UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

February 8, 2024
Date of Report (Date of earliest event reported)

                  Lincoln National Corporation             
(Exact name of registrant as specified in its charter)



Indiana1-602835-1140070
(State or other jurisdiction(Commission(IRS Employer
of incorporation)File Number)Identification No.)


150 N. Radnor Chester Road, Radnor, PA 19087
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (484) 583-1400

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

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

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

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
__________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common StockLNCNew York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 9.000% Non-Cumulative Preferred Stock, Series D
LNC PRDNew York Stock Exchange
__________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐






Item 2.02. Results of Operations and Financial Condition.

On February 8, 2024, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter and full year ended December 31, 2023, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The Company’s statistical supplement for the quarter ended December 31, 2023, is attached as Exhibit 99.2 and is incorporated herein by reference.

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure.

On February 8, 2024, in connection with the Company’s fourth quarter 2023 earnings conference call scheduled for the same date, the Company made available on its website a fourth quarter 2023 investor outlook presentation dated February 8, 2024, a copy of which is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

This presentation is being furnished under this Item 7.01 and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in Exhibit 99.3 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.
The following exhibits are being furnished with this Form 8-K.





















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

LINCOLN NATIONAL CORPORATION
By/s/ Adam Cohen
Name:Adam Cohen
Title:Senior Vice President and Chief Accounting Officer

    

Date: February 8, 2024



image_0.jpg

FOR IMMEDIATE RELEASE

Lincoln Financial Group Reports 2023 Fourth Quarter and Full Year Results
____________________________________
Radnor, PA, February 8, 2024: Lincoln Financial Group (NYSE: LNC) today reported financial results for the fourth quarter and full year ended December 31, 2023.
•Net loss available to common stockholders was $(1.2) billion, or $(7.35) per diluted share.
•Adjusted operating income available to common stockholders was $246 million, or $1.45 per diluted share.
•The primary differences between net income and adjusted operating income resulted from the following non-economic factors:
◦$(0.8) billion of the net loss, or $(4.71) per diluted share, primarily due to changes in market risk benefits driven by lower interest rates, which more than offset the benefit of higher equity markets.
◦$(0.6) billion of the net loss, or $(3.67) per diluted share, was driven by a change in the fair value of an embedded derivative related to the Fortitude Re reinsurance transaction, with a direct offset in other comprehensive income.
•Expected year-end risk-based-capital (RBC) ratio was in the range of 400-410%, an estimated increase of more than 20 percentage points from the 375-385% range at the end of the 2023 third quarter.

“The 2023 fourth quarter marked a significant step forward in rebuilding capital, and we expect our year-end risk-based capital ratio to be above our target of 400%,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial Group. “We delivered improved operating performance led by our Group Protection business, record sales in Annuities, and more stable Life earnings. In Retirement Plan Services, we achieved our ninth consecutive year of positive flows. We are making meaningful progress in resetting our businesses for profitable organic growth as we reposition our product sales to a more capital-efficient and higher risk-adjusted return mix supported by our leading distribution.

“Additionally, we closed a major reinsurance transaction with Fortitude Re and announced the agreement to sell our wealth management business to Osaic, Inc. As we look ahead, we will build on our solid foundation and strong momentum to further strengthen our balance sheet, improve free cash flow, and grow profitably as we position our company to deliver increasing shareholder value.”



Business Highlights
image.jpg
Our 2023 fourth-quarter and full-year results were driven by substantial progress in each of our businesses and reflect our focused execution as we advance on our multi-year journey to transform our business.

•Group Protection delivered record full-year earnings and strong top-line growth. Group’s margin grew over 400 basis points year over year to 5.5%, excluding the benefit from the annual assumption review. This result was attributable to disciplined pricing and improved risk results.
•Annuities delivered a record sales quarter, driven by strength in fixed annuities which surpassed the $2 billion mark in the quarter for the first time. This strong growth was driven by our strategic positioning across fixed product categories and with select distribution partners.
•Life Insurance sales declined for the fourth quarter and full year, driven by our intentional strategic realignment to more accumulation products, which are expected to deliver more stable cash flows and higher risk-adjusted margins.
•Retirement Plan Services 2023 fourth-quarter and full-year results were below expectations, and we are taking actions to regain momentum and drive long-term sustainable growth. Retirement achieved its ninth consecutive year of positive flows, surpassing $100 billion in assets under management for the first time.
•Our reinsurance transaction with Fortitude Re closed during the quarter, de-risking and strengthening our balance sheet while driving increased free cash flow.
•We announced the sale of our wealth management business to Osaic, Inc., which is expected to close in the first half of 2024 and to provide at least $700 million of capital benefit.
•We continued to invest in our technology and infrastructure to support future growth, including digital platforms to enhance the customer experience and innovative tools to drive more production for our distribution force.










Earnings Summary
image.jpg
For the Three Months Ended December 31
For the Twelve Months Ended December 31
(in millions, except per share data)
12/31/2022(2)
12/31/2023
12/31/2022(2)
12/31/2023
Net Income (Loss)
$812
$(1,235)
$1,358
$(752)
Net Income (Loss) Available to Common Stockholders
807
(1,246)
1,345
(835)
Net Income (Loss) per Diluted Share Available to Common Stockholders(1)
4.73
(7.35)
7.78
(4.92)
Adjusted Income (Loss) from Operations
134
258
(1,167)
973
Adjusted Income (Loss) from Operations Available to Common Stockholders
129
246
(1,180)
890
Adjusted Income (Loss) from Operations per Diluted Share Available to Common Stockholders(1)
$0.76
$1.45
$(6.90)
$5.22
(1) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of diluted shares would result in a lower loss per share.
(2) Prior-year numbers have been adjusted to reflect LDTI accounting.

Condensed Reconciliation of Net Income to Adjusted Income from Operations(1)image.jpg
For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022(2)
12/31/2023
12/31/2022(2)
12/31/2023
Net income (loss) available to common stockholders – diluted
$807
$(1,246)
$1,345
$(835)
Less:
Preferred stock dividends declared
--
(11)
--
(82)
Adjustment for deferred units of LNC stock in deferred compensation plans
(5)
--
(13)
(1)
Net income (loss)
812
(1,235)
1,358
(752)
Less:
Non-economic market risk benefit impacts, related to net annuity product, after-tax
674
(797)
3,266
52
Net life insurance product features, after-tax
6
(178)
21
(310)
Changes in fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax
(5)
(613)
(41)
(633)
Investment gains (losses), after-tax
11
136
16
(744)
Other
(8)
(41)
(737)
(90)
Adjusted income (loss) from operations
$134
$258
$(1,167)
$973
Adjusted income (loss) from operations available to common stockholders$129$246$(1,180)$890
(1) Refer to the full reconciliation of Net Income to Adjusted Income from Operations at the back of this press release.
(2) Prior-year numbers have been adjusted to reflect LDTI accounting.

•The 2023 fourth quarter included a $(0.8) billion net loss primarily due to changes in market risk benefits driven by lower interest rates, which more than offset the benefit of higher equity markets.
•The 2023 fourth quarter and full year included a $(0.6) billion net loss driven by the change in fair value of an embedded derivative related to the Fortitude Re reinsurance transaction, with a direct offset in other comprehensive income.
•The 2023 full year investment gains (losses), after-tax, of $(0.7) billion included a $(0.6) billion loss on the sale of fixed maturity AFS securities as part of the Fortitude Re reinsurance transaction.











Variable Investment Income
image.jpg
Alternative Investment Income, after-tax(1)
For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023
12/31/2022
12/31/2023
Annuities
$1
$2
$5
$3
$3
$6
$13
Life Insurance
7
37
53
34
3938
163
Group Protection
1
2
2
2
2
4
7
Retirement Plan Services
1132238
Other Operations
—
—
—
—
—
11
Consolidated
$10$42$63$41$46$52$192
(1) Excludes alternative investment income on investments supporting our modified coinsurance and coinsurance with funds withheld agreements as we have limited economic interest in those investments.

Prepayment Income, after-tax
For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023
12/31/2022
12/31/2023
Annuities
$1
$1
$—
$1
$1
$24
$2
Life Insurance
5
2
1
—
2
30
4
Group Protection
—
—
—
—
—
5
1
Retirement Plan Services
1
—
1
—
—
18
1
Other Operations
—
—
—
—
—
5
—
Consolidated
$7
$3
$2
$1
$3
$82
$8

Items Impacting Segment Resultsimage.jpg
For the Three Months Ended December 31, 2023
(in millions)
Annuities
Life Insurance
Group Protection
Retirement Plan Services
Other Operations
After-tax segment impacts:
Alternative investment income compared to long-term target(1)
$(1)
$(17)
$(1)
—
$(1)
Prepayment income(2)
1
2
—
—
—
Annual assumption review
—
—
—
—
—
Legal accruals
—
—
—
—
—
Total impact
$—
$(15)
$(1)
—
$(1)
(1) Alternative investment income comparison to long-term target assumes a 10% annual return on the alternative investment portfolio.
(2) Prepayment income is based on actual income reported in the quarter.

•The Annuities business recorded a one-time favorable item of $14 million, or $0.08 per diluted share, associated with a model refinement.

Capital and Liquidity image.jpg
For the Three Months Ended
(in millions, except per share data)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023
Holding company available liquidity(1)
$460
$454
$457
$455
$458
RBC Ratio(2)
377%
~380%
~380%
375 - 385%
400 - 410%
Book value per share (BVPS), Including AOCI
$24.32
$33.89
$28.49
$13.04
$34.81
Book value per share (BVPS), Excluding AOCI
$61.86
$56.04
$58.58
$63.03
$55.30
Adjusted book value per share
$65.72
$66.05
$64.37
$63.53
$61.21
(1) Holding company available liquidity presented for the quarters ended 12/31/2022, 3/31/2023 and 6/30/2023 is net of the $500 million prefunding used to repay $500 million of debt that matured in the third quarter of 2023.
(2) The RBC ratio is calculated as of December 31 annually, but is reported in the March statutory reporting, and as such, the quarterly ratios presented for 2023 are considered estimates until the statutory statements are filed.








Annuities
image.jpg
For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023(1)
Change
12/31/2022
12/31/2023(1)
Change
Total operating revenues
$1,125
$1,141
$1,190
$1,197
$(525)
NM
$4,482
$3,002
-33.0%
Total operating expenses
806
841
880
915
(846)
NM
3,136
1,789
-43.0%
Income (loss) from operations before taxes
319
300
310
282
321
0.6%
1,346
1,213
-9.9%
Federal income tax expense (benefit)
44
26
39
34
42
-4.5%
185
140
-24.3%
Income (loss) from operations
$275
$274
$271
$248
$279
1.5%
$1,161
$1,073
-7.6%
Income (loss) from operations, excluding impact of annual assumption review
$275
$274
$271
$260
$279
18.2%
$1,160
$1,085
-6.5%
Total sales
$3,210
$3,164
$2,582
$2,728
$4,365
36.0%
$11,879
$12,840
8.1%
Net flows
$152
$(331)
$(1,108)
$(874)
$278
82.9%
$(337)
$(2,034)
NM
Average account balances, net of reinsurance
$142,099
$146,331
$148,260
$151,312
$147,419
3.7%
$149,591
$148,206
-0.9%
Return on average account balances
77757366767872
(1) Day one impacts related to the reinsurance transaction with Fortitude Re caused line-item volatility in the fourth quarter and full-year 2023.

•Income from operations was $279 million for the 2023 fourth quarter, essentially unchanged compared to the prior-year quarter.
•Total annuity sales were $4.4 billion for the quarter, up 36% from the prior-year quarter. For the 2023 full year, total annuity sales were $12.8 billion, up 8% from the prior year.
•Net inflows were $278 million in the quarter, compared to net inflows of $152 million in the prior-year quarter. Full-year net outflows were $2.0 billion, compared to net outflows of $337 million in the prior year.
•Average account balances, net of reinsurance, for the quarter were $147 billion, up 4%, compared to $142 billion in the prior-year quarter, primarily driven by growth in RILA. RILA represented 18% of total annuity end-of-year account balances, net of reinsurance, an increase of 4 percentage points compared to the prior-year quarter.

Life Insurance
image.jpg

For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023
Change
12/31/2022
12/31/2023
Change
Total operating revenues
$1,688
$1,757
$1,760
$1,723
$1,667
-1.2%
$6,747
$6,907
2.4%
Total operating expenses
1,706
1,780
1,725
1,952
1,681
-1.5%
9,428
7,138
-24.3%
Income (loss) from operations before taxes
(18)
(23)
35
(229)
(14)
22.2%
(2,681)
(231)
91.4%
Federal income tax expense (benefit)
(9)
(10)
2
(56)
(8)
11.1%
(587)
(72)
87.7%
Income (loss) from operations
$(9)
$(13)
$33
$(173)
$(6)
33.3%
$(2,094)
$(159)
92.4%
Income (loss) from operations, excluding impact of annual assumption review
$(9)
$(13)
$33
$(17)
$(6)
33.3%
$13
$(3)
NM
Average account balances, net of reinsurance
$47,963
$49,100
$50,049
$50,130
$45,608
-4.9%
$49,036
$48,722
-0.6%
Total sales
$186
$130
$123
$144
$144
-22.6%
$705
$542
-23.1%

•Loss from operations of $(6) million for the quarter, marginal improvement compared to a loss from operations of $(9) million in the prior-year quarter.



•Total sales were approximately 23% lower quarter over quarter and year over year, driven by our purposeful shift to a capital-efficient new business mix.
•Average account balances, net of reinsurance, were $46 billion, down 5% compared to the prior-year quarter.

Group Protection
image.jpg
For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023
Change
12/31/2022
12/31/2023
Change
Total operating revenues
$1,346
$1,388
$1,400
$1,388
$1,387
3.0%
$5,304
$5,563
4.9%
Total operating expenses
1,313
1,299
1,262
1,302
1,322
0.7%
5,252
5,184
-1.3%
Income (loss) from operations before taxes
33
89
138
86
65
97.0%
52
379
NM
Federal income tax expense (benefit)
7
18
29
18
13
85.7%
11
80
NM
Income (loss) from operations
$26
$71
$109
$68
$52
100.0%
$41$299
NM
Income (loss) from operations, excluding impact of annual assumption review
$26
$71
$109
$44
$52
18%
$53
$275
NM
Insurance premiums
$1,213
$1,251
$1,263
$1,251
$1,250
3.1%
$4,768
$5,014
5.2%
Total sales
$356
$128
$96
$71
$398
11.8%
$676
$693
2.5%
Total loss ratio
81.1%
75.0%
71.3%
75.2%
76.6%
82.5%
74.5%
Operating margin
2.1%
5.6%
8.6%
5.4%
4.1%
0.9%
6.0%
Operating margin, excluding impact of annual reserve assumption review
2.1%
5.6%
8.6%
3.5%
4.1%
1.1%
5.5%

•Income from operations of $52 million in the quarter doubled compared to $26 million in the prior-year quarter, and the total loss ratio was 76.6% in the quarter compared to 81.1% in the prior-year quarter. These results were primarily driven by favorable experience in Life mortality and disability.
•Full-year margin grew over 400 basis points to 5.5%, excluding the benefit from the annual reserve assumption review, driven by disciplined pricing, premium growth, and improved risk results in life and disability.
•Insurance premiums were $1.3 billion in the quarter, up 3% compared to the prior-year quarter.
•Group Protection sales for the quarter were $398 million in the quarter, up 12% compared to the prior-year quarter, driven by growth across all products and market segments.














Retirement Plan Services
image.jpg

For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023
Change
12/31/2022
12/31/2023
Change
Total operating revenues
$325
$328
$334
$327
$322
-0.9%
$1,274
$1,310
2.8%
Total operating expenses
264
277
279
277
278
5.3%
1,027
1,109
8.0%
Income (loss) from operations before taxes
61
51
55
50
44
-27.9%
247
201
-18.6%
Federal income tax expense (benefit)
9
8
8
7
6
-33.3%
36
30
-16.7%
Income (loss) from operations
$52$43$47$43$38
-26.9%
$211$171
-19.0%
Deposits
$2,973
$3,209
$2,897
$2,700
$2,972
0.0%
$12,902
$11,778
-8.7%
Net flows
$51
$535
$201
$(272)
$(332)
NM
$2,696
$132
-95.1%
Average account balances
$87,987
$91,457
$94,099
$96,473
$96,045
9.2%
$90,960
$94,520
3.9%
Return on average account balances
24
19
20
18
16
23
18
    
•Income from operations was $38 million in the quarter, a 27% decline compared to the prior-year quarter, primarily driven by higher operating expenses and lower spread income.
•Total deposits for the quarter were $3 billion, in line with the prior-year quarter. 2023 full-year deposits were $11.8 billion, down 9% compared to full-year 2022.
•Net outflows totaled $332 million for the quarter while the full-year net inflows were $132 million. RPS recorded its ninth consecutive year of positive net flows in 2023.
•Average account balances for the quarter were $96 billion, increasing 9% from the prior-year quarter. Ending account balances for full-year 2023 were over $100 billion.

Other Operations
image.jpg
For the Three Months Ended
For the Twelve Months Ended
(in millions)
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023(1)
Change
12/31/2022
12/31/2023(1)
Change
Total operating revenues
$47
$43
$46
$38
$(884)
NM
$156
$(755)
NM
Total operating expenses
315
150
181
180
(744)
NM
758
(229)
NM
Income (loss) from operations before taxes
(268)
(107)
(135)
(142)
(140)
47.8%
(602)
(526)
12.6%
Federal income tax expense (benefit)
(58)
(20)
(29)
(29)
(35)
39.7%
(116)
(115)
0.9%
Income (loss) from operations(2)
$(210)
$(87)
$(106)
$(113)
$(105)
50.0%
$(486)
(411)
15.4%
(1) Day one impacts related to the reinsurance transaction with Fortitude Re caused line-item volatility in the fourth quarter and full-year 2023.
(2) Income (loss) from operations does not include preferred dividends.    
                            
•Fourth quarter 2022 loss from operations included the net impact of an unfavorable notable item of $116 million, primarily related to legal expenses.

Unrealized Gains and Losses
image.jpg

The Company reported a net unrealized loss of $8.7 billion (pre-tax) on its available-for-sale securities as of December 31, 2023. This compared to a net unrealized loss of $11.9 billion (pre-tax) as of December 31, 2022, with the year-over-year decrease primarily due to the Fortitude Re reinsurance transaction and tighter spread.




The tables attached to this release define and reconcile the non-GAAP measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share, excluding AOCI, and adjusted book value per share to net income (loss), net income (loss) available to common stockholders, and book value per share, including AOCI, calculated in accordance with GAAP.

This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.

For other financial information, please refer to the company’s fourth quarter 2023 statistical supplement, which is available in the investor relations section of its website http://www.lincolnfinancial.com/investor.

Conference Call Information
Lincoln Financial Group will discuss the company’s fourth-quarter and full-year 2023 results with the investment and analyst community in a conference call beginning at 8:30 a.m. Eastern Time on Thursday, February 8, 2024.

The conference call will be broadcast live through the company’s website at www.lincolnfinancial.com/webcast. Please log on to the webcast at least 15 minutes prior to the start of the conference call to download and install any necessary streaming media software. A replay of the call will be available by 10:30 a.m. Eastern Time on February 8, 2024, at www.lincolnfinancial.com/webcast.

About Lincoln Financial Group
Lincoln Financial Group helps people to plan, protect and retire with confidence. As of December 31, 2023, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of December 31, 2023, the company had $295 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.
Contacts:
Tina MadonSarah Boxler
800-237-2920215-495-8439
Investor RelationsMedia Relations
InvestorRelations@LFG.comSarah.Boxler@LFG.com







Explanatory Notes on Use of Non-GAAP Measures
Management believes that adjusted income (loss) from operations (or adjusted operating income), adjusted income (loss) from operations available to common stockholders, and adjusted income (loss) from operations per diluted share available to common stockholders better explain the results of the company’s ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company’s 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 most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management also believes that using book value, excluding accumulated other comprehensive income (“AOCI”), and adjusted book value per share enables investors to analyze the amount of our net worth that is primarily attributable to our business operations. Book value per share, excluding AOCI is useful to investors because it eliminates the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in interest rates. Adjusted book value per share is useful to investors because it eliminates the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.

For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Supplements for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: http://www.lincolnfinancial.com/investor.

Definitions of Non-GAAP Measures Used in this Press Release

Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share, excluding AOCI, and adjusted book value per share are financial measures we use to evaluate and assess our results. Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share, excluding AOCI, and adjusted book value per share, as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), net income (loss) available to common stockholders, and book value per share, including AOCI, the most directly comparable GAAP measures.

Adjusted Income (Loss) from Operations

Adjusted income (loss) from operations is GAAP net income (loss) excluding the after-tax effects of the following items, as applicable:
•Items related to annuity product features, which include changes in MRBs, including gains and losses and benefit payments (“MRB-related impacts”), changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with the hedge program (collectively, “net annuity product features”);
•Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”);
•Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);
•Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”);
•Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”);
•Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;
•Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
•Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business;
•Gains (losses) on modification or early extinguishment of debt;
•Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and
•Income (loss) from discontinued operations.








Adjusted Income (Loss) from Operations Available to Common Stockholders

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred units of LNC stock in our deferred compensation plans.

Book Value Per Share, Excluding AOCI

Book value per share, excluding AOCI, is calculated based upon a non-GAAP financial measure.
•It is calculated by dividing (a) stockholders’ equity, excluding AOCI and preferred stock, by (b) common shares outstanding.
•We provide book value per share, excluding AOCI, to enable investors to analyze the amount of our net worth that is 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 are unpredictable and 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.

Adjusted Book Value Per Share

Adjusted book value per share is calculated based upon a non-GAAP financial measure.
•It is calculated by dividing (a) stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts by (b) common shares outstanding.
•We provide adjusted book value per share to enable investors to analyze the amount of our net worth that is primarily attributable to our business operations.
•Management believes adjusted book value per share is useful to investors because it eliminates the effect of market movements that are unpredictable that can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.
•Book value per share is the most directly comparable GAAP measure.

Other Definitions

Holding Company Available Liquidity

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.

Notable Items

Notable items are items which, in management’s view, do not reflect the company’s normal, ongoing operations.
•We believe highlighting notable items included in adjusted income (loss) from operations enables investors to better understand the fundamental trends in its results of operations and financial condition.

Special Note

Sales

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.



Lincoln National Corporation
Reconciliation of Net Income to Adjusted Income from Operations

For the
For the
(in millions, except per share data)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Net Income (Loss) Available to Common
Stockholders – Diluted
$
(1,246)
$
807
$
(835)
$
1,345
Less:
Preferred stock dividends declared
(11)
—
(82)
—
Adjustment for deferred units of LNC stock our
deferred compensation plans(1)
—
(5)
(1)
(13)
Net Income (Loss)
(1,235)
812
(752)
1,358
Less:
Net annuity product features, after-tax
(797)
674
52
3,266
Net life insurance product features, after-tax
(178)
6
(310)
21
Credit loss-related adjustments, after-tax
(21)
(8)
(63)
(103)
Investment gains (losses), after-tax (2)
136
11
(744)
16
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and
certain mortgage loans, after-tax(3)
(613)
(5)
(633)
(41)
Impairment of intangibles
—
—
—
(634)
Transaction and integration costs related to mergers,
acquisitions and divestitures, after-tax (4)
(20)— (27)— 
Total adjustments
(1,493)678 (1,725)2,525 
Adjusted Income (Loss) from Operations
$258 $134 $973 $(1,167)
Add:
Preferred stock dividends(11)— (82)— 
Adjustment for deferred units of LNC stock in our deferred stock compensation plans(1)(5)(1)(13)
Adjusted income (loss) from operations available to common stockholders$246 $129 $890 $(1,180)
Diluted (5)
Net income (loss)
$
(7.35)
$
4.73
$
(4.92)
$
7.78
Adjusted income (loss) from operations
1.45
0.76
5.22
(6.90)
Stockholders’ Equity, Average
Stockholders' equity
$
5,046
$
3,943
$
5,437
$
9,719
Less:
Preferred stock
986
493
986
123
AOCI
(5,979)
(6,646)
(5,563)
(1,022)
Stockholders’ equity, excluding AOCI and preferred stock
10,038
10,096
10,014
10,618
MRB-related impacts
1,314
(1,262)
257
(2,085)
GLB and GDB hedge instruments gains (losses) (6)
(1,857)
N/A
(1,155)
N/A
Adjusted average stockholders' equity
$10,582$11,358$10,912$12,703

(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2) Includes an $597 million after-tax loss on the sale of fixed maturity AFS securities as part of the Fortitude Re reinsurance transaction for year ended December 31, 2023.
(3) Includes primarily changes in the fair value of embedded derivatives related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023.
(4) Includes costs pertaining to the Fortitude Re reinsurance transaction and the planned sale of our wealth management business.
(5) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of diluted shares would result in a lower loss per share.
(6) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted stockholders' equity to align to the updated hedge program.



Lincoln National Corporation
Reconciliation of Book Value per Share
As of December 31,
2023
2022
Book Value Per Common Share
Book value per share
$
34.81
$
24.32
Less:
AOCI
(20.49)
(37.54)
Book value per share, excluding AOCI
55.30
61.86
Less:
MRB-related gains (losses)
6.38
(3.86)
GLB and GDB hedge instruments gains (losses)(1)
(12.29)
N/A
Adjusted book value per share
$
61.21
$
65.72
(1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted
stockholders’ equity to align to the updated hedge program.























































Lincoln National Corporation
Digest of Earnings

For the
(in millions, except per share data)
Three Months Ended
December 31,
2023
2022
Revenues
$
700
$
3,841
Net Income (Loss)
$
(1,235)
$
812
Preferred stock dividends declared
(11)
—
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)
—
(5)
Net Income (Loss) Available to Common
Stockholders – Diluted
$
(1,246)
$
807
Earnings (Loss) Per Common Share – Basic
$
(7.35)
$
4.80
Earnings (Loss) Per Common Share – Diluted (2)
(7.35)
4.73
Average Shares – Basic
169,661,997
169,217,427
Average Shares – Diluted
170,422,512
170,632,350
For the
Twelve Months Ended
December 31,
2023
2022
Revenues
$
11,645
$
18,810
Net Income (Loss)
$
(752)
$
1,358
Preferred stock dividends declared
(82)
—
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)
(1)
(13)
Net Income (Loss) Available to Common
Stockholders – Diluted
$
(835)
$
1,345
Earnings (Loss) Per Common Share – Basic
$
(4.92)
$
7.93
Earnings (Loss) Per Common Share – Diluted (2)
(4.92)
7.78
Average Shares – Basic
169,562,903
171,034,695
Average Shares – Diluted
170,738,655
172,700,155
(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of diluted shares would result in a lower loss per share.






















FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE

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

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

•Weak general economic and business conditions that may affect demand for our products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience;
•Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;
•The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations;
•Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’ products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees;
•The impact of U.S. federal tax reform legislation on our business, earnings and capital;
•The impact of regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor or other federal or state regulators or self-regulatory organizations that could adversely affect our distribution model and sales of our products and result in additional disclosure and other requirements related to the sale and delivery of our products;
•The impact of new and emerging rules, laws and regulations relating to privacy, cybersecurity and artificial intelligence that may lead to increased compliance costs, reputation risk and/or changes in business practices;
•Increasing scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio;
•Actions taken by reinsurers to raise rates on in-force business;
•Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products;
•Rapidly increasing or sustained high interest rates that may negatively affect our profitability, value of our investment portfolio and capital position and may cause policyholders to surrender annuity and life insurance policies, thereby causing realized investment losses;
•The impact of the implementation of the provisions of the European Market Infrastructure Regulation relating to the regulation of derivatives transactions;
•The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;
•A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefit riders, which are accounted for as market risk benefits, of our subsidiaries’ variable annuity products;
•Ineffectiveness of our risk management policies and procedures, including our various hedging strategies;
•A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products and in establishing related insurance reserves, which may reduce future earnings;
•Changes in accounting principles that may affect our consolidated financial statements;
•Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition;
•Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, profitability of our insurance subsidiaries and liquidity;
•Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets;
•Interruption in telecommunication, information technology or other operational systems or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches of our data security systems;



•The effect of acquisitions and divestitures, including the inability to realize the anticipated benefits of acquisitions and dispositions of businesses and potential operating difficulties and unforeseen liabilities relating thereto, as well as the effect of restructurings, product withdrawals and other unusual items;
•The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives, including the Spark Initiative;
•The adequacy and collectability of reinsurance that we have obtained;
•Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for policyholder claims, affect our businesses and increase the cost and availability of reinsurance;
•Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products;
•The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and
•The unanticipated loss of key management, financial planners or wholesalers.

The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

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

The reporting of Risk-Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.



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Lincoln Financial Group
Table of Contents
Notes1
Credit Ratings2
Consolidated
Consolidated Statements of Income (Loss)3
Consolidated Balance Sheets4
Earnings, Shares and Return on Equity5
Key Stakeholder Metrics6
Select Earnings Drivers By Segment7
Sales By Segment8
Operating Revenues and General and Administrative Expenses By Segment9
Operating Commissions and Other Expenses10
Select Earnings and Operational Data from Business Segments
Annuities11
Life Insurance12
Group Protection13
Retirement Plan Services14
Other Operations 15
DAC & Account Balance Roll Forwards
Consolidated DAC, VOBA, DSI and DFEL Roll Forwards16
Account Balance Roll Forwards:
Annuities17
Life Insurance18
Retirement Plan Services19
Investment Information
Fixed-Income Asset Class20
Fixed-Income Credit Quality21
GAAP to Non-GAAP Reconciliations
Select GAAP to Non-GAAP Reconciliations22-24







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 beginning on page 22.
Adjusted Income (Loss) From Operations
Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:
• Items related to annuity product features, which include changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”), changes in the fair
value of the derivative instruments we hold to hedge guaranteed living benefit (“GLB”) and guaranteed death benefit (“GDB”) riders, net of fee income allocated to support the cost of hedging them,
and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with
the hedge program (collectively, “net annuity product features”);
• Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of variable universal life insurance (“VUL”) hedging, changes in reserves resulting
from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our indexed universal life insurance (“IUL”) contracts
and the associated index options we hold to hedge them (collectively, “net life insurance product features”);
• Credit loss-related adjustments on fixed maturity available for sale (“AFS”) securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);
• Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment
gains (losses)”);
• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain mortgage loans”);
• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;
• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
• Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business;
• Gains (losses) on modification or early extinguishment of debt;
• Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and
• Income (loss) from discontinued operations.
Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred
units of LNC stock in our deferred compensation plans.
Adjusted Operating Revenues
Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:
• Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the
embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts and the associated index options we hold to hedge them (“revenue adjustments from annuity and
life insurance product features”);
• Credit loss-related adjustments;
• Investment gains (losses);
• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans;
• Revenue adjustments from the initial adoption of new accounting standards; and
• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.
Management believes that the non-GAAP performance measures discussed above 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 (loss)
from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.
Page 1a

Lincoln Financial Group
Notes
Non-GAAP Performance Measures, Continued
Stockholders’ Equity, Excluding AOCI and Preferred Stock
Stockholders’ equity, excluding AOCI and preferred stock is stockholders’ equity, excluding AOCI and preferred stock. Management believes this metric is useful to investors because it eliminates market
movements that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. Stockholders’ equity is the most directly comparable GAAP measure.
Adjusted Stockholders’ Equity
For presented periods prior to January 1, 2023, adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts. For periods beginning on or after January 1, 2023,
adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts and GLB and GDB hedged instruments gains (losses), to align to updates made to our variable
annuity hedge program effective January 1, 2023. Management believes this metric is useful to investors because it eliminates the effect of market movements that are unpredictable and can fluctuate significantly
from period to period, primarily related to changes in equity markets and interest rates. Stockholders’ equity is the most directly comparable GAAP measure.
Book Value per Share, Excluding AOCI
Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI and preferred stock, 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 are unpredictable and 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.
Adjusted Book Value per Share
Adjusted book value per share is calculated by dividing stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts, by common shares outstanding. We provide adjusted book value per share
to enable investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes adjusted book value per share is useful to investors because it eliminates
the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates. Book value per share is the most directly
comparable GAAP measure.
Adjusted Income (Loss) From Operations Available to Common Stockholders, Excluding AOCI and Preferred Stock ROE
Adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE is calculated by dividing annualized adjusted income (loss) from operations available
to common stockholders by average stockholders’ equity, excluding AOCI and preferred stock. Management believes this metric is useful to investors because it eliminates the effect of market movements
on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. Net income (loss) ROE is the most directly comparable GAAP measure.
Adjusted Income (Loss) From Operations ROE
Adjusted income (loss) from operations ROE is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by adjusted average stockholders’ equity.
Management believes this metric is useful to investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period to period, primarily
related to changes in equity markets and interest rates. Net income (loss) ROE is the most directly comparable GAAP measure.
Management believes that the non-GAAP measures discussed above allow 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.
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.
• 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.
Page 1b

Lincoln Financial Group
Notes
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.
Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. See adjusted income (loss) from operations ROE and adjusted income (loss) from
operations available to common stockholders, excluding AOCI and preferred stock ROE metrics on page 1b for further information on how these metrics are calculated. Management evaluates consolidated
ROE by both including and excluding the effect of average goodwill.
Leverage ratio is a measure that we use to monitor the level of our debt relative to our total capitalization. Debt used in this metric reflects total debt and preferred stock adjusted for certain items.
Total capitalization reflects debt used in the numerator of this ratio and stockholders' equity adjusted for certain items.
Indexed variable annuities are referred to as registered index-linked annuities (“RILA”).
Sales as reported consist of the following:
• Annuities and Retirement Plan Services – deposits from new and existing customers;
• Universal life insurance (“UL”), IUL, 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.
Statistical Supplement is Dated
This document is dated February 8, 2024, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.
Page 1c

Lincoln Financial Group
Credit Ratings
Ratings as of February 8, 2024
Standard
AM BestFitchMoody's& Poor's
Senior Debt Ratingsbbb+BBB+Baa2BBB+
Financial Strength Ratings
The Lincoln National Life Insurance CompanyAA+A2A+
First Penn-Pacific Life Insurance CompanyAA+A2A-
Lincoln Life & Annuity Company of New YorkAA+A2A+
Investor Inquiries May Be Directed To:
Tina Madon, Senior Vice President, Investor Relations
Email: InvestorRelations@lfg.com
Phone: 800-237-2920
Page 2

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Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Revenues
Insurance premiums $1,564 $1,579 $1,612 $1,566 $(1,086)NM$6,087 $3,672 -39.7 %
Fee income1,354 1,379 1,365 1,363 1,361 0.5 %5,604 5,467 -2.4 %
Net investment income1,412 1,466 1,508 1,494 1,411 -0.1 %5,514 5,879 6.6 %
Realized gain (loss)(692)(828)(1,784)(453)(1,245)-79.9 %840 (4,311)NM
Amortization of deferred gain (loss) on business
sold through reinsurance10 9 9 15 4 -60.0 %43 38 -11.6 %
Other revenues193 209 219 218 255 32.1 %722 900 24.7 %
Total revenues3,841 3,814 2,929 4,203 700 -81.8 %18,810 11,645 -38.1 %
Expenses
Benefits2,220 2,291 2,192 2,152 (497)NM8,479 6,138 -27.6 %
Interest credited744 785 808 831 824 10.8 %2,877 3,248 12.9 %
Market risk benefit (gain) loss(1,567)619 (2,023)(1,428)568 136.2 %(3,246)(2,264)30.3 %
Policyholder liability remeasurement (gain) loss(52)(118)(110)159 (84)-61.5 %2,766 (152)NM
Commissions and other expenses1,385 1,300 1,335 1,335 1,369 -1.2 %5,125 5,339 4.2 %
Interest and debt expense77 83 84 84 81 5.2 %283 331 17.0 %
Spark program expense49 24 41 36 52 6.1 %167 153 -8.4 %
Impairment of intangibles— — — — — NM634 — -100.0 %
Total expenses2,856 4,984 2,327 3,169 2,313 -19.0 %17,085 12,793 -25.1 %
Income (loss) before taxes985 (1,170)602 1,034 (1,613)NM1,725 (1,148)NM
Federal income tax expense (benefit)173 (289)91 181 (378)NM367 (396)NM
Net income (loss)812 (881)511 853 (1,235)NM1,358 (752)NM
Preferred stock dividends declared— (25)(11)(34)(11)NM— (82)NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans(5)(3)2 — — 100.0 %(13)(1)92.3 %
Net income (loss) available to common
stockholders – diluted$807 $(909)$502 $819 $(1,246)NM$1,345 $(835)NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)$4.73 $(5.37)$2.94 $4.79 $(7.35)NM$7.78 $(4.92)NM
Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
As of
12/31/223/31/236/30/239/30/2312/31/23Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds$79,023 $80,448 $79,307 $76,001 $69,657 -11.9%
U.S. government bonds379 383 371 373 393 3.7%
State and municipal bonds5,070 5,257 5,074 4,770 2,790 -45.0%
Foreign government bonds318 309 281 273 283 -11.0%
Residential mortgage-backed securities 2,009 2,050 2,015 1,928 1,773 -11.7%
Commercial mortgage-backed securities 1,674 1,671 1,684 1,701 1,424 -14.9%
Asset-backed securities10,904 11,458 11,793 12,393 12,171 11.6%
Hybrid and redeemable preferred securities359 360 365 365 247 -31.2%
Total fixed maturity AFS securities, net of allowance for credit losses99,736 101,936 100,890 97,804 88,738 -11.0%
Trading securities3,498 3,266 2,943 2,788 2,359 -32.6%
Equity securities427 414 403 383 306 -28.3%
Mortgage loans on real estate, net of allowance for credit losses18,301 18,327 18,460 18,751 18,963 3.6%
Policy loans2,359 2,383 2,423 2,428 2,476 5.0%
Derivative investments3,594 4,005 5,155 5,790 6,474 80.1%
Other investments3,739 3,892 4,195 4,551 5,015 34.1%
Total investments131,654 134,223 134,469 132,495 124,331 -5.6%
Cash and invested cash3,343 3,766 3,768 2,529 3,365 0.7%
Deferred acquisition costs, value of business acquired and deferred sales inducements12,235 12,277 12,316 12,341 12,397 1.3%
Reinsurance recoverables, net of allowance for credit losses19,953 19,827 19,571 18,924 29,843 49.6%
Deposit assets, net of allowance for credit losses11,628 12,249 12,308 12,494 28,789 147.6%
Market risk benefit assets2,807 3,445 3,906 4,108 3,894 38.7%
Accrued investment income1,253 1,277 1,277 1,372 1,082 -13.6%
Goodwill1,144 1,144 1,144 1,144 1,144 0.0%
Other assets7,193 7,050 7,166 7,744 9,311 29.4%
Separate account assets143,536 148,421 153,246 145,810 158,257 10.3%
Total assets$334,746 $343,679 $349,171 $338,961 $372,413 11.3%
Page 4a

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
As of
12/31/223/31/236/30/239/30/2312/31/23Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances$114,435 $116,167 $117,598 $117,210 $120,737 5.5 %
Future contract benefits38,826 39,757 39,711 39,362 39,864 2.7 %
Funds withheld reinsurance liabilities2,256 2,308 2,352 2,397 14,336 NM
Market risk benefit liabilities2,078 1,976 1,548 1,385 1,716 -17.4 %
Deferred front-end loads5,091 5,291 5,494 5,695 5,901 15.9 %
Payables for collateral on investments6,712 6,803 7,062 8,046 8,105 20.8 %
Short-term debt500 500 500 — 250 -50.0 %
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)
867 867 867 867 867 0.0%
Financial5,088 5,107 5,087 5,038 4,832 -5.0 %
Other liabilities 10,255 9,750 9,887 9,952 10,655 3.9 %
Separate account liabilities143,536 148,421 153,246 145,810 158,257 10.3 %
Total liabilities329,644 336,947 343,352 335,762 365,520 10.9 %
Stockholders’ Equity
Preferred stock986 986 986 986 986 0.0%
Common stock4,544 4,560 4,575 4,591 4,605 1.3 %
Retained earnings5,924 4,940 5,362 6,102 4,778 -19.3 %
Accumulated other comprehensive income (loss):
Unrealized investment gain (loss)(8,528)(6,754)(7,267)(10,163)(4,813)43.6 %
Market risk benefit non-performance risk gain (loss)1,741 2,766 1,842 998 1,070 -38.5 %
Policyholder liability discount rate remeasurement gain (loss)747 545 657 1,021 587 -21.4 %
Foreign currency translation adjustment(34)(31)(26)(32)(26)23.5 %
Funded status of employee benefit plans(278)(280)(310)(304)(294)-5.8 %
Total accumulated other comprehensive income (loss)(6,352)(3,754)(5,104)(8,480)(3,476)45.3 %
Total stockholders’ equity5,102 6,732 5,819 3,199 6,893 35.1 %
Total liabilities and stockholders’ equity$334,746 $343,679 $349,171 $338,961 $372,413 11.3 %
Page 4b


Lincoln Financial Group
Earnings, Shares and Return on Equity
Unaudited (millions of dollars, except per share data)
As of or For the
As of or For the Three Months EndedTwelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Income (Loss)
Net income (loss)$812 $(881)$511 $853 $(1,235)NM$1,358 $(752)NM
Pre-tax adjusted income (loss) from operations127 310 403 47 276 117.3 %(1,638)1,036 163.2 %
After-tax adjusted income (loss) from operations (1)
134 288 354 73 258 92.5 %(1,167)973 183.4 %
Adjusted operating tax rate-5.5 %7.2 %12.2 %-56.2 %6.7 %28.8 %6.1 %
Adjusted income (loss) from operations available to
common stockholders 129 260 343 39 246 90.7 %(1,180)890 175.4 %
ROE
Net income (loss) ROE82.3 %-59.6 %32.6 %75.7 %-97.9 %14.0 %-13.8 %
Adjusted income (loss) from operations available to
common stockholders, excluding AOCI and preferred
stock ROE5.1 %10.4 %14.1 %1.5 %9.8 %-11.0 %8.9 %
Adjusted income (loss) from operations ROE4.6 %9.3 %12.4 %1.4 %9.3 %-9.2 %8.2 %
Per Common Share
Net income (loss) (diluted)$4.73 $(5.37)$2.94 $4.79 $(7.35)NM$7.78 $(4.92)NM
Adjusted income (loss) from operations (diluted) (2)
0.76 1.52 2.02 0.23 1.45 90.8 %(6.90)5.22 175.7 %
Dividends declared during the period0.45 0.45 0.45 0.45 0.45 0.0%1.80 1.80 0.0%
Book Value Per Common Share
Book value per share$24.32 $33.89 $28.49 $13.04 $34.81 43.1 %$24.32 $34.81 43.1 %
Book value per share, excluding AOCI (3)
61.86 56.04 58.58 63.03 55.30 -10.6 %61.86 55.30 -10.6 %
Adjusted book value per share (3)
65.72 66.05 64.37 63.53 61.21 -6.9 %65.72 61.21 -6.9 %
Common Shares
Repurchased during the period— — — — — NM8.7 — -100.0 %
End-of-period – basic169.2 169.5 169.6 169.7 169.7 NM169.2 169.7 NM
Average for the period – basic169.2 169.4 169.6 169.6 169.7 NM171.0 169.6 -0.8 %
End-of-period – diluted170.5 170.5 170.0 171.0 170.6 NM170.5 170.6 NM
Average for the period – diluted170.6 170.5 169.9 170.9 170.4 NM172.7 170.7 NM
(1) See reconciliation to net income (loss) on page 22.
(2) See reconciliation to earnings (loss) per common share - diluted on page 23.
(3) See reconciliation to stockholders’ equity and book value per common share on page 24.
Page 5

Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)
As of or For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Cash Returned to Common Stockholders
Shares repurchased$— $— $— $— $— NM$550 $— -100.0 %
Common dividends76 76 76 76 76 0.0%310 305 -1.6 %
Total cash returned to common stockholders$76 $76 $76 $76 $76 0.0%$860 $305 -64.5 %
Cash Returned to Preferred Stockholders - Dividends$— $25 $11 $34 $11 NM$— $82 NM
Leverage Ratio
Short-term debt$500 $500 $500 $— $250 -50.0 %
Long-term debt5,955 5,974 5,954 5,905 5,699 -4.3 %
Total debt (1)
6,455 6,474 6,454 5,905 5,949 -7.8 %
Preferred stock986 986 986 986 986 0.0%
Total debt and preferred stock7,441 7,460 7,440 6,891 6,935 -6.8 %
Less:
Operating debt (2)
867 867 867 867 867 0.0%
Pre-funding of upcoming debt maturities500 500 500 — — -100.0 %
25% of capital securities and subordinated notes302 302 302 302 302 0.0%
50% of preferred stock493 493 493 493 493 0.0%
Carrying value of fair value hedges and other items164 182 161 111 154 -6.1 %
Total numerator$5,115 $5,116 $5,117 $5,118 $5,119 0.1 %
Adjusted stockholders’ equity (3)
$11,120 $11,197 $10,918 $10,778 $10,385 NM
Less:
Reinsurance-related embedded derivative - Fortitude Re (4)
— — — — (623)NM
Add:
25% of capital securities and subordinated notes302 302 302 302 302 NM
50% of preferred stock493 493 493 493 493 NM
Total numerator5,115 5,116 5,117 5,118 5,119 NM
Total denominator$17,030 $17,108 $16,830 $16,691 $16,922 NM
Leverage ratio 30.0 %29.9 %30.4 %30.7 %30.2 %
Holding Company Available Liquidity (5)
$960 $954 $957 $455 $458 -52.3 %
(1) Excludes obligations under finance leases and certain financing arrangements of $622 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.
(3) See reconciliation to stockholders’ equity on page 24.
(4) Adjusts for changes in the fair value of embedded derivative related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023.
(5) Holding company available liquidity presented for the quarters ended 12/31/2022, 3/31/2023 and 6/30/2023 includes $500 million pre-funding used to repay
$500 million of debt that matured in the third quarter of 2023.
Page 6

Lincoln Financial Group
Select Earnings Drivers By Segment
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Annuities
Operating revenues$1,125 $1,141 $1,190 $1,197 $(525)NM$4,481 $3,002 -33.0 %
Deposits3,198 3,164 2,560 2,737 4,359 36.3 %11,832 12,820 8.4 %
Net flows152 (331)(1,108)(874)278 82.9 %(337)(2,034)NM
Average account balances, net of reinsurance142,099 146,331 148,260 151,312 147,419 3.7 %149,591 148,206 -0.9 %
Alternative investment income (1)
1 3 6 4 4 300.0 %7 17 142.9 %
Life Insurance
Operating revenues$1,688 $1,757 $1,760 $1,723 $1,667 -1.2 %$6,747 $6,907 2.4 %
Deposits1,605 1,320 1,333 1,272 1,458 -9.2 %5,821 5,385 -7.5 %
Net flows1,149 852 932 821 1,013 -11.8 %4,123 3,618 -12.2 %
Average account balances, net of reinsurance47,963 49,100 50,049 50,130 45,608 -4.9 %49,036 48,722 -0.6 %
Average in-force face amount1,061,415 1,075,614 1,081,795 1,085,253 1,087,535 2.5 %1,023,828 1,082,549 5.7 %
Alternative investment income (1)
9 46 68 44 49 NM47 207 NM
Group Protection
Operating revenues$1,346 $1,388 $1,400 $1,388 $1,387 3.0 %$5,303 $5,563 4.9 %
Insurance premiums1,213 1,251 1,263 1,251 1,250 3.1 %4,768 5,014 5.2 %
Alternative investment income (1)
1 2 3 2 2 100.0 %5 9 80.0 %
Retirement Plan Services
Operating revenues$325 $328 $334 $327 $322 -0.9 %$1,274 $1,310 2.8 %
Deposits2,973 3,209 2,897 2,700 2,972 0.0%12,902 11,778 -8.7 %
Net flows51 535 201 (272)(332)NM2,696 132 -95.1 %
Average account balances87,987 91,457 94,099 96,473 96,045 9.2 %90,960 94,520 3.9 %
Alternative investment income (1)
1 2 3 2 3 200.0 %4 10 150.0 %
Consolidated
Adjusted operating revenues (2)
$4,531 $4,657 $4,730 $4,673 $1,967 -56.6 %$17,963 $16,027 -10.8 %
Deposits7,776 7,693 6,790 6,709 8,789 13.0 %30,555 29,983 -1.9 %
Net flows1,352 1,056 25 (325)959 -29.1 %6,482 1,716 -73.5 %
Average account balances, net of reinsurance278,049 286,888 292,408 297,915 289,072 4.0 %289,587 291,448 0.6 %
Alternative investment income (1)
12 53 80 52 58 NM63 243 285.7 %
(1) Excludes alternative investment income on investments supporting our modified coinsurance and coinsurance with funds withheld agreements as we have a limited economic interest in
    the investments.
(2) See reconciliation to total revenues on page 23.
Page 7

Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Sales
Annuities:
RILA$1,211 $1,147 $1,123 $1,069 $986 -18.6 %$4,726 $4,325 -8.5 %
Other variable without GLBs303 255 341 359 362 19.5 %1,701 1,317 -22.6 %
Other variable with GLBs432 445 494 530 579 34.0 %2,121 2,048 -3.4 %
Total variable1,946 1,847 1,958 1,958 1,927 -1.0 %8,548 7,690 -10.0 %
Fixed1,264 1,317 624 770 2,438 92.9 %3,331 5,150 54.6 %
Total Annuities$3,210 $3,164 $2,582 $2,728 $4,365 36.0 %$11,879 $12,840 8.1 %
Life Insurance:
IUL/UL$41 $34 $28 $23 $34 -17.1 %$135 $119 -11.9 %
MoneyGuard®26 21 23 27 27 3.8 %94 98 4.3 %
VUL49 30 34 29 38 -22.4 %163 132 -19.0 %
Term39 30 26 23 21 -46.2 %177 100 -43.5 %
Executive Benefits31 15 12 42 24 -22.6 %136 93 -31.6 %
Total Life Insurance$186 $130 $123 $144 $144 -22.6 %$705 $542 -23.1 %
Group Protection:
Life$141 $82 $54 $30 $167 18.4 %$299 $333 11.4 %
Disability195 40 36 32 204 4.6 %337 311 -7.7 %
Dental20 6 6 9 27 35.0 %40 49 22.5 %
Total Group Protection$356 $128 $96 $71 $398 11.8 %$676 $693 2.5 %
Percent employee-paid35.7 %70.3 %54.8 %48.8 %33.8 %43.2 %45.0 %
Retirement Plan Services:
First-year sales$1,059 $736 $819 $464 $874 -17.5 %$4,458 $2,893 -35.1 %
Recurring deposits1,914 2,473 2,078 2,236 2,098 9.6 %8,444 8,885 5.2 %
Total Retirement Plan Services$2,973 $3,209 $2,897 $2,700 $2,972 0.0%$12,902 $11,778 -8.7 %
Page 8

Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Operating Revenues
Annuities$1,125 $1,141 $1,190 $1,197 $(525)NM$4,482 $3,002 -33.0 %
Life Insurance1,688 1,757 1,760 1,723 1,667 -1.2 %6,747 6,907 2.4 %
Group Protection1,346 1,388 1,400 1,388 1,387 3.0 %5,303 5,563 4.9 %
Retirement Plan Services325 328 334 327 322 -0.9 %1,274 1,310 2.8 %
Other Operations47 43 46 38 (884)NM157 (755)NM
Total segment operating revenues$4,531 $4,657 $4,730 $4,673 $1,967 -56.6 %$17,963 $16,027 -10.8 %
General and Administrative Expenses,
Net of Amounts Capitalized
Annuities$110 $123 $135 $138 $131 19.1 %$448 $528 17.9 %
Life Insurance123 134 136 138 143 16.3 %488 551 12.9 %
Group Protection173 191 191 191 191 10.4 %686 764 11.4 %
Retirement Plan Services75 79 81 81 84 12.0 %288 325 12.8 %
Other Operations212 38 75 70 85 -59.9 %377 268 -28.9 %
Total $693 $565 $618 $618 $635 -8.4 %$2,287 $2,436 6.5 %
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities9.8 %10.8 %11.3 %11.5 %NM10.0 %17.6 %
Life Insurance7.3 %7.6 %7.7 %8.0 %8.6 %7.2 %8.0 %
Group Protection12.9 %13.8 %13.6 %13.8 %13.8 %12.9 %13.7 %
Retirement Plan Services23.2 %24.0 %24.3 %24.9 %26.1 %22.6 %24.8 %
Other Operations457.7 %90.0 %162.1 %177.3 %NM239.6 %NM
Total15.3 %12.1 %13.1 %13.2 %32.2 %12.7 %15.2 %
Page 9


Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses$750 $617 $672 $672 $693 -7.6 %$2,506 $2,654 5.9 %
Commissions654 615 617 603 651 -0.5 %2,621 2,485 -5.2 %
Taxes, licenses and fees88 94 81 96 81 -8.0 %346 352 1.7 %
Interest and debt expense77 83 84 84 81 5.2 %283 331 17.0 %
Expenses associated with reserve financing
and letters of credit28 30 27 28 29 3.6 %108 114 5.6 %
Total adjusted operating commissions and other
expenses incurred 1,597 1,439 1,481 1,483 1,535 -3.9 %5,864 5,936 1.2 %
Less Amounts Capitalized
General and administrative expenses(57)(52)(54)(54)(58)-1.8 %(219)(218)0.5 %
Commissions(287)(241)(240)(223)(259)9.8 %(1,116)(964)13.6 %
Taxes, licenses and fees(10)(9)(8)(8)(8)20.0 %(39)(33)15.4 %
Total amounts capitalized(354)(302)(302)(285)(325)8.2 %(1,374)(1,215)11.6 %
Total expenses incurred, net of amounts
capitalized, excluding amortization1,243 1,137 1,179 1,198 1,210 -2.7 %4,490 4,721 5.1 %
Amortization
Amortization of DAC, VOBA and other intangibles266 268 271 270 271 1.9 %1,059 1,077 1.7 %
Total operating commissions and other expenses$1,509 $1,405 $1,450 $1,468 $1,481 -1.9 %$5,549 $5,798 4.5 %
Page 10

image_2.jpg




Lincoln Financial Group
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)
As of or For the
As of or For the Three Months EndedTwelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums$52 $38 $54 $24 $(1,700)NM$165 $(1,584)NM
Fee income (1)
556 540 546 557 552 -0.7 %2,347 2,196 -6.4 %
Net investment income389 421 437 451 425 9.3 %1,463 1,734 18.5 %
Amortization of deferred gain (loss) on
business sold through reinsurance6 5 5 11 10 66.7 %25 31 24.0 %
Other revenues122 137 148 154 188 54.1 %482 625 29.7 %
Total operating revenues1,125 1,141 1,190 1,197 (525)NM4,482 3,002 -33.0 %
Operating expenses:
Benefits72 63 69 45 (1,683)NM251 (1,506)NM
Interest credited248 278 306 330 338 36.3 %894 1,252 40.0 %
Policyholder liability remeasurement (gain) loss— (1)(1)19 (15)NM2 2 0.0%
Commissions incurred240 240 240 238 252 5.0 %1,018 971 -4.6 %
Other expenses incurred242 251 257 276 265 9.5 %991 1,050 6.0 %
Amounts capitalized(103)(98)(100)(102)(110)-6.8 %(449)(411)8.5 %
Amortization107 108 109 109 107 0.0%429 431 0.5 %
Total operating expenses806 841 880 915 (846)NM3,136 1,789 -43.0 %
Income (loss) from operations before taxes319 300 310 282 321 0.6 %1,346 1,213 -9.9 %
Federal income tax expense (benefit)44 26 39 34 42 -4.5 %185 140 -24.3 %
Income (loss) from operations$275 $274 $271 $248 $279 1.5 %$1,161 $1,073 -7.6 %
Effective Federal Income Tax Rate13.7 %8.6 %12.6 %12.0 %12.9 %13.7 %11.5 %
Return on Average Account Balances77 75 73 66 76 (1)$78 72 (6)
Account Balances, Net of Reinsurance –
End-of-Period
RILA account balances$20,130 $21,841 $24,407 $25,006 $27,533 36.8 %$20,130 $27,533 36.8 %
Other variable account balances without GLBs41,742 42,983 44,381 42,196 45,499 9.0 %41,742 45,499 9.0 %
Other variable account balances with GLBs65,877 67,274 68,460 64,754 69,458 5.4 %$65,877 69,458 5.4 %
Fixed account balances14,989 15,053 14,828 14,694 10,336 -31.0 %14,989 10,336 -31.0 %
Total account balances$142,738 $147,151 $152,076 $146,650 $152,826 7.1 %$142,738 $152,826 7.1 %
Percent variable account balances with GLBs46.2 %45.7 %45.0 %44.2 %45.4 %46.2 %45.4 %
Fee Income, Gross of Hedge Allowance $738 $745 $750 $758 $752 1.9 %$3,111 $3,005 -3.4 %
Net Investment Income, Net of Reinsurance (2)
337 376 396 409 385 14.2 %1,226 1,568 27.9 %
Interest Credited, Net of Reinsurance (2)
202 224 247 270 255 26.2 %730 996 36.4 %
(1) Fee income is reported net of the hedge allowance, which represents fees allocated to net annuity product features to support the cost of hedging.
(2) Net investment income and interest credited are both reported gross of reinsurance. Reinsurance impacts are settled through other revenues.
Page 11

Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
As of or For the
As of or For the Three Months EndedTwelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums$297 $285 $293 $289 $295 -0.7 %$1,146 $1,162 1.4 %
Fee income735 776 753 739 741 0.8 %2,995 3,010 0.5 %
Net investment income650 687 707 689 629 -3.2 %2,587 2,712 4.8 %
Operating realized gain (loss)(2)(2)(2)(2)(2)0.0%(7)(6)14.3 %
Amortization of deferred gain (loss) on
business sold through reinsurance4 4 4 4 (6)NM18 5 -72.2 %
Other revenues4 7 5 4 10 150.0 %8 24 200.0 %
Total operating revenues1,688 1,757 1,760 1,723 1,667 -1.2 %6,747 6,907 2.4 %
Operating expenses:
Benefits1,079 1,152 1,073 1,129 1,083 0.4 %4,071 4,436 9.0 %
Interest credited325 328 325 325 312 -4.0 %1,310 1,290 -1.5 %
Policyholder liability remeasurement (gain) loss(2)(13)14 183 (37)NM2,854 147 -94.8 %
Commissions incurred189 148 143 129 150 -20.6 %698 571 -18.2 %
Other expenses incurred210 216 216 215 223 6.2 %818 869 6.2 %
Amounts capitalized(217)(174)(170)(152)(175)19.4 %(805)(671)16.6 %
Amortization122 123 124 123 125 2.5 %482 496 2.9 %
Total operating expenses1,706 1,780 1,725 1,952 1,681 -1.5 %9,428 7,138 -24.3 %
Income (loss) from operations before taxes(18)(23)35 (229)(14)22.2 %(2,681)(231)91.4 %
Federal income tax expense (benefit)(9)(10)2 (56)(8)11.1 %(587)(72)87.7 %
Income (loss) from operations$(9)$(13)$33 $(173)$(6)33.3 %$(2,094)$(159)92.4 %
Effective Federal Income Tax Rate52.0 %45.0 %6.6 %24.2 %59.7 %21.9 %31.1 %
Average Account Balances, Net of Reinsurance$47,963 $49,100 $50,049 $50,130 $45,608 -4.9 %$49,036 $48,722 -0.6 %
In-Force Face Amount
UL and other$363,884 $364,101 $364,633 $364,586 $365,938 0.6 %$363,884 $365,938 0.6 %
Term insurance707,747 715,495 719,361 721,927 722,620 2.1 %707,747 722,620 2.1 %
Total in-force face amount$1,071,631 $1,079,596 $1,083,994 $1,086,513 $1,088,558 1.6 %$1,071,631 $1,088,558 1.6 %
Page 12


Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
As of or For the
As of or For the Three Months EndedTwelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums$1,213 $1,251 $1,263 $1,251 $1,250 3.1 %$4,768 $5,014 5.2 %
Net investment income81 85 85 84 85 4.9 %334 339 1.5 %
Other revenues52 52 52 53 52 0.0%202 210 4.0 %
Total operating revenues1,346 1,388 1,400 1,388 1,387 3.0 %5,304 5,563 4.9 %
Operating expenses:
Benefits1,030 1,037 1,019 979 984 -4.5 %4,034 4,020 -0.3 %
Interest credited1 1 1 1 1 0.0%5 5 0.0%
Policyholder liability remeasurement (gain) loss(48)(100)(121)(39)(28)41.7 %(103)(288)NM
Commissions incurred103 106 112 109 119 15.5 %394 446 13.2 %
Other expenses incurred223 248 246 245 246 10.3 %890 982 10.3 %
Amounts capitalized(29)(25)(28)(26)(34)-17.2 %(99)(113)-14.1 %
Amortization33 32 33 33 34 3.0 %131 132 0.8 %
Total operating expenses1,313 1,299 1,262 1,302 1,322 0.7 %5,252 5,184 -1.3 %
Income (loss) from operations before taxes33 89 138 86 65 97.0 %52 379 NM
Federal income tax expense (benefit)7 18 29 18 13 85.7 %11 80 NM
Income (loss) from operations$26 $71 $109 $68 $52 100.0 %$41 $299 NM
Effective Federal Income Tax Rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Loss Ratios by Product Line
Life74.8 %80.4 %71.6 %76.8 %67.2 %79.5 %74.0 %
Disability85.7 %71.4 %70.7 %74.1 %83.1 %85.2 %74.8 %
Dental74.0 %76.4 %76.9 %75.9 %75.4 %73.5 %76.1 %
Total81.1 %75.0 %71.3 %75.2 %76.6 %82.5 %74.5 %
Page 13

Lincoln Financial Group
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)
As of or For the
As of or For the Three Months EndedTwelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Income (Loss) from Operations
Operating revenues:
Fee income$63 $64 $65 $66 $67 6.3 %$261 $262 0.4 %
Net investment income253 255 259 251 248 -2.0 %976 1,012 3.7 %
Other revenues9 9 10 10 7 -22.2 %37 36 -2.7 %
Total operating revenues325 328 334 327 322 -0.9 %1,274 1,310 2.8 %
Operating expenses:
Interest credited161 167 168 165 164 1.9 %629 665 5.7 %
Commissions incurred21 21 21 22 22 4.8 %79 87 10.1 %
Other expenses incurred83 89 90 90 93 12.0 %321 360 12.1 %
Amounts capitalized(5)(5)(5)(5)(6)-20.0 %(20)(21)-5.0 %
Amortization4 5 5 5 5 25.0 %18 18 0.0%
Total operating expenses264 277 279 277 278 5.3 %1,027 1,109 8.0 %
Income (loss) from operations before taxes61 51 55 50 44 -27.9 %247 201 -18.6 %
Federal income tax expense (benefit)9 8 8 7 6 -33.3 %36 30 -16.7 %
Income (loss) from operations$52 $43 $47 $43 $38 -26.9 %$211 $171 -19.0 %
Effective Federal Income Tax Rate15.0 %16.4 %14.9 %13.9 %13.2 %14.3 %14.2 %
Return on Average Account Balances24 19 20 18 16 (8)23 18 (5)
Pre-tax Net Margin37.1 %31.8 %33.5 %31.2 %27.8 %38.2 %31.1 %
Net Flows by Market
Small Market$174 $148 $99 $21 $115 -33.9 %$295 $382 29.5 %
Mid - Large Market298 711 408 83 78 -73.8 %3,601 1,279 -64.5 %
Multi-Fund® and Other(421)(324)(306)(376)(525)-24.7 %(1,200)(1,529)-27.4 %
Net Flows – Trailing Twelve Months$2,696 $2,304 $1,592 $515 $132 -95.1 %$2,696 $132 -95.1 %
Base Spreads, Excluding Variable
Investment Income (1)
1.18 %1.14 %1.18 %1.10 %1.09 %(9)1.02 %1.13 %11
(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums.
Page 14


Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
As of or For the
For the Three Months EndedTwelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Other Operations
Operating revenues:
Insurance premiums$2 $5 $2 $1 $(930)NM$8 $(921)NM
Net investment income39 35 38 37 37 -5.1 %155 148 -4.5 %
Amortization of deferred gain (loss) on
business sold through reinsurance— — — — 1 NM— 1 NM
Other revenues6 3 6 — 8 33.3 %(7)17 NM
Total operating revenues47 43 46 38 (884)NM156 (755)NM
Operating expenses:
Benefits19 20 14 17 (918)NM63 (863)NM
Interest credited8 10 9 9 9 12.5 %39 36 -7.7 %
Policyholder liability remeasurement (gain) loss2 — 1 (5)— -100.0 %3 (3)NM
Commissions and other expenses160 13 32 39 32 -80.0 %203 117 -42.4 %
Interest and debt expense77 83 84 84 81 5.2 %283 331 17.0 %
Spark program expense49 24 41 36 52 6.1 %167 153 -8.4 %
Total operating expenses315 150 181 180 (744)NM758 (229)NM
Income (loss) from operations before taxes(268)(107)(135)(142)(140)47.8 %(602)(526)12.6 %
Federal income tax expense (benefit)(58)(20)(29)(29)(35)39.7 %(116)(115)0.9 %
Income (loss) from operations$(210)$(87)$(106)$(113)$(105)50.0 %$(486)$(411)15.4 %
Page 15

image_3.jpg


Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
DAC, VOBA and DSI
Balance as of beginning-of-period$12,140 $12,235 $12,277 $12,316 $12,341 1.7 %$11,896 $12,235 2.8 %
Business acquired (sold) through reinsurance— — — — (11)NM— (11)NM
Deferrals357 306 304 289 333 -6.7 %1,381 1,232 -10.8 %
Operating amortization(262)(264)(265)(264)(266)-1.5 %(1,042)(1,059)-1.6 %
Balance as of end-of-period$12,235 $12,277 $12,316 $12,341 $12,397 1.3 %$12,235 $12,397 1.3 %
DFEL
Balance as of beginning-of-period$4,871 $5,091 $5,291 $5,494 $5,695 16.9 %$4,257 $5,091 19.6 %
Deferrals286 268 274 275 281 -1.7 %1,091 1,098 0.6 %
Operating amortization(66)(68)(71)(74)(75)-13.6 %(257)(288)-12.1 %
Balance as of end-of-period$5,091 $5,291 $5,494 $5,695 $5,901 15.9 %$5,091 $5,901 15.9 %
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax$5,644 $5,519 $5,389 $5,250 $5,132 -9.1 %$5,644 $5,132 -9.1 %
Page 16

Lincoln Financial Group
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Traditional Variable Annuities
Balance as of beginning-of-period$104,050 $107,627 $110,264 $112,848 $106,957 2.8 %$138,907 $107,627 -22.5 %
Gross deposits735 700 835 889 941 28.0 %3,822 3,365 -12.0 %
Full surrenders and deaths(1,168)(1,527)(1,543)(1,559)(1,714)-46.7 %(5,270)(6,343)-20.4 %
Other contract benefits(1,086)(979)(993)(984)(1,147)-5.6 %(4,151)(4,102)1.2 %
Net flows(1,519)(1,806)(1,701)(1,654)(1,920)-26.4 %(5,599)(7,080)-26.5 %
Policyholder assessments(618)(623)(626)(630)(624)-1.0 %(2,600)(2,504)3.7 %
Change in market value and reinvestment5,714 5,066 4,911 (3,607)10,550 84.6 %(23,081)16,920 173.3 %
Balance as of end-of-period, gross107,627 110,264 112,848 106,957 114,963 6.8 %107,627 114,963 6.8 %
Account balances reinsured(8)(7)(7)(7)(6)25.0 %(8)(6)25.0 %
Balance as of end-of-period, net$107,619 $110,257 $112,841 $106,950 $114,957 6.8 %$107,619 $114,957 6.8 %
RILA
Balance as of beginning-of-period$17,735 $20,130 $21,841 $24,407 $25,006 41.0 %$16,906 $20,130 19.1 %
Gross deposits1,211 1,147 1,123 1,069 986 -18.6 %4,726 4,325 -8.5 %
Full surrenders and deaths(42)(65)(78)(105)(103)NM(174)(351)NM
Other contract benefits(22)(35)(23)(20)(45)NM(60)(123)NM
Net flows1,147 1,047 1,022 944 838 -26.9 %4,492 3,851 -14.3 %
Policyholder assessments(1)(1)(2)(2)(3)NM(5)(8)-60.0 %
Change in market value and reinvestment90 125 163 190 213 136.7 %255 690 170.6 %
Change in fair value of embedded derivative instruments1,159 540 1,383 (533)1,479 27.6 %(1,518)2,870 289.1 %
Balance as of end-of-period, gross$20,130 $21,841 $24,407 $25,006 $27,533 36.8 %$20,130 $27,533 36.8 %
Page 17a

Lincoln Financial Group
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Fixed Annuities
Balance as of beginning-of-period$22,670 $23,365 $24,019 $23,813 $23,681 4.5 %$22,552 $23,365 3.6 %
Gross deposits1,252 1,317 602 779 2,432 94.2 %3,284 5,130 56.2 %
Full surrenders and deaths(547)(728)(864)(782)(878)-60.5 %(1,913)(3,252)-70.0 %
Other contract benefits(181)(161)(167)(161)(194)-7.2 %(601)(683)-13.6 %
Net flows524 428 (429)(164)1,360 159.5 %770 1,195 55.2 %
Policyholder assessments(12)(15)(14)(13)(15)-25.0 %(51)(56)-9.8 %
Reinvested interest credited143 154 159 158 179 25.2 %532 649 22.0 %
Change in fair value of embedded derivative instruments40 87 78 (113)150 275.0 %(438)202 146.1 %
Balance as of end-of-period, gross23,365 24,019 23,813 23,681 25,355 8.5 %23,365 25,355 8.5 %
Account balances reinsured(8,376)(8,966)(8,985)(8,987)(15,019)-79.3 %(8,376)(15,019)-79.3 %
Balance as of end-of-period, net$14,989 $15,053 $14,828 $14,694 $10,336 -31.0 %$14,989 $10,336 -31.0 %
Total
Balance as of beginning-of-period$144,455 $151,122 $156,124 $161,068 $155,644 7.7 %$178,365 $151,122 -15.3 %
Gross deposits3,198 3,164 2,560 2,737 4,359 36.3 %11,832 12,820 8.4 %
Full surrenders and deaths(1,757)(2,320)(2,485)(2,446)(2,695)-53.4 %(7,357)(9,946)-35.2 %
Other contract benefits(1,289)(1,175)(1,183)(1,165)(1,386)-7.5 %(4,812)(4,908)-2.0 %
Net flows152 (331)(1,108)(874)278 82.9 %(337)(2,034)NM
Policyholder assessments(631)(639)(642)(645)(642)-1.7 %(2,656)(2,568)3.3 %
Change in market value, reinvestment and interest credited5,947 5,345 5,233 (3,259)10,942 84.0 %(22,294)18,259 181.9 %
Change in fair value of embedded derivative instruments1,199 627 1,461 (646)1,629 35.9 %(1,956)3,072 257.1 %
Balance as of end-of-period, gross151,122 156,124 161,068 155,644 167,851 11.1 %151,122 167,851 11.1 %
Account balances reinsured(8,384)(8,973)(8,992)(8,994)(15,025)-79.2 %(8,384)(15,025)-79.2 %
Balance as of end-of-period, net$142,738 $147,151 $152,076 $146,650 $152,826 7.1 %$142,738 $152,826 7.1 %
Page 17b


Lincoln Financial Group
Life Insurance – Account Balance Roll Forwards
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
General Account
Balance as of beginning-of-period $37,691 $37,694 $37,533 $37,458 $37,217 -1.3 %$38,200 $37,694 -1.3 %
Gross deposits1,110 926 907 915 1,006 -9.4 %3,921 3,755 -4.2 %
Withdrawals and deaths(328)(393)(323)(378)(359)-9.5 %(1,244)(1,454)-16.9 %
Net flows 782 533 584 537 647 -17.3 %2,677 2,301 -14.0 %
Transfers between general and separate accounts(14)32 44 14 7 150.0 %2 97 NM
Policyholder assessments(1,138)(1,128)(1,120)(1,124)(1,140)-0.2 %(4,496)(4,512)-0.4 %
Reinvested interest credited374 373 371 370 366 -2.1 %1,494 1,479 -1.0 %
Change in fair value of embedded derivative instruments(1)29 46 (38)83 NM(183)121 166.1 %
Balance as of end-of-period, gross 37,694 37,533 37,458 37,217 37,180 -1.4 %37,694 37,180 -1.4 %
Account balances reinsured(5,558)(5,525)(5,527)(5,503)(15,777)NM(5,558)(15,777)NM
Balance as of end-of-period, net$32,136 $32,008 $31,931 $31,714 $21,403 -33.4 %$32,136 $21,403 -33.4 %
Separate Account
Balance as of beginning-of-period 19,382 20,920 22,162 23,409 22,642 16.8 %24,785 $20,920 -15.6 %
Gross deposits495 394 426 357 452 -8.7 %1,900 1,630 -14.2 %
Withdrawals and deaths(128)(75)(78)(73)(86)32.8 %(454)(313)31.1 %
Net flows 367 319 348 284 366 -0.3 %1,446 1,317 -8.9 %
Transfers between general and separate accounts14 (32)(44)(12)(7)NM(2)(96)NM
Policyholder assessments(244)(238)(238)(238)(250)-2.5 %(938)(964)-2.8 %
Change in market value and reinvestment1,401 1,193 1,181 (801)2,399 71.2 %(4,371)3,973 190.9 %
Balance as of end-of-period, gross 20,920 22,162 23,409 22,642 25,150 20.2 %20,920 25,150 20.2 %
Account balances reinsured(4,421)(4,606)(4,805)(4,632)(5,062)-14.5 %(4,421)(5,062)-14.5 %
Balance as of end-of-period, net$16,499 $17,556 $18,604 $18,010 $20,088 21.8 %$16,499 $20,088 21.8 %
Total
Balance as of beginning-of-period $57,073 $58,614 $59,695 $60,867 $59,859 4.9 %$62,985 $58,614 -6.9 %
Gross deposits1,605 1,320 1,333 1,272 1,458 -9.2 %5,821 5,385 -7.5 %
Withdrawals and deaths(456)(468)(401)(451)(445)2.4 %(1,698)(1,767)-4.1 %
Net flows 1,149 852 932 821 1,013 -11.8 %4,123 3,618 -12.2 %
Transfers between general and separate accounts— — — 2 — — 1 NM
Policyholder assessments(1,382)(1,366)(1,358)(1,362)(1,390)-0.6 %(5,434)(5,476)-0.8 %
Change in market value and reinvestment1,775 1,566 1,552 (431)2,765 55.8 %(2,877)5,452 289.5 %
Change in fair value of embedded derivative instruments(1)29 46 (38)83 NM(183)121 166.1 %
Balance as of end-of-period, gross 58,614 59,695 60,867 59,859 62,330 6.3 %58,614 62,330 6.3 %
Account balances reinsured(9,979)(10,131)(10,332)(10,135)(20,839)NM(9,979)(20,839)NM
Balance as of end-of-period, net$48,635 $49,564 $50,535 $49,724 $41,491 -14.7 %$48,635 $41,491 -14.7 %
Page 18

Lincoln Financial Group
Retirement Plan Services – Account Balance Roll Forwards
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
General Account
Balance as of beginning-of-period$25,276 $25,138 $24,994 $24,430 $24,099 -4.7 %$23,579 $25,138 6.6 %
Gross deposits787 701 616 709 750 -4.7 %4,012 2,776 -30.8 %
Withdrawals (1,119)(1,113)(981)(1,168)(1,233)-10.2 %(3,579)(4,494)-25.6 %
Net flows(332)(412)(365)(459)(483)-45.5 %433 (1,718)NM
Transfers between fixed and variable accounts36 103 (363)(38)2 -94.4 %510 (295)NM
Policyholder assessments(3)(3)(3)(3)(3)0.0%(13)(14)-7.7 %
Reinvested interest credited161 168 167 169 169 5.0 %629 673 7.0 %
Balance as of end-of-period$25,138 $24,994 $24,430 $24,099 $23,784 -5.4 %$25,138 $23,784 -5.4 %
Separate Account and Mutual Funds
Balance as of beginning-of-period$59,064 $63,592 $67,985 $72,156 $69,834 18.2 %$75,465 $63,592 -15.7 %
Gross deposits2,186 2,508 2,281 1,991 2,222 1.6 %8,890 9,002 1.3 %
Withdrawals (1,803)(1,561)(1,715)(1,804)(2,071)-14.9 %(6,627)(7,152)-7.9 %
Net flows383 947 566 187 151 -60.6 %2,263 1,850 -18.3 %
Transfers between fixed and variable accounts(55)(104)370 42 (10)81.8 %(493)295 159.8 %
Policyholder assessments(57)(58)(60)(62)(62)-8.8 %(238)(239)-0.4 %
Change in market value and reinvestment4,257 3,608 3,295 (2,489)7,288 71.2 %(13,405)11,703 187.3 %
Balance as of end-of-period$63,592 $67,985 $72,156 $69,834 $77,201 21.4 %$63,592 $77,201 21.4 %
Total
Balance as of beginning-of-period$84,340 $88,730 $92,979 $96,586 $93,933 11.4 %$99,044 $88,730 -10.4 %
Gross deposits 2,973 3,209 2,897 2,700 2,972 0.0%12,902 11,778 -8.7 %
Withdrawals (2,922)(2,674)(2,696)(2,972)(3,304)-13.1 %(10,206)(11,646)-14.1 %
Net flows51 535 201 (272)(332)NM2,696 132 -95.1 %
Transfers between fixed and variable accounts(19)(1)7 4 (8)57.9 %17 — -100.0 %
Policyholder assessments(60)(61)(63)(65)(65)-8.3 %(251)(253)-0.8 %
Change in market value and reinvestment4,418 3,776 3,462 (2,320)7,457 68.8 %(12,776)12,376 196.9 %
Balance as of end-of-period$88,730 $92,979 $96,586 $93,933 $100,985 13.8 %$88,730 $100,985 13.8 %
Page 19

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Lincoln Financial Group
Fixed-Income Asset Class
Unaudited (millions of dollars)
As of 12/31/2022As of 12/31/2023
Amount%Amount%
Fixed Maturity AFS Securities, Net of Modified Coinsurance and Funds Withheld
Investments and Allowance for Credit Losses, at Amortized Cost (1)
Industry corporate bonds:
Financial services$17,696 15.9 %$13,510 15.2 %
Basic industry4,336 3.9 %2,986 3.3 %
Capital goods7,347 6.6 %5,569 6.2 %
Communications4,237 3.8 %3,110 3.5 %
Consumer cyclical5,969 5.4 %5,268 5.8 %
Consumer non-cyclical17,035 15.3 %13,458 15.1 %
Energy4,760 4.3 %2,776 3.1 %
Technology5,544 5.0 %4,376 4.9 %
Transportation3,621 3.3 %3,233 3.6 %
Industrial other2,327 2.1 %2,107 2.4 %
Utilities14,108 12.7 %11,613 13.0 %
Government-related entities1,820 1.6 %1,278 1.4 %
Residential mortgage-backed securities ("RMBS")
Agency backed1,845 1.7 %1,505 1.7 %
Non-agency backed362 0.3 %332 0.4 %
Commercial mortgage-backed securities ("CMBS")1,918 1.7 %1,546 1.7 %
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")8,466 7.6 %8,325 9.3 %
Other ABS3,269 2.9 %4,220 4.7 %
Municipals5,410 4.9 %2,973 3.3 %
United States and foreign government7530.7 %7311.1 %
Hybrid & redeemable preferred securities364 0.3 %237 0.3 %
Total fixed maturity AFS securities, net of modified coinsurance and funds withheld
investments and allowance for credit losses, at amortized cost111,187 100.0 %89,153 100.0 %
Trading Securities, Net of Modified Coinsurance and Funds Withheld Investments541 626 
Equity Securities, Net of Modified Coinsurance and Funds Withheld Investments312 275 
Total fixed maturity AFS, trading and equity securities, net of modified coinsurance and funds
withheld investments and allowance for credit losses, at amortized cost112,040 90,054 
Modified coinsurance and funds withheld investments3,861 10,215 
Total fixed maturity AFS, trading and equity securities$115,901 $100,269 
(1) Net investment income and net gains (losses) related to assets held by us to support certain modified coinsurance and funds withheld agreements are included in periodic payments to
or from the reinsurers, resulting in the economic benefits of these assets flowing to the reinsurers. Accordingly, these assets have been excluded from summaries provided on page 20
and page 21 as we have a limited economic interest in the assets.
Page 20

Lincoln Financial Group
Fixed-Income Credit Quality
Unaudited (millions of dollars)
As of 12/31/2022As of 12/31/2023
Amount%Amount%
Fixed Maturity AFS Securities, Net of Modified Coinsurance and Funds Withheld Investments
and Allowance for Credit Losses, at Amortized Cost (1)
NAIC 1 (AAA-A)$63,461 57.1 %$51,732 58.0 %
NAIC 2 (BBB)43,890 39.4 %34,472 38.7 %
Total investment grade107,351 96.5 %86,204 96.7 %
NAIC 3 (BB)2,096 1.9 %1,090 1.2 %
NAIC 4 (B)1,679 1.5 %1,760 2.0 %
NAIC 5 (CCC and lower)59 0.1 %86 0.1 %
NAIC 6 (in or near default)2 0.0 %2 0.0 %
Total below investment grade3,836 3.5 %2,938 3.3 %
Total$111,187 100.0 %$89,142 100.0 %
Commercial Mortgage Loans, Net of Modified Coinsurance and Funds Withheld Investments,
at Amortized Cost (1)(2)
CM1 (AAA-A)$13,270 80.4 %$13,687 80.4 %
CM2 (BBB)3,137 19.0 %3,248 19.1 %
CM3-7 (BB and lower)91 0.6 %84 0.5 %
Total$16,498 100.0 %$17,019 100.0 %
Total Fixed Maturity AFS Securities and Commercial Mortgage Loans, Net of Modified
Coinsurance and Funds Withheld Investments, at Amortized Cost (1)(2)
AAA-A$76,731 60.1 %$65,419 61.6 %
BBB47,027 36.8 %37,720 35.5 %
BB and lower3,927 3.1 %3,022 2.9 %
Total$127,685 100.0 %$106,161 100.0 %
(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 21

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Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Net Income
Net income (loss) available to common stockholders – diluted$807 $(909)$502 $819 $(1,246)NM$1,345 $(835)NM
Less:
Preferred stock dividends declared— (25)(11)(34)(11)NM— (82)NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans(5)(3)2 — — 100.0 %(13)(1)92.3 %
Net income (loss)812 (881)511 853 (1,235)NM1,358 (752)NM
Less:
Net annuity product features, after-tax 674 (1,018)822 1,045 (797)NM3,266 52 -98.4 %
Net life insurance product features, after-tax6 (95)(123)85 (178)NM21 (310)NM
Credit loss-related adjustments, after-tax(8)(18)(3)(21)(21)NM(103)(63)38.8 %
Investment gains (losses), after-tax 11 (45)(528)(306)136 NM16 (744)NM
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax (1)
(5)7 (4)(23)(613)NM(41)(633)NM
Impairment of intangibles— — — — — NM(634)— 100.0 %
Transaction and integration costs related to mergers,
acquisitions and divestitures, after-tax (2)
— — (7)— (20)NM— (27)NM
Total adjustments678 (1,169)157 780 (1,493)NM2,525 (1,725)NM
Adjusted income (loss) from operations134 288 354 73 258 92.5 %(1,167)973 183.4 %
Add:
Preferred stock dividends declared— (25)(11)(34)(11)NM— (82)NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans(5)(3)— — (1)80.0 %(13)(1)92.3 %
Adjusted income (loss) from operations available to
common stockholders$129 $260 $343 $39 $246 90.7 %$(1,180)$890 175.4 %
(1) Includes primarily changes in the fair value of embedded derivative related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023.
(2) Includes costs pertaining to the Fortitude Re reinsurance transaction and the planned sale of our wealth management business.
Page 22

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Revenues
Total revenues$3,841 $3,814 $2,929 $4,203 $700 -81.8 %$18,810 $11,645 -38.1 %
Less:
Revenue adjustments from annuity
and life insurance product features(689)(773)(1,123)(14)(631)8.4 %1,009 (2,541)NM
Credit loss-related adjustments(9)(22)(5)(27)(27)NM(130)(80)38.5 %
Investment gains (losses)14 (57)(668)(400)167 NM20 (959)NM
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax(6)9 (5)(29)(776)NM(52)(802)NM
Adjusted operating revenues$4,531 $4,657 $4,730 $4,673 $1,967 -56.6 %$17,963 $16,027 -10.8 %
Earnings (Loss) Per Common Share – Diluted
Net income (loss)$4.73 $(5.37)$2.94 $4.79 $(7.35)NM$7.78 $(4.92)NM
Less:
Net annuity product features, after-tax3.95 (6.03)4.84 6.11 (4.71)NM18.91 0.30 -98.4 %
Net life insurance product features, after-tax0.03 (0.56)(0.73)0.50(1.06)NM0.12 (1.83)NM
Credit loss-related adjustments, after-tax(0.04)(0.10)(0.02)(0.12)(0.12)NM(0.60)(0.37)38.3 %
Investment gains (losses), after-tax0.06 (0.26)(3.11)(1.79)0.80 NM0.09 (4.38)NM
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax(0.03)0.04 (0.02)(0.14)(3.61)NM(0.24)(3.73)NM
Impairment of intangibles— — — — — NM(3.67)— 100.0 %
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax— — (0.04)— (0.12)NM— (0.16)NM
Adjustment attributable to using different average
diluted shares for adjusted income (loss) from
operations as compared to net income (loss) (1)
— 0.02 — — 0.02 NM0.07 0.03 -57.1 %
Adjusted income (loss) from operations$0.76 $1.52 $2.02 $0.23 $1.45 90.8 %$(6.90)$5.22 175.7 %
(1) In periods where net income (loss) or adjusted income (loss) from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of
diluted shares would result in a lower loss per share. Due to reporting adjusted income (loss) from operations per common share on a different share basis than net income (loss) per
common share, we have included an adjustment to reconcile the two metrics.
Page 23

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
For the Three Months EndedFor the Twelve Months Ended
12/31/223/31/236/30/239/30/2312/31/23Change12/31/2212/31/23Change
Stockholders’ Equity, End-of-Period
Stockholders' equity $5,102 $6,732 $5,819 $3,199 $6,893 35.1 %$5,102 $6,893 35.1 %
Less:
Preferred stock986 986 986 986 986 0.0%986 986 0.0%
AOCI(6,352)(3,754)(5,104)(8,480)(3,476)45.3 %(6,352)(3,476)45.3 %
Stockholders’ equity, excluding AOCI and preferred
stock10,468 9,500 9,937 10,693 9,383 -10.4 %10,468 9,383 -10.4 %
MRB-related impacts(652)(1,158)426 1,545 1,083 266.1 %(652)1,083 266.1 %
GLB and GDB hedge instruments gains (losses)(1)
N/A(539)(1,407)(1,630)(2,085)N/A(2,085)
Adjusted stockholders' equity$11,120 $11,197 $10,918 $10,778 $10,385 -6.6 %$11,120 $10,385 -6.6 %
Stockholders’ Equity, Average
Stockholders' equity $3,943 $5,917 $6,276 $4,509 $5,046 28.0 %$9,719 $5,437 -44.1 %
Less:
Preferred stock493 986 986 986 986 100.0 %123 986 NM
AOCI(6,646)(5,053)(4,429)(6,792)(5,979)10.0 %(1,022)(5,563)NM
Stockholders’ equity, excluding AOCI and preferred
stock10,096 9,984 9,719 10,315 10,038 -0.6 %10,618 10,014 -5.7 %
MRB-related impacts(1,262)(905)(366)986 1,314 204.1 %(2,085)257 112.3 %
GLB and GDB hedge instruments gains (losses)(1)
N/A(269)(973)(1,519)(1,857)N/A(1,155)
Adjusted average stockholders' equity$11,358 $11,158 $11,058 $10,848 $10,582 -6.8 %$12,703 $10,912 -14.1 %
Book Value Per Common Share
Book value per share$24.32 $33.89 $28.49 $13.04 $34.81 43.1 %$24.32 $34.81 43.1 %
Less:
AOCI(37.54)(22.15)(30.09)(49.99)(20.49)45.4 %(37.54)(20.49)45.4 %
Book value per share, excluding AOCI61.86 56.04 58.58 63.03 55.30 -10.6 %61.86 55.30 -10.6 %
Less:
MRB-related gains (losses)(3.86)(6.83)2.51 9.11 6.38 265.3 %(3.86)6.38 265.3 %
GLB and GDB hedge instruments gains (losses)(1)
N/A(3.18)(8.30)(9.61)(12.29)N/A(12.29)
Adjusted book value per share$65.72 $66.05 $64.37 $63.53 $61.21 -6.9 %$65.72 $61.21 -6.9 %
(1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted stockholders' equity to align to the
updated hedge program.
Page 24
©2024 Lincoln National Corporation February 8, 2024 4Q23 Investor Outlook

 
2©2024 Lincoln National Corporation Forward-looking statement – cautionary language Certain statements made in this presentation and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln's businesses, prospective services or products and future performance or financial results, including the statements relating to our 2026 and longer-term outlook, 2024 operating income outlook and seasonality considerations and the expected impacts of the Fortitude Re reinsurance transaction. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA. Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including: • Weak general economic and business conditions that may affect demand for our products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience; • Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures; • The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations; • Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’ products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees; • The impact of U.S. federal tax reform legislation on our business, earnings and capital; • The impact of regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor or other federal or state regulators or self-regulatory organizations that could adversely affect our distribution model and sales of our products and result in additional disclosure and other requirements related to the sale and delivery of our products; • The impact of new and emerging rules, laws and regulations relating to privacy, cybersecurity and artificial intelligence that may lead to increased compliance costs, reputation risk and/or changes in business practices; • Increasing scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio; • Actions taken by reinsurers to raise rates on in-force business; • Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products; • Rapidly increasing or sustained high interest rates that may negatively affect our profitability, value of our investment portfolio and capital position and may cause policyholders to surrender annuity and life insurance policies, thereby causing realized investment losses; • The impact of the implementation of the provisions of the European Market Infrastructure Regulation relating to the regulation of derivatives transactions; • The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;

 
3©2024 Lincoln National Corporation • A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefit riders, which are accounted for as market risk benefits, of our subsidiaries’ variable annuity products; • Ineffectiveness of our risk management policies and procedures, including our various hedging strategies; • A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products and in establishing related insurance reserves, which may reduce future earnings; • Changes in accounting principles that may affect our consolidated financial statements; • Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition; • Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, profitability of our insurance subsidiaries and liquidity; • Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets; • Interruption in telecommunication, information technology or other operational systems or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches of our data security systems; • The effect of acquisitions and divestitures, including the inability to realize the anticipated benefits of acquisitions and dispositions of businesses and potential operating difficulties and unforeseen liabilities relating thereto, as well as the effect of restructurings, product withdrawals and other unusual items; • The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives, including the Spark Initiative; • The adequacy and collectability of reinsurance that we have obtained; • Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for policyholder claims, affect our businesses and increase the cost and availability of reinsurance; • Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products; • The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and • The unanticipated loss of key management, financial planners or wholesalers. The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors. Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to correct or update any forward-looking statements to reflect events or circumstances that occur after the date of this presentation. The reporting of Risk-Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities. Forward-looking statement – cautionary language

 
4©2024 Lincoln National Corporation Our message Restoring value Strengthening the balance sheet Improving free cash flow Profitably growing

 
5©2024 Lincoln National Corporation Our foundation At-scale Retail and Workplace Solutions businesses with leading distribution1 Building on our competitive advantages Leading distribution At-scale Workplace Solutions A market leader in Retail Solutions • $5B+ in Group premiums • $100B+ in Retirement account balances • ~50K Employers • $1T in-force life coverage • $153B annuity account balances2 • Ranked #1 in service for Annuities3 • 1,000+ sales professionals • No channel >40% of sales • Reaching ~60K financial professionals and brokers over the past 12 months 1Data on slide is as of December 31, 2023. 2Account balance is net of reinsurance. 3Recognized as top service organization by Operations Managers’ Roundtable, 2023. Retail Solutions Annuities and Life Lincoln Workplace Solutions Group and Retirement 2.6M customers Customers 14M+ employees covered ~3,000 employees Employees ~5,000 employees 200K+ affiliated producers Distribution ~10K brokers and consultants

 
6©2024 Lincoln National Corporation Growth and distribution enablersStrategy Our businesses Executing on our strategy to achieve targeted outcomes Annuities Group Life Retirement • Grow our addressable market by extending reach to new segments and optimizing capabilities to bolster our competitiveness • Leverage leading distribution relationships, multi-manager investment strategy, strong hedging capabilities and diverse book to maximize value • Growth in assets and earnings across a more diverse set of liabilities • Target market segments with an emphasis on increasing growth in small market and supplemental health • Continued pricing discipline with new segment lens combined with investments in technology improving the customer experience • Diversified book of business across product and size segment, delivering sustainable target margins • Continue to grow in core recordkeeping and institutional market segments through our differentiated service model • Leverage distribution relationships and product innovation to expand access to retirement solutions • Growth in assets and revenue combined with continued focus on expense efficiencies to drive earnings growth • Pivot to accumulation products (away from long-term guarantees) and expand into new distribution partners • Optimize product portfolio and go-to-market strategies to drive more capital efficient solutions • More stable and predictable free cash flow and better risk-adjusted returns Targeted outcomes

 
7©2024 Lincoln National Corporation • RBC ratio • Leverage ratio • Expense ratios • Investment spread • Free cash flow conversion ratio • Return on capital • Life and disability premium and margins • Annuity and retirement account values and return on assets Our opportunity Long-term value creation built upon a strong capital foundation, an optimized operating model, and a strategy for profitable growth Foundational capital Build and maintain capital required to ensure enterprise stability across market cycles and to support investment for profitable growth Optimized operating model Advance a scalable framework for managing the enterprise’s resources and activities that maximizes cost efficiency, expands asset sourcing, and optimizes capital allocation Profitable growth Strategic shift toward businesses and products with more stable cash flows, focusing on maximizing risk-adjusted returns while decreasing sensitivity to equity markets Measures Levers • External and affiliated reinsurance • M&A/divestitures of non-core or sub-scale businesses • Capital structure optimization to reduce debt • General account optimization via strategic partnerships • Streamlined management layers and process optimization • Affiliated reinsurance • Optimized hedge strategy • Grow higher margin products in our core markets • Expand into adjacent markets • Exit products with returns below cost of capital • Explore new business opportunities that leverage competitive advantages

 
8©2024 Lincoln National Corporation Illustrative timeline for strategic initiatives 2023 2024 2025 Foundational capital Reinsurance (external risk transfer) M&A/divestitures Deleveraging Optimized operating model Expense efficiency/process optimization programs General account optimization Reinsurance (affiliated) Optimization of legacy life liabilities Profitable growth Retail Solutions – strategy realignment Workplace Solutions – strategy realignment Continuing to evaluate Our path Multi-year journey of strategic initiatives to strengthen the balance sheet, improve free cash flow, and grow the franchise

 
9©2024 Lincoln National Corporation Our future A balanced mix with targeted growth in businesses and products with higher risk-adjusted returns and more stable cash flows 2023 2026 Outlook Longer Term Outlook Operating Income Earnings Mix1 RBC % (Total Capital/Risk-Based Capital) ~400 – 410% 420%+ 420%+ Leverage Ratio2 30% 25 – 28% ~25% Free Cash Flow (FCF) Conversion3 ~35% 45 – 55% 65 – 75% Annuities 69% Group 18% Retirement 11% Life 2% Annuities 55-65% Group 20-30% Retirement 5-15% Life 5-10% 1For illustrative purposes only/excludes Other Operations. Excludes the following 2023 impacts: Annuities: $11M DRD true-up, $(12)M assumption review, and $14M model refinement; Group: $24M assumption review; and Life: $(156)M assumption review, $(25)M unclaimed property, $(15)M surrender benefit program. 2See Non-GAAP Financial Measures Appendix for definition and reconciliation. 3Represents the ratio of free cash flow to adjusted operating income available to common stockholders not including the impacts of certain one-time items. See Non-GAAP Financial Measures Appendix for definitions and reconciliations. Annuities 45-55% Group 25-35% Retirement 5-15% Life 5-10%

 
10©2024 Lincoln National Corporation Operating Income Growth Drivers 2023 Op Income1 3-Yr Op Income CAGR Outlook 2026 FCF Conversion Outlook Expected Free Cash Flow Improvement Drivers Annuities • General account optimization • Growth from new business • Market growth $1,060M 2 – 4% 65 – 75% • Affiliate reinsurance • Continued hedge strategy optimization Group • Pricing actions • Expense efficiencies • Growth in supplemental health $275M 13 – 16% 70 – 80% • Diversification through capital-efficient product portfolio Retirement • Positive net flows • Expense efficiencies • General account optimization $171M 2 – 4% 65 – 75% • Relatively stable conversion ratio Life • Growth from new business • Spread expansion • Growth in Alts portfolio • Expense efficiencies $37M 60%+ NM3 • Slowing of reserve build in legacy life portfolio • Strategic pivot toward a capital-efficient product portfolio • Affiliate reinsurance • Continued hedge strategy optimization Other Ops & Hold Co1 • Deleveraging • Expense efficiencies • New revenue streams $(485)M (5) – (10)%2 100% • Relatively stable conversion ratio Our drivers Expect each business to see earnings growth; Retail business expected to see the biggest improvement in FCF 1Excludes the following impacts: Annuities: $11M DRD true-up, $(12)M assumption review, and $14M model refinement; Group: $24M assumption review; Life: $(156)M assumption review, $(25)M unclaimed property, $(15)M surrender benefit program, and Other Ops and Hold Co: $(11)M legal accrual and $3M unclaimed property. Other Ops and Hold Co. includes operating income and preferred dividend payments. 2Negative 2023 - 2026 CAGR represents reduction in losses. 3Not meaningful is abbreviated as NM.

 
11©2024 Lincoln National Corporation 118 years Providing financial protection and security to our customers and their families $295B In end-of-period account balances, net of reinsurance 17M Customers across Retail and Workplace Solutions 10K+ Lincoln employees providing advice and solutions to empower our customers Our commitment Fortify Lincoln’s foundation and position our company for the next chapter1 Building on our foundation… • At-scale Retail and Workplace Solutions businesses • Leading distribution • Strengthened balance sheet … to transform our company …. • Optimizing the operating model • Ensuring a durable capital base • Strategic realignment in a number of businesses … and deliver increasing shareholder value • Maximizing risk-adjusted returns • Delivering growth in stable cash flows • Increasing free cash flow conversion 1Data on slide is as of December 31, 2023.

 
12©2024 Lincoln National Corporation Appendix

 
13©2024 Lincoln National Corporation 2024 outlook and key seasonality considerations Business 2024 Operating Income Outlook1 Q1 Seasonality Q2 Seasonality Q3 Seasonality Q4 Seasonality Annuities $1,000 – 1,200M • One less fee day • One less fee day • One additional fee day • One additional fee day Group2 $300 – 350M • Average risk results • Lowest risk results • Average risk results • Highest risk results Retirement3 $140 – 180M • Biannual crediting rate reset • Biannual crediting rate reset Life $0 – 50M • Highest mortality results • Average mortality results • Lower mortality results • Lower mortality results Other Ops & Hold Co $(475) – (425)M • $34M preferred dividend payment • $11M preferred dividend payment • $34M preferred dividend payment • $11M preferred dividend payment Seasonality of Operating Income (% Contribution to Total Year) 15 – 20% 25 – 30% 23 – 28% 27 – 32% Known one-time items in 2024 • Severance expenses ― 12024 outlook represents a point-in-time estimate as of 1/1/2024, based on a number of assumptions, including, but not limited to, 10% alternative investment portfolio returns, 6% equity market returns, other capital market assumptions and assumptions related to underwriting experience and net flows. Accordingly, actual results may differ significantly from the outlook ranges provided. The 2024 outlook does not include the impact of known one-time 2024 items. 2Risk results defined as group life insurance and disability insurance results. 37/1/24 crediting rate reset impact is unknown and will be based on prevailing interest rates and market dynamics.

 
14©2024 Lincoln National Corporation Investment portfolio High quality and well-diversified portfolio1 The portfolio is well-positioned • Long-term investment strategy is tightly aligned with our liability profile and positioned for various economic cycles – 97% investment grade, the portfolio is up in quality providing flexibility to further add incremental yield – Well positioned to further optimize the portfolio given high-quality portfolio and shift toward shorter duration liabilities • Real estate and banking exposure is conservatively positioned – Commercial real estate exposure is primarily commercial mortgage loans (CMLs), with conservative LTVs2 (45%) and DSCRs3 (2.5x), and minimal near-term maturities – Banking exposure is 5% of invested assets and weighted toward a diverse mix of large, high-quality global banks Alts 3% Basic Industry 2% Capital Goods 5% Communications 3% Consumer Cyclical 4% Consumer Non- Cyclical 11% Energy 2%Banking 5% Other Financials 7% Industrial Other 2% CMLs 15% RMLs 2% Municipal 3% Other 4 5% Structured 14% Technology 4% Transportation 3% Utilities 10% Portfolio allocation by asset class 1Data on slide is as of December 31, 2023. 2Loan to value is abbreviated at LTV. 3Debt service coverage ratio is abbreviated as DSCR. 4Other asset classes primarily include quasi-sovereign, cash/collateral, and UST/agency. Note: All information regarding LNC’s investment portfolio excludes assets related to certain modified coinsurance (“Modco”) and coinsurance with funds withheld transactions. The Modco and funds withheld reinsurance agreements have counterparty protections in place including investment guidelines, as well as additional support including trusts and letters of credit that were established to meet LNC’s risk management objectives. $113B Average A Rated

 
15©2024 Lincoln National Corporation Commercial mortgage loan portfolio Conservatively positioned CML portfolio1 Overall CML exposure: • Disciplined portfolio construction delivering consistent loan performance – Virtually no credit losses since 2019 or current loan modifications • Robust surveillance process (e.g. loan level financial review, rent roll analysis, stress testing, etc.) • Manageable near-term portfolio maturities in 2024 (2%), 2025 (4%) and 2026 (6%) – $9M2 average loan size across 2024-2026 maturity pool – $10M2 average office loan size across 2024-2026 maturity pool • No direct commercial real estate equity exposure Office exposure: • CML office loans reduced by 5% since 2020; $3.3B or 2.9% of total invested assets – Stable loan performance; minimal near-term maturities conservatively positioned • Limited maturities over next couple of years and the loans are high quality, diversified, and conservatively positioned – Maturities 2024-25 = <2% of our CML portfolio ▪ 2024: $133M with WA DSC 3.6x ▪ 2025: $178M with WA DSC 3.5x 1Data on slide is as of December 31, 2023. 2Excludes assets managed by non-LFG third-party managers. Property types Apartment 33% Industrial 27% Office 19% Retail 16% Mixed Use <1% Other 5% $17B Portfolio statistics Total CMLs Office Invested Asset % 15.1% 2.9% Avg Loan Size 2 $12M $17M Fixed Rate 100% 100% Remaining Term 8 Years 8 Years Debt Service Coverage 2.5x 2.4x Loan to Value 45% 45% Occupancy 94% 86% Credit quality CM1 80% 82% CM2 19% 18% CM3-7 1% <1%

 
16©2024 Lincoln National Corporation Approximate Fortitude Re impacts at close On November 17, 2023, we closed our reinsurance transaction with Fortitude Re. • Impacts at close – Under reinsurance accounting, annuity products require the ceded premium to be reflected as contra-revenue in "Insurance premiums." The offset to this expense is reported within the "Benefits" line. • Impacts at close and expected impacts for Q1 2024 – This table shows the approximate impacts to operating results in 4Q23 and expected impacts in 1Q24. Due to the transaction closing in mid-November, 4Q impacts are not representative of the expected impacts in future quarters. • Non-operating impacts – At close, we recognized a ~$260M after-tax realized gain related to the sale of securities associated with Fortitude Re. On an ongoing basis, the funds withheld agreement for MoneyGuard transfers the economics of the invested assets supporting the agreement to Fortitude Re. An embedded derivative exists on our balance sheet related to this and the change in fair value of that embedded derivative is recognized in net income. Impacts at close $M (approximate) Annuities – Q4 2023 Life – Q4 2023 Other Operations – Q4 2023 Reported Impacts Adjusted Reported Impacts Adjusted Reported Impacts Adjusted Insurance premiums $(1,700) $(1,731) $31 $295 – $295 $(930) $(932) $2 Total operating revenues (525) (1,731) 1,206 1,667 – 1,667 (884) (932) 48 Benefits (1,683) (1,731) 48 1,083 – 1,083 (918) (932) 14 Total operating expenses (846) (1,731) 885 1,681 – 1,681 (744) (932) 188 Income (loss) from operations before taxes $321 – $321 $(14) – $(14) $(140) – $(140) Federal income tax expense (benefit) 42 – 42 $(8) – $(8) $(35) – $(35) Income (loss) from operations $279 – $279 $(6) – $(6) $(105) – $(105)

 
17©2024 Lincoln National Corporation Impacts at close and expected impacts for Q1 2024 $M (approximate) Annuities Life Other Operations 4Q23 1Q24E Change 4Q23 1Q24E Change 4Q23 1Q24E Change Fee income $– $– $– $(40) $(90) $(50) $– $– $– Net investment income (30) (60) (30) (70) (155) (85) (5) (15) (10) Other revenues 20 35 15 5 5 – – – – Amortization of deferred gain (loss) on business sold through reinsurance – – – (10) (10) – – – – Total operating revenues $(10) $(25) $(15) $(115) $(250) $(135) $(5) $(15) $(10) Interest credited – – – (15) (25) (10) – – – Expenses, net of capitalization – – – – (5) (5) – – – Benefits (10) (20) (10) (80) (190) (110) (5) (15) (10) Total operating expenses $(10) $(20) $(10) $(95) $(220) $(125) $(5) $(15) $(10) Income (loss) from operations before taxes $– $(5) $(5) $(20) $(30) $(10) $– $– $– Federal income tax expense (benefit) – – – (5) (5) – – – – Income (loss) from operations $– $(5) $(5) $(15) $(25) $(10) $– $– $– Approximate Fortitude Re impacts at close and expected1 1Expected impacts represent approximate rounded amounts. Projected amounts include estimates for net investment income on funds withheld and a fully offsetting amount within other revenues and reductions to net investment income due to the assets transferred to Fortitude Re and the funds withheld portfolio. Differences in these estimates, while not impacting overall earnings impacts, could significantly affect those line items.

 
18©2024 Lincoln National Corporation Non-GAAP financial measures appendix

 
19©2024 Lincoln National Corporation Non-GAAP financial measures Reconciliations of the following non-GAAP financial measures to the most directly comparable GAAP financial measures or calculations of such measures, as applicable, are presented herein beginning on slide 20. Adjusted income (loss) from operations Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: • Items related to annuity product features, which include changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”), changes in the fair value of the derivative instruments we hold to hedge guaranteed living benefit (“GLB”) and guaranteed death benefit (“GDB”) riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with the hedge program (collectively, “net annuity product features”); • Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of variable universal life insurance (“VUL”) hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our indexed universal life insurance (“IUL”) contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”); • Credit loss-related adjustments on fixed maturity available for sale (“AFS”) securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”); • Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”); • Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”); • Income (loss) from the initial adoption of new accounting standards, regulations and policy changes; • Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; • Transaction and integration costs related to mergers and acquisitions, including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; • Gains (losses) on modification or early extinguishment of debt; • Losses from the impairment of intangible assets and gains (losses) on other nonfinancial assets; and • Income (loss) from discontinued operations. Adjusted income (loss) from operations available to common stockholders Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred units of LNC stock in our deferred compensation plans. Leverage ratio Leverage ratio is a measure that we use to monitor the level of our debt relative to our total capitalization. Debt used in this metric reflects total debt and preferred stock adjusted for certain items. Total capitalization reflects debt used in the numerator of this ratio and stockholders' equity adjusted for certain items. Adjusted stockholders’ equity Adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts and GLB and GDB hedged instruments gains (losses). Free cash flow Free cash flow is holding company cash provided by (used in) operating activities less preferred stock dividends and capital contributions to subsidiaries, plus any excess statutory capital retained by our life insurance subsidiaries after meeting any statutory capital growth requirements, excluding the impact of certain strategic transactions that are accretive to our risk-based capital ratio.

 
20©2024 Lincoln National Corporation Leverage Ratio Unaudited (millions of dollars) As of 12/31/23 Leverage Ratio Short-term debt $ 250 Long-term debt 5,699 Total debt (1) 5,949 Preferred stock 986 Total debt and preferred stock 6,935 Less: Operating debt (2) 867 25% of capital securities and subordinated notes 302 50% of preferred stock 493 Carrying value of fair value hedges and other items 154 Total numerator $ 5,119 Adjusted stockholders’ equity (3) $ 10,385 Less: Reinsurance-related embedded derivative - Fortitude Re (4) (623) Add: 25% of capital securities and subordinated notes 302 50% of preferred stock 493 Total numerator 5,119 Total denominator $ 16,922 Leverage ratio 30.2 % (3) See reconciliation to stockholders’ equity on page 21. (1) Excludes obligations under finance leases and certain financing arrangements of $622 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. (4) Adjusts for changes in the fair value of embedded derivative related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023.

 
21©2024 Lincoln National Corporation Reconciliation of Stockholders’ Equity to Adjusted Stockholders’ Equity Unaudited (millions of dollars) As of 12/31/23 Stockholders’ Equity, End-of-Period Stockholders’ equity $ 6,893 Less: Preferred stock 986 AOCI (3,476) Stockholders’ equity, excluding AOCI and preferred stock 9,383 MRB-related impacts 1,083 GLB and GDB hedge instruments gains (losses) (1) (2,085) Adjusted stockholders’ equity $ 10,385 (1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted stockholders’ equity to align to the updated hedge program.

 
22©2024 Lincoln National Corporation Free Cash Flow Conversion Ratio Including Reconciliation of Holding Company Net Cash Provided by Operating Activities to Free Cash Flow Unaudited (millions of dollars) For the Year Ended 12/31/23 Holding company net cash provided by operating activities $ 398 Less: Preferred stock dividends 82 Capital contributions to subsidiaries 7 309 Add: Excess capital retained by life insurance subsidiaries, excluding the impact of certain strategic transactions (1) 61 Total free cash flow (total numerator) $ 370 Adjusted income (loss) from operations available to common stockholders (2) 890 Less: One-time items (3) (167) Total denominator $ 1,057 Free cash flow conversion ratio 35% (2) See reconciliation to net income (loss) available to common stockholders on page 23. (1) Represents excess statutory capital retained by our life insurance subsidiaries in 2023 after meeting any statutory capital growth requirements, excluding the impact of certain strategic transactions that are one-time in nature that were accretive to our risk-based capital ratio. (3) Includes the following impacts: Annuities: $11 million DRD true-up, $(12) million assumption review, and $14 million model refinement; Group Protection: $24 million assumption review; Life Insurance: $(156) million assumption review, $(25) million unclaimed property, $(15) million surrender benefit program, and Other Operations: $(11) million legal accrual and $3 million unclaimed property.

 
23©2024 Lincoln National Corporation Reconciliation of Net Income Available to Common Stockholders’ to Adjusted Income from Operations Available to Common Stockholders’ Unaudited (millions of dollars) 12/31/2023 Net income $ (752) Add: Preferred stock dividends declared (82) Adjustment for deferred units of LNC stock in our deferred compensation plans (1) Net income (loss) available to common stockholders – diluted (835) Less: Net annuity product features, after-tax 52 Net life insurance product features, after-tax (310) Credit loss-related adjustments, after-tax (63) Investment gains (losses), after-tax (744) Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, after-tax (1) (633) Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax (2) (27) Total adjustments (1,725) Adjusted income (loss) from operations available to common stockholders $ 890 For the Year Ended (1) Includes primarily changes in the fair value of embedded derivative related to the Fortitude Re reinsurance transaction effective in the fourth quarter of 2023. (2) Includes costs pertaining to the Fortitude Re reinsurance transaction and the planned sale of our wealth management business.

 
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