Exhibit 99.2

Lincoln Statistical Report

First Quarter

2005

Lincoln Financial Group

This document is dated May 2, 2005. It may not be accurate after such date and LNC

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

Lincoln Financial Group

Statistical Report

First Quarter

2005

Table of Contents
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

3/31/2005 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 and losses on investments and derivatives,

• Restructuring charges,

• Gains and 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 and 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 and losses related to reinsurance embedded derivatives/trading account assets,

• Gains and losses on the sale of subsidiaries and blocks of business,

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

• Return on capital measures the effectiveness of LNC’s use of its total capital, which includes equity (excluding accumulated other comprehensive income), debt 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 March 31, 2005 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 its stock option incentive plans under Statement of Financial Accounting Standards (“FAS”) No. 123, “Account 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.

3/31/2005 PAGE 1

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended March 31
	2005 Amount			2004 Amount			Change			% Change
Net Income	$	178.9		$	130.5		$	48.5		37.2	%
Less:
Realized gains (losses) on investments		(6.0	)		(7.9	)		1.9
Gains (losses) on derivatives		1.4			(2.5	)		3.8
Net gain (loss) on reinsurance derivative/trading account securities		2.8			(2.7	)		5.6
Reserve development/ amortization of related deferred gain		0.2			0.2
Gain on sale of subsidiaries/ businesses		9.3						9.3
Restructuring charges		(1.3	)		(7.5	)		6.2
Cumulative effect of accounting change					(24.5	)		24.5
Income from Operations	$	172.5		$	175.3		$	(2.8	)	(1.6	)%
Income from Operations - By Segment
Lincoln Retirement	$	98.6		$	102.2		$	(3.6	)	(3.5	)%
Life Insurance		67.7			74.8			(7.0	)	(9.4	)%
Investment Management		7.4			12.5			(5.1	)	(40.8	)%
Lincoln UK		10.0			6.2			3.8		61.3	%
Corporate & Other		(11.3	)		(20.3	)		9.1
Total	$	172.5		$	175.3		$	(2.8	)	(1.6	)%
Earnings per share (diluted)
Net Income	$	1.01		$	0.72		$	0.29		40.3	%
Less:
Realized gains (losses) on investments	$	(0.04	)	$	(0.04	)
Gains (losses) on derivatives	$	0.01		$	(0.01	)	$	0.02
Net gain (loss) on reinsurance derivative/trading account securities	$	0.02		$	(0.02	)	$	0.04
Reserve development/ amortization of related deferred gain
Gain on sale of subsidiaries/ businesses	$	0.05					$	0.05
Restructuring charges	$	(0.01	)	$	(0.04	)	$	0.03
Cumulative effect of accounting change				$	(0.14	)	$	0.14
Income from Operations	$	0.98		$	0.97		$	0.01		1.0	%
Revenue	$	1,313.2		$	1,259.0		$	54.2		4.3	%
Less:
Realized gains (losses) on investments		(8.7	)		(12.0	)		3.3
Gains (losses) on derivatives		1.5			(3.8	)		5.3
Gain (loss) on reinsurance derivative/trading account securities		4.4			(4.2	)		8.6
Amortization of deferred gain-reserve development		0.3			0.3
Gain on sale of subsidiaries/ businesses		14.2						14.2
Operating Revenue	$	1,301.5		$	1,278.8		$	22.7		1.8	%
Operating Revenue- By Segment
Lincoln Retirement	$	538.5		$	528.0		$	10.5		2.0	%
Life Insurance		484.2			483.4			0.8		0.2	%
Investment Management		130.4			135.2			(4.8	)	(3.6	)%
Lincoln UK		74.6			76.1			(1.5	)	(2.0	)%
Corporate & Other		73.8			56.1			17.7		31.6	%
Total	$	1,301.5		$	1,278.8		$	22.7		1.8	%

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.

3/31/2005 PAGE 2

Financial Highlights

Unaudited [Billions of Dollars]

	For the Quarter Ended March 31
	2005 Amount		2004 Amount		Change			% Change
Operational Data by Segment
Lincoln Retirement
Gross Deposits	$	2.639	$	2.223	$	0.415		18.7	%
Net Flows		0.776		0.712		0.064		9.0	%
Account Values (Gross)		65.048		58.900		6.148		10.4	%
Account Values (Net of Reinsurance)		62.757		56.549		6.208		11.0	%
Life Insurance Segment
First Year Premium- Retail (in millions)	$	179.344	$	195.566	$	(16.222	)	(8.3	)%
First Year Premium- COLI (in millions)		24.804		14.226		10.578		74.4	%
First Year Premium- Total (in millions)		204.148		209.792		(5.644	)	(2.7	)%
In-force		308.976		287.007		21.970		7.7	%
Account Values		14.466		13.606		0.860		6.3	%
Investment Management Segment
Retail Deposits	$	3.381	$	2.451	$	0.930		38.0	%
Retail Net Flows		1.579		0.969		0.610		63.0	%
Institutional In-flows		1.787		2.623		(0.836	)	(31.9	)%
Institutional Net Flows		1.217		1.661		(0.444	)	(26.7	)%
Total Net Flows		2.796		2.629		0.167		6.4	%
Assets Under Management- Retail and Inst’l		58.022		67.075		(9.053	)	(13.5	)%
Assets Under Management - Insurance-related Assets		44.210		44.006		0.204		0.5	%
Assets Under Management - Total Segment		102.231		111.081		(8.849	)	(8.0	)%
Consolidated
Domestic Retail Deposits	$	6.249	$	4.905	$	1.344		27.4	%
Domestic Retail Account Balances		104.936		94.133		10.803		11.5	%
Domestic Retail Net Flows		2.593		1.832		0.761		41.5	%
Domestic Deposits		8.021		7.509		0.512		6.8	%
Domestic Net Flows		3.851		3.530		0.320		9.1	%
Assets Under Management		145.487		149.292		(3.805	)	(2.5	)%
Operational Data (excluding Assets Managed by Delaware’s London-based International Investment Unit)
Investment Management Segment
Retail Deposits	$	3.381	$	2.449	$	0.932		38.1	%
Retail Net Flows		1.579		0.980		0.599		61.1	%
Institutional In-flows		1.787		1.206		0.580		48.1	%
Institutional Net Flows		1.217		0.560		0.657		117.4	%
Total Net Flows		2.796		1.540		1.256		81.6	%
Assets Under Management- Retail and Inst’l		58.022		47.753		10.269		21.5	%
Assets Under Management - Insurance-related Assets		44.210		44.006		0.204		0.5	%
Assets Under Management - Total Segment		102.231		91.759		10.473		11.4	%
Consolidated
Domestic Retail Deposits	$	6.249	$	4.903	$	1.346		27.5	%
Domestic Retail Account Balances		104.936		93.812		11.124		11.9	%
Domestic Retail Net Flows		2.593		1.843		0.750		40.7	%
Domestic Deposits		8.021		6.090		1.930		31.7	%
Domestic Net Flows		3.851		2.441		1.410		57.8	%
Assets Under Management		145.487		129.970		15.517		11.9	%

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.

3/31/2005 PAGE 3

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended March 31
	2005 Amount			2004 Amount			Change			% Change
Balance Sheet Assets - End of Period	$	116,352.2		$	109,869.9		$	6,482.3		5.9	%
Shareholders’ Equity
Beg of Period (including AOCI)	$	6,175.6		$	5,811.6		$	364.0
End of Period (including AOCI)		6,042.9			6,143.5			(100.6	)
End of Period (excluding AOCI)		5,365.8			5,004.2			361.6
Average Equity (excluding AOCI)		5,338.8			5,016.8			322.1
Return on Equity
Net Income/Average Equity (excluding AOCI)		13.4	%		10.4	%		3.0	%
Inc from Operations/Average Equity (excluding AOCI)		12.9	%		14.0	%		(1.1	)%
Return on Capital
Inc from Operations/Average Capital		10.8	%		11.5	%		(0.7	)%
Common Stock Outstanding
Average for the Period - Diluted		176.6			181.2			(4.6	)	(2.5	)%
End of Period - Assuming Conv of Pref.		173.9			178.8			(4.8	)	(2.7	)%
End of Period - Diluted		176.5			181.4			(4.9	)	(2.7	)%
Book Value (including AOCI)	$	34.74		$	34.36		$	0.38		1.1	%
Book Value (excluding AOCI)	$	30.85		$	27.99		$	2.86		10.2	%
Cash Returned to Shareholders
Share Repurchase - dollar amount	$	34.6			64.8		$	(30.1	)
Dividends Declared to Shareholders		63.7			62.5			1.3
Total Cash Returned to Shareholders	$	98.4		$	127.2		$	(28.8	)
Share Repurchase - number of shares		0.755			1.369			(0.614	)
Dividend Declared on Common Stock - per share	$	0.365		$	0.350		$	0.015		4.3	%

	For the Quarter Ended March 31
	2005 Amount			2004 Amount
Comprehensive Income
Net Income	$	178.9		$	130.5
Foreign Currency Translation		(7.8	)		19.9
Net Unrealized Gains (Losses) on Securities		582.9			1,038.0
Gains (Losses) on Derivatives		7.7			29.0
Minimum Pension Liability Adjustment		(60.0	)		(56.6	)
Comprehensive Income	$	701.7		$	1,160.8

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.

3/31/2005 PAGE 4

Financial Highlights

Unaudited [Millions of Dollars]

	For the Quarter Ended March 31
	2005 Amount			2004 Amount			Change			% Change
Consolidated Condensed Statements of Income
Revenue:
Insurance Premiums and Fees	$	489.4		$	459.2		$	30.2		6.6	%
Investment Advisory Fees		59.4			62.7			(3.3	)	(5.3	)%
Net Investment Income		659.8			677.5			(17.7	)	(2.6	)%
Realized Gains (Losses) on Investments		(8.7	)		(12.0	)		3.3
Gains (Losses) on Derivatives		1.5			(3.8	)		5.3
Gain on Reinsurance Derivative/Trading Account Securities		4.4			(4.2	)		8.6
Amortization of Deferred Gain on Indemnity Reinsurance		18.9			17.9			1.1		5.9	%
Gain on Sale of Subsidiaries/ Businesses		14.2						14.2
Mark-to-Market Adjustment on Reclassification from AFS to Trading Account Securities
Other		74.3			61.8			12.6		20.4	%
Total Revenue		1,313.2			1,259.0			54.2		4.3	%
Benefits and Expenses:
Benefits		572.6			583.3			(10.7	)	(1.8	)%
Underwriting, Acquisition, Insurance and Other Expenses		502.8			467.1			35.7		7.6	%
Total Benefits and Expenses		1,075.4			1,050.4			25.0		2.4	%
Income before Federal Taxes		237.8			208.6			29.2
Federal Income Taxes		58.9			53.7			5.2
Income Before Cumulative Effect of Accounting Change		178.9			155.0			24.0
Cumulative Effect of Accounting Changes					(24.5	)		24.5
Net Income	$	178.9		$	130.5		$	48.5		37.2	%
Income before Tax and Cumulative Effect of Accounting Changes By Segment
Lincoln Retirement	$	127.0		$	120.3		$	6.7
Life Insurance		94.9			103.4			(8.4	)
Investment Management		10.4			14.4			(4.0	)
Lincoln UK		29.7			9.2			20.5
Corporate and Other		(24.2	)		(38.6	)		14.4
Income before Tax and Cumulative Effect of Accounting Changes	$	237.8		$	208.6		$	29.2
Pre-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	$	(2.3	)	$	(9.4	)	$	7.0
Life Insurance		(4.5	)		(3.9	)		(0.5	)
Investment Management		(0.3	)		(2.3	)		2.0
Lincoln UK					(0.4	)		0.4
Corporate and Other		(0.1	)		0.1			(0.3	)
Pre-Tax Realized Gains (Losses) on Investments and Derivatives	$	(7.2	)	$	(15.9	)	$	8.6
After-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	$	(1.5	)	$	(6.1	)	$	4.6
Life Insurance		(2.9	)		(2.6	)		(0.3	)
Investment Management		(0.2	)		(1.5	)		1.3
Lincoln UK					(0.3	)		0.3
Corporate and Other					0.1			(0.1	)
After-Tax Realized Gains (Losses) on Investments and Derivatives	$	(4.6	)	$	(10.3	)	$	5.7

* 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.

3/31/2005 PAGE 5

Financial Highlights

Unaudited [Millions of Dollars]

	As of
	March 2005 Amount			December 2004 Amount			Change			% Change
Consolidated Condensed Balance Sheets
Assets:
Investments:
Available for Sale Securities:
Fixed Maturities	$	34,224.9		$	34,700.6		$	(475.7	)	(1.4	)%
Equities		154.8			161.1			(6.3	)	(3.9	)%
Trading Securities		3,206.5			3,237.4			(30.9	)	(1.0	)%
Mortgage Loans on Real Estate		3,805.7			3,856.9			(51.2	)	(1.3	)%
Real Estate		213.4			191.4			22.0		11.5	%
Policy Loans		1,860.5			1,870.6			(10.1	)	(0.5	)%
Other Long-Term Investments		516.5			489.3			27.2		5.6	%
Total Investments		43,982.2			44,507.3			(525.1	)	(1.2	)%
Assets Held in Separate Accounts		55,387.2			55,204.6			182.6		0.3	%
Other Assets		16,982.8			16,507.4			475.4		2.9	%
Total Assets	$	116,352.2		$	116,219.3		$	132.9		0.1	%
Liabilities and Shareholders’ Equity
Liabilities:
Insurance and Investment Contract Liabilities	$	47,536.4		$	47,402.5		$	133.9		0.3	%
Liabilities Related to Separate Accounts		55,387.2			55,204.6			182.6		0.3	%
Other Liabilities		7,385.6			7,436.6			(50.9	)	(0.7	)%
Total Liabilities		110,309.3			110,043.7			265.6		0.2	%
Shareholders’ Equity:
Net Unrealized Gains on Securities and Derivatives		590.6			836.9			(246.3	)	(29.4	)%
Minimum Pension Liability Adjustment		(60.0	)		(60.5	)		0.6		1.0	%
Foreign Currency Translation Adjustment		146.5			154.3			(7.8	)	(5.1	)%
Other Shareholders’ Equity		5,365.8			5,244.9			120.9		2.3	%
Total Shareholders’ Equity		6,042.9			6,175.6			(132.7	)	(2.1	)%
Total Liabilities and Shareholders’ Equity	$	116,352.2		$	116,219.3		$	132.9		0.1	%
	As of
	March 2005 Amount			December 2004 Amount			Change			% Change
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	$	3,445.0		$	3,147.1		$	297.8		9.5	%
Deferral		203.5			198.7			4.7		2.4	%
Amortization		(132.8	)		155.3			(288.1	)	(185.5	)%
Included in Total Benefits and Expenses		70.7			354.1			(283.4	)	(80.0	)%
Adjustment related to realized (gains) losses on available-for-sale securities		(11.7	)		(45.7	)		34.0		74.4	%
Adjustment related to unrealized (gains) losses on available-for-sale securities		215.7			(14.8	)		230.5		1558.6	%
Foreign currency translation adjustment		(7.0	)		42.9			(49.9	)	(116.2	)%
Cumulative effect of accounting change					(38.7	)		38.7
Balance at end-of-period	$	3,712.7		$	3,445.0		$	267.8		7.8	%
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	$	1,095.2		$	1,196.5		$	(101.3	)	(8.5	)%
Amortization		(18.9	)		(120.3	)		101.4		84.3	%
Foreign currency translation adjustment		(3.3	)		19.6			(22.9	)	(116.6	)%
Cumulative effect of accounting change					(0.6	)		0.6
Balance at end-of-period	$	1,073.1		$	1,095.2		$	(22.2	)	(2.0	)%

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.

3/31/2005 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.

3/31/2005 PAGE 7

Quarterly Summary

Unaudited [Millions of Dollars, except Common Share Data]

For the Quarter Ended	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Revenue
Lincoln Retirement	$	397.8		$	486.4		$	536.3		$	634.2		$	516.5		$	524.5		$	499.0		$	545.1		$	538.8
Life Insurance		457.5			474.0			468.9			505.0			479.2			478.9			476.8			502.0			480.4
Investment Management		102.1			116.4			121.7			134.3			132.9			140.8			242.9			128.3			130.0
Lincoln UK		68.9			60.2			67.3			77.1			75.8			91.0			95.7			90.0			88.9
Corporate & Other		73.0			76.1			74.8			351.9			54.7			123.6			91.6			82.0			75.2
Total Revenue	$	1,099.3		$	1,213.2		$	1,268.8		$	1,702.6		$	1,259.0		$	1,358.7		$	1,406.1		$	1,347.5		$	1,313.2
Net Income(Loss)
Lincoln Retirement	$	6.9		$	81.7		$	102.0		$	109.9		$	71.8		$	94.2		$	90.8		$	104.6		$	98.4
Life Insurance		48.5			65.6			55.8			82.2			67.5			72.0			52.0			72.4			64.6
Investment Management		1.0			4.6			6.3			18.2			10.0			14.5			58.1			5.8			7.1
Lincoln UK		6.8			12.4			11.5			12.2			5.9			17.2			9.9			17.1			19.3
Corporate & Other		(21.7	)		(21.6	)		(42.4	)		(28.1	)		(24.8	)		(10.9	)		(11.1	)		(10.1	)		(10.5	)
Total Net Income (Loss)	$	41.6		$	142.7		$	133.3		$	194.3		$	130.5		$	187.0		$	199.7		$	189.9		$	178.9
Income (Loss) from Operations
Lincoln Retirement	$	57.4		$	86.1		$	94.3		$	94.1		$	102.2		$	101.8		$	110.2		$	100.5		$	98.6
Life Insurance		60.7			71.8			58.7			73.4			74.8			76.2			55.4			74.0			67.7
Investment Management		1.3			4.5			9.7			19.0			12.5			13.4			12.5			5.2			7.4
Lincoln UK		6.8			12.4			11.3			13.0			6.2			10.7			10.1			16.6			10.0
Corporate & Other		(21.5	)		(21.5	)		(18.0	)		(20.8	)		(20.3	)		(20.7	)		(9.9	)		(6.3	)		(11.3	)
Income (Loss) from Operations	$	104.8		$	153.3		$	156.0		$	178.7		$	175.3		$	181.4		$	178.2		$	189.9		$	172.5
OTHER DATA
Assets	$	92,497.6		$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2
Shareholders’ Equity
Beg 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 (including AOCI)		5,450.0			5,815.9			5,586.4			5,811.6			6,143.5			5,518.9			5,970.8			6,175.6			6,042.9
End of Period (excluding AOCI)		4,610.5			4,699.8			4,790.6			4,942.6			5,004.2			5,023.6			5,109.8			5,244.9			5,365.8
Average Equity (excluding AOCI)		4,682.0			4,672.0			4,784.5			4,888.2			5,016.8			5,024.6			5,075.7			5,185.0			5,338.8
Common Shares Outstanding
Average for the Period - Diluted		178.3			179.2			179.9			180.4			181.2			180.3			177.7			176.7			176.6
End of Period - Diluted		178.4			179.5			179.9			180.7			181.4			178.8			177.1			176.1			176.5
Per Share Data (Diluted)
Net Income	$	0.23		$	0.80		$	0.74		$	1.08		$	0.72		$	1.04		$	1.12		$	1.07		$	1.01
Income from Operations	$	0.59		$	0.86		$	0.87		$	0.99		$	0.97		$	1.00		$	1.00		$	1.07		$	0.98
Shareholders’ Equity Per Share
Shareholders’ Equity (including AOCI)	$	30.66		$	32.68		$	31.34		$	32.56		$	34.36		$	31.32		$	34.15		$	35.53		$	34.74
Shareholders’ Equity (excluding AOCI)	$	25.94		$	26.41		$	26.87		$	27.69		$	27.99		$	28.51		$	29.23		$	30.17		$	30.85
Dividends Declared (Common Stock)	$	0.335		$	0.335		$	0.335		$	0.350		$	0.350		$	0.350		$	0.350		$	0.365		$	0.365
Return on Equity
Net Income/Average Equity		3.6	%		12.2	%		11.1	%		15.9	%		10.4	%		14.9	%		15.7	%		14.6	%		13.4	%
Inc from Operations/Average Equity		8.9	%		13.1	%		13.0	%		14.6	%		14.0	%		14.4	%		14.0	%		14.7	%		12.9	%
Market Value of Common Stock
Highest Price	$	35.700		$	37.500		$	38.640		$	41.320		$	48.870		$	50.380		$	47.500		$	48.700		$	49.420
Lowest Price	$	24.730		$	27.870		$	34.630		$	35.410		$	40.060		$	43.260		$	41.900		$	40.790		$	44.360
Closing Price	$	28.000		$	35.630		$	35.380		$	40.370		$	47.320		$	47.250		$	47.000		$	46.680		$	45.140

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.

3/31/2005 PAGE 8

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

For the Quarter Ended March 31	Lincoln Retirement						Life Insurance						Investment Management						Lincoln UK
	Mar 2005			Mar 2004			Mar 2005			Mar 2004			Mar 2005			Mar 2004			Mar 2005		Mar 2004
Revenue
Life and annuity premiums	$	10.5		$	6.5		$	45.6		$	47.8								$	14.4	$	17.6
Surrender charges		7.4			5.9			12.0			13.8			0.7			0.5
Mortality assessments								133.3			128.5									9.0		9.6
Expense assessments		164.6			137.3			48.8			49.8			16.6			14.1			26.6		24.2
Health premiums																				0.2		0.5
Investment advisory fees														84.2			89.3
Other revenue and fees		(1.4	)		(0.8	)		8.2			7.8			16.0			19.1			4.1		5.8
Net investment income		357.4			379.0			236.3			235.7			12.9			12.2			20.3		18.5
Realized gains (losses) on investments		(3.2	)		(5.7	)		(5.0	)		(3.9	)		(0.4	)		(2.3	)				(0.4	)
Gains (losses) on derivatives		0.9			(3.7	)		0.6
Gain (loss) on reins. derivative/trading account securities		2.6			(2.1	)		0.7			(0.3	)
Gain on sale of subsidiaries/ businesses																				14.2
Total Revenue		538.8			516.5			480.4			479.2			130.0			132.9			88.9		75.8
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		52.4			54.1			97.4			97.4									21.7		25.8
Div accum & div to policyholders								18.4			18.5
Interest credited to policy bal.		204.7			207.8			145.8			144.8			6.8			6.6
Health policy benefits																				3.4		3.2
Def. sales inducements net of amortization		(9.4	)		(9.0	)
Total insurance benefits		247.8			252.8			261.6			260.7			6.8			6.6			25.1		29.0
Underwriting, acquisition, insurance and other expenses:
Commissions and other volume related expenses		149.7			141.8			77.2			78.0			13.3			14.0			0.6		0.6
Operating and administrative expenses		56.8			51.7			40.7			38.5			96.4			96.1			25.4		23.0
Restructuring charges		0.6			1.8			0.9			2.7						1.5
Taxes, licenses and fees		3.9			5.2			14.7			12.4			4.4			3.9
Subtotal		211.0			200.5			133.5			131.6			114.2			115.6			25.9		23.5
Deferral of acquisition costs		(107.0	)		(101.9	)		(85.0	)		(83.7	)		(12.2	)		(11.7	)		0.7		(1.5	)
DAC amortization		57.6			41.5			59.8			48.7			8.9			6.1			6.4		12.5
Net DAC (deferral) amortization		(49.4	)		(60.4	)		(25.2	)		(35.0	)		(3.3	)		(5.6	)		7.1		11.0
PVIF amortization		2.4			3.3			15.5			18.5									1.0		3.0
Other intangibles amortization														1.9			2.0
Total underwriting, acquisition, insurance and other expenses		164.0			143.4			123.9			115.1			112.8			111.9			34.0		37.6
Total Benefits and Expenses		411.8			396.2			385.4			375.8			119.6			118.5			59.2		66.6
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		127.0			120.3			94.9			103.4			10.4			14.4			29.7		9.2
Federal income taxes		28.6			26.7			30.3			33.1			3.2			4.3			10.4		3.2
Income Before Cumulative Effect of Accounting Change		98.4			93.6			64.6			70.3			7.1			10.0			19.3		5.9
Cumulative effect of accounting change					(21.8	)					(2.7	)
Net Income	$	98.4		$	71.8		$	64.6		$	67.5		$	7.1		$	10.0		$	19.3	$	5.9
Less:
Restructuring charges		(0.4	)		(1.2	)		(0.6	)		(1.8	)					(1.0	)
Realized gains (losses) on investments		(2.2	)		(3.7	)		(3.5	)		(2.6	)		(0.3	)		(1.5	)				(0.3	)
Gains (losses) on derivatives		0.7			(2.4	)		0.6
Net gain (loss) on reinsurance derivative/trading account securities		1.7			(1.4	)		0.4			(0.2	)
Reserve development on business sold through reinsurance/ amortization of deferred gain
Gain on sale of subsidiaries/ businesses																				9.3
Cumulative effect of accounting change					(21.8	)					(2.7	)
Income from Operations	$	98.6		$	102.2		$	67.7		$	74.8		$	7.4		$	12.5		$	10.0	$	6.2

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.

3/31/2005 PAGE 9

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

For the Quarter Ended March 31	Corporate and Other Operations						Consolidating Adjustments				Consolidated
	Mar 2005			Mar 2004			Mar 2005		Mar 2004		Mar 2005			Mar 2004
Revenue
Life and annuity premiums		—			—						$	70.5		$	72.0
Surrender charges												20.1			20.2
Mortality assessments					(0.1	)						142.3			137.9
Expense assessments					0.1							256.6			225.5
Health premiums		(0.3	)		3.0							(0.1	)		3.6
Investment advisory fees							(24.8	)	(26.5	)		59.4			62.7
Amortization of deferred gain		18.9			17.9							18.9			17.9
Amortization of deferred gain-reserve development		0.3			0.3							0.3			0.3
Other revenue and fees		191.3			150.1		(144.2	)	(120.5	)		74.0			61.4
Net investment income		34.0			32.6		(1.0	)	(0.5	)		659.8			677.5
Realized gains (losses) on investments		(0.1	)		0.3							(8.7	)		(12.0	)
Gains (losses) on derivatives					(0.2	)						1.5			(3.8	)
Gain (loss) on reins. derivative/trading account securities		1.1			(1.9	)						4.4			(4.2	)
Gain on sale of subsidiaries/ businesses												14.2
Total Revenue		245.2			202.2		(170.0	)	(147.5	)		1,313.2			1,259.0
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		(0.4	)		2.7							171.2			179.9
Div accum & div to policyholders												18.4			18.5
Interest credited to policy bal.		32.1			31.2							389.5			390.4
Health policy benefits		(0.4	)		0.3							3.0			3.5
Reserve developments on Reins. business sold
Def. sales inducements net of amortization												(9.4	)		(9.0	)
Total insurance benefits		31.3			34.2							572.6			583.3
Underwriting, acquisition, insurance and other expenses:
Commissions and other volume related expenses		121.7			79.2		(78.9	)	(34.5	)		283.6			278.9
Operating and administrative expenses		83.8			90.6		(90.4	)	(112.5	)		212.6			187.4
Restructuring charges		0.3			5.5							1.9			11.5
Taxes, licenses and fees		9.3			8.0							32.3			29.5
Subtotal		215.1			183.3		(169.3	)	(147.1	)		530.5			507.4
Deferral of acquisition costs												(203.5	)		(198.7	)
DAC amortization		0.1			0.1							132.8			108.8
Net DAC (deferral) amortization		0.1			0.1							(70.7	)		(89.9	)
PVIF amortization												18.9			24.8
Other intangibles amortization												1.9			2.0
Total underwriting, acquisition, insurance and other expenses		215.2			183.4		(169.3	)	(147.1	)		480.6			444.3
Interest		22.9			23.3		(0.7	)	(0.5	)		22.2			22.8
Total Benefits and Expenses		269.4			240.8		(170.0	)	(147.5	)		1,075.4			1,050.4
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		(24.2	)		(38.6	)						237.8			208.6
Federal income taxes		(13.7	)		(13.7	)						58.9			53.7
Income Before Cumulative Effect of Accounting Change		(10.5	)		(24.8	)						178.9			155.0
Cumulative effect of accounting change															(24.5	)
Net Income	($	10.5	)	($	24.8	)					$	178.9		$	130.5
Less:
Restructuring charges		(0.2	)		(3.6	)						(1.3	)		(7.5	)
Realized gains (losses) on investments		(0.1	)		0.2							(6.0	)		(7.9	)
Gains (losses) on derivatives		0.1			(0.1	)						1.4			(2.5	)
Net gain (loss) on reinsurance
derivative/trading account securities		0.7			(1.2	)						2.8			(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												9.3
Cumulative effect of accounting change															(24.5	)
Income from Operations	($	11.3	)	($	20.3	)					$	172.5		$	175.3

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.

3/31/2005 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 and other volume related expenses		1,172.9			1,045.2			836.1			904.6			1,133.1
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
Subtotal		2,592.0			2,319.1			1,869.0			1,960.2			2,155.5
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 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	)		(338.5	)		(126.1	)		(14.8	)
Foreign currency translation adjustment					(16.0	)		56.9			62.1			42.9
Disposition of business					(425.9	)
Other					(21.7	)		(28.4	)					(38.7	)
Balance at end-of-year				$	2,866.7		$	2,939.9		$	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	)								(0.6	)
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.

3/31/2005 PAGE 11

Statement of Consolidated Income

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Revenue
Life and annuity premiums	$	65.3		$	65.9		$	69.1		$	76.6		$	72.0		$	74.7		$	70.7		$	78.0		$	70.5
Surrender charges		18.9			21.3			21.5			23.0			20.2			19.2			18.2			21.1			20.1
Mortality assessments		138.9			135.6			137.9			138.1			137.9			140.1			139.8			140.4			142.3
Expense assessments		177.1			190.9			198.5			215.9			225.5			230.9			234.5			258.5			256.6
Health premiums		3.0			0.1			0.4			0.5			3.6			(0.7	)		(0.1	)		0.8			(0.1	)
Investment advisory fees		44.2			49.4			53.2			58.3			62.7			66.4			67.4			56.0			59.4
Amortization of deferred gain		18.4			18.2			18.3			17.4			17.9			17.9			32.1			19.1			18.9
Amortization of deferred gain-reserve development		(0.2	)		(0.2	)		3.7			0.3			0.3			0.3			0.3			0.3			0.3
Other revenue and fees		70.6			74.5			82.9			81.7			61.4			112.9			96.6			93.4			74.0
Net investment income		654.6			660.2			664.4			659.2			677.5			683.1			669.4			674.1			659.8
Realized gains (losses) on investments		(89.6	)		(1.7	)		9.8			64.8			(12.0	)		(17.8	)		(23.0	)		7.2			(8.7	)
Gains (losses) on derivatives		(1.9	)		(1.0	)		9.1			(8.8	)		(3.8	)		(2.8	)		(4.5	)		(0.4	)		1.5
Gain (loss) on reinsurance
derivative/trading account securities											4.1			(4.2	)		10.3			(5.6	)		(1.4	)		4.4
Mark-to-market adjustment on reclassification from AFS to trading account securities											371.5
Gain (loss) on sale of subsidiaries/ businesses																	24.1			110.3			0.6			14.2
Total Revenue		1,099.3			1,213.2			1,268.8			1,702.6			1,259.0			1,358.7			1,406.1			1,347.5			1,313.2
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits		187.1			155.1			227.1			114.5			179.9			180.0			153.1			167.5			171.2
Div accum & div to policyholders		14.4			17.6			15.9			33.8			18.5			18.6			16.7			23.6			18.4
Interest credited to policy bal.		409.3			406.3			405.6			395.7			390.4			390.4			392.5			397.4			389.5
Health policy benefits		2.3			14.2			(41.5	)		39.1			3.5			4.1			4.2			3.9			3.0
Reserve developments on reins. business sold								32.1
Def. sales inducements net of amortization		(3.3	)		(2.4	)		(2.8	)		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)		(9.4	)
Total insurance benefits		609.7			590.8			636.4			577.5			583.3			583.3			556.1			580.9			572.6
Underwriting, acquisition, insurance and other expenses:
Commissions and other volume related expenses		197.3			198.3			234.6			274.4			278.9			277.7			245.1			331.3			283.6
Operating and administrative expenses		217.8			235.5			209.8			231.4			187.4			252.3			264.6			193.1			212.4
Restructuring charges		5.5			13.5			19.8			15.0			11.5			5.3			4.5			0.1			1.9
Taxes, licenses and fees		30.6			23.1			26.4			27.3			29.5			27.2			25.6			21.3			32.3
Foreign exchange
Subtotal		451.2			470.3			490.6			548.1			507.4			562.6			539.8			545.8			530.2
Deferral of acquisition costs		(144.3	)		(136.9	)		(160.9	)		(197.4	)		(198.7	)		(201.8	)		(206.2	)		(238.1	)		(203.5	)
DAC amortization		99.2			62.8			65.9			90.1			108.8			108.0			120.8			153.2			132.8
DAC deferral net of amortization		(45.1	)		(74.2	)		(95.0	)		(107.3	)		(89.9	)		(93.9	)		(85.4	)		(84.9	)		(70.7	)
PVIF amortization		22.7			13.6			29.6			14.4			24.8			20.5			50.8			24.2			18.9
Other intangibles amortization		2.0			2.0			2.0			2.0			2.0			2.0			2.0			3.8			1.9
Total underwriting, acquisition, insurance and other expenses		430.8			411.7			427.1			457.1			444.3			491.2			507.1			488.9			480.4
Interest		23.3			23.0			21.0			22.2			22.8			24.7			24.4			22.2			22.4
Loss on early retirement of debt								5.6															6.3
Total Benefits and Expenses		1,063.9			1,025.5			1,090.2			1,056.8			1,050.4			1,099.1			1,087.7			1,098.4			1,075.4
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		35.4			187.7			178.7			645.7			208.6			259.6			318.4			249.1			237.8
Federal income taxes		(6.1	)		45.0			45.4			196.2			53.7			72.6			118.7			59.2			58.9
Income Before Cumulative Effect of Accounting Change		41.6			142.7			133.3			449.6			155.0			187.0			199.7			189.9			178.9
Cumulative effect of accounting change											(255.2	)		(24.5	)											—
Net Income	$	41.6		$	142.7		$	133.3		$	194.3		$	130.5		$	187.0		$	199.7		$	189.9		$	178.9
Less:
Restructuring charges		(3.6	)		(8.8	)		(12.9	)		(9.8	)		(7.5	)		(3.5	)		(2.9	)					(1.3	)
Realized gains (losses) on investments		(58.2	)		(1.1	)		6.4			42.0			(7.9	)		(11.6	)		(14.5	)		3.9			(6.0	)
Gains (losses) on derivatives		(1.2	)		(0.6	)		5.9			(5.7	)		(2.5	)		(1.8	)		(3.4	)		0.3			1.4
Net gain on reinsurance derivative/trading account securities											2.7			(2.7	)		6.7			(3.7	)		(0.8	)		2.8
Reserve development on business sold through reinsurance/ amortization of deferred gain		(0.1	)		(0.1	)		(18.5	)		0.2			0.2			0.2			0.2			0.2			0.2
Gain (loss) on sale of subsidiaries/ businesses																	15.6			45.9			0.4			9.3
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	$	104.8		$	153.3		$	156.0		$	178.7		$	175.3		$	181.4		$	178.2		$	189.9		$	172.5
Roll Forward of Deferred Acquisition Costs
Balance at beginning-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
Deferral		144.3			136.9			160.9			197.4			198.7			201.8			206.2			238.1			203.5
Amortization		(99.2	)		(62.8	)		(65.9	)		(90.1	)		(108.8	)		(108.0	)		(120.8	)		(153.2	)		(132.8	)
Included in Total Benefits and Expenses		45.1			74.2			95.0			107.3			89.9			93.9			85.4			84.9			70.7
Adjustment related to realized (gains) losses on available-for-sale securities		30.0			8.3			(60.6	)		(27.9	)		(17.6	)		(6.0	)		(6.2	)		(15.8	)		(11.7	)
Adjustment related to unrealized (gains) losses on available-for-sale securities		(119.4	)		(334.0	)		182.2			145.2			(201.1	)		442.7			(271.2	)		14.7			215.7
Foreign currency translation adjustment		(10.8	)		27.2			2.8			42.8			19.9			(8.4	)		(2.5	)		33.8			(7.0	)
Other														(39.2	)		0.2			(0.2	)		0.5
Balance at end-of-period	$	2,884.5		$	2,660.3		$	2,879.7		$	3,147.1		$	2,999.0		$	3,521.4		$	3,326.8		$	3,445.0		$	3,712.7
Roll Forward of Present Value of In-Force
Balance at beginning-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
Amortization		(22.7	)		(13.6	)		(29.6	)		(14.4	)		(24.8	)		(20.5	)		(50.8	)		(24.2	)		(18.9	)
Foreign currency translation adjustment		(4.3	)		11.2			1.3			18.4			8.9			(3.7	)		(1.1	)		15.6			(3.3	)
Other														(0.6	)
Balance at end-of-period	$	1,223.1		$	1,220.8		$	1,192.5		$	1,196.5		$	1,180.0		$	1,155.8		$	1,103.9		$	1,095.2		$	1,073.1

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.

3/31/2005 PAGE 12

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement						Life Insurance					Investment Management				Lincoln UK
	Mar 2005			Dec 2004			Mar 2005			Dec 2004		Mar 2005		Dec 2004		Mar 2005		Dec 2004
ASSETS
Investments
Corporate bonds	$	13,316.3		$	13,504.1		$	8,928.3		$	8,887.9	$	526.7	$	533.3	$	728.9	$	739.2
U.S. government bonds		11.6			11.9			66.6			63.8
Foreign government bonds		314.5			304.5			174.5			184.7		6.6		6.8		325.9		337.6
Asset/mortgage backed securities		3,410.1			3,332.3			1,879.0			1,739.5		99.6		99.6
State and municipal bonds		89.3			95.3			49.0			52.4		1.2		1.2
Preferred stocks-redeemable		37.8			37.6			25.9			25.7
Common stocks		0.3			0.2			0.2			0.2						42.9		46.4
Preferred stocks-equity		42.3			43.1			14.2			14.8		2.6		2.7
Total AFS Securities		17,222.3			17,329.1			11,137.7			10,968.9		636.7		643.7		1,097.7		1,123.3
Trading Securities		1,148.3			1,169.6
Mortgage loans		1,883.4			1,936.3			1,563.0			1,554.2		58.8		62.6		0.1		0.1
Real estate																	0.2		0.2
Policy loans		433.7			438.7			1,421.2			1,426.0						5.5		5.9
Allocated investments		3,348.1			3,891.1			1,279.4			1,442.7		133.1		139.9
Other long-term investments		74.6			61.8			5.6			9.1
Total Investments		24,110.3			24,826.6			15,407.0			15,400.9		828.5		846.3		1,103.6		1,129.5
Notes receivable from LNC		231.2			107.8			114.4			130.7		8.2		44.4
Cash and invested cash		(94.3	)		(73.9	)		(11.7	)		18.0		42.8		51.1		301.7		282.9
Property and equipment		11.2			10.8			1.4			1.6		32.6		33.3		19.6		20.1
Premium and fees receivable		0.8			0.2			13.3			25.8		51.1		45.4
Accrued investment income		247.4			243.3			192.5			173.8		9.2		8.6		28.0		22.1
Assets held in separate accounts		41,149.1			40,990.1			2,129.7			2,131.1		4,935.3		4,897.2		7,173.1		7,186.2
Amount recoverable from reinsurers		1,005.4			1,030.7			1,209.7			1,183.4						66.9
Deferred acquisition costs		1,214.0			1,040.4			1,786.7			1,691.9		133.8		120.4		576.9		590.9
Other intangible assets		94.9			85.5								19.0		20.9
Present value of in-force		90.3			92.6			710.9			726.5						271.9		276.1
Goodwill		64.1			64.1			855.1			855.1		260.8		260.8		15.7		15.9
Other		131.9			134.4			452.9			466.4		97.5		63.1		45.8		60.2
Total Assets	$	68,256.2		$	68,552.7		$	22,862.0		$	22,805.0	$	6,418.8	$	6,391.5	$	9,603.2	$	9,583.9

	Corporate and Other Operations						Consolidating Adjustments						Consolidated
	Mar 2005			Dec 2004			Mar 2005			Dec 2004			Mar 2005		Dec 2004
ASSETS
Investments
Corporate bonds	$	2,805.7		$	3,224.5								$	26,305.9	$	26,889.0
U.S. government bonds		87.4			87.4									165.7		163.0
Foreign government bonds		475.1			452.3									1,296.7		1,285.9
Asset/mortgage backed securities		805.1			919.0									6,193.8		6,090.5
State and municipal bonds		16.9			17.1									156.3		166.0
Preferred stocks-redeemable		42.8			42.8									106.5		106.1
Common stocks		21.9			22.9									65.2		69.8
Preferred stocks-equity		30.3			30.7									89.6		91.3
Total AFS Securities		4,285.2			4,796.7									34,379.6		34,861.7
Trading securities		2,058.2			2,067.8									3,206.5		3,237.4
Mortgage loans		300.5			303.6									3,805.7		3,856.9
Real estate		213.1			191.1									213.4		191.4
Policy loans														1,860.5		1,870.6
Allocated investments		(4,760.6	)		(5,473.7	)
Other long-term investments		436.3			418.4									516.5		489.3
Total Investments		2,532.8			2,304.0									43,982.2		44,507.3
Investments In Consolidated Subs		5,690.1			5,545.6			(5,690.1	)		(5,545.6	)
Notes receivable from LNC		(221.0	)		(152.9	)		(132.7	)		(130.0	)
Cash and invested cash		1,260.6			1,383.6									1,499.1		1,661.7
Property and equipment		139.1			141.3									203.9		207.1
Premium and fees receivable		234.1			161.5									299.3		232.9
Accrued investment income		80.5			77.4									557.6		525.1
Assets held in separate accounts														55,387.2		55,204.6
Federal income tax recoverable								5.0						5.0
Amount recoverable from reinsurers		5,054.5			4,853.5									7,336.5		7,067.5
Deferred acquisition costs		1.3			1.4									3,712.7		3,445.0
Other intangible assets														113.8		106.4
Present value of in-force														1,073.1		1,095.2
Goodwill														1,195.7		1,195.9
Other		268.4			257.5			(10.4	)		(11.0	)		986.1		970.5
Total Assets	$	15,040.3		$	14,572.8		$	(5,828.2	)	$	(5,686.7	)	$	116,352.2	$	116,219.3

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.

3/31/2005 PAGE 13

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement				Life Insurance				Investment Management				Lincoln UK
	Mar 2005		Dec 2004		Mar 2005		Dec 2004		Mar 2005		Dec 2004		Mar 2005			Dec 2004
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	$	2,264.0	$	2,268.9	$	15,531.5	$	15,411.3					$	1,463.7		$	1,442.0
Health reserves						0.4		0.3						48.1			49.8
Unpaid claims - life and health		35.2		38.4		154.3		158.0						53.5			51.9
Unearned premiums
Premium deposit funds		21,145.2		21,336.8		18.1		17.1		720.6		716.0		27.7			29.7
Participating policyholders’ funds						128.1		145.3
Other policyholders’ funds						708.2		706.1
Liability related to separate accounts		41,149.1		40,990.1		2,129.7		2,131.1		4,935.3		4,897.2		7,173.1			7,186.2
Total Insurance and Inv Contract Liabilities		64,593.5		64,634.1		18,670.2		18,569.3		5,656.0		5,613.2		8,766.1			8,759.7
Federal income taxes		353.0		387.0		131.6		208.3		17.8		6.2		63.8			58.6
Notes payable to LNC		52.9		51.4
Embedded derivative - modco		53.8		80.5		1.9		2.5
Other liabilities		179.4		157.1		498.4		520.8		201.5		227.5		220.5			215.0
Deferred gain on indemnity reinsurance
Total Liabilities		65,232.6		65,310.1		19,302.1		19,300.9		5,875.2		5,846.9		9,050.4			9,033.4
Net unrealized gains (losses) on securities		340.3		474.8		175.2		244.2		1.9		3.1		26.1			36.2
Gains (losses) on derivatives		1.7		4.8		6.4		7.7
Foreign currency translation adjustment														128.5			136.4
Other shareholders’ equity		2,681.6		2,762.9		3,378.3		3,252.3		541.2		541.5		446.2			426.6
Minimum pension liability adjustment										0.5				(48.1	)		(48.6	)
Shareholders’ Equity		3,023.6		3,242.5		3,559.9		3,504.1		543.6		544.6		552.8			550.6
Total Liabilities and S/Hs’ Equity	$	68,256.2	$	68,552.7	$	22,862.0	$	22,805.0	$	6,418.8	$	6,391.5	$	9,603.2		$	9,583.9

	Corporate and Other Operations						Consolidating Adjustments						Consolidated
	Mar 2005			Dec 2004			Mar 2005			Dec 2004			Mar 2005			Dec 2004
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	$	1,401.0		$	1,259.8								$	20,660.2		$	20,382.0
Health reserves		2,789.6			2,809.9									2,838.1			2,860.1
Unpaid claims - life and health		921.8			832.0									1,164.9			1,080.3
Unearned premiums		3.1			5.7									3.1			5.8
Premium deposit funds		114.4			115.6									22,026.0			22,215.1
Participating policyholders’ funds														128.1			145.3
Other policyholders’ funds		7.9			7.9									716.1			714.0
Liability related to separate accounts														55,387.2			55,204.6
Total Insurance and Inv Contract Liabilities		5,237.8			5,030.9									102,923.6			102,607.1
Federal income taxes		(571.8	)		(583.3	)		5.6			0.8						77.6
Short-term debt		194.0			214.4									194.0			214.4
Long-term debt		1,046.6			1,048.6									1,046.6			1,048.6
Junior subordinated debentures issued to affiliated trusts		336.6			339.8									336.6			339.8
Notes payable to LNC		80.1			78.6			(133.1	)		(130.0	)
Embedded derivative - modco		257.8			292.3									313.5			375.3
Other liabilities		3,511.7			3,358.4			(10.1	)		(11.0	)		4,601.3			4,467.8
Deferred gain on indemnity reinsurance		893.7			913.0									893.7			913.0
Total Liabilities		10,986.6			10,692.7			(137.6	)		(140.3	)		110,309.3			110,043.7
Net unrealized gains (losses) on securities		39.6			64.4			(0.4	)					582.9			822.9
Gains (losses) on derivatives		(0.4	)		1.6									7.7			14.0
Foreign currency translation adjustment		10.4			10.4			7.5			7.5			146.5			154.3
Other shareholders’ equity		4,016.4			3,815.5			(5,697.8	)		(5,553.9	)		5,365.8			5,244.9
Minimum pension liability adjustment		(12.3	)		(11.9	)								(60.0	)		(60.5	)
Shareholders’ Equity		4,053.7			3,880.1			(5,690.7	)		(5,546.4	)		6,042.9			6,175.6
Total Liabilities and S/Hs’ Equity	$	15,040.3		$	14,572.8		$	(5,828.2	)	$	(5,686.7	)	$	116,352.2		$	116,219.3

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

or keep it accurate after such date.

3/31/2005 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										3,120.1			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
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			106.4
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			970.5
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			1,048.6
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		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 dated document. It may not be accurate after such date and LNC does not undertake to update

or keep it accurate after such date.

3/31/2005 PAGE 15

Quarterly Balance Sheet

Unaudited [Millions of Dollars, except Common Share Data]

	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
ASSETS
Investments
Corporate bonds	$	26,936.1		$	28,419.3		$	28,286.3		$	25,868.5		$	26,209.2		$	25,638.1		$	26,750.0		$	26,889.0		$	26,305.9
U.S. government bonds		537.0			561.9			522.5			225.8			234.2			156.3			162.9			163.0			165.7
Foreign government bonds		1,206.6			1,349.4			1,352.9			1,194.6			1,321.0			1,223.8			1,233.8			1,285.9			1,296.7
Mortgage backed securities		4,960.1			4,754.9			4,992.7			5,195.6			5,617.0			5,524.1			5,793.4			6,090.5			6,193.8
State and municipal bonds		134.9			150.4			164.0			152.8			164.1			164.8			168.8			166.0			156.3
Preferred stocks - redeemable		112.0			118.5			65.6			132.2			120.9			100.7			113.9			106.1			106.5
Common stocks		145.0			146.6			131.8			98.4			97.4			92.3			86.5			69.8			65.2
Preferred stocks-equity		104.5			110.7			111.2			100.7			100.2			90.5			91.6			91.3			89.6
Total AFS Securities		34,136.2			35,611.8			35,626.9			32,968.6			33,864.1			32,990.5			34,400.8			34,861.7			34,379.6
Trading securities											3,120.1			3,191.3			3,087.9			3,223.6			3,237.4			3,206.5
Mortgage loans		4,235.5			4,314.3			4,151.5			4,195.0			3,988.5			3,865.4			3,831.3			3,856.9			3,805.7
Real estate		242.0			240.3			249.8			112.9			104.8			104.3			135.1			191.4			213.4
Policy loans		1,928.8			1,919.6			1,910.5			1,924.4			1,876.7			1,871.3			1,871.9			1,870.6			1,860.5
Other long-term investments		465.7			505.6			484.7			456.7			476.3			442.9			463.8			489.3			516.5
Total Investments		41,008.4			42,591.6			42,423.3			42,777.6			43,501.7			42,362.5			43,926.6			44,507.3			43,982.2
Cash and invested cash		1,635.5			1,945.8			1,960.6			1,711.2			2,255.5			2,213.7			1,996.0			1,661.7			1,499.1
Property and equipment		239.4			239.1			237.3			235.2			229.5			225.5			217.7			207.1			203.9
Premiums and fees receivable		194.0			396.0			306.5			352.1			337.5			265.2			248.8			232.9			299.3
Accrued investment income		567.2			555.1			560.2			522.7			547.9			543.7			573.2			525.1			557.6
Assets held in separate accounts		34,775.2			39,942.8			41,283.4			46,565.2			48,557.9			49,343.7			49,657.9			55,204.6			55,387.2
Federal income taxes recoverable		89.1			—						45.9						204.0									5.0
Amount recoverable from reinsurers		7,323.5			7,377.1			7,537.9			7,839.2			7,865.7			7,138.7			7,031.9			7,067.5			7,336.5
Deferred acquisition costs		2,884.5			2,660.3			2,879.7			3,147.1			2,999.0			3,521.4			3,326.8			3,445.0			3,712.7
Other intangible assets		74.2			74.7			75.5			79.1			85.8			93.6			98.7			106.4			113.8
Present value of in-force		1,223.1			1,220.8			1,192.5			1,196.5			1,180.0			1,155.8			1,103.9			1,095.2			1,073.1
Goodwill		1,233.0			1,233.6			1,233.7			1,234.7			1,235.2			1,235.0			1,195.0			1,195.9			1,195.7
Other		1,250.6			1,295.9			1,134.9			1,038.3			1,074.2			1,015.1			1,000.7			970.5			986.1
Total Assets	$	92,497.6		$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	$	20,025.6		$	20,194.5		$	20,459.2		$	20,718.3		$	20,882.5		$	20,324.0		$	20,213.0		$	20,382.0		$	20,660.2
Health reserves		2,689.9			2,703.3			2,657.9			2,831.5			2,822.1			2,841.1			2,797.1			2,860.1			2,838.1
Unpaid claims - life and health		763.1			997.1			1,041.2			1,058.4			1,076.8			1,083.5			1,067.0			1,080.3			1,164.9
Unearned premiums		141.1			24.0			26.9			104.5			104.3			9.3			7.5			5.8			3.1
Premium deposit funds		21,070.5			21,437.7			21,680.2			21,769.3			21,827.4			22,017.0			22,218.9			22,215.1			22,026.0
Participating policyholders’ funds		166.3			193.8			179.2			155.1			171.1			165.9			165.2			145.3			128.1
Other policyholders’ funds		607.1			621.8			671.5			680.9			688.1			698.5			703.4			714.0			716.1
Liab related to separate accounts		34,775.2			39,942.8			41,283.4			46,565.2			48,557.9			49,343.7			49,657.9			55,204.6			55,387.2
Total Ins and Inv Contr Liabilities		80,238.8			86,115.0			87,999.6			93,883.2			96,130.3			96,483.1			96,830.1			102,607.1			102,923.6
Federal income taxes					72.0			37.1						108.1						83.8			77.6
Short-term debt		125.4			83.4			76.5			44.0			38.0			30.0			0.0			214.4			194.0
Long-term debt		1,118.6			1,121.4			1,118.5			1,117.5			1,317.7			1,313.7			1,315.4			1,048.6			1,046.6
Junior subordinated debentures issued to affiliated trusts		390.8			397.1			333.6			341.3			344.7			337.6			341.1			339.8			336.6
Embedded derivative - modco											352.3			440.6			252.6			365.5			375.3			313.5
Other liabilities		4,215.0			4,989.0			4,724.8			4,270.1			4,440.4			4,493.6			4,537.9			4,467.8			4,601.3
Deferred gain on indemnity reinsurance		959.0			938.9			949.0			924.8			906.6			888.4			932.4			913.0			893.7
Total Liabilities		87,047.6			93,716.9			95,239.1			100,933.2			103,726.4			103,799.0			104,406.3			110,043.7			110,309.3
Unrealized gains on investments		872.0			1,117.8			804.5			793.1			1,038.0			412.0			780.1			822.9			582.9
Gains - derivatives		25.0			28.8			23.2			22.1			29.0			18.5			19.8			14.0			7.7
Foreign currency		39.8			68.4			67.0			109.0			128.9			120.8			116.9			154.3			146.5
Minimum pension liability		(97.2	)		(98.8	)		(99.0	)		(55.1	)		(56.6	)		(56.0	)		(55.8	)		(60.5	)		(60.0	)
Shareholders’ equity - other		4,610.5			4,699.8			4,790.6			4,942.6			5,004.2			5,023.6			5,109.8			5,244.9			5,365.8
Total Shareholders’ Equity		5,450.0			5,815.9			5,586.4			5,811.6			6,143.5			5,518.9			5,970.8			6,175.6			6,042.9
Total Liabilities and Shareholders’ Equity	$	92,497.6		$	99,532.8		$	100,825.5		$	106,744.9		$	109,869.9		$	109,317.9		$	110,377.1		$	116,219.3		$	116,352.2
Shareholders’ Equity Per Share
Book Value, Excluding AOCI	$	25.94		$	26.41		$	26.87		$	27.69		$	27.99		$	28.51		$	29.23		$	30.17		$	30.85
Common shares outstanding (in millions)		177.7			178.0			178.3			178.5			178.8			176.2			174.8			173.8			173.9

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

or keep it accurate after such date.

3/31/2005 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 and other volume related expenses		378.9			386.0			385.4			386.0			586.7
Operating and administrative expenses		206.6			231.8			231.3			226.2			231.8
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			838.6
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			556.6			610.7
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.

3/31/2005 PAGE 17

Lincoln Retirement

Income Statements & Operational Data

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Revenue
Premiums	$	5.5		$	3.0		$	7.8		$	5.6		$	6.5		$	7.4		$	9.2		$	9.9		$	10.5
Surrender charges		6.9			8.5			7.4			6.2			5.9			6.0			6.7			6.4			7.4
Expense assessments		97.6			104.3			115.2			124.8			137.3			140.9			145.2			157.1			164.6
Other revenue and fees		(1.4	)		1.3			8.3			0.5			(0.8	)		(2.1	)		(1.3	)		(2.0	)		(1.4	)
Net investment income		367.0			369.8			377.4			369.5			379.0			382.3			366.5			368.0			357.4
Realized gains (losses) on investments		(76.8	)		0.9			18.6			44.7			(5.7	)		(14.5	)		(21.2	)		9.1			(3.2	)
Gains (losses) on derivatives		(1.0	)		(1.5	)		1.7			(5.8	)		(3.7	)		(2.8	)		(3.1	)		(1.9	)		0.9
Gain (loss) on reinsurance derivative/trading account securities											2.8			(2.1	)		7.4			(3.0	)		(1.4	)		2.6
Mark-to-market adjustment on reclassification from AFS to trading account securities											86.0
Total Revenue		397.8			486.4			536.3			634.2			516.5			524.5			499.0			545.1			538.8
Benefits and Expenses
Benefits paid or provided:
Benefits		65.0			34.8			44.6			37.1			54.1			52.0			40.5			43.4			52.4
Interest credited to policy balances		220.1			217.1			216.5			214.0			207.8			208.0			209.9			210.4			204.7
Def. sales inducements net of amortization		(3.3	)		(2.4	)		(2.8	)		(5.6	)		(9.0	)		(9.8	)		(10.4	)		(11.5	)		(9.4	)
Total insurance benefits		281.8			249.5			258.2			245.5			252.8			250.2			240.0			242.2			247.8
Underwriting, acquisition, insurance and other expenses:
Commissions and other volume related expenses		80.7			88.9			96.8			119.6			141.8			146.9			141.3			156.7			149.7
Operating and administrative expenses		54.0			56.6			57.0			58.5			51.7			58.1			62.5			59.6			56.8
Restructuring charges					6.2			8.4			5.5			1.8			1.8			2.6			(0.7	)		0.6
Taxes, licenses and fees		5.7			4.3			3.7			4.0			5.2			3.7			3.2			2.5			3.9
Subtotal		140.4			156.0			166.0			187.7			200.5			210.4			209.5			218.1			211.0
Deferral of acquisition costs		(43.6	)		(47.4	)		(58.9	)		(73.5	)		(101.9	)		(105.5	)		(101.5	)		(112.9	)		(107.0	)
DAC amortization		30.1			27.2			31.6			31.5			41.5			44.4			24.2			63.9			57.6
DAC deferral net of amortization		(13.5	)		(20.2	)		(27.2	)		(42.0	)		(60.4	)		(61.2	)		(77.3	)		(49.0	)		(49.4	)
PVIF amortization		2.3			2.1			3.3			1.8			3.3			2.9			11.5			2.3			2.4
Total underwriting, acquisition, insurance and other expenses		129.2			137.9			142.1			147.4			143.4			152.2			143.7			171.4			164.0
Total Benefits and Expenses		411.0			387.4			400.3			392.9			396.2			402.4			383.7			413.6			411.8
Income (Loss) Before Federal Income Tax and Cumulative Effect of Accounting Change		(13.3	)		99.0			135.9			241.4			120.3			122.1			115.3			131.5			127.0
Federal income taxes		(20.1	)		17.3			33.9			67.9			26.7			28.0			24.5			26.9			28.6
Income Before Cumulative Effect of Accounting Change		6.9			81.7			102.0			173.5			93.6			94.2			90.8			104.6			98.4
Cumulative effect of accounting change											(63.6	)		(21.8	)
Net Income	$	6.9		$	81.7		$	102.0		$	109.9		$	71.8		$	94.2		$	90.8		$	104.6		$	98.4
Less:
Restructuring charges					(4.0	)		(5.5	)		(3.6	)		(1.2	)		(1.2	)		(1.7	)		0.5			(0.4	)
Realized gains (losses) on investments		(50.3	)		1.0			12.1			29.1			(3.7	)		(9.4	)		(13.6	)		5.7			(2.2	)
Gains (losses) on derivatives		(0.2	)		(1.4	)		1.1			(3.8	)		(2.4	)		(1.8	)		(2.0	)		(1.2	)		0.7
Net gain (loss) on reinsurance derivative/trading account securities											1.8			(1.4	)		4.8			(2.0	)		(0.8	)		1.7
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	$	57.4		$	86.1		$	94.3		$	94.1		$	102.2		$	101.8		$	110.2		$	100.5		$	98.6
Effective tax rate on Income from Operations		11.0	%		18.6	%		24.0	%		21.1	%		23.5	%		24.0	%		24.1	%		19.7	%		22.6	%
Revenue	$	397.8		$	486.4		$	536.3		$	634.2		$	516.5		$	524.5		$	499.0		$	545.1		$	538.8
Less:
Realized gains (losses) on investments		(76.8	)		0.9			18.6			44.7			(5.7	)		(14.5	)		(21.2	)		9.1			(3.2	)
Gains (losses) on derivatives		(1.0	)		(1.5	)		1.7			(5.8	)		(3.7	)		(2.8	)		(3.1	)		(1.9	)		0.9
Gain (loss) on reinsurance derivative/trading account securities											2.8			(2.1	)		7.4			(3.0	)		(1.4	)		2.6
Mark-to-market adjustment on reclassification from AFS to trading account securities											86.0
Operating Revenue	$	475.5		$	487.0		$	516.0		$	506.6		$	528.0		$	534.4		$	526.2		$	539.4		$	538.5
Average capital	$	2,526.7		$	2,262.3		$	2,386.7		$	2,425.4		$	2,532.6		$	2,575.1		$	2,560.5		$	2,688.4		$	2,661.3
Net Income return on average capital		1.1	%		14.4	%		17.1	%		18.1	%		11.3	%		14.6	%		14.2	%		15.6	%		14.8	%
Income from operations return on average capital		9.1	%		15.2	%		15.8	%		15.5	%		16.1	%		15.8	%		17.2	%		14.9	%		14.8	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	$	824.7		$	786.2		$	616.3		$	721.7		$	854.6		$	748.7		$	1,056.2		$	984.6		$	1,040.4
Deferral		43.6			47.4			58.9			73.5			101.9			105.5			101.5			112.9			107.0
Amortization		(30.1	)		(27.2	)		(31.6	)		(31.5	)		(41.5	)		(44.4	)		(24.2	)		(63.9	)		(57.6	)
Included in Total Benefits and Expenses		13.5			20.2			27.2			42.0			60.4			61.2			77.3			49.0			49.4
Adjustment related to realized (gains) losses on available-for-sale securities		21.8			7.9			(31.8	)		(16.7	)		(10.2	)		(6.0	)		(1.8	)		(10.3	)		(10.1	)
Adjustment related to unrealized (gains) losses on available-for-sale securities		(73.9	)		(197.9	)		109.9			107.6			(113.9	)		252.4			(147.2	)		17.0			134.2
Other
Cumulative effect of accounting change														(42.3	)
Balance at end-of-quarter	$	786.2		$	616.3		$	721.7		$	854.6		$	748.7		$	1,056.2		$	984.6		$	1,040.4		$	1,214.0
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	$	122.7		$	120.4		$	118.3		$	115.0		$	113.2		$	109.4		$	106.4		$	94.9		$	92.6
Amortization		(2.3	)		(2.1	)		(3.3	)		(1.8	)		(3.3	)		(2.9	)		(11.5	)		(2.3	)		(2.4	)
Cumulative effect of accounting change														(0.6	)
Balance at end-of-quarter	$	120.4		$	118.3		$	115.0		$	113.2		$	109.4		$	106.4		$	94.9		$	92.6		$	90.3

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.

3/31/2005 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			4.898
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.
**     Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.
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.

3/31/2005 PAGE 19

Lincoln Retirement

Annuity Account Value Rollforward

Unaudited [Billions of Dollars]

	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Fixed Annuities-Bal Beg-of-Quarter	$	18.179		$	18.680		$	19.563		$	20.088		$	20.612		$	20.864		$	21.132		$	21.221		$	21.281		$	21.476		$	21.633		$	21.565
Gross Deposits		0.853			1.091			0.822			0.776			0.778			0.778			0.792			0.817			0.779			0.783			0.732			0.740
Withdrawals (incl charges) & deaths		(0.551	)		(0.825	)		(0.531	)		(0.524	)		(0.501	)		(0.492	)		(0.557	)		(0.571	)		(0.515	)		(0.554	)		(0.587	)		(0.778	)
Net flows		0.302			0.265			0.291			0.253			0.277			0.286			0.235			0.246			0.264			0.228			0.145			(0.038	)
Transfer from (to) var annuities		(0.032	)		0.379			(0.007	)		0.046			(0.250	)		(0.243	)		(0.369	)		(0.399	)		(0.280	)		(0.287	)		(0.429	)		(0.359	)
Interest credited		0.231			0.238			0.240			0.226			0.226			0.225			0.223			0.213			0.211			0.215			0.216			0.207
Fixed Annuities-Gross		18.680			19.563			20.088			20.612			20.864			21.132			21.221			21.281			21.476			21.633			21.565			21.375
Reinsurance Ceded		(1.770	)		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)
Fixed Annuities-Bal End-of-Quarter	$	16.910		$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084
Fixed Annuities Incremental Deposits *	$	0.839		$	1.072		$	0.808		$	0.753		$	0.768		$	0.767		$	0.779		$	0.795		$	0.767		$	0.767		$	0.718		$	0.719
Variable Annuities-Bal Beg-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
Gross Deposits		0.787			0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899
Withdrawals (incl charges) & deaths		(0.866	)		(0.800	)		(0.763	)		(0.806	)		(0.762	)		(0.809	)		(0.786	)		(0.941	)		(0.988	)		(0.936	)		(1.006	)		(1.085	)
Net flows		(0.079	)		(0.197	)		(0.217	)		(0.158	)		(0.178	)		(0.009	)		0.300			0.465			0.436			0.488			0.649			0.814
Transfer from (to) fixed annuities		0.032			(0.388	)		0.000			(0.048	)		0.249			0.243			0.365			0.400			0.266			0.262			0.427			0.366
Invest inc & change in mkt value		(3.897	)		(4.679	)		1.713			(0.759	)		3.912			1.018			3.412			0.968			0.076			(0.450	)		3.448			(0.729	)
Var Annuities-Bal End-of-Quarter	$	31.206		$	25.942		$	27.438		$	26.474		$	30.457		$	31.709		$	35.786		$	37.619		$	38.398		$	38.698		$	43.223		$	43.673
Variable Annuities Incremental Deposits *	$	0.744		$	0.573		$	0.528		$	0.629		$	0.560		$	0.776		$	1.053		$	1.370		$	1.381		$	1.380		$	1.624		$	1.864
Total Annuities - Bal Beg-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
Gross Deposits		1.640			1.694			1.368			1.424			1.363			1.578			1.879			2.223			2.203			2.207			2.387			2.639
Withdrawals (incl charges) & deaths		(1.417	)		(1.626	)		(1.294	)		(1.329	)		(1.263	)		(1.301	)		(1.343	)		(1.512	)		(1.503	)		(1.490	)		(1.593	)		(1.863	)
Net flows		0.223			0.068			0.074			0.095			0.099			0.277			0.536			0.712			0.701			0.716			0.794			0.776
Transfers		0.000			(0.009	)		(0.006	)		(0.002	)		(0.002	)		0.001			(0.004	)		0.001			(0.014	)		(0.024	)		(0.002	)		0.006
Interest credited & change in mkt value		(3.666	)		(4.441	)		1.953			(0.532	)		4.137			1.243			3.634			1.181			0.288			(0.235	)		3.665			(0.522	)
Total Gross Annuities - Bal End-of-Quarter		49.887			45.505			47.525			47.086			51.321			52.842			57.007			58.900			59.875			60.331			64.788			65.048
Reinsurance Ceded		(1.770	)		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)
Total Annuities (Net of Ceded) - Bal End-of-Qtr	$	48.117		$	43.592		$	45.523		$	45.011		$	49.152		$	50.577		$	54.654		$	56.549		$	57.542		$	58.016		$	62.491		$	62.757
Total Annuities Incremental Deposits *		1.583			1.645			1.336			1.382			1.328			1.543			1.833			2.165			2.148			2.146			2.342			2.582
Var Ann Under Agree - Included above		1.175			1.083			1.186			1.355			1.637			1.820			2.166			2.463			2.618			2.692			3.127			3.407
*      Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
**    Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	$	0.430		$	0.559		$	0.351		$	0.368		$	0.356		$	0.344		$	0.347		$	0.365		$	0.249		$	0.220		$	0.192		$	0.198
Withdrawals		(0.267	)		(0.516	)		(0.228	)		(0.208	)		(0.235	)		(0.238	)		(0.253	)		(0.269	)		(0.261	)		(0.286	)		(0.302	)		(0.454	)
Net Flows	$	0.163		$	0.042		$	0.123		$	0.160		$	0.121		$	0.106		$	0.094		$	0.096		($	0.013	)	($	0.066	)	($	0.110	)	($	0.256	)
Gross Fixed Account Values		10.048		$	10.219		$	10.475		$	10.759		$	11.001		$	11.226		$	11.440		$	11.649		$	11.755		$	11.811		$	11.820		$	11.684
Reinsurance Ceded		(1.770	)		(1.913	)		(2.003	)		(2.075	)		(2.169	)		(2.264	)		(2.353	)		(2.350	)		(2.333	)		(2.316	)		(2.297	)		(2.291	)
Net Fixed Account Values	$	8.278		$	8.306		$	8.473		$	8.684		$	8.832		$	8.962		$	9.087		$	9.299		$	9.422		$	9.495		$	9.522		$	9.392
Variable Annuities - including fixed portion of variable contracts**
Deposits	$	1.210		$	1.135		$	1.017		$	1.056		$	1.007		$	1.234		$	1.532		$	1.859		$	1.954		$	1.986		$	2.195		$	2.441
Withdrawals		(1.150	)		(1.109	)		(1.066	)		(1.121	)		(1.028	)		(1.063	)		(1.090	)		(1.243	)		(1.241	)		(1.204	)		(1.291	)		(1.409	)
Net Flows	$	0.060		$	0.026		($	0.049	)	($	0.065	)	($	0.022	)	$	0.172		$	0.442		$	0.616		$	0.713		$	0.782		$	0.904		$	1.031
Variable Account Values	$	39.839		$	35.286		$	37.050		$	36.327		$	40.320		$	41.616		$	45.567		$	47.251		$	48.120		$	48.521		$	52.969		$	53.365
Fixed Portion of Variable Contracts
Deposits	$	0.423		$	0.532		$	0.472		$	0.408		$	0.422		$	0.434		$	0.445		$	0.452		$	0.530		$	0.563		$	0.540		$	0.541
Withdrawals		(0.284	)		(0.309	)		(0.303	)		(0.316	)		(0.266	)		(0.254	)		(0.304	)		(0.302	)		(0.253	)		(0.268	)		(0.284	)		(0.324	)
Net Flows	$	0.139		$	0.223		$	0.169		$	0.093		$	0.156		$	0.180		$	0.141		$	0.151		$	0.277		$	0.294		$	0.255		$	0.218
Fixed Portion of Variable Account Values	$	8.632		$	9.344		$	9.612		$	9.853		$	9.864		$	9.906		$	9.781		$	9.631		$	9.721		$	9.822		$	9.746		$	9.691
Average Daily Variable Account Values	$	33.502		$	28.023		$	27.431		$	26.907		$	29.195		$	31.490		$	33.897		$	37.160		$	37.565		$	37.675		$	40.889		$	43.416
Annuity Product Spread Information (1)
Net Investment Income (2)(3)		7.11	%		6.87	%		6.89	%		6.61	%		6.49	%		6.42	%		6.13	%		6.43	%		6.34	%		6.14	%		6.23	%		6.05	%
Interest Credited to Policyholders		4.92	%		4.76	%		4.72	%		4.42	%		4.29	%		4.20	%		4.09	%		3.97	%		3.93	%		3.90	%		3.87	%		3.82	%
Spread (2)(3)		2.18	%		2.11	%		2.17	%		2.19	%		2.20	%		2.22	%		2.04	%		2.46	%		2.41	%		2.24	%		2.36	%		2.23	%

(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 8 bps in the 1st quarter of 2005, 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 first 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.

3/31/2005 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 and other volume related expenses		353.7			318.4			330.2			350.1			331.1
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	%
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. 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.

3/31/2005 PAGE 21

Life Insurance Segment

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Revenue
Premiums	$	47.8		$	49.7		$	45.2		$	52.2		$	47.9		$	48.3		$	44.3		$	53.6		$	45.6
Surrender charges		11.4			12.4			13.7			16.1			13.8			12.7			11.1			14.2			12.0
Mortality assessments		129.7			128.4			130.2			128.4			128.5			129.6			130.1			130.5			133.3
Expense assessments		48.3			49.6			48.9			55.0			49.8			51.0			49.8			58.0			48.8
Other revenue and fees		5.8			7.3			6.4			8.4			7.8			8.2			7.3			8.1			8.2
Net investment income		227.6			229.0			226.4			228.1			235.7			234.9			238.4			239.4			236.3
Realized gains (losses) on investments		(12.7	)		(2.6	)		(1.7	)		20.5			(3.9	)		(5.8	)		(2.6	)		(1.0	)		(5.0	)
Gains (losses) on derivatives		(0.5	)		0.3			(0.3	)		(3.1	)								0.1						0.6
Gain (loss) on reinsurance derivative/trading account securities											(0.6	)		(0.3	)					(1.8	)		(0.7	)		0.7
Total Revenue		457.5			474.0			468.9			505.0			479.2			478.9			476.8			502.0			480.4
Benefits and Expenses
Benefits paid or provided:
Benefits		103.8			110.5			118.5			83.2			97.4			104.4			95.8			106.4			97.4
Div accum & div to policyholders		14.4			17.6			15.9			33.8			18.5			18.6			16.7			23.6			18.4
Interest credited to policy bal.		150.1			149.8			150.7			147.5			144.8			143.9			143.8			147.1			145.8
Total insurance benefits		268.3			277.9			285.1			264.5			260.7			267.0			256.3			277.2			261.6
Underwriting, acquisition, insurance and other expenses:
Commissions and other volume related expenses		86.6			73.8			82.7			106.9			78.0			73.0			80.7			99.4			77.2
Operating and administrative expenses		40.6			38.5			41.7			45.4			38.5			40.7			46.5			42.9			40.7
Restructuring charges		5.5			7.3			2.5			4.2			2.7			0.5			0.9			0.7			0.9
Taxes, licenses and fees		14.4			13.8			16.1			18.0			12.4			11.5			12.8			12.5			14.7
Subtotal		147.1			133.4			143.0			174.4			131.6			125.8			140.9			155.4			133.5
Deferral of acquisition costs		(91.0	)		(79.7	)		(88.0	)		(112.1	)		(83.7	)		(81.1	)		(90.8	)		(109.7	)		(85.0	)
DAC amortization		47.0			29.5			21.1			38.0			48.7			43.8			64.9			55.7			59.8
DAC deferral net of amortization		(44.0	)		(50.2	)		(66.9	)		(74.1	)		(35.0	)		(37.3	)		(25.9	)		(54.0	)		(25.2	)
PVIF amortization		17.4			17.2			26.9			19.9			18.5			17.5			29.8			16.4			15.5
Total underwriting, acquisition, insurance and other expenses		120.5			100.4			103.0			120.2			115.1			105.9			144.9			117.7			123.9
Total Benefits and Expenses		388.8			378.3			388.1			384.8			375.8			372.9			401.2			394.9			385.4
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		68.7			95.7			80.8			120.3			103.4			106.0			75.5			107.1			94.9
Federal income taxes		20.2			30.1			24.9			38.7			33.1			34.0			23.5			34.7			30.3
Income Before Cumulative Effect of Accounting Change		48.5			65.6			55.8			81.6			70.3			72.0			52.0			72.4			64.6
Cumulative effect of accounting change											0.6			(2.7	)
Net Income	$	48.5		$	65.6		$	55.8		$	82.2		$	67.5		$	72.0		$	52.0		$	72.4		$	64.6
Less:
Restructuring charges		(3.6	)		(4.7	)		(1.6	)		(2.7	)		(1.8	)		(0.4	)		(0.6	)		(0.4	)		(0.6	)
Realized gains (losses) on investments		(8.1	)		(1.9	)		(1.1	)		13.4			(2.6	)		(3.8	)		(1.7	)		(0.7	)		(3.5	)
Gains (losses) on derivatives		(0.5	)		0.4			(0.2	)		(2.0	)								0.1						0.6
Net gain (loss) on reinsurance derivative/trading account securities											(0.4	)		(0.2	)					(1.2	)		(0.4	)		0.4
Cumulative effect of accounting change											0.6			(2.7	)
Income from Operations	$	60.7		$	71.8		$	58.7		$	73.4		$	74.8		$	76.2		$	55.4		$	74.0		$	67.7
Effective tax rate on Income from Operations		30.6	%		31.8	%		31.1	%		31.8	%		32.2	%		32.2	%		31.4	%		32.4	%		32.1	%
Revenue	$	457.5		$	474.0		$	468.9		$	505.0		$	479.2		$	478.9		$	476.8		$	502.0		$	480.4
Less:
Realized gains (losses) on investments		(12.7	)		(2.6	)		(1.7	)		20.5			(3.9	)		(5.8	)		(2.6	)		(1.0	)		(5.0	)
Gains (losses) on derivatives		(0.5	)		0.3			(0.3	)		(3.1	)								0.1						0.6
Gain (loss) on reinsurance derivative/trading account securities											(0.6	)		(0.3	)					(1.8	)		(0.7	)		0.7
Operating Revenue	$	470.7		$	476.2		$	470.8		$	488.2		$	483.4		$	484.8		$	481.1		$	503.7		$	484.2
Average capital	$	2,864.2		$	2,792.7		$	2,849.0		$	2,893.7		$	2,927.4		$	2,993.5		$	3,086.4		$	3,137.0		$	3,300.3
Net Income return on average capital	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Income from operations return on average capital		8.5	%		10.3	%		8.2	%		10.1	%		10.2	%		10.2	%		7.2	%		9.4	%		8.2	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-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
Deferral		91.0			79.7			88.0			112.1			83.7			81.1			90.8			109.7			85.0
Amortization		(47.0	)		(29.5	)		(21.1	)		(38.0	)		(48.7	)		(43.8	)		(64.9	)		(55.7	)		(59.8	)
Included in Total Benefits and Expenses		44.0			50.2			66.9			74.1			35.0			37.3			25.9			54.0			25.2
Adjustment related to realized (gains) losses on available-for-sale securities		7.0			(0.3	)		(27.6	)		(11.0	)		(3.8	)		(2.4	)		(5.1	)		(5.0	)		(2.0	)
Adjustment related to unrealized (gains) losses on available-for-sale securities		(27.9	)		(116.3	)		62.8			31.9			(77.6	)		165.0			(109.0	)		(3.7	)		71.6
Other*														3.0			0.2			(0.1	)		0.2
Balance at end-of-quarter	$	1,447.7		$	1,381.3		$	1,483.4		$	1,578.3		$	1,534.8		$	1,734.8		$	1,646.4		$	1,691.9		$	1,786.7
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	$	890.1		$	872.7		$	855.5		$	828.5		$	808.6		$	790.1		$	772.6		$	742.8		$	726.5
Amortization		(17.4	)		(17.2	)		(26.9	)		(19.9	)		(18.5	)		(17.5	)		(29.8	)		(16.4	)		(15.5	)
Other		0.1
Balance at end-of-quarter	$	872.7		$	855.5		$	828.5		$	808.6		$	790.1		$	772.6		$	742.8		$	726.5		$	710.9

* 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.

3/31/2005 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	Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004		Jun 2004		Sep 2004		Dec 2004		Mar 2005
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard	$	63.8	$	98.0	$	137.8	$	84.5	$	93.8	$	114.2	$	124.5	$	95.7	$	100.7	$	90.1	$	114.5	$	87.1
MoneyGuard		35.1		34.9		39.3		46.3		48.9		58.2		71.4		56.2		61.1		60.7		66.6		49.4
Total		98.9		132.9		177.1		130.8		142.7		172.3		195.9		151.9		161.8		150.8		181.1		136.4
Variable Universal Life		42.4		26.1		27.0		24.4		14.1		16.6		24.4		22.5		17.7		17.2		27.5		25.9
Whole Life		6.4		7.7		11.0		6.5		7.1		8.5		12.3		10.8		7.6		9.7		13.1		7.8
Term		8.1		7.3		8.1		9.1		9.6		10.5		10.9		10.5		10.6		10.4		9.4		9.2
Total Retail		155.8		174.0		223.2		170.7		173.5		208.0		243.5		195.6		197.8		188.1		231.2		179.3
Corporate Owned Life Insurance (COLI)		46.6		7.8		26.8		10.6		61.8		23.7		29.6		14.2		9.9		29.2		20.4		24.8
Total	$	202.4	$	181.8	$	249.9	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5	$	204.1
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	$	48.3	$	46.9	$	64.9	$	42.1	$	46.8	$	66.2	$	68.5		47.7	$	47.2	$	48.2	$	66.1	$	43.1
Lincoln Financial Distributors		151.6		132.7		171.1		131.7		148.3		156.8		195.2		151.4		152.9		152.0		167.4		149.7
Other*		2.6		2.2		13.9		7.5		40.2		8.7		9.4		10.6		7.5		17.1		18.0		11.3
Total by Distribution	$	202.4	$	181.8	$	249.9	$	181.3	$	235.3	$	231.7	$	273.1	$	209.8	$	207.6	$	217.3	$	251.5	$	204.1
Insurance In-Force (Billions)
Universal Life & Other	$	123.674	$	124.085	$	126.016	$	126.414	$	127.276	$	127.855	$	129.623	$	129.669	$	130.294	$	130.989	$	132.120	$	132.436
Term Insurance		121.076		123.945		127.880		133.251		139.191		145.480		151.717		157.338		162.953		167.979		172.459		176.541
Total Segment In-Force	$	244.750	$	248.030	$	253.896	$	259.666	$	266.467	$	273.335	$	281.340	$	287.007	$	293.247	$	298.967	$	304.579	$	308.976

* 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.

3/31/2005 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.

3/31/2005 PAGE 24

Life Insurance Segment

Life Insurance Account Value Roll Forward

Unaudited [Billions of Dollars]

	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Universal Life-Bal Beg-of-Quarter	$	7.622		$	7.838		$	7.987		$	8.211		$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444		$	9.648
Deposits		0.364			0.310			0.410			0.316			0.350			0.426			0.440			0.342			0.345			0.333			0.413			0.321
Withdrawals & deaths		(0.096	)		(0.108	)		(0.125	)		(0.107	)		(0.101	)		(0.117	)		(0.113	)		(0.117	)		(0.128	)		(0.112	)		(0.117	)		(0.115	)
Net flows		0.268			0.201			0.286			0.210			0.249			0.309			0.327			0.225			0.217			0.221			0.296			0.207
Policyholder assessments		(0.158	)		(0.162	)		(0.170	)		(0.168	)		(0.171	)		(0.178	)		(0.185	)		(0.183	)		(0.187	)		(0.188	)		(0.196	)		(0.194	)
Interest credited		0.106			0.110			0.108			0.106			0.106			0.108			0.106			0.103			0.102			0.103			0.105			0.103
Acq of new business/transfers between segments
Universal Life-Bal End-of-Quarter (1)	$	7.838		$	7.987		$	8.211		$	8.359		$	8.542		$	8.782		$	9.030		$	9.175		$	9.308		$	9.444		$	9.648		$	9.764
Variable Universal Life-Bal Beg 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
Deposits		0.147			0.102			0.126			0.118			0.114			0.093			0.123			0.106			0.108			0.156			0.192			0.130
Withdrawals & deaths		(0.057	)		(0.034	)		(0.047	)		(0.036	)		(0.050	)		(0.048	)		(0.074	)		(0.073	)		(0.042	)		(0.089	)		(0.111	)		(0.069	)
Net flows		0.090			0.068			0.079			0.082			0.064			0.045			0.049			0.032			0.066			0.067			0.081			0.061
Policyholder assessments		(0.046	)		(0.046	)		(0.047	)		(0.049	)		(0.048	)		(0.046	)		(0.049	)		(0.048	)		(0.048	)		(0.048	)		(0.050	)		(0.049	)
Invest inc & chg in mkt value		(0.186	)		(0.224	)		0.083			(0.034	)		0.225			0.062			0.204			0.070			0.011			(0.021	)		0.214			(0.031	)
Acq of new business/transfers between segments
Variable Universal Life - Bal End-of-Quarter	$	1.776		$	1.575		$	1.690		$	1.689		$	1.930		$	1.991		$	2.195		$	2.249		$	2.277		$	2.275		$	2.520		$	2.500
Interest Sensitive Whole Life - Bal Beg-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
Deposits		0.066			0.073			0.100			0.051			0.062			0.067			0.098			0.054			0.055			0.059			0.082			0.061
Withdrawals & deaths		(0.039	)		(0.045	)		(0.063	)		(0.046	)		(0.050	)		(0.066	)		(0.073	)		(0.063	)		(0.047	)		(0.047	)		(0.050	)		(0.068	)
Net flows		0.026			0.027			0.037			0.005			0.012			0.001			0.026			(0.009	)		0.008			0.012			0.032			(0.007	)
Policyholder assessments		(0.039	)		(0.040	)		(0.046	)		(0.036	)		(0.038	)		(0.039	)		(0.047	)		(0.036	)		(0.036	)		(0.036	)		(0.041	)		(0.045	)
Interest credited		0.032			0.031			0.031			0.030			0.032			0.032			0.031			0.032			0.031			0.032			0.030			0.039
Int Sensitive Whole Life-Bal End-of-Quarter	$	2.145		$	2.164		$	2.186		$	2.185		$	2.191		$	2.185		$	2.195		$	2.182		$	2.185		$	2.193		$	2.214		$	2.201
Total Segment-Life Insurance Account Values
Bal Beg-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
Deposits		0.577			0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512
Withdrawals & deaths		(0.192	)		(0.187	)		(0.234	)		(0.190	)		(0.202	)		(0.231	)		(0.259	)		(0.254	)		(0.217	)		(0.248	)		(0.278	)		(0.252	)
Net flows		0.385			0.297			0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408			0.260
Policyholder assessments		(0.244	)		(0.248	)		(0.263	)		(0.252	)		(0.257	)		(0.262	)		(0.280	)		(0.267	)		(0.271	)		(0.272	)		(0.287	)		(0.287	)
Invest inc & change in market value		(0.049	)		(0.082	)		0.222			0.103			0.363			0.202			0.341			0.205			0.145			0.114			0.348			0.111
Acq of new business/transfers between segments
Total Segment-Bal End-of-Quarter	$	11.759		$	11.726		$	12.086		$	12.233		$	12.663		$	12.958		$	13.420		$	13.606		$	13.770		$	13.912		$	14.382		$	14.466
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)(4)		7.39	%		7.26	%		7.15	%		7.21	%		7.09	%		6.90	%		6.73	%		6.84	%		6.70	%		6.62	%		6.50	%		6.32	%
Interest Credited to Policyholders		5.83	%		5.82	%		5.63	%		5.56	%		5.43	%		5.37	%		5.12	%		4.97	%		4.89	%		4.79	%		4.80	%		4.75	%
Spread (3)(4)		1.56	%		1.44	%		1.52	%		1.65	%		1.65	%		1.53	%		1.61	%		1.87	%		1.81	%		1.83	%		1.69	%		1.57	%
Traditional Products
Net Investment Income (3)(4)		7.37	%		7.58	%		7.28	%		7.16	%		7.13	%		6.99	%		6.72	%		7.33	%		6.61	%		6.97	%		6.60	%		6.43	%

(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 March 31, 2005, 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 0 bps in the 1st quarter of 2005, 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 5 bps in the 1st quarter of 2005, 7 bps in the 4th quarter of 2004, 59 bps in the 3rd quarter of 2004, 5 bps in the 2nd quarter of 2004, 0 bps in 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.

3/31/2005 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		61.2			51.7			46.5			72.8			66.2
Surrender charges		2.8			2.2			2.4			2.3			1.9
Expense assessments		52.0			45.3			38.1			42.8			56.8
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
Interest credited to policy bal.		40.5			38.7			31.3			26.4			26.9
Underwriting, acquisition, insurance and other expenses:
Commissions and other volume related expenses		32.1			31.6			35.5			42.2			53.0
Operating and administrative expenses		361.6			344.6			335.5			368.7			392.9
Restructuring charges		7.1			0.6			(0.4	)		7.1			1.2
Deferral of acquisition costs		(9.3	)		(4.7	)		(9.2	)		(22.8	)		(27.1	)
Taxes, licenses and fees		11.6			16.8			13.0			10.3			17.0
Subtotal		403.1			388.8			374.5			405.5			437.1
Other intangibles amortization		16.3			10.8			8.2			7.9			9.7
Total underwriting, acquisition, insurance and other expenses		419.4			399.6			382.8			413.4			446.8
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
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	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period	$	73.5		$	81.1		$	85.6		$	90.8		$	91.8
Deferral		36.4			35.6			42.0			42.0			51.4
Amortization		(27.1	)		(30.8	)		(32.9	)		(19.2	)		(24.3	)
Included in Total Benefits and Expenses		9.3			4.8			9.2			22.8			27.1
Adjustment related to realized (gains) losses on available-for-sale securities		0.7			1.6			2.3			0.5			(1.3	)
Adjustment related to unrealized (gains) losses on available-for-sale securities		(2.4	)		(1.8	)		(6.3	)		(22.2	)		2.7
Balance at end-of-period	$	81.1		$	85.6		$	90.8		$	91.8		$	120.4

Certain reclassifications have been made to present financial information for the Investment Management segment’s 401(k) Director product on a basis consistent with the reporting for similar products in the Retirement and Life Insurance segments.

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.

3/31/2005 PAGE 26

Investment Management

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Revenue
Investment advisory fees - External	$	44.2		$	49.4		$	53.2		$	58.3		$	62.7		$	66.4		$	67.4		$	56.0		$	59.4
Investment advisory fees - Insurance-related Assets		24.1			25.4			25.5			26.2			26.5			26.1			26.4			26.8			24.8
Other revenue and fees		11.8			18.4			18.9			23.7			19.1			16.7			13.7			16.7			16.0
Surrender charges		0.6			0.4			0.5			0.7			0.5			0.5			0.4			0.5			0.7
Expense assessments		9.6			10.6			10.2			12.4			14.1			14.7			12.5			15.5			16.6
Net investment income		12.1			12.1			13.2			12.5			12.2			14.6			12.7			12.3			12.9
Realized gains (losses) on investments		(0.4	)		0.1			0.2			0.5			(2.3	)		1.8			(0.3	)		0.1			(0.4	)
Sale of subsidiary																				110.3			0.5
Total Revenue		102.1			116.4			121.7			134.3			132.9			140.8			242.9			128.3			130.0
Benefits and Expenses
Interest credited to policy bal.		6.6			6.6			6.6			6.6			6.6			6.7			6.9			6.8			6.8
Underwriting, acquisition, insurance and other expenses:
Commissions and other volume related expenses		9.9			9.9			10.4			12.0			14.0			14.4			12.9			11.7			13.3
Operating and administrative expenses		84.0			93.0			92.7			99.1			96.1			98.5			98.1			100.2			96.4
Restructuring charges								5.3			1.7			1.5									(0.3	)
Deferral of acquisition costs		(5.3	)		(5.1	)		(8.0	)		(4.4	)		(5.6	)		(8.1	)		(9.5	)		(3.9	)		(3.3	)
Taxes, licenses and fees		3.0			2.8			2.4			2.1			3.9			5.5			4.6			3.1			4.4
Subtotal		91.6			100.7			102.8			110.4			110.0			110.4			106.0			110.7			110.9
Other intangibles amortization		2.0			2.0			2.0			2.0			2.0			2.0			2.0			3.8			1.9
Total underwriting, acquisition, insurance and other expenses		93.6			102.6			104.7			112.4			111.9			112.3			108.0			114.5			112.8
Total Benefits and Expenses		100.2			109.2			111.3			119.1			118.5			119.0			114.8			121.4			119.6
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		1.9			7.2			10.3			15.2			14.4			21.8			128.1			7.0			10.4
Federal income taxes		0.8			2.6			4.0			(3.0	)		4.3			7.3			70.0			1.1			3.2
Income Before Cumulative Effect of Accounting Change		1.0			4.6			6.3			18.2			10.0			14.5			58.1			5.8			7.1
Cumulative effect of accounting change
Net Income	$	1.0		$	4.6		$	6.3		$	18.2		$	10.0		$	14.5		$	58.1		$	5.8		$	7.1
Less:
Realized gains (losses) on investments		(0.3	)					0.1			0.3			(1.5	)		1.2			(0.2	)		0.1			(0.3	)
Gain on sale of subsidiary																				45.8			0.3
Restructuring charges								(3.5	)		(1.1	)		(1.0	)								0.2
Income from Operations	$	1.3		$	4.5		$	9.7		$	19.0		$	12.5		$	13.4		$	12.5		$	5.2		$	7.4
Net Income -before
Intangible Amortization	$	2.4		$	5.8		$	7.6		$	19.5		$	11.3		$	15.8		$	59.3		$	7.4		$	8.4
Income from Operations -before
Intangible Amortization	$	2.6		$	5.8		$	11.0		$	20.3		$	13.8		$	14.6		$	13.8		$	6.8		$	8.6
Revenue	$	102.1		$	116.4		$	121.7		$	134.3		$	132.9		$	140.8		$	242.9		$	128.3		$	130.0
Less:
Realized gains (losses) on investments		(0.4	)		0.1			0.2			0.5			(2.3	)		1.8			109.9			0.1			(0.4	)
Sale of Subsidiary																							0.5
Operating Revenue	$	102.5		$	116.3		$	121.4		$	133.8		$	135.2		$	139.0		$	133.0		$	127.7		$	130.4
Average Capital (Securities at Cost)	$	597.7		$	588.6		$	600.4		$	623.0		$	634.2		$	634.8		$	627.2		$	547.3		$	548.0
Net Income return on average capital		0.7	%		3.1	%		4.2	%		11.7	%		6.3	%		9.1	%		37.0	%		4.3	%		5.2	%
Income from operations return on average capital		0.9	%		3.1	%		6.4	%		12.2	%		7.9	%		8.4	%		8.0	%		3.8	%		5.4	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	$	90.8		$	79.5		$	65.5		$	81.9		$	91.8		$	84.2		$	120.1		$	115.3		$	120.4
Deferral		8.8			9.0			13.9			10.2			11.7			13.4			12.5			13.8			12.2
Amortization		(3.5	)		(4.0	)		(5.9	)		(5.8	)		(6.1	)		(5.3	)		(3.0	)		(10.0	)		(8.9	)
Included in Total Benefits and Expenses		5.3			5.1			8.0			4.4			5.6			8.1			9.5			3.9			3.3
Adjustment related to realized (gains) losses on available-for-sale securities		1.1			0.7			(1.1	)		(0.2	)		(3.6	)		2.4			0.4			(0.5	)		0.4
Adjustment related to unrealized (gains) losses on available-for-sale securities		(17.7	)		(19.8	)		9.5			5.7			(9.6	)		25.4			(14.8	)		1.7			9.8
Balance at end-of-quarter	$	79.5		$	65.5		$	81.9		$	91.8		$	84.2		$	120.1		$	115.3		$	120.4		$	133.8

Certain reclassifications have been made to present financial information for the Investment Management segment’s 401(k) Director product on a basis consistent with the reporting for similar products in the Retirement and Life Insurance segments.

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.

3/31/2005 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 billion at March 31, 2005.

(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 began subadvising certain retail and institutional assets 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.

3/31/2005 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			0.067
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 billion at March 31, 2005.

(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.

3/31/2005 PAGE 28

Investment Management

Assets Under Management Roll Forward

Unaudited [Billions of Dollars]

	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Retail Fixed - Bal-Beg-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
Fund Sales		0.272			0.325			0.328			0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493			0.608
Redemptions		(0.306	)		(0.277	)		(0.311	)		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)		(0.373	)
Net Money Market		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)
Transfers		0.021			0.134			0.092			0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)		0.104
Net Flows		(0.015	)		0.174			0.074			0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134			0.314
Market		0.096			0.174			0.043			0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125			(0.068	)
Transfer of Assets Under Administration(1)																													(0.194	)		(0.062	)		(0.001	)
Balance at End-of-Qtr	$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501
Retail Equity - Bal-Beg-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
Fund Sales		1.084			1.140			1.345			0.717			0.813			1.051			1.210			1.938			1.666			1.480			2.026			2.773
Redemptions		(0.881	)		(1.137	)		(0.881	)		(0.803	)		(0.612	)		(0.706	)		(0.710	)		(0.992	)		(1.028	)		(1.081	)		(0.953	)		(1.325	)
Transfers		(0.022	)		(0.128	)		(0.036	)		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)		(0.183	)
Net Flows		0.182			(0.126	)		0.428			(0.145	)		0.213			0.457			0.592			0.944			0.634			0.485			1.036			1.265
Market		(1.824	)		(2.782	)		0.784			(0.486	)		2.408			0.598			2.334			0.715			0.044			(0.188	)		2.685			(0.423	)
Sale of Subsidiary/Transfer of Assets Under Administration (1) (2)																													(0.901	)		(0.211	)		(0.003	)
Balance at End-of-Qtr	$	16.613		$	13.705		$	14.917		$	14.286		$	16.906		$	17.961		$	20.887		$	22.546		$	23.223		$	22.620		$	26.130		$	26.970
Total Retail - Bal-Beg-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
Retail Sales-Annuities		0.601			0.756			0.806			0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737			0.735
Retail Sales-Mutual Funds		0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336
Retail Sales-Managed Acct. & Other		0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310
Total Retail Sales		1.356			1.465			1.673			1.141			1.282			1.494			1.666			2.451			2.117			1.905			2.519			3.381
Redemptions		(1.186	)		(1.414	)		(1.192	)		(1.130	)		(0.930	)		(1.141	)		(1.071	)		(1.409	)		(1.491	)		(1.422	)		(1.252	)		(1.697	)
Net Money Market		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)
Transfers		(0.001	)		0.006			0.056			0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)		(0.079	)
Net Flows		0.167			0.048			0.502			0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170			1.579
Market		(1.728	)		(2.608	)		0.826			(0.369	)		2.601			0.578			2.444			0.818			(0.101	)		0.019			2.810			(0.491	)
Sale of Subsidiary/Transfer of Assets Under Administration (1) (2)																													(1.095	)		(0.273	)		(0.004	)
Balance at End-of-Qtr	$	23.779		$	21.219		$	22.547		$	22.193		$	25.096		$	26.044		$	29.073		$	30.859		$	31.375		$	30.680		$	34.387		$	35.471
Institutional Fixed - Bal-Beg-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
Inflows		0.663			0.530			0.283			0.592			0.126			0.556			0.663			0.806			1.281			0.947			2.100			1.211
Withdrawals/Terminations		(0.161	)		(0.308	)		(0.438	)		(0.308	)		(0.188	)		(0.226	)		(0.503	)		(0.218	)		(0.135	)		(0.163	)		(0.077	)		(0.130	)
Transfers		0.000			0.007			(0.002	)		0.002			0.003			(0.000	)		(0.000	)		0.005			0.002			0.001			0.001			0.000
Net Flows		0.503			0.229			(0.157	)		0.286			(0.059	)		0.330			0.160			0.593			1.148			0.784			2.024			1.082
Market		0.323			0.134			0.187			0.083			0.207			(0.006	)		0.163			0.036			(0.271	)		0.339			0.031			(0.040	)
Sale of Subsidiary (2)																													(3.124	)
Balance at End-of-Qtr	$	6.844		$	7.207		$	7.237		$	7.605		$	7.753		$	8.077		$	8.399		$	9.028		$	9.906		$	7.906		$	9.960		$	11.002
Institutional Equity - Bal-Beg-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
Inflows		0.569			0.631			1.040			0.494			0.727			1.386			1.315			1.817			2.049			1.638			0.650			0.576
Withdrawals/Terminations		(0.635	)		(0.523	)		(0.322	)		(0.459	)		(0.381	)		(0.921	)		(0.419	)		(0.762	)		(1.161	)		(1.053	)		(0.607	)		(0.473	)
Transfers		0.018			0.011			0.010			0.008			0.002			0.003			0.005			0.012			0.006			0.010			0.029			0.033
Net Flows		(0.047	)		0.119			0.728			0.044			0.348			0.469			0.901			1.068			0.895			0.595			0.072			0.135
Market		(0.476	)		(3.302	)		1.046			(0.835	)		3.339			0.932			3.413			0.798			0.280			0.196			1.120			(0.269	)
Sale of Subsidiary (2)																													(18.664	)
Balance at End-of-Qtr	$	18.120		$	14.937		$	16.711		$	15.920		$	19.607		$	21.008		$	25.322		$	27.188		$	28.362		$	10.490		$	11.682		$	11.549
Total Institutional - Bal-Beg-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
Inflows		1.232			1.162			1.323			1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750			1.787
Withdrawals/Terminations		(0.796	)		(0.831	)		(0.760	)		(0.767	)		(0.568	)		(1.147	)		(0.922	)		(0.980	)		(1.296	)		(1.216	)		(0.684	)		(0.603	)
Transfers		0.019			0.017			0.008			0.010			0.005			0.003			0.005			0.017			0.008			0.011			0.030			0.033
Net Flows		0.455			0.348			0.572			0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095			1.217
Market		(0.153	)		(3.168	)		1.233			(0.752	)		3.546			0.926			3.576			0.834			0.009			0.535			1.151			(0.308	)
Sale of Subsidiary (2)																													(21.787	)
Balance at End-of-Qtr	$	24.963		$	22.143		$	23.948		$	23.526		$	27.360		$	29.085		$	33.722		$	36.216		$	38.268		$	18.396		$	21.643		$	22.551
Total Retail/Inst - At End-of-Qtr	$	48.742		$	43.362		$	46.495		$	45.718		$	52.456		$	55.129		$	62.794		$	67.075		$	69.643		$	49.076		$	56.029		$	58.022
Insurance-related Assets-End-of-Qtr	$	38.476		$	40.416		$	41.104		$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980		$	44.210
Total Retail/Inst - Net Flows	$	0.622		$	0.396		$	1.074		$	0.344		$	0.591		$	1.169		$	1.645		$	2.629		$	2.660		$	1.760		$	3.265		$	2.796
Total Assets Under Management At End-of-Qtr	$	87.218		$	83.778		$	87.599		$	87.848		$	96.313		$	98.113		$	105.818		$	111.081		$	112.172		$	93.123		$	100.009		$	102.231
Subadvised Assets, included in Assets Under Management above
Retail	$	2.480		$	2.280		$	2.460		$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740		$	12.178
Institutional		0.030			0.020			0.020			0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740			3.921
Total Subadvised Assets	$	2.510		$	2.300		$	2.480		$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480		$	16.100

(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 billion at March 31, 2005.

(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 began subadvising certain retail and institutional assets 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.

3/31/2005 PAGE 28A

Investment Management (excluding Assets

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

Assets Under Management Roll Forward

Unaudited [Billions of Dollars]

	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Retail Fixed - Bal-Beg-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
Fund Sales		0.272			0.325			0.328			0.424			0.469			0.443			0.456			0.513			0.452			0.425			0.493			0.608
Redemptions		(0.306	)		(0.277	)		(0.311	)		(0.327	)		(0.318	)		(0.435	)		(0.361	)		(0.418	)		(0.462	)		(0.341	)		(0.299	)		(0.373	)
Net Money Market		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)
Transfers		0.021			0.134			0.092			0.062			(0.055	)		(0.086	)		(0.088	)		(0.035	)		(0.019	)		(0.119	)		(0.040	)		0.104
Net Flows		(0.015	)		0.174			0.074			0.159			0.090			(0.087	)		(0.008	)		0.024			(0.017	)		(0.104	)		0.134			0.314
Market		0.096			0.174			0.043			0.117			0.193			(0.020	)		0.111			0.103			(0.144	)		0.207			0.125			(0.068	)
Transfer of Assets Under Administration (1)																													(0.194	)		(0.062	)		(0.001	)
Balance at End-of-Qtr	$	7.167		$	7.514		$	7.631		$	7.907		$	8.190		$	8.083		$	8.186		$	8.313		$	8.152		$	8.060		$	8.257		$	8.501
Retail Equity - Bal-Beg-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
Fund Sales		1.084			1.140			1.050			0.712			0.812			1.048			1.208			1.936			1.664			1.478			2.026			2.773
Redemptions		(0.881	)		(1.137	)		(0.875	)		(0.765	)		(0.608	)		(0.698	)		(0.694	)		(0.979	)		(1.019	)		(1.074	)		(0.953	)		(1.325	)
Transfers		(0.022	)		(0.128	)		(0.036	)		(0.059	)		0.011			0.112			0.092			(0.002	)		(0.004	)		0.085			(0.037	)		(0.183	)
Net Flows		0.182			(0.126	)		0.139			(0.111	)		0.214			0.462			0.606			0.956			0.641			0.490			1.036			1.265
Market		(1.824	)		(2.782	)		0.780			(0.465	)		2.359			0.589			2.285			0.706			0.039			(0.194	)		2.685			(0.423	)
Transfer of Assets Under Administration (1)																													(0.582	)		(0.211	)		(0.003	)
Balance at End-of-Qtr	$	16.613		$	13.705		$	14.624		$	14.048		$	16.622		$	17.673		$	20.564		$	22.225		$	22.906		$	22.620		$	26.130		$	26.970
Total Retail - Bal-Beg-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
Retail Sales-Annuities		0.601			0.756			0.510			0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737			0.735
Retail Sales-Mutual Funds		0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336
Retail Sales-Managed Acct. & Other		0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310
Total Retail Sales		1.356			1.465			1.378			1.136			1.280			1.491			1.664			2.449			2.115			1.903			2.519			3.381
Redemptions		(1.186	)		(1.414	)		(1.186	)		(1.092	)		(0.926	)		(1.133	)		(1.055	)		(1.396	)		(1.481	)		(1.415	)		(1.252	)		(1.697	)
Net Money Market		(0.002	)		(0.009	)		(0.035	)		0.001			(0.006	)		(0.008	)		(0.014	)		(0.036	)		0.012			(0.069	)		(0.020	)		(0.026	)
Transfers		(0.001	)		0.006			0.056			0.003			(0.044	)		0.025			0.004			(0.037	)		(0.022	)		(0.034	)		(0.077	)		(0.079	)
Net Flows		0.167			0.048			0.213			0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170			1.579
Market		(1.728	)		(2.608	)		0.823			(0.347	)		2.552			0.569			2.396			0.808			(0.105	)		0.013			2.810			(0.491	)
Transfer of Assets Under Administration (1)																													(0.776	)		(0.273	)		(0.004	)
Balance at End-of-Qtr	$	23.779		$	21.219		$	22.255		$	21.955		$	24.812		$	25.756		$	28.750		$	30.538		$	31.057		$	30.680		$	34.387		$	35.471
Institutional Fixed - Bal-Beg-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
Inflows		0.635			0.493			0.251			0.553			0.120			0.516			0.351			0.655			0.776			0.825			2.100			1.211
Withdrawals/Terminations		(0.102	)		(0.196	)		(0.162	)		(0.158	)		(0.152	)		(0.089	)		(0.236	)		(0.138	)		(0.109	)		(0.127	)		(0.077	)		(0.130	)
Transfers		0.000			0.007			(0.002	)		0.002			(0.099	)		(0.056	)		0.028			0.005			0.002			0.001			0.001			0.000
Net Flows		0.534			0.304			0.087			0.397			(0.132	)		0.371			0.143			0.521			0.669			0.699			2.024			1.082
Market		0.057			0.054			0.050			(0.013	)		0.083			(0.019	)		0.004			(0.001	)		(0.191	)		0.227			0.031			(0.040	)
Balance at End-of-Qtr	$	4.653		$	5.010		$	5.147		$	5.530		$	5.481		$	5.834		$	5.981		$	6.501		$	6.980		$	7.906		$	9.960		$	11.002
Institutional Equity - Bal-Beg-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
Inflows		0.228			0.373			0.743			0.339			0.347			0.571			0.524			0.552			0.596			0.484			0.650			0.576
Withdrawals/Terminations		(0.453	)		(0.351	)		(0.167	)		(0.182	)		(0.232	)		(0.516	)		(0.231	)		(0.501	)		(0.959	)		(0.361	)		(0.607	)		(0.473	)
Transfers		0.018			0.011			0.010			0.008			0.002			0.003			0.021			(0.012	)		0.073			0.029			0.029			0.033
Net Flows		(0.206	)		0.033			0.586			0.165			0.116			0.059			0.314			0.038			(0.290	)		0.152			0.072			0.135
Market		(0.674	)		(1.336	)		0.499			(0.326	)		1.305			0.305			1.178			0.357			0.012			(0.096	)		1.120			(0.269	)
Balance at End-of-Qtr	$	7.419		$	6.116		$	7.201		$	7.041		$	8.462		$	8.826		$	10.318		$	10.713		$	10.435		$	10.490		$	11.682		$	11.549
Total Institutional - Bal-Beg-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
Inflows		0.863			0.866			0.994			0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750			1.787
Withdrawals/Terminations		(0.554	)		(0.547	)		(0.328	)		(0.340	)		(0.385	)		(0.604	)		(0.466	)		(0.640	)		(1.068	)		(0.488	)		(0.684	)		(0.603	)
Transfers		0.019			0.017			0.008			0.010			(0.098	)		(0.053	)		0.049			(0.007	)		0.075			0.030			0.030			0.033
Net Flows		0.328			0.337			0.673			0.562			(0.016	)		0.430			0.457			0.560			0.379			0.851			2.095			1.217
Market		(0.617	)		(1.282	)		0.548			(0.339	)		1.388			0.287			1.182			0.356			(0.179	)		0.131			1.151			(0.308	)
Balance at End-of-Qtr	$	12.072		$	11.126		$	12.348		$	12.571		$	13.943		$	14.660		$	16.299		$	17.215		$	17.414		$	18.396		$	21.643		$	22.551
Total Retail/Inst - At End-of-Qtr	$	35.851		$	32.345		$	34.602		$	34.527		$	38.755		$	40.416		$	45.049		$	47.753		$	48.471		$	49.076		$	56.029		$	58.022
Insurance-related Assets-End-of-Qtr	$	38.476		$	40.416		$	41.104		$	42.130		$	43.857		$	42.984		$	43.024		$	44.006		$	42.528		$	44.047		$	43.980		$	44.210
Total Retail/Inst - Net Flows	$	0.494		$	0.385		$	0.886		$	0.610		$	0.288		$	0.805		$	1.055		$	1.540		$	1.003		$	1.236		$	3.265		$	2.796
Total Assets Under Management At End-of-Qtr	$	74.327		$	72.761		$	75.706		$	76.656		$	82.612		$	83.400		$	88.072		$	91.759		$	91.000		$	93.123		$	100.009		$	102.231
Subadvised Assets, included in Assets Under Management above
Retail	$	2.480		$	2.280		$	2.460		$	2.550		$	2.970		$	3.240		$	3.750		$	4.000		$	4.290		$	8.830		$	10.740		$	12.178
Institutional		0.030			0.020			0.020			0.020			0.030			0.020			0.030			0.030			0.030			3.070			3.740			3.921
Total Subadvised Assets	$	2.510		$	2.300		$	2.480		$	2.570		$	3.000		$	3.260		$	3.780		$	4.030		$	4.320		$	11.900		$	14.480		$	16.100

(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 billion at March 31, 2005.

(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.

3/31/2005 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
Income before federal income tax and cumulative effect of accounting change		(25.7	)		59.2			34.3			64.5			77.3
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.

3/31/2005 PAGE 30

Lincoln UK

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Revenue
Premiums	$	12.7		$	13.8		$	16.5		$	19.3		$	18.1		$	19.6		$	17.7		$	14.9		$	14.6
Mortality assessments		9.1			9.2			8.7			8.7			9.6			10.4			9.7			9.8			9.0
Expense assessments		21.6			24.5			23.2			24.6			24.2			24.4			27.0			28.3			26.6
Other revenue and fees		10.3			(3.9	)		2.6			9.6			5.8			8.3			22.8			16.0			4.1
Net investment income		15.2			16.7			16.0			16.2			18.5			18.3			18.7			20.2			20.3
Realized gains (losses) on investments								0.3			(1.3	)		(0.4	)		(0.1	)		(0.1	)		0.7
Gain on sale of subsidiaries/ businesses																	10.1									14.2
Total Revenue		68.9			60.2			67.3			77.1			75.8			91.0			95.7			90.0			88.9
Benefits and Expenses
Benefits paid or provided:
Benefits		18.2			24.3			22.7			33.3			29.0			28.8			21.4			21.3			25.1
Underwriting, acquisition, insurance and other expenses:
Commissions		1.1			0.8			1.0			0.8			0.6			0.6			0.7			1.0			0.6
Operating and administrative expenses		18.3			20.5			19.6			20.0			23.0			22.3			21.6			14.1			25.4
Restructuring charges
Subtotal		19.4			21.3			20.6			20.8			23.5			22.9			22.4			15.1			25.9
Deferral of acquisition costs		(0.8	)		(0.8	)		(0.2	)		(1.6	)		(1.5	)		(1.8	)		(1.4	)		(1.6	)		0.7
DAC amortization		18.6			2.0			7.3			14.7			12.5			14.4			28.6			23.5			6.4
DAC deferral net of amortization		17.7			1.2			7.1			13.1			11.0			12.6			27.2			21.9			7.1
PVIF amortization		3.0			(5.7	)		(0.7	)		(7.3	)		3.0			0.1			9.4			5.6			1.0
Total underwriting, acquisition, insurance and other expenses		40.1			16.8			27.0			26.6			37.6			35.7			59.0			42.5			34.0
Total Benefits and Expenses		58.3			41.1			49.6			59.9			66.6			64.5			80.3			63.8			59.2
Income Before Federal Income Tax and Cumulative Effect of Accounting Change		10.6			19.1			17.6			17.2			9.2			26.5			15.4			26.2			29.7
Federal income taxes		3.8			6.6			6.1			5.1			3.2			9.3			5.5			9.1			10.4
Net Income	$	6.8		$	12.4		$	11.5		$	12.2		$	5.9		$	17.2		$	9.9		$	17.1		$	19.3
Less:
Realized gains (losses) on investments								0.2			(0.9	)		(0.3	)					(0.2	)		0.5
Gain on sale of subsidiaries/ businesses																	6.6									9.3
Restructuring charges
Income from Operations	$	6.8		$	12.4		$	11.3		$	13.0		$	6.2		$	10.7		$	10.1		$	16.6		$	10.0
Effective tax rate on Income from Operations		35.5	%		34.7	%		35.0	%		29.5	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
Revenue	$	68.9		$	60.2		$	67.3		$	77.1		$	75.8		$	91.0		$	95.7		$	90.0		$	88.9
Less:
Realized gains (losses) on investments								0.3			(1.3	)		(0.4	)		(0.1	)		(0.1	)		0.7
Gain on sale of subsidiaries/ businesses																	10.1									14.2
Operating Revenue	$	68.9		$	60.2		$	67.0		$	78.4		$	76.1		$	81.0		$	95.8		$	89.3		$	74.6
Average capital	$	532.6		$	487.9		$	452.2		$	443.1		$	447.9		$	421.2		$	432.5		$	439.9		$	440.2
Net Income return on average capital		5.1	%	$	0.1		$	0.1		$	0.1		$	0.1		$	0.2		$	0.1		$	0.2		$	0.2
Return on average capital		5.1	%		10.2	%		10.0	%		11.8	%		5.5	%		10.2	%		9.3	%		15.1	%		9.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	$	597.6		$	569.1		$	595.1		$	590.9		$	620.7		$	629.6		$	608.6		$	578.9		$	590.9
Deferral		0.8			0.8			0.2			1.6			1.5			1.8			1.4			1.6			(0.7	)
Amortization		(18.6	)		(2.0	)		(7.3	)		(14.7	)		(12.5	)		(14.4	)		(28.6	)		(23.5	)		(6.4	)
Included in Total Benefits and Expenses		(17.7	)		(1.2	)		(7.1	)		(13.1	)		(11.0	)		(12.6	)		(27.2	)		(21.9	)		(7.1	)
Foreign currency translation adjustment		(10.8	)		27.2			2.8			42.8			19.9			(8.4	)		(2.5	)		33.8			(7.0	)
Balance at end-of-year	$	569.1		$	595.1		$	590.9		$	620.7		$	629.6		$	608.6		$	578.9		$	590.9		$	576.9
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	$	237.4		$	230.1		$	247.0		$	249.0		$	274.7		$	280.5		$	276.7		$	266.2		$	276.1
Amortization		(3.0	)		5.7			0.7			7.3			(3.0	)		(0.1	)		(9.4	)		(5.6	)		(1.0	)
Foreign currency translation adjustment		(4.3	)		11.2			1.3			18.4			8.9			(3.7	)		(1.1	)		15.6			(3.3	)
Balance at end-of-year	$	230.1		$	247.0		$	249.0		$	274.7		$	280.5		$	276.7		$	266.2		$	276.1		$	271.9

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.

3/31/2005 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	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Unit Linked Assets
Balance-Beg-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
Deposits		0.115			0.119			0.104			0.094			0.090			0.113			0.095			0.083			0.085			0.102			0.108			0.075
Withdrawals (incl. chgs) & Deaths		(0.137	)		(0.126	)		(0.129	)		(0.153	)		(0.137	)		(0.152	)		(0.172	)		(0.172	)		(0.177	)		(0.175	)		(0.188	)		(0.175	)
Net Flows		(0.022	)		(0.006	)		(0.025	)		(0.059	)		(0.047	)		(0.039	)		(0.077	)		(0.090	)		(0.092	)		(0.074	)		(0.080	)		(0.100	)
Inv Inc & Chg in Mkt Val		(0.479	)		(0.812	)		0.146			(0.184	)		0.549			0.205			0.348			0.020			0.127			0.091			0.411			0.171
Foreign Currency Adjustment		0.403			0.123			0.133			(0.087	)		0.218			0.059			0.427			0.207			(0.087	)		(0.025	)		0.387			(0.085	)
Unit Linked Assets - End-of-Quarter	$	5.520		$	4.825		$	5.079		$	4.748		$	5.468		$	5.692		$	6.390		$	6.528		$	6.476		$	6.468		$	7.186		$	7.173
Individual Life In-force	$	20.401		$	19.815		$	18.896		$	18.512		$	19.138		$	19.258		$	20.393		$	20.522		$	19.846		$	19.380		$	20.378		$	19.820
Exchange Rate - Dollars to Pounds
For-the-Quarter		1.464			1.555			1.570			1.605			1.618			1.615			1.714			1.836			1.814			1.813			1.875			1.904
End-of-Quarter		1.532			1.569			1.610			1.580			1.656			1.664			1.786			1.844			1.819			1.812			1.919			1.896

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.

3/31/2005 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	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Revenue	$	73.0		$	76.1		$	74.8		$	351.9		$	54.7		$	123.6		$	91.6		$	82.0		$	75.2
Less:
Realized gains (losses) on investments		0.4			(0.2	)		(7.6	)		0.3			0.3			0.8			1.2			(1.8	)		(0.1	)
Gains (losses) on derivatives		(0.4	)		0.2			7.7			0.2			(0.2	)		0.0			(1.5	)		1.5			0.0
Gain (loss) on reinsurance derivative/trading account securities											1.9			(1.9	)		2.9			(0.8	)		0.7			1.1
Amort. of deferred gain-reserve development		(0.2	)		(0.2	)		3.7			0.3			0.3			0.3			0.3			0.3			0.3
Gain on sale of subsidiaries/ businesses																	14.0						0.1
Mark-to-market adjustment on reclassification from AFS to trading account securities											285.5
Operating Revenue	$	73.3		$	76.3		$	70.9		$	63.7		$	56.1		$	105.5		$	92.4		$	81.1		$	73.8
Operating Revenue by Source:
Lincoln Financial Advisors		69.4			75.3			76.7			95.5			92.0			96.0			91.7			103.9			128.1
Lincoln Financial Distributors		35.4			29.4			32.2			43.9			57.5			58.4			59.9			69.4			63.5
Total Distribution		104.8			104.6			108.9			139.5			149.6			154.4			151.6			173.2			191.6
Reinsurance
Amortization of deferred gain on indemnity reinsurance*		18.4			18.2			18.3			17.4			17.9			17.9			32.1			19.1			18.9
Other [Including
Consolidating Adjustments]		(49.9	)		(46.6	)		(56.2	)		(93.1	)		(111.3	)		(66.8	)		(91.2	)		(111.3	)		(136.7	)
Total Operating Revenue	$	73.3		$	76.3		$	70.9		$	63.7		$	56.1		$	105.5		$	92.4		$	81.1		$	73.8
Net Income (Loss)	$	(21.7	)	$	(21.6	)	$	(42.4	)	$	(28.1	)	$	(24.8	)	$	(10.9	)	$	(11.1	)	$	(10.1	)	$	(10.5	)
Less:
Restructuring charges								(2.4	)		(2.4	)		(3.6	)		(1.9	)		(0.7	)		(0.3	)		(0.2	)
Realized gains (losses) on investments		0.5			(0.4	)		(4.9	)		0.1			0.2			0.5			1.4			(1.7	)		(0.1	)
Gains (losses) on derivatives		(0.5	)		0.4			5.0			0.1			(0.1	)		0.0			(1.6	)		1.5			0.1
Net gain (loss) on reinsurance derivative/trading account securities											1.3			(1.2	)		1.9			(0.5	)		0.4			0.7
Gain on sale of subsidiaries/ businesses																	9.0						0.1
Reserve development/ amortization of deferred gain		(0.1	)		(0.1	)		(18.5	)		0.2			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	$	(21.5	)	$	(21.5	)	$	(18.0	)	$	(20.8	)	$	(20.3	)	$	(20.7	)	$	(9.9	)	$	(6.3	)	$	(11.3	)
Income from Operations by Source:
Lincoln Financial Advisors	$	(10.4	)	$	(7.4	)	$	(7.4	)	$	(8.0	)	$	(8.7	)	$	(5.3	)	$	(3.5	)	$	(0.3	)	$	(7.6	)
Lincoln Financial Distributors		(8.1	)		(10.7	)		(7.5	)		(7.1	)		(4.6	)		(6.4	)		(6.3	)		(6.3	)		(6.0	)
Total Distribution		(18.4	)		(18.1	)		(15.0	)		(15.1	)		(13.3	)		(11.8	)		(9.8	)		(6.6	)		(13.6	)
Reinsurance
Amortization of deferred gain on indemnity reinsurance*		11.9			11.9			11.9			11.3			11.6			11.7			20.8			12.4			12.3
LNC Financing		(15.3	)		(14.4	)		(13.3	)		(13.7	)		(14.6	)		(15.6	)		(15.7	)		(14.3	)		(14.6	)
Other Corporate		0.3			(0.8	)		(1.5	)		(3.4	)		(4.0	)		(5.0	)		(5.2	)		2.2			4.7
Income(Loss) from Operations	$	(21.5	)	$	(21.5	)	$	(18.0	)	$	(20.8	)	$	(20.3	)	$	(20.7	)	$	(9.9	)	$	(6.3	)	$	(11.3	)

* 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.

3/31/2005 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(1)		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(1)		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

	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	$	0.853		$	1.091		$	0.822		$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732		$	0.740
Lincoln Retirement - Variable Annuities(1)		0.787			0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899
Life Insurance Segment - Life Insurance		0.577			0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512
Inv Mgmt - Annuities		0.601			0.756			0.806			0.488			0.528			0.573			0.562			0.753			0.668			0.600			0.737			0.735
Inv Mgmt - Mutual Funds		0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336
Inv Mgmt - Managed Acct. & Other		0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310
Consolidating Adjustments		(0.333	)		(0.437	)		(0.525	)		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)		(0.282	)
Total Gross Retail Deposits		3.240			3.206			3.151			2.880			2.960			3.370			4.012			4.905			4.648			4.436			5.290			6.249
Investment Management Segment - Instit.		1.232			1.162			1.323			1.086			0.853			1.943			1.978			2.623			3.331			2.584			2.750			1.787
Consolidating Adjustments		(0.069	)		(0.040	)		(0.076	)		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)		(0.015	)
Total Gross Deposits	$	4.403		$	4.328		$	4.398		$	3.913		$	3.788		$	5.288		$	5.943		$	7.509		$	7.945		$	6.988		$	8.038		$	8.021
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	$	16.910		$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084
Lincoln Retirement- Variable Annuities(1)		31.206			25.942			27.438			26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223			43.673
Lincoln Retirement - Life Insurance
Life Insurance Segment - Life Insurance		11.759			11.726			12.086			12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382			14.466
Inv Mgmt - Annuities		10.896			9.327			9.981			9.660			11.002			11.392			12.691			13.294			13.355			13.074			14.494			14.356
Inv Mgmt - Mutual Funds		11.036			10.072			10.296			10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251			13.478
Inv Mgmt - Managed Acct. & Other		1.847			1.820			2.270			2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642			7.638
Consolidating Adjustments		(6.000	)		(4.940	)		(5.123	)		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)		(7.758	)
Total Retail Account Balances		77.654			71.597			75.033			74.546			81.283			83.787			90.593			94.133			95.860			95.393			103.784			104.936
Investment Management Segment - Instit.		24.963			22.143			23.948			23.526			27.360			29.085			33.722			36.216			38.268			18.396			21.643			22.551
Consolidating Adjustments		(1.045	)		(0.866	)		(0.924	)		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)		(1.166	)
Total Account Balances	$	101.573		$	92.874		$	98.057		$	97.140		$	107.595		$	111.828		$	123.132		$	129.173		$	132.961		$	112.649		$	124.179		$	126.321

Total Domestic Net Flows

Unaudited [Billions of Dollars]

For the Year	2000			2001			2002			2003			2004
Lincoln Retirement(1)	$	(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	Jun 2002			Sep 2002		Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004		Mar 2005
Lincoln Retirement(1)	$	0.223		$	0.068	$	0.074		$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794	$	0.776
Life Insurance Segment		0.385			0.297		0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408		0.260
Investment Management Segment - Retail		0.167			0.048		0.502			0.014			0.302			0.370			0.584			0.969			0.617			0.381			1.170		1.579
Consolidating Adjustments		(0.038	)		0.133		(0.187	)		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154		(0.021	)
Total Retail Net Flows		0.737			0.545		0.791			0.568			0.723			0.965			1.464			1.832			1.669			1.308			2.527		2.593
Investment Management Segment - Instit.		0.455			0.348		0.572			0.330			0.289			0.799			1.061			1.661			2.043			1.379			2.095		1.217
Consolidating Adjustments		(0.026	)		0.008		0.001			(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000		0.040
Total Net Flows	$	1.166		$	0.901	$	1.364		$	0.868		$	1.021		$	1.799		$	2.508		$	3.530		$	3.710		$	2.682		$	4.622	$	3.851

(1) Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.

(2) Amounts for the Investment Management segment exclude 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.

3/31/2005 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(1)																							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(1)																							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
	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Deposits - For the Quarter
Lincoln Retirement - Fixed Annuities	$	0.853		$	1.091		$	0.822		$	0.776		$	0.778		$	0.778		$	0.792		$	0.817		$	0.779		$	0.783		$	0.732		$	0.740
Lincoln Retirement - Variable Annuities(1)		0.787			0.603			0.545			0.648			0.584			0.800			1.087			1.407			1.424			1.424			1.655			1.899
Life Insurance Segment - Life Insurance		0.577			0.484			0.636			0.486			0.526			0.586			0.661			0.501			0.507			0.548			0.686			0.512
Inv Mgmt - Annuities		0.601			0.756			0.510			0.484			0.526			0.570			0.560			0.751			0.666			0.598			0.737			0.735
Inv Mgmt - Mutual Funds		0.562			0.416			0.399			0.450			0.558			0.644			0.663			0.905			0.729			0.680			0.922			1.336
Inv Mgmt - Managed Acct. & Other		0.194			0.293			0.469			0.202			0.196			0.277			0.441			0.793			0.721			0.625			0.860			1.310
Consolidating Adjustments		(0.333	)		(0.437	)		(0.525	)		(0.171	)		(0.211	)		(0.288	)		(0.193	)		(0.271	)		(0.180	)		(0.223	)		(0.302	)		(0.282	)
Total Gross Retail Deposits		3.240			3.206			2.856			2.875			2.958			3.367			4.010			4.903			4.646			4.435			5.290			6.249
Investment Management Segment - Instit.		0.863			0.866			0.994			0.892			0.466			1.088			0.874			1.206			1.372			1.309			2.750			1.787
Consolidating Adjustments		(0.069	)		(0.040	)		(0.076	)		(0.053	)		(0.025	)		(0.025	)		(0.047	)		(0.020	)		(0.035	)		(0.033	)		(0.002	)		(0.015	)
Total Gross Deposits	$	4.034		$	4.032		$	3.773		$	3.714		$	3.400		$	4.430		$	4.837		$	6.090		$	5.983		$	5.711		$	8.038		$	8.021
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	$	16.910		$	17.650		$	18.085		$	18.537		$	18.696		$	18.868		$	18.868		$	18.930		$	19.143		$	19.317		$	19.268		$	19.084
Lincoln Retirement - Variable Annuities(1)		31.206			25.942			27.438			26.474			30.457			31.709			35.786			37.619			38.398			38.698			43.223			43.673
Life Insurance Segment - Life Insurance		11.759			11.726			12.086			12.233			12.663			12.958			13.420			13.606			13.770			13.912			14.382			14.466
Inv Mgmt - Annuities		10.896			9.327			9.688			9.423			10.718			11.104			12.368			12.973			13.037			13.074			14.494			14.356
Inv Mgmt - Mutual Funds		11.036			10.072			10.296			10.241			11.356			11.615			12.614			13.199			12.971			12.234			13.251			13.478
Inv Mgmt - Managed Acct. & Other		1.847			1.820			2.270			2.292			2.737			3.037			3.768			4.366			5.051			5.374			6.642			7.638
Consolidating Adjustments		(6.000	)		(4.940	)		(5.123	)		(4.891	)		(5.628	)		(5.792	)		(6.553	)		(6.881	)		(6.829	)		(7.216	)		(7.476	)		(7.758	)
Total Retail Account Balances		77.654			71.597			74.741			74.309			80.999			83.499			90.271			93.812			95.542			95.393			103.784			104.936
Investment Management Segment - Instit.		12.072			11.126			12.348			12.571			13.943			14.660			16.299			17.215			17.414			18.396			21.643			22.551
Consolidating Adjustments		(1.045	)		(0.866	)		(0.924	)		(0.933	)		(1.049	)		(1.044	)		(1.183	)		(1.176	)		(1.168	)		(1.140	)		(1.248	)		(1.166	)
Total Account Balances	$	88.681		$	81.857		$	86.165		$	85.948		$	93.894		$	97.115		$	105.387		$	109.851		$	111.789		$	112.649		$	124.179		$	126.321

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(1)																					$	(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	Jun 2002			Sep 2002		Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Lincoln Retirement(1)	$	0.223		$	0.068	$	0.074		$	0.095		$	0.099		$	0.277		$	0.536		$	0.712		$	0.701		$	0.716		$	0.794		$	0.776
Life Insurance Segment		0.385			0.297		0.402			0.296			0.324			0.355			0.402			0.248			0.291			0.300			0.408			0.260
Investment Management Segment - Retail		0.167			0.048		0.213			0.048			0.304			0.375			0.598			0.980			0.624			0.386			1.170			1.579
Consolidating Adjustments		(0.038	)		0.133		(0.187	)		0.162			(0.003	)		(0.038	)		(0.058	)		(0.096	)		0.060			(0.089	)		0.154			(0.021	)
Total Retail Net Flows		0.737			0.545		0.502			0.602			0.725			0.970			1.478			1.843			1.676			1.313			2.527			2.593
Investment Management Segment - Instit.		0.328			0.337		0.673			0.562			(0.016	)		0.430			0.457			0.560			0.379			0.850			2.095			1.217
Consolidating Adjustments		(0.026	)		0.008		0.001			(0.030	)		0.009			0.035			(0.017	)		0.038			(0.001	)		(0.006	)		0.000			0.040
Total Net Flows	$	1.039		$	0.890	$	1.176		$	1.134		$	0.718		$	1.435		$	1.918		$	2.441		$	2.054		$	2.157		$	4.622		$	3.851

(1) Includes amounts attributable to Alliance program mutual fund net flows. Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.

(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

(3) Amounts for the Investment Management segment exclude 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.

3/31/2005 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	Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004		Jun 2004		Sep 2004		Dec 2004		Mar 2005
Assets Managed by Source
LNC’s Investments and Cash:
Fixed maturity securities - available for sale	$	29.725	$	32.037	$	32.767	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701	$	34.225
Equity securities - available for sale		0.419		0.397		0.337		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161		0.155
Trading securities														3.120		3.191		3.088		3.224		3.237		3.207
Other investments		7.016		6.928		6.895		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408		6.396
Total LNC Investments		37.160		39.363		40.000		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507		43.982
Separate accounts		40.580		34.069		36.178		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205		55.387
Cash and invested cash		2.265		1.600		1.691		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662		1.499
Total LNC		80.005		75.031		77.869		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374		100.868
Non-affiliate assets managed		39.531		35.650		38.052		37.501		42.917		45.176		49.587		54.977		57.361		37.060		42.966		44.618
Total Assets Managed	$	119.536	$	110.682	$	115.921	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340	$	145.487
Assets Managed by Advisor
Investment Management segment	$	48.742	$	43.362	$	46.495	$	45.718	$	52.456	$	55.129	$	62.794	$	67.075	$	69.643	$	49.076	$	56.029	$	58.022
(See page 28 for additional detail)
DLIA-Corp		38.476		40.416		41.104		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980		44.210
(Assets managed internally-see page 28)
Lincoln (UK)		6.753		6.068		6.351		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599		8.578
Policy Loans (within business units)		1.906		1.899		1.946		1.929		1.920		1.910		1.924		1.877		1.871		1.872		1.871		1.860
Non-LNC Affiliates		23.659		18.937		20.026		19.181		22.439		23.933		25.231		28.497		29.476		29.877		33.862		32.816
Total Assets Managed	$	119.536	$	110.682	$	115.921	$	114.920	$	127.397	$	130.844	$	140.641	$	149.292	$	151.281	$	132.640	$	144.340	$	145.487

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.

3/31/2005 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	Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004		Jun 2004		Sep 2004		Dec 2004		Mar 2005
Assets Managed by Source
LNC’s Investments and Cash:
Fixed maturity securities - available for sale	$	29.725	$	32.037	$	32.767	$	33.887	$	35.355	$	35.384	$	32.769	$	33.667	$	32.808	$	34.223	$	34.701	$	34.225
Equity securities - available for sale		0.419		0.397		0.337		0.249		0.257		0.243		0.199		0.198		0.183		0.178		0.161		0.155
Trading securities														3.120		3.191		3.088		3.224		3.237		3.207
Other investments		7.016		6.928		6.895		6.872		6.980		6.796		6.689		6.446		6.284		6.302		6.408		6.396
Total LNC Investments		37.160		39.363		40.000		41.008		42.592		42.423		42.778		43.502		42.362		43.927		44.507		43.982
Separate accounts		40.580		34.069		36.178		34.775		39.943		41.283		46.565		48.558		49.344		49.658		55.205		55.387
Cash and invested cash		2.265		1.600		1.691		1.635		1.946		1.961		1.711		2.256		2.214		1.996		1.662		1.499
Total LNC		80.005		75.031		77.869		77.419		84.480		85.667		91.054		94.315		93.920		95.580		101.374		100.868
Non-affiliate assets managed		26.639		24.633		26.159		26.309		29.216		30.463		31.842		35.655		36.190		37.060		42.966		44.618
Total Assets Managed	$	106.645	$	99.665	$	104.028	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340	$	145.487
Assets Managed by Advisor
Investment Management segment	$	35.851	$	32.345	$	34.602	$	34.527	$	38.755	$	40.416	$	45.049	$	47.753	$	48.471	$	49.076	$	56.029	$	58.022
(See page 28A for additional detail)
DLIA-Corp		38.476		40.416		41.104		42.130		43.857		42.984		43.024		44.006		42.528		44.047		43.980		44.210
(Assets managed internally-see page 28A)
Lincoln (UK)		6.753		6.068		6.351		5.962		6.726		6.887		7.668		7.837		7.763		7.768		8.599		8.578
Policy Loans (within business units)		1.906		1.899		1.946		1.929		1.920		1.910		1.924		1.877		1.871		1.872		1.871		1.860
Non-LNC Affiliates		23.659		18.937		20.025		19.181		22.439		23.933		25.231		28.497		29.476		29.878		33.862		32.816
Total Assets Managed	$	106.645	$	99.665	$	104.028	$	103.728	$	113.696	$	116.131	$	122.896	$	129.970	$	130.110	$	132.641	$	144.340	$	145.487

NOTE: 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

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.

3/31/2005 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	Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Net Investment Income
Fixed maturity AFS securities	$	542.3		$	546.8		$	536.6		$	487.5		$	493.0		$	496.4		$	501.5		$	514.8		$	505.1
Equity AFS securities		2.8			2.9			3.9			2.7			2.4			2.0			2.2			4.4			1.8
Trading securities											46.5			47.5			48.6			47.7			49.7			47.6
Mortgage loans on real estate		81.6			84.3			94.5			77.9			100.4			92.1			83.8			73.8			70.9
Real estate		10.7			10.0			10.0			13.2			7.6			5.9			8.0			5.4			4.3
Policy loans		30.9			30.6			30.9			30.8			29.2			29.6			29.7			31.3			29.6
Invested cash		4.5			(1.7	)		3.2			1.7			3.5			5.2			5.6			17.9			12.7
Other investments		8.2			10.7			8.9			20.9			15.0			23.8			14.0			2.4			13.5
Investment revenue		681.0			683.5			688.2			681.3			698.6			703.6			692.4			699.8			685.6
Investment expense		(26.3	)		(23.3	)		(23.8	)		(22.1	)		(21.0	)		(20.5	)		(23.0	)		(25.7	)		(25.8	)
Net Investment Income	$	654.6		$	660.2		$	664.4		$	659.2		$	677.5		$	683.1		$	669.4		$	674.1		$	659.8
Gross-up of Tax Exempt Income		1.7			1.8			2.3			1.8			1.7			1.6			1.7			2.6			1.6
Adjusted Net Invest Income	$	656.4		$	662.0		$	666.8		$	661.0		$	679.3		$	684.8		$	671.1		$	676.6		$	661.4
Mean Invested Assets (Amortized Cost)	$	39,733.1		$	40,342.2		$	41,597.9		$	41,999.1		$	42,615.7		$	42,987.4		$	43,499.3		$	43,763.4		$	44,268.5
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets		6.61	%		6.56	%		6.41	%		6.30	%		6.38	%		6.37	%		6.17	%		6.18	%		5.98	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments		(58.2	)		(1.1	)		6.4			42.0			(7.9	)		(11.6	)		(14.5	)		3.9			(6.0	)
Gains (Losses) on Derivatives		(1.2	)		(0.6	)		5.9			(5.7	)		(2.5	)		(1.8	)		(3.4	)		0.3			1.4
Incr (Decr) in Unreal Gains on Sec Avail-for-Sale (after DAC/Tax)		(64.3	)		245.9			(313.4	)		(11.4	)		244.9			(626.0	)		368.1			42.8			(240.0	)
Incr (Decr) on Derivatives		1.0			3.8			(5.6	)		(1.1	)		6.9			(10.5	)		1.3			(5.8	)		(6.3	)
Available-for-Sale and Trading Securities
[Billions of Dollars]
Fixed Maturity Sec (Fair Value)		33.887			35.355			35.384			35.887			36.856			35.894			37.444			37.936			37.429
Fixed Maturity Sec (Amortized Cost)		31.905			32.257			32.896			33.743			34.031			34.648			35.256			35.692			35.849
Equity Securities (Fair Value)		0.249			0.257			0.243			0.201			0.200			0.185			0.180			0.163			0.157
Equity Securities (Amortized Cost)		0.241			0.244			0.223			0.176			0.171			0.162			0.156			0.148			0.145
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA		20.1	%		19.5	%		20.4	%		22.8	%		23.4	%		23.3	%		23.6	%		23.5	%		24.4	%
AA or better		25.7	%		25.1	%		26.4	%		29.3	%		29.6	%		29.5	%		29.7	%		29.9	%		32.2	%
BB or less		6.6	%		6.6	%		6.9	%		6.8	%		6.9	%		7.1	%		6.9	%		7.0	%		6.2	%

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.

3/31/2005 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	%		4.2	%		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	Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004			Jun 2004			Sep 2004			Dec 2004			Mar 2005
Common Stock:
Highest Price	$	52.540		$	42.080		$	35.950		$	35.700		$	37.500		$	38.640		$	41.320		$	48.870		$	50.380		$	47.500		$	48.700		$	49.420
Lowest Price		40.750			29.120			25.150			24.730			27.870			34.630			35.410			40.060			43.260			41.900			40.790			44.360
Closing Price		42.000			30.550			31.580			28.000			35.630			35.380			40.370			47.320			47.250			47.000			46.680			45.140
Yield [3]		3.0	%		4.2	%		4.2	%		4.8	%		3.8	%		3.8	%		3.5	%		3.0	%		3.0	%		3.0	%		3.1	%		3.2	%
Preferred Stock Dividend (Millions)	$	0.016		$	0.015		$	0.015		$	0.015		$	0.014		$	0.016		$	0.014		$	0.013		$	0.013		$	0.013		$	0.013		$	0.012
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	%		23.0	%		23.4	%		23.1	%		22.3	%		21.5	%		20.7	%		22.8	%		22.6	%		22.0	%		20.9	%		20.3	%
Debt to Equity [4]		29.0	%		29.9	%		30.5	%		30.0	%		28.7	%		27.5	%		26.1	%		29.5	%		29.1	%		28.1	%		26.5	%		25.5	%

* Rating based on affiliation with Lincoln Life

[1] Stock prices include the 2-for-1split 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.