LINCOLN NATIONAL CORP - FORM 8-K - EX-99.2

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	Lincoln Financial Group
	Table of Contents


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

Lincoln Financial Group

Analyst Coverage and Credit Ratings

Firm

Analyst

Phone Number

Autonomous Research U.S., L.P.

Erik Bass

646-561-6248

Bank of America Merrill Lynch

Seth Weiss

646-855-3783

Barclays Capital

Jay Gelb

212-526-1561

Citi Research

Suneet Kamath

212-816-3457

Credit Suisse

John Nadel

212-325-4016

Deutsche Bank

Yaron Kinar

212-250-7927

Dowling & Partners

Humphrey Lee

860-676-7324

Evercore

Thomas Gallagher

212-446-9439

FBR Capital Markets

Randy Binner

703-312-1890

J.P. Morgan Securities

Jimmy Bhullar

212-622-6397

Janney Montgomery Scott

Bob Glasspiegel

860-724-1203

Keefe, Bruyette & Woods, Inc.

Ryan Krueger

860-722-5930

Morgan Stanley

Nigel Dally

212-761-4132

RBC Capital Markets

Mark Dwelle

804-782-4008

Sandler O’Neill & Partners, L.P.

John Barnidge

312-281-3412

Wells Fargo

Sean Dargan

212-214-1416

This list is provided for informational purposes only. Lincoln Financial Group does not endorse the analyses, conclusions or recommendations contained in any report issued by these

or any other analysts.

Ratings as of May 3rd, 2017

Standard

A.M Best

Fitch

Moody's

& Poor's

Senior Debt Ratings

BBB+

Baa1

A-

Financial Strength Ratings

Lincoln National Life Insurance Company

A+

AA-

First Penn-Pacific Life Insurance Company

A+

A-

Lincoln Life & Annuity Company of New York

A+

AA-

Investor Inquiries May Be Directed To:

Chris Giovanni, Senior Vice President, Investor Relations

Email: Christopher.Giovanni@lfg.com

Phone: 484-583-1793

Page 1


	Lincoln Financial Group
	Notes


	Computations
	• The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.
	• The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.
	• If the effect of equity classification would result in a more dilutive Earnings Per Share (“EPS”), the numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market
	adjustment for deferred units of LNC stock in our deferred compensation plans. In addition, for any period where a loss from continuing operations is experienced, shares used in the diluted EPS
	calculation represent basic shares, as using dilutive shares would be anti-dilutive to the calculation. In these periods, we would also exclude the deferred compensation adjustment.
	• Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. ROE is calculated by dividing annualized net income (loss) (or income (loss)
	from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”). Management evaluates consolidated ROE by both including and excluding the effect
	of average goodwill.
	• Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding. We provide book value per share, excluding AOCI, to enable
	investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes book value per share excluding AOCI is useful to investors because
	it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP measure.
	• Pre-tax net margin is calculated by dividing income (loss) from operations before taxes by net revenue, which is defined as total operating revenues less interest credited.

	Definitions
	Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commerical
	paper outstanding.
	Sales as reported consist of the following:
	• MoneyGuard®, our linked-benefit product – 15% of total expected premium deposits;
	• Universal life (“UL”), indexed universal life ("IUL"), variable universal life (“VUL”) – first year commissionable premiums plus 5% of excess premiums received;
	• Executive Benefits – single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate owned UL and VUL, first year commissionable premiums plus 5% of excess
	premium received;
	• Term – 100% of annualized first year premiums;
	• Annuities – deposits from new and existing customers; and
	• Group Protection – annualized first year premiums from new policies.
	Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”)
	and deferred front-end loads (“DFEL”) and changes in other contract holder funds.








Page 2a


	Lincoln Financial Group
	Notes


	Sources of Earnings are defined as follows:
	• Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products less related
	expenses.
	• Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product and level
	of insurance in force.
	• Fees on Assets Under Management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.
	• Variable Annuity (“VA”) Riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in
	benefit reserves and related expenses.

	Non-GAAP Performance Measures
	Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.
	We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at income (loss) from operations:
	• Realized gains and losses associated with the following (“excluded realized gain (loss)”):
	▪ Sales or disposals and impairments of securities;
	▪ Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);
	▪ Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders reflected within our variable annuities;
	▪ Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;
	▪ Changes in the fair value of the derivatives we own to hedge our guaranteed living benefit ("GLB") riders reflected within variable annuity net derivative results;
	▪ Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future
	reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”);
	• Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);
	• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
	• Gains (losses) on early extinguishment of debt;
	• Losses from the impairment of intangible assets;
	• Income (loss) from discontinued operations; and
	• Income (loss) from the initial adoption of new accounting standards.
	Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items:
	• Excluded realized gain (loss);
	• Revenue adjustments from the initial adoption of new accounting standards;
	• Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and
	• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.






Page 2b


	Lincoln Financial Group
	Notes


	We use our prevailing federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns
	when reconciling our non-GAAP measures to the most comparable GAAP measure.

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

	Prior year interest rate spreads have been restated to conform to the current year presentation, which has been modified to be consistent across our business segments.

	New Accounting Standards - Restatement of Certain Interim Reporting Metrics
	Effective October 1, 2016, we elected to early adopt ASU 2016-09, Improvements to Employee Share-based Payment Accounting. We have updated certain previously reported interim results and
	metrics in accordance with the new guidance.

	Statistical Supplement is Dated
	The financial data in this document is dated May 3, 2017, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.




















Page 2c


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Revenues
	Insurance premiums	$	816	$	728	$	708	$	736	$	807	-1.1%
	Fee income		1,235		1,288		1,376		1,345		1,354	9.6%
	Net investment income		1,172		1,199		1,259		1,244		1,238	5.6%
	Realized gain (loss):
	Other-than-temporary impairment (“OTTI”)		(36)		(28)		(13)		(25)		(4)	88.9%
	Realized gain (loss), excluding OTTI		(78)		(17)		50		(192)		(35)	50.0%
	Total realized gain (loss)		(114)		(45)		37		(217)		(39)	65.8%
	Amortization of deferred gains on business
	sold through reinsurance		18		18		18		18		18	0.0%
	Other revenues		116		119		127		128		122	5.2%
	Total revenues		3,243		3,307		3,525		3,254		3,500	7.9%

	Expenses
	Interest credited		633		639		642		650		647	2.2%
	Benefits		1,331		1,208		922		1,230		1,290	-3.1%
	Commissions and other expenses		976		978		1,283		1,041		1,015	4.0%
	Interest and debt expense		68		68		66		129		64	-5.9%
	Strategic digitization expense		-		-		-		8		9	NM
	Total expenses		3,008		2,893		2,913		3,058		3,025	0.6%
	Income (loss) from continuing operations before taxes		235		414		612		196		475	102.1%
	Federal income tax expense (benefit)		24		89		145		6		40	66.7%
	Net income (loss)		211		325		467		190		435	106.2%
	Adjustment for LNC stock units in our
	deferred compensation plans		(7)		-		-		-		-	100.0%
	Net income (loss) available to common
	stockholders – diluted	$	204	$	325	$	467	$	190	$	435	113.2%

	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	0.83	$	1.35	$	2.00	$	0.82	$	1.89	127.7%

	ROE, including AOCI
	Net income (loss)		6.0%		8.5%		11.6%		4.9%		11.8%

Page 3


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

		As of
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	ASSETS
	Investments:
	Available-for-sale (“AFS”) securities:
	Corporate bonds	$	76,956	$	80,129	$	81,369	$	78,149	$	79,841	3.7%
	U.S. government bonds		450		464		458		419		576	28.0%
	Foreign government bonds		532		530		530		506		456	-14.3%
	Mortgage-backed securities		4,028		3,975		4,019		3,964		4,008	-0.5%
	Asset-backed collateralized debt obligations		628		687		686		744		776	23.6%
	State and municipal bonds		4,744		4,985		4,939		4,627		4,826	1.7%
	Hybrid and redeemable preferred securities		726		691		631		604		619	-14.7%
	VIEs' fixed maturity securities		599		600		600		200		-	-100.0%
	Equity securities		245		277		273		275		276	12.7%
	Total AFS securities		88,908		92,338		93,505		89,488		91,378	2.8%
	Trading securities		1,864		1,812		1,808		1,712		1,703	-8.6%
	Mortgage loans on real estate		8,916		9,257		9,430		9,889		10,001	12.2%
	Real estate		17		21		23		24		24	41.2%
	Policy loans		2,533		2,507		2,471		2,451		2,432	-4.0%
	Derivative investments		2,085		2,613		2,170		927		991	-52.5%
	Other investments		2,048		2,039		2,184		2,230		2,104	2.7%
	Total investments		106,371		110,587		111,591		106,721		108,633	2.1%
	Cash and invested cash		3,177		4,113		3,444		2,722		1,923	-39.5%
	DAC and VOBA		8,984		8,280		8,020		9,134		9,030	0.5%
	Premiums and fees receivable		401		370		355		430		465	16.0%
	Accrued investment income		1,108		1,070		1,117		1,062		1,124	1.4%
	Reinsurance recoverables		5,597		5,540		5,432		5,265		5,333	-4.7%
	Funds withheld reinsurance assets		630		628		628		617		610	-3.2%
	Goodwill		2,273		2,273		2,273		2,273		2,273	0.0%
	Other assets		3,671		5,134		5,152		5,006		5,119	39.4%
	Separate account assets		123,506		125,033		128,593		128,397		132,958	7.7%
	Total assets	$	255,718	$	263,028	$	266,605	$	261,627	$	267,468	4.6%



Page 4a


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

		As of
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities
	Future contract benefits	$	21,438	$	22,147	$	22,120	$	21,576	$	22,202	3.6%
	Other contract holder funds		77,475		77,458		77,963		78,903		79,078	2.1%
	Short-term debt		-		250		250		-		200	NM
	Long-term debt by rating agency leverage definitions:
	Operating (see note (2) on page 6 for details)		1,115		865		865		865		865	-22.4%
	Financial		4,535		4,595		4,592		4,480		4,268	-5.9%
	Reinsurance related embedded derivatives		111		134		137		53		50	-55.0%
	Funds withheld reinsurance liabilities		597		2,019		1,999		1,976		1,961	228.5%
	Deferred gain on business sold through reinsurance		79		61		43		24		6	-92.4%
	Payables for collateral on investments		5,017		6,297		5,654		4,995		5,086	1.4%
	Other liabilities		7,187		8,249		8,066		5,880		5,821	-19.0%
	Separate account liabilities		123,506		125,033		128,593		128,397		132,958	7.7%
	Total liabilities		241,060		247,108		250,282		247,149		252,495	4.7%

	Stockholders’ Equity
	Common stock		6,159		6,006		5,906		5,869		5,839	-5.2%
	Retained earnings		6,568		6,719		7,040		7,043		7,287	10.9%
	AOCI:
	Unrealized investment gains (losses)		2,235		3,501		3,684		1,858		2,139	-4.3%
	Foreign currency translation adjustment		(7)		(18)		(20)		(27)		(25)	NM
	Funded status of employee benefit plans		(297)		(288)		(287)		(265)		(267)	10.1%
	Total AOCI		1,931		3,195		3,377		1,566		1,847	-4.4%
	Total stockholders’ equity		14,658		15,920		16,323		14,478		14,973	2.1%
	Total liabilities and stockholders’ equity	$	255,718	$	263,028	$	266,605	$	261,627	$	267,468	4.6%







Page 4b


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

		As of or For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Income (Loss)
	Net income (loss)	$	211	$	325	$	467	$	190	$	435	106.2%
	Pre-tax income (loss) from operations		397		489		571		533		485	22.2%
	After-tax income (loss) from operations (1)		317		373		441		409		442	39.4%
	Operating tax rate		20.2%		23.7%		22.8%		23.3%		8.9%

	Average Stockholders’ Equity
	Average equity, including AOCI	$	14,137	$	15,289	$	16,122	$	15,400	$	14,725	4.2%
	Average AOCI		1,388		2,563		3,286		2,471		1,706	22.9%
	Average equity, excluding AOCI	$	12,749	$	12,726	$	12,836	$	12,929	$	13,019	2.1%

	ROE, excluding AOCI
	Net income (loss)		6.6%		10.2%		14.5%		5.9%		13.4%
	Income (loss) from operations		9.9%		11.7%		13.7%		12.7%		13.6%

	Per Share
	Net income (loss) (diluted)	$	0.83	$	1.35	$	2.00	$	0.82	$	1.89	127.7%
	Income (loss) from operations (diluted)		1.26		1.56		1.89		1.77		1.92	52.4%
	Dividends declared during the period		0.25		0.25		0.25		0.29		0.29	16.0%

	Book value, including AOCI	$	61.33	$	68.39	$	71.43	$	63.97	$	66.58	8.6%
	Per share impact of AOCI		8.08		13.72		14.78		6.92		8.21	1.6%
	Book value, excluding AOCI	$	53.25	$	54.67	$	56.65	$	57.05	$	58.37	9.6%

	Shares
	Repurchased during the period		5.5		6.2		4.3		3.2		2.9	-47.3%
	End-of-period – basic		239.0		232.8		228.5		226.3		224.9	-5.9%
	End-of-period – diluted		242.2		236.2		231.4		230.1		228.9	-5.5%
	Average for the period – diluted		245.1		239.9		233.7		230.9		230.1	-6.1%

	(1) See reconciliation to net income (loss) 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 Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change

	Cash Returned to Common Stockholders
	Shares repurchased	$	200	$	275	$	200	$	204	$	200	0.0%
	Common dividends		61		60		58		57		66	8.2%
	Total cash returned to common stockholders	$	261	$	335	$	258	$	261	$	266	1.9%

	Leverage Ratio
	Short-term debt	$	-	$	250	$	250	$	-	$	200	NM
	Long-term debt		5,650		5,460		5,457		5,345		5,133	-9.2%
	Total debt (1)		5,650		5,710		5,707		5,345		5,333	-5.6%
	Less:
	Operating debt (2)		1,115		1,115		1,115		865		865	-22.4%
	25% of capital securities		302		302		302		302		302	0.0%
	Carrying value of fair value hedges		365		423		420		258		246	-32.6%
	Total numerator	$	3,868	$	3,870	$	3,870	$	3,920	$	3,920	1.3%

	Stockholders’ equity, excluding unrealized
	investment gains (losses)	$	12,423	$	12,419	$	12,639	$	12,620	$	12,834	3.3%
	Add: 25% of capital securities		302		302		302		302		302	0.0%
	Total numerator		3,868		3,870		3,870		3,920		3,920	1.3%
	Total denominator	$	16,593	$	16,591	$	16,811	$	16,842	$	17,056	2.8%

	Leverage ratio		23.3%		23.3%		23.0%		23.3%		23.0%

	Holding Company Available Liquidity	$	539	$	523	$	546	$	561	$	551	2.2%

	(1) Excludes obligations under capital leases of $214 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. During the second quarter of 2016, we reclassified the senior note issued by our primary
	insurance subsidiary into short-term debt.




Page 6


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Income (Loss) from Operations, Pre-Tax
	Annuities	$	272	$	296	$	303	$	306	$	280	2.9%
	Retirement Plan Services		41		41		45		46		48	17.1%
	Life Insurance		103		175		246		228		187	81.6%
	Group Protection		8		23		44		25		11	37.5%
	Other Operations		(27)		(46)		(67)		(72)		(41)	-51.9%
	Income (loss) from operations, before income taxes	$	397	$	489	$	571	$	533	$	485	22.2%

	Income (Loss) from Operations, After-Tax
	Annuities	$	218	$	235	$	240	$	242	$	281	28.9%
	Retirement Plan Services		31		31		32		34		37	19.4%
	Life Insurance		75		120		167		154		130	73.3%
	Group Protection		5		15		28		16		7	40.0%
	Other Operations		(12)		(28)		(26)		(37)		(13)	-8.3%
	Income (loss) from operations	$	317	$	373	$	441	$	409	$	442	39.4%

			For the Three Months Ended										For the Trailing Twelve Months
			3/31/16		6/30/16		9/30/16		12/31/16		3/31/17	Change	3/31/16		3/31/17		Change
	Sources of Earnings, Pre-Tax
	Investment spread	$	139	$	161	$	205	$	199	$	172	23.7%	$	629	$	736	17.0%
	Mortality/morbidity		65		118		175		151		115	76.9%		338		559	65.4%
	Fees on AUM		191		220		222		220		209	9.4%		910		872	-4.2%
	VA riders		29		36		36		35		30	3.4%		102		137	34.3%
	Total sources of earnings, before income taxes		424		535		638		605		526	24.1%		1,979		2,304	16.4%
	Other Operations		(27)		(46)		(67)		(72)		(41)	-51.9%		(224)		(224)	0.0%
	Income (loss) from operations, before income taxes	$	397	$	489	$	571	$	533	$	485	22.2%	$	1,755	$	2,080	18.5%

	Sources of Earnings, Pre-Taxes, Percentage By Component
	Investment spread		32.8%		30.0%		32.3%		32.9%		32.5%			31.8%		31.9%
	Mortality/morbidity		15.3%		22.1%		27.4%		24.9%		21.9%			17.0%		24.3%
	Fees on AUM		45.1%		41.2%		34.8%		36.4%		39.9%			46.0%		37.9%
	VA riders		6.8%		6.7%		5.5%		5.8%		5.7%			5.2%		5.9%
	Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%


Page 7

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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Annuities
	Operating revenues	$	1,039	$	983	$	1,000	$	1,011	$	1,061	2.1%
	Deposits		2,353		2,113		1,938		1,810		2,016	-14.3%
	Net flows		(35)		(452)		(868)		(932)		(944)	NM
	Average account values		118,189		122,383		125,023		124,450		127,644	8.0%

	Retirement Plan Services
	Operating revenues	$	267	$	270	$	282	$	284	$	282	5.6%
	Deposits		1,791		1,660		1,799		2,406		2,252	25.7%
	Net flows		78		4		97		386		116	48.7%
	Average account values		52,999		55,127		56,537		57,552		59,530	12.3%

	Life Insurance
	Operating revenues	$	1,478	$	1,538	$	1,630	$	1,600	$	1,606	8.7%
	Deposits		1,238		1,391		1,490		1,648		1,414	14.2%
	Net flows		830		978		1,102		1,209		924	11.3%
	Average account values		43,795		44,162		44,792		45,485		46,147	5.4%
	Average in-force face amount		664,753		671,412		680,010		688,791		695,759	4.7%

	Group Protection
	Operating revenues	$	534	$	525	$	534	$	537	$	541	1.3%
	Non-medical earned premiums		489		478		485		487		495	1.2%

	Consolidated
	Operating revenues (1)	$	3,400	$	3,395	$	3,530	$	3,519	$	3,578	5.2%
	Deposits		5,382		5,164		5,227		5,864		5,682	5.6%
	Net flows		873		530		331		663		96	-89.0%
	Average account values		214,983		221,672		226,352		227,487		233,321	8.5%

	(1) See reconciliation to total revenues on page 24.


Page 8


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Sales
	Annuities:
	With guaranteed living benefits	$	1,248	$	1,164	$	1,052	$	928	$	905	-27.5%
	Without guaranteed living benefits		437		471		466		471		549	25.6%
	Variable		1,685		1,635		1,518		1,399		1,454	-13.7%
	Fixed		668		478		420		411		562	-15.9%
	Total Annuities	$	2,353	$	2,113	$	1,938	$	1,810	$	2,016	-14.3%

	Retirement Plan Services:
	First-year sales	$	393	$	431	$	607	$	1,177	$	800	103.6%
	Recurring deposits		1,398		1,229		1,192		1,229		1,452	3.9%
	Total Retirement Plan Services	$	1,791	$	1,660	$	1,799	$	2,406	$	2,252	25.7%

	Life Insurance:
	UL	$	18	$	24	$	23	$	29	$	17	-5.6%
	MoneyGuard®		42		51		56		64		60	42.9%
	IUL		18		18		23		31		18	0.0%
	VUL		29		41		52		58		36	24.1%
	Term		25		30		31		29		27	8.0%
	Total individual life insurance		132		164		185		211		158	19.7%
	Executive Benefits		7		9		8		20		23	228.6%
	Total Life Insurance	$	139	$	173	$	193	$	231	$	181	30.2%

	Group Protection:
	Life	$	27	$	25	$	28	$	98	$	23	-14.8%
	Disability		22		30		33		109		23	4.5%
	Dental		10		16		17		56		11	10.0%
	Total Group Protection	$	59	$	71	$	78	$	263	$	57	-3.4%
	Percent employee-paid		54.5%		46.4%		44.0%		47.5%		53.3%



Page 9


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Operating Revenues
	Annuities	$	1,039	$	983	$	1,000	$	1,011	$	1,061	2.1%
	Retirement Plan Services		267		270		282		284		282	5.6%
	Life Insurance		1,478		1,538		1,630		1,600		1,606	8.7%
	Group Protection		534		525		534		537		541	1.3%
	Other Operations		82		79		84		87		88	7.3%
	Total	$	3,400	$	3,395	$	3,530	$	3,519	$	3,578	5.2%

	General and Administrative Expenses,
	Net of Amounts Capitalized (1)
	Annuities	$	114	$	114	$	111	$	113	$	112	-1.8%
	Retirement Plan Services		74		77		77		79		75	1.4%
	Life Insurance		111		115		121		128		120	8.1%
	Group Protection		69		71		77		79		73	5.8%
	Other Operations		-		9		25		48		22	NM
	Total	$	368	$	386	$	411	$	447	$	402	9.2%

	General and Administrative Expenses,
	Net of Amounts Capitalized, as a Percentage
	of Operating Revenues
	Annuities		11.0%		11.6%		11.1%		11.2%		10.6%
	Retirement Plan Services		27.7%		28.3%		27.3%		27.7%		26.6%
	Life Insurance		7.5%		7.5%		7.4%		8.0%		7.5%
	Group Protection		13.0%		13.5%		14.4%		14.8%		13.4%
	Other Operations		0.6%		11.7%		30.2%		55.2%		24.8%
	Total		10.8%		11.4%		11.6%		12.7%		11.2%

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




Page 10


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Operating Commissions and
	Other Expenses Incurred
	General and administrative expenses	$	410	$	429	$	454	$	504	$	446	8.8%
	Commissions		522		546		562		590		555	6.3%
	Taxes, licenses and fees		68		64		65		58		70	2.9%
	Interest and debt expense		68		68		66		67		64	-5.9%
	Expenses associated with reserve financing
	and unrelated letters of credit		18		19		21		21		21	16.7%
	Total operating commissions and other
	expenses incurred		1,086		1,126		1,168		1,240		1,156	6.4%

	Less Amounts Capitalized
	General and administrative expenses		(42)		(43)		(43)		(57)		(44)	-4.8%
	Commissions		(251)		(274)		(286)		(314)		(261)	-4.0%
	Taxes, licenses and fees		(8)		(9)		(10)		(10)		(11)	-37.5%
	Total amounts capitalized		(301)		(326)		(339)		(381)		(316)	-5.0%
	Total expenses incurred, net of amounts
	capitalized, excluding amortization		785		800		829		859		840	7.0%

	Amortization
	Amortization of DAC and VOBA		258		244		512		258		237	-8.1%
	Amortization of intangibles		1		1		1		1		1	0.0%
	Total amortization		259		245		513		259		238	-8.1%
	Total operating commissions and
	other expenses	$	1,044	$	1,045	$	1,342	$	1,118	$	1,078	3.3%







Page 11


	Lincoln Financial Group
	Interest Rate Yields and Spreads By Segment
	Unaudited

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Annuities
	Earned rate on reserves		4.24%		4.16%		4.16%		4.00%		4.06%	(18)
	Variable investment income on reserves (1)		0.06%		0.08%		0.22%		0.20%		0.11%	5
	Net investment income yield on reserves		4.30%		4.24%		4.38%		4.20%		4.17%	(13)
	Interest rate credited to contract holders		2.34%		2.41%		2.42%		2.44%		2.43%	9
	Interest rate spread		1.96%		1.83%		1.96%		1.76%		1.74%	(22)
	Base spreads excluding variable investment income		1.90%		1.75%		1.74%		1.56%		1.63%	(27)

	Retirement Plan Services
	Earned rate on reserves		4.58%		4.52%		4.48%		4.42%		4.37%	(21)
	Variable investment income on reserves (1)		0.05%		0.06%		0.27%		0.27%		0.08%	3
	Net investment income yield on reserves		4.63%		4.58%		4.75%		4.69%		4.45%	(18)
	Interest rate credited to contract holders		2.98%		3.01%		3.00%		3.04%		2.93%	(5)
	Interest rate spread		1.65%		1.57%		1.75%		1.65%		1.52%	(13)
	Base spreads excluding variable investment income		1.60%		1.51%		1.48%		1.38%		1.44%	(16)

	Life Insurance – Interest-Sensitive
	Earned rate on reserves		5.25%		5.22%		5.22%		5.16%		5.11%	(14)
	Variable investment income on reserves (1)		-0.01%		0.17%		0.42%		0.32%		0.34%	35
	Net investment income yield on reserves		5.24%		5.39%		5.64%		5.48%		5.45%	21
	Interest rate credited to contract holders		3.92%		3.92%		3.89%		3.85%		3.85%	(7)
	Interest rate spread		1.32%		1.47%		1.75%		1.63%		1.60%	28
	Base spreads excluding variable investment income		1.33%		1.30%		1.33%		1.31%		1.26%	(7)

	Total (2)
	Earned rate (3)		4.78%		4.72%		4.68%		4.64%		4.61%	(17)
	Variable investment income (1) (3)		-0.01%		0.12%		0.36%		0.30%		0.26%	27
	Net investment income yield (3)		4.77%		4.84%		5.04%		4.94%		4.87%	10
	Interest rate credited to contract holders		3.28%		3.30%		3.28%		3.28%		3.26%	(2)
	Interest rate spread		1.49%		1.54%		1.76%		1.66%		1.61%	12
	Base spreads excluding variable investment income		1.50%		1.42%		1.40%		1.36%		1.35%	(15)
	(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
	(2) Includes the results of all of our business segments and Other Operations.
	(3) Includes investment yields on reserves and surplus.

Page 12


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

		As of or For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	151	$	68	$	45	$	67	$	124	-17.9%
	Fee income		493		510		535		529		533	8.1%
	Net investment income		251		258		268		256		256	2.0%
	Operating realized gain (loss)		44		44		45		45		45	2.3%
	Other revenues		100		103		107		114		103	3.0%
	Total operating revenues		1,039		983		1,000		1,011		1,061	2.1%
	Operating expenses:
	Interest credited		140		144		148		149		147	5.0%
	Benefits		216		136		112		132		193	-10.6%
	Commissions incurred		218		216		214		202		224	2.8%
	Other expenses incurred		218		210		214		214		213	-2.3%
	Amounts capitalized		(112)		(105)		(100)		(92)		(97)	13.4%
	Amortization		87		86		109		100		101	16.1%
	Total operating expenses		767		687		697		705		781	1.8%
	Income (loss) from operations before taxes		272		296		303		306		280	2.9%
	Federal income tax expense (benefit)		54		61		63		64		(1)	NM
	Income (loss) from operations	$	218	$	235	$	240	$	242	$	281	28.9%

	Effective Federal Income Tax Rate		19.8%		20.6%		20.8%		21.0%		-0.4%

	Average Equity, Excluding Goodwill and AOCI	$	4,381	$	4,502	$	4,611	$	4,608	$	4,575	4.4%

	ROE, Excluding Goodwill and AOCI		19.9%		20.9%		20.8%		21.0%		24.6%

	Return on Average Account Values		74		77		77		78		88	14

	Account Values
	Variable annuity account values:
	Average	$	99,610	$	103,444	$	105,954	$	105,374	$	108,337	8.8%
	End-of-period		102,902		103,861		106,473		105,766		109,475	6.4%
	Fixed annuity account values:
	Average		18,579		18,939		19,069		19,076		19,307	3.9%
	End-of-period		18,829		18,990		19,037		19,139		19,455	3.3%

Page 13


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

		As of or For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Fee income	$	55	$	57	$	58	$	58	$	59	7.3%
	Net investment income		207		209		220		222		218	5.3%
	Other revenues		5		4		4		4		5	0.0%
	Total operating revenues		267		270		282		284		282	5.6%
	Operating expenses:
	Interest credited		125		127		128		134		132	5.6%
	Commissions incurred		19		19		20		18		19	0.0%
	Other expenses incurred		82		84		85		89		85	3.7%
	Amounts capitalized		(6)		(6)		(6)		(10)		(8)	-33.3%
	Amortization		6		5		10		7		6	0.0%
	Total operating expenses		226		229		237		238		234	3.5%
	Income (loss) from operations before taxes		41		41		45		46		48	17.1%
	Federal income tax expense (benefit)		10		10		13		12		11	10.0%
	Income (loss) from operations	$	31	$	31	$	32	$	34	$	37	19.4%

	Effective Federal Income Tax Rate		25.8%		25.6%		28.6%		26.8%		22.4%

	Average Equity, Excluding Goodwill and AOCI	$	1,067	$	1,098	$	1,128	$	1,149	$	1,191	11.6%

	ROE, Excluding Goodwill and AOCI		11.5%		11.2%		11.4%		11.7%		12.5%

	Pre-tax Net Margin		29.1%		28.8%		29.4%		30.5%		31.9%

	Return on Average Account Values		23		22		23		23		25	2

	Net Flows by Market
	Small Market		13		(22)		99		320		(380)	NM
	Mid - Large Market		215		191		166		340		738	243.3%
	Multi-Fund® and Other		(150)		(165)		(168)		(274)		(242)	-61.3%

	Net Flows – Trailing Twelve Months	$	415	$	112	$	(41)	$	565	$	603	45.3%




Page 14


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

		As of or For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	172	$	177	$	174	$	179	$	185	7.6%
	Fee income		687		721		780		758		760	10.6%
	Net investment income		611		633		665		652		658	7.7%
	Operating realized gain (loss)		-		-		(1)		3		(4)	NM
	Other revenues		8		7		12		8		7	-12.5%
	Total operating revenues		1,478		1,538		1,630		1,600		1,606	8.7%
	Operating expenses:
	Interest credited		348		349		349		348		349	0.3%
	Benefits		740		708		522		707		797	7.7%
	Commissions incurred		147		174		190		222		174	18.4%
	Other expenses incurred		185		193		201		207		201	8.6%
	Amounts capitalized		(165)		(198)		(219)		(249)		(199)	-20.6%
	Amortization		120		137		341		137		97	-19.2%
	Total operating expenses		1,375		1,363		1,384		1,372		1,419	3.2%
	Income (loss) from operations before taxes		103		175		246		228		187	81.6%
	Federal income tax expense (benefit)		28		55		79		74		57	103.6%
	Income (loss) from operations	$	75	$	120	$	167	$	154	$	130	73.3%

	Effective Federal Income Tax Rate		27.5%		31.3%		32.4%		32.6%		30.3%

	Average Equity, Excluding Goodwill and AOCI	$	6,405	$	6,320	$	6,272	$	6,410	$	6,581	2.7%

	ROE, Excluding Goodwill and AOCI		4.7%		7.6%		10.6%		9.6%		7.9%

	Average Account Values	$	43,795	$	44,162	$	44,792	$	45,485	$	46,147	5.4%

	In-Force Face Amount
	UL and other	$	331,690	$	333,006	$	334,601	$	336,851	$	337,338	1.7%
	Term insurance		335,762		342,366		350,047		356,083		361,247	7.6%
	Total in-force face amount	$	667,452	$	675,372	$	684,648	$	692,934	$	698,585	4.7%


Page 15


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	489	$	478	$	485	$	487	$	495	1.2%
	Net investment income		42		43		45		47		43	2.4%
	Other revenues		3		4		4		3		3	0.0%
	Total operating revenues		534		525		534		537		541	1.3%
	Operating expenses:
	Interest credited		1		1		1		1		-	-100.0%
	Benefits		340		345		291		345		351	3.2%
	Commissions incurred		62		61		57		67		63	1.6%
	Other expenses incurred		93		97		102		116		96	3.2%
	Amounts capitalized		(15)		(17)		(14)		(30)		(13)	13.3%
	Amortization		45		15		53		13		33	-26.7%
	Total operating expenses		526		502		490		512		530	0.8%
	Income (loss) from operations before taxes		8		23		44		25		11	37.5%
	Federal income tax expense (benefit)		3		8		16		9		4	33.3%
	Income (loss) from operations	$	5	$	15	$	28	$	16	$	7	40.0%

	Effective Federal Income Tax Rate		35.0%		35.0%		35.0%		35.0%		35.0%

	Average Equity, Excluding Goodwill and AOCI	$	1,203	$	1,159	$	1,096	$	1,070	$	1,065	-11.5%

	ROE, Excluding Goodwill and AOCI		1.8%		5.1%		10.4%		6.1%		2.6%

	Loss Ratios by Product Line
	Life		71.1%		70.4%		66.1%		66.1%		72.5%
	Disability		67.2%		74.8%		52.9%		76.4%		68.9%
	Dental		73.5%		70.4%		66.6%		67.0%		73.3%
	Total non-medical		69.6%		72.5%		60.1%		70.9%		71.0%



Page 16


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Other Operations
	Operating revenues:
	Insurance premiums	$	3	$	4	$	3	$	2	$	3	0.0%
	Net investment income		61		56		61		67		63	3.3%
	Amortization of deferred gain on
	business sold through reinsurance		18		18		18		18		18	0.0%
	Other revenues		-		1		2		-		4	NM
	Total operating revenues		82		79		84		87		88	7.3%
	Operating expenses:
	Interest credited		20		19		17		18		18	-10.0%
	Benefits		29		32		49		34		28	-3.4%
	Commissions and other expenses		(8)		6		19		32		10	225.0%
	Interest and debt expenses		68		68		66		67		64	-5.9%
	Strategic digitization expense		-		-		-		8		9	NM
	Total operating expenses		109		125		151		159		129	18.3%
	Income (loss) from operations before taxes		(27)		(46)		(67)		(72)		(41)	-51.9%
	Federal income tax expense (benefit)		(15)		(18)		(41)		(35)		(28)	-86.7%
	Income (loss) from operations	$	(12)	$	(28)	$	(26)	$	(37)	$	(13)	-8.3%















Page 17


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	DAC, VOBA, and DSI
	Balance as of beginning-of-period	$	9,766	$	9,235	$	8,522	$	8,256	$	9,377	-4.0%
	Deferrals		309		332		345		385		325	5.2%
	Operating amortization		(265)		(250)		(523)		(267)		(244)	7.9%
	Deferrals, net of operating amortization		44		82		(178)		118		81	84.1%
	Amortization associated with benefit ratio unlocking		2		(1)		(8)		2		(11)	NM
	Adjustment related to realized (gains) losses		(4)		(1)		(26)		50		(5)	-25.0%
	Adjustment related to unrealized (gains) losses		(573)		(793)		(54)		951		(168)	70.7%
	Balance as of end-of-period	$	9,235	$	8,522	$	8,256	$	9,377	$	9,274	0.4%

	DFEL
	Balance as of beginning-of-period	$	1,952	$	1,696	$	1,357	$	1,286	$	1,874	-4.0%
	Deferrals		136		150		164		181		169	24.3%
	Operating amortization		(84)		(92)		(151)		(100)		(82)	2.4%
	Deferrals, net of operating amortization		52		58		13		81		87	67.3%
	Amortization associated with benefit ratio unlocking		-		-		(1)		-		(1)	NM
	Adjustment related to realized (gains) losses		(1)		1		(5)		2		(4)	NM
	Adjustment related to unrealized (gains) losses		(307)		(398)		(78)		505		(160)	47.9%
	Balance as of end-of-period	$	1,696	$	1,357	$	1,286	$	1,874	$	1,796	5.9%

	DAC, VOBA, DSI, and DFEL Balance as
	of End-of-Period, After-Tax	$	4,900	$	4,657	$	4,531	$	4,877	$	4,861	-0.8%











Page 18


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Fixed Annuities
	Balance as of beginning-of-period	$	19,082	$	19,448	$	19,598	$	19,634	$	19,723	3.4%
	Gross deposits		668		478		420		411		562	-15.9%
	Full surrenders and deaths		(285)		(345)		(412)		(321)		(343)	-20.4%
	Other contract benefits		(127)		(130)		(137)		(148)		(137)	-7.9%
	Net flows		256		3		(129)		(58)		82	-68.0%
	Reinvested interest credited		103		143		163		145		220	113.6%
	Sales inducements deferred		7		4		2		2		2	-71.4%
	Balance as of end-of-period, gross		19,448		19,598		19,634		19,723		20,027	3.0%
	Reinsurance ceded		(619)		(608)		(597)		(584)		(572)	7.6%
	Balance as of end-of-period, net	$	18,829	$	18,990	$	19,037	$	19,139	$	19,455	3.3%

	Variable Annuities
	Balance as of beginning-of-period	$	103,146	$	102,903	$	103,861	$	106,473	$	105,766	2.5%
	Gross deposits		1,685		1,635		1,518		1,399		1,454	-13.7%
	Full surrenders and deaths		(1,030)		(1,160)		(1,312)		(1,236)		(1,439)	-39.7%
	Other contract benefits		(946)		(930)		(945)		(1,037)		(1,041)	-10.0%
	Net flows		(291)		(455)		(739)		(874)		(1,026)	NM
	Change in market value and reinvestment		48		1,413		3,351		167		4,735	NM
	Balance as of end-of-period, gross		102,903		103,861		106,473		105,766		109,475	6.4%
	Reinsurance ceded		(1)		-		-		-		-	100.0%
	Balance as of end-of-period, net	$	102,902	$	103,861	$	106,473	$	105,766	$	109,475	6.4%

	Total
	Balance as of beginning-of-period	$	122,228	$	122,351	$	123,459	$	126,107	$	125,489	2.7%
	Gross deposits		2,353		2,113		1,938		1,810		2,016	-14.3%
	Full surrenders and deaths		(1,315)		(1,505)		(1,724)		(1,557)		(1,782)	-35.5%
	Other contract benefits		(1,073)		(1,060)		(1,082)		(1,185)		(1,178)	-9.8%
	Net flows		(35)		(452)		(868)		(932)		(944)	NM
	Change in market value and reinvestment		151		1,556		3,514		312		4,955	NM
	Sales inducements deferred		7		4		2		2		2	-71.4%
	Balance as of end-of-period, gross		122,351		123,459		126,107		125,489		129,502	5.8%
	Reinsurance ceded		(620)		(608)		(597)		(584)		(572)	7.7%
	Balance as of end-of-period, net	$	121,731	$	122,851	$	125,510	$	124,905	$	128,930	5.9%

Page 19


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	General Account
	Balance as of beginning-of-period	$	16,588	$	16,727	$	16,996	$	17,387	$	17,883	7.8%
	Gross deposits		420		448		555		681		710	69.0%
	Withdrawals		(572)		(483)		(456)		(557)		(538)	5.9%
	Net flows		(152)		(35)		99		124		172	213.2%
	Transfers between fixed and variable accounts		168		178		163		238		1	-99.4%
	Reinvestment interest credited		123		126		129		134		136	10.6%
	Balance as of end-of-period	$	16,727	$	16,996	$	17,387	$	17,883	$	18,192	8.8%

	Separate Account and Mutual Funds
	Balance as of beginning-of-period	$	37,512	$	37,772	$	38,434	$	39,881	$	40,551	8.1%
	Gross deposits		1,371		1,212		1,244		1,725		1,542	12.5%
	Withdrawals		(1,141)		(1,173)		(1,246)		(1,463)		(1,598)	-40.1%
	Net flows		230		39		(2)		262		(56)	NM
	Transfers between fixed and variable accounts		(149)		(155)		(126)		(172)		(8)	94.6%
	Change in market value and reinvestment		179		778		1,575		580		2,054	NM
	Balance as of end-of-period	$	37,772	$	38,434	$	39,881	$	40,551	$	42,541	12.6%

	Total
	Balance as of beginning-of-period	$	54,100	$	54,499	$	55,430	$	57,268	$	58,434	8.0%
	Gross deposits		1,791		1,660		1,799		2,406		2,252	25.7%
	Withdrawals		(1,713)		(1,656)		(1,702)		(2,020)		(2,136)	-24.7%
	Net flows		78		4		97		386		116	48.7%
	Transfers between fixed and variable accounts		19		23		37		66		(7)	NM
	Change in market value and reinvestment		302		904		1,704		714		2,190	NM
	Balance as of end-of-period	$	54,499	$	55,430	$	57,268	$	58,434	$	60,733	11.4%









Page 20


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	General Account
	Balance as of beginning-of-period	$	35,545	$	35,640	$	35,775	$	35,975	$	36,272	2.0%
	Deposits		945		992		1,050		1,159		1,042	10.3%
	Withdrawals and deaths		(317)		(294)		(270)		(241)		(403)	-27.1%
	Net flows		628		698		780		918		639	1.8%
	Contract holder assessments		(868)		(898)		(921)		(975)		(969)	-11.6%
	Reinvested interest credited		335		335		341		354		353	5.4%
	Balance as of end-of-period, gross		35,640		35,775		35,975		36,272		36,295	1.8%
	Reinsurance ceded		(763)		(760)		(756)		(747)		(738)	3.3%
	Balance as of end-of-period, net	$	34,877	$	35,015	$	35,219	$	35,525	$	35,557	1.9%

	Separate Account
	Balance as of beginning-of-period	$	9,696	$	9,830	$	10,172	$	10,763	$	11,058	14.0%
	Deposits		293		399		440		489		372	27.0%
	Withdrawals and deaths		(91)		(119)		(118)		(198)		(87)	4.4%
	Net flows		202		280		322		291		285	41.1%
	Contract holder assessments		(135)		(143)		(153)		(158)		(152)	-12.6%
	Change in market value and reinvestment		67		205		422		162		581	NM
	Balance as of end-of-period, gross		9,830		10,172		10,763		11,058		11,772	19.8%
	Reinsurance ceded		(786)		(785)		(800)		(794)		(824)	-4.8%
	Balance as of end-of-period, net	$	9,044	$	9,387	$	9,963	$	10,264	$	10,948	21.1%

	Total
	Balance as of beginning-of-period	$	45,241	$	45,470	$	45,947	$	46,738	$	47,330	4.6%
	Deposits		1,238		1,391		1,490		1,648		1,414	14.2%
	Withdrawals and deaths		(408)		(413)		(388)		(439)		(490)	-20.1%
	Net flows		830		978		1,102		1,209		924	11.3%
	Contract holder assessments		(1,003)		(1,041)		(1,074)		(1,133)		(1,121)	-11.8%
	Change in market value and reinvestment		402		540		763		516		934	132.3%
	Balance as of end-of-period, gross		45,470		45,947		46,738		47,330		48,067	5.7%
	Reinsurance ceded		(1,549)		(1,545)		(1,556)		(1,541)		(1,562)	-0.8%
	Balance as of end-of-period, net	$	43,921	$	44,402	$	45,182	$	45,789	$	46,505	5.9%

Page 21


	Lincoln Financial Group
	Select Investment Data
	Unaudited (millions of dollars)

		As of 3/31/16				As of 12/31/16				As of 3/31/17
		Amount		%		Amount		%		Amount		%
	AFS and Trading Securities, at Fair Value
	AFS securities:
	Corporate bonds	$	76,956		84.7%	$	78,149		85.6%	$	79,841		85.8%
	U.S. government bonds		450		0.5%		419		0.5%		576		0.6%
	Foreign government bonds		532		0.6%		506		0.6%		456		0.5%
	Mortgage-backed securities		4,028		4.4%		3,964		4.3%		4,008		4.3%
	Asset-backed collateralized debt obligations		628		0.7%		744		0.8%		776		0.8%
	State and municipal bonds		4,744		5.2%		4,627		5.1%		4,826		5.2%
	Hybrid and redeemable preferred securities		726		0.8%		604		0.7%		619		0.7%
	VIEs’ fixed maturity securities		599		0.7%		200		0.2%		-		0.0%
	Equity securities		245		0.3%		275		0.3%		276		0.3%
	Total AFS securities		88,908		97.9%		89,488		98.1%		91,378		98.2%
	Trading securities		1,864		2.1%		1,712		1.9%		1,703		1.8%
	Total AFS and trading securities	$	90,772		100.0%	$	91,200		100.0%	$	93,081		100.0%

	AFS and Trading Securities, at Amortized Cost
	Fixed maturity securities	$	84,853		99.7%	$	86,003		99.7%	$	87,337		99.7%
	Equity securities		231		0.3%		260		0.3%		263		0.3%
	Total AFS and trading securities	$	85,084		100.0%	$	86,263		100.0%	$	87,600		100.0%

	Percentage of Fixed Maturity AFS Securities, at Amortized Cost
	Investment grade				94.6%				95.0%				95.4%
	Below investment grade				5.4%				5.0%				4.6%










Page 22


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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Realized Gain (Loss), Pre-Tax
	Total operating realized gain (loss)	$	44	$	44	$	44	$	48	$	41	-6.8%
	Total excluded realized gain (loss)		(158)		(89)		(7)		(265)		(80)	49.4%
	Total realized gain (loss), pre-tax	$	(114)	$	(45)	$	37	$	(217)	$	(39)	65.8%

	Excluded Realized Gain (Loss) Net of
	Benefit Ratio Unlocking, After-Tax
	Total excluded realized gain (loss)	$	(102)	$	(57)	$	(4)	$	(172)	$	(52)	49.0%
	Benefit ratio unlocking		(4)		9		30		(6)		45	NM
	Net gain (loss), after-tax	$	(106)	$	(48)	$	26	$	(178)	$	(7)	93.4%

	Realized Gain (Loss) Net of Benefit Ratio
	Unlocking, After-Tax
	Realized gain (loss) related to investments	$	(64)	$	(47)	$	(28)	$	(10)	$	(1)	98.4%
	Variable annuity net derivative results:
	Hedge program performance, including unlocking
	for GLB reserves hedged		(94)		(23)		82		(87)		9	109.6%
	GLB non-performance risk component		67		24		(32)		(91)		(9)	NM
	Total variable annuity net derivative results		(27)		1		50		(178)		-	100.0%
	Indexed annuity forward-starting option		(15)		(2)		4		10		(6)	60.0%
	Excluded realized gain (loss) net of
	benefit ratio unlocking, after-tax	$	(106)	$	(48)	$	26	$	(178)	$	(7)	93.4%

	Components of Realized Gain (Loss)
	Related to Investments, After-Tax
	OTTI	$	(23)	$	(18)	$	(8)	$	(16)	$	(3)	88.9%
	Other realized gain (loss) related to certain investments		(46)		(24)		(19)		(8)		(6)	86.0%
	Gain (loss) on the mark-to-market on certain instruments		5		(5)		(1)		14		8	60.0%
	Total realized gain (loss) related
	to investments, after-tax	$	(64)	$	(47)	$	(28)	$	(10)	$	(1)	98.4%



Page 23

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

		For the Three Months Ended
		3/31/16		6/30/16		9/30/16		12/31/16		3/31/17		Change
	Revenues
	Total revenues	$	3,243	$	3,307	$	3,525	$	3,254	$	3,500	7.9%
	Less:
	Excluded realized gain (loss)		(158)		(89)		(7)		(265)		(80)	49.4%
	Amortization of DFEL on benefit ratio unlocking		-		-		1		(1)		1	NM
	Amortization of deferred gains arising from reserve
	changes on business sold through reinsurance		1		1		1		1		1	0.0%
	Operating revenues	$	3,400	$	3,395	$	3,530	$	3,519	$	3,578	5.2%

	Net Income
	Net income (loss)	$	211	$	325	$	467	$	190	$	435	106.2%
	Less:
	Excluded realized gain (loss)		(102)		(57)		(4)		(172)		(52)	49.0%
	Benefit ratio unlocking		(4)		9		30		(6)		45	NM
	Gain (loss) on early extinguishment of debt		-		-		-		(41)		-	NM
	Income (loss) from operations	$	317	$	373	$	441	$	409	$	442	39.4%

	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	0.83	$	1.35	$	2.00	$	0.82	$	1.89	127.7%
	Less:
	Excluded realized gain (loss)		(0.41)		(0.25)		(0.02)		(0.75)		(0.22)	46.3%
	Benefit ratio unlocking		(0.02)		0.04		0.13		(0.03)		0.19	NM
	Gain (loss) on early extinguishment of debt		-		-		-		(0.17)		-	NM
	Income (loss) from operations	$	1.26	$	1.56	$	1.89	$	1.77	$	1.92	52.4%











Page 24

LINCOLN NATIONAL CORP - FORM 8-K - EX-99.2 - May 3, 2017

Attached files