Exhibit 99.2

Lincoln Statistical Report

Fourth Quarter

2004

Lincoln Financial Group

This document is dated February 9, 2005. It may not be accurate after such date and LNC

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

Lincoln Financial Group

Statistical Report

Fourth Quarter

2004

Table of Contents

LFG Analyst Coverage
Notes
Financial Highlights	1 - 5
Eleven-Year Summary	6
Quarterly Summary	7
Reconciliation of Business Segments to Consolidated Income Statement	8 - 9
Statement of Consolidated Income	10 - 11
Reconciliation of Business Segments to Consolidated Balance Sheets	12 - 13
Five-Year Comparative Balance Sheet	14
Quarterly Balance Sheet	15
Lincoln Retirement
Income Statement & Operational Data	16 - 17
Account Value Roll Forward	18 - 19
Life Insurance
Income Statement	20 - 21
Operational Data	22
Account Value Roll Forward	23 - 24
Investment Management
Income Statement	25 - 26
Assets Under Management Roll Forward	27 - 28
Lincoln UK
Income Statement	29 - 30
Operational Data	31
Other Operations	32
Consolidated
Domestic Retail Deposits / Account Balances	33
Total Domestic Net Flows	33
Assets Managed	34
Investment Data	35
Common Stock / Debt Information	36

12/31/2004 ii

NOTES

Definitions and Presentation

“Income from Operations,” “Operating Revenue,” and “Return on Capital” are non-GAAP financial measures and do not replace GAAP net income (loss) and revenues. Detailed reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure is included in this statistical supplement.

• We exclude the after-tax effects of the following items from GAAP net income to arrive at income from operations:

• Realized gains 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 and blocks of business,

• Loss on early retirement of debt, including subordinated debt

• 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 and blocks of business,

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

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

Income from operations, operating revenue, and return on capital are internal measures used by LNC in the management of its operations. Management believes that these performance measures explain the results of operations of LNC’s ongoing operations in a manner that allows for a better understanding of the underlying trends in LNC’s current business because the excluded items are either unpredictable and/or not related to decisions regarding the underlying businesses.

• Certain operating and statistical measures are included in this report to provide supplemental data regarding the performance of LNC’s current business. These measures include deposits, sales, net flows, first year premium, inforce, spread, and assets under management.

• On September 24, 2004, LNC completed the sale of its London-based international investment unit to its management. Certain metrics pages (2, 27A, 28A, 33A, 34A) have been presented excluding the investment assets managed by the London-based international investment unit to provide more consistent comparisons between periods.

• Certain reclassifications have been made to the prior periods presented to conform to the December 31, 2004 presentation.

Accounting Changes

• Effective January 1, 2004 LNC Implemented the Statement of Position 03-1, “Accounting and reporting by Insurance Enterprises for certain nontraditional long-duration contracts and for Separate Accounts (“the SOP”). Among other things, the SOP establishes standards for computing reserves for products with guaranteed benefits such as GMDB and for certain riders for Universal Life contracts. The effects of implementing the SOP, including any related effects on DAC from changes in estimated gross profits resulting from implementing the provisions of the SOP were recorded as a cumulative effect adjustment. The first quarter of 2004 resulted in a cumulative effect adjustment of $24.5 million ($21.8 million in Lincoln Retirement and $2.7 million in Life Insurance segments).

• 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 restated 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. Years prior to 2000 presented in this statistical report have not been restated.

12/31/2004 PAGE 1

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended December 31											For the Twelve Months Ended December 31
	2004 Amount			2003 Amount			Change			% Change		2004 Amount			2003 Amount			Change			% Change
Net Income	$	189.9		$	194.3		$	(4.5	)	(2.3	)%	$	707.0		$	511.9		$	195.1		38.1	%
Less:
Realized gains (losses) on investments		3.9			42.0			(38.0	)				(30.0	)		(11.0	)		(19.0	)
Gains (losses) on derivatives		0.3			(5.7	)		6.0					(7.4	)		(1.6	)		(5.8	)
Net gain (loss) on reinsurance derivative/trading account securities		(0.8	)		2.7			(3.5	)				(0.6	)		2.7			(3.3	)
Reserve development/ amortization of related deferred gain		0.2			0.2								0.9			(18.5	)		19.4
Gain on sale of subsidiaries/ businesses		0.4						0.4					61.9						61.9
Restructuring charges					(9.8	)		9.7					(13.9	)		(35.0	)		21.1
Loss on early retirement of subordinated debt		(4.1	)					(4.1	)				(4.1	)		(3.7	)		(0.5	)
Mark-to-market adjustment on reclassification from AFS to trading account securities					241.5			(241.5	)							241.5			(241.5	)
Cumulative effect of accounting change					(255.2	)		255.2					(24.5	)		(255.2	)		230.7
Income from Operations	$	189.9		$	178.7		$	11.3		6.3	%	$	724.8		$	592.8		$	132.0		22.3	%
Net Income - By Segment
Lincoln Retirement	$	104.6		$	109.9		$	(5.3	)	(4.8	)%	$	361.4		$	300.5		$	60.9		20.3	%
Life Insurance		72.4			82.2			(9.7	)	(11.8	)%		264.0			252.1			11.9		4.7	%
Investment Management		5.8			18.2			(12.4	)	(68.0	)%		88.4			30.2			58.2		192.8	%
Lincoln UK		17.1			12.2			4.9		40.3	%		50.1			42.9			7.3		17.0	%
Corporate & Other		(10.1	)		(28.1	)		18.0					(56.9	)		(113.7	)		56.8
Total	$	189.9		$	194.3		$	(4.5	)	(2.3	)%	$	707.0		$	511.9		$	195.1		38.1	%
Income from Operations - By Segment
Lincoln Retirement	$	100.5		$	94.1		$	6.4		6.8	%	$	414.6		$	331.9		$	82.7		24.9	%
Life Insurance		74.0			73.4			0.6		.8	%		280.3			264.5			15.8		6.0	%
Investment Management		5.2			19.0			(13.8	)	(72.6	)%		43.6			34.5			9.1		26.4	%
Lincoln UK		16.6			13.0			3.5		26.8	%		43.5			43.6			(0.1	)	(.2	)%
Corporate & Other		(6.3	)		(20.8	)		14.5					(57.2	)		(81.8	)		24.6
Total	$	189.9		$	178.7		$	11.3		6.3	%	$	724.8		$	592.8		$	132.0		22.3	%
Earnings per share (diluted)
Net Income	$	1.07		$	1.08							$	3.95		$	2.85		$	1.09		38.2	%
Less:
Realized gains (losses) on investments	$	0.02		$	0.23		$	(0.20	)			$	(0.17	)	$	(0.06	)	$	(0.12	)
Gains (losses) on derivatives				$	(0.03	)	$	0.03				$	(0.04	)	$	(0.01	)	$	(0.03	)
Net gain (loss) on reinsurance derivative/trading account securities				$	0.01		$	(0.01	)						$	0.01		$	(0.01	)
Reserve development/ amortization of related deferred gain															$	(0.10	)	$	0.10
Gain on sale of subsidiaries/ businesses												$	0.35					$	0.35
Restructuring charges				$	(0.05	)	$	0.05				$	(0.08	)	$	(0.20	)	$	0.12
Loss on early retirement of subordinated debt	$	(0.02	)				$	(0.02	)			$	(0.02	)	$	(0.02	)
Mark-to-market adjustment on reclassification from AFS to trading account securities				$	1.34		$	(1.34	)						$	1.35		$	(1.35	)
Cumulative effect of accounting change				$	(1.41	)	$	1.41				$	(0.14	)	$	(1.42	)	$	1.28
Income from Operations	$	1.07		$	0.99		$	0.08		8.1	%	$	4.05		$	3.30		$	0.75		22.7	%
Revenue	$	1,347.5		$	1,702.6		$	(355.1	)	(20.9	)%	$	5,371.3		$	5,283.9		$	87.4		1.7	%
Less:
Realized gains (losses) on investments		7.2			64.8			(57.6	)				(45.7	)		(16.7	)		(29.0	)
Gains (losses) on derivatives		(0.4	)		(8.8	)		8.4					(11.6	)		(2.5	)		(9.1	)
Gain (loss) on reinsurance derivative/trading account securities		(1.4	)		4.1			(5.6	)				(1.0	)		4.1			(5.1	)
Amortization of deferred gain-reserve development		0.3			0.3			0.1					1.3			3.6			(2.3	)
Mark-to-market adjustment on reclassification from AFS to trading account securities					371.5			(371.5	)							371.5			(371.5	)
Gain on sale of subsidiaries/ businesses		0.6						0.6					135.0						135.0
Operating Revenue	$	1,341.2		$	1,270.7		$	70.5		5.5	%	$	5,293.2		$	4,923.9		$	369.2		7.5	%
Revenue - By Segment
Lincoln Retirement	$	545.1		$	634.2		$	(89.2	)	(14.1	)%	$	2,085.1		$	2,054.7		$	30.4		1.5	%
Life Insurance		502.0			505.0			(3.0	)	(0.6	)%		1,936.9			1,905.5			31.4		1.6	%
Investment Management		128.3			134.3			(5.9	)	(4.4	)%		644.9			474.4			170.5		35.9	%
Lincoln UK		90.0			77.1			12.9		16.7	%		352.5			273.5			79.1		28.9	%
Corporate & Other		82.0			351.9			(269.9	)	(76.7	)%		351.9			575.8			(223.9	)	(38.9	)%
Total	$	1,347.5		$	1,702.6		$	(355.1	)	(20.9	)%	$	5,371.3		$	5,283.9		$	87.4		1.7	%
Operating Revenue- By Segment
Lincoln Retirement	$	539.4		$	506.6		$	32.8		6.5	%	$	2,128.0		$	1,985.1		$	143.0		7.2	%
Life Insurance		503.7			488.2			15.5		3.2	%		1,952.9			1,906.1			46.9		2.5	%
Investment Management		127.7			133.8			(6.0	)	(4.5	)%		534.9			474.0			60.8		12.8	%
Lincoln UK		89.3			78.4			10.9		13.9	%		342.2			274.5			67.7		24.7	%
Corporate & Other		81.1			63.7			17.3		27.2	%		335.1			284.2			50.9		17.9	%
Total	$	1,341.2		$	1,270.7		$	70.5		5.5	%	$	5,293.2		$	4,923.9		$	369.2		7.5	%

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.

12/31/2004 PAGE 2

Financial Highlights

Unaudited [Billions of Dollars]

	For the Quarter Ended December 31									For the Twelve Months Ended December 31
	2004 Amount		2003 Amount		Change			% Change		2004 Amount		2003 Amount		Change			% Change
Operational Data by Segment
Lincoln Retirement
Gross Deposits	$	2.387	$	1.879	$	0.508		27.0	%	$	9.020	$	6.244	$	2.776		44.5	%
Net Flows		0.794		0.536		0.258		48.2	%		2.922		1.007		1.915		190.1	%
Account Values (Gross)		64.788		57.007		7.781		13.6	%		64.788		57.007		7.781		13.6	%
Account Values (Net of Reinsurance)		62.491		54.654		7.837		14.3	%		62.490		54.653		7.837		14.3	%
Life Insurance Segment
First Year Premium- Retail (in millions)	$	231.160	$	243.516	$	(12.355	)	(5.1	)%	$	812.565	$	795.673	$	16.892		2.1	%
First Year Premium- COLI (in millions)		20.376		29.567		(9.191	)	(31.1	)%		73.657		125.619		(51.962	)	(41.4	)%
First Year Premium- Total (in millions)		251.537		273.083		(21.546	)	(7.9	)%		886.222		921.292		(35.070	)	(3.8	)%
In-force		304.579		281.340		23.239		8.3	%		304.579		281.340		23.239		8.3	%
Account Values		14.382		13.420		0.962		7.2	%		14.382		13.420		0.962		7.2	%
Investment Management Segment
Retail Deposits	$	2.519	$	1.666	$	0.853		51.2	%	$	8.992	$	5.583	$	3.409		61.1	%
Retail Net Flows		1.170		0.584		0.586		100.3	%		3.136		1.271		1.865		146.8	%
Institutional In-flows		2.750		1.978		0.772		39.0	%		11.289		5.859		5.429		92.7	%
Institutional Net Flows		2.095		1.061		1.035		97.6	%		7.178		2.478		4.700		189.7	%
Total Net Flows		3.265		1.645		1.620		98.5	%		10.314		3.749		6.566		175.2	%
Assets Under Management- Retail and Inst’l		56.029		62.794		(6.765	)	(10.8	)%		56.029		62.794		(6.765	)	(10.8	)%
Assets Under Management - Insurance-related Assets		43.980		43.024		0.956		2.2	%		43.980		43.024		0.956		2.2	%
Assets Under Management - Total Segment		100.009		105.818		(5.809	)	(5.5	)%		100.009		105.818		(5.809	)	(5.5	)%
Consolidated
Domestic Retail Deposits	$	5.290	$	4.012	$	1.278		31.9	%	$	19.280	$	13.222	$	6.058		45.8	%
Domestic Retail Account Balances		103.784		90.593		13.191		14.6	%		103.784		90.593		13.191		14.6	%
Domestic Retail Net Flows		2.527		1.464		1.063		72.6	%		7.335		3.719		3.616		97.2	%
Domestic Deposits		8.038		5.943		2.095		35.3	%		30.479		18.931		11.548		61.0	%
Domestic Net Flows		4.622		2.508		2.115		84.3	%		14.545		6.195		8.350		134.8	%
Assets Under Management		144.340		140.641		3.698		2.6	%		144.340		140.641		3.698		2.6	%
Operational Data (excluding Assets Managed by Delaware’s London-based International Investment Unit)
Investment Management Segment
Retail Deposits	$	2.519	$	1.664	$	0.855		51.4	%	$	8.987	$	5.572	$	3.415		61.3	%
Retail Net Flows		1.170		0.598		0.572		95.6	%		3.160		1.325		1.835		138.5	%
Institutional In-flows		2.750		0.874		1.876		214.6	%		6.637		3.320		3.317		99.9	%
Institutional Net Flows		2.095		0.457		1.639		358.9	%		3.884		1.433		2.452		171.2	%
Total Net Flows		3.265		1.055		2.211		209.6	%		7.045		2.757		4.287		155.5	%
Assets Under Management- Retail and Inst’l		56.029		45.049		10.981		24.4	%		56.029		45.049		10.980		24.4	%
Assets Under Management - Insurance-related Assets		43.980		43.024		0.956		2.2	%		43.980		43.024		0.956		2.2	%
Assets Under Management - Total Segment		100.009		88.072		11.937		13.6	%		100.009		88.072		11.936		13.6	%
Consolidated
Domestic Retail Deposits	$	5.290	$	4.010	$	1.280		31.9	%	$	19.274	$	13.210	$	6.064		45.9	%
Domestic Retail Account Balances		103.784		90.271		13.514		15.0	%		103.784		90.271		13.514		15.0	%
Domestic Retail Net Flows		2.527		1.478		1.049		71.0	%		7.359		3.773		3.586		95.0	%
Domestic Deposits		8.038		4.837		3.201		66.2	%		25.822		16.380		9.442		57.6	%
Domestic Net Flows		4.622		1.918		2.705		141.1	%		11.274		5.203		6.071		116.7	%
Assets Under Management		144.340		122.896		21.444		17.4	%		144.340		122.896		21.444		17.4	%

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.

12/31/2004 PAGE 3

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended December 31											For the Twelve Months Ended December 31
	2004 Amount			2003 Amount			Change			% Change		2004 Amount			2003 Amount			Change			% Change
Balance Sheet Assets - End of Period	$	116,219.3		$	106,744.9		$	9,474.4		8.9	%	$	116,219.3		$	106,744.9		$	9,474.4		8.9	%
Shareholders’ Equity
Beg of Period (including AOCI)	$	5,970.8		$	5,586.4		$	384.5				$	5,811.6		$	5,347.5		$	464.1
End of Period (including AOCI)		6,175.6			5,811.6			364.0					6,175.6			5,811.6			364.0
End of Period (excluding AOCI)		5,244.9			4,942.6			302.3					5,244.9			4,942.6			302.3
Average Equity (excluding AOCI)		5,185.0			4,888.2			296.8					5,075.5			4,756.7			318.8
Return on Equity
Net Income/Average Equity (excluding AOCI)		14.6	%		15.9	%		(1.3	)%				13.9	%		10.8	%		3.2	%
Inc from Operations/Average Equity (excluding AOCI)		14.7	%		14.6	%		0.0	%				14.3	%		12.5	%		1.8	%
Return on Capital
Inc from Operations/Average Capital		12.1	%		12.0	%		0.1	%				11.7	%		10.2	%		1.5	%
Common Stock Outstanding
Average for the Period - Diluted		176.7			180.4			(3.7	)	(2.1	)%		179.0			179.4			(0.4	)	(0.2	)%
End of Period - Assuming Conv of Pref.		173.8			178.5			(4.7	)	(2.6	)%		173.8			178.5			(4.7	)	(2.6	)%
End of Period - Diluted		176.1			180.7			(4.6	)	(2.5	)%		176.1			180.7			(4.6	)	(2.5	)%
Book Value (including AOCI)	$	35.53		$	32.56		$	2.97		9.1	%	$	35.53		$	32.56		$	2.97		9.1	%
Book Value (excluding AOCI)	$	30.17		$	27.69		$	2.48		9.0	%	$	30.17		$	27.69		$	2.48		9.0	%
Cash Returned to Shareholders
Share Repurchase - dollar amount	$	64.0			—		$	64.0				$	350.2			—		$	350.2
Dividends Declared to Shareholders		63.8			63.0			0.8					250.1			243.5			6.6
Total Cash Returned to Shareholders	$	127.8		$	63.0		$	64.8				$	600.3		$	243.5		$	356.8
Share Repurchase - number of shares		1.379			—			1.379					7.612			—			7.612
Dividend Declared on Common Stock - per share	$	0.365		$	0.350		$	0.015		4.3	%	$	1.415		$	1.355		$	0.060		4.4	%

	For the Quarter Ended December 31						For the Twelve Months Ended December 31
	2004 Amount			2003 Amount			2004 Amount			2003 Amount
Comprehensive Income
Net Income	$	189.9		$	194.3		$	707.0		$	511.9
Foreign Currency Translation		37.4			42.0			45.3			58.2
Net Unrealized Gains (Losses) on Securities		42.8			(11.4	)		29.8			39.8
Gains (Losses) on Derivatives		(5.8	)		(1.1	)		(8.1	)		(6.3	)
Minimum Pension Liability Adjustment		(4.8	)		43.9			(5.4	)		42.7
Comprehensive Income	$	259.5		$	267.8		$	768.6		$	646.4

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.

12/31/2004 PAGE 4

Financial Highlights

Unaudited [Millions of Dollars]

	For the Quarter Ended December 31											For the Twelve Months Ended December 31
	2004 Amount			2003 Amount			Change			% Change		2004 Amount			2003 Amount			Change			% Change
Consolidated Condensed Statements of Income
Revenue:
Insurance Premiums and Fees	$	498.7		$	454.1		$	44.6		9.8	%	$	1,885.2		$	1,698.4		$	186.7		11.0	%
Investment Advisory Fees		56.0			58.3			(2.3	)	(3.9	)%		252.5			205.0			47.5		23.2	%
Net Investment Income		674.1			659.2			14.9		2.3	%		2,704.1			2,638.5			65.6		2.5	%
Realized Gains (Losses) on Investments		7.2			64.8			(57.6	)				(45.7	)		(16.7	)		(29.0	)
Gains (Losses) on Derivatives		(0.4	)		(8.8	)		8.4					(11.6	)		(2.5	)		(9.1	)
Gain on Reinsurance Derivative/Trading Account Securities		(1.4	)		4.1			(5.6	)				(1.0	)		4.1			(5.1	)
Amortization of Deferred Gain on Indemnity Reinsurance		19.1			17.4			1.7		10.0	%		87.0			72.3			14.7		20.3	%
Gain on Sale of Subsidiaries/ Businesses		0.6						0.6					135.0						135.0
Mark-to-Market Adjustment on Reclassification from AFS to Trading Account Securities					371.5			(371.5	)							371.5			(371.5	)
Other		93.7			82.0			11.7		14.3	%		365.7			313.2			52.5		16.7	%
Total Revenue		1,347.5			1,702.6			(355.1	)	(20.9	)%		5,371.3			5,283.9			87.4		1.7	%
Benefits and Expenses:
Benefits		580.9			577.5			3.4		0.6	%		2,303.7			2,414.4			(110.8	)	(4.6	)%
Underwriting, Acquisition, Insurance and Other Expenses		517.5			479.3			38.2		8.0	%		2,032.0			1,821.9			210.1		11.5	%
Total Benefits and Expenses		1,098.4			1,056.8			41.6		3.9	%		4,335.6			4,236.3			99.3		2.3	%
Income before Federal Taxes		249.1			645.7			(396.7	)				1,035.7			1,047.6			(11.9	)
Federal Income Taxes		59.2			196.2			(137.0	)				304.1			280.4			23.7
Income before Accounting Changes		189.9			449.6			(259.7	)				731.5			767.2			(35.6	)
Cumulative Effect of Accounting Changes		—			(255.2	)		255.2					(24.5	)		(255.2	)		230.7
Net Income	$	189.9		$	194.3		$	(4.5	)	(2.3	)%	$	707.0		$	511.9		$	195.1		38.1	%
Income before Tax and Cumulative Effect of Accounting Changes By Segment
Lincoln Retirement	$	131.5		$	241.4		$	(109.8	)			$	489.2		$	463.0		$	26.2
Life Insurance		107.1			120.3			(13.2	)				392.0			365.4			26.6
Investment Management		7.0			15.2			(8.2	)				171.2			34.6			136.6
Lincoln UK		26.2			17.2			9.0					77.3			64.5			12.9
Corporate and Other		(22.8	)		251.7			(274.5	)				(94.1	)		120.0			(214.1	)
Income before Tax and Cumulative Effect of Accounting Changes	$	249.1		$	645.7		$	(396.7	)			$	1,035.7		$	1,047.6		$	(11.9	)
Pre-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	$	7.1		$	38.9		$	(31.8	)			$	(43.8	)	$	(19.1	)	$	(24.7	)
Life Insurance		(1.0	)		17.4			(18.4	)				(13.3	)					(13.4	)
Investment Management		0.1			0.5			(0.4	)				(0.7	)		0.4			(1.1	)
Lincoln UK		0.7			(1.3	)		2.0					0.2			(1.1	)		1.3
Corporate and Other		(0.2	)		0.5			(0.7	)				0.4			0.6			(0.2	)
Pre-Tax Realized Gains (Losses) on Investments and Derivatives	$	6.7		$	56.0		$	(49.3	)			$	(57.2	)	$	(19.2	)	$	(38.1	)
After-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	$	4.5		$	25.3		$	(20.8	)			$	(28.5	)	$	(12.4	)	$	(16.0	)
Life Insurance		(0.7	)		11.3			(12.0	)				(8.7	)					(8.7	)
Investment Management		0.1			0.3			(0.2	)				(0.5	)		0.3			(0.7	)
Lincoln UK		0.6			(0.9	)		1.5								(0.7	)		0.7
Corporate and Other		(0.2	)		0.2			(0.4	)				0.2			0.3			(0.0	)
After-Tax Realized Gains (Losses) on Investments and Derivatives	$	4.3		$	36.3		$	(32.0	)			$	(37.4	)	$	(12.6	)	$	(24.8	)

* 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.

12/31/2004 PAGE 5

Financial Highlights

Unaudited [Millions of Dollars]

	As of
	December 2004 Amount			December 2003 Amount			Change			% Change
Consolidated Condensed Balance Sheets
Assets:
Investments:
Available for Sale Securities:
Fixed Maturities	$	34,700.6		$	32,769.5		$	1,931.1		5.9	%
Equities		161.1			199.1			(38.0	)	(19.1	)%
Trading Securities		3,237.4			3,120.1			117.3		3.8	%
Mortgage Loans on Real Estate		3,856.9			4,195.0			(338.1	)	(8.1	)%
Real Estate		191.4			112.9			78.5		69.5	%
Policy Loans		1,870.6			1,924.4			(53.8	)	(2.8	)%
Other Long-Term Investments		489.3			456.7			32.6		7.1	%
Total Investments		44,507.3			42,777.6			1,729.6		4.0	%
Assets Held in Separate Accounts		55,204.6			46,565.2			8,639.4		18.6	%
Other Assets		16,507.4			17,402.1			(894.7	)	(5.1	)%
Total Assets	$	116,219.3		$	106,744.9		$	9,474.4		8.9	%
Liabilities and Shareholders’ Equity
Liabilities:
Insurance and Investment Contract Liabilities	$	47,402.5		$	47,318.1		$	84.5		0.2	%
Liabilities Related to Separate Accounts		55,204.6			46,565.2			8,639.4		18.6	%
Other Liabilities		7,436.6			7,050.0			386.5		5.5	%
Total Liabilities		110,043.7			100,933.2			9,110.4		9.0	%
Shareholders’ Equity:
Net Unrealized Gains on Securities and Derivatives		836.9			815.1			21.7		2.7	%
Minimum Pension Liability Adjustment		(60.5	)		(55.1	)		(5.4	)	(9.8	)%
Foreign Currency Translation Adjustment		154.3			109.0			45.3		41.6	%
Other Shareholders’ Equity		5,244.9			4,942.6			302.3		6.1	%
Total Shareholders’ Equity		6,175.6			5,811.6			364.0		6.3	%
Total Liabilities and Shareholders’ Equity	$	116,219.3		$	106,744.9		$	9,474.4		8.9	%
	As of
	December 2004 Amount			December 2003 Amount			Change			% Change
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	$	3,147.1		$	2,939.7		$	207.4		7.1	%
Deferral		844.8			639.6			205.3		32.1	%
Amortization		(490.8	)		(318.0	)		(172.8	)	(54.3	)%
Included in Total Benefits and Expenses		354.1			321.6			32.5		10.1	%
Adjustment related to realized (gains) losses on available-for-sale securities		(45.7	)		(50.2	)		4.5		9.0	%
Adjustment related to unrealized (gains) losses on available-for-sale securities		(14.7	)		(126.1	)		111.4		88.4	%
Foreign currency translation adjustment		42.9			62.0			(19.1	)	(30.8	)%
Cumulative effect of accounting change		(38.8	)		—			(38.8	)
Balance at end-of-period	$	3,445.0		$	3,147.1		$	297.8		9.5	%
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	$	1,196.5		$	1,250.1		$	(53.6	)	(4.3	)%
Amortization		(120.3	)		(80.2	)		(40.1	)	(50.0	)%
Foreign currency translation adjustment		19.6			26.6			(7.0	)	(26.2	)%
Cumulative effect of accounting change		(0.6	)		—			(0.6	)
Balance at end-of-period	$	1,095.2		$	1,196.5		$	(101.3	)	(8.5	)%

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.

12/31/2004 PAGE 6

Eleven-Year Summary

Unaudited [Millions of Dollars, except Common Share Data]

For the Year Ended December 31	2004			2003			2002			2001			2000			1999			1998			1997			1996			1995			1994			Ten-year compound annual growth
Revenue
Lincoln Retirement	$	2,085.1		$	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		3.3	%
Life Insurance		1,936.9			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		15.3	%
Investment Management		644.9			474.4			413.1			451.2			513.7			514.9			509.6			459.1			410.5			290.5			—
Lincoln UK		352.5			273.5			277.2			290.7			433.8			446.6			439.7			427.3			393.2			351.5			216.0		5.0	%
Corporate & Other		351.9			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
Total Revenue	$	5,371.3		$	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		3.2	%
Net Income
Lincoln Retirement	$	361.4		$	300.5		$	53.7		$	265.1		$	354.7		$	291.5		$	273.8		$	263.3		$	204.3		$	248.8		$	142.4		9.8	%
Life Insurance		264.0			252.1			206.1			229.3			246.0			211.5			127.5			39.1			51.8			40.6			34.2		22.7	%
Investment Management		88.4			30.2			(1.4	)		(9.0	)		17.9			51.6			44.4			25.1			25.0			27.4			—
Lincoln UK		50.1			42.9			37.7			66.8			(15.1	)		(18.2	)		71.7			(106.8	)		66.0			45.7			18.5
Corporate & Other		(56.9	)		(113.7	)		(247.3	)		(6.6	)		(18.2	)		(76.1	)		(7.6	)		(198.4	)		9.3			(61.0	)		(29.6	)
Total Net Inc from Cont Oper		707.0			511.9			48.8			545.7			585.3			460.4			509.8			22.2			356.4			301.4			165.5		15.6	%
Discontinued Operations		—			—			—			—			—			—			—			911.8			157.2			180.8			184.4
Total Net Income	$	707.0		$	511.9		$	48.8		$	545.7		$	585.3		$	460.4		$	509.8		$	934.0		$	513.6		$	482.2		$	349.9		7.3	%
Income from Operations
Lincoln Retirement	$	414.6		$	331.9		$	183.4		$	316.2		$	358.1		$	299.4		$	262.4		$	223.0		$	174.6		$	175.2		$	142.4		11.3	%
Life Insurance		280.3			264.5			269.0			275.3			256.7			212.0			149.2			39.9			41.2			35.4			34.2		23.4	%
Investment Management		43.6			34.5			1.8			(6.1	)		25.0			61.0			43.9			18.1			18.6			20.6			—
Lincoln UK		43.5			43.6			34.6			58.1			59.2			(13.9	)		70.9			(108.3	)		66.0			45.9			17.2		9.7	%
Corporate & Other		(57.2	)		(81.8	)		(57.2	)		1.0			(16.0	)		(83.1	)		4.0			(223.3	)		(1.7	)		(136.2	)		24.8
Total Income from Cont Oper		724.8			592.8			431.6			644.4			683.0			475.5			530.4			(50.6	)		298.8			140.8			218.6		12.7	%
Discontinued Operations		—			—			—			—			—			—			—			110.1			135.3			165.6			171.1
Income from Operations	$	724.8		$	592.8		$	431.6		$	644.4		$	683.0		$	475.5		$	530.4		$	59.4		$	434.1		$	306.5		$	389.7		6.4	%
OTHER DATA
Assets	$	116,219.3		$	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		9.1	%
Shareholders’ Equity
Including AOCI	$	6,175.6		$	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		7.3	%
Excluding AOCI	$	5,244.9		$	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		4.6	%
Average Equity (excluding AOCI)	$	5,075.5		$	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		4.4	%
Common Shares Outstanding (millions)
End of Period - Diluted		176.1			180.7			178.5			189.3			193.2			197.0			203.4			204.7			209.5			210.3			208.3
Average for the Period - Diluted		179.0			179.4			184.6			191.5			193.0			200.4			203.3			208.0			208.0			210.7			208.7
Per Share Data (Diluted)
Net Income from Continuing Operations	$	3.95		$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	0.11		$	1.71		$	1.43		$	0.79		17.4	%
Net Income	$	3.95		$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	4.49		$	2.47		$	2.29		$	1.68		8.9	%
Income (Loss) from Continuing Operations	$	4.05		$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61		$	(0.24	)	$	1.44		$	0.67		$	1.05		14.5	%
Income from Operations	$	4.05		$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61		$	0.29		$	2.09		$	1.45		$	1.87		8.0	%
Shareholders’ Equity Per Share
Shareholders’ Equity (Including AOCI)	$	35.53		$	32.56		$	30.10		$	28.32		$	26.05		$	21.76		$	26.59		$	24.63		$	21.50		$	20.95		$	14.67		9.2	%
Shareholders’ Equity (Excluding accum AOCI)	$	30.17		$	27.69		$	25.97		$	27.39		$	25.88		$	23.98		$	23.62		$	22.25		$	19.19		$	17.55		$	16.17		6.4	%
Dividends Declared (Common Stock)	$	1.415		$	1.36		$	1.30		$	1.24		$	1.18		$	1.12		$	1.06		$	1.00		$	0.94		$	0.88		$	0.83		5.5	%
Return on Equity
Net Income/Average Equity		13.9	%		10.8	%		1.0	%		10.8	%		12.1	%		9.6	%		11.0	%		22.4	%		13.3	%		15.5	%		10.6	%
Inc from Operations/Average Equity		14.3	%		12.5	%		8.7	%		12.7	%		14.1	%		9.9	%		11.4	%		1.4	%		11.3	%		9.8	%		11.8	%
Market Value of Common Stock
High for the Year	$	50.38		$	41.32		$	53.65		$	52.75		$	56.38		$	57.50		$	49.44		$	39.06		$	28.50		$	26.88		$	22.19
Low for the Year	$	40.06		$	24.73		$	25.15		$	38.00		$	22.63		$	36.00		$	33.50		$	24.50		$	20.38		$	17.31		$	17.31
Close for the Year	$	46.68		$	40.37		$	31.58		$	48.57		$	47.31		$	40.00		$	40.91		$	39.06		$	26.25		$	26.88		$	17.50		10.3	%

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.

12/31/2004 PAGE 7

Quarterly Summary

Unaudited [Millions of Dollars, except Common Share Data]

For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Revenue
Lincoln Retirement	$	451.4		$	397.8		$	486.4		$	536.3		$	634.2		$	516.5		$	524.5		$	499.0		$	545.1
Life Insurance		479.6			457.5			474.0			468.9			505.0			479.2			478.9			476.8			502.0
Investment Management		102.2			102.1			116.4			121.7			134.3			132.9			140.8			242.9			128.3
Lincoln UK		51.8			68.9			60.2			67.3			77.1			75.8			91.0			95.7			90.0
Corporate & Other		103.6			73.0			76.1			74.8			351.9			54.7			123.6			91.6			82.0
Total Revenue	$	1,188.6		$	1,099.3		$	1,213.2		$	1,268.8		$	1,702.6		$	1,259.0		$	1,358.7		$	1,406.1		$	1,347.5
Net Income(Loss)
Lincoln Retirement	$	5.0		$	6.9		$	81.7		$	102.0		$	109.9		$	71.8		$	94.2		$	90.8		$	104.6
Life Insurance		59.5			48.5			65.6			55.8			82.2			67.5			72.0			52.0			72.4
Investment Management		1.1			1.0			4.6			6.3			18.2			10.0			14.5			58.1			5.8
Lincoln UK		17.9			6.8			12.4			11.5			12.2			5.9			17.2			9.9			17.1
Corporate & Other		(32.6	)		(21.7	)		(21.6	)		(42.4	)		(28.1	)		(24.8	)		(10.9	)		(11.1	)		(10.1	)
Total Net Income (Loss)	$	51.0		$	41.6		$	142.7		$	133.3		$	194.3		$	130.5		$	187.0		$	199.7		$	189.9
Income (Loss) from Operations
Lincoln Retirement	$	35.4		$	57.4		$	86.1		$	94.3		$	94.1		$	102.2		$	101.8		$	110.2		$	100.5
Life Insurance		63.1			60.7			71.8			58.7			73.4			74.8			76.2			55.4			74.0
Investment Management		2.1			1.3			4.5			9.7			19.0			12.5			13.4			12.5			5.2
Lincoln UK		15.3			6.8			12.4			11.3			13.0			6.2			10.7			10.1			16.6
Corporate & Other		(15.9	)		(21.5	)		(21.5	)		(18.0	)		(20.8	)		(20.3	)		(20.7	)		(9.9	)		(6.3	)
Income (Loss) from Operations	$	100.0		$	104.8		$	153.3		$	156.0		$	178.7		$	175.3		$	181.4		$	178.2		$	189.9
OTHER DATA
Assets	$	93,184.6		$	92,497.6		$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3
Shareholders’ Equity
Beg of Period (including AOCI)	$	5,436.8		$	5,347.5		$	5,450.0		$	5,815.9		$	5,586.4		$	5,811.6		$	6,143.5		$	5,518.9		$	5,970.8
End of Period (including AOCI)		5,347.5			5,450.0			5,815.9			5,586.4			5,811.6			6,143.5			5,518.9			5,970.8			6,175.6
End of Period (excluding AOCI)		4,612.9			4,610.5			4,699.8			4,790.6			4,942.6			5,004.2			5,023.6			5,109.8			5,244.9
Average Equity (excluding AOCI)		4,643.6			4,682.0			4,672.0			4,784.5			4,888.2			5,016.8			5,024.6			5,075.7			5,185.0
Common Shares Outstanding
Average for the Period - Diluted		178.4			178.3			179.2			179.9			180.4			181.2			180.3			177.7			176.7
End of Period - Diluted		178.5			178.4			179.5			179.9			180.7			181.4			178.8			177.1			176.1
Per Share Data (Diluted)
Net Income	$	0.29		$	0.23		$	0.80		$	0.74		$	1.08		$	0.72		$	1.04		$	1.12		$	1.07
Income from Operations	$	0.56		$	0.59		$	0.86		$	0.87		$	0.99		$	0.97		$	1.00		$	1.00		$	1.07
Shareholders’ Equity Per Share
Shareholders’ Equity (including AOCI)	$	30.10		$	30.66		$	32.68		$	31.34		$	32.56		$	34.36		$	31.32		$	34.15		$	35.53
Shareholders’ Equity (excluding AOCI)	$	25.97		$	25.94		$	26.41		$	26.87		$	27.69		$	27.99		$	28.51		$	29.23		$	30.17
Dividends Declared (Common Stock)	$	0.335		$	0.335		$	0.335		$	0.335		$	0.350		$	0.350		$	0.350		$	0.350		$	0.365
Return on Equity
Net Income/Average Equity		4.4	%		3.6	%		12.2	%		11.1	%		15.9	%		10.4	%		14.9	%		15.7	%		14.6	%
Inc from Operations/Average Equity		8.6	%		8.9	%		13.1	%		13.0	%		14.6	%		14.0	%		14.4	%		14.0	%		14.7	%
Market Value of Common Stock
Highest Price	$	35.950		$	35.700		$	37.500		$	38.640		$	41.320		$	48.870		$	50.380		$	47.500		$	48.700
Lowest Price	$	25.150		$	24.730		$	27.870		$	34.630		$	35.410		$	40.060		$	43.260		$	41.900		$	40.790
Closing Price	$	31.580		$	28.000		$	35.630		$	35.380		$	40.370		$	47.320		$	47.250		$	47.000		$	46.680

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.

12/31/2004 PAGE 8

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

For the Quarter Ended December 31	Lincoln Retirement						Life Insurance						Investment Management						Lincoln UK
	Dec 2004			Dec 2003			Dec 2004			Dec 2003			Dec 2004			Dec 2003			Dec 2004			Dec 2003
Revenue
Life and annuity premiums	$	9.9		$	5.6		$	53.6		$	52.2								$	14.5		$	18.8
Surrender charges		6.4			6.2			14.2			16.1
Mortality assessments								130.5			128.4									9.8			8.7
Expense assessments		157.1			124.8			58.0			55.0									28.3			24.6
Health premiums																				0.4			0.5
Investment advisory fees														82.8			84.4
Other revenue and fees		(2.0	)		0.5			8.1			8.4			32.7			36.9			16.0			9.6
Net investment income		368.0			369.5			239.4			228.1			12.3			12.5			20.2			16.2
Realized gains (losses) on investments		9.1			44.7			(1.0	)		20.5			0.1			0.5			0.7			(1.3	)
Gains (losses) on derivatives		(1.9	)		(5.8	)					(3.1	)
Gain (loss) on reins. derivative/trading account securities		(1.4	)		2.8			(0.7	)		(0.6	)
Gain on sale of subsidiaries/ businesses														0.5
Mark-to-market adjustment on reclassification from AFS to trading account securities					86.0
Total Revenue		545.1			634.2			502.0			505.0			128.3			134.3			90.0			77.1
Operating Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		43.4			37.1			106.4			83.2									17.7			26.5
Div accum & div to policyholders								23.6			33.8
Interest credited to policy bal.		210.4			214.0			147.1			147.5
Health policy benefits																				3.6			6.8
Def. sales inducements net of amortization		(11.5	)		(5.6	)
Total insurance benefits		242.2			245.5			277.2			264.5									21.3			33.3
Underwriting, acquisition, insurance and other expenses:
Commissions		110.9			96.8			42.0			44.3									1.0			0.8
Other volume related expenses		45.8			22.8			57.4			62.6
Operating and administrative expenses		59.4			58.5			42.9			45.4			114.8			113.3			14.1			20.0
Restructuring charges		(0.7	)		5.5			0.7			4.2			(0.3	)		1.7
Taxes, licenses and fees		2.5			4.0			12.5			18.0			3.1			2.1
Subtotal		218.0			187.6			155.4			174.4			117.6			117.1			15.1			20.8
Deferral of acquisition costs		(112.9	)		(73.5	)		(109.7	)		(112.1	)								(1.6	)		(1.6	)
DAC amortization		63.9			31.5			55.7			38.0									23.5			14.7
Net DAC (deferral) amortization		(49.0	)		(42.0	)		(54.0	)		(74.1	)								21.9			13.1
PVIF amortization		2.3			1.8			16.4			19.9									5.6			(7.3	)
Other intangibles amortization														3.8			2.0
Total underwriting, acquisition, insurance and other expenses		171.3			147.4			117.7			120.2			121.3			119.1			42.5			26.6
Interest		0.1
Benefits and Expenses		413.6			392.9			394.9			384.8			121.4			119.1			63.8			59.9
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		131.5			241.4			107.1			120.3			7.0			15.2			26.2			17.2
Federal income taxes		26.9			67.9			34.7			38.7			1.1			(3.0	)		9.1			5.1
Income Before Cumulative Effect of Accounting Change		104.6			173.5			72.4			81.6			5.8			18.2			17.1			12.2
Cumulative effect of accounting change					(63.6	)					0.6
Net Income	$	104.6		$	109.9		$	72.4		$	82.2		$	5.8		$	18.2		$	17.1		$	12.2
Restructuring charges		0.5			(3.6	)		(0.4	)		(2.7	)		0.2			(1.1	)
Realized gains (losses) on investments		5.7			29.1			(0.7	)		13.4			0.1			0.3			0.6			(0.9	)
Gains (losses) on derivatives		(1.2	)		(3.8	)					(2.0	)
Net gain (loss) on reinsurance derivative/trading account securities		(0.8	)		1.8			(0.4	)		(0.4	)
Reserve development on business sold through reinsurance/ amortization of deferred gain
Gain on sale of subsidiaries/ businesses														0.3
Cumulative effect of accounting change					(63.6	)					0.6
Mark-to-market adjustment on reclassification from AFS to trading account securities					55.9
Income from Operations	$	100.5		$	94.1		$	74.0		$	73.4		$	5.2		$	19.0		$	16.6		$	13.0

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 1 OF 2

12/31/2004 PAGE 8A

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

For the Quarter Ended December 31	Corporate and Other Operations						Consolidating Adjustments				Consolidated
	Dec 2004			Dec 2003			Dec 2004		Dec 2003		Dec 2004			Dec 2003
Revenue
Life and annuity premiums		—			—		—		—		$	78.0		$	76.6
Surrender charges							0.5		0.7			21.1			23.0
Mortality assessments					1.0							140.4			138.1
Expense assessments		(0.5	)		(1.0	)	15.5		12.4			258.5			215.9
Health premiums		0.3			0.1							0.8			0.5
Investment advisory fees							(26.8	)	(26.2	)		56.0			58.3
Amortization of deferred gain		19.1			17.4							19.1			17.4
Amortization of deferred gain-reserve development		0.3			0.3							0.3			0.3
Other revenue and fees		172.4			140.0		(133.7	)	(113.7	)		93.4			81.7
Net investment income		34.8			33.6		(0.6	)	(0.6	)		674.1			659.2
Realized gains (losses) on investments		(1.8	)		0.3							7.2			64.8
Gains (losses) on derivatives		1.5			0.2							(0.4	)		(8.8	)
Gain (loss) on reins. derivative/trading account securities		0.7			1.9							(1.4	)		4.1
Gain on sale of subsidiaries/ businesses		0.1										0.6
Mark-to-market adjustment on reclassification from AFS to trading account securities					285.5										371.5
Total Revenue		227.1			479.2		(145.1	)	(127.3	)		1,347.5			1702.6
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits					(32.4	)						167.5			114.5
Div accum & div to policyholders												23.6			33.8
Interest credited to policy bal.		33.1			27.6		6.8		6.6			397.4			395.7
Health policy benefits		0.4			32.3							3.9			39.1
Reserve developments on Reins. business sold
Def. sales inducements net of amortization												(11.5	)		(5.6	)
Total insurance benefits		33.4			27.5		6.8		6.6			580.9			577.5
Underwriting, acquisition, insurance and other expenses:
Commissions		23.7			22.1		9.7		9.4			187.3			173.5
Other volume related expenses		64.1			73.9		(23.3	)	(58.3	)		144.0			101.0
Operating and administrative expenses		95.8			74.3		(133.9	)	(80.1	)		193.1			231.4
Restructuring charges		0.4			3.6							0.1			15.0
Taxes, licenses and fees		3.3			3.2							21.3			27.3
Subtotal		187.3			177.1		(147.5	)	(128.9	)		545.8			548.1
Deferral of acquisition costs							(13.8	)	(10.2	)		(238.1	)		(197.4	)
DAC amortization		0.1			0.1		10.0		5.8			153.2			90.1
Net DAC (deferral) amortization		0.1			0.1		(3.9	)	(4.4	)		(84.9	)		(107.3	)
PVIF amortization												24.2			14.4
Other intangibles amortization												3.8			2.0
Total underwriting, acquisition, insurance and other expenses		187.4			177.2		(151.3	)	(133.3	)		488.9			457.1
Interest		22.8			22.8		(0.6	)	(0.6	)		22.2			22.2
Loss on early retirement of subordinated debt		6.3										6.3
Total Benefits and Expenses		249.9			227.5		(145.1	)	(127.3	)		1,098.4			1,056.8
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		(22.8	)		251.7							249.1			645.7
Federal income taxes		(12.7	)		87.6							59.2			196.2
Income Before Cumulative Effect of Accounting Change		(10.1	)		164.1							189.9			449.6
Cumulative effect of accounting change					(192.2	)									(255.2	)
Net Income	$	(10.1	)	$	(28.1	)					$	189.9		$	194.3
Less:
Restructuring charges		(0.3	)		(2.4	)									(9.8	)
Realized gains (losses) on investments		(1.7	)		0.1							3.9			42.0
Gains (losses) on derivatives		1.5			0.1							0.3			(5.7	)
Net gain (loss) on reinsurance derivative/trading account securities		0.4			1.3							(0.8	)		2.7
Reserve development on business sold through reinsurance/ amortization of related deferred gain		0.2			0.2							0.2			0.2
Gain on sale of subsidiaries/ businesses		0.1										0.4
Cumulative effect of accounting change					(192.2	)									(255.2	)
Loss on early retirement of subordinated debt		(4.1	)									(4.1	)
Mark-to-market adjustment on reclassification from AFS to trading account securities					185.6										241.5
Income from Operations	$	(6.3	)	$	(20.8	)					$	189.9		$	178.7

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 2 OF 2

12/31/2004 PAGE 9

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

For the Twelve Months Ended December 31	Lincoln Retirement						Life Insurance						Investment Management						Lincoln UK
	Dec 2004			Dec 2003			Dec 2004			Dec 2003			Dec 2004			Dec 2003			Dec 2004			Dec 2003
Revenue
Life and annuity premiums	$	33.0		$	21.9		$	193.9		$	194.8								$	68.5		$	60.2
Surrender charges		25.0			28.9			51.8			53.6
Mortality assessments								518.7			516.7									39.5			35.7
Expense assessments		580.5			441.9			208.6			201.8									103.9			93.9
Health premiums								0.1			0.1									1.8			2.0
Investment advisory fees														358.3			306.2
Other revenue and fees		(6.3	)		8.7			31.4			28.0			124.9			117.9			52.8			18.6
Net investment income		1,495.9			1483.7			948.4			911.1			51.7			49.9			75.7			64.1
Realized gains (losses) on investments		(32.3	)		(12.5	)		(13.4	)		3.6			(0.7	)		0.4			0.2			(1.1	)
Gains (losses) on derivatives		(11.5	)		(6.6	)		0.1			(3.6	)
Gain (loss) on reins. derivative/trading account securities		0.8			2.8			(2.8	)		(0.6	)
Gain on sale of subsidiaries/ businesses														110.8						10.1
Mark-to-market adjustment on reclassification from AFS to trading account securities					86.0
Total Revenue		2,085.1			2,054.7			1,936.9			1,905.5			644.9			474.4			352.5			273.5
Operating Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		189.8			181.5			404.0			416.0									86.4			85.5
Div accum & div to policyholders								77.4			81.6
Interest credited to policy bal.		836.0			867.7			579.7			598.2
Health policy benefits																				14.0			13.0
Def. sales inducements net of amortization		(40.6	)		(14.1	)
Total insurance benefits		985.1			1035.1			1061.2			1095.9									100.4			98.6
Underwriting, acquisition, insurance and other expenses:
Commissions		423.5			318.5			136.5			141.8									2.9			3.8
Other volume related expenses		163.2			67.5			194.7			208.3
Operating and administrative expenses		231.7			226.2			168.6			166.2			445.7			414.6			81.0			78.3
Restructuring charges		5.4			20.1			4.8			19.5			1.2			7.1
Taxes, licenses and fees		14.6			17.7			49.1			62.2			17.0			10.3
Subtotal		838.4			650.0			553.7			598.0			464.0			431.9			83.9			82.1
Deferral of acquisition costs		(421.9	)		(223.4	)		(365.2	)		(370.8	)								(6.3	)		(3.5	)
DAC amortization		174.0			120.4			213.0			135.5									79.1			42.5
Net DAC (deferral) amortization		(247.9	)		(103.0	)		(152.2	)		(235.2	)								72.8			39.1
PVIF amortization		20.0			9.5			82.2			81.4									18.1			(10.7	)
Other intangibles amortization														9.7			7.9
Total underwriting, acquisition, insurance and other expenses		610.5			556.5			483.7			444.2			473.7			439.8			174.8			110.4
Interest		0.1
Benefits and Expenses		1,595.8			1,591.7			1,544.8			1,540.1			473.7			439.8			275.2			209.0
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		489.2			463.0			392.0			365.4			171.2			34.6			77.3			64.5
Federal income taxes		106.1			98.9			125.3			113.9			82.8			4.5			27.2			21.6
Income Before Cumulative Effect of Accounting Change		383.1			364.1			266.7			251.5			88.4			30.2			50.1			42.9
Cumulative effect of accounting change		(21.8	)		(63.6	)		(2.7	)		0.6
Net Income	$	361.4		$	300.5		$	264.0		$	252.1		$	88.4		$	30.2		$	50.1		$	42.9
Less:
Restructuring charges		(3.5	)		(13.1	)		(3.1	)		(12.7	)		(0.8	)		(4.6	)
Realized gains (losses) on investments		(21.1	)		(8.2	)		(8.8	)		2.3			(0.5	)		0.3						(0.7	)
Gains (losses) on derivatives		(7.4	)		(4.3	)		0.1			(2.3	)
Net gain (loss) on reinsurance derivative/trading account securities		0.6			1.8			(1.8	)		(0.4	)
Reserve development on business sold through reinsurance/ amortization of deferred gain
Gain on sale of subsidiaries/ businesses														46.1						6.6
Cumulative effect of accounting change		(21.8	)		(63.6	)		(2.7	)		0.6
Mark-to-market adjustment on reclassification from AFS to trading account securities					55.9
Income from Operations	$	414.6		$	331.9		$	280.3		$	264.5		$	43.6		$	34.5		$	43.5		$	43.6

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 1 OF 2

12/31/2004 PAGE 9A

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

	Corporate and Other Operations						Consolidating Adjustments				Consolidated
For the Twelve Months Ended December 31	Dec 2004			Dec 2003			Dec 2004		Dec 2003		Dec 2004			Dec 2003
Revenue
Life and annuity premiums		—			—		—		—		$	295.4		$	277.0
Surrender charges							1.9		2.3			78.7			84.7
Mortality assessments					(1.9	)						558.3			550.5
Expense assessments		(0.5	)		1.9		56.8		42.8			949.3			782.3
Health premiums		1.6			1.9							3.5			4.0
Investment advisory fees							(105.8	)	(101.2	)		252.5			205.0
Amortization of deferred gain		87.0			72.3							87.0			72.3
Amortization of deferred gain-reserve development		1.3			3.6							1.3			3.6
Other revenue and fees		629.9			460.9		(468.3	)	(324.4	)		364.4			309.7
Net investment income		134.4			133.2		(1.8	)	(3.5	)		2,704.1			2,638.5
Realized gains (losses) on investments		0.5			(7.1	)						(45.7	)		(16.7	)
Gains (losses) on derivatives		(0.1	)		7.6							(11.6	)		(2.5	)
Gain (loss) on reins. derivative/trading account securities		1.0			1.9							(1.0	)		4.1
Gain on sale of subsidiaries/ businesses		14.1										135.0
Mark-to-market adjustment on reclassification from AFS to trading account securities					285.5										371.5
Total Revenue		869.1			959.8		(517.2	)	(384.0	)		5,371.3			5,283.9
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		0.2			0.6							680.5			683.7
Div accum & div to policyholders												77.4			81.6
Interest credited to policy bal.		128.0			124.8		26.9		26.4			1,570.6			1,617.0
Health policy benefits		1.7			1.0							15.8			14.1
Reserve developments on Reins. business sold					32.1										32.1
Def. sales inducements net of amortization												(40.6	)		(14.1	)
Total insurance benefits		129.9			158.5		26.9		26.4			2,303.7			2,414.4
Underwriting, acquisition, insurance and other expenses:
Commissions		94.2			80.1		41.0		31.9			698.1			576.1
Other volume related expenses		223.0			227.7		(145.8	)	(175.0	)		435.0			328.4
Operating and administrative expenses		380.9			250.2		(410.4	)	(241.0	)		897.4			894.4
Restructuring charges		9.9			7.2							21.4			53.8
Taxes, licenses and fees		22.8			17.2							103.6			107.4
Subtotal		730.8			582.4		(515.2	)	(384.1	)		2,155.5			1,960.2
Deferral of acquisition costs							(51.4	)	(42.0	)		(844.8	)		(639.6	)
DAC amortization		0.4			0.4		24.3		19.2			490.8			318.0
Net DAC (deferral) amortization		0.4			0.4		(27.1	)	(22.8	)		(354.1	)		(321.6	)
PVIF amortization												120.3			80.2
Other intangibles amortization												9.7			7.9
Total underwriting, acquisition, insurance and other expenses		731.2			582.8		(542.3	)	(406.9	)		1,931.5			1,726.8
Interest		95.9			93.0		(1.8	)	(3.5	)		94.1			89.5
Loss on early retirement of subordinated debt		6.3			5.6							6.3			5.6
Total Benefits and Expenses		963.2			839.8		(517.2	)	(384.0	)		4,335.6			4,236.3
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		(94.1	)		120.0							1,035.7			1,047.6
Federal income taxes		(37.2	)		41.5							304.1			280.4
Income Before Cumulative Effect of Accounting Change		(56.9	)		78.5							731.5			767.2
Cumulative effect of accounting change					(192.2	)						(24.5	)		(255.2	)
Net Income	$	(56.9	)	$	(113.7	)					$	707.0		$	511.9
Less:
Restructuring charges		(6.4	)		(4.7	)						(13.9	)		(35.0	)
Realized gains (losses) on investments		0.3			(4.7	)						(30.0	)		(11.0	)
Gains (losses) on derivatives		(0.1	)		5.0							(7.4	)		(1.6	)
Net gain (loss) on reinsurance
derivative/trading account securities		0.6			1.3							(0.6	)		2.7
Reserve development on business sold through
reinsurance/ amortization of related deferred gain		0.9			(18.5	)						0.9			(18.5	)
Gain on sale of subsidiaries/ businesses		9.1										61.9
Cumulative effect of accounting change					(192.2	)						(24.5	)		(255.2	)
Loss on early retirement of subordinated debt		(4.1	)		(3.7	)						(4.1	)		(3.7	)
Mark-to-market adjustment on
reclassification from AFS to trading account securities					185.6										241.5
Income from Operations	$	(57.2	)	$	(81.8	)					$	724.8		$	592.8

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 2 OF 2

12/31/2004 PAGE 10

Statement of Consolidated Income

Unaudited [Millions of Dollars]

For the Year Ended December 31	2000			2001			2002			2003			2004
Revenue
Life and annuity premiums	$	1,403.3		$	1,363.4		$	295.6		$	277.0		$	295.4
Surrender charges		114.7			101.5			87.8			84.7			78.7
Mortality assessments		496.5			533.3			530.3			550.5			558.3
Expense assessments		1,013.1			880.1			792.7			782.3			949.3
Health premiums		409.8			340.6			20.3			4.0			3.5
Investment advisory fees		213.1			197.2			183.3			205.0			252.5
Amortization of deferred gain					20.4			75.2			72.3			87.0
Amortization of deferred gain-reserve development								(0.8	)		3.6			1.3
Other revenue and fees		441.1			328.7			299.5			309.7			364.4
Net investment income		2,784.1			2,708.7			2,631.9			2,638.5			2,704.1
Earnings in unconsolidated affiliates		(0.4	)		5.7			(0.6	)
Realized gains (losses) on investments		(28.3	)		(105.2	)		(272.7	)		(16.7	)		(45.7	)
Gains (losses) on derivatives					(9.3	)		1.2			(2.5	)		(11.6	)
Gain (loss) on reinsurance derivative/trading account securities											4.1			(1.0	)
Mark-to-market adjustment on reclassification from AFS to trading account securities											371.5
Gain on sale of subsidiaries/ businesses					12.8			(8.3	)					135.0
Total Revenue		6,847.1			6,378.0			4,635.5			5,283.9			5,371.3
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		1,546.4			1,517.9			811.3			683.7			680.5
Div accum & div to policyholders		87.6			83.7			76.0			81.6			77.4
Interest credited to policy bal.		1,474.2			1,506.0			1,617.1			1,617.0			1,570.6
Health policy benefits		449.0			302.1			49.7			14.1			15.8
Reserve developments on reins. business sold								305.4			32.1
Def. sales inducements net of amortization					(12.1	)		(12.6	)		(14.1	)		(40.6	)
Total insurance benefits		3,557.2			3,397.7			2,846.9			2,414.4			2,303.7
Underwriting, acquisition, insurance and other expenses:
Commissions		919.1			860.3			579.4			576.1			698.1
Other volume related expenses		253.8			184.8			256.8			328.4			435.0
Operating and administrative expenses		1,208.4			1,114.5			928.0			894.4			897.4
Restructuring charges		104.9			38.0			(2.2	)		53.8			21.4
Taxes, licenses and fees		107.5			122.9			106.8			107.4			103.6
Par policyholder interests		1.1
Foreign exchange		(2.9	)		(1.4	)		0.3						0.1
Subtotal		2,592.0			2,319.1			1,869.0			1,960.2			2,155.6
Deferral of acquisition costs					(701.0	)		(612.4	)		(639.6	)		(844.8	)
DAC amortization					366.8			344.4			318.0			490.8
DAC deferral net of amortization		(427.5	)		(334.2	)		(268.0	)		(321.6	)		(354.1	)
PVIF amortization		132.6			113.1			136.5			80.2			120.3
Other intangibles amortization		17.7			12.1			8.2			7.9			9.7
Total underwriting, acquisition, insurance and other expenses		2,314.9			2,110.1			1,745.8			1,726.8			1,931.5
Goodwill amortization		45.1			43.4
Interest		139.5			121.0			96.6			89.5			94.1
Loss on early retirement of subordinated debt											5.6			6.3
Total Benefits and Expenses		6,056.7			5,672.1			4,689.3			4,236.3			4,335.6
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		790.5			705.9			(53.8	)		1,047.6			1,035.7
Federal income taxes		205.2			144.7			(102.6	)		280.4			304.1
Income Before Cumulative Effect of Accounting Change		585.3			561.2			48.8			767.2			731.5
Cumulative effect of accounting change					(15.6	)					(255.2	)		(24.5	)
Net Income	$	585.3		$	545.7		$	48.8		$	511.9		$	707.0
Less:
Restructuring charges		(80.2	)		(24.7	)		2.0			(35.0	)		(13.9	)
Realized gains (losses) on investments		(17.5	)		(68.7	)		(177.2	)		(11.0	)		(30.0	)
Gains (losses) on derivatives					(4.9	)		0.8			(1.6	)		(7.4	)
Net gain (loss) on reinsurance derivative/trading account securities											2.7			(0.6	)
Reserve development on business sold through reinsurance/ amortization of deferred gain								(199.1	)		(18.5	)		0.9
Gain on sale of subsidiaries/ businesses					15.0			(9.4	)					61.9
Loss on early retirement of subordinated debt											(3.7	)		(4.1	)
Mark-to-market adjustment on reclassification from AFS to trading account securities											241.5
Cumulative effect of accounting change					(15.6	)					(255.2	)		(24.5	)
Income from Operations	$	683.0		$	644.4		$	431.6		$	592.8		$	724.8
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year				$	3,070.5		$	2,866.8		$	2,939.7		$	3,147.1
Deferral					701.0			612.4			639.6			844.8
Amortization					(366.8	)		(344.4	)		(318.0	)		(490.8	)
Included in Total Benefits and Expenses					334.2			268.0			321.6			354.1
Adjustment related to realized (gains) losses on available-for-sale securities					112.9			115.0			(50.2	)		(45.7	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(187.2	)		(338.6	)		(126.1	)		(14.8	)
Foreign currency translation adjustment					(16.0	)		56.9			62.0			42.9
Disposition of business					(425.9	)
Other					(21.7	)		(28.4	)					(38.8	)
Balance at end-of-year				$	2,866.8		$	2,939.7		$	3,147.1		$	3,445.0
Roll Forward of Present Value of In-Force
Balance at beginning-of-year				$	1,483.3		$	1,362.5		$	1,250.1		$	1,196.5
Amortization					(113.1	)		(136.5	)		(80.2	)		(120.3	)
Foreign currency translation adjustment					(7.0	)		24.1			26.6			19.6
Other					(0.7	)					(0.0	)		(0.6	)
Balance at end-of-year				$	1,362.5		$	1,250.1		$	1,196.5		$	1,095.2

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.

12/31/2004 PAGE 11

Statement of Consolidated Income

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Revenue
Life and annuity premiums	$	80.7		$	65.3		$	65.9		$	69.1		$	76.6		$	72.0		$	74.7		$	70.7		$	78.0
Surrender charges		23.5			18.9			21.3			21.5			23.0			20.2			19.2			18.2			21.1
Mortality assessments		135.3			138.9			135.6			137.9			138.1			137.9			140.1			139.8			140.4
Expense assessments		187.6			177.1			190.9			198.5			215.9			225.5			230.9			234.5			258.5
Health premiums		19.1			3.0			0.1			0.4			0.5			3.6			(0.7	)		(0.1	)		0.8
Investment advisory fees		44.7			44.2			49.4			53.2			58.3			62.7			66.4			67.4			56.0
Amortization of deferred gain		6.9			18.4			18.2			18.3			17.4			17.9			17.9			32.1			19.1
Amortization of deferred gain-reserve development		0.5			(0.2	)		(0.2	)		3.7			0.3			0.3			0.3			0.3			0.3
Other revenue and fees		81.5			70.6			74.5			82.9			81.7			61.4			112.9			96.6			93.4
Net investment income		667.3			654.6			660.2			664.4			659.2			677.5			683.1			669.4			674.1
Realized gains (losses) on investments		(50.7	)		(89.6	)		(1.7	)		9.8			64.8			(12.0	)		(17.8	)		(23.0	)		7.2
Gains (losses) on derivatives		0.3			(1.9	)		(1.0	)		9.1			(8.8	)		(3.8	)		(2.8	)		(4.5	)		(0.4	)
Gain (loss) on reinsurance derivative/trading account securities														4.1			(4.2	)		10.3			(5.6	)		(1.4	)
Mark-to-market adjustment on reclassification from AFS to trading account securities														371.5
Gain (loss) on sale of subsidiaries/ businesses		(8.3	)																	24.1			110.3			0.6
Total Revenue		1,188.6			1,099.3			1,213.2			1,268.8			1,702.6			1,259.0			1,358.7			1,406.1			1,347.5
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		214.0			187.1			155.1			227.1			114.5			179.9			180.0			153.1			167.5
Div accum & div to policyholders		22.8			14.4			17.6			15.9			33.8			18.5			18.6			16.7			23.6
Interest credited to policy bal.		411.1			409.3			406.3			405.6			395.7			390.4			390.4			392.5			397.4
Health policy benefits		5.1			2.3			14.2			(41.5	)		39.1			3.5			4.1			4.2			3.9
Reserve developments on reins. business sold		13.2									32.1
Def. sales inducements net of amortization		(3.2	)		(3.3	)		(2.4	)		(2.8	)		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)
Total insurance benefits		663.0			609.7			590.8			636.4			577.5			583.3			583.3			556.1			580.9
Underwriting, acquisition, insurance and other expenses:
Commissions		162.0			125.7			132.9			144.1			173.5			169.1			170.7			171.0			187.3
Other volume related expenses		72.6			71.5			65.4			90.5			101.0			109.9			107.0			74.1			144.0
Operating and administrative expenses		259.7			217.8			235.5			209.8			231.4			187.4			252.3			264.6			193.1
Restructuring charges		(1.7	)		5.5			13.5			19.8			15.0			11.5			5.3			4.5			0.1
Taxes, licenses and fees		22.6			30.6			23.1			26.4			27.3			29.5			27.2			25.6			21.3
Foreign exchange		(0.6	)
Subtotal		514.6			451.2			470.3			490.6			548.1			507.4			562.6			539.8			545.8
Deferral of acquisition costs		(163.4	)		(144.3	)		(136.9	)		(160.9	)		(197.4	)		(198.7	)		(201.8	)		(206.2	)		(238.1	)
DAC amortization		61.5			99.2			62.8			65.9			90.1			108.8			108.0			120.8			153.2
DAC deferral net of amortization		(101.9	)		(45.1	)		(74.2	)		(95.0	)		(107.3	)		(89.9	)		(93.9	)		(85.4	)		(84.9	)
PVIF amortization		43.0			22.7			13.6			29.6			14.4			24.8			20.5			50.8			24.2
Other intangibles amortization		2.0			2.0			2.0			2.0			2.0			2.0			2.0			2.0			3.8
Total underwriting, acquisition, insurance and other expenses		457.7			430.8			411.7			427.1			457.1			444.3			491.2			507.1			488.9
Interest		23.5			23.3			23.0			21.0			22.2			22.8			24.7			24.4			22.2
Loss on early retirement of subordinated debt											5.6															6.3
Total Benefits and Expenses		1,144.2			1,063.9			1,025.5			1,090.2			1,056.8			1,050.4			1,099.1			1,087.7			1,098.4
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		44.4			35.4			187.7			178.7			645.7			208.6			259.6			318.4			249.1
Federal income taxes		(6.6	)		(6.1	)		45.0			45.4			196.2			53.7			72.6			118.7			59.2
Income Before Cumulative Effect of Accounting Change		51.0			41.6			142.7			133.3			449.6			155.0			187.0			199.7			189.9
Cumulative effect of accounting change														(255.2	)		(24.5	)
Net Income	$	51.0		$	41.6		$	142.7		$	133.3		$	194.3		$	130.5		$	187.0		$	199.7		$	189.9
Less:
Restructuring charges		1.7			(3.6	)		(8.8	)		(12.9	)		(9.8	)		(7.5	)		(3.5	)		(2.9	)
Realized gains (losses) on investments		(33.3	)		(58.2	)		(1.1	)		6.4			42.0			(7.9	)		(11.6	)		(14.5	)		3.9
Gains (losses) on derivatives		0.2			(1.2	)		(0.6	)		5.9			(5.7	)		(2.5	)		(1.8	)		(3.4	)		0.3
Net gain on reinsurance derivative/trading account securities														2.7			(2.7	)		6.7			(3.7	)		(0.8	)
Reserve development on business sold through reinsurance/ amortization of deferred gain		(8.2	)		(0.1	)		(0.1	)		(18.5	)		0.2			0.2			0.2			0.2			0.2
Gain (loss) on sale of subsidiaries/ businesses		(9.4	)																	15.6			45.9			0.4
Loss on early retirement of subordinated debt											(3.7	)														(4.1	)
Mark-to-market adjustment on reclassification from AFS to trading account securities														241.5
Cumulative effect of accounting change														(255.2	)		(24.5	)
Income from Operations	$	100.0		$	104.8		$	153.3		$	156.0		$	178.7		$	175.3		$	181.4		$	178.2		$	189.9
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period	$	2,840.7		$	2,939.7		$	2,884.5		$	2,660.3		$	2,879.7		$	3,147.1		$	2,999.0		$	3,521.4		$	3,326.8
Deferral		163.4			144.3			136.9			160.9			197.4			198.7			201.8			206.2			238.1
Amortization		(61.5	)		(99.2	)		(62.8	)		(65.9	)		(90.1	)		(108.8	)		(108.0	)		(120.8	)		(153.2	)
Included in Total Benefits and Expenses		101.9			45.1			74.2			95.0			107.3			89.9			93.9			85.4			84.9
Adjustment related to realized (gains) losses on available-for-sale securities		17.8			30.0			8.3			(60.6	)		(27.9	)		(17.6	)		(6.0	)		(6.2	)		(15.8	)
Adjustment related to unrealized (gains) losses on available-for-sale securities		(34.2	)		(119.4	)		(334.0	)		182.2			145.2			(201.1	)		442.7			(271.2	)		14.7
Foreign currency translation adjustment		13.7			(10.9	)		27.2			2.8			42.8			19.9			(8.4	)		(2.5	)		33.8
Other																	(39.3	)		0.2			(0.1	)		0.5
Balance at end-of-period	$	2,939.7		$	2,884.5		$	2,660.3		$	2,879.7		$	3,147.1		$	2,999.0		$	3,521.4		$	3,326.8		$	3,445.0
Roll Forward of Present Value of In-Force
Balance at beginning-of-period	$	1,286.9		$	1,250.1		$	1,223.1		$	1,220.8		$	1,192.5		$	1,196.5		$	1,180.0		$	1,155.8		$	1,103.9
Amortization		(43.0	)		(22.7	)		(13.6	)		(29.6	)		(14.4	)		(24.8	)		(20.5	)		(50.8	)		(24.2	)
Foreign currency translation adjustment		6.1			(4.3	)		11.2			1.3			18.4			8.9			(3.7	)		(1.1	)		15.6
Other		0.1															(0.6	)
Balance at end-of-period	$	1,250.1		$	1,223.1		$	1,220.8		$	1,192.5		$	1,196.5		$	1,180.0		$	1,155.8		$	1,103.9		$	1,095.2

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.

12/31/2004 PAGE 12

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement						Life Insurance					Investment Management				Lincoln UK
	Dec 2004			Dec 2003			Dec 2004		Dec 2003			Dec 2004		Dec 2003		Dec 2004		Dec 2003
ASSETS
Investments
Corporate bonds	$	13,504.1		$	13,111.1		$	8,887.9	$	8,365.3		$	533.3	$	518.1	$	739.2	$	697.8
U.S. government bonds		11.9			51.8			63.8		68.8									20.0
Foreign government bonds		304.5			275.9			184.7		158.1			6.8		4.0		337.6		342.1
Asset/mortgage backed securities		3,332.3			3,168.4			1,739.5		1,390.6			99.6		65.3
State and municipal bonds		95.3			89.2			52.4		50.0			1.2		1.2
Preferred stocks-redeemable		37.6			35.4			25.7		24.0
Common stocks		0.2						0.2									46.4		50.2
Preferred stocks-equity		43.1			43.4			14.8		14.3			2.7		2.8
Total AFS Securities		17,329.1			16,775.3			10,968.9		10,071.2			643.7		591.5		1,123.3		1,110.1
Trading Securities		1,169.6			1,195.9
Mortgage loans		1,936.3			2,201.7			1,554.2		1,577.0			62.6		75.0		0.1		0.3
Real estate																	0.2		0.2
Policy loans		438.7			446.4			1,426.0		1,471.5							5.9		6.6
Allocated investments		3,891.1			3,577.8			1,442.7		1,223.4			139.9		102.8
Other long-term investments		61.8			33.4			9.1		14.9
Total Investments		24,826.6			24,230.4			15,400.9		14,358.0			846.3		769.3		1,129.5		1,117.2
Notes receivable from LNC		107.8			271.3			130.7		202.6			44.4		45.5
Cash and invested cash		(73.9	)		(120.2	)		18.0		(25.4	)		51.1		89.1		282.9		160.2
Property and equipment		10.8			7.5			1.6		2.8			33.3		38.2		20.1		19.5
Premium and fees receivable		0.2			9.8			25.8		33.2			45.4		51.3
Accrued investment income		243.3			243.9			173.8		174.0			8.6		8.5		22.1		21.6
Assets held in separate accounts		40,990.1			34,459.0			2,131.1		1,795.8							7,186.2		6,390.3
Amount recoverable from reinsurers		1,030.7			1,348.6			1,183.4		1,026.8
Deferred acquisition costs		1,040.4			854.6			1,691.9		1,578.3							590.9		620.7
Other intangible assets		85.5			45.2								20.9		33.9
Present value of in-force		92.6			113.2			726.5		808.6							276.1		274.7
Goodwill		64.1			64.1			855.1		855.1			260.8		300.7		15.9		14.8
Other		134.4			130.6			466.4		429.9			183.4		224.5		60.2		65.7
Total Assets	$	68,552.7		$	61,657.9		$	22,805.0	$	21,239.8		$	1,494.3	$	1,561.1	$	9,583.9	$	8,684.7

	Corporate and Other Operations						Consolidating Adjustments						Consolidated
	Dec 2004			Dec 2003			Dec 2004			Dec 2003			Dec 2004		Dec 2003
ASSETS
Investments
Corporate bonds	$	3,224.5		$	3,176.2								$	26,889.0	$	25,868.5
U.S. government bonds		87.4			85.2									163.0		225.8
Foreign government bonds		452.3			414.5									1,285.9		1,194.6
Asset/mortgage backed securities		919.0			571.4									6,090.5		5,195.6
State and municipal bonds		17.1			12.3									166.0		152.8
Preferred stocks-redeemable		42.8			72.7									106.1		132.2
Common stocks		22.9			48.1									69.8		98.4
Preferred stocks-equity		30.7			40.1									91.3		100.7
Total AFS Securities		4,796.7			4,420.5									34,861.7		32,968.6
Trading securities		2,067.8			1,924.3									3,237.4		3120.1
Mortgage loans		303.6			341.0									3,856.9		4,195.0
Real estate		191.1			112.7									191.4		112.9
Policy loans														1,870.6		1,924.4
Allocated investments		(5,473.7	)		(4,904.0	)
Other long-term investments		418.4			408.5									489.3		456.7
Total Investments		2,304.0			2,302.9		$	(0.0	)	$	(0.0	)		44,507.3		42,777.6
Investments In Consolidated Subs		5,545.6			5,058.0			(5,545.6	)		(5,058.0	)
Notes receivable from LNC		(152.9	)		(382.7	)		(130.0	)		(136.6	)
Cash and invested cash		1,383.6			1,607.5									1,661.7		1,711.2
Property and equipment		141.3			167.2									207.1		235.2
Premium and fees receivable		161.5			257.8									232.9		352.1
Accrued investment income		77.4			74.7									525.1		522.7
Assets held in separate accounts								4,897.2			3,920.0			55,204.6		46,565.2
Federal income tax recoverable											45.9					45.9
Amount recoverable from reinsurers		4,853.5			5,712.7						(248.9	)		7,067.5		7,839.2
Deferred acquisition costs		1.4			1.8			120.3			91.8			3,445.0		3,147.1
Other intangible assets		5.9												112.3		79.1
Present value of in-force														1,095.2		1,196.5
Goodwill														1,195.9		1,234.7
Other		251.7			290.5			(131.4	)		(102.9	)		964.7		1,038.3
Total Assets	$	14,572.8		$	15,090.1		$	(789.5	)	$	(1,488.7	)	$	116,219.3	$	106,744.9

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.

12/31/2004 PAGE 13

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement				Life Insurance					Investment Management				Lincoln UK
	Dec 2004		Dec 2003		Dec 2004		Dec 2003			Dec 2004		Dec 2003		Dec 2004			Dec 2003
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	$	2,268.9	$	2,598.1	$	15,411.3	$	14,690.4						$	1,442.0		$	1,400.3
Health reserves						0.3		0.3							49.8			49.2
Unpaid claims - life and health		38.4		50.8		158.0		112.0							51.9			49.3
Unearned premiums
Premium deposit funds		21,336.8		21,050.4		17.1		18.4							29.7			29.5
Participating policyholders’ funds						145.3		155.1
Other policyholders’ funds						706.1		673.0
Liability related to separate accounts		40,990.1		34,459.0		2,131.1		1,795.8							7,186.2			6,390.3
Total Insurance and Inv Contract Liabilities		64,634.1		58,158.3		18,569.3		17,445.1							8,759.7			7,918.6
Federal income taxes		387.0		346.6		208.3		167.3			6.2		28.1		58.6			19.0
Notes payable to LNC		51.4		1.0				8.5
Embedded derivative - modco		80.5		85.2		2.5		(0.3	)
Other liabilities		157.1		159.3		520.7		487.2			943.5		904.3		215.0			227.9
Deferred gain on indemnity reinsurance
Total Liabilities		65,310.1		58,750.4		19,300.8		18,107.8			949.7		932.3		9,033.4			8,165.5
Net unrealized gains (losses) on securities		474.8		465.6		244.2		235.1			3.1		2.9		36.2			26.8
Gains (losses) on derivatives		4.8		8.2		7.7		12.1
Foreign currency translation adjustment													1.0		136.4			90.1
Other shareholders’ equity		2,762.9		2,433.7		3,252.3		2,884.7			541.5		624.8		426.6			448.1
Minimum pension liability adjustment															(48.6	)		(45.8	)
Shareholders’ Equity		3,242.5		2,907.5		3,504.2		3,131.9			544.6		628.7		550.6			519.2
Total Liabilities and S/Hs’ Equity	$	68,552.7	$	61,657.9	$	22,805.0	$	21,239.8		$	1,494.3	$	1,561.1	$	9,583.9		$	8,684.7

	Corporate and Other Operations						Consolidating Adjustments						Consolidated
	Dec 2004			Dec 2003			Dec 2004			Dec 2003			Dec 2004			Dec 2003
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	$	1,259.8		$	2,123.4					$	(93.9	)	$	20,382.0		$	20,718.3
Health reserves		2,809.9			2,782.0									2,860.1			2,831.5
Unpaid claims - life and health		832.0			848.9						(2.6	)		1,080.3			1,058.4
Unearned premiums		5.7			104.5									5.8			104.5
Premium deposit funds		115.6			133.7			716.0			537.4			22,215.1			21,769.3
Participating policyholders’ funds														145.3			155.1
Other policyholders’ funds		7.9			7.9									714.0			680.9
Liability related to separate accounts								4,897.2			3,920.0			55,204.6			46,565.2
Total Insurance and Inv Contract Liabilities		5,030.9			6,000.2			5,613.2			4,360.9			102,607.1			93,883.2
Federal income taxes		(583.3	)		(607.6	)		0.8			46.7			77.6
Short-term debt		214.4			44.4						(0.4	)		214.4			44.0
Long-term debt		1,048.7			1,117.5									1,048.7			1,117.5
Junior subordinated debentures issued to affiliated trusts		339.8			341.3									339.8			341.3
Notes payable to LNC		78.6			126.8			(130.0	)		(136.2	)
Embedded derivative - modco		292.3			267.3									375.3			352.3
Other liabilities		3,358.4			3,192.3			(727.0	)		(700.9	)		4,467.8			4,270.1
Deferred gain on indemnity reinsurance		913.0			924.8									913.0			924.8
Total Liabilities		10,692.8			11,407.1			4,756.9			3,570.1			110,043.7			100,933.2
Net unrealized gains (losses) on securities		64.4			57.5						5.2			822.9			793.1
Gains (losses) on derivatives		1.6			1.8									14.0			22.1
Foreign currency translation adjustment		10.4			10.4			7.5			7.5			154.3			109.0
Other shareholders’ equity		3,815.5			3,622.6			(5,554.4	)		(5,071.5	)		5,244.9			4,942.6
Minimum pension liability adjustment		(11.9	)		(9.3	)								(60.5	)		(55.1	)
Shareholders’ Equity		3,880.1			3,683.1			(5,546.9	)		(5,058.8	)		6,175.6			5,811.6
Total Liabilities and S/Hs’ Equity	$	14,572.8		$	15,090.1		$	(790.0	)	$	(1,488.7	)	$	116,219.3		$	106,744.9

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.

12/31/2004 PAGE 14

Five Year Comparative Balance Sheet

Unaudited [Millions of Dollars except Common Share Data]

	2000		2001			2002			2003			2004
ASSETS
Investments
Corporate bonds	$	21,249.7	$	23,105.1		$	25,934.7		$	25,868.5		$	26,889.0
U.S. government bonds		542.9		410.5			513.6			225.8			163.0
Foreign government bonds		1,321.1		1,174.7			1,110.2			1,194.6			1,285.9
Mortgage backed securities		4,160.4		3,524.7			5,015.5			5,195.6			6,090.5
State and municipal bonds		14.6		44.7			114.4			152.8			166.0
Preferred stocks-redeemable		161.2		85.9			79.0			132.2			106.1
Common stocks		436.6		319.3			228.0			98.4			69.8
Preferred stocks-equity		113.1		151.2			109.2			100.7			91.3
Total AFS Securities		27,999.5		28,816.1			33,104.7			32,968.6			34,861.7
Trading securities										3120.1			3,237.4
Mortgage loans		4,663.0		4,535.5			4,205.5			4,195.0			3,856.9
Real estate		282.0		267.9			279.7			112.9			191.4
Policy loans		1,960.9		1,939.7			1,945.6			1,924.4			1,870.6
Other long-term investments		463.3		553.8			464.4			456.7			489.3
Total Investments		35,368.6		36,113.1			39,999.9			42,777.6			44,507.3
Invest in unconsol affiliates		6.4		8.1
Investments in consol affiliates
Cash and invested cash		1,927.4		3,095.5			1,690.5			1,711.2			1,661.7
Property and equipment		228.2		257.5			242.1			235.2			207.1
Premiums and fees receivable		296.7		400.1			212.9			352.1			232.9
Accrued investment income		546.4		563.5			536.7			522.7			525.1
Assets held in separate accounts		50,579.9		44,833.4			36,178.3			46,565.2			55,204.6
Federal income taxes recoverable		234.1		55.5			317.7			45.9
Amounts recoverable from reinsurers		3,747.7		6,030.4			7,280.0			7,839.2			7,067.5
Deferred acquisition costs		3,070.5		2,866.8			2,939.7			3,147.1			3,445.0
Other intangible assets		73.7		68.6			73.0			79.1			112.3
Present value of in-force		1,483.3		1,362.5			1,250.1			1,196.5			1,095.2
Goodwill		1,286.0		1,211.8			1,233.2			1,234.7			1,195.9
Other		1,021.6		1,174.9			1,230.3			1,038.3			964.7
Total Assets	$	99,870.6	$	98,041.6		$	93,184.6		$	106,744.9		$	116,219.3
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Investment Contract Liabilities:
Life and annuity reserves	$	17,841.2	$	17,917.0		$	19,950.3		$	20,718.3		$	20,382.0
Health reserves		2,523.8		2,537.9			2,689.0			2,831.5			2,860.1
Unpaid claims-life and health		1,316.6		1,087.5			778.4			1,058.4			1,080.3
Unearned premiums		46.5		66.9			141.2			104.5			5.8
Premium deposit funds		17,715.5		18,585.0			20,518.8			21,769.3			22,215.1
Participating policyholders’ funds		139.4		100.2			156.7			155.1			145.3
Other policyholders’ funds		522.2		562.7			610.9			680.9			714.0
Liability related to separate accounts		50,579.9		44,833.4			36,178.3			46,565.2			55,204.6
Total Ins and Inv Contr Liabilities		90,685.1		85,690.6			81,023.6			93,883.2			102,607.1
Federal income tax liabilities													77.6
Short-term debt		312.9		350.2			153.0			44.0			214.4
Long-term debt		712.2		861.8			1,119.2			1,117.5			1,048.7
Junior subordinated debentures issued to affiliated trusts		745.0		474.7			392.7			341.3			339.8
Embedded derivative - modco										352.3			375.3
Other liabilities		2,434.7		4,216.1			4,171.5			4,270.1			4,467.8
Deferred gain on indemnity reinsurance				1,144.5			977.1			924.8			913.0
Total Liabilities		94,890.0		92,737.8			87,837.2			100,933.2			110,043.7
Unrealized gains (losses)		12.0		217.2			781.6			815.1			836.9
Foreign currency		22.0		(8.0	)		50.8			109.0			154.3
Minimum pension liability adjustment				(36.0	)		(97.8	)		(55.1	)		(60.5	)
Shareholders’ equity- other		4,946.6		5,130.6			4,612.9			4,942.6			5,244.9
Total Shareholders’ Equity		4,980.6		5,303.8			5,347.5			5,811.6			6,175.6
Total Liabilities and Shareholders’ Equity	$	99,870.6	$	98,041.6		$	93,184.6		$	106,744.9		$	116,219.3
Shareholders’ Equity Per Share
Book Value, Excluding AOCI	$	25.88	$	27.39		$	25.97		$	27.69		$	30.17
Common shares outstanding (in millions)		191.2		187.3			177.6			178.5			173.8

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.

12/31/2004 PAGE 15

Quarterly Balance Sheet

Unaudited [Millions of Dollars, except Common Share Data]

	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
ASSETS
Investments
Corporate bonds	$	25,934.7		$	26,936.1		$	28,419.3		$	28,286.3		$	25,868.5		$	26,209.2		$	25,638.1		$	26,750.0		$	26,889.0
U.S. government bonds		513.6			537.0			561.9			522.5			225.8			234.2			156.3			162.9			163.0
Foreign government bonds		1,110.2			1,206.6			1,349.4			1,352.9			1,194.6			1,321.0			1,223.8			1,233.8			1,285.9
Mortgage backed securities		5,015.5			4,960.1			4,754.9			4,992.7			5,195.6			5,617.0			5,524.1			5,793.4			6,090.5
State and municipal bonds		114.4			134.9			150.4			164.0			152.8			164.1			164.8			168.8			166.0
Preferred stocks - redeemable		79.0			112.0			118.5			65.6			132.2			120.9			100.7			113.9			106.1
Common stocks		228.0			145.0			146.6			131.8			98.4			97.4			92.3			86.5			69.8
Preferred stocks-equity		109.2			104.5			110.7			111.2			100.7			100.2			90.5			91.6			91.3
Total AFS Securities		33,104.7			34,136.2			35,611.8			35,626.9			32,968.6			33,864.1			32,990.5			34,400.8			34,861.7
Trading securities														3,120.1			3,191.3			3,087.9			3,223.6			3,237.4
Mortgage loans		4,205.5			4,235.5			4,314.3			4,151.5			4,195.0			3,988.5			3,865.4			3,831.3			3,856.9
Real estate		279.7			242.0			240.3			249.8			112.9			104.8			104.3			135.1			191.4
Policy loans		1,945.6			1,928.8			1,919.6			1,910.5			1,924.4			1,876.7			1,871.3			1,871.9			1,870.6
Other long-term investments		464.4			465.7			505.6			484.7			456.7			476.3			442.9			463.8			489.3
Total Investments		39,999.9			41,008.4			42,591.6			42,423.3			42,777.6			43,501.7			42,362.5			43,926.6			44,507.3
Investments in consol affiliates
Cash and invested cash		1,690.5			1,635.5			1,945.8			1,960.6			1,711.2			2,255.5			2,213.7			1,996.0			1,661.7
Property and equipment		242.1			239.4			239.1			237.3			235.2			229.5			225.5			217.7			207.1
Premiums and fees receivable		212.9			194.0			396.0			306.5			352.1			337.5			265.2			248.8			232.9
Accrued investment income		536.7			567.2			555.1			560.2			522.7			547.9			543.7			573.2			525.1
Assets held in separate accounts		36,178.3			34,775.2			39,942.8			41,283.4			46,565.2			48,557.9			49,343.7			49,657.9			55,204.6
Federal income taxes recoverable		317.7			89.1									45.9						204.0
Amount recoverable from reinsurers		7,280.0			7,323.5			7,377.1			7,537.9			7,839.2			7,865.7			7,138.7			7,031.9			7,067.5
Deferred acquisition costs		2,939.7			2,884.5			2,660.3			2,879.7			3,147.1			2,999.0			3,521.4			3,326.8			3,445.0
Other intangible assets		73.0			74.2			74.7			75.5			79.1			85.8			93.6			98.7			112.3
Present value of in-force		1,250.1			1,223.1			1,220.8			1,192.5			1,196.5			1,180.0			1,155.8			1,103.9			1,095.2
Goodwill		1,233.2			1,233.0			1,233.6			1,233.7			1,234.7			1,235.2			1,235.0			1,195.0			1,195.9
Other		1,230.3			1,250.6			1,295.9			1,134.9			1,038.3			1,074.2			1,015.1			1,000.7			964.7
Total Assets	$	93,184.6		$	92,497.6		$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	$	19,950.3		$	20,025.6		$	20,194.5		$	20,459.2		$	20,718.3		$	20,882.5		$	20,324.0		$	20,213.0		$	20,382.0
Health reserves		2,689.0			2,689.9			2,703.3			2,657.9			2,831.5			2,822.1			2,841.1			2,797.1			2,860.1
Unpaid claims - life and health		778.4			763.1			997.1			1,041.2			1,058.4			1,076.8			1,083.5			1,067.0			1,080.3
Unearned premiums		141.2			141.1			24.0			26.9			104.5			104.3			9.3			7.5			5.8
Premium deposit funds		20,518.8			21,070.5			21,437.7			21,680.2			21,769.3			21,827.4			22,017.0			22,218.9			22,215.1
Participating policyholders’ funds		156.7			166.3			193.8			179.2			155.1			171.1			165.9			165.2			145.3
Other policyholders’ funds		610.9			607.1			621.8			671.5			680.9			688.1			698.5			703.4			714.0
Liab related to separate accounts		36,178.3			34,775.2			39,942.8			41,283.4			46,565.2			48,557.9			49,343.7			49,657.9			55,204.6
Total Ins and Inv Contr Liabilities		81,023.6			80,238.8			86,115.0			87,999.6			93,883.2			96,130.3			96,483.1			96,830.1			102,607.1
Federal income taxes								72.0			37.1						108.1						83.8			77.6
Short-term debt		153.0			125.4			83.4			76.5			44.0			38.0			30.0			0.0			214.4
Long-term debt		1,119.2			1,118.6			1,121.4			1,118.5			1,117.5			1,317.7			1,313.7			1,315.4			1,048.7
Junior subordinated debentures issued to affiliated trusts		392.7			390.8			397.1			333.6			341.3			344.7			337.6			341.1			339.8
Notes payable to LNC		(0.0	)		0.2			(0.0	)		0.0			(0.0	)		0.0			(0.0	)		(0.0	)		(0.0	)
Embedded derivative - modco														352.3			440.6			252.6			365.5			375.3
Other liabilities		4,171.5			4,214.8			4,989.0			4,724.8			4,270.1			4,440.4			4,493.6			4,537.9			4,467.8
Deferred gain on indemnity reinsurance		977.1			959.0			938.9			949.0			924.8			906.6			888.4			932.4			913.0
Total Liabilities		87,837.2			87,047.6			93,716.9			95,239.1			100,933.2			103,726.4			103,799.0			104,406.3			110,043.7
Unrealized gains on investments		753.3			872.0			1,117.8			804.5			793.1			1,038.0			412.0			780.1			822.9
Gains - derivatives		28.3			25.0			28.8			23.2			22.1			29.0			18.5			19.8			14.0
Foreign currency		50.8			39.8			68.4			67.0			109.0			128.9			120.8			116.9			154.3
Minimum pension liability		(97.8	)		(97.2	)		(98.8	)		(99.0	)		(55.1	)		(56.6	)		(56.0	)		(55.8	)		(60.5	)
Shareholders’ equity- other		4,612.9			4,610.5			4,699.8			4,790.6			4,942.6			5,004.2			5,023.6			5,109.8			5,244.9
Total Shareholders’ Equity		5,347.5			5,450.0			5,815.9			5,586.4			5,811.6			6,143.5			5,518.9			5,970.8			6,175.6
Total Liabilities and Shareholders’ Equity	$	93,184.6		$	92,497.6		$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3
Shareholders’ Equity Per Share
Book Value, Excluding AOCI	$	25.97		$	25.94		$	26.41		$	26.87		$	27.69		$	27.99		$	28.51		$	29.23		$	30.17
Common shares outstanding (in millions)		177.6			177.7			178.0			178.3			178.5			178.8			176.2			174.8			173.8

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.

12/31/2004 PAGE 16

Lincoln Retirement

Income Statements & Operational Data

Unaudited [Millions of Dollars]

For the Year Ended December 31	2000			2001			2002			2003			2004
Revenue
Premiums	$	64.3		$	77.5		$	47.4		$	21.9		$	33.0
Surrender charges		41.8			31.2			31.2			28.9			25.0
Expense assessments		591.3			508.6			446.2			441.9			580.5
Other revenue and fees		11.0			16.7			3.3			8.7			(6.3	)
Net investment income		1,430.5			1,399.1			1,457.5			1,483.7			1,495.9
Realized gains (losses) on investments		(5.2	)		(64.5	)		(196.6	)		(12.5	)		(32.3	)
Gains (losses) on derivatives					(0.3	)		(1.2	)		(6.6	)		(11.5	)
Gain (loss) on reinsurance derivative/trading account securities											2.8			0.8
Mark-to-market adjustment on reclassification from AFS to trading account securities											86.0
Total Revenue		2,133.7			1,968.3			1,787.7			2,054.7			2,085.1
Operating Benefits and Expenses
Benefits paid or provided:
Benefits		254.7			263.9			314.1			181.5			189.9
Interest credited to policy bal.		866.1			863.8			903.8			867.7			836.0
Def. sales inducements net of amortization					(12.1	)		(12.6	)		(14.1	)		(40.6	)
Total insurance benefits		1,120.8			1,115.7			1,205.3			1,035.1			985.2
Underwriting, acquisition, insurance and other expenses
Commissions		326.8			336.3			320.8			318.5			423.5
Other volume related expenses		52.0			49.7			64.6			67.5			163.2
Operating and administrative expenses		206.6			231.8			231.3			226.2			231.7
Restructuring charges					2.0			1.6			20.1			5.4
Taxes, licenses and fees		9.3			13.7			11.5			17.7			14.6
Subtotal		594.8			633.6			629.8			650.0			838.4
Deferral of acquisition costs					(227.8	)		(229.0	)		(223.4	)		(421.9	)
DAC amortization					124.4			155.4			120.4			174.0
DAC deferral net of amortization		(37.5	)		(103.4	)		(73.6	)		(103.0	)		(247.9	)
PVIF amortization		24.2			14.7			31.8			9.5			20.0
Total underwriting, acquisition, insurance and other expenses		581.5			544.9			587.9			556.5			610.5
Goodwill amortization		(0.6	)		1.2									(0.0	)
Total Benefits and Expenses		1,701.7			1,661.8			1,793.3			1,591.7			1,595.9
Income (Loss) Before Federal Income Tax and Cumulative Effect of Accounting Change		432.0			306.5			(5.6	)		463.0			489.2
Federal income taxes		77.3			34.1			(59.3	)		98.9			106.1
Income Before Cumulative Effect of Accounting Change		354.7			272.4			53.7			364.1			383.1
Cumulative effect of accounting change					(7.3	)					(63.6	)		(21.8	)
Net Income	$	354.7		$	265.1		$	53.7		$	300.5		$	361.4
Less:
Restructuring charges					(1.3	)		(1.0	)		(13.1	)		(3.5	)
Realized gains (losses) on investments		(3.4	)		(42.3	)		(127.8	)		(8.2	)		(21.1	)
Gains (losses) on derivatives					(0.2	)		(0.8	)		(4.3	)		(7.4	)
Net gain (loss) on reinsurance derivative/trading account securities											1.8			0.6
Mark-to-market adjustment on reclassification from AFS to trading account securities											55.9
Cumulative effect of accounting change					(7.3	)					(63.6	)		(21.8	)
Income from Operations	$	358.1		$	316.2		$	183.4		$	331.9		$	414.6
Effective tax rate on Income from Operations		18.1	%		15.3	%		5.4	%		19.7	%		22.9	%
Revenue	$	2,133.7		$	1,968.3		$	1,787.7		$	2,054.7		$	2,085.1
Less:
Realized gains (losses) on investments		(5.2	)		(64.5	)		(196.6	)		(12.5	)		(32.3	)
Gains (losses) on derivatives					(0.3	)		(1.2	)		(6.6	)		(11.5	)
Gain (loss) on reinsurance derivative/trading account securities											2.8			0.8
Mark-to-market adjustment on reclassification from AFS to trading account securities											86.0
Operating Revenue	$	2,138.9		$	2,033.1		$	1,985.5		$	1,985.1		$	2,128.0
Average capital	$	1,602.9		$	1,831.4		$	2,339.6		$	2,400.3		$	2,589.1
Net Income return on average capital		22.1	%		14.5	%		2.3	%		12.5	%		14.0	%
Income from operations return on average capital		22.3	%		17.3	%		7.8	%		13.8	%		16.0	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period				$	812.5		$	894.3		$	824.7		$	854.6
Deferral					227.8			229.0			223.4			421.9
Amortization					(124.4	)		(155.4	)		(120.4	)		(174.0	)
Included in Total Benefits and Expenses					103.4			73.6			103.0			247.9
Adjustment related to realized (gains) losses on available-for-sale securities					68.2			73.0			(18.7	)		(28.3	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(90.0	)		(201.3	)		(54.3	)		8.3
Other*					0.2			(14.8	)
Cumulative effect of accounting change														(42.3	)
Balance at end-of-period				$	894.3		$	824.7		$	854.6		$	1,040.4
Roll Forward of Present Value of In-Force
Balance at beginning-of-period				$	169.2		$	154.5		$	122.7		$	113.2
Amortization					(14.7	)		(31.8	)		(9.5	)		(20.0	)
Cumulative effect of accounting change														(0.6	)
Balance at end-of-period				$	154.5		$	122.7		$	113.2		$	92.6

* 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.

12/31/2004 PAGE 17

Lincoln Retirement

Income Statements & Operational Data

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Revenue
Premiums	$	8.7		$	5.5		$	3.0		$	7.8		$	5.6		$	6.5		$	7.4		$	9.2		$	9.9
Surrender charges		7.4			6.9			8.5			7.4			6.2			5.9			6.0			6.7			6.4
Expense assessments		100.6			97.6			104.3			115.2			124.8			137.3			140.9			145.2			157.1
Other revenue and fees		2.7			(1.4	)		1.3			8.3			0.5			(0.8	)		(2.1	)		(1.3	)		(2.0	)
Net investment income		378.3			367.0			369.8			377.4			369.5			379.0			382.3			366.5			368.0
Realized gains (losses) on investments		(46.1	)		(76.8	)		0.9			18.6			44.7			(5.7	)		(14.5	)		(21.2	)		9.1
Gains (losses) on derivatives		(0.1	)		(1.0	)		(1.5	)		1.7			(5.8	)		(3.7	)		(2.8	)		(3.1	)		(1.9	)
Gain (loss) on reinsurance derivative/trading account securities														2.8			(2.1	)		7.4			(3.0	)		(1.4	)
Mark-to-market adjustment on reclassification from AFS to trading account securities														86.0
Total Revenue		451.4			397.8			486.4			536.3			634.2			516.5			524.5			499.0			545.1
Benefits and Expenses
Benefits paid or provided:
Benefits		78.4			65.0			34.8			44.6			37.1			54.1			52.0			40.5			43.4
Interest credited to policy balances		231.7			220.1			217.1			216.5			214.0			207.8			208.0			209.9			210.4
Def. sales inducements net of amortization		(3.2	)		(3.3	)		(2.4	)		(2.8	)		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)
Total insurance benefits		306.9			281.8			249.5			258.2			245.5			252.8			250.2			240.0			242.2
Underwriting, acquisition, insurance and other expenses:
Commissions		72.8			66.8			74.2			80.7			96.8			102.9			106.2			103.5			110.9
Other volume related expenses		18.1			14.0			14.7			16.1			22.8			38.8			40.7			37.8			45.8
Operating and administrative expenses		69.9			54.0			56.6			57.0			58.5			51.7			58.1			62.4			59.4
Restructuring charges								6.2			8.4			5.5			1.8			1.8			2.6			(0.7	)
Taxes, licenses and fees		(0.5	)		5.7			4.3			3.7			4.0			5.2			3.7			3.2			2.5
Subtotal		160.4			140.4			156.0			166.0			187.6			200.5			210.4			209.5			218.0
Deferral of acquisition costs		(50.9	)		(43.6	)		(47.4	)		(58.9	)		(73.5	)		(101.9	)		(105.5	)		(101.5	)		(112.9	)
DAC amortization		28.4			30.1			27.2			31.6			31.5			41.5			44.4			24.2			63.9
DAC deferral net of amortization		(22.5	)		(13.5	)		(20.2	)		(27.2	)		(42.0	)		(60.4	)		(61.2	)		(77.3	)		(49.0	)
PVIF amortization		20.0			2.3			2.1			3.3			1.8			3.3			2.9			11.5			2.3
Total underwriting, acquisition, insurance and other expenses		157.9			129.2			137.9			142.1			147.4			143.4			152.2			143.7			171.3
Total Benefits and Expenses		464.8			411.0			387.4			400.3			392.9			396.2			402.4			383.7			413.6
Income (Loss) Before Federal Income Tax and Cumulative Effect of Accounting Change		(13.4	)		(13.3	)		99.0			135.9			241.4			120.3			122.1			115.3			131.5
Federal income taxes		(18.4	)		(20.1	)		17.3			33.9			67.9			26.7			28.0			24.5			26.9
Income Before Cumulative Effect of Accounting Change		5.0			6.9			81.7			102.0			173.5			93.6			94.2			90.8			104.6
Cumulative effect of accounting change														(63.6	)		(21.8	)
Net Income	$	5.0		$	6.9		$	81.7		$	102.0		$	109.9		$	71.8		$	94.2		$	90.8		$	104.6
Less:
Restructuring charges								(4.0	)		(5.5	)		(3.6	)		(1.2	)		(1.2	)		(1.7	)		0.5
Realized gains (losses) on investments		(30.4	)		(50.3	)		1.0			12.1			29.1			(3.7	)		(9.4	)		(13.6	)		5.7
Gains (losses) on derivatives					(0.2	)		(1.4	)		1.1			(3.8	)		(2.4	)		(1.8	)		(2.0	)		(1.2	)
Net gain (loss) on reinsurance
derivative/trading account securities														1.8			(1.4	)		4.8			(2.0	)		(0.8	)
Mark-to-market adjustment on reclassification
from AFS to trading account securities														55.9
Cumulative effect of accounting change														(63.6	)		(21.8	)
Income from Operations	$	35.4		$	57.4		$	86.1		$	94.3		$	94.1		$	102.2		$	101.8		$	110.2		$	100.5
Effective tax rate on Income from Operations		(8.1	)%		11.0	%		18.6	%		24.0	%		21.1	%		23.5	%		24.0	%		24.1	%		19.7	%
Revenue	$	451.4		$	397.8		$	486.4		$	536.3		$	634.2		$	516.5		$	524.5		$	499.0		$	545.1
Less:
Realized gains (losses) on investments		(46.1	)		(76.8	)		0.9			18.6			44.7			(5.7	)		(14.5	)		(21.2	)		9.1
Gains (losses) on derivatives		(0.1	)		(1.0	)		(1.5	)		1.7			(5.8	)		(3.7	)		(2.8	)		(3.1	)		(1.9	)
Gain (loss) on reinsurance
derivative/trading account securities														2.8			(2.1	)		7.4			(3.0	)		(1.4	)
Mark-to-market adjustment on reclassification from AFS to trading account securities														86.0
Operating Revenue	$	497.6		$	475.5		$	487.0		$	516.0		$	506.6		$	528.0		$	534.4		$	526.2		$	539.4
Average capital	$	2,504.9		$	2,526.7		$	2,262.3		$	2,386.7		$	2,425.4		$	2,532.6		$	2,575.1		$	2,560.5		$	2,688.4
Net Income return on average capital		0.8	%		1.1	%		14.4	%		17.1	%		18.1	%		11.3	%		14.6	%		14.2	%		15.6	%
Income from operations return on average capital		5.7	%		9.1	%		15.2	%		15.8	%		15.5	%		16.1	%		15.8	%		17.2	%		14.9	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	$	816.0		$	824.7		$	786.2		$	616.3		$	721.7		$	854.6		$	748.7		$	1,056.2		$	984.6
Deferral		50.9			43.6			47.4			58.9			73.5			101.9			105.5			101.5			112.9
Amortization		(28.4	)		(30.1	)		(27.2	)		(31.6	)		(31.5	)		(41.5	)		(44.4	)		(24.2	)		(63.9	)
Included in Total Benefits and Expenses		22.5			13.5			20.2			27.2			42.0			60.4			61.2			77.3			49.0
Adjustment related to realized (gains) losses on available-for-sale securities		16.1			21.8			7.9			(31.8	)		(16.7	)		(10.2	)		(6.0	)		(1.8	)		(10.3	)
Adjustment related to unrealized (gains) losses on available-for-sale securities		(29.9	)		(73.9	)		(197.9	)		109.9			107.6			(113.9	)		252.4			(147.2	)		17.0
Other
Cumulative effect of accounting change																	(42.3	)
Balance at end-of-quarter	$	824.7		$	786.2		$	616.3		$	721.7		$	854.6		$	748.7		$	1,056.2		$	984.6		$	1,040.4
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	$	142.7		$	122.7		$	120.4		$	118.3		$	115.0		$	113.2		$	109.4		$	106.4		$	94.9
Amortization		(20.0	)		(2.3	)		(2.1	)		(3.3	)		(1.8	)		(3.3	)		(2.9	)		(11.5	)		(2.3	)
Cumulative effect of accounting change																	(0.6	)
Balance at end-of-quarter	$	122.7		$	120.4		$	118.3		$	115.0		$	113.2		$	109.4		$	106.4		$	94.9		$	92.6

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.

12/31/2004 PAGE 18

Lincoln Retirement

Annuity Account Value Rollforward

Unaudited [Billions of Dollars]

	2000			2001			2002			2003			2004
Fixed Annuities-Bal Beg-of-Year	$	18.210		$	16.615		$	18.004		$	20.087		$	21.220
Gross Deposits		2.074			3.342			3.672			3.125			3.110
Withdrawals (incl charges) & deaths		(3.283	)		(2.448	)		(2.637	)		(2.074	)		(2.227	)
Net flows		(1.209	)		0.894			1.035			1.051			0.884
Transfer from (to) var annuities		(1.329	)		(0.428	)		0.108			(0.817	)		(1.395	)
Interest credited		0.944			0.923			0.940			0.899			0.856
Fixed Annuities-Gross		16.615			18.004			20.087			21.220			21.565
Reinsurance Ceded		(1.221	)		(1.514	)		(2.003	)		(2.353	)		(2.297	)
Fixed Annuities-Bal End-of-Year	$	15.394		$	16.491		$	18.085		$	18.868		$	19.268
Fixed Annuities Incremental Deposits *	$	1.918		$	3.213		$	3.600		$	3.067		$	3.046
Variable Annuities-Bal Beg-of-Year	$	41.493		$	39.427		$	34.638		$	27.438		$	35.786
Gross Deposits		3.165			3.067			2.743			3.119			5.910
Withdrawals (incl charges) & deaths		(4.830	)		(3.856	)		(3.325	)		(3.162	)		(3.871	)
Net flows		(1.665	)		(0.789	)		(0.582	)		(0.044	)		2.038
Transfer from (to) fixed annuities		1.320			0.428			(0.122	)		0.809			1.356
Invest inc & change in mkt value		(1.721	)		(4.428	)		(6.497	)		7.583			4.043
Var Annuities-Bal End-of-Year	$	39.427		$	34.638		$	27.438		$	35.786		$	43.223
Variable Annuities Incremental Deposits *	$	2.667		$	2.624		$	2.569		$	3.019		$	5.755
Total Annuities-Bal Beg-of-Year	$	59.703		$	56.042		$	52.642		$	47.525		$	57.006
Gross Deposits		5.239			6.409			6.415			6.244			9.020
Withdrawals (incl charges) & deaths		(8.113	)		(6.304	)		(5.962	)		(5.236	)		(6.098	)
Net flows		(2.874	)		0.105			0.453			1.007			2.922
Transfers		(0.009	)					(0.013	)		(0.008	)		(0.039	)
Interest credited & change in mkt value		(0.777	)		(3.505	)		(5.558	)		8.482			4.899
Total Gross Annuities-Bal End-of-Year		56.042			52.642			47.525			57.006			64.788
Reinsurance Ceded		(1.221	)		(1.514	)		(2.003	)		(2.353	)		(2.297	)
Total Annuities (Net of Ceded) - Bal End-of-Year	$	54.821		$	51.129		$	45.522		$	54.653		$	62.490
Total Annuities Incremental Deposits *		4.585			5.837			6.169			6.086			8.802
Var Ann Under Agree - Included above		0.941			1.077			1.186			2.166			3.127
*  Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.459		$	1.712		$	1.844		$	1.415		$	1.026
Withdrawals		(2.271	)		(1.604	)		(1.473	)		(0.934	)		(1.119	)
Net Flows	$	(1.812	)	$	0.108		$	0.371		$	0.481		$	(0.093	)
Gross Fixed Account Values							$	10.475		$	11.440		$	11.820
Reinsurance Ceded								(2.003	)		(2.353	)		(2.297	)
Net Fixed Account Values							$	8.473		$	9.087		$	9.522
Variable Annuities - including fixed portion of variable contracts
Deposits	$	4.780		$	4.697		$	4.571		$	4.829		$	7.994
Withdrawals		(5.842	)		(4.700	)		(4.489	)		(4.302	)		(4.979	)
Net Flows	$	(1.062	)	$	(0.003	)	$	0.082		$	0.527		$	3.015
Variable Account Values							$	37.050		$	45.567		$	52.969
Fixed Portion of Variable Contracts
Deposits	$	1.615		$	1.630		$	1.828		$	1.710		$	2.085
Withdrawals		(1.012	)		(0.844	)		(1.164	)		(1.140	)		(1.108	)
Net Flows	$	0.603		$	0.786		$	0.664		$	0.570		$	0.977
Fixed Portion of Variable Account Values							$	9.612		$	9.781		$	9.746
Average Daily Variable Account Values	$	41.776		$	35.573		$	30.826		$	30.372		$	38.322
Annuity Product Spread Information (1)
Net Investment Income (2)		7.38	%		7.38	%		6.98	%		6.41	%		6.28	%
Interest Credited to Policyholders		5.24	%		5.33	%		4.87	%		4.25	%		3.92	%
Spread (2)		2.14	%		2.05	%		2.11	%		2.16	%		2.37	%

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

(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread was 20 bps in 2004, 6 bps in 2003 and 7 bps in 2002

(3) 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 6 bps to the yield and spread.

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.

12/31/2004 PAGE 19

Lincoln Retirement

Annuity Account Value Rollforward

Unaudited [Billions of Dollars]

	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Fixed Annuities-Bal Beg-of-Quarter	$	18.005		$	18.179		$	18.680		$	19.563		$	20.088		$	20.612		$	20.864		$	21.132		$	21.221		$	21.281		$	21.476		$	21.633
Gross Deposits		0.906			0.853			1.091			0.822			0.776			0.778			0.778			0.792			0.817			0.779			0.783			0.732
Withdrawals (incl charges) & deaths		(0.730	)		(0.551	)		(0.825	)		(0.531	)		(0.524	)		(0.501	)		(0.492	)		(0.557	)		(0.571	)		(0.515	)		(0.554	)		(0.587	)
Net flows		0.176			0.302			0.265			0.291			0.253			0.277			0.286			0.235			0.246			0.264			0.228			0.145
Transfer from (to) var annuities		(0.232	)		(0.032	)		0.379			(0.007	)		0.046			(0.250	)		(0.243	)		(0.369	)		(0.399	)		(0.280	)		(0.287	)		(0.429	)
Interest credited		0.230			0.231			0.238			0.240			0.226			0.226			0.225			0.223			0.213			0.211			0.215			0.216
Fixed Annuities-Gross		18.179			18.680			19.563			20.088			20.612			20.864			21.132			21.221			21.281			21.476			21.633			21.565
Reinsurance Ceded		(1.645	)		(1.770	)		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)
Fixed Annuities-Bal End-of-Quarter	$	16.534		$	16.910		$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268
Fixed Annuities Incremental Deposits *	$	0.881		$	0.839		$	1.072		$	0.808		$	0.753		$	0.768		$	0.767		$	0.779		$	0.795		$	0.767		$	0.767		$	0.718
Variable Annuities-Bal Beg-of-Quarter	$	34.638		$	35.150		$	31.206		$	25.942		$	27.438		$	26.474		$	30.457		$	31.709		$	35.786		$	37.619		$	38.398		$	38.698
Gross Deposits		0.808			0.787			0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655
Withdrawals (incl charges) & deaths		(0.896	)		(0.866	)		(0.800	)		(0.763	)		(0.806	)		(0.762	)		(0.809	)		(0.786	)		(0.941	)		(0.988	)		(0.936	)		(1.006	)
Net flows		(0.088	)		(0.079	)		(0.197	)		(0.217	)		(0.158	)		(0.178	)		(0.009	)		0.300			0.465			0.436			0.488			0.649
Transfer from (to) fixed annuities		0.234			0.032			(0.388	)		0.000			(0.048	)		0.249			0.243			0.365			0.400			0.266			0.262			0.427
Invest inc & change in mkt value		0.366			(3.897	)		(4.679	)		1.713			(0.759	)		3.912			1.018			3.412			0.968			0.076			(0.450	)		3.448
Var Annuities-Bal End-of-Quarter	$	35.150		$	31.206		$	25.942		$	27.438		$	26.474		$	30.457		$	31.709		$	35.786		$	37.619		$	38.398		$	38.698		$	43.223
Variable Annuities Incremental Deposits *	$	0.725		$	0.744		$	0.573		$	0.528		$	0.629		$	0.560		$	0.776		$	1.053		$	1.370		$	1.381		$	1.380		$	1.624
Total Annuities - Bal Beg-of-Quarter	$	52.643		$	53.329		$	49.887		$	45.505		$	47.525		$	47.086		$	51.321		$	52.842		$	57.007		$	58.900		$	59.875		$	60.331
Gross Deposits		1.714			1.640			1.694			1.368			1.424			1.363			1.578			1.879			2.223			2.203			2.207			2.387
Withdrawals (incl charges) & deaths		(1.626	)		(1.417	)		(1.626	)		(1.294	)		(1.329	)		(1.263	)		(1.301	)		(1.343	)		(1.512	)		(1.503	)		(1.490	)		(1.593	)
Net flows		0.088			0.223			0.068			0.074			0.095			0.099			0.277			0.536			0.712			0.701			0.716			0.794
Transfers		0.002			0.000			(0.009	)		(0.006	)		(0.002	)		(0.002	)		0.001			(0.004	)		0.001			(0.014	)		(0.024	)		(0.002	)
Interest credited & change in mkt value		0.596			(3.666	)		(4.441	)		1.953			(0.532	)		4.137			1.243			3.634			1.181			0.288			(0.235	)		3.665
Total Gross Annuities - Bal End-of-Quarter		53.329			49.887			45.505			47.525			47.086			51.321			52.842			57.007			58.900			59.875			60.331			64.788
Reinsurance Ceded		(1.645	)		(1.770	)		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)
Total Annuities (Net of Ceded) - Bal End-of-Qtr	$	51.684		$	48.117		$	43.592		$	45.523		$	45.011		$	49.152		$	50.577		$	54.654		$	56.550		$	57.542		$	58.016		$	62.491
Total Annuities Incremental Deposits *		1.606			1.583			1.645			1.336			1.382			1.328			1.543			1.833			2.165			2.148			2.146			2.342
Var Ann Under Agree - Included above		1.207			1.175			1.083			1.186			1.355			1.637			1.820			2.166			2.463			2.618			2.692			3.127
*  Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.505		$	0.430		$	0.559		$	0.351		$	0.368		$	0.356		$	0.344		$	0.347		$	0.365		$	0.249		$	0.220		$	0.192
Withdrawals		(0.463	)		(0.267	)		(0.516	)		(0.228	)		(0.208	)		(0.235	)		(0.238	)		(0.253	)		(0.269	)		(0.261	)		(0.286	)		(0.302	)
Net Flows	$	0.042		$	0.163		$	0.042		$	0.123		$	0.160		$	0.121		$	0.106		$	0.094		$	0.096		($	0.013	)	($	0.066	)	($	0.110	)
Gross Fixed Account Values		9.761		$	10.048		$	10.219		$	10.475		$	10.759		$	11.001		$	11.226		$	11.440		$	11.649		$	11.755		$	11.811		$	11.820
Reinsurance Ceded		(1.645	)		(1.770	)		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)
Net Fixed Account Values	$	8.116		$	8.278		$	8.306		$	8.473		$	8.684		$	8.832		$	8.962		$	9.087		$	9.299		$	9.422		$	9.495		$	9.522
Variable Annuities - including fixed portion of variable contracts
Deposits	$	1.209		$	1.210		$	1.135		$	1.017		$	1.056		$	1.007		$	1.234		$	1.532		$	1.859		$	1.954		$	1.986		$	2.195
Withdrawals		(1.163	)		(1.150	)		(1.109	)		(1.066	)		(1.121	)		(1.028	)		(1.063	)		(1.090	)		(1.243	)		(1.241	)		(1.204	)		(1.291	)
Net Flows	$	0.046		$	0.060		$	0.026		($	0.049	)	($	0.065	)	($	0.022	)	$	0.172		$	0.442		$	0.616		$	0.713		$	0.782		$	0.904
Variable Account Values	$	43.568		$	39.839		$	35.286		$	37.050		$	36.327		$	40.320		$	41.616		$	45.567		$	47.251		$	48.120		$	48.521		$	52.969
Fixed Portion of Variable Contracts
Deposits	$	0.401		$	0.423		$	0.532		$	0.472		$	0.408		$	0.422		$	0.434		$	0.445		$	0.452		$	0.530		$	0.563		$	0.540
Withdrawals		(0.267	)		(0.284	)		(0.309	)		(0.303	)		(0.316	)		(0.266	)		(0.254	)		(0.304	)		(0.302	)		(0.253	)		(0.268	)		(0.284	)
Net Flows	$	0.134		$	0.139		$	0.223		$	0.169		$	0.093		$	0.156		$	0.180		$	0.141		$	0.151		$	0.277		$	0.294		$	0.255
Fixed Portion of Variable Account Values	$	8.418		$	8.632		$	9.344		$	9.612		$	9.853		$	9.864		$	9.906		$	9.781		$	9.631		$	9.721		$	9.822		$	9.746
Average Daily Variable Account Values	$	34.341		$	33.502		$	28.023		$	27.431		$	26.907		$	29.195		$	31.490		$	33.897		$	37.160		$	37.565		$	37.675		$	40.889
Annuity Product Spread Information (1)
Net Investment Income (2)(3)		7.15	%		7.11	%		6.87	%		6.89	%		6.61	%		6.49	%		6.42	%		6.13	%		6.43	%		6.34	%		6.14	%		6.23	%
Interest Credited to Policyholders		5.14	%		4.92	%		4.76	%		4.72	%		4.42	%		4.29	%		4.20	%		4.09	%		3.97	%		3.93	%		3.90	%		3.87	%
Spread (2)(3)		2.01	%		2.18	%		2.11	%		2.17	%		2.19	%		2.20	%		2.22	%		2.04	%		2.46	%		2.41	%		2.24	%		2.36	%

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

(2) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread was 17 bps in the 4th quarter of 2004, 19 bps in the 3rd quarter of 2004, 38 bps in the 2nd quarter of 2004, 7 bps in the 1st quarter of 2004, and 3 bps in the 4th quarter of 2003.

(3) 1st quarter 2004 includes income from contingent interest received, which contributed $13 million to net investment income or 27 bps to the yield and spread.

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.

12/31/2004 PAGE 20

Life Insurance Segment

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	2000			2001			2002			2003			2004
Revenue
Premiums	$	227.3		$	212.4		$	203.8		$	194.9		$	194.0
Surrender charges		66.4			66.1			54.1			53.6			51.8
Mortality assessments		465.2			499.4			501.5			516.7			518.7
Expense assessments		191.8			191.4			199.5			201.8			208.6
Other revenue and fees		14.2			17.9			23.7			28.0			31.4
Net investment income		871.5			910.2			899.1			911.1			948.4
Realized gains (losses) on investments		(17.4	)		(57.6	)		(98.2	)		3.6			(13.3	)
Gains (losses) on derivatives					0.7			1.5			(3.6	)		0.1
Gain (loss) on reinsurance derivative/trading account securities											(0.6	)		(2.8	)
Total Revenue		1,819.0			1,840.6			1,785.0			1,905.5			1,936.9
Benefits and Expenses
Benefits paid or provided:
Benefits		411.5			418.6			427.4			416.0			404.0
Div accum & div to policyholders		80.8			78.5			76.0			81.6			77.4
Interest credited to policy bal.		525.4			569.9			598.6			598.2			579.7
Total insurance benefits		1,017.8			1,067.0			1,101.9			1,095.8			1,061.2
Underwriting, acquisition, insurance and other expenses:
Commissions		152.8			142.1			139.8			141.8			136.5
Other volume related expenses		200.9			176.4			190.4			208.3			194.7
Operating and administrative expenses		169.4			166.8			162.2			166.2			168.6
Restructuring Charges					5.4						19.5			4.8
Taxes, licenses and fees		48.5			49.2			53.2			62.2			49.1
Par policyholder interests		1.1
Subtotal		572.7			539.9			545.6			598.0			553.7
Deferral of acquisition costs					(324.8	)		(336.5	)		(370.8	)		(365.2	)
DAC amortization					95.0			105.8			135.5			213.0
DAC deferral net of amortization		(286.5	)		(229.8	)		(230.7	)		(235.2	)		(152.2	)
PVIF amortization		103.7			75.9			73.9			81.4			82.2
Total underwriting, acquisition, insurance and other expenses		389.9			385.9			388.8			444.2			483.7
Goodwill amortization		23.7			23.7
Total Benefits and Expenses		1,431.4			1,476.6			1,490.8			1,540.1			1,544.8
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		387.6			364.0			294.2			365.4			392.0
Federal income taxes		141.6			129.2			88.1			113.9			125.3
Income Before Cumulative Effect of Accounting Change		246.0			234.8			206.1			251.5			266.7
Cumulative effect of accounting changes					(5.5	)					0.6			(2.7	)
Net Income	$	246.0		$	229.3		$	206.1		$	252.1		$	264.0
Less:
Restructuring charges					(3.5	)					(12.7	)		(3.1	)
Realized gains (losses) on investments		(10.7	)		(38.5	)		(63.8	)		2.3			(8.7	)
Gains (losses) on derivatives					1.6			1.0			(2.3	)		0.1
Net gain (loss) on reinsurance derivative/trading account securities											(0.4	)		(1.8	)
Cumulative effect of accounting change					(5.5	)					0.6			(2.7	)
Income from Operations	$	256.7		$	275.3		$	269.0		$	264.5		$	280.3
Effective tax rate on Income from Operations		36.6	%		35.4	%		31.2	%		31.4	%		32.1	%
Revenue	$	1,819.0		$	1,840.6		$	1,785.0		$	1,905.5		$	1,936.9
Less:
Realized gains (losses) on investments		(17.4	)		(57.6	)		(98.2	)		3.6			(13.3	)
Gains (losses) on derivatives					0.7			1.5			(3.6	)		0.1
Gain (loss) on reinsurance derivative/trading account securities											(0.6	)		(2.8	)
Operating Revenue	$	1,836.4		$	1,897.5		$	1,881.7		$	1,906.1		$	1,952.9
Average capital	$	2,641.3		$	2,734.4		$	2,846.3		$	2,849.9		$	3,036.1
Net Income return on average capital		9.3	%		8.4	%		7.2	%		8.8	%		8.7	%
Income from operations return on average capital		9.7	%		10.1	%		9.4	%		9.3	%		9.2	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period				$	1,079.3		$	1,265.7		$	1,424.5		$	1,578.3
Deferral					324.8			336.5			370.8			365.2
Amortization					(95.0	)		(105.8	)		(135.5	)		(213.0	)
Included in Total Benefits and Expenses					229.8			230.7			235.2			152.2
Adjustment related to realized (gains) losses on available-for-sale securities					43.0			39.7			(31.9	)		(16.1	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(89.0	)		(130.9	)		(49.5	)		(25.6	)
Other*					2.5			19.3						3.2
Balance at end-of-period				$	1,265.7		$	1,424.5		$	1,578.3		$	1,691.9
Roll Forward of Present Value of In-Force
Balance at beginning-of-period				$	1,040.5		$	963.9		$	890.0		$	808.6
Amortization					(75.9	)		(73.9	)		(81.4	)		(82.2	)
Other					(0.7	)
Balance at end-of-period				$	963.9		$	890.0		$	808.6		$	726.5

* Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002. Year-to-date 2004 reflects the DAC unlocking resulting from the implementation of SOP 03-1.

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.

12/31/2004 PAGE 21

Life Insurance Segment

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Revenue
Premiums	$	56.4		$	47.8		$	49.7		$	45.2		$	52.2		$	47.9		$	48.3		$	44.3		$	53.6
Surrender charges		15.5			11.4			12.4			13.7			16.1			13.8			12.7			11.1			14.2
Mortality assessments		127.3			129.7			128.4			130.2			128.4			128.5			129.6			130.1			130.5
Expense assessments		56.3			48.3			49.6			48.9			55.0			49.8			51.0			49.8			58.0
Other revenue and fees		6.2			5.8			7.3			6.4			8.4			7.8			8.2			7.3			8.1
Net investment income		223.3			227.6			229.0			226.4			228.1			235.7			234.9			238.4			239.4
Realized gains (losses) on investments		(5.5	)		(12.7	)		(2.6	)		(1.7	)		20.5			(3.9	)		(5.8	)		(2.6	)		(1.0	)
Gains (losses) on derivatives		0.1			(0.5	)		0.3			(0.3	)		(3.1	)								0.1
Gain (loss) on reinsurance derivative/trading account securities														(0.6	)		(0.3	)					(1.8	)		(0.7	)
Total Revenue		479.6			457.5			474.0			468.9			505.0			479.2			478.9			476.8			502.0
Benefits and Expenses
Benefits paid or provided:
Benefits		114.6			103.8			110.5			118.5			83.2			97.4			104.4			95.8			106.4
Div accum & div to policyholders		22.8			14.4			17.6			15.9			33.8			18.5			18.6			16.7			23.6
Interest credited to policy bal.		150.7			150.1			149.8			150.7			147.5			144.8			143.9			143.8			147.1
Total insurance benefits		288.0			268.3			277.9			285.1			264.5			260.7			267.0			256.3			277.2
Underwriting, acquisition, insurance and other expenses:
Commissions		38.6			32.4			30.7			34.4			44.3			31.4			28.2			34.8			42.0
Other volume related expenses		58.3			54.2			43.2			48.3			62.6			46.5			44.8			45.9			57.4
Operating and administrative expenses		44.7			40.6			38.5			41.7			45.4			38.5			40.7			46.5			42.9
Restructuring charges					5.5			7.3			2.5			4.2			2.7			0.5			0.9			0.7
Taxes, licenses and fees		11.5			14.4			13.8			16.1			18.0			12.4			11.5			12.8			12.5
Subtotal		153.2			147.1			133.4			143.0			174.4			131.6			125.8			140.9			155.4
Deferral of acquisition costs		(101.4	)		(91.0	)		(79.7	)		(88.0	)		(112.1	)		(83.7	)		(81.1	)		(90.8	)		(109.7	)
DAC amortization		36.3			47.0			29.5			21.1			38.0			48.7			43.8			64.9			55.7
DAC deferral net of amortization		(65.1	)		(44.0	)		(50.2	)		(66.9	)		(74.1	)		(35.0	)		(37.3	)		(25.9	)		(54.0	)
PVIF amortization		17.4			17.4			17.2			26.9			19.9			18.5			17.5			29.8			16.4
Total underwriting, acquisition, insurance and other expenses		105.5			120.5			100.4			103.0			120.2			115.1			105.9			144.9			117.7
Total Benefits and Expenses		393.6			388.8			378.3			388.1			384.8			375.8			372.9			401.2			394.9
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		86.0			68.7			95.7			80.8			120.3			103.4			106.0			75.5			107.1
Federal income taxes		26.5			20.2			30.1			24.9			38.7			33.1			34.0			23.5			34.7
Income Before Cumulative Effect of Accounting Change		59.5			48.5			65.6			55.8			81.6			70.3			72.0			52.0			72.4
Cumulative effect of accounting change														0.6			(2.7	)
Net Income	$	59.5		$	48.5		$	65.6		$	55.8		$	82.2		$	67.5		$	72.0		$	52.0		$	72.4
Less:
Restructuring charges					(3.6	)		(4.7	)		(1.6	)		(2.7	)		(1.8	)		(0.4	)		(0.6	)		(0.4	)
Realized gains (losses) on investments		(3.6	)		(8.1	)		(1.9	)		(1.1	)		13.4			(2.6	)		(3.8	)		(1.7	)		(0.7	)
Gains (losses) on derivatives		0.1			(0.5	)		0.4			(0.2	)		(2.0	)								0.1
Net gain (loss) on reinsurance derivative/trading account securities														(0.4	)		(0.2	)					(1.2	)		(0.4	)
Cumulative effect of accounting change														0.6			(2.7	)
Income from Operations	$	63.1		$	60.7		$	71.8		$	58.7		$	73.4		$	74.8		$	76.2		$	55.4		$	74.0
Effective tax rate on Income from Operations		31.0	%		30.6	%		31.8	%		31.1	%		31.8	%		32.2	%		32.2	%		31.4	%		32.4	%
Revenue	$	479.6		$	457.5		$	474.0		$	468.9		$	505.0		$	479.2		$	478.9		$	476.8		$	502.0
Less:
Realized gains (losses) on investments		(5.5	)		(12.7	)		(2.6	)		(1.7	)		20.5			(3.9	)		(5.8	)		(2.6	)		(1.0	)
Gains (losses) on derivatives		0.1			(0.5	)		0.3			(0.3	)		(3.1	)								0.1
Gain (loss) on reinsurance derivative/trading account securities														(0.6	)		(0.3	)					(1.8	)		(0.7	)
Operating Revenue	$	485.0		$	470.7		$	476.2		$	470.8		$	488.2		$	483.4		$	484.8		$	481.1		$	503.7
Average capital	$	2,851.5		$	2,864.2		$	2,792.7		$	2,849.0		$	2,893.7		$	2,927.4		$	2,993.5		$	3,086.4		$	3,137.0
Net Income return on average capital		8.3	%		6.8	%		9.4	%		7.8	%		11.4	%		9.2	%		9.6	%		6.7	%		9.2	%
Income from operations return on average capital		8.8	%		8.5	%		10.3	%		8.2	%		10.1	%		10.2	%		10.2	%		7.2	%		9.4	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	$	1,362.2		$	1,424.5		$	1,447.7		$	1,381.3		$	1,483.4		$	1,578.3		$	1,534.8		$	1,734.8		$	1,646.4
Deferral		101.4			91.0			79.7			88.0			112.1			83.7			81.1			90.8			109.7
Amortization		(36.3	)		(47.0	)		(29.5	)		(21.1	)		(38.0	)		(48.7	)		(43.8	)		(64.9	)		(55.7	)
Included in Total Benefits and Expenses		65.1			44.0			50.2			66.9			74.1			35.0			37.3			25.9			54.0
Adjustment related to realized (gains) losses on available-for-sale securities		1.0			7.0			(0.3	)		(27.6	)		(11.0	)		(3.8	)		(2.4	)		(5.1	)		(5.0	)
Adjustment related to unrealized (gains) losses on available-for-sale securities		(3.7	)		(27.9	)		(116.3	)		62.8			31.9			(77.6	)		165.0			(109.0	)		(3.7	)
Other*																	3.0			0.2			(0.1	)		0.2
Balance at end-of-quarter	$	1,424.5		$	1,447.7		$	1,381.3		$	1,483.4		$	1,578.3		$	1,534.8		$	1,734.8		$	1,646.4		$	1,691.9
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	$	907.4		$	890.1		$	872.7		$	855.5		$	828.5		$	808.6		$	790.1		$	772.6		$	742.8
Amortization		(17.4	)		(17.4	)		(17.2	)		(26.9	)		(19.9	)		(18.5	)		(17.5	)		(29.8	)		(16.4	)
Other		0.1			0.1
Balance at end-of-quarter	$	890.1		$	872.7		$	855.5		$	828.5		$	808.6		$	790.1		$	772.6		$	742.8		$	726.5

* First quarter of 2004 reflects the DAC unlocking resulting from the implementation of SOP 03-1.

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.

12/31/2004 PAGE 22

Life Insurance Segment

Operational Data

Unaudited [Millions of Dollars]

For the Year Ended December 31	2000		2001		2002		2003		2004
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard	$	195.1	$	184.7	$	356.9	$	417.0	$	401.1
MoneyGuard		94.1		107.9		138.4		224.7		244.5
Total		289.3		292.7		495.3		641.6		645.6
Variable Universal Life		218.7		228.6		134.5		79.4		84.8
Whole Life		22.4		26.3		30.3		34.4		41.2
Term		41.9		30.8		32.3		40.2		41.0
Total Retail		572.3		578.4		692.3		795.7		812.6
Corporate Owned Life Insurance (COLI)		87.0		47.3		88.1		125.6		73.7
Total	$	659.3	$	625.6	$	780.4	$	921.3	$	886.2
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	$	200.6	$	196.1	$	201.7	$	223.5	$	209.3
Lincoln Financial Distributors		444.7		413.0		556.3		631.9		623.7
Other*		14.0		16.6		22.4		65.8		53.2
Total by Distribution	$	659.3	$	625.6	$	780.4	$	921.3	$	886.2
Life Insurance In-Force (Billions)
Universal Life & Other	$	115.872	$	121.168	$	126.016	$	129.623	$	132.120
Term Insurance		100.130		113.226		127.880		151.717		172.459
Total Life Segment In-Force	$	216.002	$	234.394	$	253.896	$	281.340	$	304.579

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004		Jun 2004		Sep 2004		Dec 2004
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard	$	57.4	$	63.8	$	98.0	$	137.8	$	84.5	$	93.8	$	114.2	$	124.5	$	95.7	$	100.7	$	90.1	$	114.5
MoneyGuard		29.0		35.1		34.9		39.3		46.3		48.9		58.2		71.4		56.2		61.1		60.7		66.6
Total		86.4		98.9		132.9		177.1		130.8		142.7		172.3		195.9		151.9		161.8		150.8		181.1
Variable Universal Life		39.0		42.4		26.1		27.0		24.4		14.1		16.6		24.4		22.5		17.7		17.2		27.5
Whole Life		5.2		6.4		7.7		11.0		6.5		7.1		8.5		12.3		10.8		7.6		9.7		13.1
Term		8.7		8.1		7.3		8.1		9.1		9.6		10.5		10.9		10.5		10.6		10.4		9.4
Total Retail		139.4		155.8		174.0		223.2		170.7		173.5		208.0		243.5		195.6		197.8		188.1		231.2
Corporate Owned Life Insurance (COLI)		6.9		46.6		7.8		26.8		10.6		61.8		23.7		29.6		14.2		9.9		29.2		20.4
Total	$	146.3	$	202.4	$	181.8	$	249.9	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	$	41.5	$	48.3	$	46.9	$	64.9	$	42.1	$	46.8	$	66.2		68.5	$	47.7	$	47.2	$	48.2	$	66.1
Lincoln Financial Distributors		100.9		151.6		132.7		171.1		131.7		148.3		156.8		195.2		151.4		152.9		152.0		167.4
Other*		3.8		2.6		2.2		13.9		7.5		40.2		8.7		9.4		10.6		7.5		17.1		18.0
Total by Distribution	$	146.3	$	202.4	$	181.8	$	249.9	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5
Insurance In-Force (Billions)
Universal Life & Other	$	122.316	$	123.674	$	124.085	$	126.016	$	126.414	$	127.276	$	127.855	$	129.623	$	129.669	$	130.294	$	130.989	$	132.120
Term Insurance		117.752		121.076		123.945		127.880		133.251		139.191		145.480		151.717		157.338		162.953		167.979		172.459
Total Segment In-Force	$	240.068	$	244.750	$	248.030	$	253.896	$	259.666	$	266.467	$	273.335	$	281.340	$	287.007	$	293.247	$	298.967	$	304.579

* 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.

12/31/2004 PAGE 23

Life Insurance Segment

Life Insurance Account Value Rollforward

Unaudited [Billions of Dollars]

	2000			2001			2002			2003			2004
Universal Life-Bal Beg-of-Year	$	6.650		$	6.976		$	7.508		$	8.211		$	9.030
Deposits		0.955			1.043			1.332			1.532			1.433
Withdrawals & deaths		(0.426	)		(0.319	)		(0.426	)		(0.437	)		(0.474	)
Net flows		0.528			0.724			0.906			1.095			0.959
Policyholder assessments		(0.584	)		(0.598	)		(0.648	)		(0.702	)		(0.753	)
Interest credited		0.382			0.405			0.428			0.427			0.413
Acq of new business/transfers between segments								0.018
Universal Life-Bal End of Year (1)	$	6.976		$	7.508		$	8.211		$	9.030		$	9.648
Variable Universal Life-Bal Beg-of-Year	$	1.605		$	1.808		$	1.746		$	1.690		$	2.195
Deposits		0.607			0.584			0.504			0.448			0.560
Withdrawals & deaths		(0.132	)		(0.251	)		(0.193	)		(0.208	)		(0.315	)
Net flows		0.475			0.332			0.311			0.240			0.245
Policyholder assessments		(0.141	)		(0.170	)		(0.186	)		(0.191	)		(0.194	)
Invest inc & chg in mkt value		(0.130	)		(0.225	)		(0.313	)		0.457			0.273
Acq of new business/transfers between segments								0.132
Variable Universal Life-Bal End-of-Year	$	1.808		$	1.746		$	1.690		$	2.195		$	2.520
Interest Sensitive Whole Life-Bal Beg-of-Year	$	1.963		$	2.062		$	2.123		$	2.186		$	2.195
Deposits		0.322			0.307			0.301			0.279			0.250
Withdrawals & deaths		(0.168	)		(0.200	)		(0.199	)		(0.236	)		(0.207	)
Net flows		0.154			0.107			0.103			0.043			0.043
Policyholder assessments		(0.168	)		(0.164	)		(0.167	)		(0.159	)		(0.149	)
Interest credited		0.113			0.118			0.127			0.125			0.126
Acq of new business/transfers between segments
Int Sensitive Whole Life-Bal End-of-Year	$	2.062		$	2.123		$	2.186		$	2.195		$	2.214
Total Segment-Life Insurance Account Values
Bal Beg-of-Year	$	10.217		$	10.847		$	11.377		$	12.086		$	13.420
Deposits		1.884			1.934			2.138			2.259			2.243
Withdrawals & deaths		(0.727	)		(0.771	)		(0.818	)		(0.881	)		(0.996	)
Net flows		1.158			1.163			1.320			1.377			1.247
Policyholder assessments		(0.893	)		(0.931	)		(1.002	)		(1.053	)		(1.096	)
Invest inc & change in market value		0.364			0.299			0.241			1.009			0.812
Acq of new business/transfers between segments								0.150
Total Segment-Bal End-of-Year	$	10.847		$	11.377		$	12.086		$	13.420		$	14.382
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)(4)					7.63	%		7.30	%		6.97	%		6.67	%
Interest Credited to Policyholders					5.86	%		5.77	%		5.36	%		4.85	%
Spread (3)(4)					1.77	%		1.53	%		1.61	%		1.81	%
Traditional Products
Net Investment Income (3)(4)					7.49	%		7.42	%		6.99	%		6.90	%

(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 year ends 2001, 2002, 2003, and 2004, interest sensitive products represented 86%, 87%, 88%, 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 commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread for interest sensitive products was 20 bps in 2004, 3 bps in 2003, 4 bps in 2002, and 6 bps in 2001. The impact for traditional products was 18 bps in 2004, 6 bps in 2003, 5 bps in 2002, and 13 bps in 2001.

(4) 2004 includes income from contingent interest received, which contributed $6.5 million to net investment income or 6 bps to the yield and spread on Interest Sensitive Products and $2.4 million to net investment income or 17 bps to the yield and spread on Traditional Products.

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.

12/31/2004 PAGE 24

Life Insurance Segment

Life Insurance Account Value Roll Forward

Unaudited [Billions of Dollars]

	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Universal Life-Bal Beg-of-Quarter	$	7.508		$	7.622		$	7.838		$	7.987		$	8.211		$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444
Deposits		0.248			0.364			0.310			0.410			0.316			0.350			0.426			0.440			0.342			0.345			0.333			0.413
Withdrawals & deaths		(0.097	)		(0.096	)		(0.108	)		(0.125	)		(0.107	)		(0.101	)		(0.117	)		(0.113	)		(0.117	)		(0.128	)		(0.112	)		(0.117	)
Net flows		0.150			0.268			0.201			0.286			0.210			0.249			0.309			0.327			0.225			0.217			0.221			0.296
Policyholder assessments		(0.158	)		(0.158	)		(0.162	)		(0.170	)		(0.168	)		(0.171	)		(0.178	)		(0.185	)		(0.183	)		(0.187	)		(0.188	)		(0.196	)
Interest credited		0.104			0.106			0.110			0.108			0.106			0.106			0.108			0.106			0.103			0.102			0.103			0.105
Acq of new business/transfers between segments		0.018
Universal Life-Bal End-of-Quarter (1)	$	7.622		$	7.838		$	7.987		$	8.211		$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444		$	9.648
Variable Universal Life-Bal Beg of Quarter	$	1.746		$	1.919		$	1.776		$	1.575		$	1.690		$	1.689		$	1.930		$	1.991		$	2.195		$	2.249		$	2.277		$	2.275
Deposits		0.129			0.147			0.102			0.126			0.118			0.114			0.093			0.123			0.106			0.108			0.156			0.192
Withdrawals & deaths		(0.055	)		(0.057	)		(0.034	)		(0.047	)		(0.036	)		(0.050	)		(0.048	)		(0.074	)		(0.073	)		(0.042	)		(0.089	)		(0.111	)
Net flows		0.074			0.090			0.068			0.079			0.082			0.064			0.045			0.049			0.032			0.066			0.067			0.081
Policyholder assessments		(0.047	)		(0.046	)		(0.046	)		(0.047	)		(0.049	)		(0.048	)		(0.046	)		(0.049	)		(0.048	)		(0.048	)		(0.048	)		(0.050	)
Invest inc & chg in mkt value		0.013			(0.186	)		(0.224	)		0.083			(0.034	)		0.225			0.062			0.204			0.070			0.011			(0.021	)		0.214
Acq of new business/transfers between segments		0.132
Variable Universal Life -Bal End-of-Quarter	$	1.919		$	1.776		$	1.575		$	1.690		$	1.689		$	1.930		$	1.991		$	2.195		$	2.249		$	2.277		$	2.275		$	2.520
Interest Sensitive Whole Life - Bal Beg-of-Quarter	$	2.123		$	2.126		$	2.145		$	2.164		$	2.186		$	2.185		$	2.191		$	2.185		$	2.195		$	2.182		$	2.185		$	2.193
Deposits		0.063			0.066			0.073			0.100			0.051			0.062			0.067			0.098			0.054			0.055			0.059			0.082
Withdrawals & deaths		(0.051	)		(0.039	)		(0.045	)		(0.063	)		(0.046	)		(0.050	)		(0.066	)		(0.073	)		(0.063	)		(0.047	)		(0.047	)		(0.050	)
Net flows		0.012			0.026			0.027			0.037			0.005			0.012			0.001			0.026			(0.009	)		0.008			0.012			0.032
Policyholder assessments		(0.042	)		(0.039	)		(0.040	)		(0.046	)		(0.036	)		(0.038	)		(0.039	)		(0.047	)		(0.036	)		(0.036	)		(0.036	)		(0.041	)
Interest credited		0.033			0.032			0.031			0.031			0.030			0.032			0.032			0.031			0.032			0.031			0.032			0.030
Int Sensitive Whole Life-Bal End-of-Quarter	$	2.126		$	2.145		$	2.164		$	2.186		$	2.185		$	2.191		$	2.185		$	2.195		$	2.182		$	2.185		$	2.193		$	2.214
Total Segment-Life Insurance Account Values
Bal Beg-of-Quarter	$	11.377		$	11.667		$	11.759		$	11.726		$	12.086		$	12.233		$	12.663		$	12.958		$	13.420		$	13.606		$	13.770		$	13.912
Deposits		0.440			0.577			0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686
Withdrawals & deaths		(0.204	)		(0.192	)		(0.187	)		(0.234	)		(0.190	)		(0.202	)		(0.231	)		(0.259	)		(0.254	)		(0.217	)		(0.248	)		(0.278	)
Net flows		0.236			0.385			0.297			0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408
Policyholder assessments		(0.246	)		(0.244	)		(0.248	)		(0.263	)		(0.252	)		(0.257	)		(0.262	)		(0.280	)		(0.267	)		(0.271	)		(0.272	)		(0.287	)
Invest inc & change in market value		0.151			(0.049	)		(0.082	)		0.222			0.103			0.363			0.202			0.341			0.205			0.145			0.114			0.348
Acq of new business/transfers between segments		0.150
Total Segment -Bal End-of-Quarter	$	11.667		$	11.759		$	11.726		$	12.086		$	12.233		$	12.663		$	12.958		$	13.420		$	13.606		$	13.770		$	13.912		$	14.382
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)(4)		7.47	%		7.39	%		7.26	%		7.15	%		7.21	%		7.09	%		6.90	%		6.73	%		6.84	%		6.70	%		6.62	%		6.50	%
Interest Credited to Policyholders		5.82	%		5.83	%		5.82	%		5.63	%		5.56	%		5.43	%		5.37	%		5.12	%		4.97	%		4.89	%		4.79	%		4.80	%
Spread (3)(4)		1.65	%		1.56	%		1.44	%		1.52	%		1.65	%		1.65	%		1.53	%		1.61	%		1.87	%		1.81	%		1.83	%		1.69	%
Traditional Products
Net Investment Income (3)(4)		7.42	%		7.37	%		7.58	%		7.28	%		7.16	%		7.13	%		6.99	%		6.72	%		7.33	%		6.61	%		6.97	%		6.60	%

(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, 2004, interest sensitive products represented 88% of total interest sensitive and traditional non-par earning assets.

(3) The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread for interest sensitive products was 13 bps in the 4th quarter of 2004, 29 bps in the 3rd quarter of 2004, 32 bps in the 2nd quarter of 2004, 7 bps in the 1st quarter of 2004, and 1 bp in the 4th quarter of 2003. There was an impact on traditional products of 7 bps in the 4th quarter of 2004, 59 bps in the 3rd quarter of 2004, 5 bps in the 2nd quarter of 2004, no impact during the 1st quarter of 2004, and 10 bps during the 4th quarter of 2003.

(4) First quarter 2004 includes income from contingent interest received, which contributed $6.5 million to net investment income or 25 bps to the yield and spread on Interest Sensitive Products and $2.4 million to net investment income or 72 bps to the yield and spread on Traditional Products.

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.

12/31/2004 PAGE 25

Investment Management

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	2000			2001			2002			2003			2004
Revenue
Investment advisory fees - External	$	231.6		$	197.2		$	183.3		$	205.0		$	252.5
Investment advisory fees - Insurance-related Assets		112.4			105.0			97.7			101.2			105.8
Other revenue and fees		115.9			99.2			87.0			117.9			124.9
Net investment income		57.7			53.6			50.5			49.9			51.7
Realized gains (losses) on investments		(3.9	)		(3.7	)		(5.4	)		0.4			(0.7	)
Sale of subsidiary														110.8
Total Revenue		513.7			451.2			413.1			474.4			644.9
Benefits and Expenses
Underwriting, acquisition, insurance and other expenses:
Operating and administrative expenses		424.9			410.2			393.2			414.6			445.7
Restructuring charges		7.1			0.6			(0.4	)		7.1			1.2
Taxes, licenses and fees		11.6			16.8			13.0			10.3			17.0
Subtotal		443.6			427.5			405.8			431.9			464.0
Other intangibles amortization		16.3			10.8			8.2			7.9			9.7
Total underwriting, acquisition, insurance and other expenses		459.9			438.3			414.0			439.8			473.7
Goodwill amortization		16.2			16.2
Total Benefits and Expenses		476.1			454.6			414.0			439.8			473.7
Income before federal income tax and cumulative effect of accounting change		37.6			(3.3	)		(0.9	)		34.6			171.2
Federal income taxes		19.8			5.5			0.5			4.5			82.8
Income Before Cumulative Effect of Accounting Change		17.9			(8.9	)		(1.4	)		30.2			88.4
Cumulative effect of accounting change					(0.1	)
Net Income	$	17.9		$	(9.0	)	$	(1.4	)	$	30.2		$	88.4
Less:
Realized gains (losses) on investments		(2.5	)		(2.4	)		(3.5	)		0.3			(0.5	)
Gain on sale of subsidiary														46.1
Restructuring charges		(4.6	)		(0.4	)		0.3			(4.6	)		(0.8	)
Cumulative effect of accounting change					(0.1	)
Income from Operations	$	25.0		$	(6.1	)	$	1.8		$	34.5		$	43.6
Net Income-before
- Goodwill amortization	$	34.1		$	7.3		$	(1.4	)	$	30.2		$	88.4
- Goodwill & intang. amort.	$	44.7		$	14.3		$	3.9		$	35.3		$	93.9
Income from Operations-before
- Goodwill amortization	$	41.3		$	10.1		$	1.8		$	34.5		$	43.6
- Goodwill & intang. amort.	$	51.8		$	17.1		$	7.2		$	39.7		$	49.0
Revenue	$	513.7		$	451.2		$	413.1		$	474.4		$	644.9
Less:
Realized gains (losses) on investments		(3.9	)		(3.7	)		(5.4	)		0.4			(0.7	)
Sale of subsidiary														110.8
Operating Revenue	$	517.6		$	454.9		$	418.5		$	474.0		$	534.9
Average Capital (Securities at Cost)	$	582.0		$	557.0		$	581.2		$	602.4		$	610.9
Net Income return on average capital		3.1	%		(1.6	)%		(0.2	)%		5.0	%		14.5	%
Income from Operations return on average capital		4.3	%		(1.1	)%		0.3	%		5.7	%		7.1	%

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.

12/31/2004 PAGE 26

Investment Management

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Revenue
Investment advisory fees - External	$	44.7		$	44.2		$	49.4		$	53.2		$	58.3		$	62.7		$	66.4		$	67.4		$	56.0
Investment advisory fees - Insurance-related Assets		24.2			24.1			25.4			25.5			26.2			26.5			26.1			26.4			26.8
Other revenue and fees		22.1			22.0			29.5			29.5			36.9			33.7			31.9			26.6			32.7
Net investment income		12.7			12.1			12.1			13.2			12.5			12.2			14.6			12.7			12.3
Realized gains (losses) on investments		(1.5	)		(0.4	)		0.1			0.2			0.5			(2.3	)		1.8			(0.3	)		0.1
Sale of subsidiary																							110.3			0.5
Total Revenue		102.2			102.1			116.4			121.7			134.3			132.9			140.8			242.9			128.3
Benefits and Expenses
Underwriting, acquisition, insurance and other expenses:
Operating and administrative expenses		95.8			95.2			104.4			101.6			113.3			111.1			111.5			108.3			114.8
Restructuring charges											5.3			1.7			1.5									(0.3	)
Taxes, licenses and fees		2.4			3.0			2.8			2.4			2.1			3.9			5.5			4.6			3.1
Subtotal		98.2			98.2			107.2			109.3			117.1			116.5			117.0			112.9			117.6
Other intangibles amortization		2.0			2.0			2.0			2.0			2.0			2.0			2.0			2.0			3.8
Total underwriting, acquisition, insurance and other expenses		100.2			100.2			109.2			111.3			119.1			118.5			119.0			114.8			121.4
Total Benefits and Expenses		100.2			100.2			109.2			111.3			119.1			118.5			119.0			114.8			121.4
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		2.0			1.9			7.2			10.3			15.2			14.4			21.8			128.1			7.0
Federal income taxes		0.9			0.8			2.6			4.0			(3.0	)		4.3			7.3			70.0			1.1
Income Before Cumulative Effect of Accounting Change		1.1			1.0			4.6			6.3			18.2			10.0			14.5			58.1			5.8
Cumulative effect of accounting change
Net Income	$	1.1		$	1.0		$	4.6		$	6.3		$	18.2		$	10.0		$	14.5		$	58.1		$	5.8
Less:
Realized gains (losses) on investments		(0.9	)		(0.3	)					0.1			0.3			(1.5	)		1.2			(0.2	)		0.1
Gain on sale of subsidiary																							45.8			0.3
Restructuring charges											(3.5	)		(1.1	)		(1.0	)								0.2
Income from Operations	$	2.1		$	1.3		$	4.5		$	9.7		$	19.0		$	12.5		$	13.4		$	12.5		$	5.2
Net Income-before
Intangible Amortization	$	2.4		$	2.4		$	5.8		$	7.6		$	19.5		$	11.3		$	15.8		$	59.3		$	7.4
Income from Operations-before
Intangible Amortization	$	3.4		$	2.6		$	5.8		$	11.0		$	20.3		$	13.8		$	14.6		$	13.8		$	6.8
Revenue	$	102.2		$	102.1		$	116.4		$	121.7		$	134.3		$	132.9		$	140.8		$	242.9		$	128.3
Less:
Realized gains (losses) on investments		(1.5	)		(0.4	)		0.1			0.2			0.5			(2.3	)		1.8			(0.3	)		0.1
Sale of Subsidiary																							110.3			0.5
Operating Revenue	$	103.6		$	102.5		$	116.3		$	121.4		$	133.8		$	135.2		$	139.0		$	133.0		$	127.7
Average Capital (Securities at Cost)	$	588.8		$	597.7		$	588.6		$	600.4		$	623.0		$	634.2		$	634.8		$	627.2		$	547.3
Net Income return on average capital		0.8	%		0.7	%		3.1	%		4.2	%		11.7	%		6.3	%		9.1	%		37.0	%		4.3	%
Income from operations return on average capital		1.4	%		0.9	%		3.1	%		6.4	%		12.2	%		7.9	%		8.4	%		8.0	%		3.8	%

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.

12/31/2004 PAGE 27

Investment Management

Assets Under Management Rollforward

Unaudited [Billions of Dollars]

	2000			2001			2002			2003			2004
Retail Fixed - Bal Beg-of-Period	$	7.422		$	6.605		$	7.118		$	7.631		$	8.186
Fund Sales		0.769			0.876			1.218			1.792			1.882
Redemptions		(1.401	)		(1.051	)		(1.182	)		(1.442	)		(1.520	)
Net Money Market		(0.207	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)
Transfers		(0.168	)		0.405			0.206			(0.168	)		(0.212	)
Net Flows		(1.007	)		0.184			0.192			0.154			0.037
Market		0.096			0.330			0.321			0.401			0.290
Transfer of Assets Under Administration(1)		0.094												(0.256	)
Balance End-of-Period	$	6.605		$	7.118		$	7.631		$	8.186		$	8.257
Retail Equity - Bal Beg-of-Period	$	23.384		$	21.525		$	17.990		$	14.917		$	20.887
Fund Sales		4.117			2.817			4.477			3.791			7.110
Redemptions		(4.431	)		(2.838	)		(3.690	)		(2.830	)		(4.054	)
Transfers		(0.178	)		(0.538	)		(0.173	)		0.156			0.042
Net Flows		(0.492	)		(0.560	)		0.614			1.117			3.099
Market		(1.709	)		(2.975	)		(3.688	)		4.854			3.256
Sale of subsidiary/Transfer of Assets Under Administration (1) (2)		0.342												(1.112	)
Balance at End-of-Period	$	21.525		$	17.990		$	14.917		$	20.887		$	26.130
Total Retail - Bal Beg-of-Period	$	30.807		$	28.129		$	25.108		$	22.547		$	29.073
Retail Sales-Annuities		1.782			1.701			2.751			2.151			2.757
Retail Sales-Mutual Funds		2.577			1.523			1.829			2.315			3.235
Retail Sales-Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999
Total Retail Sales		4.885			3.693			5.695			5.583			8.992
Redemptions		(5.832	)		(3.889	)		(4.873	)		(4.272	)		(5.574	)
Net Money Market		(0.206	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)
Transfers		(0.346	)		(0.133	)		0.033			(0.012	)		(0.170	)
Net Flows		(1.500	)		(0.375	)		0.806			1.271			3.136
Market		(1.613	)		(2.646	)		(3.366	)		5.255			3.546
Sale of subsidiary/Transfer of Assets Under Administration (1) (2)		0.435												(1.368	)
Balance at End-of-Period(1) (2)	$	28.129		$	25.108		$	22.547		$	29.073		$	34.387
Institutional Fixed - Bal Beg-of-Period	$	6.936		$	6.111		$	5.489		$	7.237		$	8.399
Inflows		0.771			0.643			2.281			1.937			5.134
Withdrawals/Terminations		(1.973	)		(1.229	)		(1.146	)		(1.226	)		(0.593	)
Transfers		(0.005	)		0.017			0.004			0.005			0.009
Net Flows (2)		(1.207	)		(0.569	)		1.139			0.716			4.549
Market		0.382			(0.053	)		0.608			0.447			0.135
Sale of Subsidiary (2)														(3.124	)
Balance at End-of-Period (2)	$	6.111		$	5.489		$	7.237		$	8.399		$	9.960
Institutional Equity - Bal Beg-of-Period	$	23.632		$	19.114		$	17.815		$	16.711		$	25.322
Inflows		2.730			3.183			2.913			3.922			6.155
Withdrawals/Terminations		(7.209	)		(2.879	)		(1.991	)		(2.178	)		(3.583	)
Transfers		(0.008	)		0.035			0.045			0.018			0.057
Net Flows		(4.486	)		0.338			0.967			1.762			2.629
Market		(0.031	)		(1.637	)		(2.071	)		6.849			2.394
Sale of Subsidiary (2)														(18.664	)
Balance at End-of-Period	$	19.114		$	17.815		$	16.711		$	25.322		$	11.682
Total Institutional - Bal Beg-of-Period	$	30.568		$	25.225		$	23.305		$	23.948		$	33.722
Inflows		3.501			3.826			5.194			5.859			11.289
Withdrawals/Terminations		(9.182	)		(4.109	)		(3.137	)		(3.404	)		(4.176	)
Transfers		(0.013	)		0.052			0.050			0.023			0.066
Net Flows		(5.693	)		(0.231	)		2.106			2.478			7.178
Market		0.351			(1.690	)		(1.463	)		7.296			2.530
Sale of Subsidiary (2)														(21.787	)
Balance at End-of-Period	$	25.225		$	23.305		$	23.948		$	33.722		$	21.643
Total Retail/Institutional - At End-of-Period	$	53.355		$	48.412		$	46.495		$	62.794		$	56.029
Insurance-related Assets - At End-of-Period	$	35.686		$	38.119		$	41.104		$	43.024		$	43.980
Total Retail/Inst - Net Flows	$	(7.193	)	$	(0.606	)	$	2.912		$	3.749		$	10.314
Total Assets Under Management At End-of-Period	$	89.041		$	86.531		$	87.599		$	105.818		$	100.009
Subadvised Assets, included in Assets Under Management above
Retail	$	4.250		$	3.330		$	2.460		$	3.750		$	10.740
Institutional		0.030			0.030			0.020			0.030			3.740
Total Subadvised Assets	$	4.280		$	3.360		$	2.480		$	3.780		$	14.480

(1) Retail assets under management include assets under administration related to the mutual fund based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively. Assets under administration were $0.004 billion at December 31, 2004.

(2) In the third quarter of 2004, the Investment Management segment sold its London-based international investment unit. Assets under management transferred as a result of the sale were $22.1 billion. See page 27A for assets under management without the London-based international investment unit. In addition, the London-based international investment unit is subadvising certain retail and institutional assets beginning in the third quarter of 2004.

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 OF 2

12/31/2004 PAGE 27A

Investment Management (excluding Assets

Managed by Delaware’s London-based International Investment Unit)

Assets Under Management Rollforward

Unaudited [Billions of Dollars]

	2000			2001			2002			2003			2004
Retail Fixed - Bal Beg-of-Period	$	7.422		$	6.605		$	7.118		$	7.631		$	8.186
Fund Sales		0.769			0.876			1.218			1.792			1.882
Redemptions		(1.401	)		(1.051	)		(1.182	)		(1.442	)		(1.520	)
Net Money Market		(0.207	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)
Transfers		(0.168	)		0.405			0.206			(0.168	)		(0.212	)
Net Flows		(1.007	)		0.184			0.192			0.154			0.037
Market		0.096			0.330			0.321			0.401			0.290
Transfer of Assets Under Administration (1)		0.094												(0.256	)
Balance End-of-Period	$	6.605		$	7.118		$	7.631		$	8.186		$	8.257
Retail Equity - Bal Beg-of-Period	$	23.384		$	21.525		$	17.990		$	14.624		$	20.564
Fund Sales		4.117			2.817			4.182			3.780			7.105
Redemptions		(4.431	)		(2.838	)		(3.684	)		(2.765	)		(4.024	)
Transfers		(0.178	)		(0.538	)		(0.173	)		0.156			0.042
Net Flows		(0.492	)		(0.560	)		0.325			1.171			3.123
Market		(1.709	)		(2.975	)		(3.691	)		4.769			3.236
Transfer of Assets Under Administration (1)		0.342												(0.793	)
Balance at End-of-Period	$	21.525		$	17.990		$	14.624		$	20.564		$	26.130
Total Retail - Bal Beg-of-Period	$	30.807		$	28.129		$	25.108		$	22.255		$	28.750
Retail Sales-Annuities		1.782			1.701			2.456			2.140			2.752
Retail Sales-Mutual Funds		2.577			1.523			1.829			2.315			3.235
Retail Sales-Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999
Total Retail Sales		4.885			3.693			5.399			5.572			8.987
Redemptions		(5.832	)		(3.889	)		(4.867	)		(4.207	)		(5.544	)
Net Money Market		(0.206	)		(0.046	)		(0.050	)		(0.028	)		(0.113	)
Transfers		(0.346	)		(0.133	)		0.033			(0.012	)		(0.170	)
Net Flows		(1.500	)		(0.375	)		0.517			1.325			3.160
Market		(1.613	)		(2.646	)		(3.370	)		5.171			3.526
Transfer of Assets Under Administration (1)		0.435												(1.049	)
Balance at End-of-Period	$	28.129		$	25.108		$	22.255		$	28.750		$	34.387
Institutional Fixed - Bal Beg-of-Period	$	4.013		$	3.590		$	3.377		$	5.147		$	5.981
Inflows		0.455			0.388			2.177			1.540			4.356
Withdrawals/Terminations		(1.248	)		(0.586	)		(0.541	)		(0.635	)		(0.452	)
Transfers		(0.005	)		0.017			0.004			(0.126	)		0.009
Net Flows		(0.798	)		(0.181	)		1.640			0.779			3.913
Market		0.375			(0.032	)		0.130			0.055			0.066
Balance at End-of-Period	$	3.590		$	3.377		$	5.147		$	5.981		$	9.960
Institutional Equity - Bal Beg-of-Period	$	13.909		$	9.664		$	8.186		$	7.201		$	10.318
Inflows		1.469			1.555			1.532			1.780			2.281
Withdrawals/Terminations		(5.784	)		(2.334	)		(1.333	)		(1.161	)		(2.428	)
Transfers		(0.008	)		0.035			0.045			0.034			0.118
Net Flows		(4.323	)		(0.744	)		0.245			0.653			(0.029	)
Market		0.078			(0.735	)		(1.229	)		2.463			1.393
Balance at End-of-Period	$	9.664		$	8.185		$	7.201		$	10.318		$	11.682
Total Institutional - Bal Beg-of-Period	$	17.923		$	13.255		$	11.563		$	12.348		$	16.299
Inflows		1.924			1.943			3.709			3.320			6.637
Withdrawals/Terminations		(7.032	)		(2.920	)		(1.874	)		(1.796	)		(2.880	)
Transfers		(0.013	)		0.052			0.050			(0.092	)		0.127
Net Flows		(5.120	)		(0.925	)		1.885			1.433			3.884
Market		0.453			(0.767	)		(1.099	)		2.518			1.459
Balance at End-of-Period	$	13.255		$	11.562		$	12.348		$	16.299		$	21.643
Total Retail/Institutional - At End-of-Period	$	41.384		$	36.670		$	34.603		$	45.049		$	56.029
Insurance-related Assets - At End-of-Period	$	35.686		$	38.119		$	41.104		$	43.024		$	43.980
Total Retail/Inst - Net Flows	$	(6.620	)	$	(1.301	)	$	2.402		$	2.757		$	7.045
Total Assets Under Management At End-of-Period	$	77.070		$	74.789		$	75.707		$	88.072		$	100.009
Subadvised Assets, included in Assets Under Management above
Retail	$	4.250		$	3.330		$	2.460		$	3.750		$	10.740
Institutional		0.030			0.030			0.020			0.030			3.740
Total Subadvised Assets	$	4.280		$	3.360		$	2.480		$	3.780		$	14.480

(1) Retail assets under management include assets under administration related to the mutual fund based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively. Assets under administration were $0.004 billion at December 31, 2004.

(2) This page presents the assets under management roll-forward without the Investment Management segment’s London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

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 OF 2

12/31/2004 PAGE 28

Investment Management

Assets Under Management Roll Forward

Unaudited [Billions of Dollars]

	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Retail Fixed - Bal-Beg-of-Qtr	$	7.118		$	7.086		$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060
Fund Sales		0.292			0.272			0.325			0.328			0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493
Redemptions		(0.289	)		(0.306	)		(0.277	)		(0.311	)		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)
Net Money Market		(0.003	)		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)
Transfers		(0.041	)		0.021			0.134			0.092			0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)
Net Flows		(0.041	)		(0.015	)		0.174			0.074			0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134
Market		0.009			0.096			0.174			0.043			0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125
Transfer of Assets Under Administration(1)																																(0.194	)		(0.062	)
Balance at End-of-Qtr	$	7.086		$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257
Retail Equity - Bal-Beg-of-Qtr	$	17.990		$	18.255		$	16.613		$	13.705		$	14.917		$	14.286		$	16.906		$	17.961		$	20.887		$	22.546		$	23.223		$	22.620
Fund Sales		0.908			1.084			1.140			1.345			0.717			0.813			1.051			1.210			1.938			1.666			1.480			2.026
Redemptions		(0.791	)		(0.881	)		(1.137	)		(0.881	)		(0.803	)		(0.612	)		(0.706	)		(0.710	)		(0.992	)		(1.028	)		(1.081	)		(0.953	)
Transfers		0.014			(0.022	)		(0.128	)		(0.036	)		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)
Net Flows		0.130			0.182			(0.126	)		0.428			(0.145	)		0.213			0.457			0.592			0.944			0.634			0.485			1.036
Market		0.134			(1.824	)		(2.782	)		0.784			(0.486	)		2.408			0.598			2.334			0.715			0.044			(0.188	)		2.685
Sale of Subsidiary/Transfer of Assets Under Administration (1) (2)																																(0.901	)		(0.211	)
Balance at End-of-Qtr	$	18.255		$	16.613		$	13.705		$	14.917		$	14.286		$	16.906		$	17.961		$	20.887		$	22.546		$	23.223		$	22.620		$	26.130
Total Retail - Bal-Beg-of-Qtr	$	25.108		$	25.340		$	23.779		$	21.219		$	22.547		$	22.193		$	25.096		$	26.044		$	29.073		$	30.859		$	31.375		$	30.680
Retail Sales-Annuities		0.589			0.601			0.756			0.806			0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737
Retail Sales-Mutual Funds		0.452			0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922
Retail Sales-Managed Acct. & Other		0.159			0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860
Total Retail Sales		1.200			1.356			1.465			1.673			1.141			1.282			1.494			1.666			2.451			2.117			1.905			2.519
Redemptions		(1.081	)		(1.186	)		(1.414	)		(1.192	)		(1.130	)		(0.930	)		(1.141	)		(1.071	)		(1.409	)		(1.491	)		(1.422	)		(1.252	)
Net Money Market		(0.003	)		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)
Transfers		(0.027	)		(0.001	)		0.006			0.056			0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)
Net Flows		0.089			0.167			0.048			0.502			0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170
Market		0.143			(1.728	)		(2.608	)		0.826			(0.369	)		2.601			0.578			2.444			0.818			(0.101	)		0.019			2.810
Sale of Subsidiary/Transfer of Assets Under Administration (1) (2)																																(1.095	)		(0.273	)
Balance at End-of-Qtr	$	25.340		$	23.779		$	21.219		$	22.547		$	22.193		$	25.096		$	26.044		$	29.073		$	30.859		$	31.375		$	30.680		$	34.387
Institutional Fixed - Bal-Beg-of-Qtr	$	5.489		$	6.018		$	6.844		$	7.207		$	7.237		$	7.605		$	7.753		$	8.077		$	8.399		$	9.028		$	9.906		$	7.906
Inflows		0.804			0.663			0.530			0.283			0.592			0.126			0.556			0.663			0.806			1.281			0.947			2.100
Withdrawals/Terminations		(0.239	)		(0.161	)		(0.308	)		(0.438	)		(0.308	)		(0.188	)		(0.226	)		(0.503	)		(0.218	)		(0.135	)		(0.163	)		(0.077	)
Transfers		(0.001	)		0.000			0.007			(0.002	)		0.002			0.003			(0.000	)		(0.000	)		0.005			0.002			0.001			0.001
Net Flows		0.565			0.503			0.229			(0.157	)		0.286			(0.059	)		0.330			0.160			0.593			1.148			0.784			2.024
Market		(0.036	)		0.323			0.134			0.187			0.083			0.207			(0.006	)		0.163			0.036			(0.271	)		0.339			0.031
Sale of Subsidiary (2)																																(3.124	)
Balance at End-of-Qtr	$	6.018		$	6.844		$	7.207		$	7.237		$	7.605		$	7.753		$	8.077		$	8.399		$	9.028		$	9.906		$	7.906		$	9.960
Institutional Equity - Bal-Beg-of-Qtr	$	17.815		$	18.644		$	18.120		$	14.937		$	16.711		$	15.920		$	19.607		$	21.008		$	25.322		$	27.188		$	28.362		$	10.490
Inflows		0.672			0.569			0.631			1.040			0.494			0.727			1.386			1.315			1.817			2.049			1.638			0.650
Withdrawals/Terminations		(0.512	)		(0.635	)		(0.523	)		(0.322	)		(0.459	)		(0.381	)		(0.921	)		(0.419	)		(0.762	)		(1.161	)		(1.053	)		(0.607	)
Transfers		0.006			0.018			0.011			0.010			0.008			0.002			0.003			0.005			0.012			0.006			0.010			0.029
Net Flows		0.167			(0.047	)		0.119			0.728			0.044			0.348			0.469			0.901			1.068			0.895			0.595			0.072
Market		0.661			(0.476	)		(3.302	)		1.046			(0.835	)		3.339			0.932			3.413			0.798			0.280			0.196			1.120
Sale of Subsidiary (2)																																(18.664	)
Balance at End-of-Qtr	$	18.644		$	18.120		$	14.937		$	16.711		$	15.920		$	19.607		$	21.008		$	25.322		$	27.188		$	28.362		$	10.490		$	11.682
Total Institutional - Bal-Beg-of-Qtr	$	23.305		$	24.661		$	24.963		$	22.143		$	23.948		$	23.526		$	27.360		$	29.085		$	33.722		$	36.216		$	38.268		$	18.396
Inflows		1.476			1.232			1.162			1.323			1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750
Withdrawals/Terminations		(0.751	)		(0.796	)		(0.831	)		(0.760	)		(0.767	)		(0.568	)		(1.147	)		(0.922	)		(0.980	)		(1.296	)		(1.216	)		(0.684	)
Transfers		0.006			0.019			0.017			0.008			0.010			0.005			0.003			0.005			0.017			0.008			0.011			0.030
Net Flows		0.731			0.455			0.348			0.572			0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095
Market		0.625			(0.153	)		(3.168	)		1.233			(0.752	)		3.546			0.926			3.576			0.834			0.009			0.535			1.151
Sale of Subsidiary (2)																																(21.787	)
Balance at End-of-Qtr	$	24.661		$	24.963		$	22.143		$	23.948		$	23.526		$	27.360		$	29.085		$	33.722		$	36.216		$	38.268		$	18.396		$	21.643
Total Retail/Inst - At End-of-Qtr	$	50.002		$	48.742		$	43.362		$	46.495		$	45.718		$	52.456		$	55.129		$	62.794		$	67.075		$	69.643		$	49.076		$	56.029
Insurance-related Assets-End-of-Qtr	$	37.171		$	38.476		$	40.416		$	41.104		$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980
Total Retail/Inst - Net Flows	$	0.821		$	0.622		$	0.396		$	1.074		$	0.344		$	0.591		$	1.169		$	1.645		$	2.629		$	2.660		$	1.760		$	3.265
Total Assets Under Management At End-of-Qtr	$	87.172		$	87.218		$	83.778		$	87.599		$	87.848		$	96.313		$	98.113		$	105.818		$	111.081		$	112.172		$	93.123		$	100.009
Subadvised Assets, included in Assets Under Management above
Retail	$	2.570		$	2.480		$	2.280		$	2.460		$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740
Institutional		0.030			0.030			0.020			0.020			0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740
Total Subadvised Assets	$	2.600		$	2.510		$	2.300		$	2.480		$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480

(1) Retail assets under management include assets under administration related to the mutual fund based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively. Assets under administration were $0.004 billion at December 31, 2004.

(2) In the third quarter of 2004, the Investment Management segment sold its London-based international investment unit. Assets under management transferred as a result of the sale were $22.1 billion. See page 28A for assets under management without the London-based international investment unit. In addition, the London-based international investment unit is subadvising certain retail and institutional assets beginning in the third quarter of 2004.

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 OF 2

12/31/2004 PAGE 28A

Investment Management (excluding Assets

Managed by Delaware’s London-based International Investment Unit)

Assets Under Management Roll Forward

Unaudited [Billions of Dollars]

	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Retail Fixed - Bal-Beg-of-Qtr	$	7.118		$	7.086		$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060
Fund Sales		0.292			0.272			0.325			0.328			0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493
Redemptions		(0.289	)		(0.306	)		(0.277	)		(0.311	)		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)
Net Money Market		(0.003	)		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)
Transfers		(0.041	)		0.021			0.134			0.092			0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)
Net Flows		(0.041	)		(0.015	)		0.174			0.074			0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134
Market		0.009			0.096			0.174			0.043			0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125
Transfer of Assets Under Administration (1)																																(0.194	)		(0.062	)
Balance at End-of-Qtr	$	7.086		$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257
Retail Equity - Bal-Beg-of-Qtr	$	17.990		$	18.255		$	16.613		$	13.705		$	14.624		$	14.048		$	16.622		$	17.673		$	20.564		$	22.225		$	22.906		$	22.620
Fund Sales		0.908			1.084			1.140			1.050			0.712			0.812			1.048			1.208			1.936			1.664			1.478			2.026
Redemptions		(0.791	)		(0.881	)		(1.137	)		(0.875	)		(0.765	)		(0.608	)		(0.698	)		(0.694	)		(0.979	)		(1.019	)		(1.074	)		(0.953	)
Transfers		0.014			(0.022	)		(0.128	)		(0.036	)		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)
Net Flows		0.130			0.182			(0.126	)		0.139			(0.111	)		0.214			0.462			0.606			0.956			0.641			0.490			1.036
Market		0.134			(1.824	)		(2.782	)		0.780			(0.465	)		2.359			0.589			2.285			0.706			0.039			(0.194	)		2.685
Transfer of Assets Under Administration (1)																																(0.582	)		(0.211	)
Balance at End-of-Qtr	$	18.255		$	16.613		$	13.705		$	14.624		$	14.048		$	16.622		$	17.673		$	20.564		$	22.225		$	22.906		$	22.620		$	26.130
Total Retail - Bal-Beg-of-Qtr	$	25.108		$	25.340		$	23.779		$	21.219		$	22.255		$	21.955		$	24.812		$	25.756		$	28.750		$	30.538		$	31.057		$	30.680
Retail Sales-Annuities		0.589			0.601			0.756			0.510			0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737
Retail Sales-Mutual Funds		0.452			0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922
Retail Sales-Managed Acct. & Other		0.159			0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860
Total Retail Sales		1.200			1.356			1.465			1.378			1.136			1.280			1.491			1.664			2.449			2.115			1.903			2.519
Redemptions		(1.081	)		(1.186	)		(1.414	)		(1.186	)		(1.092	)		(0.926	)		(1.133	)		(1.055	)		(1.396	)		(1.481	)		(1.415	)		(1.252	)
Net Money Market		(0.003	)		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)
Transfers		(0.027	)		(0.001	)		0.006			0.056			0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)
Net Flows		0.089			0.167			0.048			0.213			0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170
Market		0.143			(1.728	)		(2.608	)		0.823			(0.347	)		2.552			0.569			2.396			0.808			(0.105	)		0.013			2.810
Transfer of Assets Under Administration (1)																																(0.776	)		(0.273	)
Balance at End-of-Qtr	$	25.340		$	23.779		$	21.219		$	22.255		$	21.955		$	24.812		$	25.756		$	28.750		$	30.538		$	31.057		$	30.680		$	34.387
Institutional Fixed - Bal-Beg-of-Qtr	$	3.377		$	4.062		$	4.653		$	5.010		$	5.147		$	5.530		$	5.481		$	5.834		$	5.981		$	6.501		$	6.980		$	7.906
Inflows		0.798			0.635			0.493			0.251			0.553			0.120			0.516			0.351			0.655			0.776			0.825			2.100
Withdrawals/Terminations		(0.082	)		(0.102	)		(0.196	)		(0.162	)		(0.158	)		(0.152	)		(0.089	)		(0.236	)		(0.138	)		(0.109	)		(0.127	)		(0.077	)
Transfers		(0.001	)		0.000			0.007			(0.002	)		0.002			(0.099	)		(0.056	)		0.028			0.005			0.002			0.001			0.001
Net Flows		0.715			0.534			0.304			0.087			0.397			(0.132	)		0.371			0.143			0.521			0.669			0.699			2.024
Market		(0.030	)		0.057			0.054			0.050			(0.013	)		0.083			(0.019	)		0.004			(0.001	)		(0.191	)		0.227			0.031
Balance at End-of-Qtr	$	4.062		$	4.653		$	5.010		$	5.147		$	5.530		$	5.481		$	5.834		$	5.981		$	6.501		$	6.980		$	7.906		$	9.960
Institutional Equity - Bal-Beg-of-Qtr	$	8.186		$	8.299		$	7.419		$	6.116		$	7.201		$	7.041		$	8.462		$	8.826		$	10.318		$	10.713		$	10.435		$	10.490
Inflows		0.189			0.228			0.373			0.743			0.339			0.347			0.571			0.524			0.552			0.596			0.484			0.650
Withdrawals/Terminations		(0.363	)		(0.453	)		(0.351	)		(0.167	)		(0.182	)		(0.232	)		(0.516	)		(0.231	)		(0.501	)		(0.959	)		(0.361	)		(0.607	)
Transfers		0.006			0.018			0.011			0.010			0.008			0.002			0.003			0.021			(0.012	)		0.073			0.029			0.029
Net Flows		(0.168	)		(0.206	)		0.033			0.586			0.165			0.116			0.059			0.314			0.038			(0.290	)		0.152			0.072
Market		0.281			(0.674	)		(1.336	)		0.499			(0.326	)		1.305			0.305			1.178			0.357			0.012			(0.096	)		1.120
Balance at End-of-Qtr	$	8.299		$	7.419		$	6.116		$	7.201		$	7.041		$	8.462		$	8.826		$	10.318		$	10.713		$	10.435		$	10.490		$	11.682
Total Institutional - Bal-Beg-of-Qtr	$	11.562		$	12.361		$	12.072		$	11.126		$	12.348		$	12.571		$	13.943		$	14.660		$	16.299		$	17.215		$	17.414		$	18.396
Inflows		0.986			0.863			0.866			0.994			0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750
Withdrawals/Terminations		(0.445	)		(0.554	)		(0.547	)		(0.328	)		(0.340	)		(0.385	)		(0.604	)		(0.466	)		(0.640	)		(1.068	)		(0.488	)		(0.684	)
Transfers		0.006			0.019			0.017			0.008			0.010			(0.098	)		(0.053	)		0.049			(0.007	)		0.075			0.030			0.030
Net Flows		0.547			0.328			0.337			0.673			0.562			(0.016	)		0.430			0.457			0.560			0.379			0.851			2.095
Market		0.251			(0.617	)		(1.282	)		0.548			(0.339	)		1.388			0.287			1.182			0.356			(0.179	)		0.131			1.151
Balance at End-of-Qtr	$	12.361		$	12.072		$	11.126		$	12.348		$	12.571		$	13.943		$	14.660		$	16.299		$	17.215		$	17.414		$	18.396		$	21.643
Total Retail/Inst - At End-of-Qtr	$	37.701		$	35.851		$	32.345		$	34.602		$	34.527		$	38.755		$	40.416		$	45.049		$	47.753		$	48.471		$	49.076		$	56.029
Insurance-related Assets-End-of-Qtr	$	37.171		$	38.476		$	40.416		$	41.104		$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980
Total Retail/Inst - Net Flows	$	0.637		$	0.494		$	0.385		$	0.886		$	0.610		$	0.288		$	0.805		$	1.055		$	1.540		$	1.003		$	1.236		$	3.265
Total Assets Under Management At End-of-Qtr	$	74.872		$	74.327		$	72.761		$	75.706		$	76.656		$	82.612		$	83.400		$	88.072		$	91.759		$	91.000		$	93.123		$	100.009
Subadvised Assets, included in Assets Under Management above
Retail	$	2.570		$	2.480		$	2.280		$	2.460		$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740
Institutional		0.030			0.030			0.020			0.020			0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740
Total Subadvised Assets	$	2.600		$	2.510		$	2.300		$	2.480		$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480

(1) Retail assets under management include assets under administration related to the mutual fund based 401(k) business. In the third quarter of 2004, this business was outsourced to Bisys. As a result, the third and fourth quarter of 2004 had net outflows of assets under administration of approximately $0.776 billion and $0.273 billion, respectively. Assets under administration were $0.004 billion at December 31, 2004.

(2) This page presents the assets under management roll-forward without the Investment Management segment’s London-based international investment unit, which was sold in the third quarter of 2004 and resulted in the transfer of assets under management of $22.1 billion.

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 OF 2

12/31/2004 PAGE 29

Lincoln UK

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	2000			2001			2002			2003			2004
Revenue
Premiums		148.4			46.1			50.6			62.2			70.3
Mortality assessments		31.4			33.9			32.4			35.7			39.5
Expense assessments		178.1			134.8			105.3			93.9			103.9
Other revenue and fees		2.6			(1.4	)		24.9			18.6			52.8
Net investment income		70.3			64.8			62.1			64.1			75.7
Realized gains (losses) on investments		3.2			12.4			1.9			(1.1	)		0.2
Gain on sale of subsidiaries/ businesses														10.1
Total Revenue		433.8			290.7			277.2			273.5			352.5
Benefits and Expenses
Benefits paid or provided:
Benefits		178.5			83.4			84.2			98.6			100.4
Underwriting, acquisition, insurance and other expenses:
Commissions		37.7			10.8			6.1			3.8			2.9
Operating and administrative expenses		142.5			82.5			77.0			78.3			81.0
Restructuring charges		99.4						(1.7	)
Subtotal		279.5			93.2			81.4			82.1			83.9
Deferral of acquisition costs								(3.4	)		(3.5	)		(6.3	)
DAC amortization								50.0			42.5			79.1
DAC deferral net of amortization		(7.2	)		31.7			46.5			39.1			72.8
PVIF amortization		4.7			22.5			30.8			(10.7	)		18.1
Total underwriting, acquisition, insurance and other expenses		277.0			147.4			158.7			110.4			174.8
Goodwill amortization		4.0			0.6
Total Benefits and Expenses		459.6			231.5			242.9			209.0			275.2
Federal income taxes		(10.6	)		(7.6	)		(3.4	)		21.6			27.2
Net Income	$	(15.1	)	$	66.8		$	37.7		$	42.9		$	50.1
Less:
Realized gains (losses) on investments		2.3			8.7			1.3			(0.7	)
Gain on sale of subsidiaries/ businesses														6.6
Restructuring charges		(76.5	)					1.7
Income from Operations	$	59.2		$	58.1		$	34.6		$	43.6		$	43.5
Effective tax rate on Income from Operations		15.9	%		(24.2	)%		(12.8	)%		33.4	%		35.0	%
Revenue	$	433.8		$	290.7		$	277.2		$	273.5		$	352.5
Less:
Realized gains (losses) on investments		3.2			12.4			1.9			(1.1	)		0.2
Gain on sale of subsidiaries/ businesses														10.1
Operating Revenue	$	430.6		$	278.2		$	275.4		$	274.5		$	342.2
Average capital	$	494.0		$	593.8		$	549.9		$	478.9		$	435.4
Net Income return on average capital		(3.1	)%		11.3	%		6.9	%		9.0	%		11.5	%
Income from operations return on average capital		12.0	%		9.8	%		6.3	%		9.1	%		10.0	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year							$	587.3		$	597.6		$	620.6
Deferral								3.4			3.5			6.3
Amortization								(50.0	)		(42.5	)		(79.1	)
Included in Total Benefits and Expenses								(46.5	)		(39.1	)		(72.8	)
Foreign currency translation adjustment								56.8			62.0			42.9
Balance at end-of-year							$	597.6		$	620.6		$	590.8
Roll Forward of Present Value of In-Force
Balance at beginning-of-year							$	244.0		$	237.3		$	274.7
Amortization								(30.8	)		10.7			(18.1	)
Foreign currency translation adjustment								24.1			26.7			19.6
Balance at end-of-year							$	237.3		$	274.7		$	276.2

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.

12/31/2004 PAGE 30

Lincoln UK

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Revenue
Premiums	$	14.2		$	12.7		$	13.8		$	16.5		$	19.3		$	18.1		$	19.6		$	17.7		$	14.9
Mortality assessments		8.9			9.1			9.2			8.7			8.7			9.6			10.4			9.7			9.8
Expense assessments		22.8			21.6			24.5			23.2			24.6			24.2			24.4			27.0			28.3
Other revenue and fees		(11.9	)		10.3			(3.9	)		2.6			9.6			5.8			8.3			22.8			16.0
Net investment income		16.6			15.2			16.7			16.0			16.2			18.5			18.3			18.7			20.2
Realized gains (losses) on investments		1.2									0.3			(1.3	)		(0.4	)		(0.1	)		(0.1	)		0.7
Gain on sale of subsidiaries/ businesses																				10.1
Total Revenue		51.8			68.9			60.2			67.3			77.1			75.8			91.0			95.7			90.0
Benefits and Expenses
Benefits paid or provided:
Benefits		23.1			18.2			24.3			22.7			33.3			29.0			28.8			21.4			21.3
Underwriting, acquisition, insurance and other expenses:
Commissions		1.3			1.1			0.8			1.0			0.8			0.6			0.6			0.7			1.0
Operating and administrative expenses		20.6			18.3			20.5			19.6			20.0			23.0			22.3			21.6			14.1
Restructuring charges		(1.7	)
Subtotal		20.2			19.4			21.3			20.6			20.8			23.5			22.9			22.4			15.1
Deferral of acquisition costs		(0.6	)		(0.8	)		(0.8	)		(0.2	)		(1.6	)		(1.5	)		(1.8	)		(1.4	)		(1.6	)
DAC amortization		(11.5	)		18.6			2.0			7.3			14.7			12.5			14.4			28.6			23.5
DAC deferral net of amortization		(12.1	)		17.7			1.2			7.1			13.1			11.0			12.6			27.2			21.9
PVIF amortization		5.5			3.0			(5.7	)		(0.7	)		(7.3	)		3.0			0.1			9.4			5.6
Total underwriting, acquisition, insurance and other expenses		13.6			40.1			16.8			27.0			26.6			37.6			35.7			59.0			42.5
Total Benefits and Expenses		36.7			58.3			41.1			49.6			59.9			66.6			64.5			80.3			63.8
Federal income taxes		(2.8	)		3.8			6.6			6.1			5.1			3.2			9.3			5.5			9.1
Net Income	$	17.9		$	6.8		$	12.4		$	11.5		$	12.2		$	5.9		$	17.2		$	9.9		$	17.1
Less:
Realized gains (losses) on investments		0.8									0.2			(0.9	)		(0.3	)					(0.2	)		0.5
Gain on sale of subsidiaries/ businesses																				6.6
Restructuring charges		1.7
Income from Operations	$	15.3		$	6.8		$	12.4		$	11.3		$	13.0		$	6.2		$	10.7		$	10.1		$	16.6
Effective tax rate on Income from Operations		(26.1	)%		35.5	%		34.7	%		35.0	%		29.5	%		35.0	%		35.0	%		35.0	%		35.0	%
Revenue	$	51.8		$	68.9		$	60.2		$	67.3		$	77.1		$	75.8		$	91.0		$	95.7		$	90.0
Less:
Realized gains (losses) on investments		1.2									0.3			(1.3	)		(0.4	)		(0.1	)		(0.1	)		0.7
Gain on sale of subsidiaries/ businesses																				10.1
Operating Revenue	$	50.6		$	68.9		$	60.2		$	67.0		$	78.4		$	76.1		$	81.0		$	95.8		$	89.3
Average capital	$	544.0		$	532.6		$	487.9		$	452.2		$	443.1		$	447.9		$	421.2		$	432.5		$	439.9
Net Income return on average capital		13.2	%		5.1	%		10.2	%		10.2	%		11.0	%		5.3	%		16.4	%		9.1	%		15.5	%
Income from operations return on average capital		11.3	%		5.1	%		10.2	%		10.0	%		11.8	%		5.5	%		10.2	%		9.3	%		15.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	$	571.8		$	597.6		$	569.1		$	595.1		$	590.9		$	620.7		$	629.6		$	608.6		$	578.9
Deferral		0.6			0.8			0.8			0.2			1.6			1.5			1.8			1.4			1.6
Amortization		11.5			(18.6	)		(2.0	)		(7.3	)		(14.7	)		(12.5	)		(14.4	)		(28.6	)		(23.5	)
Included in Total Benefits and Expenses		12.1			(17.7	)		(1.2	)		(7.1	)		(13.1	)		(11.0	)		(12.6	)		(27.2	)		(21.9	)
Foreign currency translation adjustment		13.7			(10.8	)		27.2			2.8			42.8			19.9			(8.4	)		(2.5	)		33.8
Balance at end-of-year	$	597.6		$	569.1		$	595.1		$	590.9		$	620.7		$	629.6		$	608.6		$	578.9		$	590.9
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	$	236.8		$	237.4		$	230.1		$	247.0		$	249.0		$	274.7		$	280.5		$	276.7		$	266.2
Amortization		(5.5	)		(3.0	)		5.7			0.7			7.3			(3.0	)		(0.1	)		(9.4	)		(5.6	)
Foreign currency translation adjustment		6.1			(4.3	)		11.2			1.3			18.4			8.9			(3.7	)		(1.1	)		15.6
Balance at end-of-year	$	237.4		$	230.1		$	247.0		$	249.0		$	274.7		$	280.5		$	276.7		$	266.2		$	276.1

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.

12/31/2004 PAGE 31

Lincoln UK

Operational Data

Unaudited [Billions of Dollars]

For the Year Ended December 31	2000			2001			2002			2003			2004
Unit Linked Assets - Beg-of-Year	$	7.220		$	6.441		$	5.607		$	5.079		$	6.390
Deposits		0.554			0.481			0.453			0.392			0.378
Withdrawals (incl. chgs) & Deaths		(0.644	)		(0.529	)		(0.519	)		(0.614	)		(0.712	)
Net Flows		(0.090	)		(0.048	)		(0.066	)		(0.222	)		(0.335	)
Inv Inc & Chg in Mkt Val		(0.154	)		(0.617	)		(1.004	)		0.918			0.648
Foreign Currency Adjustment		(0.536	)		(0.169	)		0.542			0.616			0.482
Unit Linked Assets - End-of-Year	$	6.441		$	5.607		$	5.079		$	6.390		$	7.186
Individual Life In-force	$	24.290		$	20.878		$	18.896		$	20.393		$	20.378
Exchange Rate - Dollars to Pounds
For-the-Period		1.518			1.441			1.503			1.638			1.834
End-of-Period		1.493			1.456			1.610			1.786			1.919

For the Quarter Ended	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Unit Linked Assets
Balance-Beg-of-Quarter	$	5.607		$	5.618		$	5.520		$	4.825		$	5.079		$	4.748		$	5.468		$	5.692		$	6.390		$	6.528		$	6.476		$	6.468
Deposits		0.114			0.115			0.119			0.104			0.094			0.090			0.113			0.095			0.083			0.085			0.102			0.108
Withdrawals (incl. chgs) & Deaths		(0.127	)		(0.137	)		(0.126	)		(0.129	)		(0.153	)		(0.137	)		(0.152	)		(0.172	)		(0.172	)		(0.177	)		(0.175	)		(0.188	)
Net Flows		(0.013	)		(0.022	)		(0.006	)		(0.025	)		(0.059	)		(0.047	)		(0.039	)		(0.077	)		(0.090	)		(0.092	)		(0.074	)		(0.080	)
Inv Inc & Chg in Mkt Val		0.141			(0.479	)		(0.812	)		0.146			(0.184	)		0.549			0.205			0.348			0.020			0.127			0.091			0.411
Foreign Currency Adjustment		(0.117	)		0.403			0.123			0.133			(0.087	)		0.218			0.059			0.427			0.207			(0.087	)		(0.025	)		0.387
Unit Linked Assets - End-of-Quarter	$	5.618		$	5.520		$	4.825		$	5.079		$	4.748		$	5.468		$	5.692		$	6.390		$	6.528		$	6.476		$	6.468		$	7.186
Individual Life In-force	$	20.010		$	20.401		$	19.815		$	18.896		$	18.512		$	19.138		$	19.258		$	20.393		$	20.522		$	19.846		$	19.380		$	20.378
Exchange Rate - Dollars to Pounds
For-the-Quarter		1.423			1.464			1.555			1.570			1.605			1.618			1.615			1.714			1.836			1.814			1.813			1.875
End-of-Quarter		1.426			1.532			1.569			1.610			1.580			1.656			1.664			1.786			1.844			1.819			1.812			1.919

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.

12/31/2004 PAGE 32

Other Operations

Unaudited [Millions of Dollars]

For the Year Ended December 31													2000			2001			2002			2003			2004
Revenue													$	1,946.9		$	1,827.3		$	372.4		$	575.8		$	351.9
Less:
Realized gains (losses) on investments														(5.0	)		8.2			25.6			(7.1	)		0.5
Gains (losses) on derivatives																	(9.7	)		0.9			7.6			(0.1	)
Gain (loss) on reinsurance derivative/trading account securities																							1.9			1.0
Amortization of deferred gain-reserve development																				(0.8	)		3.6			1.3
Gain on sale of subsidiaries/ businesses																	12.8			(8.3	)					14.1
Mark-to-market adjustment on reclass. from AFS to trading account securities																							285.5
Operating Revenue													$	1,951.9		$	1,815.9		$	355.0		$	284.2		$	335.1
Operating Revenue by Source:
Lincoln Financial Advisors													$	377.5		$	360.7		$	318.0		$	316.9		$	383.6
Lincoln Financial Distributors														119.9			113.4			127.3			140.9			245.2
Total Distribution														497.4			474.0			445.4			457.8			628.8
Reinsurance														1,770.6			1,699.4
Amortization of deferred gain on indemnity reinsurance*																	20.4			75.2			72.3			87.0
Other [Including Consolidating Adjustments]														(316.0	)		(377.9	)		(165.6	)		(245.8	)		(380.7	)
Total Operating Revenue													$	1,951.9		$	1,815.9		$	355.0		$	284.2		$	335.1
Income (Loss)
Net Loss													$	(18.2	)	$	(6.6	)	$	(247.3	)	$	(113.7	)	$	(56.9	)
Less:
Restructuring charges														1.0			(19.5	)		1.1			(4.7	)		(6.4	)
Realized gains (losses) on investments														(3.2	)		5.9			16.7			(4.7	)		0.3
Gains (losses) on derivatives																	(6.3	)		0.6			5.0			(0.1	)
Net gain (loss) on reinsurance derivative/trading account securities																							1.3			0.6
Gain on sale of subsidiaries/ businesses																	15.0			(9.4	)					9.1
Reserve development/ amortization of deferred gain																				(199.1	)		(18.5	)		0.9
Mark-to-market adjustment on reclass. from AFS to trading account securities																							185.6
Cumulative effect of accounting change																	(2.7	)					(192.2	)
Loss on early retirement of subordinated debt																							(3.7	)		(4.1	)
Operating Income (Loss)													$	(16.0	)	$	1.0		$	(57.2	)	$	(81.8	)	$	(57.2	)
Income (Loss) from Operations by Source:
Lincoln Financial Advisors														(15.4	)		(20.1	)		(31.4	)		(33.2	)		(17.8	)
Lincoln Financial Distributors														(19.6	)		(33.2	)		(35.2	)		(33.4	)		(23.7	)
Total Distribution														(35.0	)		(53.3	)		(66.6	)		(66.6	)		(41.5	)
Reinsurance														122.5			128.8
Amortization of deferred gain on indemnity reinsurance*																	12.9			48.9			47.0			56.5
LNC Financing														(84.9	)		(77.9	)		(43.0	)		(56.7	)		(60.2	)
Other Corporate														(18.6	)		(9.5	)		3.5			(5.4	)		(12.0	)
Income (Loss) from Operations													$	(16.0	)	$	1.0		$	(57.2	)	$	(81.8	)	$	(57.2	)
For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Revenue	$	103.6		$	73.0		$	76.1		$	74.8		$	351.9		$	54.7		$	123.6		$	91.6		$	82.0
Less:
Realized gains (losses) on investments		1.2			0.4			(0.2	)		(7.6	)		0.3			0.3			0.8			1.2			(1.8	)
Gains (losses) on derivatives		0.3			(0.4	)		0.2			7.7			0.2			(0.2	)		0.0			(1.5	)		1.5
Gain (loss) on reinsurance derivative/trading account securities														1.9			(1.9	)		2.9			(0.8	)		0.7
Amort. of deferred gain-reserve development		0.5			(0.2	)		(0.2	)		3.7			0.3			0.3			0.3			0.3			0.3
Gain on sale of subsidiaries/ businesses		(8.3	)																	14.0						0.1
Mark-to-market adjustment on reclassification from AFS to trading account securities														285.5
Operating Revenue	$	109.8		$	73.3		$	76.3		$	70.9		$	63.7		$	56.1		$	105.5		$	92.4		$	81.1
Operating Revenue by Source:
Lincoln Financial Advisors		89.6			69.4			75.3			76.7			95.5			92.0			96.0			91.7			103.9
Lincoln Financial Distributors		36.9			35.4			29.4			32.2			43.9			57.5			58.4			59.9			69.4
Total Distribution		126.5			104.8			104.6			108.9			139.5			149.6			154.4			151.6			173.2
Reinsurance
Amortization of deferred gain on indemnity reinsurance*		6.9			18.4			18.2			18.3			17.4			17.9			17.9			32.1			19.1
Other [Including
Consolidating Adjustments]		(23.6	)		(49.9	)		(46.6	)		(56.2	)		(93.1	)		(111.3	)		(66.8	)		(91.2	)		(111.3	)
Total Operating Revenue	$	109.8		$	73.3		$	76.3		$	70.9		$	63.7		$	56.1		$	105.5		$	92.4		$	81.1
Income (Loss)
Net Income (Loss)	$	(32.6	)	$	(21.7	)	$	(21.6	)	$	(42.4	)	$	(28.1	)	$	(24.8	)	$	(10.9	)	$	(11.1	)	$	(10.1	)
Less:
Restructuring charges		0.0									(2.4	)		(2.4	)		(3.6	)		(1.9	)		(0.7	)		(0.3	)
Realized gains (losses) on investments		0.8			0.5			(0.4	)		(4.9	)		0.1			0.2			0.5			1.4			(1.7	)
Gains (losses) on derivatives		0.2			(0.5	)		0.4			5.0			0.1			(0.1	)		0.0			(1.6	)		1.5
Net gain (loss) on reinsurance derivative/trading account securities														1.3			(1.2	)		1.9			(0.5	)		0.4
Gain on sale of subsidiaries/ businesses		(9.4	)																	9.0						0.1
Reserve development/ amortization of deferred gain		(8.2	)		(0.1	)		(0.1	)		(18.5	)		0.2			0.2			0.2			0.2			0.2
Mark-to-market adjustment on reclassification from AFS to trading account securities														185.6
Cumulative effect of accounting change														(192.2	)
Loss on early retirement of subordinated debt											(3.7	)														(4.1	)
Income (Loss) from Operations	$	(15.9	)	$	(21.5	)	$	(21.5	)	$	(18.0	)	$	(20.8	)	$	(20.3	)	$	(20.7	)	$	(9.9	)	$	(6.3	)
Income from Operations by Source:
Lincoln Financial Advisors	$	(3.7	)	$	(10.4	)	$	(7.4	)	$	(7.4	)	$	(8.0	)	$	(8.7	)	$	(5.3	)	$	(3.5	)	$	(0.3	)
Lincoln Financial Distributors		(8.0	)		(8.1	)		(10.7	)		(7.5	)		(7.1	)		(4.6	)		(6.4	)		(6.3	)		(6.3	)
Total Distribution		(11.7	)		(18.4	)		(18.1	)		(15.0	)		(15.1	)		(13.3	)		(11.8	)		(9.8	)		(6.6	)
Reinsurance
Amortization of deferred gain on indemnity reinsurance*		4.5			11.9			11.9			11.9			11.3			11.6			11.7			20.8			12.4
LNC Financing		(13.5	)		(15.3	)		(14.4	)		(13.3	)		(13.7	)		(14.6	)		(15.6	)		(15.7	)		(14.3	)
Other Corporate		4.9			0.3			(0.8	)		(1.5	)		(3.4	)		(4.0	)		(5.0	)		(5.2	)		2.2
Income(Loss) from Operations	$	(15.9	)	$	(21.5	)	$	(21.5	)	$	(18.0	)	$	(20.8	)	$	(20.3	)	$	(20.7	)	$	(9.9	)	$	(6.3	)

* 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.

12/31/2004 PAGE 33

Consolidated Domestic Deposits/Account Balances

Unaudited [Billions of Dollars]

	2000			2001			2002			2003			2004
Deposits - For the Year
Lincoln Retirement - Fixed Annuities	$	2.074		$	3.342		$	3.672		$	3.125		$	3.110
Lincoln Retirement - Variable Annuities		3.165			3.067			2.743			3.119			5.910
Lincoln Retirement - Life Insurance		0.014			0.012
Life Insurance Segment - Life Insurance		1.884			1.934			2.138			2.259			2.243
Inv Mgmt - Annuities		1.782			1.701			2.751			2.151			2.757
Inv Mgmt - Mutual Funds		2.577			1.523			1.829			2.315			3.235
Inv Mgmt - Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999
Consolidating Adjustments		(0.765	)		(0.608	)		(1.576	)		(0.864	)		(0.975	)
Total Gross Retail Deposits		11.256			11.439			12.671			13.222			19.280
Investment Management Segment- Instit.		3.501			3.826			5.194			5.859			11.289
Consolidating Adjustments		(0.152	)		(0.207	)		(0.232	)		(0.150	)		(0.089	)
Total Gross Deposits	$	14.605		$	15.058		$	17.634		$	18.931		$	30.479
Account Balances - End of Year
Lincoln Retirement - Fixed Annuities	$	15.394		$	16.491		$	18.085		$	18.868		$	19.268
Lincoln Retirement - Variable Annuities		39.427			34.638			27.438			35.786			43.223
Lincoln Retirement - Life Insurance		0.160			0.149
Life Insurance Segment - Life Insurance		10.847			11.377			12.086			13.420			14.382
Inv Mgmt - Annuities		13.527			11.835			9.981			12.691			14.494
Inv Mgmt - Mutual Funds		13.260			11.554			10.296			12.614			13.251
Inv Mgmt - Managed Acct. & Other		1.342			1.719			2.270			3.768			6.642
Consolidating Adjustments		(7.757	)		(6.676	)		(5.123	)		(6.553	)		(7.476	)
Total Retail Account Balances		86.200			81.088			75.033			90.593			103.784
Investment Management Segment - Instit.		25.225			23.305			23.948			33.722			21.643
Consolidating Adjustments		(1.434	)		(1.211	)		(0.924	)		(1.183	)		(1.248	)
Total Account Balances	$	109.991		$	103.181		$	98.057		$	123.132		$	124.179

	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	$	0.906		$	0.853		$	1.091		$	0.822		$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732
Lincoln Retirement - Variable Annuities		0.808			0.787			0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655
Life Insurance Segment - Life Insurance		0.440			0.577			0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686
Inv Mgmt - Annuities		0.589			0.601			0.756			0.806			0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737
Inv Mgmt - Mutual Funds		0.452			0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922
Inv Mgmt - Managed Acct. & Other		0.159			0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860
Consolidating Adjustments		(0.280	)		(0.333	)		(0.437	)		(0.525	)		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)
Total Gross Retail Deposits		3.074			3.240			3.206			3.151			2.880			2.960			3.370			4.012			4.905			4.648			4.436			5.290
Investment Management Segment- Instit.		1.476			1.232			1.162			1.323			1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750
Consolidating Adjustments		(0.046	)		(0.069	)		(0.040	)		(0.076	)		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)
Total Gross Deposits	$	4.505		$	4.403		$	4.328		$	4.398		$	3.913		$	3.788		$	5.288		$	5.943		$	7.509		$	7.945		$	6.988		$	8.038
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	$	16.534		$	16.910		$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268
Lincoln Retirement - Variable Annuities		35.150			31.206			25.942			27.438			26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223
Lincoln Retirement - Life Insurance
Life Insurance Segment - Life Insurance		11.667			11.759			11.726			12.086			12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382
Inv Mgmt - Annuities		11.920			10.896			9.327			9.981			9.660			11.002			11.392			12.691			13.294			13.355			13.074			14.494
Inv Mgmt - Mutual Funds		11.599			11.036			10.072			10.296			10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251
Inv Mgmt - Managed Acct. & Other		1.821			1.847			1.820			2.270			2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642
Consolidating Adjustments		(6.640	)		(6.000	)		(4.940	)		(5.123	)		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)
Total Retail Account Balances		82.051			77.654			71.597			75.033			74.546			81.283			83.787			90.593			94.133			95.860			95.393			103.784
Investment Management Segment - Instit.		24.661			24.963			22.143			23.948			23.526			27.360			29.085			33.722			36.216			38.268			18.396			21.643
Consolidating Adjustments		(1.186	)		(1.045	)		(0.866	)		(0.924	)		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)
Total Account Balances	$	105.527		$	101.573		$	92.874		$	98.057		$	97.140		$	107.595		$	111.828		$	123.132		$	129.173		$	132.961		$	112.649		$	124.179

Total Domestic Net Flows

Unaudited [Billions of Dollars]

For the Year	2000			2001			2002			2003			2004
Lincoln Retirement	$	(2.874	)	$	0.105		$	0.453		$	1.007		$	2.922
Life Insurance Segment		1.158			1.163			1.320			1.377			1.247
Investment Management Segment- Retail		(1.500	)		(0.375	)		0.806			1.271			3.136
Consolidating Adjustments		1.022			0.035			(0.082	)		0.064			0.030
Total Retail Net Flows		(2.194	)		0.927			2.496			3.719			7.335
Investment Management Segment- Institutional		(5.693	)		(0.231	)		2.106			2.478			7.178
Consolidating Adjustments		0.035			(0.015	)		0.005			(0.002	)		0.031
Total Net Flows	$	(7.853	)	$	0.681		$	4.608		$	6.195		$	14.545

For the Quarter	Mar 2002		Jun 2002			Sep 2002		Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Lincoln Retirement	$	0.088	$	0.223		$	0.068	$	0.074		$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794
Life Insurance Segment		0.236		0.385			0.297		0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408
Investment Management Segment- Retail		0.089		0.167			0.048		0.502			0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170
Consolidating Adjustments		0.009		(0.038	)		0.133		(0.187	)		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154
Total Retail Net Flows		0.423		0.737			0.545		0.791			0.568			0.723			0.965			1.464			1.832			1.669			1.308			2.527
Investment Management Segment- Instit.		0.731		0.455			0.348		0.572			0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095
Consolidating Adjustments		0.022		(0.026	)		0.008		0.001			(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000
Total Net Flows	$	1.176	$	1.166		$	0.901	$	1.364		$	0.868		$	1.021		$	1.799		$	2.508		$	3.530		$	3.710		$	2.682		$	4.622

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

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 OF 2

12/31/2004 PAGE 33A

Consolidated Domestic Deposits/Account Balances (excluding Assets

Managed by Delaware’s London-based International Investment Unit)

Unaudited [Billions of Dollars]

	2000			2001			2002			2003			2004
Deposits - For the Year
Lincoln Retirement - Fixed Annuities	$	2.074		$	3.342		$	3.672		$	3.125		$	3.110
Lincoln Retirement - Variable Annuities		3.165			3.067			2.743			3.119			5.910
Lincoln Retirement - Life Insurance		0.014			0.012
Life Insurance Segment - Life Insurance		1.884			1.934			2.138			2.259			2.243
Inv Mgmt - Annuities		1.782			1.701			2.456			2.140			2.752
Inv Mgmt - Mutual Funds		2.577			1.523			1.829			2.315			3.235
Inv Mgmt - Managed Acct. & Other		0.525			0.469			1.115			1.116			2.999
Consolidating Adjustments		(0.765	)		(0.608	)		(1.576	)		(0.864	)		(0.975	)
Total Gross Retail Deposits		11.256			11.439			12.376			13.210			19.274
Investment Management Segment - Instit.		1.924			1.943			3.709			3.320			6.637
Consolidating Adjustments		(0.152	)		(0.207	)		(0.232	)		(0.150	)		(0.089	)
Total Gross Deposits	$	13.029		$	13.175		$	15.854		$	16.380		$	25.822
Account Balances - End of Year
Lincoln Retirement - Fixed Annuities	$	15.394		$	16.491		$	18.085		$	18.868		$	19.268
Lincoln Retirement - Variable Annuities		39.427			34.638			27.438			35.786			43.223
Lincoln Retirement - Life Insurance		0.160			0.149
Life Insurance Segment - Life Insurance		10.847			11.377			12.086			13.420			14.382
Inv Mgmt - Annuities		13.527			11.835			9.688			12.368			14.494
Inv Mgmt - Mutual Funds		13.260			11.554			10.296			12.614			13.251
Inv Mgmt - Managed Acct. & Other		1.342			1.719			2.270			3.768			6.642
Consolidating Adjustments		(7.757	)		(6.676	)		(5.123	)		(6.553	)		(7.476	)
Total Retail Account Balances		86.200			81.088			74.741			90.271			103.784
Investment Management Segment - Instit.		25.225			11.562			12.348			16.299			21.643
Consolidating Adjustments		(1.434	)		(1.211	)		(0.924	)		(1.183	)		(1.248	)
Total Account Balances	$	109.991		$	91.439		$	86.165		$	105.387		$	124.179

	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	$	0.906		$	0.853		$	1.091		$	0.822		$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732
Lincoln Retirement - Variable Annuities		0.808			0.787			0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655
Life Insurance Segment - Life Insurance		0.440			0.577			0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686
Inv Mgmt - Annuities		0.589			0.601			0.756			0.510			0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737
Inv Mgmt - Mutual Funds		0.452			0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922
Inv Mgmt - Managed Acct. & Other		0.159			0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860
Consolidating Adjustments		(0.280	)		(0.333	)		(0.437	)		(0.525	)		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)
Total Gross Retail Deposits		3.074			3.240			3.206			2.856			2.875			2.958			3.367			4.010			4.903			4.646			4.435			5.290
Investment Management Segment - Instit.		0.986			0.863			0.866			0.994			0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750
Consolidating Adjustments		(0.046	)		(0.069	)		(0.040	)		(0.076	)		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)
Total Gross Deposits	$	4.014		$	4.034		$	4.032		$	3.773		$	3.714		$	3.400		$	4.430		$	4.837		$	6.090		$	5.983		$	5.711		$	8.038
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	$	16.534		$	16.910		$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268
Lincoln Retirement - Variable Annuities		35.150			31.206			25.942			27.438			26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223
Life Insurance Segment - Life Insurance		11.667			11.759			11.726			12.086			12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382
Inv Mgmt - Annuities		11.920			10.896			9.327			9.688			9.423			10.718			11.104			12.368			12.973			13.037			13.074			14.494
Inv Mgmt - Mutual Funds		11.599			11.036			10.072			10.296			10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251
Inv Mgmt - Managed Acct. & Other		1.821			1.847			1.820			2.270			2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642
Consolidating Adjustments		(6.640	)		(6.000	)		(4.940	)		(5.123	)		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)
Total Retail Account Balances		82.051			77.654			71.597			74.741			74.309			80.999			83.499			90.271			93.812			95.542			95.393			103.784
Investment Management Segment - Instit.		12.361			12.072			11.126			12.348			12.571			13.943			14.660			16.299			17.215			17.414			18.396			21.643
Consolidating Adjustments		(1.186	)		(1.045	)		(0.866	)		(0.924	)		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)
Total Account Balances	$	93.226		$	88.681		$	81.857		$	86.165		$	85.948		$	93.894		$	97.115		$	105.387		$	109.851		$	111.789		$	112.649		$	124.179

Total Domestic Net Flows (excluding Assets

Managed by Delaware’s London-based International Investment Unit)

For the Year	2000			2001			2002			2003			2004
Lincoln Retirement	$	(2.874	)	$	0.105		$	0.453		$	1.007		$	2.922
Life Insurance Segment		1.158			1.163			1.320			1.377			1.247
Investment Management Segment - Retail		(1.500	)		(0.375	)		0.517			1.325			3.160
Consolidating Adjustments		1.022			0.035			(0.082	)		0.064			0.030
Total Retail Net Flows		(2.194	)		0.927			2.207			3.773			7.359
Investment Management Segment - Institutional		(5.120	)		(0.925	)		1.885			1.433			3.884
Consolidating Adjustments		0.035			(0.015	)		0.005			(0.002	)		0.031
Total Net Flows	$	(7.280	)	$	(0.013	)	$	4.097		$	5.203		$	11.274

For the Quarter	Mar 2002		Jun 2002			Sep 2002		Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Lincoln Retirement	$	0.088	$	0.223		$	0.068	$	0.074		$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794
Life Insurance Segment		0.236		0.385			0.297		0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408
Investment Management Segment- Retail		0.089		0.167			0.048		0.213			0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170
Consolidating Adjustments		0.009		(0.038	)		0.133		(0.187	)		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154
Total Retail Net Flows		0.423		0.737			0.545		0.502			0.602			0.725			0.970			1.478			1.843			1.676			1.313			2.527
Investment Management Segment- Instit.		0.547		0.328			0.337		0.673			0.562			(0.016	)		0.430			0.457			0.560			0.379			0.850			2.095
Consolidating Adjustments		0.022		(0.026	)		0.008		0.001			(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000
Total Net Flows	$	0.992	$	1.039		$	0.890	$	1.176		$	1.134		$	0.718		$	1.435		$	1.918		$	2.441		$	2.054		$	2.157		$	4.622

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

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 OF 2

12/31/2004 PAGE 34

Consolidated Investment Data - Assets Managed

Unaudited [Billions of Dollars]

For the Year Ended December 31	2000		2001		2002		2003		2004
Assets Managed by Source
LNC’s Investments and Cash
Fixed maturity securities - available for sale	$	27.450	$	28.346	$	32.767	$	32.769	$	34.701
Equity securities - available for sale		0.550		0.470		0.337		0.199		0.161
Trading securities								3.120		3.237
Other investments		7.369		7.297		6.895		6.689		6.408
Total LNC Investments		35.369		36.113		40.000		42.778		44.507
Separate accounts		50.580		44.833		36.178		46.565		55.205
Cash and invested cash		1.927		3.095		1.691		1.711		1.662
Total LNC		87.876		84.042		77.869		91.054		101.374
Non-affiliate assets managed		41.861		38.421		38.052		49.587		42.966
Total Assets Managed	$	129.737	$	122.463	$	115.921	$	140.641	$	144.340
Assets Managed by Advisor
Investment Management segment		53.355		48.412		46.495		62.794		56.029
(See page 28 for additional detail)
DLIA-Corp		35.686		38.119		41.104		43.024		43.980
(Assets managed internally-see page 28)
Lincoln (UK)		7.873		6.847		6.351		7.668		8.599
Policy Loans (within business units)		1.961		1.940		1.946		1.924		1.871
Non-LNC Affiliates		30.862		27.145		20.026		25.231		33.862
Total Assets Managed	$	129.737	$	122.463	$	115.921	$	140.641	$	144.340

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004		Jun 2004		Sep 2004		Dec 2004
Assets Managed by Source
LNC’s Investments and Cash:
Fixed maturity securities - available for sale	$	28.841	$	29.725	$	32.037	$	32.767	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701
Equity securities - available for sale		0.439		0.419		0.397		0.337		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161
Trading securities																3.120		3.191		3.088		3.224		3.237
Other investments		7.084		7.016		6.928		6.895		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408
Total LNC Investments		36.363		37.160		39.363		40.000		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507
Separate accounts		44.917		40.580		34.069		36.178		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205
Cash and invested cash		1.700		2.265		1.600		1.691		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662
Total LNC		82.979		80.005		75.031		77.869		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374
Non-affiliate assets managed		39.853		39.531		35.650		38.052		37.501		42.917		45.176		49.587		54.977		57.361		37.060		42.966
Total Assets Managed	$	122.832	$	119.536	$	110.682	$	115.921	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340
Assets Managed by Advisor
Investment Management segment	$	50.002	$	48.742	$	43.362	$	46.495	$	45.718	$	52.456	$	55.129	$	62.794	$	67.075	$	69.643	$	49.076	$	56.029
(See page 28 for additional detail)
DLIA-Corp		37.171		38.476		40.416		41.104		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980
(Assets managed internally-see page 28)
Lincoln (UK)		6.772		6.753		6.068		6.351		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599
Policy Loans (within business units)		1.918		1.906		1.899		1.946		1.929		1.920		1.910		1.924		1.877		1.871		1.872		1.871
Non-LNC Affiliates		26.970		23.659		18.937		20.026		19.181		22.439		23.933		25.231		28.497		29.476		29.877		33.862
Total Assets Managed	$	122.832	$	119.536	$	110.682	$	115.921	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340

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 OF 2

12/31/2004 PAGE 34A

Consolidated Investment Data - Assets Managed (excluding Assets

Managed by Delaware’s London-based International Investment Unit)

Unaudited [Billions of Dollars]

For the Year Ended December 31	2000		2001		2002		2003		2004
Assets Managed by Source
LNC’s Investments and Cash
Fixed maturity securities - available for sale	$	27.450	$	28.346	$	32.767	$	32.769	$	34.701
Equity securities - available for sale		0.550		0.470		0.337		0.199		0.161
Trading securities								3.120		3.237
Other investments		7.369		7.297		6.895		6.689		6.408
Total LNC Investments		35.369		36.113		40.000		42.778		44.507
Separate accounts		50.580		44.833		36.178		46.565		55.205
Cash and invested cash		1.927		3.095		1.691		1.711		1.662
Total LNC		87.876		84.042		77.869		91.054		101.374
Non-affiliate assets managed		29.891		26.679		26.159		31.842		42.966
Total Assets Managed	$	117.767	$	110.721	$	104.028	$	122.896	$	144.340
Assets Managed by Advisor
Investment Management segment	$	41.384	$	36.670	$	34.602	$	45.049	$	56.029
(See page 28A for additional detail)
DLIA-Corp		35.686		38.119		41.104		43.024		43.980
(Assets managed internally-see page 28A)
Lincoln (UK)		7.873		6.847		6.351		7.668		8.599
Policy Loans (within business units)		1.961		1.940		1.946		1.924		1.871
Non-LNC Affiliates		30.862		27.145		20.026		25.231		33.862
Total Assets Managed	$	117.767	$	110.721	$	104.028	$	122.896	$	144.340

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004		Jun 2004		Sep 2004		Dec 2004
Assets Managed by Source
LNC’s Investments and Cash:
Fixed maturity securities - available for sale	$	28.841	$	29.725	$	32.037	$	32.767	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701
Equity securities - available for sale		0.439		0.419		0.397		0.337		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161
Trading securities																3.120		3.191		3.088		3.224		3.237
Other investments		7.084		7.016		6.928		6.895		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408
Total LNC Investments		36.363		37.160		39.363		40.000		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507
Separate accounts		44.917		40.580		34.069		36.178		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205
Cash and invested cash		1.700		2.265		1.600		1.691		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662
Total LNC		82.979		80.005		75.031		77.869		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374
Non-affiliate assets managed		27.552		26.639		24.633		26.159		26.309		29.216		30.463		31.842		35.655		36.190		37.060		42.966
Total Assets Managed	$	110.532	$	106.645	$	99.665	$	104.028	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340
Assets Managed by Advisor
Investment Management segment	$	37.701	$	35.851	$	32.345	$	34.602	$	34.527	$	38.755	$	40.416	$	45.049	$	47.753	$	48.471	$	49.076	$	56.029
(See page 28A for additional detail)
DLIA-Corp		37.171		38.476		40.416		41.104		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980
(Assets managed internally-see page 28A)
Lincoln (UK)		6.772		6.753		6.068		6.351		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599
Policy Loans (within business units)		1.918		1.906		1.899		1.946		1.929		1.920		1.910		1.924		1.877		1.871		1.872		1.871
Non-LNC Affiliates		26.970		23.659		18.937		20.025		19.181		22.439		23.933		25.231		28.497		29.476		29.877		33.862
Total Assets Managed	$	110.532	$	106.645	$	99.665	$	104.028	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340

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 OF 2

12/31/2004 PAGE 35

Consolidated Investment Data

Unaudited [Millions of Dollars]

For the Year Ended December 31													2000			2001			2002			2003			2004
Net Investment Income
Fixed maturity AFS securities													$	2,148.7		$	2,121.0		$	2,117.0		$	2,113.2		$	2,005.7
Equity AFS securities														19.5			17.6			15.4			12.3			10.9
Trading securities																							46.5			193.5
Mortgage loans on real estate														373.8			374.5			356.8			338.3			350.1
Real estate														51.8			49.5			47.4			43.9			26.9
Policy loans														125.0			125.3			134.5			123.2			119.8
Invested cash														87.2			68.4			37.6			7.8			32.2
Other investments														66.8			69.4			16.3			48.8			55.3
Investment revenue														2,872.8			2,825.9			2,725.0			2,734.0			2,794.4
Investment expense														(88.7	)		(117.1	)		(93.1	)		(95.4	)		(90.3	)
Net Investment Income													$	2,784.1		$	2,708.7		$	2,631.9		$	2,638.5		$	2,704.1
Gross-up of Tax Exempt Income														7.8			7.2			7.5			7.7			7.7
Adjusted Net Investment Income													$	2,791.9		$	2,715.9		$	2,639.4		$	2,646.2		$	2,711.8
Mean Invested Assets (Amortized Cost)													$	37,471.3		$	37,616.9		$	38,828.5		$	41,042.8		$	43,216.4
Ratio of Adjusted Net Invest Income
Over Mean Invested Assets														7.45	%		7.22	%		6.80	%		6.45	%		6.27	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments													$	(17.5	)	$	(68.7	)	$	(177.2	)	$	(11.0	)	$	(30.0	)
Gains(Losses) on Derivatives																	(4.9	)		0.8			(1.6	)		(7.4	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)														477.7			183.7			557.6			39.8			29.8
Incr (Decr) on Derivatives																	21.4			24.4			(6.3	)		(8.1	)
Securities Available-for-Sale
[Billions of Dollars]
Fixed Maturity Sec (Fair Value)														27.450			28.346			32.767			35.887			37.936
Fixed Maturity Sec (Amortized Cost)														27.373			27.956			31.103			33.743			35.692
Equity Securities (Fair Value)														0.550			0.470			0.337			0.201			0.163
Equity Securities (Amortized Cost)														0.458			0.444			0.334			0.176			0.148
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA														22.1	%		17.2	%		20.1	%		22.8	%		23.5	%
AA or better														29.2	%		23.6	%		25.8	%		29.3	%		29.9	%
BB or less														6.7	%		8.3	%		6.6	%		6.8	%		7.0	%
For the Quarter Ended	Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Net Investment Income
Fixed maturity AFS securities	$	537.0		$	542.3		$	546.8		$	536.6		$	487.5		$	493.0		$	496.4		$	501.5		$	514.8
Equity AFS securities		5.1			2.8			2.9			3.9			2.7			2.4			2.0			2.2			4.4
Trading securities														46.5			47.5			48.6			47.7			49.7
Mortgage loans on real estate		86.4			81.6			84.3			94.5			77.9			100.4			92.1			83.8			73.8
Real estate		13.2			10.7			10.0			10.0			13.2			7.6			5.9			8.0			5.4
Policy loans		42.0			30.9			30.6			30.9			30.8			29.2			29.6			29.7			31.3
Invested cash		8.2			4.5			(1.7	)		3.2			1.7			3.5			5.2			5.6			17.9
Other investments		(0.1	)		8.2			10.7			8.9			20.9			15.0			23.8			14.0			2.4
Investment revenue		691.7			681.0			683.5			688.2			681.3			698.6			703.6			692.4			699.8
Investment expense		(24.4	)		(26.3	)		(23.3	)		(23.8	)		(22.1	)		(21.0	)		(20.5	)		(23.0	)		(25.7	)
Net Investment Income	$	667.3		$	654.6		$	660.2		$	664.4		$	659.2		$	677.5		$	683.1		$	669.4		$	674.1
Gross-up of Tax Exempt Income		2.6			1.7			1.8			2.3			1.8			1.7			1.6			1.7			2.6
Adjusted Net Invest Income	$	669.9		$	656.4		$	662.0		$	666.8		$	661.0		$	679.3		$	684.8		$	671.1		$	676.6
Mean Invested Assets (Amortized Cost)	$	39,733.1		$	40,342.2		$	40,966.9		$	41,597.9		$	41,999.1		$	42,615.7		$	42,987.4		$	43,499.3		$	43,763.4
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets		6.74	%		6.51	%		6.46	%		6.41	%		6.30	%		6.38	%		6.37	%		6.17	%		6.18	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments		(33.3	)		(58.2	)		(1.1	)		6.4			42.0			(7.9	)		(11.6	)		(14.5	)		3.9
Gains (Losses) on Derivatives		0.2			(1.2	)		(0.6	)		5.9			(5.7	)		(2.5	)		(1.8	)		(3.4	)		0.3
Incr (Decr) in Unreal Gains on Sec Avail-for-Sale (after DAC/Tax)		(64.3	)		118.7			245.9			(313.4	)		(11.4	)		244.9			(626.0	)		368.1			42.8
Incr (Decr) on Derivatives		1.0			(3.4	)		3.8			(5.6	)		(1.1	)		6.9			(10.5	)		1.3			(5.8	)
Available-for-Sale and Trading Securities
[Billions of Dollars]
Fixed Maturity Sec (Fair Value)		32.767			33.887			35.355			35.384			35.887			36.856			35.894			37.444			37.936
Fixed Maturity Sec (Amortized Cost)		31.103			31.905			32.257			32.896			33.743			34.031			34.648			35.256			35.692
Equity Securities (Fair Value)		0.337			0.249			0.257			0.243			0.201			0.200			0.185			0.180			0.163
Equity Securities (Amortized Cost)		0.334			0.241			0.244			0.223			0.176			0.171			0.162			0.156			0.148
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA		20.1	%		20.1	%		19.5	%		20.4	%		22.8	%		23.4	%		23.3	%		23.6	%		23.5	%
AA or better		25.8	%		25.7	%		25.1	%		26.4	%		29.3	%		29.6	%		29.5	%		29.7	%		29.9	%
BB or less		6.6	%		6.6	%		6.6	%		6.9	%		6.8	%		6.9	%		7.1	%		6.9	%		7.0	%

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.

12/31/2004 PAGE 36

Common Stock / Debt Information

Unaudited [Dollars per Share, except Percentages]

For the Year Ended December 31				1994			1995			1996			1997			1998			1999			2000			2001			2002			2003			2004
Common Stock [1]
Highest Price				$	22.188		$	26.875		$	28.500		$	39.063		$	49.438		$	57.500		$	56.375		$	52.750		$	53.650		$	41.320		$	50.380
Lowest Price					17.313			17.313			20.375			24.500			33.500			36.000			22.625			38.000			25.150		$	24.730			40.060
Closing Price					17.500			26.875			26.250			39.063			40.907			40.000			47.313			48.570			31.580		$	40.370			46.680
Dividend Payout Ratio [2]					51.0	%		39.7	%		38.2	%		22.8	%		43.9	%		50.5	%		38.3	%		44.9	%		273.5	%		49.1	%		37.0	%
Yield [3]					4.9	%		3.4	%		3.7	%		2.7	%		2.7	%		2.9	%		2.6	%		2.6	%		3.0	%		3.5	%		3.1	%
Preferred Stock Dividend (Millions)				$	17.119		$	8.644		$	0.112		$	0.106		$	0.100		$	0.089		$	0.078		$	0.071		$	0.061		$	0.057		$	0.052
Debt: (End of Period)
Senior Debt Ratings
A.M. Best																							a			a			a			a-			a-
Fitch					AA-			AA-			AA-			AA-			A+			A+			A+			A+			A			A			A
Moody’s					A1			A2			A2			A2			A2			A2			A3			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			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
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			AA
First Penn - Moody’s														A1			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+			A+
LLA of New York - Fitch*														AA+			AA+			AA+			AA			AA			AA			AA			AA
LLA of New York - Moody’s											A1			A1			A1			A1			A1			A1			A1			A1			A1
LLA of New York - Standard & Poors*											AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-			AA-
Ratios
Debt to Total Capitalization [4]					19.9	%		22.8	%		18.8	%		17.0	%		21.2	%		23.2	%		20.8	%		21.3	%		23.4	%		20.7	%		20.9	%
Debt to Equity [4]					24.9	%		29.5	%		23.1	%		20.5	%		26.9	%		30.3	%		26.3	%		27.0	%		30.5	%		26.1	%		26.5	%
For the Quarter Ended	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004
Common Stock:
Highest Price	$	53.650		$	52.540		$	42.080		$	35.950		$	35.700		$	37.500		$	38.640		$	41.320		$	48.870		$	50.380		$	47.500		$	48.700
Lowest Price		47.200			40.750			29.120			25.150			24.730			27.870			34.630			35.410			40.060			43.260			41.900			40.790
Closing Price		50.730			42.000			30.550			31.580			28.000			35.630			35.380			40.370			47.320			47.250			47.000			46.680
Yield [3]		2.5	%		3.0	%		4.2	%		4.2	%		4.8	%		3.8	%		3.8	%		3.5	%		3.0	%		3.0	%		3.0	%		3.1	%
Preferred Stock Dividend (Millions)	$	0.016		$	0.015		$	0.015		$	0.015		$	0.014		$	0.016		$	0.014		$	0.014		$	0.013		$	0.013		$	0.013		$	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]		22.5	%		22.5	%		23.0	%		23.4	%		23.1	%		22.3	%		21.5	%		20.7	%		22.8	%		22.6	%		22.0	%		20.9	%
Debt to Equity [4]		29.1	%		29.0	%		29.9	%		30.5	%		30.0	%		28.7	%		27.5	%		26.1	%		29.5	%		29.1	%		28.1	%		26.5	%

 * Rating based on affiliation with Lincoln Life

[1] Stock prices include the 2-for-1 splits in 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.