Policyholder assessments	(0.037	)	(0.040	)	(0.041	)	(0.047	)	(0.042	)	(0.039	)	(0.040	)	(0.046	)	(0.036	)	(0.038	)	(0.039	)	(0.047	)
Interest credited	0.028		0.030		0.030		0.030		0.033		0.032		0.031		0.031		0.030		0.032		0.032		0.031
Acq of new business/transfers between segments	—		—		—		—				—		—		—		—		—		—		—
Int Sensitive Whole Life-Bal End-of-Quarter	2.068		2.084		2.096		2.123		2.126		2.145		2.164		2.186		2.185		2.191		2.185		2.195
Total Segment- Life Insurance Account Values
Bal Beg-of-Quarter	10.847		10.764		11.066		10.939		11.377		11.667		11.759		11.726		12.086		12.233		12.663		12.958
Deposits	0.418		0.477		0.434		0.605		0.440		0.577		0.484		0.636		0.486		0.526		0.586		0.661
Withdrawals & deaths	(0.181	)	(0.173	)	(0.195	)	(0.222	)	(0.204	)	(0.192	)	(0.187	)	(0.234	)	(0.190	)	(0.202	)	(0.231	)	(0.259	)
Net flows	0.237		0.304		0.239		0.383		0.236		0.385		0.297		0.402		0.296		0.324		0.355		0.402
Policyholder assessments	(0.225	)	(0.228	)	(0.232	)	(0.246	)	(0.246	)	(0.244	)	(0.248	)	(0.263	)	(0.252	)	(0.257	)	(0.262	)	(0.280	)
Invest inc & change in market value	(0.094	)	0.226		(0.134	)	0.301		0.151		(0.049	)	(0.082	)	0.222		0.103		0.363		0.202		0.341
Acq of new business/transfers between segments	—		—		—		—		0.150		—		—		—		—		—		—		—
Total Segment -Bal End-of-Quarter	10.764		11.066		10.939		11.377		11.667		11.759		11.726		12.086		12.233		12.663		12.958		13.420
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)	7.52	%	7.60	%	7.73	%	7.60	%	7.47	%	7.39	%	7.26	%	7.15	%	7.21	%	7.09	%	6.90	%	6.73	%
Interest Credited	5.86	%	5.87	%	5.85	%	5.90	%	5.82	%	5.83	%	5.82	%	5.63	%	5.56	%	5.43	%	5.37	%	5.12	%
Spread (3)	1.67	%	1.74	%	1.89	%	1.70	%	1.65	%	1.56	%	1.44	%	1.52	%	1.65	%	1.65	%	1.53	%	1.61	%
Traditional Products
Net Investment Income (3)	7.27	%	7.33	%	7.95	%	7.51	%	7.42	%	7.37	%	7.58	%	7.28	%	7.16	%	7.13	%	6.99	%	6.72	%

(1) Includes fixed investment option of VUL products.

(2) Interest Sensitive Products - For the life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of December 31, 2001, 2002 and 2003, interest sensitive products represented 86%, 87% and 88%, respectively, of total interest sensitive and traditional non-par earning assets.

(3) The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread for interest sensitive products was 0.01% in the 4th quarter of 2003, 0.04% in the 3rd quarter of 2003, and 0.02% in the 4th quarter of 2002. The impact for traditional products was 0.10% in the 4th quarter of 2003, 0.13% in the 3rd quarter of 2003, and 0.10% in the 4th quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 23

Investment Management

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Investment advisory fees - External	248.6		231.6		197.2		183.3		205.0
Investment advisory fees - Insurance Assets	103.0		112.4		105.0		97.7		101.2
Other revenue and fees	106.6		115.9		99.2		87.0		117.9
Net investment income	56.9		57.7		53.6		50.5		49.9
Realized gains (losses) on investments	(0.1	)	(3.9	)	(3.7	)	(5.4	)	0.4
Gains (losses) on derivatives	—		—		—		—		—
Total Revenue	514.9		513.7		451.2		413.1		474.4
Benefits and Expenses
Underwriting, acquisition, insurance and other expenses:
Operating and administrative expenses	369.6		424.9		410.2		393.2		414.6
Restructuring Charges	12.5		7.1		0.6		(0.4	)	7.1
Taxes, licenses and fees	10.3		11.6		16.8		13.0		10.3
Subtotal	392.4		443.6		427.5		405.8		431.9
Other intangibles amortization	17.7		16.3		10.8		8.2		7.9
Total underwriting, acquisition, insurance and other expenses	410.1		459.9		438.3		414.0		439.8
Goodwill amortization	16.2		16.2		16.2
Interest on notes payable	0.0		0.0		—		—		—
Total Benefits and Expenses	426.3		476.1		454.6		414.0		439.8
Income from Before Federal Income Tax and Cumulative Effect of Accounting Change	88.6		37.6		(3.3	)	(0.9	)	34.6
Federal income taxes	37.0		19.8		5.5		0.5		4.5
Income Before Cumulative Effect of Accounting Change	51.6		17.9		(8.9	)	(1.4	)	30.2
Cumulative effect of accounting change					(0.1	)
Net Income	51.6		17.9		(9.0	)	(1.4	)	30.2
Less:
Realized gains (losses) on investments	(0.1	)	(2.5	)	(2.4	)	(3.5	)	0.3
Gains (losses) on derivatives
Restructuring charges	(9.2	)	(4.6	)	(0.4	)	0.3		(4.6	)
Cumulative effect of accounting change					(0.1	)
Income from Operations	61.0		25.0		(6.1	)	1.8		34.5
Net Income
- before Goodwill Amortization	67.9		34.1		7.3		(1.4	)	30.2
-before Goodwill & Intang. Amort.	79.4		44.7		14.3		3.9		35.3
Income from Operations -before
Goodwill Amortization	77.2		41.3		10.1		1.8		34.5
- before Goodwill & Intang. Amort	88.7		51.8		17.1		7.2		39.7
Revenue	514.9		513.7		451.2		413.1		474.4
Less:
Realized gains (losses) on investments	(0.1	)	(3.9	)	(3.7	)	(5.4	)	0.4
Operating Revenue	515.0		517.6		454.9		418.5		474.0
Average Capital (Securities at Cost)	593.7		582.0		557.0		581.2		602.4
Net Income return on average capital	8.7	%	3.1	%	(1.6	)%	(0.2	)%	5.0	%
Inc. from oper. return on average capital	10.3	%	4.3	%	(1.1	)%	0.3	%	5.7	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 24

Investment Management

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Revenue
Investment advisory fees - External	49.3		48.0		47.8		42.9		44.7		44.2		49.4		53.2		58.3
Investment advisory fees - Insurance Assets	26.3		25.0		24.3		24.1		24.2		24.1		25.4		25.5		26.2
Other revenue and fees	23.4		23.0		22.0		19.9		22.1		22.0		29.5		29.5		36.9
Net investment income	12.8		12.8		12.7		12.4		12.7		12.1		12.1		13.2		12.5
Realized gains (losses) on investments	(1.1	)	(1.5	)	(0.7	)	(1.8	)	(1.5	)	(0.4	)	0.1		0.2		0.5
Total Revenue	110.8		107.3		106.1		97.5		102.2		102.1		116.4		121.7		134.3
Benefits and Expenses
Underwriting, acquisition, insurance and other expenses:
Operating and administrative expenses	101.3		97.2		100.8		99.4		95.8		95.2		104.4		101.6		113.3
Restructuring charges	0.6						(0.4	)							5.3		1.7
Taxes, licenses and fees	3.6		4.6		4.2		1.9		2.4		3.0		2.8		2.4		2.1
Subtotal	105.5		101.8		105.0		100.9		98.2		98.2		107.2		109.3		117.1
Other intangibles amortization	2.3		2.2		2.0		2.0		2.0		2.0		2.0		2.0		2.0
Total underwriting, acquisition, insurance and other expenses	107.8		103.9		107.0		102.9		100.2		100.2		109.2		111.3		119.1
Goodwill amortization	4.1
Total Benefits and Expenses	111.9		103.9		107.0		102.9		100.2		100.2		109.2		111.3		119.1
Income from Before Federal Income Tax and Cumulative Effect of Accounting Change	(1.1	)	3.4		(1.0	)	(5.4	)	2.0		1.9		7.2		10.3		15.2
Federal income taxes	1.3		1.3		(0.2	)	(1.5	)	0.9		0.8		2.6		4.0		(3.0	)
Income Before Cumulative Effect of Accounting Change	(2.4	)	2.1		(0.8	)	(3.9	)	1.1		1.0		4.6		6.3		18.2
Cumulative effect of accounting change
Net Income	(2.4	)	2.1		(0.8	)	(3.9	)	1.1		1.0		4.6		6.3		18.2
Less:
Realized gains (losses) on investments	(0.7	)	(1.0	)	(0.4	)	(1.2	)	(0.9	)	(0.3	)	0.0		0.1		0.3
Restructuring charges	(0.4	)					0.3		0.0						(3.5	)	(1.1	)
Cumulative effect of accounting changes
Income from Operations	(1.3	)	3.1		(0.3	)	(3.0	)	2.1		1.3		4.5		9.7		19.0
Net Income -before
Goodwill Amortization	1.7		2.1		(0.8	)	(3.9	)	1.1		1.0		4.6		6.3		18.2
Net Income -before
Goodwill & Intang. Amort	3.2		3.5		0.6		(2.6	)	2.4		2.4		5.8		7.6		19.5
Income from Operations -before
Goodwill Amortization	2.8		3.1		(0.3	)	(3.0	)	2.1		1.3		4.5		9.7		19.0
Income from Operations -before
Goodwill & Intang. Amort	4.2		4.5		1.0		(1.7	)	3.4		2.6		5.8		11.0		20.3
Revenue	110.8		107.3		106.1		97.5		102.2		102.1		116.4		121.7		134.3
Less:
Realized gains (losses) on investments	(1.1	)	(1.5	)	(0.7	)	(1.8	)	(1.5	)	(0.4	)	0.1		0.2		0.5
Gains (losses) on derivatives
Operating Revenue	111.8		108.9		106.7		99.3		103.6		102.5		116.3		121.4		133.8
Average Capital (Securities at Cost)	555.4		562.7		587.2		586.3		588.8		597.7		588.6		600.4		623.0
Net Income return on average capital	(1.7	)%	1.5	%	(0.5	)%	(2.6	)%	0.8	%	0.7	%	3.1	%	4.2	%	11.7	%
Income from operations return on average capital	(0.9	)%	2.2	%	(0.2	)%	(2.0	)%	1.4	%	0.9	%	3.1	%	6.4	%	12.2	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 25

Investment Management

Assets Under Management Rollforward

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
Retail Fixed - Bal Beg-of-Year	8.218		7.422		6.605		7.118		7.631
Fund Sales	0.991		0.769		0.876		1.218		1.792
Redemptions	(1.424	)	(1.401	)	(1.051	)	(1.182	)	(1.442	)
Net Money Market	(0.111	)	(0.207	)	(0.046	)	(0.050	)	(0.028	)
Transfers	0.177		(0.168	)	0.405		0.206		(0.168	)
Net Flows(1)	(0.367	)	(1.007	)	0.184		0.192		0.154
Market	(0.429	)	0.096		0.330		0.321		0.401
Acquisitions/addition of Assets under Administration(1)			0.094
Balance End-of-Year	7.422		6.605		7.118		7.631		8.186
Retail Equity - Bal Beg-of-Year	22.081		23.384		21.525		17.990		14.917
Fund Sales	3.270		4.116		2.817		4.477		3.791
Redemptions	(4.972	)	(4.431	)	(2.838	)	(3.690	)	(2.830	)
Net Money Market	(0.001	)	0.001
Transfers	(0.144	)	(0.178	)	(0.538	)	(0.173	)	0.156
Net Flows(1)	(1.847	)	(0.492	)	(0.560	)	0.614		1.117
Market	3.150		(1.709	)	(2.975	)	(3.688	)	4.854
Acquisitions/addition of Assets under Administration(1)			0.342
Balance at End-of-Year	23.384		21.525		17.990		14.917		20.887
Total Retail - Bal Beg-of-Year	30.299		30.807		28.129		25.108		22.547
Retail Sales-Annuities	1.561		1.782		1.701		2.751		2.151
Retail Sales-Mutual Funds	2.151		2.577		1.523		1.829		2.315
Retail Sales-Managed Acct. & Other	0.549		0.525		0.469		1.115		1.116
Total Retail Sales	4.261		4.885		3.693		5.695		5.583
Redemptions	(6.396	)	(5.832	)	(3.889	)	(4.873	)	(4.272	)
Net Money Market	(0.112	)	(0.206	)	(0.046	)	(0.050	)	(0.028	)
Transfers	0.033		(0.346	)	(0.133	)	0.033		(0.012	)
Net Flows(1)	(2.214	)	(1.500	)	(0.375	)	0.806		1.271
Market	2.721		(1.613	)	(2.646	)	(3.366	)	5.255
Acquisitions/addition of Assets under Administration(1)			0.435
Balance at End-of-Year	30.807		28.129		25.108		22.547		29.073
Institutional Fixed - Bal Beg-of-Year	6.955		6.936		6.111		5.489		7.237
Inflows	2.001		0.771		0.643		2.281		1.937
Withdrawals/Terminations	(1.700	)	(1.973	)	(1.229	)	(1.146	)	(1.226	)
Transfers	(0.001	)	(0.005	)	0.017		0.004		0.005
Net Flows	0.300		(1.207	)	(0.569	)	1.139		0.716
Market	(0.319	)	0.382		(0.053	)	0.608		0.447
Balance at End-of-Year	6.936		6.111		5.489		7.237		8.399
Institutional Equity - Bal Beg-of-Year	24.236		23.632		19.114		17.815		16.711
Inflows	5.249		2.730		3.183		2.913		3.922
Withdrawals/Terminations	(7.800	)	(7.209	)	(2.879	)	(1.991	)	(2.178	)
Transfers	0.012		(0.008	)	0.035		0.045		0.018
Net Flows	(2.539	)	(4.486	)	0.338		0.967		1.762
Market	1.935		(0.031	)	(1.637	)	(2.071	)	6.849
Balance at End-of-Year	23.632		19.114		17.815		16.711		25.322
Total Institutional - Bal Beg-of-Year	31.191		30.568		25.225		23.305		23.948
Inflows	7.250		3.501		3.826		5.194		5.859
Withdrawals/Terminations	(9.500	)	(9.182	)	(4.109	)	(3.137	)	(3.404	)
Transfers	0.011		(0.013	)	0.052		0.050		0.023
Net Flows	(2.239	)	(5.693	)	(0.231	)	2.106		2.478
Market	1.616		0.351		(1.690	)	(1.463	)	7.296
Balance at End-of-Year	30.568		25.225		23.305		23.948		33.722
Total Retail/Institutional - At End-of-Year	61.375		53.355		48.412		46.495		62.794
Insurance Assets - At End-of-Year	35.934		35.686		38.119		41.104		43.024
Total Assets Under Management At End-of-Year	97.309		89.041		86.531		87.599		105.818

(1) Retail assets under management have been restated to include assets under administration beginning in January of 2000.

Net Flows from Assets Under Administration are: 0.018 0.081 0.263 0.195

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 26

Investment Management

Assets Under Management Roll Forward

Unaudited [Billions of Dollars]

	Mar 2001		Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Retail Fixed - Bal-Beg-of-Qtr	6.605		6.747		6.764		7.203		7.118		7.086		7.167		7.514		7.631		7.907		8.190		8.083
Fund Sales	0.248		0.203		0.207		0.218		0.292		0.272		0.325		0.328		0.424		0.469		0.443		0.456
Redemptions	(0.261	)	(0.285	)	(0.262	)	(0.242	)	(0.289	)	(0.306	)	(0.277	)	(0.311	)	(0.327	)	(0.318	)	(0.435	)	(0.361	)
Net Money Market	0.010		(0.030	)	0.005		(0.031	)	(0.003	)	(0.002	)	(0.009	)	(0.035	)	0.001		(0.006	)	(0.008	)	(0.014	)
Transfers	0.047		(0.002	)	0.388		(0.027	)	(0.041	)	0.021		0.134		0.092		0.062		(0.055	)	(0.086	)	(0.088	)
Net Flows	0.043		(0.114	)	0.338		(0.083	)	(0.041	)	(0.015	)	0.174		0.074		0.159		0.090		(0.087	)	(0.008	)
Market	0.100		0.131		0.101		(0.002	)	0.009		0.096		0.174		0.043		0.117		0.193		(0.020	)	0.111
Balance at End-of-Qtr	6.747		6.764		7.203		7.118		7.086		7.167		7.514		7.631		7.907		8.190		8.083		8.186
Retail Equity - Bal-Beg-of-Qtr	21.525		18.255		19.756		15.873		17.990		18.255		16.613		13.705		14.917		14.286		16.906		17.961
Fund Sales	0.917		0.681		0.638		0.580		0.908		1.084		1.140		1.345		0.717		0.813		1.051		1.210
Redemptions	(0.911	)	(0.666	)	(0.653	)	(0.607	)	(0.791	)	(0.881	)	(1.137	)	(0.881	)	(0.803	)	(0.612	)	(0.706	)	(0.710	)
Net Money Market
Transfers	(0.070	)	(0.047	)	(0.441	)	0.019		0.014		(0.022	)	(0.128	)	(0.036	)	(0.059	)	0.011		0.112		0.092
Net Flows	(0.064	)	(0.032	)	(0.456	)	(0.008	)	0.130		0.182		(0.126	)	0.428		(0.145	)	0.213		0.457		0.592
Market	(3.205	)	1.532		(3.427	)	2.125		0.134		(1.824	)	(2.782	)	0.784		(0.486	)	2.408		0.598		2.334
Balance at End-of-Qtr	18.255		19.756		15.873		17.990		18.255		16.613		13.705		14.917		14.286		16.906		17.961		20.887
Total Retail - Bal-Beg-of-Qtr	28.129		25.003		26.520		23.076		25.108		25.340		23.779		21.219		22.547		22.193		25.096		26.044
Retail Sales-Annuities	0.540		0.403		0.434		0.323		0.589		0.601		0.756		0.806		0.488		0.528		0.573		0.562
Retail Sales-Mutual Funds	0.483		0.355		0.336		0.348		0.452		0.562		0.416		0.399		0.450		0.558		0.644		0.663
Retail Sales-Managed Acct. & Other	0.142		0.127		0.074		0.127		0.159		0.194		0.293		0.469		0.202		0.196		0.277		0.441
Total Retail Sales	1.165		0.885		0.845		0.798		1.200		1.356		1.465		1.673		1.141		1.282		1.494		1.666
Redemptions	(1.173	)	(0.951	)	(0.915	)	(0.850	)	(1.081	)	(1.186	)	(1.414	)	(1.192	)	(1.130	)	(0.930	)	(1.141	)	(1.071	)
Net Money Market	0.010		(0.030	)	0.005		(0.031	)	(0.003	)	(0.002	)	(0.009	)	(0.035	)	0.001		(0.006	)	(0.008	)	(0.014	)
Transfers	(0.023	)	(0.049	)	(0.053	)	(0.009	)	(0.027	)	(0.001	)	0.006		0.056		0.003		(0.044	)	0.025		0.004
Net Flows	(0.021	)	(0.146	)	(0.118	)	(0.091	)	0.089		0.167		0.048		0.502		0.014		0.302		0.370		0.584
Market	(3.105	)	1.663		(3.326	)	2.123		0.143		(1.728	)	(2.608	)	0.826		(0.369	)	2.601		0.578		2.444
Balance at End-of-Qtr	25.003		26.520		23.076		25.108		25.340		23.779		21.219		22.547		22.193		25.096		26.044		29.073
Institutional Fixed - Bal-Beg-of-Qtr	6.111		5.890		5.809		5.640		5.489		6.018		6.844		7.207		7.237		7.605		7.753		8.077
Inflows	0.310		0.233		0.020		0.080		0.804		0.663		0.530		0.283		0.592		0.126		0.556		0.663
Withdrawals/Terminations	(0.432	)	(0.112	)	(0.493	)	(0.192	)	(0.239	)	(0.161	)	(0.308	)	(0.438	)	(0.308	)	(0.188	)	(0.226	)	(0.503	)
Transfers	0.003		0.010		0.001		0.002		(0.001	)	0.000		0.007		(0.002	)	0.002		0.003		(0.000	)	(0.000	)
Net Flows	(0.119	)	0.131		(0.472	)	(0.109	)	0.565		0.503		0.229		(0.157	)	0.286		(0.059	)	0.330		0.160
Market	(0.102	)	(0.212	)	0.302		(0.041	)	(0.036	)	0.323		0.134		0.187		0.083		0.207		(0.006	)	0.163
Balance at End-of-Qtr	5.890		5.809		5.640		5.489		6.018		6.844		7.207		7.237		7.605		7.753		8.077		8.399
Institutional Equity - Bal-Beg-of-Qtr	19.114		17.313		18.407		16.242		17.815		18.644		18.120		14.937		16.711		15.920		19.607		21.008
Inflows	0.881		0.823		0.863		0.615		0.672		0.569		0.631		1.040		0.494		0.727		1.386		1.315
Withdrawals/Terminations	(1.199	)	(0.501	)	(0.555	)	(0.624	)	(0.512	)	(0.635	)	(0.523	)	(0.322	)	(0.459	)	(0.381	)	(0.921	)	(0.419	)
Transfers	0.018		(0.008	)	0.009		0.016		0.006		0.018		0.011		0.010		0.008		0.002		0.003		0.005
Net Flows	(0.299	)	0.313		0.317		0.007		0.167		(0.047	)	0.119		0.728		0.044		0.348		0.469		0.901
Market	(1.502	)	0.780		(2.482	)	1.567		0.661		(0.476	)	(3.302	)	1.046		(0.835	)	3.339		0.932		3.413
Balance at End-of-Qtr	17.313		18.407		16.242		17.815		18.644		18.120		14.937		16.711		15.920		19.607		21.008		25.322
Total Institutional - Bal-Beg-of-Qtr	25.225		23.203		24.216		21.881		23.305		24.661		24.963		22.143		23.948		23.526		27.360		29.085
Inflows	1.192		1.056		0.883		0.696		1.476		1.232		1.162		1.323		1.086		0.853		1.943		1.978
Withdrawals/Terminations	(1.631	)	(0.613	)	(1.048	)	(0.816	)	(0.751	)	(0.796	)	(0.831	)	(0.760	)	(0.767	)	(0.568	)	(1.147	)	(0.922	)
Transfers	0.022		0.002		0.010		0.018		0.006		0.019		0.017		0.008		0.010		0.005		0.003		0.005
Net Flows	(0.417	)	0.445		(0.155	)	(0.103	)	0.731		0.455		0.348		0.572		0.330		0.289		0.799		1.061
Market	(1.605	)	0.568		(2.180	)	1.526		0.625		(0.153	)	(3.168	)	1.233		(0.752	)	3.546		0.926		3.576
Balance at End-of-Qtr	23.203		24.216		21.881		23.305		24.661		24.963		22.143		23.948		23.526		27.360		29.085		33.722
Total Retail/Inst - At End-of-Qtr	48.206		50.737		44.958		48.412		50.002		48.742		43.362		46.495		45.718		52.456		55.129		62.794
Insurance Assets-End-of-Qtr	36.324		36.018		37.337		38.119		37.171		38.476		40.416		41.104		42.130		43.857		42.984		43.024
Total Assets Under Management At End-of-Qtr	84.530		86.755		82.295		86.531		87.172		87.218		83.778		87.599		87.848		96.313		98.113		105.818
Net Cash Flows from Assets Under Admin:	0.027		0.013		0.007		0.034		0.090		0.061		0.045		0.068		0.068		0.059		0.038		0.031

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 27

Lincoln UK

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Premiums	145.1		148.4		46.1		50.6		62.2
Mortality assessments	27.1		31.4		33.9		32.4		35.7
Expense assessments	182.3		178.1		134.8		105.3		93.9
Other revenue and fees	13.8		2.6		(1.4	)	24.9		18.6
Net investment income	75.3		70.3		64.8		62.1		64.1
Realized gains (losses) on investments	3.0		3.2		12.4		1.9		(1.1	)
Gains (losses) on derivatives
Total Revenue	446.6		433.8		290.7		277.2		273.5
Benefits and Expenses
Benefits paid or provided:
Benefits	306.2		178.5		83.4		84.2		98.6
Underwriting, acquisition, insurance and other expenses:
Commissions	54.5		37.7		10.8		6.1		3.8
Operating and administrative expenses	153.0		142.5		82.5		77.0		78.3
Restructuring charges	10.0		99.4				(1.7	)
Subtotal	217.4		279.5		93.2		81.4		82.1
Deferral of acquisition costs					(4.2	)	(3.4	)	(3.5	)
DAC amortization					35.9		50.0		42.4
DAC deferral net of amortization	(12.4	)	(7.2	)	31.7		46.5		39.1
PVIF amortization	28.4		4.7		22.5		30.8		(10.7	)
Total underwriting, acquisition, insurance and other expenses	233.5		277.0		147.4		158.7		110.4
Goodwill amortization	7.0		4.0		0.6
Total Benefits and Expenses	546.7		459.6		231.5		242.9		209.0
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	(100.1	)	(25.7	)	59.2		34.3		64.5
Federal income taxes	(81.8	)	(10.6	)	(7.6	)	(3.4	)	21.6
Income Before Cumulative Effect of Accounting Change	(18.2	)	(15.1	)	66.8		37.7		42.9
Cumulative effect of accounting change
Net Income	(18.2	)	(15.1	)	66.8		37.7		42.9
Less:
Realized gains (losses) on investments	2.1		2.3		8.7		1.3		(0.7	)
Restructuring charges	(6.5	)	(76.5	)			1.7
Cumulative effect of accounting change
Income from Operations	(13.9	)	59.2		58.1		34.6		43.6
Effective tax rate on Income from Operations	85.1	%	15.9	%	(24.2	)%	(12.8	)%	33.4	%
Revenue	446.6		433.8		290.7		277.2		273.5
Less:
Realized gains (losses) on investments	3.0		3.2		12.4		1.9		(1.1	)
Gains(losses) on derivatives
Operating Revenue	443.6		430.6		278.2		275.4		274.5
Average capital	520.4		494.0		593.8		549.9		521.6
Net Income return on average capital	(3.5	)%	(3.1	)%	11.3	%	6.9	%	8.2	%
Income from operations return on average capital	(2.7	)%	12.0	%	9.8	%	6.3	%	8.4	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year					635.0		587.3		597.6
Deferral					4.2		3.4		3.5
Amortization					(35.9	)	(50.0	)	(42.4	)
Included in Total Benefits and Expenses					(31.7	)	(46.5	)	(39.0	)
Foreign currency translation adjustment					(16.0	)	56.8		62.0
Balance at end-of-year					587.3		597.6		620.7
Roll Forward of Present Value of In-Force
Balance at beginning-of-year					273.6		244.0		237.3
Amortization					(22.5	)	(30.8	)	10.7
Foreign currency translation adjustment					(7.0	)	24.1		26.7
Balance at end-of-year					244.0		237.3		274.7

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 28

Lincoln UK

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Revenue
Premiums	11.9		12.1		12.1		12.4		14.2		12.7		13.8		16.5		19.3
Mortality assessments	7.1		6.5		8.3		8.7		8.9		9.1		9.2		8.7		8.7
Expense assessments	24.1		25.3		27.8		29.4		22.8		21.6		24.5		23.2		24.6
Other revenue and fees	(9.2	)	(0.2	)	12.5		24.5		(11.9	)	10.3		(3.9	)	2.6		9.6
Net investment income	15.2		14.7		15.3		15.6		16.6		15.2		16.7		16.0		16.2
Realized gains (losses) on investments	4.3		(5.1	)	4.5		1.2		1.2						0.3		(1.3	)
Gains (losses) on derivatives
Total Revenue	53.4		53.2		80.5		91.8		51.8		68.9		60.2		67.3		77.1
Benefits and Expenses
Benefits paid or provided:
Benefits	20.8		18.3		19.0		23.8		23.1		18.2		24.3		22.7		33.3
Underwriting, acquisition, insurance and other expenses:
Commissions	1.9		1.3		1.9		1.6		1.3		1.1		0.8		1.0		0.8
Operating and administrative expenses	24.7		17.3		18.9		20.2		20.6		18.3		20.5		19.6		20.0
Restructuring charges									(1.7	)
Subtotal	26.6		18.6		20.9		21.8		20.2		19.4		21.3		20.6		20.8
Deferral of acquisition costs	(0.9	)	(0.9	)	(1.0	)	(0.9	)	(0.6	)	(0.8	)	(0.8	)	(0.2	)	(1.6	)
DAC amortization	(3.8	)	6.7		20.9		33.8		(11.5	)	18.6		1.9		7.3		14.7
DAC deferral net of amortization	(4.8	)	5.8		19.9		33.0		(12.1	)	17.7		1.2		7.1		13.1
PVIF amortization	5.6		0.7		11.7		12.8		5.5		3.0		(5.7	)	(0.7	)	(7.3	)
Total underwriting, acquisition, insurance and other expenses	27.4		25.0		52.5		67.6		13.6		40.1		16.8		27.0		26.6
Goodwill amortization	0.2
Total Benefits and Expenses	48.4		43.3		71.5		91.4		36.7		58.3		41.1		49.6		59.9
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	5.1		9.8		9.0		0.4		15.1		10.6		19.1		17.6		17.2
Federal income taxes	(16.9	)	(0.5	)	(0.3	)	0.2		(2.8	)	3.8		6.6		6.1		5.1
Income Before Cumulative Effect of Accounting Change	22.0		10.3		9.3		0.2		17.9		6.8		12.4		11.5		12.2
Cumulative effect of accounting change
Net Income	22.0		10.3		9.3		0.2		17.9		6.8		12.4		11.5		12.2
Less:
Realized gains (losses) on investments	3.0		(3.6	)	3.2		0.9		0.8						0.2		(0.9	)
Restructuring charges									1.7
Cumulative effect of accounting change
Income from Operations	19.0		13.8		6.1		(0.6	)	15.3		6.8		12.4		11.3		13.0
Effective tax rate on Income from Operations	(2,417.1	)%	7.2	%	(37.0	)%	25.4	%	(26.1	)%	35.5	%	34.7	%	35.0	%	29.5	%
Revenue	53.4		53.2		80.5		91.8		51.8		68.9		60.2		67.3		77.1
Less:
Realized gains (losses) on investments	4.3		(5.1	)	4.5		1.2		1.2						0.3		(1.3	)
Operating Revenue	49.1		58.3		75.9		90.6		50.6		68.9		60.2		67.0		78.4
Average capital	596.3		585.2		544.9		525.3		544.0		539.2		494.4		512.5		540.2
Net Income return on average capital	14.7	%	7.0	%	6.8	%	0.2	%	13.2	%	5.1	%	10.1	%	9.0	%	9.0	%
Income from operations return on average capital	12.7	%	9.5	%	4.5	%	(0.5	)%	11.3	%	5.1	%	10.1	%	8.8	%	9.7	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	589.7		587.3		569.4		591.0		571.8		597.6		569.1		595.1		590.9
Deferral	0.9		0.9		1.0		0.9		0.6		0.8		0.8		0.2		1.6
Amortization	3.8		(6.7	)	(20.9	)	(33.8	)	11.5		(18.6	)	(1.9	)	(7.3	)	(14.7	)
Included in Total Benefits and Expenses	4.8		(5.8	)	(19.9	)	(33.0	)	12.1		(17.7	)	(1.1	)	(7.1	)	(13.1	)
Foreign currency translation adjustment	(7.2	)	(12.2	)	41.6		13.8		13.7		(10.8	)	27.2		2.8		42.8
Balance at end-of-year	587.3		569.4		591.0		571.8		597.6		569.1		595.1		590.9		620.7
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	252.8		244.0		238.3		243.9		236.8		237.4		230.1		247.0		249.0
Amortization	(5.6	)	(0.7	)	(11.7	)	(12.8	)	(5.5	)	(3.0	)	5.7		0.7		7.3
Foreign currency translation adjustment	(3.2	)	(5.1	)	17.4		5.7		6.1		(4.3	)	11.2		1.3		18.4
Balance at end-of-year	244.0		238.3		243.9		236.8		237.4		230.1		247.0		249.0		274.7

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 29

Lincoln UK

Operational Data

Unaudited [Millions of Dollars]

For the Year Ended December 31															1999		2000		2001		2002		2003
Unit Linked Assets - Beg-of-Year (Billions)															6.265		7.220		6.441		5.607		5.079
Deposits															0.537		0.554		0.481		0.453		0.392
Withdrawals (incl. chgs) & Deaths															(0.566	)	(0.644	)	(0.529	)	(0.519	)	(0.614	)
Net Flows															(0.029	)	(0.090	)	(0.048	)	(0.066	)	(0.222	)
Inv Inc & Chg in Mkt Val															1.154		(0.154	)	(0.617	)	(1.004	)	0.918
Foreign Currency Adjustment															(0.170	)	(0.536	)	(0.169	)	0.542		0.616
Unit Linked Assets - End-of-Year															7.220		6.441		5.607		5.079		6.390
Individual Life In-force (Billions)															25.698		24.290		20.878		18.896		20.393
Exchange Rate - Dollars to Pounds
For-the-Period															1.617		1.518		1.441		1.503		1.638
End-of-Period															1.615		1.493		1.456		1.610		1.786
For the Quarter Ended	Mar 2001		Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Unit Linked Assets
Balance-Beg-of-Quarter (Billions)	6.441		5.677		5.768		5.218		5.607		5.618		5.520		4.825		5.079		4.748		5.468		5.692
Deposits	0.132		0.111		0.128		0.111		0.114		0.115		0.119		0.104		0.094		0.090		0.113		0.095
Withdrawals (incl. chgs) & Deaths	(0.147	)	(0.131	)	(0.136	)	(0.115	)	(0.127	)	(0.137	)	(0.126	)	(0.129	)	(0.153	)	(0.137	)	(0.152	)	(0.172	)
Net Flows	(0.015	)	(0.020	)	(0.009	)	(0.004	)	(0.013	)	(0.022	)	(0.006	)	(0.025	)	(0.059	)	(0.047	)	(0.039	)	(0.077	)
Inv Inc & Chg in Mkt Val	(0.421	)	0.115		(0.768	)	0.457		0.141		(0.479	)	(0.812	)	0.146		(0.184	)	0.549		0.205		0.348
Foreign Currency Adjustment	(0.328	)	(0.004	)	0.226		(0.063	)	(0.117	)	0.403		0.123		0.133		(0.087	)	0.218		0.059		0.427
Unit Linked Assets - End-of-Quarter	5.677		5.768		5.218		5.607		5.618		5.520		4.825		5.079		4.748		5.468		5.692		6.390
Individual Life In-force (Billions)	21.894		21.519		21.299		20.878		20.010		20.401		19.815		18.896		18.512		19.138		19.258		20.393
Exchange Rate - Dollars to Pounds
For-the-Quarter	1.455		1.421		1.442		1.448		1.423		1.464		1.555		1.570		1.605		1.618		1.615		1.714
End-of-Quarter	1.416		1.415		1.474		1.456		1.426		1.532		1.569		1.610		1.580		1.656		1.664		1.786

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 30

Other Operations

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue	1,966.0		1,946.9		1,827.3		372.4		575.8
Less:
Realized gains (losses) on investments	14.4		(5.0	)	8.2		25.6		(7.1	)
Gains (losses) on derivatives					(9.7	)	0.9		7.6
Gain (loss) on reinsurance derivative/trading account securities									1.9
Amortization of deferred gain-reserve development							(0.8	)	3.6
Gain on sale of reinsurance subsidiaries					12.8		(8.3	)
Mark-to-market adjustment on reclassification from AFS to trading account securities									285.5
Operating Revenue	1,951.6		1,951.9		1,815.9		355.0		284.2
Operating Revenue by Source:
Lincoln Financial Advisors	317.0		377.5		360.7		318.0		316.9
Lincoln Financial Distributors	107.5		119.9		113.4		127.3		140.9
Total Distribution	424.4		497.4		474.0		445.4		457.8
Reinsurance	1,824.1		1,770.6		1,699.4
Amortization of deferred gain on indemnity reinsurance*					20.4		75.2		72.3
Other [Including Consolidating Adjustments]	(296.9	)	(316.0	)	(377.9	)	(165.6	)	(245.8	)
Total Operating Revenue	1,951.6		1,951.9		1,815.9		355.0		284.2
Income (Loss)
Net Loss	(76.1	)	(18.2	)	(6.6	)	(247.3	)	(113.7	)
Less:
Restructuring charges	(3.2	)	1.0		(19.5	)	1.1		(4.7	)
Realized gains (losses) on investments	10.2		(3.2	)	5.9		16.7		(4.7	)
Gains (losses) on derivatives					(6.3	)	0.6		5.0
Net gain (loss) on reinsurance derivative/trading account securities									1.3
Gain on sale of reinsurance subsidiaries					15.0		(9.4	)
Reserve development/ amortization of deferred gain							(199.1	)	(18.5	)
Loss on early retirement of subordinated debt									(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities									185.6
Cumulative effect of accounting changes					(2.7	)			(192.2	)
Operating Income (Loss)	(83.1	)	(16.0	)	1.0		(57.2	)	(81.8	)
Income (Loss) from Operations by Source:
Lincoln Financial Advisors	(20.8	)	(15.4	)	(20.1	)	(31.4	)	(33.2	)
Lincoln Financial Distributors	(14.0	)	(19.6	)	(33.2	)	(35.2	)	(33.4	)
Total Distribution	(34.8	)	(35.0	)	(53.3	)	(66.6	)	(66.6	)
Reinsurance	40.1		122.5		128.8
Amortization of deferred gain on indemnity reinsurance*					12.9		48.9		47.0
LNC Financing	(83.5	)	(84.9	)	(77.9	)	(43.0	)	(56.7	)
Other Corporate	(5.0	)	(18.6	)	(9.5	)	3.5		(5.4	)
Income (Loss) from Operations	(83.1	)	(16.0	)	1.0		(57.2	)	(81.8	)

For the Quarter Ended	Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Revenue	367.4		88.5		88.5		91.8		103.6		73.0		76.1		74.8		351.9
Less:
Realized gains (losses) on investments	29.5		(4.9	)	(3.8	)	33.2		1.2		0.4		(0.2	)	(7.6	)	0.3
Gains (losses) on derivatives	(9.7	)	0.1		(0.1	)	0.6		0.3		(0.4	)	0.2		7.7		0.2
Gain (loss) on reinsurance derivative/trading account securities																	1.9
Amort. of deferred gain-reserve development							(1.4	)	0.5		(0.2	)	(0.2	)	3.7		0.3
Gain on sale of reinsurance subsidiaries	12.8								(8.3	)
Mark-to-market adjustment on reclassification from AFS to trading account securities																	285.5
Operating Revenue	334.7		93.3		92.4		59.4		109.8		73.3		76.3		70.9		63.7
Operating Revenue by Source:
Lincoln Financial Advisors	116.7		75.9		78.1		74.4		89.6		69.4		75.3		76.7		95.5
Lincoln Financial Distributors	35.0		29.4		29.3		31.8		36.9		35.4		29.4		32.2		43.9
Total Distribution	151.7		105.3		107.4		106.2		126.5		104.8		104.6		108.9		139.5
Reinsurance	265.6
Amortization of deferred gain on indemnity reinsurance*	20.4		24.1		22.1		22.1		6.9		18.4		18.2		18.3		17.4
Other [Including Consolidating Adjustments]	(102.9	)	(36.0	)	(37.1	)	(68.9	)	(23.6	)	(49.9	)	(46.6	)	(56.2	)	(93.1	)
Total Operating Revenue	334.7		93.3		92.4		59.4		109.8		73.3		76.3		70.9		63.7
Income (Loss)
Net Income (Loss)	33.2		(16.8	)	(25.8	)	(172.1	)	(32.6	)	(21.7	)	(21.6	)	(42.4	)	(28.1	)
Less:
Restructuring charges	(18.3	)					1.1		0.0						(2.4	)	(2.4	)
Realized gains (losses) on investments	19.7		(3.3	)	(2.4	)	21.6		0.8		0.5		(0.4	)	(4.9	)	0.1
Gains (losses) on derivatives	(6.3	)	0.1		(0.1	)	0.4		0.2		(0.5	)	0.4		5.0		0.1
Net gain (loss) on reinsurance derivative/trading account securities																	1.3
Gain on sale of reinsurance subsidiaries	15.0								(9.4	)
Reserve development/ amortization of deferred gain					(14.4	)	(176.4	)	(8.2	)	(0.1	)	(0.1	)	(18.5	)	0.2
Loss on early retirement of subordinated debt															(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities																	185.6
Cumulative effect - reinsurance embedded derivative acctg.																	(192.2	)
Income (Loss) from Operations	23.0		(13.6	)	(8.9	)	(18.8	)	(15.9	)	(21.5	)	(21.5	)	(18.0	)	(20.8	)
Income from Operations by Source:
Lincoln Financial Advisors	6.4		(10.1	)	(8.7	)	(8.9	)	(3.7	)	(10.4	)	(7.4	)	(7.4	)	(8.0	)
Lincoln Financial Distributors	(5.1	)	(6.6	)	(7.6	)	(13.1	)	(8.0	)	(8.1	)	(10.7	)	(7.5	)	(7.1	)
Total Distribution	1.3		(16.6	)	(16.3	)	(22.0	)	(11.7	)	(18.4	)	(18.1	)	(15.0	)	(15.1	)
Reinsurance	30.7
Amortization of deferred gain on indemnity reinsurance*	12.9		15.7		14.4		14.4		4.5		11.9		11.9		11.9		11.3
LNC Financing	(14.7	)	(8.2	)	(10.2	)	(11.0	)	(13.5	)	(15.3	)	(14.4	)	(13.3	)	(13.7	)
Other Corporate	(7.1	)	(4.4	)	3.2		(0.2	)	4.9		0.3		(0.8	)	(1.5	)	(3.4	)
Income(Loss) from Operations	23.0		(13.6	)	(8.9	)	(18.8	)	(15.9	)	(21.5	)	(21.5	)	(18.0	)	(20.8	)

* The amortization of deferred gain on sale of reinsurance business represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 31

Consolidated Domestic Deposits/Account Balances

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
Deposits - For the Year
Lincoln Retirement - Fixed Annuities	2.563		2.074		3.342		3.672		3.125
Lincoln Retirement - Variable Annuities	2.553		3.165		3.067		2.743		3.119
Lincoln Retirement - Life Insurance	0.017		0.014		0.012
Life Insurance Segment - Life Insurance	1.698		1.884		1.934		2.138		2.259
Inv Mgmt - Annuities	1.561		1.782		1.701		2.751		2.151
Inv Mgmt - Mutual Funds(1)	2.151		2.577		1.523		1.829		2.315
Inv Mgmt - Managed Acct. & Other	0.549		0.525		0.469		1.115		1.116
Consolidating Adjustments	(0.499	)	(0.765	)	(0.608	)	(1.576	)	(0.864	)
Total Gross Retail Deposits	10.593		11.256		11.439		12.671		13.222
Investment Management Segment- Instit.	7.250		3.501		3.826		5.194		5.859
Consolidating Adjustments			(0.152	)	(0.207	)	(0.232	)	(0.150	)
Total Gross Deposits	17.843		14.605		15.058		17.634		18.931
Account Balances - End of Year
Lincoln Retirement - Fixed Annuities	16.791		15.394		16.491		18.085		18.868
Lincoln Retirement - Variable Annuities	41.493		39.427		34.638		27.438		35.786
Lincoln Retirement - Life Insurance	0.155		0.160		0.149
Life Insurance Segment - Life Insurance	10.217		10.847		11.377		12.086		13.420
Inv Mgmt - Annuities	15.557		13.527		11.835		9.981		12.691
Inv Mgmt - Mutual Funds(1)	13.633		13.260		11.554		10.296		12.614
Inv Mgmt - Managed Acct. & Other	1.618		1.342		1.719		2.270		3.768
Consolidating Adjustments	(9.175	)	(7.757	)	(6.676	)	(5.123	)	(6.553	)
Total Retail Account Balances	90.289		86.200		81.088		75.033		90.593
Investment Management Segment- Instit.	30.568		25.225		23.305		23.948		33.722
Consolidating Adjustments	(1.014	)	(1.434	)	(1.211	)	(0.924	)	(1.183	)
Total Account Balances	119.843		109.991		103.181		98.057		123.132

	Mar 2001		Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	0.560		0.668		0.896		1.218		0.906		0.853		1.091		0.822		0.776		0.778		0.778		0.792
Lincoln Retirement - Variable Annuities	0.887		0.703		0.684		0.793		0.808		0.787		0.603		0.545		0.648		0.584		0.800		1.087
Lincoln Retirement - Life Insurance	0.003		0.004		0.003		0.002
Life Insurance Segment - Life Insurance	0.418		0.477		0.434		0.605		0.440		0.577		0.484		0.636		0.486		0.526		0.586		0.661
Inv Mgmt - Annuities	0.540		0.403		0.434		0.323		0.589		0.601		0.756		0.806		0.488		0.528		0.573		0.562
Inv Mgmt - Mutual Funds(1)	0.483		0.355		0.336		0.348		0.452		0.562		0.416		0.399		0.450		0.558		0.644		0.663
Inv Mgmt - Managed Acct. & Other	0.142		0.127		0.074		0.127		0.159		0.194		0.293		0.469		0.202		0.196		0.277		0.441
Consolidating Adjustments	(0.146	)	(0.110	)	(0.193	)	(0.159	)	(0.280	)	(0.333	)	(0.437	)	(0.525	)	(0.171	)	(0.211	)	(0.288	)	(0.193	)
Total Gross Retail Deposits	2.886		2.627		2.669		3.258		3.074		3.240		3.206		3.151		2.880		2.960		3.370		4.012
Investment Management Segment- Instit.	1.192		1.056		0.883		0.696		1.476		1.232		1.162		1.323		1.086		0.853		1.943		1.978
Consolidating Adjustments	(0.067	)	(0.037	)	(0.069	)	(0.035	)	(0.046	)	(0.069	)	(0.040	)	(0.076	)	(0.053	)	(0.025	)	(0.025	)	(0.047	)
Total Gross Deposits	4.011		3.646		3.483		3.918		4.505		4.403		4.328		4.398		3.913		3.788		5.288		5.943
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	15.430		15.551		16.051		16.491		16.534		16.910		17.650		18.085		18.537		18.696		18.868		18.868
Lincoln Retirement - Variable Annuities	34.733		36.961		30.506		34.638		35.150		31.206		25.942		27.438		26.474		30.457		31.709		35.786
Lincoln Retirement - Life Insurance	0.147		0.157		0.134		0.149
Life Insurance Segment - Life Insurance	10.764		11.066		10.939		11.377		11.667		11.759		11.726		12.086		12.233		12.663		12.958		13.420
Inv Mgmt - Annuities	11.822		12.532		10.714		11.835		11.920		10.896		9.327		9.981		9.660		11.002		11.392		12.691
Inv Mgmt - Mutual Funds(1)	11.528		12.214		10.727		11.554		11.599		11.036		10.072		10.296		10.241		11.356		11.615		12.614
Inv Mgmt - Managed Acct. & Other	1.653		1.774		1.635		1.719		1.821		1.847		1.820		2.270		2.292		2.737		3.037		3.768
Consolidating Adjustments	(6.601	)	(7.092	)	(6.002	)	(6.676	)	(6.640	)	(6.000	)	(4.940	)	(5.123	)	(4.891	)	(5.628	)	(5.792	)	(6.553	)
Total Retail Account Balance	79.477		83.163		74.705		81.088		82.051		77.654		71.597		75.034		74.546		81.283		83.787		90.593
Investment Management Segment - Instit.	23.203		24.216		21.881		23.305		24.661		24.963		22.143		23.948		23.526		27.360		29.085		33.722
Consolidating Adjustments	(1.197	)	(1.300	)	(1.066	)	(1.211	)	(1.186	)	(1.045	)	(0.866	)	(0.924	)	(0.933	)	(1.049	)	(1.044	)	(1.183	)
Total Account Balance	101.483		106.080		95.520		103.181		105.527		101.573		92.874		98.058		97.140		107.595		111.828		123.132

Total Domestic Net Flows

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
For the Year
Lincoln Retirement	(1.165	)	(2.874	)	0.105		0.453		1.007
Life Insurance Segment	0.985		1.158		1.163		1.320		1.377
Investment Management Segment - Retail(1)	(2.214	)	(1.500	)	(0.375	)	0.806		1.271
Consolidating Adjustments	1.276		1.022		0.035		(0.082	)	0.064
Total Retail Net Flows	(1.118	)	(2.194	)	0.927		2.496		3.719
Investment Management Segment - Institutional	(2.239	)	(5.693	)	(0.231	)	2.106		2.478
Consolidating Adjustments			0.035		(0.015	)	0.005		(0.002	)
Total Net Flows	(3.357	)	(7.853	)	0.681		4.608		6.195

	Mar 2001		Jun 2001		Sep 2001		Dec 2001		Mar 2002	Jun 2002		Sep 2002	Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
For the Quarter
Lincoln Retirement	(0.590	)	(0.196	)	0.261		0.631		0.088	0.223		0.068	0.074		0.095		0.099		0.277		0.536
Life Insurance Segment	0.237		0.304		0.239		0.383		0.236	0.385		0.297	0.402		0.296		0.324		0.355		0.402
Investment Management Segment-Retail(1)	(0.021	)	(0.146	)	(0.118	)	(0.091	)	0.089	0.167		0.048	0.502		0.014		0.302		0.370		0.584
Consolidating Adjustments	0.163		0.042		(0.002	)	(0.169	)	0.009	(0.038	)	0.133	(0.187	)	0.162		(0.003	)	(0.038	)	(0.058	)
Total Retail Net Flows	(0.211	)	0.004		0.380		0.754		0.423	0.737		0.545	0.791		0.568		0.723		0.965		1.464
Investment Management Segment-Instit.	(0.417	)	0.445		(0.155	)	(0.103	)	0.731	0.455		0.348	0.572		0.330		0.289		0.799		1.061
Consolidating Adjustments	(0.020	)	0.018		(0.030	)	0.016		0.022	(0.026	)	0.008	0.001		(0.030	)	0.009		0.035		(0.017	)
Total Net Flows	(0.648	)	0.467		0.195		0.667		1.176	1.166		0.901	1.364		0.868		1.021		1.799		2.508

NOTE: Excludes amounts reported as Assets Under Management - Insurance Assets

(1) Retail assets under management have been restated to include assets under administration beginning in January of 2000. See details on page 26.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 32

Consolidated Investment Data - Assets Managed

Unaudited [Billions of Dollars]

For the Year Ended December 31								1999	2000	2001	2002	2003
Assets Managed by Source
LNC’s Investments and Cash
Fixed maturity securities - available for sale								27.689	27.450	28.346	32.767	32.769
Equity securities - available for sale								0.604	0.550	0.470	0.337	0.199
Trading accounts												3.120
Other investments								7.286	7.369	7.297	6.895	6.689
Total LNC Investments(1)								35.578	35.369	36.113	40.000	42.778
Separate accounts								53.654	50.580	44.833	36.178	46.565
Cash and invested cash								1.896	1.927	3.095	1.691	1.575
Discontinued operations
Total LNC								91.128	87.876	84.042	77.869	90.917
Non-affiliate assets managed								49.314	41.861	38.421	38.052	49.587
Total Assets Managed								140.443	129.737	122.463	115.921	140.505
Assets Managed by Advisor
Investment Management segment (1)
(See page 27 for additional detail)								61.375	53.355	48.412	46.495	62.794
DLIA-Corp (Assets managed internally-see page 27)								35.934	35.686	38.119	41.104	43.024
Lincoln (UK)								8.589	7.873	6.847	6.351	7.668
Policy Loans (within business units)								1.892	1.961	1.940	1.946	1.924
Non-LNC Affiliates								32.653	30.862	27.145	20.026	25.095
Total Assets Managed								140.443	129.737	122.463	115.921	140.505
For the Quarter Ended	Mar 2001	Jun 2001	Sep 2001	Dec 2001	Mar 2002	Jun 2002	Sep 2002	Dec 2002	Mar 2003	Jun 2003	Sep 2003	Dec 2003
Assets Managed by Source
LNC’s Investments and Cash:
Fixed maturity securities - available for sale	27.811	27.874	28.932	28.346	28.841	29.725	32.037	32.767	33.887	35.355	35.384	32.769
Equity securities - available for sale	0.560	0.534	0.478	0.470	0.439	0.419	0.397	0.337	0.249	0.257	0.243	0.199
Trading accounts												3.120
Other investments	7.374	7.388	7.379	7.297	7.084	7.016	6.928	6.895	6.872	6.980	6.796	6.689
Total LNC Investments(1)	35.744	35.796	36.788	36.113	36.363	37.160	39.363	40.000	41.008	42.592	42.423	42.778
Separate accounts	44.506	47.140	39.480	44.833	44.917	40.580	34.069	36.178	34.775	39.943	41.283	46.565
Cash and invested cash	2.015	1.502	1.996	3.095	1.700	2.265	1.600	1.691	1.635	1.946	1.961	1.575
Total LNC	82.266	84.438	78.264	84.042	82.979	80.005	75.031	77.869	77.419	84.480	85.667	90.917
Non-affiliate assets managed	38.416	40.109	35.889	38.421	39.853	39.531	35.650	38.052	37.501	42.917	45.176	49.587
Total Assets Managed	120.682	124.547	114.153	122.463	122.832	119.536	110.682	115.921	114.920	127.397	130.844	140.505
Assets Managed by Advisor
Investment Management
segment(1) (See page 27 for additional detail)	48.206	50.737	44.958	48.412	50.002	48.742	43.362	46.495	45.718	52.456	55.129	62.794
DLIA-Corp (Assets managed internally-see page 27)	36.324	36.018	37.337	38.119	37.171	38.476	40.416	41.104	42.130	43.857	42.984	43.024
Lincoln (UK)	7.012	7.027	6.474	6.847	6.772	6.753	6.068	6.351	5.962	6.726	6.887	7.668
Policy Loans (within business units)	1.947	1.947	1.943	1.940	1.918	1.906	1.899	1.946	1.929	1.920	1.910	1.924
Non-LNC Affiliates	27.193	28.818	23.442	27.145	26.970	23.659	18.937	20.026	19.181	22.439	23.933	25.095
Total Assets Managed	120.682	124.547	114.153	122.463	122.832	119.536	110.682	115.921	114.920	127.397	130.844	140.505

(1) Retail assets under management have been restated to include assets under administration beginning in January of 2000. See details on page 26.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 33

Consolidated Investment Data

Unaudited [Millions of Dollars]

For the Year Ended December 31									1999		2000		2001		2002		2003
Net Investment Income
Fixed maturity AFS securities									2,232.9		2,148.7		2,121.0		2,117.0		2,113.2
Equity AFS securities									20.1		19.5		17.6		15.4		12.3
Trading securities																	46.5
Mortgage loans on real estate									369.2		373.8		374.5		356.8		338.3
Real estate									64.1		51.8		49.5		47.4		43.9
Policy loans									116.5		125.0		125.3		134.5		123.2
Invested cash									110.3		87.2		68.4		37.6		7.8
Other investments									51.8		66.8		69.4		16.3		48.8
Investment revenue									2,964.8		2,872.8		2,825.9		2,725.0		2,734.0
Investment expense									(122.4	)	(88.7	)	(117.1	)	(93.1	)	(95.4	)
Net Investment Income									2,842.5		2,784.1		2,708.7		2,631.9		2,638.5
Gross-up of Tax Exempt Income									8.1		7.8		7.2		7.5		7.7
Adjusted Net Invest Income									2,850.5		2,791.9		2,715.9		2,639.4		2,646.2
Mean Invested Assets (Amortized Cost)									39,027.5		37,471.3		37,616.9		38,828.5		41,037.2
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets									7.30	%	7.45	%	7.22	%	6.80	%	6.45	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments									3.8		(17.5	)	(68.7	)	(177.2	)	(11.0	)
Gains (Losses) on Derivatives													(4.9	)	0.8		(1.6	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)									(1,018.1	)	477.7		183.7		557.6		39.8
Incr (Decr) on Derivatives													21.4		24.4		(6.3	)
Securities Available-for-Sale [Billions of Dollars]
Fixed Maturity Sec (Fair Value)									27.689		27.450		28.346		32.767		35.887
Fixed Maturity Sec (Amortized Cost)									28.357		27.373		27.956		31.103		33.743
Equity Securities (Fair Value)									0.604		0.550		0.470		0.337		0.201
Equity Securities (Amortized Cost)									0.481		0.458		0.444		0.334		0.177
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA									22.8	%	22.1	%	17.2	%	20.1	%	22.8	%
AA or better									29.8	%	29.2	%	23.6	%	25.8	%	29.3	%
BB or less									8.0	%	6.7	%	8.3	%	6.6	%	6.8	%
For the Quarter Ended	Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003
Net Investment Income
Fixed maturity AFS securities	530.1		522.5		523.8		533.6		537.0		542.3		546.8		536.6		487.5
Equity AFS securities	5.1		3.4		4.3		2.7		5.1		2.8		2.9		3.9		2.7
Trading securities																	46.5
Mortgage loans on real estate	92.4		89.5		90.2		90.8		86.4		81.6		84.3		94.5		77.9
Real estate	10.9		12.3		11.9		10.0		13.2		10.7		10.0		10.0		13.2
Policy loans	31.6		30.2		31.1		31.1		42.0		30.9		30.6		30.9		30.8
Invested cash	11.3		12.4		9.1		7.9		8.2		4.5		(1.7	)	3.2		1.7
Other investments	3.5		7.8		9.8		(1.2	)	(0.1	)	8.2		10.7		8.9		20.9
Investment revenue	684.8		678.1		680.2		675.0		691.7		681.0		683.5		688.2		681.3
Investment expense	(31.8	)	(23.3	)	(22.8	)	(22.7	)	(24.4	)	(26.3	)	(23.3	)	(23.8	)	(22.1	)
Net Investment Income	653.1		654.8		657.4		652.4		667.3		654.6		660.2		664.4		659.2
Gross-up of Tax Exempt Income	2.1		1.5		2.0		1.5		2.6		1.7		1.8		2.3		1.8
Adjusted Net Invest Income	655.2		656.3		659.4		653.9		669.9		656.4		662.0		666.8		661.0
Mean Invested Assets (Amortized Cost)	38,449.3		38,169.9		38,235.5		39,175.8		39,733.1		40,342.2		40,966.9		41,597.9		41,976.5
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets	6.82	%	6.88	%	6.90	%	6.68	%	6.74	%	6.51	%	6.46	%	6.41	%	6.30	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments	(20.0	)	(67.6	)	(52.7	)	(23.6	)	(33.3	)	(58.2	)	(1.1	)	6.4		42.0
Gains (Losses) on Derivatives	(4.6	)	0.1		0.3		0.1		0.2		(1.2	)	(0.6	)	5.9		(5.7	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)	(52.2	)	(163.9	)	293.8		491.9		(64.3	)	118.7		245.9		(313.4	)	(11.4	)
Incr (Decr) on Derivatives	1.2		1.2				4.6		1.0		(3.4	)	3.8		(5.6	)	(1.1	)
Securities Available-for-Sale [Billions of Dollars]
Fixed Maturity Sec (Fair Value)	28.346		28.841		29.725		32.037		32.767		33.887		35.355		35.384		35.887
Fixed Maturity Sec (Amortized Cost)	27.956		27.801		28.335		30.431		31.103		31.905		32.257		32.896		33.743
Equity Securities (Fair Value)	0.470		0.439		0.419		0.397		0.337		0.249		0.257		0.243		0.201
Equity Securities (Amortized Cost)	0.444		0.398		0.374		0.374		0.334		0.247		0.244		0.223		0.177
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA	17.2	%	17.8	%	18.2	%	20.0	%	20.1	%	20.3	%	19.5	%	20.4	%	22.8	%
AA or better	23.6	%	24.7	%	25.0	%	26.7	%	25.8	%	25.8	%	25.1	%	26.4	%	29.3	%
BB or less	8.3	%	7.5	%	6.4	%	6.6	%	6.6	%	6.6	%	6.6	%	6.9	%	6.8	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 34

Common Stock / Debt Information

Unaudited [Dollars per Share, except Percentages]

For the Year Ended December 31	1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003
Common Stock [1]
Highest Price	24.125		22.188		26.875		28.500		39.063		49.438		57.500		56.375		52.750		53.650		41.320
Lowest Price	17.344		17.313		17.313		20.375		24.500		33.500		36.000		22.625		38.000		25.150		24.730
Closing Price	21.750		17.500		26.875		26.250		39.063		40.907		40.000		47.313		48.570		31.580		40.370
Dividend Payout Ratio [2]	52.6	%	51.0	%	39.7	%	38.2	%	22.8	%	43.9	%	50.5	%	38.3	%	44.9	%	273.5	%	49.1	%
Yield [3]	3.8	%	4.9	%	3.4	%	3.7	%	2.7	%	2.7	%	2.9	%	2.6	%	2.6	%	4.2	%	3.5	%
Preferred Stock Dividend (Millions)	17.212		17.119		8.644		0.112		0.106		0.100		0.089		0.078		0.071		0.061		0.057
Debt: (End of Period)
Senior Debt Ratings
A.M. Best															a		a		a		a-
Fitch	AA-		AA-		AA-		AA-		AA-		A+		A+		A+		A+		A		A
Moody’s	A2		A1		A2		A2		A2		A2		A2		A3		A3		A3		A3
Standard and Poors	A+		A+		A		A		A		A-		A-		A-		A-		A-		A-
Claims Paying Ratings:
Lincoln Life - A.M. Best	A+		A+		A+		A+		A+		A		A		A		A		A+		A+
Lincoln Life - Fitch	AAA		AAA		AA+		AA+		AA+		AA+		AA+		AA		AA		AA		AA
Lincoln Life - Moody’s	A1		Aa3		Aa3		Aa3		Aa3		Aa3		Aa3		Aa3		Aa3		Aa3		Aa3
Lincoln Life - Standard & Poors	AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-
First Penn - A.M. Best*	A+		A+		A+		A+		A+		A		A		A		A		A+		A+
First Penn - Fitch									AA+		AA+		AA+		AA		AA		AA		AA
First Penn - Moody’s									A1		A1		A1		A1		A1		A1		A1
First Penn - Standard & Poors*	AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-
LLA of New York - A.M. Best*							A+		A+		A		A		A		A		A+		A+
LLA of New York - Fitch*									AA+		AA+		AA+		AA		AA		AA		AA
LLA of New York - Moody’s							A1		A1		A1		A1		A1		A1		A1		A1
LLA of New York - Standard & Poors*							AA-		AA-		AA-		AA-		AA-		AA-		AA-		AA-
Ratios
Debt to Total Capitalization [4]	21.1	%	19.9	%	22.8	%	18.8	%	17.0	%	21.2	%	23.2	%	20.8	%	21.3	%	23.4	%	20.7	%
Debt to Equity [4]	26.7	%	24.9	%	29.5	%	23.1	%	20.5	%	26.9	%	30.3	%	26.3	%	27.0	%	30.5	%	26.1	%

For the Quarter Ended

Mar 2001

Jun 2001

Sep 2001

Dec 2001

Mar 2002

Jun 2002

Sep 2002

Dec 2002

Mar 2003

Jun 2003

Sep 2003

Dec 2003

Common Stock:

Highest Price

48.250

52.300

52.750

49.450

53.650

52.540

42.080

35.950

35.700

37.500

38.640

41.320

Lowest Price

38.000

41.280

41.000

40.000

47.200

40.750

29.120

25.150

24.730

27.870

34.630

35.410

Closing Price

42.470

51.750

46.630

48.570

50.730

42.000

30.550

31.580

28.000

35.630

35.380

40.370

Yield [3]

2.9

%

2.4

%

2.6

%

2.6

%

2.5

%

3.0

%

4.2

%

4.2

%

4.8

%

3.8

%

3.8

%

3.5

%

Preferred Stock Dividend (Millions)

0.019

0.018

0.017

0.017

0.016

0.015

0.015

0.015

0.014

0.016

0.014

0.013

Debt: (End of Period)

Senior Debt Ratings

A.M. Best

a

a

a

a

a

a

a

a

a

a

a

a-

Fitch

A+

A+

A+

A+

A+

A+

A

A

A

A

A

A

Moody’s

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

Standard and Poors

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

Claims Paying Ratings:

Lincoln Life - A.M. Best

A

A

A

A

A

A+

A+

A+

A+

A+

A+

A+

Lincoln Life - Fitch

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

Lincoln Life - Moody’s

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Lincoln Life - Standard & Poors

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

First Penn - A.M. Best*

A

A

A

A

A

A+

A+

A+

A+

A+

A+

A+

First Penn - Fitch

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

First Penn - Moody’s

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

First Penn - Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

LLA of New York - A.M. Best*

A

A

A

A

A

A+

A+

A+

A+

A+

A+

A+

LLA of New York - Fitch*

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

LLA of New York - Moody’s

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

LLA of New York - Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

Ratios

Debt to Total Capitalization [4]

22.1

%

21.1

%

21.0

%

21.3

%

22.5

%

22.5

%

23.0

%

23.4

%

23.1

%

22.3

%

21.5

%

20.7

%

Debt to Equity [4]

28.4

%

26.7

%

26.6

%

27.0

%

29.1

%

29.0

%

29.9

%

30.5

%

30.0

%

28.7

%

27.5

%

26.1

%

* Rating based on affiliation with Lincoln Life

[1] Stock prices include 2-for-1 splits in June 1993 and June 1999

[2] Indicated dividend divided by net income

[3] Indicated dividend divided by the closing price

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

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

PAGE 35