1Q22 - Stat Supp

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	Lincoln Financial Group
	Table of Contents


	Notes	1
	Credit Ratings	2
	Consolidated
	Consolidated Statements of Income (Loss)	3
	Consolidated Balance Sheets	4
	Earnings, Shares and Return on Equity	5
	Key Stakeholder Metrics	6
	Segment and Sources of Earnings	7
	Select Earnings Drivers By Segment	8
	Sales By Segment	9
	Operating Revenues and General and Administrative Expenses By Segment	10
	Operating Commissions and Other Expenses	11
	Interest Rate Yields and Spreads By Segment	12
	Select Earnings and Operational Data from Business Segments
	Annuities	13
	Retirement Plan Services	14
	Life Insurance	15
	Group Protection	16
	Other Operations	17
	DAC & Account Value Rollforwards
	Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	18
	Account Value Roll Forwards:
	Annuities	19
	Retirement Plan Services	20
	Life Insurance	21
	Other Information
	Fixed-Income Asset Class	22
	Fixed-Income Credit Quality	23
	Realized Gain (Loss), After-DAC	24
	Select GAAP to Non-GAAP Reconciliations	25

Lincoln Financial Group

Notes

Computations

• The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.

• The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.

• We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation. In addition, for any period where a net loss or adjusted loss from operations is experienced,

shares used in the diluted EPS calculation represent basic shares, as the use of diluted shares would result in a lower loss per share.

• Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. ROE is calculated by dividing annualized net income (loss) (or adjusted income (loss)

from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”). Management evaluates consolidated ROE by both including and excluding the effect

of average goodwill.

• Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding. We provide book value per share, excluding AOCI, to enable

investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes book value per share excluding AOCI is useful to investors because

it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP measure.

• Pre-tax net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted operating revenues less interest credited.

Definitions

Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial

paper outstanding.

Sales as reported consist of the following:

• Annuities and Retirement Plan Services – deposits from new and existing customers;

• Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

• MoneyGuard® linked-benefit products – MoneyGuard® (UL), 15% of total expected premium deposits, and MoneyGuard Market AdvantageSM (VUL), 150% of commissionable premiums;

• Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of

single premium deposits;

• Term – 100% of annualized first-year premiums; and

• Group Protection – annualized first-year premiums from new policies.

Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”)

and deferred front-end loads (“DFEL”) and changes in other contract holder funds.

Sources of earnings are defined as follows:

• Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products less related

expenses.

• Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product and level

of insurance in force.

• Fees on assets under management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.

• Variable annuity (“VA”) riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in

benefit reserves and related expenses.

Page 1a

Lincoln Financial Group

Notes

Non-GAAP Performance Measures

Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.

Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

• Realized gains and losses associated with the following (“excluded realized gain (loss)”):

▪ Sales or disposals and impairments of financial assets;

▪ Changes in the fair value of equity securities;

▪ Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

▪ Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders within our variable annuities;

▪ Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;

▪ Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and

▪ Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to

future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting options”);

• Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);

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

• Gains (losses) on modification or early extinguishment of debt;

• Losses from the impairment of intangible assets;

• Income (loss) from discontinued operations;

• Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of business or blocks of business; and

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.

Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

• Excluded realized gain (loss);

• Revenue adjustments from the initial adoption of new accounting standards;

• Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and

• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

Management believes that the non-GAAP performance measures previously discussed explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying

trends in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many

instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. In addition, we believe that our definitions of adjusted operating revenues and adjusted

income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.

Statistical Supplement is Dated

The financial data in this document is dated May 4, 2022, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.

Page 1b

Lincoln Financial Group

Credit Ratings

Ratings as of May 4, 2022

Standard

A.M Best

Fitch

Moody's

& Poor's

Senior Debt Ratings

BBB+

Baa1

A-

Financial Strength Ratings

The Lincoln National Life Insurance Company

A+

AA-

First Penn-Pacific Life Insurance Company

A+

A-

Lincoln Life & Annuity Company of New York

A+

AA-

Investor Inquiries May Be Directed To:

Albert Copersino, Vice President, Investor Relations

Email: Albert.Copersino@lfg.com

Phone: 203-257-4493

Page 2


Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Revenues
Insurance premiums	$	1,406	$	1,398	$	1,394	$	1,420	$	1,477	5.0%
Fee income		1,592		1,670		1,996		1,628		1,568	-1.5%
Net investment income		1,510		1,584		1,576		1,445		1,412	-6.5%
Realized gain (loss)		(181)		(2)		85		(115)		29	116.0%
Amortization of deferred gain on business
sold through reinsurance		9		9		9		19		19	111.1%
Other revenues		198		192		181		207		182	-8.1%
Total revenues		4,534		4,851		5,241		4,604		4,687	3.4%

Expenses
Interest credited		737		737		750		692		697	-5.4%
Benefits		2,226		1,930		2,122		2,251		2,565	15.2%
Commissions and other expenses		1,231		1,326		1,906		1,328		1,236	0.4%
Interest and debt expense		65		65		73		66		66	1.5%
Spark program expense		13		21		22		30		31	138.5%
Total expenses		4,272		4,079		4,873		4,367		4,595	7.6%
Income (loss) before taxes		262		772		368		237		92	-64.9%
Federal income tax expense (benefit)		37		130		50		17		(12)	NM
Net income (loss)		225		642		318		220		104	-53.8%
Adjustment for LNC stock units in our
deferred compensation plans		-		-		-		-		(1)	NM
Net income (loss) available to common
stockholders – diluted	$	225	$	642	$	318	$	220	$	103	-54.2%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.16	$	3.34	$	1.68	$	1.20	$	0.58	-50.0%

ROE, including AOCI
Net income (loss)		4.3%		12.4%		5.9%		4.2%		2.4%






Page 3


Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)

	As of
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	96,570	$	101,003	$	100,862	$	98,120	$	90,561	-6.2%
U.S. government bonds		444		444		443		433		418	-5.9%
State and municipal bonds		6,625		6,919		6,901		6,621		6,001	-9.4%
Foreign government bonds		485		464		512		432		383	-21.0%
Residential mortgage-backed securities		3,077		3,027		2,935		2,525		2,338	-24.0%
Commercial mortgage-backed securities		1,516		1,578		1,594		1,599		1,592	5.0%
Asset-backed securities		7,996		8,177		8,303		8,512		8,929	11.7%
Hybrid and redeemable preferred securities		600		603		535		504		473	-21.2%
Total fixed maturity AFS securities, net of allowance for credit losses		117,313		122,215		122,085		118,746		110,695	-5.6%
Trading securities		4,365		4,232		4,191		4,482		4,385	0.5%
Equity securities		123		174		243		318		346	181.3%
Mortgage loans on real estate, net of allowance for credit losses		17,255		17,586		17,730		17,991		17,892	3.7%
Policy loans		2,502		2,410		2,379		2,364		2,339	-6.5%
Derivative investments		3,453		4,548		4,828		5,437		4,840	40.2%
Other investments		3,548		3,950		4,069		4,292		4,127	16.3%
Total investments		148,559		155,115		155,525		153,630		144,624	-2.6%
Cash and invested cash		1,350		2,389		2,614		2,612		1,960	45.2%
DAC and VOBA		7,665		6,261		5,965		6,081		8,810	14.9%
Premiums and fees receivable		653		583		584		580		671	2.8%
Accrued investment income		1,301		1,254		1,297		1,189		1,247	-4.2%
Reinsurance recoverables, net of allowance for credit losses		16,289		15,981		15,729		20,295		20,044	23.1%
Funds withheld reinsurance assets		528		527		526		517		510	-3.4%
Goodwill		1,778		1,778		1,778		1,778		1,778	0.0%
Other assets		17,298		17,465		17,367		18,036		17,406	0.6%
Separate account assets		171,339		178,795		175,667		182,583		168,879	-1.4%
Total assets	$	366,760	$	380,148	$	377,052	$	387,301	$	365,929	-0.2%





Page 4a


Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)

	As of
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	39,591	$	40,250	$	40,641	$	41,030	$	39,773	0.5%
Other contract holder funds		107,002		108,778		109,297		111,702		112,901	5.5%
Short-term debt		300		300		300		300		-	-100.0%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		866		866		866		867		867	0.1%
Financial		5,428		5,468		5,457		5,458		5,694	4.9%
Reinsurance-related embedded derivatives		244		328		304		206		-	-100.0%
Funds withheld reinsurance liabilities		1,976		2,027		2,078		2,118		2,164	9.5%
Payables for collateral on investments		7,597		8,199		8,379		8,946		8,927	17.5%
Other liabilities		12,824		13,392		12,893		13,819		12,012	-6.3%
Separate account liabilities		171,339		178,795		175,667		182,583		168,879	-1.4%
Total liabilities		347,167		358,403		355,882		367,029		351,217	1.2%

Stockholders’ Equity
Common stock		5,057		5,021		4,956		4,735		4,586	-9.3%
Retained earnings		8,775		9,245		9,365		9,096		8,876	1.2%
AOCI:
Unrealized investment gains (losses)		6,040		7,756		7,128		6,674		1,485	-75.4%
Foreign currency translation adjustment		(10)		(10)		(14)		(14)		(19)	-90.0%
Funded status of employee benefit plans		(269)		(267)		(265)		(219)		(216)	19.7%
Total AOCI		5,761		7,479		6,849		6,441		1,250	-78.3%
Total stockholders’ equity		19,593		21,745		21,170		20,272		14,712	-24.9%
Total liabilities and stockholders’ equity	$	366,760	$	380,148	$	377,052	$	387,301	$	365,929	-0.2%










Page 4b


Lincoln Financial Group
Earnings, Shares and Return on Equity
Unaudited (millions of dollars, except per share data)

	As of or For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Income (Loss)
Net income (loss)	$	225	$	642	$	318	$	220	$	104	-53.8%
Pre-tax adjusted income (loss) from operations		421		729		354		320		333	-20.9%
After-tax adjusted income (loss) from operations (1)		350		608		307		286		294	-16.0%
Adjusted operating tax rate		16.8%		16.5%		13.3%		10.6%		11.5%

Average Stockholders’ Equity
Average equity, including AOCI	$	21,146	$	20,669	$	21,458	$	20,721	$	17,492	-17.3%
Average AOCI		7,346		6,620		7,164		6,645		3,846	-47.6%
Average equity, excluding AOCI	$	13,800	$	14,049	$	14,294	$	14,076	$	13,646	-1.1%

ROE, Excluding AOCI
Net income (loss)		6.5%		18.3%		8.9%		6.3%		3.0%
Adjusted income (loss) from operations		10.2%		17.3%		8.6%		8.1%		8.6%

Per Share
Net income (loss) (diluted)	$	1.16	$	3.34	$	1.68	$	1.20	$	0.58	-50.0%
Adjusted income (loss) from operations (diluted)		1.82		3.17		1.62		1.56		1.66	-8.8%
Dividends declared during the period		0.42		0.42		0.42		0.45		0.45	7.1%

Book value, including AOCI	$	102.50	$	115.00	$	113.77	$	114.41	$	85.59	-16.5%
Per share impact of AOCI		30.14		39.55		36.81		36.36		7.27	-75.9%
Book value, excluding AOCI	$	72.36	$	75.45	$	76.96	$	78.05	$	78.32	8.2%

Shares
Repurchased during the period		1.9		2.2		3.1		9.1		5.8	205.3%
End-of-period – basic		191.1		189.1		186.1		177.2		171.9	-10.0%
End-of-period – diluted		192.5		191.4		188.1		179.8		173.8	-9.7%
Average for the period – diluted		193.1		192.2		189.1		183.2		176.4	-8.6%

(1) See reconciliation to net income (loss) on page 25.




Page 5


Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)

	As of or For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Cash Returned to Common Stockholders
Shares repurchased	$	105	$	150	$	200	$	650	$	400	281.0%
Common dividends		81		80		79		78		80	-1.2%
Total cash returned to common stockholders	$	186	$	230	$	279	$	728	$	480	158.1%

Leverage Ratio
Short-term debt	$	300	$	300	$	300	$	300	$	-	-100.0%
Long-term debt		6,294		6,334		6,323		6,325		6,561	4.2%
Total debt (1)		6,594		6,634		6,623		6,625		6,561	-0.5%
Less:
Operating debt (2)		866		866		866		867		867	0.1%
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		306		345		333		335		273	-10.8%
Total numerator	$	5,120	$	5,121	$	5,122	$	5,121	$	5,119	0.0%

Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,553	$	13,989	$	14,042	$	13,598	$	13,227	-2.4%
Add: 25% of capital securities and subordinated
notes		302		302		302		302		302	0.0%
Total numerator		5,120		5,121		5,122		5,121		5,119	0.0%
Total denominator	$	18,975	$	19,412	$	19,466	$	19,021	$	18,648	-1.7%

Leverage ratio		27.0%		26.4%		26.3%		26.9%		27.4%

Holding Company Available Liquidity	$	758	$	762	$	754	$	1,117	$	755	-0.4%

(1) Excludes obligations under finance leases and certain financing arrangements of $546 million that are reported in other liabilities on our Consolidated Balance Sheets.
(2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain
on increasing statutory reserves associated with secondary guarantee UL and term policies.






Page 6


Lincoln Financial Group
Segment and Sources of Earnings
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	350	$	380	$	403	$	391	$	351	0.3%
Retirement Plan Services		70		74		72		68		64	-8.6%
Life Insurance		130		317		113		97		65	-50.0%
Group Protection		(33)		59		(40)		(146)		(52)	-57.6%
Other Operations		(96)		(101)		(194)		(90)		(95)	1.0%
Adjusted income (loss) from operations, before
income taxes	$	421	$	729	$	354	$	320	$	333	-20.9%

Income (Loss) from Operations, After-Tax
Annuities	$	290	$	323	$	338	$	332	$	302	4.1%
Retirement Plan Services		57		62		60		57		55	-3.5%
Life Insurance		107		255		93		80		58	-45.8%
Group Protection		(26)		46		(32)		(115)		(41)	-57.7%
Other Operations		(78)		(78)		(152)		(68)		(80)	-2.6%
Adjusted income (loss) from operations	$	350	$	608	$	307	$	286	$	294	-16.0%

	For the Three Months Ended											For the Trailing Twelve Months
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change	3/31/21		3/31/22		Change
Sources of Earnings, Pre-Tax
Investment spread	$	130	$	228	$	152	$	113	$	99	-23.8%	$	197	$	593	201.0%
Mortality/morbidity		39		219		21		(81)		(11)	NM		(107)		149	239.3%
Fees on AUM		332		363		381		355		325	-2.1%		1,206		1,423	18.0%
VA riders		16		20		(6)		23		15	-6.3%		(73)		53	172.6%
Total sources of earnings, before income taxes		517		830		548		410		428	-17.2%		1,223		2,218	81.4%
Other Operations		(96)		(101)		(194)		(90)		(95)	1.0%		(425)		(482)	-13.4%
Adjusted income (loss) from operations, before
income taxes	$	421	$	729	$	354	$	320	$	333	-20.9%	$	798	$	1,736	117.5%

Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		25.2%		27.5%		27.7%		27.6%		23.2%			16.1%		26.7%
Mortality/morbidity		7.5%		26.4%		3.9%		-19.7%		-2.6%			-8.8%		6.7%
Fees on AUM		64.1%		43.6%		69.4%		86.5%		76.0%			98.6%		64.2%
VA riders		3.2%		2.5%		-1.0%		5.6%		3.4%			-5.9%		2.4%
Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%

Page 7

Lincoln Financial Group
Select Earnings Drivers By Segment
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Annuities
Operating revenues	$	1,204	$	1,249	$	1,267	$	1,282	$	1,232	2.3%
Deposits		2,814		3,209		2,707		3,011		2,705	-3.9%
Net flows		(776)		(297)		(841)		(655)		(553)	28.7%
Average account values, net of reinsurance		160,099		166,034		169,581		170,953		163,628	2.2%

Retirement Plan Services
Operating revenues	$	327	$	333	$	328	$	335	$	318	-2.8%
Deposits		2,640		2,789		2,411		3,000		3,367	27.5%
Net flows		347		517		(21)		(380)		946	172.6%
Average account values		89,589		94,096		96,723		98,008		95,843	7.0%

Life Insurance
Operating revenues	$	1,939	$	2,029	$	2,325	$	1,844	$	1,825	-5.9%
Deposits		1,219		1,278		1,324		1,872		1,334	9.4%
Net flows		793		879		871		1,438		883	11.3%
Average account values, net of reinsurance		58,008		59,056		59,642		51,067		51,236	-11.7%
Average in-force face amount		900,973		916,600		935,096		959,478		985,286	9.4%

Group Protection
Operating revenues	$	1,254	$	1,247	$	1,243	$	1,252	$	1,303	3.9%
Insurance premiums		1,119		1,107		1,107		1,117		1,169	4.5%

Consolidated
Adjusted operating revenues (1)	$	4,762	$	4,903	$	5,205	$	4,769	$	4,718	-0.9%
Deposits		6,673		7,276		6,442		7,883		7,406	11.0%
Net flows		364		1,099		9		403		1,276	250.5%
Average account values, net of reinsurance		307,696		319,186		325,946		320,028		310,707	1.0%

(1) See reconciliation to total revenues on page 25.





Page 8


Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Sales
Annuities:
Indexed variable	$	1,480	$	1,600	$	853	$	977	$	1,048	-29.2%
Other variable without GLBs		610		683		739		787		605	-0.8%
Other variable with GLBs		638		742		773		834		678	6.3%
Total variable		2,728		3,025		2,365		2,598		2,331	-14.6%
Fixed		86		184		342		413		374	NM
Total Annuities	$	2,814	$	3,209	$	2,707	$	3,011	$	2,705	-3.9%
Percent with GLBs		22.7%		23.1%		28.6%		27.7%		25.1%
Percent with GLBs, including the impact of VA reinsurance		22.7%		17.2%		20.2%		20.8%		17.9%

Retirement Plan Services:
First-year sales	$	694	$	1,102	$	745	$	1,270	$	1,198	72.6%
Recurring deposits		1,946		1,687		1,666		1,730		2,169	11.5%
Total Retirement Plan Services	$	2,640	$	2,789	$	2,411	$	3,000	$	3,367	27.5%

Life Insurance:
IUL/UL	$	18	$	20	$	24	$	42	$	26	44.4%
MoneyGuard®		16		23		26		36		22	37.5%
VUL		22		27		40		92		34	54.5%
Term		30		35		42		47		43	43.3%
Executive Benefits		28		21		34		37		30	7.1%
Total Life Insurance	$	114	$	126	$	166	$	254	$	155	36.0%

Group Protection:
Life	$	41	$	37	$	22	$	163	$	53	29.3%
Disability		28		37		20		199		47	67.9%
Dental		5		5		6		23		5	0.0%
Total Group Protection	$	74	$	79	$	48	$	385	$	105	41.9%
Percent employee-paid		66.7%		56.3%		50.1%		35.0%		57.0%





Page 9


Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Operating Revenues
Annuities	$	1,204	$	1,249	$	1,267	$	1,282	$	1,232	2.3%
Retirement Plan Services		327		333		328		335		318	-2.8%
Life Insurance		1,939		2,029		2,325		1,844		1,825	-5.9%
Group Protection		1,254		1,247		1,243		1,252		1,303	3.9%
Other Operations		38		45		42		56		40	5.3%
Total segment operating revenues	$	4,762	$	4,903	$	5,205	$	4,769	$	4,718	-0.9%

General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities	$	116	$	121	$	115	$	125	$	112	-3.4%
Retirement Plan Services		69		73		70		80		69	0.0%
Life Insurance		118		126		121		138		117	-0.8%
Group Protection		158		161		163		177		165	4.4%
Other Operations		44		46		143		52		48	9.1%
Total	$	505	$	527	$	612	$	572	$	511	1.2%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		9.7%		9.6%		9.1%		9.7%		9.1%
Retirement Plan Services		21.2%		21.9%		21.5%		23.8%		21.7%
Life Insurance		6.1%		6.2%		5.2%		7.5%		6.4%
Group Protection		12.5%		13.0%		13.1%		14.1%		12.7%
Other Operations		115.6%		100.8%		345.5%		96.8%		116.6%
Total		10.6%		10.7%		11.8%		12.0%		10.8%

(1) See page 11 for general and administrative expenses capitalized.







Page 10


Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	556	$	579	$	662	$	642	$	562	1.1%
Commissions		616		652		656		760		654	6.2%
Taxes, licenses and fees		87		86		79		89		98	12.6%
Interest and debt expense		65		65		66		66		66	1.5%
Expenses associated with reserve financing
and letters of credit		25		25		26		26		26	4.0%
Total adjusted operating commissions and other
expenses incurred		1,349		1,407		1,489		1,583		1,406	4.2%

Less Amounts Capitalized
General and administrative expenses		(51)		(52)		(50)		(70)		(51)	0.0%
Commissions		(233)		(261)		(253)		(361)		(265)	-13.7%
Taxes, licenses and fees		(8)		(11)		(9)		(15)		(11)	-37.5%
Total amounts capitalized		(292)		(324)		(312)		(446)		(327)	-12.0%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,057		1,083		1,177		1,137		1,079	2.1%

Amortization
Amortization of DAC, VOBA and other intangibles		247		317		821		263		289	17.0%
Total operating commissions and other expenses	$	1,304	$	1,400	$	1,998	$	1,400	$	1,368	4.9%













Page 11


Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Annuities
Earned rate on reserves		3.27%		3.10%		3.07%		3.06%		2.99%	(28)
Variable investment income on reserves (1)		0.11%		0.24%		0.28%		0.31%		0.23%	12
Net investment income yield on reserves		3.38%		3.34%		3.35%		3.37%		3.22%	(16)
Interest rate credited to contract holders		2.02%		1.97%		1.90%		1.82%		1.85%	(17)
Interest rate spread		1.36%		1.37%		1.45%		1.55%		1.37%	1
Base spreads excluding variable investment income		1.25%		1.13%		1.17%		1.24%		1.14%	(11)

Retirement Plan Services
Earned rate on reserves		3.64%		3.60%		3.56%		3.51%		3.45%	(19)
Variable investment income on reserves (1)		0.17%		0.21%		0.22%		0.39%		0.19%	2
Net investment income yield on reserves		3.81%		3.81%		3.78%		3.90%		3.64%	(17)
Interest rate credited to contract holders		2.68%		2.69%		2.65%		2.63%		2.55%	(13)
Interest rate spread		1.13%		1.12%		1.13%		1.27%		1.09%	(4)
Base spreads excluding variable investment income		0.96%		0.91%		0.91%		0.88%		0.90%	(6)

Life Insurance – Interest-Sensitive
Earned rate on reserves		4.71%		4.68%		4.64%		4.67%		4.60%	(11)
Variable investment income on reserves (1)		1.05%		1.38%		1.23%		0.85%		0.54%	(51)
Net investment income yield on reserves		5.76%		6.06%		5.87%		5.52%		5.14%	(62)
Interest rate credited to contract holders		3.76%		3.78%		3.76%		3.76%		3.77%	1
Interest rate spread		2.00%		2.28%		2.11%		1.76%		1.37%	(63)
Base spreads excluding variable investment income		0.95%		0.90%		0.88%		0.91%		0.83%	(12)

Total (2)
Earned rate (3)		3.96%		3.94%		3.93%		3.80%		3.80%	(16)
Variable investment income (1) (3)		0.59%		0.78%		0.72%		0.53%		0.36%	(23)
Net investment income yield (3)		4.55%		4.72%		4.65%		4.33%		4.16%	(39)

(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
(2) Includes the results of all of our business segments and Other Operations.
(3) Includes investment yields on reserves and surplus.





Page 12


Lincoln Financial Group
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	32	$	27	$	30	$	27	$	30	-6.3%
Fee income		652		679		690		702		658	0.9%
Net investment income		328		352		371		349		360	9.8%
Operating realized gain (loss)		50		53		49		55		54	8.0%
Amortization of deferred gain		6		6		7		7		6	0.0%
Other revenues		136		132		120		142		124	-8.8%
Total operating revenues		1,204		1,249		1,267		1,282		1,232	2.3%
Operating expenses:
Interest credited		199		199		210		203		207	4.0%
Benefits		141		135		135		138		152	7.8%
Commissions incurred		275		297		276		287		268	-2.5%
Other expenses incurred		255		264		258		280		260	2.0%
Amounts capitalized		(127)		(144)		(113)		(132)		(118)	7.1%
Amortization		111		118		98		115		112	0.9%
Total operating expenses		854		869		864		891		881	3.2%
Income (loss) from operations before taxes		350		380		403		391		351	0.3%
Federal income tax expense (benefit)		60		57		65		59		49	-18.3%
Income (loss) from operations	$	290	$	323	$	338	$	332	$	302	4.1%

Effective Federal Income Tax Rate		17.2%		15.0%		16.1%		15.1%		14.0%

Average Equity, Excluding Goodwill and AOCI	$	5,071	$	5,077	$	5,282	$	5,310	$	5,298	4.5%

ROE, Excluding Goodwill and AOCI		22.9%		25.5%		25.6%		25.0%		22.8%

Return on Average Account Values		72		78		80		78		74	2

Income (Loss) from Operations
Variable annuity		261		293		287		295		269	3.1%
Fixed annuity		29		30		51		37		33	13.8%

Account Values, Net of Reinsurance – End of Period
Variable account values without GLBs	$	60,002	$	64,495	$	65,223	$	69,625	$	66,584	11.0%
Variable account values with GLBs		84,155		86,901		84,320		86,234		78,837	-6.3%
Fixed account values		16,966		16,911		16,804		16,866		16,723	-1.4%
Total account values		161,123		168,307		166,347		172,725		162,144	0.6%
Percent variable account values with GLBs		52.2%		51.6%		50.7%		49.9%		48.6%


Page 13


Lincoln Financial Group
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	71	$	74	$	75	$	76	$	70	-1.4%
Net investment income		248		250		245		250		238	-4.0%
Other revenues		8		9		8		9		10	25.0%
Total operating revenues		327		333		328		335		318	-2.8%
Operating expenses:
Interest credited		155		155		153		154		152	-1.9%
Benefits		1		1		1		1		1	0.0%
Commissions incurred		21		20		21		21		20	-4.8%
Other expenses incurred		77		79		78		89		79	2.6%
Amounts capitalized		(5)		(4)		(5)		(7)		(5)	0.0%
Amortization		8		8		8		9		7	-12.5%
Total operating expenses		257		259		256		267		254	-1.2%
Income (loss) from operations before taxes		70		74		72		68		64	-8.6%
Federal income tax expense (benefit)		13		12		12		11		9	-30.8%
Income (loss) from operations	$	57	$	62	$	60	$	57	$	55	-3.5%

Effective Federal Income Tax Rate		18.9%		16.7%		16.8%		16.3%		13.7%

Average Equity, Excluding Goodwill and AOCI	$	1,526	$	1,535	$	1,492	$	1,477	$	1,534	0.5%

ROE, Excluding Goodwill and AOCI		14.9%		16.1%		16.1%		15.4%		14.4%

Return on Average Account Values		25		26		25		23		23	(2)

Pre-tax Net Margin		40.4%		41.5%		41.2%		37.6%		38.6%

Net Flows by Market
Small Market	$	(28)	$	106	$	(43)	$	98	$	(116)	NM
Mid - Large Market		680		755		423		(58)		1,350	98.5%
Multi-Fund® and Other		(305)		(344)		(401)		(420)		(288)	5.6%

Net Flows – Trailing Twelve Months	$	(158)	$	1,566	$	1,183	$	464	$	1,062	NM





Page 14


Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	253	$	258	$	256	$	266	$	277	9.5%
Fee income		867		915		1,230		848		846	-2.4%
Net investment income		809		852		832		716		688	-15.0%
Operating realized gain (loss)		(2)		(2)		-		(4)		1	150.0%
Amortization of deferred gain on
business sold through reinsurance		3		3		3		13		12	300.0%
Other revenues		9		3		4		5		1	-88.9%
Total operating revenues		1,939		2,029		2,325		1,844		1,825	-5.9%
Operating expenses:
Interest credited		370		372		375		322		325	-12.2%
Benefits		1,173		999		976		1,126		1,126	-4.0%
Commissions incurred		120		130		153		236		156	30.0%
Other expenses incurred		194		208		201		234		202	4.1%
Amounts capitalized		(138)		(154)		(175)		(276)		(182)	-31.9%
Amortization		90		157		682		105		133	47.8%
Total operating expenses		1,809		1,712		2,212		1,747		1,760	-2.7%
Income (loss) from operations before taxes		130		317		113		97		65	-50.0%
Federal income tax expense (benefit)		23		62		20		17		7	-69.6%
Income (loss) from operations	$	107	$	255	$	93	$	80	$	58	-45.8%

Effective Federal Income Tax Rate		17.7%		19.7%		17.6%		17.1%		11.3%

Average Equity, Excluding Goodwill and AOCI	$	8,909	$	9,035	$	9,245	$	8,971	$	8,831	-0.9%

ROE, Excluding Goodwill and AOCI		4.8%		11.3%		4.0%		3.6%		2.6%

Average Account Values, Net of Reinsurance	$	58,008	$	59,056	$	59,642	$	51,067	$	51,236	-11.7%

In-Force Face Amount
UL and other	$	358,044	$	357,670	$	357,624	$	362,106	$	361,490	1.0%
Term insurance		549,960		567,525		587,372		611,854		635,123	15.5%
Total in-force face amount	$	908,004	$	925,195	$	944,996	$	973,960	$	996,613	9.8%




Page 15


Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,119	$	1,107	$	1,107	$	1,117	$	1,169	4.5%
Net investment income		91		95		91		90		85	-6.6%
Other revenues		44		45		45		45		49	11.4%
Total operating revenues		1,254		1,247		1,243		1,252		1,303	3.9%
Operating expenses:
Interest credited		1		1		1		2		1	0.0%
Benefits		970		877		971		1,072		1,027	5.9%
Commissions incurred		91		87		88		95		94	3.3%
Other expenses incurred		208		210		209		225		217	4.3%
Amounts capitalized		(21)		(21)		(19)		(30)		(21)	0.0%
Amortization		38		34		33		34		37	-2.6%
Total operating expenses		1,287		1,188		1,283		1,398		1,355	5.3%
Income (loss) from operations before taxes		(33)		59		(40)		(146)		(52)	-57.6%
Federal income tax expense (benefit)		(7)		13		(8)		(31)		(11)	-57.1%
Income (loss) from operations	$	(26)	$	46	$	(32)	$	(115)	$	(41)	-57.7%

Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%

Average Equity, Excluding Goodwill and AOCI	$	2,718	$	2,731	$	2,759	$	2,810	$	2,899	6.7%

ROE, Excluding Goodwill and AOCI		-3.8%		6.8%		-4.6%		-16.4%		-5.6%

Loss Ratios by Product Line
Life		101.0%		79.6%		105.1%		108.7%		91.0%
Disability		78.8%		79.0%		77.7%		90.2%		87.2%
Dental		76.8%		81.6%		75.7%		71.1%		71.1%
Total		86.8%		79.3%		87.8%		96.1%		88.0%








Page 16


Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Other Operations
Operating revenues:
Insurance premiums	$	2	$	6	$	1	$	10	$	1	-50.0%
Net investment income		34		35		37		40		41	20.6%
Other revenues		2		4		4		6		(2)	NM
Total operating revenues		38		45		42		56		40	5.3%
Operating expenses:
Interest credited		12		10		10		10		12	0.0%
Benefits		15		25		21		21		14	-6.7%
Commissions and other expenses		29		25		117		19		12	-58.6%
Interest and debt expense		65		65		66		66		66	1.5%
Spark program expense		13		21		22		30		31	138.5%
Total operating expenses		134		146		236		146		135	0.7%
Income (loss) from operations before taxes		(96)		(101)		(194)		(90)		(95)	1.0%
Federal income tax expense (benefit)		(18)		(23)		(42)		(22)		(15)	16.7%
Income (loss) from operations	$	(78)	$	(78)	$	(152)	$	(68)	$	(80)	-2.6%



















Page 17


Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	6,025	$	7,884	$	6,472	$	6,169	$	6,284	4.3%
Business acquired (sold) through reinsurance		-		-		-		(650)		-	NM
Deferrals		295		325		312		446		328	11.2%
Operating amortization		(244)		(314)		(820)		(259)		(284)	-16.4%
Deferrals, net of operating amortization		51		11		(508)		187		44	-13.7%
Amortization associated with benefit ratio unlocking		(6)		(11)		4		(11)		36	NM
Adjustment related to realized (gains) losses		50		(10)		10		36		(37)	NM
Adjustment related to unrealized (gains) losses		1,764		(1,402)		191		553		2,693	52.7%
Balance as of end-of-period	$	7,884	$	6,472	$	6,169	$	6,284	$	9,020	14.4%

DFEL
Balance as of beginning-of-period	$	401	$	559	$	433	$	396	$	415	3.5%
Business acquired (sold) through reinsurance		-		-		-		(290)		-	NM
Deferrals		231		240		251		294		256	10.8%
Operating amortization		(131)		(179)		(522)		(147)		(151)	-15.3%
Deferrals, net of operating amortization		100		61		(271)		147		105	5.0%
Amortization associated with benefit ratio unlocking		(1)		(2)		1		(1)		6	NM
Adjustment related to realized (gains) losses		1		(2)		(8)		(1)		(6)	NM
Adjustment related to unrealized (gains) losses		58		(183)		241		164		843	NM
Balance as of end-of-period	$	559	$	433	$	396	$	415	$	1,363	143.8%

DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,787	$	4,771	$	4,561	$	4,637	$	6,049	4.5%











Page 18


Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Fixed Annuities
Balance as of beginning-of-period	$	25,405	$	25,008	$	24,840	$	24,642	$	24,728	-2.7%
Gross deposits		86		184		342		413		374	NM
Full surrenders and deaths		(494)		(482)		(489)		(415)		(420)	15.0%
Other contract benefits		(141)		(115)		(163)		(198)		(171)	-21.3%
Net flows		(549)		(413)		(310)		(200)		(217)	60.5%
Contract holder assessments		(25)		(22)		(20)		(17)		(15)	40.0%
Reinvested interest credited		177		267		132		303		(21)	NM
Balance as of end-of-period, gross		25,008		24,840		24,642		24,728		24,475	-2.1%
Reinsurance ceded		(8,042)		(7,929)		(7,838)		(7,862)		(7,752)	3.6%
Balance as of end-of-period, net	$	16,966	$	16,911	$	16,804	$	16,866	$	16,723	-1.4%

Variable Annuities
Balance as of beginning-of-period	$	140,313	$	144,157	$	151,396	$	149,550	$	155,866	11.1%
Gross deposits		2,728		3,025		2,365		2,598		2,331	-14.6%
Full surrenders and deaths		(1,901)		(1,871)		(1,875)		(1,858)		(1,567)	17.6%
Other contract benefits		(1,054)		(1,038)		(1,021)		(1,195)		(1,100)	-4.4%
Net flows		(227)		116		(531)		(455)		(336)	-48.0%
Contract holder assessments		(684)		(705)		(723)		(727)		(692)	-1.2%
Change in market value and reinvestment		4,755		7,828		(592)		7,498		(9,410)	NM
Balance as of end-of-period, gross		144,157		151,396		149,550		155,866		145,428	0.9%
Reinsurance ceded		-		-		(7)		(7)		(7)	NM
Balance as of end-of-period, net	$	144,157	$	151,396	$	149,543	$	155,859	$	145,421	0.9%

Total
Balance as of beginning-of-period	$	165,718	$	169,165	$	176,236	$	174,192	$	180,594	9.0%
Gross deposits		2,814		3,209		2,707		3,011		2,705	-3.9%
Full surrenders and deaths		(2,395)		(2,353)		(2,364)		(2,273)		(1,987)	17.0%
Other contract benefits		(1,195)		(1,153)		(1,184)		(1,393)		(1,271)	-6.4%
Net flows		(776)		(297)		(841)		(655)		(553)	28.7%
Contract holder assessments		(709)		(727)		(743)		(744)		(707)	0.3%
Change in market value and reinvestment		4,932		8,095		(460)		7,801		(9,431)	NM
Balance as of end-of-period, gross		169,165		176,236		174,192		180,594		169,903	0.4%
Reinsurance ceded		(8,042)		(7,929)		(7,845)		(7,869)		(7,759)	3.5%
Balance as of end-of-period, net	$	161,123	$	168,307	$	166,347	$	172,725	$	162,144	0.6%

Page 19

Lincoln Financial Group
Retirement Plan Services – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
General Account
Balance as of beginning-of-period	$	22,916	$	23,008	$	22,995	$	23,152	$	23,639	3.2%
Gross deposits		490		424		504		908		572	16.7%
Withdrawals		(583)		(590)		(647)		(631)		(554)	5.0%
Net flows		(93)		(166)		(143)		277		18	119.4%
Transfers between fixed and variable accounts		35		3		149		59		154	NM
Contract holder assessments		(3)		(3)		(3)		(4)		(3)	0.0%
Reinvestment interest credited		153		153		154		155		150	-2.0%
Balance as of end-of-period	$	23,008	$	22,995	$	23,152	$	23,639	$	23,958	4.1%

Separate Account and Mutual Funds
Balance as of beginning-of-period	$	65,391	$	68,149	$	72,913	$	72,454	$	75,475	15.4%
Gross deposits		2,150		2,365		1,907		2,092		2,795	30.0%
Withdrawals		(1,710)		(1,682)		(1,785)		(2,749)		(1,867)	-9.2%
Net flows		440		683		122		(657)		928	110.9%
Transfers between fixed and variable accounts		(141)		(43)		(154)		(77)		(230)	-63.1%
Contract holder assessments		(62)		(65)		(66)		(67)		(64)	-3.2%
Change in market value and reinvestment		2,521		4,189		(361)		3,822		(4,724)	NM
Balance as of end-of-period	$	68,149	$	72,913	$	72,454	$	75,475	$	71,385	4.7%

Total
Balance as of beginning-of-period	$	88,307	$	91,157	$	95,908	$	95,606	$	99,114	12.2%
Gross deposits		2,640		2,789		2,411		3,000		3,367	27.5%
Withdrawals		(2,293)		(2,272)		(2,432)		(3,380)		(2,421)	-5.6%
Net flows		347		517		(21)		(380)		946	172.6%
Transfers between fixed and variable accounts		(106)		(40)		(5)		(18)		(76)	28.3%
Contract holder assessments		(65)		(68)		(69)		(71)		(67)	-3.1%
Change in market value and reinvestment		2,674		4,342		(207)		3,977		(4,574)	NM
Balance as of end-of-period	$	91,157	$	95,908	$	95,606	$	99,114	$	95,343	4.6%







Page 20

Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
General Account
Balance as of beginning-of-period	$	38,136	$	38,053	$	38,013	$	37,969	$	38,094	-0.1%
Deposits		899		895		894		1,050		878	-2.3%
Withdrawals and deaths		(296)		(243)		(237)		(213)		(315)	-6.4%
Net flows		603		652		657		837		563	-6.6%
Contract holder assessments		(1,073)		(1,074)		(1,086)		(1,107)		(1,131)	-5.4%
Reinvested interest credited		387		382		385		395		395	2.1%
Balance as of end-of-period, gross		38,053		38,013		37,969		38,094		37,921	-0.3%
Reinsurance ceded		(636)		(628)		(620)		(5,562)		(5,544)	NM
Balance as of end-of-period, net	$	37,417	$	37,385	$	37,349	$	32,532	$	32,377	-13.5%

Separate Account
Balance as of beginning-of-period	$	21,078	$	21,983	$	23,361	$	23,250	$	24,907	18.2%
Deposits		320		383		430		822		456	42.5%
Withdrawals and deaths		(130)		(156)		(216)		(221)		(136)	-4.6%
Net flows		190		227		214		601		320	68.4%
Contract holder assessments		(197)		(203)		(211)		(247)		(218)	-10.7%
Change in market value and reinvestment		912		1,354		(114)		1,303		(1,545)	NM
Balance as of end-of-period, gross		21,983		23,361		23,250		24,907		23,464	6.7%
Reinsurance ceded		(990)		(1,044)		(1,018)		(5,593)		(5,215)	NM
Balance as of end-of-period, net	$	20,993	$	22,317	$	22,232	$	19,314	$	18,249	-13.1%

Total
Balance as of beginning-of-period	$	59,214	$	60,036	$	61,374	$	61,219	$	63,001	6.4%
Deposits		1,219		1,278		1,324		1,872		1,334	9.4%
Withdrawals and deaths		(426)		(399)		(453)		(434)		(451)	-5.9%
Net flows		793		879		871		1,438		883	11.3%
Contract holder assessments		(1,270)		(1,277)		(1,297)		(1,354)		(1,349)	-6.2%
Change in market value and reinvestment		1,299		1,736		271		1,698		(1,150)	NM
Balance as of end-of-period, gross		60,036		61,374		61,219		63,001		61,385	2.2%
Reinsurance ceded		(1,626)		(1,672)		(1,638)		(11,155)		(10,759)	NM
Balance as of end-of-period, net	$	58,410	$	59,702	$	59,581	$	51,846	$	50,626	-13.3%




Page 21


Lincoln Financial Group
Fixed-Income Asset Class
Unaudited (millions of dollars)

	As of 3/31/21				As of 12/31/21				As of 3/31/22
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost
Industry corporate bonds:
Financial services	$	16,055		15.2%	$	16,438		15.6%	$	16,969		15.8%
Basic industry		4,700		4.4%		4,436		4.2%		4,532		4.2%
Capital goods		7,459		7.0%		7,316		7.0%		7,400		6.9%
Communications		4,371		4.1%		4,124		3.9%		4,234		3.9%
Consumer cyclical		5,566		5.3%		5,811		5.5%		6,070		5.6%
Consumer non-cyclical		16,795		15.9%		16,905		16.1%		17,082		15.9%
Energy		5,469		5.2%		4,932		4.7%		4,871		4.5%
Technology		4,903		4.6%		5,173		4.9%		5,242		4.9%
Transportation		3,421		3.2%		3,414		3.2%		3,536		3.3%
Industrial other		2,133		2.0%		2,159		2.1%		2,283		2.1%
Utilities		14,123		13.2%		13,785		13.0%		14,036		13.1%
Government-related entities		1,871		1.8%		1,863		1.8%		1,820		1.7%
Residential mortgage-backed securities ("RMBS")
Agency backed		2,401		2.3%		1,973		1.9%		1,921		1.8%
Non-agency backed		418		0.4%		360		0.3%		367		0.3%
Commercial mortgage-backed securities ("CMBS")		1,464		1.4%		1,552		1.5%		1,656		1.5%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")		6,323		6.0%		6,356		6.0%		6,646		6.2%
Other ABS		1,557		1.5%		2,083		2.0%		2,399		2.2%
Municipals		5,474		5.2%		5,322		5.1%		5,380		5.0%
Government:
United States		393		0.4%		375		0.4%		392		0.4%
Foreign		428		0.4%		373		0.4%		358		0.3%
Hybrid & redeemable preferred securities		528		0.5%		408		0.4%		408		0.4%
Total fixed maturity AFS securities, net of allowance for credit losses, at amortized cost		105,852		100.0%		105,158		100.0%		107,602		100.0%
Trading Securities		4,067				4,170				4,348
Equity Securities		125				285				307
Total fixed maturity AFS, trading and equity securities	$	110,044			$	109,613			$	112,257





Page 22


Lincoln Financial Group
Fixed-Income Credit Quality
Unaudited (millions of dollars)

	As of 3/31/21				As of 12/31/21				As of 3/31/22
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost (1)
NAIC 1 (AAA-A)	$	58,414		55.1%	$	58,542		55.7%	$	59,694		55.5%
NAIC 2 (BBB)		43,248		40.9%		42,797		40.7%		44,120		41.0%
Total investment grade		101,662		96.0%		101,339		96.4%		103,814		96.5%

NAIC 3 (BB)		2,817		2.8%		2,278		2.1%		2,148		1.9%
NAIC 4 (B)		1,323		1.2%		1,424		1.4%		1,479		1.4%
NAIC 5 (CCC and lower)		48		0.0%		51		0.0%		95		0.1%
NAIC 6 (in or near default)		2		0.0%		66		0.1%		66		0.1%
Total below investment grade		4,190		4.0%		3,819		3.6%		3,788		3.5%
Total	$	105,852		100.0%	$	105,158		100.0%	$	107,602		100.0%

Commercial Mortgage Loans, at Amortized Cost (1)(2)
CM1 (AAA-A)	$	13,366		80.2%	$	14,028		81.7%	$	13,912		82.4%
CM2 (BBB)		2,959		17.8%		2,878		16.8%		2,695		16.0%
CM3-7 (BB and lower)		342		2.0%		265		1.5%		263		1.6%
Total	$	16,667		100.0%	$	17,171		100.0%	$	16,870		100.0%

Total Fixed Maturity AFS Securities and Commercial Mortgage Loans, at Amortized Cost (1)(2)
AAA-A	$	71,780		58.6%	$	72,570		59.3%	$	73,606		59.1%
BBB		46,207		37.7%		45,675		37.3%		46,815		37.6%
BB and lower		4,532		3.7%		4,084		3.4%		4,051		3.3%
Total	$	122,519		100.0%	$	122,329		100.0%	$	124,472		100.0%

(1) Ratings are based upon the designations determined and provided by the National Association of Insurance Commissioners (“NAIC”) or based upon ratings from credit rating
agencies to derive the NAIC designation.
(2) CM ratings reflect the risk-based capital risk category for commercial mortgage loans. Letter ratings are assumed NAIC equivalent ratings where NAIC 1 = CM1, NAIC 2 = CM2
and NAIC 3-6 = CM3-7.







Page 23

Lincoln Financial Group
Realized Gain (Loss), After-DAC
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Components of Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	48	$	51	$	49	$	51	$	55	14.6%
Total excluded realized gain (loss)		(229)		(53)		36		(166)		(26)	88.6%
Total realized gain (loss), pre-tax	$	(181)	$	(2)	$	85	$	(115)	$	29	116.0%

Components of Excluded Realized Gain (Loss), After-Tax
Credit loss benefit (expense) on mortgage loans on
real estate	$	17	$	8	$	28	$	26	$	13	-23.5%
Credit loss benefit (expense) on other financial assets		(1)		(3)		(9)		5		(4)	NM
Realized gain (loss) related to certain financial assets		1		(5)		(4)		(6)		(7)	NM
Realized gain (loss) on equity securities		8		16		3		4		3	-62.5%
Realized gain (loss) on the mark-to-market on certain
instruments		19		(2)		8		34		(9)	NM
Realized gain (loss) related to financial assets, after-tax		44		14		26		63		(4)	NM
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged and benefit ratio unlocking		(42)		13		(4)		(78)		(247)	NM
GLB non-performance risk component		(144)		(1)		(2)		(47)		18	112.5%
Total variable annuity net derivative results		(186)		12		(6)		(125)		(229)	-23.1%
Indexed annuity forward-starting option		17		8		(3)		7		43	152.9%
Excluded realized gain (loss), including
benefit ratio unlocking, after-tax		(125)		34		17		(55)		(190)	-52.0%
Less: benefit ratio unlocking, after-tax		55		77		(12)		77		(170)	NM
Total excluded realized gain (loss), after-tax	$	(180)	$	(43)	$	29	$	(132)	$	(20)	88.9%












Page 24

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/21		6/30/21		9/30/21		12/31/21		3/31/22		Change
Revenues
Total revenues	$	4,534	$	4,851	$	5,241	$	4,604	$	4,687	3.4%
Less:
Excluded realized gain (loss)		(229)		(53)		36		(166)		(26)	88.6%
Amortization of DFEL associated with
benefit ratio unlocking		1		1		-		1		(5)	NM
Adjusted operating revenues	$	4,762	$	4,903	$	5,205	$	4,769	$	4,718	-0.9%

Net Income
Net income (loss)	$	225	$	642	$	318	$	220	$	104	-53.8%
Less:
Excluded realized gain (loss), after-tax		(180)		(43)		29		(132)		(20)	88.9%
Benefit ratio unlocking, after-tax		55		77		(12)		77		(170)	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		-		-		-		(11)		-	NM
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		(6)		-		-	NM
Total adjustments		(125)		34		11		(66)		(190)	-52.0%
Adjusted income (loss) from operations	$	350	$	608	$	307	$	286	$	294	-16.0%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.16	$	3.34	$	1.68	$	1.20	$	0.58	-50.0%
Less:
Excluded realized gain (loss), after-tax		(0.94)		(0.22)		0.15		(0.72)		(0.11)	88.3%
Benefit ratio unlocking, after-tax		0.28		0.39		(0.06)		0.42		(0.97)	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		-		-		-		(0.06)		-	NM
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		(0.03)		-		-	NM
Adjusted income (loss) from operations	$	1.82	$	3.17	$	1.62	$	1.56	$	1.66	-8.8%






Page 25