Form 8-K - Current report

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 6, 2025

Date of Report (Date of earliest event reported)

Lincoln National Corporation

(Exact name of registrant as specified in its charter)

Indiana

1-6028

35-1140070

(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 class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	LNC	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 9.000% Non-Cumulative Preferred Stock, Series D	LNC PRD	New 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 6, 2025, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter and full year ended December 31, 2024, 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, 2024, 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 6, 2025, in connection with the Company’s fourth quarter 2024 earnings conference call scheduled for the same date, the Company made available on its website a fourth quarter 2024 earnings supplement presentation dated February 6, 2025, 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.



Exhibit Number			Description
99.1			Press release dated February 6, 2025, announcing Lincoln National Corporation’s financial results for the quarter and full year ended December 31, 2024.
99.2			Lincoln National Corporation Statistical Supplement for the quarter ended December 31, 2024.
99.3			Fourth Quarter 2024 Earnings Supplement dated February 6, 2025.
104			Cover Page Interactive Data File (embedded within the Inline XBRL document).

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

/s/ Adam Cohen

Name:

Adam Cohen

Title:

Senior Vice President, Chief Accounting Officer and Treasurer

Date: February 6, 2025

For Immediate Release

Lincoln Financial Reports 2024 Fourth Quarter and Full Year Results

____________________________________

Radnor, PA, February 6, 2025: Lincoln Financial (NYSE: LNC) today reported financial results for the fourth quarter and full year ended December 31, 2024.

•Fourth quarter net income available to common stockholders was $1.7 billion, or $9.63 per diluted share.

•Fourth quarter adjusted operating income available to common stockholders was $332 million, or $1.91 per diluted share.

•The primary differences between net income and adjusted operating income resulted from the following factors:

◦$1.2 billion of the pre-tax net income, or $6.83 per diluted share, was primarily due to changes in market risk benefits driven by the increase in interest rates, a non-economic impact.

◦$587 million of the pre-tax net income, or $3.37 per diluted share, was primarily 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 (loss).

•Lincoln's estimated risk-based capital ("RBC") ratio was in excess of 430% at year end.

"We achieved strong results in the fourth quarter of 2024, capping a year that demonstrated our continued momentum to build a solid capital foundation, increase operational efficiency, and deliver profitable growth," said Ellen Cooper, Chairman, President and CEO of Lincoln Financial. "Our accelerated pace was led by Group Protection which reported a record fourth quarter and full year for sales, earnings, and margin. Annuities generated robust earnings growth for the same reporting periods, with a diversified product mix supporting its highest full-year sales in five years. We refocused our Life business to emphasize more risk-sharing products, and our Retirement business saw full-year total deposit growth of 25%, driving its tenth consecutive year of positive flows.

The strength of our broad-based execution sets the stage for future success in positioning Lincoln for sustained long-term value creation as we further leverage our competitive advantages, including our powerful franchise, distribution leadership, broad product portfolio, and trusted brand.”

Business Highlights

Our 2024 fourth-quarter and full-year results were driven by the substantial progress of each of our businesses in executing their strategic priorities.

Retail Solutions

•Annuities reported operating income of $303 million, 14% higher than the 2023 fourth quarter (excluding the impact of a fourth quarter 2023 model refinement), driven by account balance growth due to strong markets and higher spread income. Fourth-quarter sales were $3.7 billion, rounding out a strong year in which sales increased 7% compared to the prior year and reached the highest level since 2019. The strength of this result was attributable to a diversified product mix that addressed a range of customer preferences, with spread-based products comprising approximately two-thirds of sales.

•Life Insurance reported an operating loss of $15 million, compared to an operating loss of $6 million in the prior-year quarter. The loss was due to unfavorable mortality primarily driven by higher-than-expected severity, partially offset by higher alternative investment income and lower net G&A expenses. Total sales were $119 million, essentially unchanged sequentially. We continue to focus on growth in accumulation and protection products with more risk sharing, which are expected to generate more stable cash flows and higher risk-adjusted returns over time.

Workplace Solutions

•Group Protection reported operating income of $107 million in the quarter, which more than doubled year over year, and its margin expanded to 8.4%, increasing 430 basis points for the same period. Group generated record sales and earnings for the full year , resulting in nearly 300 basis points of margin expansion year over year (excluding the impact of the annual assumption review in both periods). This outcome was driven by continued favorable long-term disability results, improved mortality, and strong operational execution. Premiums increased by 3% for the same period, reflecting ongoing pricing discipline on new sales and renewals.

•Retirement Plan Services reported operating income of $43 million in the quarter, up 13% year over year, due to higher account balances and lower net G&A expenses. First-year sales were

$1.3 billion in the quarter, 46% higher than the prior-year period, and full-year total deposits increased 25% compared to 2023 as our differentiated service model and product innovation continued to resonate within the market. Additionally, net inflows were positive for a tenth consecutive year.

Earnings Summary


(in millions, except per share data)	As of or For the Three Months Ended				As of or For the Twelve Months Ended
	12/31/23(1)		12/31/24		12/31/23(1)		12/31/24
Net income (loss)	$	(1,235)	$	1,686	$	(752)	$	3,275
Net income (loss) available to common stockholders — diluted	(1,246)		1,675		(835)		3,187
Net income (loss) per diluted share available to common stockholders(2)	$	(7.35)	$	9.63	$	(4.92)	$	18.41
Adjusted income (loss) from operations	263		343		990		1,315
Adjusted income (loss) from operations available to common stockholders	252		332		908		1,224
Adjusted income (loss) from operations per diluted share available to common stockholders	$	1.47	$	1.91	$	5.32	$	7.07

(1) Prior period amounts have been recast to conform to the current period presentation.

(2) In periods where a net loss is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as using diluted shares would result in a lower loss per share.

Reconciliation of Net Income to Adjusted Income from Operations(1)


(in millions)	For the Three Months Ended				For the Twelve Months Ended
	12/31/23(1)		12/31/24		12/31/23(1)		12/31/24
Net income (loss) available to common stockholders — diluted	$	(1,246)	$	1,675	$	(835)	$	3,187
Less:
Preferred stock dividends declared	(11)		(11)		(82)		(91)
Adjusted for deferred units of LNC stock in our deferred compensation plans	—		—		(1)		3
Net income (loss)	(1,235)		1,686		(752)		3,275
Less:
Net annuity product features, pre-tax	(1,008)		1,187		68		2,508
Net life insurance product features, pre-tax	(225)		46		(393)		(207)
Credit loss-related adjustments, pre-tax	(27)		(28)		(80)		(152)
Investment gains (losses), pre-tax(2)	167		(67)		(959)		(483)
Changes in the fair value of reinsurance-related embedded derivatives,
trading securities and certain mortgage loans, pre-tax(2)	(776)		587		(802)		535
Gains (losses) on other non-financial assets - sale of
subsidiaries/businesses, pre-tax(2)	—		—		—		582
Other items, pre-tax(2)	(32)		(32)		(55)		(270)
Income tax benefit (expense) related to the above pre-tax items	403		(350)		479		(553)
Adjusted income (loss) from operations	$	263	$	343	$	990	$	1,315
Adjusted income (loss) from operations available to common stockholders	$	252	$	332	$	908	$	1,224

(1) See the definition of Adjusted Income from Operations at the back of this press release for revisions made to the definition in the third quarter of 2024 and further explanation of reconciliation line items. Prior period impacts have been recast to conform to the current period presentation.

(2) Refer to the full reconciliation at the back of this release for footnotes.

Variable Investment Income


Alternative Investment Income, after-tax(1)	For the Three Months Ended										For the Twelve Months Ended
(in millions)	12/31/23		3/31/24		6/30/24		9/30/24		12/31/24		12/31/23		12/31/24
Annuities	$	3	$	2	$	1	$	3	3		$	13	$	9
Life Insurance	39		58		26		73		76		163		233
Group Protection	2		1		1		1		1		7		4
Retirement Plan Services	2		1		—		2		2		8		5
Other Operations	—		—		—		—		1		1		1
Consolidated	$	46	$	62	$	28	$	79	$	83	$	192	$	252

(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(1)	For the Three Months Ended										For the Twelve Months Ended
(in millions)	12/31/23		3/31/24		6/30/24		9/30/24		12/31/24		12/31/23		12/31/24
Annuities	$	1	$	1	$	—	$	—	$	2	$	2	$	3
Life Insurance	2		—		2		3		1		4		6
Group Protection	—		—		—		1		1		1		2
Retirement Plan Services	—		1		—		—		1		1		2
Other Operations	—		—		—		—		—		—		—
Consolidated	$	3	$	2	$	2	$	4	$	5	$	8	$	13

(1) Prepayment income is actual income reported in the quarter.

Items Impacting Segment and Other Operations Results


	For the Three Months Ended December 31, 2024
(in millions)	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations
After-tax impacts:
Alternative investment income compared to return target(1)	$	—	$	7	$	—	$	—	$	1
Prepayment income(2)	2		1		1		1		—
Annual assumption review	—		—		—		—		—
Tax items	—		—		—		—		—
Other	—		—		—		—		—
Total impact	$	2	$	8	$	1	$	1	$	1

(1) Alternative investment income comparison to return target assumes a 10% annual return on the alternative investment portfolio.

(2) Prepayment income is actual income reported in the quarter.

Capital and Liquidity


	For the Three Months Ended
(in millions, except percent and per share data)	12/31/23			3/31/24		6/30/24		9/30/24		12/31/24
Holding company available liquidity(1)	$	458		$	466	$	463	$	459	$	463
RBC ratio(2)	407		%	400-410%		>420%		>420%		>430%
Book value per share (BVPS), including AOCI	$	34.81		$	38.46	$	40.78	$	46.97	$	42.60
Book value per share, excluding AOCI(3)	$	55.30		$	61.63	$	66.37	$	62.67	$	72.06
Adjusted book value per share(3)	$	64.97		$	65.01	$	68.51	$	70.04	$	72.34

(1) Holding company available liquidity presented as of 3/31/2024, 6/30/2024, 9/30/2024 and 12/31/2024 does not include the $300 million prefunding of a 2025 maturity.

(2) The RBC ratio is calculated annually as of December 31, but is reported in the March statutory reporting, and as such, the quarterly ratios presented for 3/31/2024, 6/30/2024, 9/30/2024 and 12/31/2024 are considered estimates based on information known at the time of reporting.

(3) Refer to the reconciliation to book value per share, including AOCI, at the back of this release.

Annuities


(in millions, except ROA data)	As of or For the Three Months Ended												As of or For the Twelve Months Ended
	12/31/23(1)		3/31/24		6/30/24		9/30/24		12/31/24		Change		12/31/23(1)		12/31/24		Change
Total operating revenues	$	(525)	$	1,269	$	1,209	$	1,195	$	1,223	NM		$	3,002	$	4,896	63.1	%
Total operating expenses	(846)		952		858		836		864		202.1	%	1,789		3,508		96.1	%
Income (loss) from operations before taxes	321		317		351		359		359		11.8	%	1,213		1,388		14.4	%
Federal income tax expense (benefit)	42		58		54		58		56		33.3	%	140		228		62.9	%
Income (loss) from operations	$	279	$	259	$	297	$	301	$	303	8.6	%	$	1,073	$	1,160	8.1	%
Income (loss) from operations, excluding impact of annual assumption review	$	279	$	259	$	297	$	300	$	303	8.6	%	$	1,085	$	1,159	6.8	%
Total sales	$	4,365	$	2,847	$	3,817	$	3,375	$	3,689	(15.5)	%	$	12,840	$	13,727	6.9	%
Net flows	$	285	$	(1,993)	$	(954)	$	(1,637)	$	(1,891)	NM		$	(2,034)	$	(6,475)	NM
Average account balances, net of reinsurance	$	147,419	$	155,291	$	158,370	$	161,680	$	165,424	12.2	%	$	148,206	$	160,032	8.0	%
Return on average account balances (bps)	76		67		75		74		73				72		72

(1) Day one impacts related to the reinsurance transaction with Fortitude Re caused line-item volatility in the fourth quarter 2023.

•Income from operations was $303 million for the fourth quarter, a 14% increase compared to the prior-year quarter (excluding the impact of a $14 million fourth-quarter 2023 model refinement). This increase was primarily due to favorable equity markets and higher spread income.

•Total sales were $3.7 billion in the quarter, capping a strong year in which sales increased 7% compared to the prior year.

•Net outflows were approximately $1.9 billion in the quarter, compared to net inflows of $285 million in the prior-year quarter, due to the effect of higher interest rates and strong equity markets.

•Average account balances, net of reinsurance, were $160 billion for the full year, increasing 8% year over year. This result was primarily due to growth in RILA, driven by strong sales momentum throughout 2024. RILA represented 21% of total annuity ending account balances, net of reinsurance, a 3 percentage point increase year over year.

Life Insurance


(in millions)	As for or For the Three Months Ended												As of or For the Twelve Months Ended
	12/31/23		3/31/24		6/30/24		9/30/24		12/31/24		Change		12/31/23		12/31/24		Change

Total operating revenues	$	1,667	$	1,541	$	1,511	$	1,589	$	1,608	(3.5)	%	$	6,907	$	6,248	(9.5)	%
Total operating expenses	1,681		1,591		1,562		1,568		1,634		(2.8)	%	7,138		6,353		(11.0)	%
Income (loss) from operations before taxes	(14)		(50)		(51)		21		(26)		(85.7)	%	(231)		(105)		54.5	%
Federal income tax expense (benefit)	(8)		(15)		(16)		(1)		(11)		(37.5)	%	(72)		(42)		41.7	%
Income (loss) from operations	$	(6)	$	(35)	$	(35)	$	22	$	(15)	NM		$	(159)	$	(63)	60.4	%
Income (loss) from operations, excluding the impact of annual assumption review	$	(6)	$	(35)	$	(35)	$	14	$	(15)	NM		$	(3)	$	(71)	NM
Average account balances, net of reinsurance	$	45,608	$	42,280	$	43,230	$	44,055	$	44,746	(1.9)	%	$	48,722	$	43,578	(10.6)	%
Total sales	$	144	$	91	$	105	$	122	$	119	(17.4)	%	$	542	$	438	(19.2)	%

•The loss from operations was $15 million, compared to a loss of $6 million in the prior-year quarter. This increase was driven by unfavorable mortality primarily due to higher-than-expected severity, partially offset by higher alternative investment income and lower net G&A expenses.

•Total sales were $119 million, essentially unchanged sequentially. We remain focused on growing our presence in accumulation and protection products with more risk-sharing, which are expected to generate more stable cash flows and higher risk-adjusted returns over time.

•Average account balances, net of reinsurance, were $45 billion, relatively flat versus the prior-year quarter.

Group Protection


(in millions, except margin data)	As of or For the Three Months Ended																	As of or For the Twelve Months Ended
	12/31/23			3/31/24			6/30/24			9/30/24			12/31/24			Change		12/31/23			12/31/24			Change
Total operating revenues	$	1,387		$	1,425		$	1,441		$	1,432		$	1,418		2.2	%	$	5,563		$	5,717		2.8	%
Total operating expenses	1,322			1,324			1,276			1,295			1,282			(3.0)	%	5,184			5,179			(0.1)	%
Income (loss) from operations before taxes	65			101			165			137			136			109.2	%	379			538			42.0	%
Federal income tax expense (benefit)	13			21			35			28			29			123.1	%	80			113			41.3	%
Income (loss) from operations	$	52		$	80		$	130		$	109		$	107		105.8	%	$	299		$	425		42.1	%
Income (loss) from operations, excluding the impact of annual assumption review	$	52		$	80		$	130		$	110		$	107		105.8	%	$	275		$	426		54.9	%
Insurance premiums	$	1,250		$	1,285		$	1,298		$	1,288		$	1,274		1.9	%	$	5,014		$	5,145		2.6	%
Total sales	$	398		$	144		$	161		$	84		$	467		17.3	%	$	693		$	856		23.5	%
Total loss ratio	76.6		%	75.0		%	70.1		%	71.4		%	71.0		%			74.5		%	71.9		%
Operating margin(1)	4.1		%	6.2		%	10.0		%	8.4		%	8.4		%			6.0		%	8.3		%
Operating margin, excluding the impact of annual assumption review	4.1		%	6.2		%	10.0		%	8.5		%	8.4		%			5.5		%	8.3		%

(1) Operating margin is calculated by dividing income (loss) from operations by insurance premiums.

•Income from operations was $107 million in the quarter, more than doubling compared to the
prior-year quarter. The margin was 8.4%, increasing 430 basis points for the same period. These results were driven by continued favorable long-term disability results, improved mortality trends, and strong operational execution.

•Sales increased 17% year over year with growth across all product categories.

•The total loss ratio was 71.0%, 560 basis points lower than the prior-year quarter. This result was due to the same factors that drove Group's margin improvement.

•Insurance premiums were $1.3 billion in the quarter, increasing 2% as we continued to maintain pricing discipline.

Retirement Plan Services


(in millions, except ROA data)	As of or For the Three Months Ended												As of or For the Twelve Months Ended
	12/31/23		3/31/24		6/30/24		9/30/24		12/31/24		Change		12/31/23		12/31/24		Change
Total operating revenues	$	322	$	322	$	327	$	335	$	337	4.7	%	$	1,310	$	1,321	0.8	%
Total operating expenses	278		281		281		286		288		3.6	%	1,109		1,135		2.3	%
Income (loss) from operations before taxes	44		41		46		49		49		11.4	%	201		186		(7.5)	%
Federal income tax expense (benefit)	6		5		6		5		6		0.0%		30		23		(23.3)	%
Income (loss) from operations	$	38	$	36	$	40	$	44	$	43	13.2	%	$	171	$	163	(4.7)	%

Deposits	$	2,972	$	3,802	$	3,282	$	4,180	$	3,473	16.9	%	$	11,778	$	14,738	25.1	%
Net flows	$	(332)	$	391	$	(197)	$	651	$	(732)	NM		$	132	$	112	(15.2)	%
Average account balances	$	96,045	$	103,240	$	106,374	$	110,550	$	113,711	18.4	%	$	94,520	$	108,259	14.5	%
Return on average account balances (bps)	16		14		15		16		15				18		15

•Income from operations was $43 million in the quarter, a 13% improvement over the prior year. This result was primarily due to higher account balances and lower net G&A expenses.

•Total deposits for the quarter were $3.5 billion, 17% higher than the prior-year quarter, as our differentiated service model and product innovation continued to resonate in the market.

•Net outflows totaled $732 million for the quarter, driven by seasonally higher terminations, partially offset by continued strength in first-year sales. Net inflows for 2024 full year were $112 million, representing ten consecutive years of positive net flows.

•Average account balances for the quarter were $114 billion, increasing 18% from the prior year.

Other Operations


(in millions)	As of or For the Three Months Ended												As of or For the Twelve Months Ended
	12/31/23(1)		3/31/24		6/30/24		9/30/24		12/31/24		Change		12/31/23(2)		12/31/24		Change
Total operating revenues	$	(884)	$	27	$	39	$	52	$	42	104.8	%	$	(755)	$	160	121.2	%
Total operating expenses	(751)		146		161		157		160		121.3	%	(249)		626		NM
Income (loss) from operations before taxes	(133)		(119)		(122)		(105)		(118)		11.3	%	(506)		(466)		7.9	%
Federal income tax expense (benefit)	(33)		(23)		(25)		(21)		(23)		30.3	%	(112)		(96)		14.3	%
Income (loss) from operations(3)	$	(100)	$	(96)	$	(97)	$	(84)	$	(95)	5.0	%	$	(394)	$	(370)	6.1	%

(1) Day one impacts related to the reinsurance transaction with Fortitude Re caused line-item volatility in the fourth quarter of 2023.

(2) The twelve-month period ended December 31, 2023 has been recast to conform to the revised definition of income (loss) from operations. See Definitions of Non-GAAP Measures at the back of this press release.

(3) Income (loss) from operations does not include preferred dividends.

Unrealized Gains and Losses

The Company reported a net unrealized loss of $10.3 billion (pre-tax) on its available-for-sale securities as of December 31, 2024. This compared to a net unrealized loss of $8.7 billion (pre-tax) as of December 31, 2023, with the year-over-year increase primarily due to higher Treasury rates.

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 2024 statistical supplement and fourth quarter 2024 earnings supplement, which are available in the investor relations section of its website http://www.lincolnfinancial.com/investor.

Conference Call Information

Lincoln Financial will discuss the company’s fourth-quarter and full-year 2024 results with the investment community in a conference call beginning at 8:00 a.m. Eastern Time on Thursday, February 6, 2025.

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 6, 2025, at www.lincolnfinancial.com/webcast.

About Lincoln Financial

Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2024, 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, 2024, the company had $321 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, PA., Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

Contacts:

Tina Madon

Sarah Boxler

Investor Relations

Media Relations

Tina.Madon@LFG.com

Sarah.Boxler@LFG.com

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

In the third quarter of 2024, we revised our definition of adjusted income (loss) from operations to exclude the impact of certain additional items that are not indicative of the ongoing operations of the business and may obscure trends in the underlying performance of the Company. The presentation of prior period adjusted income (loss) from operations was recast for such third quarter 2024 revisions to conform to the current period presentation.

Adjusted income (loss) from operations is GAAP net income excluding the following items, as applicable:

•Items related to annuity product features, which include changes in MRBs, including gains and losses and benefit payments, 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, accounting policy changes and new regulations, including changes in tax law;

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

•Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;

•Income (loss) from discontinued operations;

•Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; 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; mark-to-market adjustment related to the LNC stock component of our deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and

•Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

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.

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, MRB-related impacts, GLB and GLB hedge instrument gains (losses), and the difference between amounts recognized in net income (loss) on reinsurance-related embedded derivatives and the underlying asset portfolios (“reinsurance-related embedded derivatives and portfolio gains (losses)”) 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.

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 and

Average Stockholders' Equity to Adjusted Average Stockholders' Equity


	For the				For the
(in millions, except per share data)	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2024		2023 (1)		2024		2023 (1)












Net Income (Loss) Available to Common
Stockholders – Diluted	$	1,675	$	(1,246)	$	3,187	$	(835)
Less:
Preferred stock dividends declared	(11)		(11)		(91)		(82)
Adjustment for deferred units of LNC stock in our
deferred compensation plans	—		—		3		(1)
Net Income (Loss)	1,686		(1,235)		3,275		(752)
Less:
Net annuity product features, pre-tax	1,187		(1,008)		2,508		68
Net life insurance product features, pre-tax	46		(225)		(207)		(393)
Credit loss-related adjustments, pre-tax	(28)		(27)		(152)		(80)
Investment gains (losses), pre-tax (2)	(67)		167		(483)		(959)
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, pre-tax (3)	587		(776)		535		(802)

Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses, pre-tax (4)	—		—		582		—
Other items, pre-tax (5)(6)(7)(8)	(32)		(32)		(270)		(55)
Income tax benefit (expense) related
to the above pre-tax items	(350)		403		(553)		479
Total adjustments	1,343		(1,498)		1,960		(1,742)
Adjusted Income (Loss) from Operations	$	343	$	263	$	1,315	$	990
Add:
Preferred stock dividends declared	(11)		(11)		(91)		(82)
Adjusted Income (Loss) from Operations Available to Common Stockholders	$	332	$	252	$	1,224	$	908

Earnings (Loss) Per Common Share – Diluted (9)
Net income (loss)	$	9.63	$	(7.35)	$	18.41	$	(4.92)
Adjusted income (loss) from operations	1.91		1.47		7.07		5.32

Stockholders’ Equity, Average
Stockholders' equity	$	8,641	$	5,046	$	8,022	$	5,437
Less:
Preferred stock	986		986		986		986
AOCI	(3,860)		(5,979)		(3,815)		(5,563)
Stockholders’ equity, excluding AOCI and preferred stock	11,515		10,039		10,851		10,014
MRB-related impacts	2,656		1,314		2,380		257
GLB and GDB hedge instruments gains (losses)	(2,913)		(1,857)		(2,695)		(1,155)
Reinsurance-related embedded derivatives and portfolio gains (losses)	(396)		(318)		(445)		(80)
Adjusted average stockholders' equity	$	12,168	$	10,900	$	11,611	$	10,992


(1)			Prior period impacts have been recast to conform to the current period presentation. See definitions of Non-GAAP measures earlier in this release.
(2)			Includes intent to sell impairments during the second and third quarters of 2023 of certain fixed maturity AFS securities in an unrealized loss
			position, resulting from the Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction.
(3)			Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
(4)			Relates to the sale of our wealth management business, which provided approximately $650 million of statutory capital benefit.


(5)			For the fourth quarter of 2024, includes certain legal accruals of $(15) million and regulatory accruals of $(12) million related to estimated
			state guaranty fund assessments net of estimated state premium tax recoveries; for the year ended 2024, includes certain legal accruals of
			$(129) million, primarily attributable to a first quarter 2024 accrual related to the settlement of cost of insurance litigation, and regulatory
			accruals of $(12) million; for the year ended 2023, includes certain legal accruals of $(12) million.
(6)			Includes severance expense related to initiatives to realign the workforce of $(2) million in the fourth quarter of 2024, and $(74) million and
			$(7) million for the years ended 2024 and 2023, respectively.
(7)			Includes transaction and integration costs related to mergers, acquisitions and divestitures of $(1) million and $(26) million in the fourth
			quarters of 2024 and 2023, respectively, and $(40) million and $(34) million for the years ended 2024 and 2023, respectively.
(8)			Includes deferred compensation mark-to-market adjustment of $(2) million and $(6) million in the fourth quarters of 2024 and 2023, respectively,
			and $(15) million and $(2) million for the years ended 2024 and 2023, respectively.
(9)			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.

Lincoln National Corporation

Reconciliation of Book Value per Share


		As of the Three Months Ended
		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24
Book Value Per Common Share
Book value per share	$	34.81	$	38.46	$	40.78	$	46.97	$	42.60
Less:
AOCI		(20.49)		(23.17)		(25.59)		(15.70)		(29.46)
Book value per share, excluding AOCI		55.30		61.63		66.37		62.67		72.06
Less:
MRB-related gains (losses)		6.38		15.10		15.66		12.56		18.51
GLB and GDB hedge instruments gains (losses)		(12.29)		(15.69)		(16.22)		(16.17)		(17.91)
Reinsurance-related embedded derivatives and portfolio gains (losses)		(3.76)		(2.79)		(1.58)		(3.76)		(0.88)
Adjusted book value per share	$	64.97	$	65.01	$	68.51	$	70.04	$	72.34

Lincoln National Corporation

Digest of Earnings


	For the
(in millions, except per share data)	Three Months Ended
	December 31,
	2024		2023

Revenues	$	5,063	$	700

Net Income (Loss)	$	1,686	$	(1,235)
Preferred stock dividends declared	(11)		(11)


Net Income (Loss) Available to Common
Stockholders – Diluted	$	1,675	$	(1,246)

Net Income (Loss) Per Common Share – Basic	$	9.80	$	(7.35)
Net Income (Loss) Per Common Share – Diluted (2)	$	9.63	$	(7.35)

Average Shares – Basic	170,939,128		169,661,997
Average Shares – Diluted	174,016,536		170,422,512

	For the
	Twelve Months Ended
	December 31,
	2024		2023

Revenues	$	18,442	$	11,645

Net Income (Loss)	$	3,275	$	(752)
Preferred stock dividends declared	(91)		(82)
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)	3		(1)
Net Income (Loss) Available to Common
Stockholders – Diluted	$	3,187	$	(835)

Net Income (Loss) Per Common Share – Basic	$	18.66	$	(4.92)
Net Income (Loss) Per Common Share – Diluted	$	18.41	$	(4.92)

Average Shares – Basic	170,597,104		169,562,903
Average Shares – Diluted	173,080,425		170,738,655

(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; our affiliate reinsurance arrangements; and restrictions on the payment of revenue sharing and 12b-1 distribution fees;

•Changes in tax law or the interpretation of or application of existing tax laws that could impact our tax costs and the products that we sell;

•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 or failure of the telecommunication, information technology or other operational systems of the company or the third parties on whom we rely or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches in security of such 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;

•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 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.

Statistical Supplement

Fourth Quarter 2024


			Lincoln Financial
			Table of Contents


			Notes .................................................................................................................................................................................................................................................................			1-3
			Credit Ratings ...................................................................................................................................................................................................................................................			4
			Consolidated
			Consolidated Statements of Income (Loss) ................................................................................................................................................................................................			5
			Consolidated Balance Sheets .......................................................................................................................................................................................................................			6-7
			Earnings, Shares and Return on Equity .........................................................................................................................................................................................................			8
			Key Stakeholder Metrics ...............................................................................................................................................................................................................................			9
			Select Earnings Drivers By Segment ............................................................................................................................................................................................................			10
			Sales By Segment ..........................................................................................................................................................................................................................................			11
			Operating Revenues and General and Administrative Expenses By Segment and Other Operations......................................................................................................			12
			Operating Commissions and Other Expenses .............................................................................................................................................................................................			13

			Select Earnings and Operational Data from Business Segments and Other Operations

			Annuities .........................................................................................................................................................................................................................................................			14
			Life Insurance ................................................................................................................................................................................................................................................			15
			Group Protection ............................................................................................................................................................................................................................................			16
			Retirement Plan Services ..............................................................................................................................................................................................................................			17
			Other Operations ............................................................................................................................................................................................................................................			18
			DAC and Account Balance Roll Forwards
			Consolidated DAC, VOBA, DSI and DFEL Roll Forwards ..............................................................................................................................................................................			19
			Account Balance Roll Forwards:
			Annuities ......................................................................................................................................................................................................................................................			20-21
			Life Insurance ..............................................................................................................................................................................................................................................			22
			Retirement Plan Services ............................................................................................................................................................................................................................			23
			Investment Information
			Fixed-Income Asset Class .............................................................................................................................................................................................................................			24
			Fixed-Income Credit Quality ..........................................................................................................................................................................................................................			25
			GAAP to Non-GAAP Reconciliations
			Select GAAP to Non-GAAP Reconciliations .................................................................................................................................................................................................			26-29

Tab le of Contents

Lincoln Financial

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 26.

the business and may obscure trends in the underlying performance of the Company. The twelve month period ended December 31, 2023, has been recast for such third quarter 2024 revisions

to conform to the current period presentation.

Adjusted Income (Loss) From Operations

Adjusted income (loss) from operations is GAAP net income excluding the 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, accounting policy changes and new regulations, including changes in tax law;

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

• Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;

• Income (loss) from discontinued operations.

acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; mark-to-market adjustment related to the LNC stock component of our

deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of

defined benefit obligations; and

• Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends.

Adjusted Operating Revenues

Adjusted operating revenues represent GAAP revenues excluding the 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;

(continued on following page)

Tab le of Contents

Lincoln Financial

Notes

Non-GAAP Performance Measures, Continued

(continued from the previous page)

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

• Gains (losses) on other non-financial assets.

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.

Stockholders’ Equity, Excluding AOCI and Preferred Stock

Stockholders’ equity, excluding accumulated other comprehensive income (loss) (“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

Adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts, GLB and GDB hedge instruments gains (losses) and the difference between

amounts recognized in net income (loss) on reinsurance-related embedded derivatives and the underlying asset portfolios (“reinsurance-related embedded derivatives and portfolio gains (losses)”).

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 adjusted stockholders’ equity 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.

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Lincoln Financial

Notes

Computations

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

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

• We exclude deferred units of LNC stock that are antidilutive from our diluted net income (loss) 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.

Definitions

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 2 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.

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 6, 2025, and has not been updated since that date. Lincoln Financial does not intend to update this document.

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Lincoln Financial

Credit Ratings

Ratings as of February 6, 2025

Standard

AM Best

Fitch

Moody's

& Poor's

Senior Debt Ratings

bbb+

BBB+

Baa2

BBB+

Financial Strength Ratings

The Lincoln National Life Insurance Company

A+

First Penn-Pacific Life Insurance Company

A+

A-

Lincoln Life & Annuity Company of New York

A+

Investor Inquiries May Be Directed To:

Tina Madon, Senior Vice President,

Investor Relations

Email: InvestorRelations@lfg.com

Phone: 800-237-2920

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

		For the Three Months Ended												For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Revenues
Insurance premiums	$	(1,086)	$	1,601	$	1,625	$	1,614	$	1,586	246.0	%	$	3,672	$	6,425	75.0	%
Fee income		1,361		1,324		1,339		1,352		1,387	1.9	%		5,467		5,402	-1.2	%
Net investment income		1,411		1,346		1,332		1,411		1,435	1.7	%		5,879		5,525	-6.0	%
Realized gain (loss)		(1,245)		(434)		663		(431)		470	137.8	%		(4,311)		269	106.2	%
Other revenues		259		279		194		165		185	-28.6	%		938		821	-12.5	%
Total revenues		700		4,116		5,153		4,111		5,063	NM			11,645		18,442	58.4	%

Expenses
Benefits		(497)		2,003		2,008		1,937		1,970	NM			6,138		7,918	29.0	%
Interest credited		824		822		853		880		888	7.8	%		3,248		3,443	6.0	%
Market risk benefit (gain) loss		568		(1,907)		(136)		657		(1,291)	NM			(2,264)		(2,677)	-18.2	%
Policyholder liability remeasurement (gain) loss		(84)		(12)		(105)		(50)		(23)	72.6	%		(152)		(190)	-25.0	%
Commissions and other expenses		1,421		1,601		1,351		1,304		1,336	-6.0	%		5,492		5,590	1.8	%
Interest and debt expense		81		81		86		86		83	2.5	%		331		336	1.5	%


Total expenses		2,313		2,588		4,057		4,814		2,963	28.1	%		12,793		14,420	12.7	%
Income (loss) before taxes		(1,613)		1,528		1,096		(703)		2,100	230.2	%		(1,148)		4,022	NM
Federal income tax expense (benefit)		(378)		306		201		(175)		414	209.5	%		(396)		747	288.6	%


Net income (loss)		(1,235)		1,222		895		(528)		1,686	236.5	%		(752)		3,275	NM
Preferred stock dividends declared		(11)		(34)		(11)		(34)		(11)	0.0%			(82)		(91)	-11.0	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		—		3		—		—		—	NM			(1)		3	NM
Net income (loss) available to common
stockholders – diluted	$	(1,246)	$	1,191	$	884	$	(562)	$	1,675	234.4	%	$	(835)	$	3,187	NM

Earnings (Loss) Per Common Share – Diluted


Net income (loss)	$	(7.35)	$	6.93	$	5.11	$	(3.29)	$	9.63	231.0	%	$	(4.92)	$	18.41	NM

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Lincoln Financial
Consolidated Balance Sheets
Unaudited (millions of dollars)

		As of

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	69,657	$	68,533	$	67,313	$	70,234	$	66,450	-4.6%
U.S. government bonds		393		391		389		398		391	-0.5%
State and municipal bonds		2,790		2,743		2,564		2,567		2,371	-15.0%
Foreign government bonds		283		263		260		252		237	-16.3%
Residential mortgage-backed securities		1,773		1,760		1,795		1,882		1,863	5.1%
Commercial mortgage-backed securities		1,424		1,484		1,542		1,643		1,665	16.9%
Asset-backed securities		12,171		12,349		13,072		13,444		13,880	14.0%
Hybrid and redeemable preferred securities		247		241		239		262		254	2.8%


Total fixed maturity AFS securities, net of allowance for credit losses		88,738		87,764		87,174		90,682		87,111	-1.8%
Trading securities		2,359		2,227		2,201		2,206		2,025	-14.2%
Equity securities		306		319		295		293		294	-3.9%
Mortgage loans on real estate, net of allowance for credit losses		18,963		19,266		20,152		20,856		21,083	11.2%

Policy loans		2,476		2,476		2,513		2,510		2,476	0.0%
Derivative investments		6,474		8,394		8,608		9,522		9,677	49.5%
Other investments		5,015		5,256		5,652		5,743		6,588	31.4%
Total investments		124,331		125,702		126,595		131,812		129,254	4.0%
Cash and invested cash		3,365		4,122		5,475		6,013		5,801	72.4%
Deferred acquisition costs, value of business acquired and deferred sales inducements		12,397		12,405		12,435		12,475		12,537	1.1%

Reinsurance recoverables, net of allowance for credit losses		29,843		29,461		29,126		29,233		28,750	-3.7%


Deposit assets, net of allowance for credit losses		29,247		29,355		30,330		30,938		30,776	5.2%
Market risk benefit assets		3,894		4,878		4,754		4,565		4,860	24.8%
Accrued investment income		1,082		1,127		1,135		1,160		1,108	2.4%
Goodwill		1,144		1,144		1,144		1,144		1,144	0.0%
Other assets		8,853		8,962		8,340		8,017		8,163	-7.8%
Separate account assets		158,257		166,225		165,199		171,483		168,438	6.4%
Total assets	$	372,413	$	383,381	$	384,533	$	396,840	$	390,831	4.9%

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Lincoln Financial
Consolidated Balance Sheets
Unaudited (millions of dollars)

		As of

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances	$	120,737	$	122,300	$	124,113	$	125,968	$	126,197	4.5	%
Future contract benefits		39,864		38,848		38,560		41,169		39,807	-0.1	%
Funds withheld reinsurance liabilities		17,641		17,486		17,044		17,595		16,907	-4.2	%
Market risk benefit liabilities		1,716		1,266		1,275		1,272		1,046	-39.0	%

Deferred front-end loads		5,901		6,099		6,306		6,517		6,730	14.0	%
Payables for collateral on investments		8,105		10,117		11,114		10,570		10,020	23.6	%
Short-term debt		250		503		450		300		300	20.0	%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 9 for details)		867		867		867		867		868	0.1	%
Financial		4,832		4,859		4,849		5,030		4,988	3.2	%




Other liabilities		7,350		7,265		6,807		7,056		7,261	-1.2	%






Separate account liabilities		158,257		166,225		165,199		171,483		168,438	6.4	%
Total liabilities		365,520		375,835		376,584		387,827		382,562	4.7	%

Stockholders’ Equity
Preferred stock		986		986		986		986		986	0.0%
Common stock		4,605		4,624		4,641		4,660		4,674	1.5	%
Retained earnings		4,778		5,887		6,691		6,049		7,645	60.0	%
Accumulated other comprehensive income (loss):
Unrealized investment gain (loss)		(4,813)		(4,940)		(5,253)		(3,565)		(5,601)	-16.4	%



Market risk benefit non-performance risk gain (loss)		1,070		606		409		781		146	-86.4	%
Policyholder liability discount rate remeasurement gain (loss)		587		703		795		422		744	26.7	%
Foreign currency translation adjustment		(26)		(27)		(27)		(18)		(29)	-11.5	%
Funded status of employee benefit plans		(294)		(293)		(293)		(302)		(296)	-0.7	%
Total accumulated other comprehensive income (loss)		(3,476)		(3,951)		(4,369)		(2,682)		(5,036)	-44.9	%
Total stockholders’ equity		6,893		7,546		7,949		9,013		8,269	20.0	%
Total liabilities and stockholders’ equity	$	372,413	$	383,381	$	384,533	$	396,840	$	390,831	4.9	%

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


		As of or For the Three Months Ended																As of or For the Twelve Months Ended

		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss)
Net income (loss)	$	(1,235)		$	1,222		$	895		$	(528)		$	1,686		236.5	%	$	(752)		$	3,275		NM
Pre-tax adjusted income (loss) from operations (1)		282			291			389			461			400		41.8	%		1,056			1,541		45.9	%
After-tax adjusted income (loss) from operations (1)(2)		263			244			335			392			343		30.4	%		990			1,315		32.8	%
Adjusted operating tax rate (1)		7.0	%		16.1	%		13.7	%		15.0	%		14.1	%				6.3	%		14.7	%
Adjusted income (loss) from operations available to
common stockholders (1)		252			210			324			358			332		31.7	%		908			1,224		34.8	%







ROE
Net income (loss) ROE		-97.9	%		67.7	%		46.2	%		-24.9	%		78.1	%				-13.8	%		40.8	%
Adjusted income (loss) from operations available to common

stockholders, excluding AOCI and preferred stock ROE (1)		10.0	%		8.4	%		11.9	%		13.0	%		11.5	%				9.1	%		11.3	%
Adjusted income (loss) from operations ROE (1)		9.2	%		7.6	%		11.4	%		12.1	%		10.9	%				8.3	%		10.5	%

Per Common Share
Net income (loss) (diluted)	$	(7.35)		$	6.93		$	5.11		$	(3.29)		$	9.63		231.0	%	$	(4.92)		$	18.41		NM
Adjusted income (loss) from operations (diluted) (1)(3)		1.47			1.22			1.87			2.06			1.91		29.9	%		5.32			7.07		32.9	%
Dividends declared during the period		0.45			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	$	34.81		$	38.46		$	40.78		$	46.97		$	42.60		22.4	%	$	34.81		$	42.60		22.4	%

Book value per share, excluding AOCI (4)		55.30			61.63			66.37			62.67			72.06		30.3	%		55.30			72.06		30.3	%
Adjusted book value per share (4)		64.97			65.01			68.51			70.04			72.34		11.3	%		64.97			72.34		11.3	%

Common Shares

End-of-period – basic		169.7			170.5			170.7			170.9			171.0		0.8	%		169.7			171.0		0.8	%
Average for the period – basic		169.7			170.0			170.6			170.8			170.9		0.7	%		169.6			170.6		0.6	%
End-of-period – diluted (1)		171.3			172.4			173.4			173.6			174.1		1.6	%		171.3			174.1		1.6	%
Average for the period – diluted (1)		171.1			171.8			172.9			173.6			174.0		1.7	%		170.7			173.1		1.4	%


(1) The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See page 1 for further information.
(2) See reconciliation to net income (loss) on page 26.
(3) See reconciliation to earnings (loss) per common share – diluted on page 28.
(4) See reconciliation to stockholders’ equity and book value per common share on page 29.

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

	As of or For the Three Months Ended																				For the Twelve Months Ended

		12/31/23			3/31/24				6/30/24				9/30/24				12/31/24		Change			12/31/23		12/31/24	Change



Cash Returned to Common Stockholders – Common Dividends	$	76		$	76			$	77			$	77			$	77		1.3	%	$	305	$	306	0.3	%

Cash Returned to Preferred Stockholders – Preferred Dividends	$	11		$	34			$	11			$	34			$	11		0.0%		$	82	$	91	11.0	%

Leverage Ratio
Short-term debt (1)	$	250			$	503			$	450			$	300		$	300		20.0	%
Long-term debt		5,699			5,726				5,716				5,897				5,856		2.8	%
Total debt (2)		5,949			6,229				6,166				6,197				6,156		3.5	%
Preferred stock		986			986				986				986				986		0.0%
Total debt and preferred stock		6,935			7,215				7,152				7,183				7,142		3.0	%







Less:
Operating debt (3)		867			867				867				867				868		0.1	%
Pre-funding of upcoming debt maturities		—			300				300				300				300		NM
25% of capital securities and subordinated notes		302			302				302				302				302		0.0%
50% of preferred stock		493			493				493				493				493		0.0%
Carrying value of fair value hedges and other items		154			133				123				153				111		-27.9	%
Total numerator	$	5,119		$	5,120			$	5,067			$	5,068			$	5,068		-1.0	%

Adjusted stockholders’ equity (4)	$	11,023		$	11,087			$	11,698			$	11,967			$	12,367		12.2	%


Add:
25% of capital securities and subordinated notes		302			302				302				302				302		0.0%
50% of preferred stock		493			493				493				493				493		0.0%
Total numerator		5,119			5,120				5,067				5,068				5,068		-1.0	%
Total denominator	$	16,937		$	17,002			$	17,560			$	17,830			$	18,230		7.6	%

Leverage ratio		30.2	%		30.1		%		28.9		%		28.4		%		27.8	%

Holding Company Available Liquidity (5)	$	458		$	766			$	763			$	759			$	763		66.6	%



(1) As of December 31, 2024, consists of $300 million principal amount of our 3.35% Senior Notes due March 9, 2025.
(2) Excludes obligations under finance leases and certain financing arrangements of $521 million that are reported in other liabilities on our Consolidated Balance Sheets.
(3) 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) See reconciliation to stockholders’ equity on page 29.





(5) Includes pre-funding of upcoming debt maturities.

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

	For the Three Months Ended													For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Annuities
Operating revenues	$	(525)	$	1,269	$	1,209	$	1,195	$	1,223	NM		$	3,002	$	4,896	63.1	%
Deposits		4,359		2,849		3,823		3,383		3,692	-15.3	%		12,820		13,748	7.2	%
Net flows		285		(1,993)		(954)		(1,637)		(1,891)	NM			(2,034)		(6,475)	NM



Average account balances, net of reinsurance		147,419		155,291		158,370		161,680		165,424	12.2	%		148,206		160,032	8.0	%
Alternative investment income (1)		4		2		1		4		4	0.0%			17		12	-29.4	%

Life Insurance
Operating revenues	$	1,667	$	1,541	$	1,511	$	1,589	$	1,608	-3.5	%	$	6,907	$	6,248	-9.5	%
Deposits		1,458		1,208		1,230		1,262		1,402	-3.8	%		5,385		5,102	-5.3	%
Net flows		1,013		741		751		738		930	-8.2	%		3,618		3,161	-12.6	%
Average account balances, net of reinsurance		45,608		42,280		43,230		44,055		44,746	-1.9	%		48,722		43,578	-10.6	%
Average in-force face amount		1,087,535		1,087,405		1,085,383		1,083,176		1,080,074	-0.7	%		1,082,549		1,084,010	0.1	%
Alternative investment income (1)		49		74		32		92		96	95.9	%		207		294	42.0	%

Group Protection
Operating revenues	$	1,387	$	1,425	$	1,441	$	1,432	$	1,418	2.2	%	$	5,563	$	5,717	2.8	%
Insurance premiums		1,250		1,285		1,298		1,288		1,274	1.9	%		5,014		5,145	2.6	%
Alternative investment income (1)		2		1		1		1		2	0.0%			9		5	-44.4	%

Retirement Plan Services
Operating revenues	$	322	$	322	$	327	$	335	$	337	4.7	%	$	1,310	$	1,321	0.8	%
Deposits		2,972		3,802		3,282		4,180		3,473	16.9	%		11,778		14,738	25.1	%
Net flows		(332)		391		(197)		651		(732)	NM			132		112	-15.2	%
Average account balances		96,045		103,240		106,374		110,550		113,711	18.4	%		94,520		108,259	14.5	%
Alternative investment income (1)		3		1		1		2		2	-33.3	%		10		6	-40.0	%

Consolidated
Adjusted operating revenues (2)	$	1,967	$	4,584	$	4,527	$	4,603	$	4,628	135.3	%	$	16,027	$	18,342	14.4	%
Deposits		8,789		7,859		8,335		8,825		8,567	-2.5	%		29,983		33,588	12.0	%
Net flows		959		(861)		(400)		(248)		(1,693)	NM			1,716		(3,202)	NM
Average account balances, net of reinsurance		289,072		300,811		307,974		316,285		323,881	12.0	%		291,448		311,869	7.0	%
Alternative investment income (1)		58		78		36		100		105	81.0	%		243		319	31.3	%


(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 27.

Tab le of Contents


Lincoln Financial
Sales By Segment
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Twelve Months Ended

		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Sales
Annuities:
RILA	$	986		$	942		$	1,096		$	1,203		$	1,285		30.3	%	$	4,325		$	4,526		4.6	%

Other variable without GLBs		362			388			420			472			601		66.0	%		1,317			1,882		42.9	%
Other variable with GLBs		579			546			634			691			1,243		114.7	%		2,048			3,114		52.1	%
Total variable		1,927			1,876			2,150			2,366			3,129		62.4	%		7,690			9,522		23.8	%
Fixed		2,438			971			1,667			1,009			560		-77.0	%		5,150			4,205		-18.3	%

Total Annuities	$	4,365		$	2,847		$	3,817		$	3,375		$	3,689		-15.5	%	$	12,840		$	13,727		6.9	%

Life Insurance:
IUL/UL	$	34		$	18		$	25		$	32		$	26		-23.5	%	$	119		$	100		-16.0	%
MoneyGuard®		27			24			34			35			35		29.6	%		98			128		30.6	%

VUL		38			23			19			22			21		-44.7	%		132			85		-35.6	%
Term		21			19			18			15			13		-38.1	%		100			66		-34.0	%

Executive Benefits		24			7			9			18			24		0.0%			93			59		-36.6	%
Total Life Insurance	$	144		$	91		$	105		$	122		$	119		-17.4	%	$	542		$	438		-19.2	%

Group Protection:
Life	$	167		$	85		$	81		$	42		$	184		10.2	%	$	333		$	392		17.7	%
Disability		204			51			74			36			253		24.0	%		311			414		33.1	%
Dental		27			8			6			6			30		11.1	%		49			50		2.0	%
Total Group Protection	$	398		$	144		$	161		$	84		$	467		17.3	%	$	693		$	856		23.5	%
Percent employee-paid		33.8	%		70.4	%		50.0	%		52.8	%		34.3	%				45.0	%		45.2	%

Retirement Plan Services:
First-year sales	$	874		$	1,127		$	821		$	1,652		$	1,273		45.7	%	$	2,893		$	4,873		68.4	%
Recurring deposits		2,098			2,675			2,461			2,528			2,200		4.9	%		8,885			9,865		11.0	%
Total Retirement Plan Services	$	2,972		$	3,802		$	3,282		$	4,180		$	3,473		16.9	%	$	11,778		$	14,738		25.1	%

Tab le of Contents


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

	For the Three Months Ended																		For the Twelve Months Ended

		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Operating Revenues
Annuities	$	(525)		$	1,269		$	1,209		$	1,195		$	1,223		NM		$	3,002		$	4,896		63.1	%
Life Insurance		1,667			1,541			1,511			1,589			1,608		-3.5	%		6,907			6,248		-9.5	%
Group Protection		1,387			1,425			1,441			1,432			1,418		2.2	%		5,563			5,717		2.8	%
Retirement Plan Services		322			322			327			335			337		4.7	%		1,310			1,321		0.8	%
Other Operations		(884)			27			39			52			42		104.8	%		(755)			160		121.2	%
Total adjusted operating revenues	$	1,967		$	4,584		$	4,527		$	4,603		$	4,628		135.3	%	$	16,027		$	18,342		14.4	%

General and Administrative Expenses,
Net of Amounts Capitalized
Annuities	$	131		$	134		$	112		$	103		$	112		-14.5	%	$	528		$	462		-12.5	%
Life Insurance		143			130			125			126			129		-9.8	%		551			510		-7.4	%
Group Protection		191			187			193			195			195		2.1	%		764			770		0.8	%
Retirement Plan Services		84			81			80			81			82		-2.4	%		325			324		-0.3	%
Other Operations (1)		79			57			64			67			70		-11.4	%		258			257		-0.4	%
Total (1)	$	628		$	589		$	574		$	572		$	588		-6.4	%	$	2,426		$	2,323		-4.2	%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		NM			10.6	%		9.3	%		8.6	%		9.2	%				17.6	%		9.4	%
Life Insurance		8.6	%		8.5	%		8.3	%		7.9	%		8.0	%				8.0	%		8.2	%
Group Protection		13.8	%		13.1	%		13.4	%		13.6	%		13.8	%				13.7	%		13.5	%
Retirement Plan Services		26.1	%		25.3	%		24.4	%		24.3	%		24.3	%				24.8	%		24.6	%

Total (1)		31.9	%		12.8	%		12.7	%		12.4	%		12.7	%				15.1	%		12.7	%


(1) The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See page 1 for further information.

Tab le of Contents


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

	For the Three Months Ended													For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses (1)	$	686	$	640	$	638	$	632	$	650	-5.2	%	$	2,644	$	2,561	-3.1	%
Commissions		651		639		561		546		575	-11.7	%		2,485		2,321	-6.6	%
Taxes, licenses and fees (1)		81		92		76		80		75	-7.4	%		342		323	-5.6	%
Interest and debt expense		81		81		86		86		83	2.5	%		331		336	1.5	%
Expenses associated with reserve financing
and letters of credit		29		30		28		32		36	24.1	%		114		125	9.6	%
Total adjusted operating commissions and
other expenses incurred (1)		1,528		1,482		1,389		1,376		1,419	-7.1	%		5,916		5,666	-4.2	%

Less Amounts Capitalized
General and administrative expenses		(58)		(51)		(64)		(60)		(62)	-6.9	%		(218)		(238)	-9.2	%
Commissions		(259)		(205)		(224)		(236)		(263)	-1.5	%		(964)		(927)	3.8	%
Taxes, licenses and fees		(8)		(9)		(7)		(8)		(7)	12.5	%		(33)		(31)	6.1	%
Total amounts capitalized		(325)		(265)		(295)		(304)		(332)	-2.2	%		(1,215)		(1,196)	1.6	%
Total expenses incurred, net of amounts
capitalized, excluding amortization (1)		1,203		1,217		1,094		1,072		1,087	-9.6	%		4,701		4,470	-4.9	%

Amortization
Amortization of DAC, VOBA and other intangibles (2)		271		271		274		299		302	11.4	%		1,077		1,146	6.4	%
Total operating commissions and
other expenses (1)(2)	$	1,474	$	1,488	$	1,368	$	1,371	$	1,389	-5.8	%	$	5,778	$	5,616	-2.8	%


(1) The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See page 1 for further information.
(2) Effective in the third quarter of 2024, we collapsed the amortization of deferred gain (loss) on business sold through reinsurance line item, reclassifying the deferred gain
amortization to other revenues and presenting the amortization of deferred loss within operating expenses. For prior periods, the amortization of deferred gain (loss)
on business sold through reinsurance is presented on a net basis within other revenues.

Tab le of Contents


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

																			As of or For the
	As of or For the Three Months Ended																		Twelve Months Ended

		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums (1)	$	(1,700)		$	26		$	34		$	38		$	29		101.7	%	$	(1,584)		$	127		108.0	%
Fee income (2)		552			580			587			601			612		10.9	%		2,196			2,381		8.4	%
Net investment income		425			420			435			442			462		8.7	%		1,734			1,759		1.4	%



Other revenues		198			243			153			114			120		-39.4	%		656			629		-4.1	%
Total operating revenues		(525)			1,269			1,209			1,195			1,223		NM			3,002			4,896		63.1	%
Operating expenses:
Benefits (1)		(1,683)			27			38			38			40		102.4	%		(1,506)			143		109.5	%
Interest credited		338			354			377			399			407		20.4	%		1,252			1,536		22.7	%
Policyholder liability remeasurement (gain) loss		(15)			—			2			—			—		100.0	%		2			2		0.0%

Commissions incurred		252			254			269			285			307		21.8	%		971			1,115		14.8	%
Other expenses incurred		265			309			180			136			157		-40.8	%		1,050			780		-25.7	%
Amounts capitalized		(110)			(98)			(115)			(129)			(155)		-40.9	%		(411)			(498)		-21.2	%
Amortization		107			106			107			107			108		0.9	%		431			430		-0.2	%
Total operating expenses		(846)			952			858			836			864		202.1	%		1,789			3,508		96.1	%
Income (loss) from operations before taxes		321			317			351			359			359		11.8	%		1,213			1,388		14.4	%
Federal income tax expense (benefit)		42			58			54			58			56		33.3	%		140			228		62.9	%
Income (loss) from operations	$	279		$	259		$	297		$	301		$	303		8.6	%	$	1,073		$	1,160		8.1	%




Effective Federal Income Tax Rate		12.9	%		18.5	%		15.4	%		16.3	%		15.7	%				11.5	%		16.4	%







Return on Average Account Balances, Net of
Reinsurance (bps)		76			67			75			74			73		(3)			72			72		—








Account Balances, Net of Reinsurance –
End-of-Period
RILA account balances	$	27,533		$	30,100		$	31,633		$	33,245		$	34,310		24.6	%	$	27,533		$	34,310		24.6	%
Other variable account balances without GLBs		45,499			47,657			47,321			48,899			48,193		5.9	%		45,499			48,193		5.9	%
Other variable account balances with GLBs		69,458			71,822			70,664			72,664			70,756		1.9	%		69,458			70,756		1.9	%
Fixed account balances		10,336			10,214			10,251			10,349			10,352		0.2	%		10,336			10,352		0.2	%
Total account balances	$	152,826		$	159,793		$	159,869		$	165,157		$	163,611		7.1	%	$	152,826		$	163,611		7.1	%
Percent variable account balances with GLBs		45.4	%		44.9	%		44.2	%		44.0	%		43.2	%				45.4	%		43.2	%

Fee Income, Gross of Hedge Allowance	$	752		$	780		$	787		$	802		$	811		7.8	%	$	3,005		$	3,180		5.8	%
Net Investment Income, Net of Reinsurance (3)		385			390			403			412			438		13.8	%		1,568			1,643		4.8	%
Interest Credited, Net of Reinsurance (3)		255			245			254			270			282		10.6	%		996			1,050		5.4	%

(1) Day one impacts related to the fourth quarter 2023 reinsurance transaction contributed to line item volatility in the fourth quarter.

(2) Fee income is reported net of the hedge allowance, which represents fees allocated to net annuity product features to support the cost of hedging.


(3) Net investment income and interest credited are both reported gross of reinsurance. Reinsurance impacts are settled through other revenues.

Tab le of Contents


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

																		As of or For the
	As of or For the Three Months Ended																	Twelve Months Ended

		12/31/23			3/31/24			6/30/24			9/30/24		12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	295		$	288		$	293		$	286	$	283		-4.1	%	$	1,162		$	1,149		-1.1	%
Fee income		741			672			677			672		694		-6.3	%		3,010			2,715		-9.8	%
Net investment income		629			581			533			597		593		-5.7	%		2,712			2,303		-15.1	%
Operating realized gain (loss)		(2)			(2)			(2)			(2)		(2)		0.0%			(6)			(6)		0.0%


Other revenues (1)		4			2			10			36		40		NM			29			87		200.0	%
Total operating revenues		1,667			1,541			1,511			1,589		1,608		-3.5	%		6,907			6,248		-9.5	%
Operating expenses:
Benefits		1,083			928			948			895		961		-11.3	%		4,436			3,730		-15.9	%
Interest credited		312			294			299			302		300		-3.8	%		1,290			1,194		-7.4	%
Policyholder liability remeasurement (gain) loss		(37)			59			16			42		45		221.6	%		147			163		10.9	%
Commissions incurred		150			113			113			120		115		-23.3	%		571			461		-19.3	%
Other expenses incurred		223			204			193			198		198		-11.2	%		869			794		-8.6	%
Amounts capitalized		(175)			(133)			(133)			(140)		(137)		21.7	%		(671)			(543)		19.1	%
Amortization of DAC and VOBA		125			126			126			127		128		2.4	%		496			507		2.2	%
Amortization of deferred loss on business
sold through reinsurance (1)		—			—			—			24		24		NM			—			47		NM
Total operating expenses		1,681			1,591			1,562			1,568		1,634		-2.8	%		7,138			6,353		-11.0	%
Income (loss) from operations before taxes		(14)			(50)			(51)			21		(26)		-85.7	%		(231)			(105)		54.5	%
Federal income tax expense (benefit)		(8)			(15)			(16)			(1)		(11)		-37.5	%		(72)			(42)		41.7	%
Income (loss) from operations	$	(6)		$	(35)		$	(35)		$	22	$	(15)		NM		$	(159)		$	(63)		60.4	%

Effective Federal Income Tax Rate		59.7	%		29.7	%		31.2	%		NM		41.2	%				31.1	%		40.0	%





Average Account Balances, Net of Reinsurance	$	45,608		$	42,280		$	43,230		$	44,055	$	44,746		-1.9	%	$	48,722		$	43,578		-10.6	%

In-Force Face Amount
UL and other	$	365,938		$	365,507		$	365,030		$	364,766	$	363,950		-0.5	%	$	365,938		$	363,950		-0.5	%
Term insurance		722,620			720,745			719,485			717,071		714,362		-1.1	%		722,620			714,362		-1.1	%
Total in-force face amount	$	1,088,558		$	1,086,252		$	1,084,515		$	1,081,837	$	1,078,312		-0.9	%	$	1,088,558		$	1,078,312		-0.9	%


(1) Effective in the third quarter of 2024, we collapsed the amortization of deferred gain (loss) on business sold through reinsurance line item, reclassifying the deferred gain
amortization to other revenues and presenting the amortization of deferred loss within operating expenses. For prior periods, the amortization of deferred gain (loss)
on business sold through reinsurance is presented on a net basis within other revenues.

Tab le of Contents


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

																		As of or For the
	As of or For the Three Months Ended																	Twelve Months Ended

		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,250		$	1,285		$	1,298		$	1,288		$	1,274		1.9	%	$	5,014		$	5,145		2.6	%
Net investment income		85			85			88			87			87		2.4	%		339			348		2.7	%
Other revenues		52			55			55			57			57		9.6	%		210			224		6.7	%
Total operating revenues		1,387			1,425			1,441			1,432			1,418		2.2	%		5,563			5,717		2.8	%
Operating expenses:
Benefits		984			1,030			1,032			1,007			970		-1.4	%		4,020			4,039		0.5	%
Interest credited		1			1			1			1			3		200.0	%		5			6		20.0	%
Policyholder liability remeasurement (gain) loss		(28)			(67)			(124)			(88)			(68)		NM			(288)			(347)		-20.5	%
Commissions incurred		119			109			113			114			125		5.0	%		446			462		3.6	%
Other expenses incurred		246			246			260			255			249		1.2	%		982			1,011		3.0	%
Amounts capitalized		(34)			(29)			(42)			(30)			(34)		0.0%			(113)			(135)		-19.5	%
Amortization		34			34			36			36			37		8.8	%		132			143		8.3	%
Total operating expenses		1,322			1,324			1,276			1,295			1,282		-3.0	%		5,184			5,179		-0.1	%
Income (loss) from operations before taxes		65			101			165			137			136		109.2	%		379			538		42.0	%
Federal income tax expense (benefit)		13			21			35			28			29		123.1	%		80			113		41.3	%
Income (loss) from operations	$	52		$	80		$	130		$	109		$	107		105.8	%	$	299		$	425		42.1	%

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

Operating Margin (1)		4.1	%		6.2	%		10.0	%		8.4	%		8.4	%				6.0	%		8.3	%





Loss Ratios by Product Line
Life		67.2	%		76.1	%		75.6	%		68.1	%		64.7	%				74.0	%		71.1	%
Disability		83.1	%		74.2	%		65.9	%		73.2	%		75.0	%				74.8	%		72.1	%
Dental		75.4	%		76.5	%		78.9	%		79.0	%		73.3	%				76.1	%		77.0	%
Total		76.6	%		75.0	%		70.1	%		71.4	%		71.0	%				74.5	%		71.9	%

(1) Operating margin is calculated by dividing income (loss) from operations by insurance premiums.

Tab le of Contents


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

																		As of or For the
	As of or For the Three Months Ended																	Twelve Months Ended

		12/31/23			3/31/24			6/30/24			9/30/24			12/31/24		Change			12/31/23			12/31/24		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	67		$	70		$	72		$	74		$	76		13.4	%	$	262		$	292		11.5	%
Net investment income		248			244			247			253			253		2.0	%		1,012			997		-1.5	%
Other revenues		7			8			8			8			8		14.3	%		36			32		-11.1	%
Total operating revenues		322			322			327			335			337		4.7	%		1,310			1,321		0.8	%
Operating expenses:
Interest credited		164			166			168			170			172		4.9	%		665			675		1.5	%


Commissions incurred		22			23			26			28			27		22.7	%		87			103		18.4	%
Other expenses incurred		93			92			87			88			90		-3.2	%		360			359		-0.3	%
Amounts capitalized		(6)			(5)			(5)			(5)			(6)		0.0%			(21)			(21)		0.0%
Amortization		5			5			5			5			5		0.0%			18			19		5.6	%
Total operating expenses		278			281			281			286			288		3.6	%		1,109			1,135		2.3	%
Income (loss) from operations before taxes		44			41			46			49			49		11.4	%		201			186		-7.5	%
Federal income tax expense (benefit)		6			5			6			5			6		0.0%			30			23		-23.3	%
Income (loss) from operations	$	38		$	36		$	40		$	44		$	43		13.2	%	$	171		$	163		-4.7	%

Effective Federal Income Tax Rate		13.2	%		12.9	%		13.2	%		10.0	%		13.5	%				14.7	%		12.4	%





Return on Average Account Balances (bps)		16			14			15			16			15		(1)			18			15		(3)



Net Flows by Market
Small Market	$	115		$	(32)		$	43		$	11		$	(34)		NM		$	382		$	(11)		NM
Mid - Large Market		78			847			206			1,069			(178)		NM			1,279			1,944		52.0	%
Multi-Fund® and Other		(525)			(424)			(446)			(429)			(520)		1.0	%		(1,529)			(1,821)		-19.1	%

Net Flows – Trailing Twelve Months	$	132		$	(12)		$	(410)		$	513		$	112		-15.2	%	$	132		$	112		-15.2	%

Base Spreads, Excluding Variable
Investment Income (1)		1.09	%		1.02	%		1.03	%		1.05	%		1.01	%	(8)			1.13	%		1.03	%	(10)



(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums.

Tab le of Contents


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


		For the Three Months Ended											For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23 (1)		12/31/24	Change
Other Operations
Operating revenues:
Insurance premiums (2)	$	(930)	$	2	$	1	$	1	$	—	100.0	%	$	(921)	$	4	100.4	%
Net investment income		37		16		27		34		33	-10.8	%		148		110	-25.7	%


Other revenues		9		9		11		17		9	0.0%			18		46	155.6	%
Total operating revenues		(884)		27		39		52		42	104.8	%		(755)		160	121.2	%
Operating expenses:
Benefits (2)		(918)		6		4		(3)		2	100.2	%		(863)		12	101.4	%
Interest credited		9		9		8		8		7	-22.2	%		36		32	-11.1	%
Policyholder liability remeasurement (gain) loss		—		(1)		1		—		—	NM			(3)		—	100.0	%
Other expenses incurred		77		51		62		66		68	-11.7	%		250		246	-1.6	%
Interest and debt expense		81		81		86		86		83	2.5	%		331		336	1.5	%

Total operating expenses		(751)		146		161		157		160	121.3	%		(249)		626	NM
Income (loss) from operations before taxes		(133)		(119)		(122)		(105)		(118)	11.3	%		(506)		(466)	7.9	%
Federal income tax expense (benefit)		(33)		(23)		(25)		(21)		(23)	30.3	%		(112)		(96)	14.3	%
Income (loss) from operations	$	(100)	$	(96)	$	(97)	$	(84)	$	(95)	5.0	%	$	(394)	$	(370)	6.1	%


(1) The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See page 1 for further information.
(2) Day one impacts related to the fourth quarter 2023 reinsurance transaction contributed to line item volatility in the fourth quarter.

Tab le of Contents


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

	For the Three Months Ended												For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	12,341	$	12,397	$	12,405	$	12,435	$	12,475	1.1	%	$	12,235	$	12,397	1.3	%



Business acquired (sold) through reinsurance		(11)		—		—		—		—	100.0	%		(11)		—	100.0	%
Deferrals		333		274		299		309		334	0.3	%		1,232		1,216	-1.3	%
Operating amortization		(266)		(266)		(269)		(269)		(272)	-2.3	%		(1,059)		(1,076)	-1.6	%






Balance as of end-of-period	$	12,397	$	12,405	$	12,435	$	12,475	$	12,537	1.1	%	$	12,397	$	12,537	1.1	%

DFEL
Balance as of beginning-of-period	$	5,695	$	5,901	$	6,099	$	6,306	$	6,517	14.4	%	$	5,091	$	5,901	15.9	%



Deferrals		281		272		284		289		295	5.0	%		1,098		1,140	3.8	%
Operating amortization		(75)		(74)		(77)		(78)		(82)	-9.3	%		(288)		(311)	-8.0	%




Balance as of end-of-period	$	5,901	$	6,099	$	6,306	$	6,517	$	6,730	14.0	%	$	5,901	$	6,730	14.0	%

DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,132	$	4,981	$	4,842	$	4,707	$	4,588	-10.6	%	$	5,132	$	4,588	-10.6	%

Tab le of Contents


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

	For the Three Months Ended												For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Traditional Variable Annuities
Balance as of beginning-of-period	$	106,957	$	114,963	$	119,485	$	117,990	$	121,568	13.7	%	$	107,627	$	114,963	6.8	%
Gross deposits		941		934		1,054		1,163		1,844	96.0	%		3,365		4,996	48.5	%
Full surrenders and deaths		(1,714)		(2,142)		(2,303)		(2,382)		(2,185)	-27.5	%		(6,343)		(9,013)	-42.1	%
Other contract benefits		(1,147)		(1,133)		(1,130)		(1,172)		(1,503)	-31.0	%		(4,102)		(4,937)	-20.4	%
Net flows		(1,920)		(2,341)		(2,379)		(2,391)		(1,844)	4.0	%		(7,080)		(8,954)	-26.5	%
Policyholder assessments		(624)		(644)		(650)		(666)		(666)	-6.7	%		(2,504)		(2,627)	-4.9	%
Change in market value and reinvestment		10,550		7,507		1,534		6,635		(104)	NM			16,920		15,572	-8.0	%

Balance as of end-of-period, gross		114,963		119,485		117,990		121,568		118,954	3.5	%		114,963		118,954	3.5	%
Account balances reinsured		(6)		(6)		(5)		(5)		(5)	16.7	%		(6)		(5)	16.7	%
Balance as of end-of-period, net	$	114,957	$	119,479	$	117,985	$	121,563	$	118,949	3.5	%	$	114,957	$	118,949	3.5	%

RILA
Balance as of beginning-of-period	$	25,006	$	27,533	$	30,100	$	31,633	$	33,245	32.9	%	$	20,130	$	27,533	36.8	%
Gross deposits		986		942		1,096		1,203		1,285	30.3	%		4,325		4,526	4.6	%
Full surrenders and deaths		(103)		(115)		(138)		(326)		(671)	NM			(351)		(1,250)	NM
Other contract benefits		(45)		(42)		(14)		(18)		(120)	NM			(123)		(195)	-58.5	%
Net flows		838		785		944		859		494	-41.1	%		3,851		3,081	-20.0	%
Policyholder assessments		(3)		(3)		(3)		(3)		(4)	-33.3	%		(8)		(13)	-62.5	%

Change in market value and reinvestment		213		247		288		325		375	76.1	%		690		1,235	79.0	%
Change in fair value of embedded derivative instruments and other		1,479		1,538		304		431		200	-86.5	%		2,870		2,474	-13.8	%
Balance as of end-of-period, gross	$	27,533	$	30,100	$	31,633	$	33,245	$	34,310	24.6	%	$	27,533	$	34,310	24.6	%

Tab le of Contents


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

	For the Three Months Ended												For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Fixed Annuities
Balance as of beginning-of-period	$	23,681	$	25,355	$	25,162	$	25,837	$	26,359	11.3	%	$	23,365	$	25,355	8.5	%
Gross deposits		2,432		973		1,673		1,017		563	-76.9	%		5,130		4,226	-17.6	%
Full surrenders and deaths		(878)		(1,213)		(1,020)		(949)		(873)	0.6	%		(3,252)		(4,055)	-24.7	%
Other contract benefits		(187)		(197)		(172)		(173)		(231)	-23.5	%		(683)		(773)	-13.2	%
Net flows		1,367		(437)		481		(105)		(541)	NM			1,195		(602)	NM
Policyholder assessments		(15)		(17)		(14)		(14)		(16)	-6.7	%		(56)		(61)	-8.9	%
Reinvested interest credited		172		183		199		211		209	21.5	%		649		802	23.6	%
Change in fair value of embedded derivative instruments
and other		150		78		9		430		(48)	NM			202		469	132.2	%
Balance as of end-of-period, gross		25,355		25,162		25,837		26,359		25,963	2.4	%		25,355		25,963	2.4	%
Account balances reinsured		(15,019)		(14,948)		(15,586)		(16,010)		(15,611)	-3.9	%		(15,019)		(15,611)	-3.9	%
Balance as of end-of-period, net	$	10,336	$	10,214	$	10,251	$	10,349	$	10,352	0.2	%	$	10,336	$	10,352	0.2	%

Total
Balance as of beginning-of-period	$	155,644	$	167,851	$	174,747	$	175,460	$	181,172	16.4	%	$	151,122	$	167,851	11.1	%
Gross deposits		4,359		2,849		3,823		3,383		3,692	-15.3	%		12,820		13,748	7.2	%
Full surrenders and deaths		(2,695)		(3,470)		(3,461)		(3,657)		(3,729)	-38.4	%		(9,946)		(14,318)	-44.0	%
Other contract benefits		(1,379)		(1,372)		(1,316)		(1,363)		(1,854)	-34.4	%		(4,908)		(5,905)	-20.3	%
Net flows		285		(1,993)		(954)		(1,637)		(1,891)	NM			(2,034)		(6,475)	NM
Policyholder assessments		(642)		(664)		(667)		(683)		(686)	-6.9	%		(2,568)		(2,701)	-5.2	%
Change in market value, reinvestment and interest credited		10,935		7,937		2,021		7,171		480	-95.6	%		18,259		17,609	-3.6	%
Change in fair value of embedded derivative instruments
and other		1,629		1,616		313		861		152	-90.7	%		3,072		2,943	-4.2	%
Balance as of end-of-period, gross		167,851		174,747		175,460		181,172		179,227	6.8	%		167,851		179,227	6.8	%
Account balances reinsured		(15,025)		(14,954)		(15,591)		(16,015)		(15,616)	-3.9	%		(15,025)		(15,616)	-3.9	%
Balance as of end-of-period, net	$	152,826	$	159,793	$	159,869	$	165,157	$	163,611	7.1	%	$	152,826	$	163,611	7.1	%

Tab le of Contents


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

	For the Three Months Ended													For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24		Change
General Account
Balance as of beginning-of-period	$	37,217	$	37,180	$	37,006	$	36,848	$	36,692	-1.4	%	$	37,694	$	37,180		-1.4	%
Gross deposits		1,006		850		893		899		977	-2.9	%		3,755		3,619		-3.6	%
Withdrawals and deaths		(359)		(364)		(389)		(369)		(342)	4.7	%		(1,454)		(1,464)		-0.7	%
Net flows		647		486		504		530		635	-1.9	%		2,301		2,155		-6.3	%
Transfers between general and separate accounts		7		38		74		30		53	NM			97		196		102.1	%
Policyholder assessments		(1,140)		(1,124)		(1,130)		(1,129)		(1,137)	0.3	%		(4,512)		(4,522)		-0.2	%
Reinvested interest credited		366		365		368		375		365	-0.3	%		1,479		1,474		-0.3	%
Change in fair value of embedded derivative instruments
and other		83		61		26		38		(9)	NM			121		116		-4.1	%
Balance as of end-of-period, gross		37,180		37,006		36,848		36,692		36,599	-1.6	%		37,180		36,599		-1.6	%
Account balances reinsured		(15,777)		(15,607)		(15,467)		(15,301)		(15,147)	4.0	%		(15,777)		(15,147)		4.0	%
Balance as of end-of-period, net	$	21,403	$	21,399	$	21,381	$	21,391	$	21,452	0.2	%	$	21,403	$	21,452		0.2	%

Separate Account
Balance as of beginning-of-period	$	22,642	$	25,150	$	27,007	$	27,381	$	28,921	27.7	%		20,920		$	25,150	20.2	%
Gross deposits		452		358		337		363		425	-6.0	%		1,630		1,483		-9.0	%
Withdrawals and deaths		(86)		(103)		(90)		(155)		(130)	-51.2	%		(313)		(477)		-52.4	%
Net flows		366		255		247		208		295	-19.4	%		1,317		1,006		-23.6	%
Transfers between general and separate accounts		(7)		(37)		(76)		(30)		(53)	NM			(96)		(196)		NM
Policyholder assessments		(250)		(246)		(247)		(248)		(253)	-1.2	%		(964)		(995)		-3.2	%
Change in market value and reinvestment		2,399		1,885		450		1,610		(69)	NM			3,973		3,876		-2.4	%
Balance as of end-of-period, gross		25,150		27,007		27,381		28,921		28,841	14.7	%		25,150		28,841		14.7	%
Account balances reinsured		(5,062)		(5,338)		(5,371)		(5,593)		(5,521)	-9.1	%		(5,062)		(5,521)		-9.1	%
Balance as of end-of-period, net	$	20,088	$	21,669	$	22,010	$	23,328	$	23,320	16.1	%	$	20,088	$	23,320		16.1	%

Total
Balance as of beginning-of-period	$	59,859	$	62,330	$	64,013	$	64,229	$	65,613	9.6	%	$	58,614	$	62,330		6.3	%
Gross deposits		1,458		1,208		1,230		1,262		1,402	-3.8	%		5,385		5,102		-5.3	%
Withdrawals and deaths		(445)		(467)		(479)		(524)		(472)	-6.1	%		(1,767)		(1,941)		-9.8	%
Net flows		1,013		741		751		738		930	-8.2	%		3,618		3,161		-12.6	%
Transfers between general and separate accounts		—		1		(2)		—		—	0.0%			1		—		-100.0	%
Policyholder assessments		(1,390)		(1,370)		(1,377)		(1,377)		(1,390)	0.0%			(5,476)		(5,517)		-0.7	%
Change in market value and reinvestment		2,765		2,250		818		1,985		296	-89.3	%		5,452		5,350		-1.9	%
Change in fair value of embedded derivative instruments
and other		83		61		26		38		(9)	NM			121		116		-4.1	%
Balance as of end-of-period, gross		62,330		64,013		64,229		65,613		65,440	5.0	%		62,330		65,440		5.0	%
Account balances reinsured		(20,839)		(20,945)		(20,838)		(20,894)		(20,668)	0.8	%		(20,839)		(20,668)		0.8	%
Balance as of end-of-period, net	$	41,491	$	43,068	$	43,391	$	44,719	$	44,772	7.9	%	$	41,491	$	44,772		7.9	%

Tab le of Contents


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

	For the Three Months Ended												For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
General Account
Balance as of beginning-of-period	$	24,099	$	23,784	$	23,586	$	23,598	$	23,727	-1.5	%	$	25,138	$	23,784	-5.4	%
Gross deposits		750		790		846		944		826	10.1	%		2,776		3,407	22.7	%
Withdrawals		(1,233)		(1,203)		(1,072)		(1,095)		(1,125)	8.8	%		(4,494)		(4,495)	0.0%
Net flows		(483)		(413)		(226)		(151)		(299)	38.1	%		(1,718)		(1,088)	36.7	%
Transfers between fixed and variable accounts		2		50		69		110		22	NM			(295)		251	185.1	%
Policyholder assessments		(3)		(3)		(3)		(4)		(4)	-33.3	%		(14)		(14)	0.0%
Reinvested interest credited		169		168		172		174		173	2.4	%		673		686	1.9	%
Balance as of end-of-period	$	23,784	$	23,586	$	23,598	$	23,727	$	23,619	-0.7	%	$	23,784	$	23,619	-0.7	%

Separate Account and Mutual Funds
Balance as of beginning-of-period	$	69,834	$	77,201	$	83,226	$	84,274	$	90,069	29.0	%	$	63,592	$	77,201	21.4	%
Gross deposits		2,222		3,012		2,436		3,236		2,647	19.1	%		9,002		11,331	25.9	%
Withdrawals		(2,071)		(2,208)		(2,407)		(2,434)		(3,080)	-48.7	%		(7,152)		(10,131)	-41.7	%
Net flows		151		804		29		802		(433)	NM			1,850		1,200	-35.1	%
Transfers between fixed and variable accounts		(10)		(34)		(69)		(106)		(19)	-90.0	%		295		(227)	NM
Policyholder assessments		(62)		(64)		(66)		(70)		(72)	-16.1	%		(239)		(274)	-14.6	%
Change in market value and reinvestment		7,288		5,319		1,154		5,169		(583)	NM			11,703		11,062	-5.5	%
Balance as of end-of-period	$	77,201	$	83,226	$	84,274	$	90,069	$	88,962	15.2	%	$	77,201	$	88,962	15.2	%

Total
Balance as of beginning-of-period	$	93,933	$	100,985	$	106,812	$	107,872	$	113,796	21.1	%	$	88,730	$	100,985	13.8	%
Gross deposits		2,972		3,802		3,282		4,180		3,473	16.9	%		11,778		14,738	25.1	%
Withdrawals		(3,304)		(3,411)		(3,479)		(3,529)		(4,205)	-27.3	%		(11,646)		(14,626)	-25.6	%
Net flows		(332)		391		(197)		651		(732)	NM			132		112	-15.2	%
Transfers between fixed and variable accounts		(8)		16		—		4		3	137.5	%		—		24	NM
Policyholder assessments		(65)		(67)		(69)		(74)		(76)	-16.9	%		(253)		(288)	-13.8	%
Change in market value and reinvestment		7,457		5,487		1,326		5,343		(410)	NM			12,376		11,748	-5.1	%
Balance as of end-of-period	$	100,985	$	106,812	$	107,872	$	113,796	$	112,581	11.5	%	$	100,985	$	112,581	11.5	%

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

	As of 12/31/23				As of 12/31/24
		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			$	13,510		15.2	%	$	12,728	14.6	%
Basic industry				2,986		3.3	%		2,840	3.3	%
Capital goods				5,568		6.2	%		5,490	6.3	%
Communications				3,110		3.5	%		2,798	3.2	%
Consumer cyclical				5,268		5.8	%		5,408	6.2	%
Consumer non-cyclical				13,458		15.1	%		12,485	14.4	%
Energy				2,776		3.1	%		2,472	2.8	%
Technology				4,376		4.9	%		3,882	4.5	%
Transportation				3,233		3.6	%		3,124	3.6	%
Industrial other				2,107		2.4	%		2,183	2.5	%
Utilities				11,613		13.0	%		11,194	12.9	%
Government-related entities				1,278		1.4	%		1,170	1.3	%
Residential mortgage-backed securities ("RMBS")
Agency backed				1,505		1.7	%		1,608	1.8	%
Non-agency backed				332		0.4	%		328	0.4	%
Commercial mortgage-backed securities ("CMBS")				1,546		1.7	%		1,724	2.0	%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")				8,325		9.3	%		8,189	9.4	%
Other ABS				4,220		4.7	%		5,864	6.7	%
Municipals				2,973		3.3	%		2,647	3.0	%
United States and foreign government				730		1.1	%		711	0.8	%


Hybrid & redeemable preferred securities				237		0.3	%		235	0.3	%
Total fixed maturity AFS securities, net of modified coinsurance and funds withheld
investments and allowance for credit losses, at amortized cost				89,151		100.0	%		87,080	100.0	%
Trading Securities, Net of Modified Coinsurance and Funds Withheld Investments				626					511
Equity Securities, Net of Modified Coinsurance and Funds Withheld Investments				275					264
Total fixed maturity AFS, trading and equity securities, net of modified coinsurance and funds
withheld investments and allowance for credit losses, at amortized cost				90,052					87,855
Modified coinsurance and funds withheld investments				10,215					11,992
Total fixed maturity AFS, trading and equity securities			$	100,267				$	99,847


(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 24 and page 25 as we have a limited economic interest in the assets.

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

	As of 12/31/23				As of 12/31/24
		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)			$	51,738		58.0	%	$	51,922	59.6	%
NAIC 2 (BBB)				34,475		38.7	%		32,198	37.0	%
Total investment grade				86,213		96.7	%		84,120	96.6	%

NAIC 3 (BB)				1,090		1.2	%		907	1.1	%
NAIC 4 (B)				1,760		2.0	%		1,857	2.1	%
NAIC 5 (CCC and lower)				86		0.1	%		109	0.1	%
NAIC 6 (in or near default)				2		0.0	%		87	0.1	%
Total below investment grade				2,938		3.3	%		2,960	3.4	%
Total			$	89,151		100.0	%	$	87,080	100.0	%

Commercial Mortgage Loans, Net of Modified Coinsurance and Funds Withheld Investments,
at Amortized Cost (1)(2)
CM1 (AAA-A)			$	13,687		80.4	%	$	13,450	77.2	%
CM2 (BBB)				3,248		19.1	%		3,873	22.2	%
CM3-7 (BB and lower) (3)				84		0.5	%		99	0.6	%
Total			$	17,019		100.0	%	$	17,422	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			$	65,425		61.6	%	$	65,372	62.6	%
BBB				37,723		35.5	%		36,071	34.5	%
BB and lower				3,022		2.9	%		3,059	2.9	%
Total			$	106,170		100.0	%	$	104,502	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.
(3) Includes mortgage fund limited partnerships classified as CM3 that are included in "Other Investments" on the Consolidated Balance Sheets.

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

	For the Three Months Ended												For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23 (1)		12/31/24	Change
Net Income
Net income (loss) available to common stockholders – diluted	$	(1,246)	$	1,191	$	884	$	(562)	$	1,675	234	%	$	(835)	$	3,187	NM
Less:
Preferred stock dividends declared		(11)		(34)		(11)		(34)		(11)	0.0%			(82)		(91)	-11	%
Adjustment for deferred units of LNC stock
in our deferred compensation plans		—		3		—		—		—	NM			(1)		3	NM
Net income (loss)		(1,235)		1,222		895		(528)		1,686	237	%		(752)		3,275	NM
Less:
Net annuity product features, pre-tax		(1,008)		1,450		252		(381)		1,187	218	%		68		2,508	NM
Net life insurance product features, pre-tax		(225)		(130)		4		(125)		46	120	%		(393)		(207)	47	%
Credit loss-related adjustments, pre-tax		(27)		(1)		(34)		(88)		(28)	-4	%		(80)		(152)	-90	%
Investment gains (losses), pre-tax (2)		167		(81)		(230)		(105)		(67)	NM			(959)		(483)	50	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, pre-tax (3)		(776)		194		201		(446)		587	176	%		(802)		535	167	%





Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses, pre-tax (4)		—		—		584		(2)		—	NM			—		582	NM
Other items, pre-tax (5)(6)(7)(8)		(32)		(186)		(33)		(19)		(32)	0.0%			(55)		(270)	NM

Income tax benefit (expense) related to the above pre-tax items		403		(268)		(184)		246		(350)	NM			479		(553)	NM
Total adjustments		(1,498)		978		560		(920)		1,343	190	%		(1,742)		1,960	213	%
Adjusted income (loss) from operations		263		244		335		392		343	30	%		990		1,315	33	%
Add:
Preferred stock dividends declared		(11)		(34)		(11)		(34)		(11)	0.0%			(82)		(91)	-11	%
Adjusted income (loss) from operations available
to common stockholders	$	252	$	210	$	324	$	358	$	332	32	%	$	908	$	1,224	35	%


(1)			The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See page 1 for further information.
(2)			Includes intent to sell impairments during the second and third quarters of 2023 of certain fixed maturity AFS securities in an unrealized loss position, resulting from the
			Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction.
(3)			Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
(4)			Relates to the sale of our wealth management business, which provided approximately $650 million of statutory capital benefit.

(continued on following page)

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Lincoln Financial

Select GAAP to Non-GAAP Reconciliations

Unaudited (millions of dollars, except per share data)

(continued from the previous page)


(5)			For the third quarter of 2023, includes certain legal accruals of $(12) million; for the first quarter of 2024, includes certain legal accruals of $(114) million primarily related to the
			settlement of cost of insurance litigation; for the fourth quarter of 2024, includes certain legal accruals of $(15) million and regulatory accruals of $(12) million related to estimated
			state guaranty fund assessments net of estimated state premium tax recoveries.
(6)			Includes severance expense related to initiatives to realign the workforce of $(3) million, $(3) million, $(49) million, $(7) million, $(16) million, and $(2) million in the first quarter of 2023,
			second quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively.
(7)			Includes transaction and integration costs related to mergers, acquisitions and divestitures of $(9) million, $(1) million, $(26) million, $(10) million, $(27) million, $(2) million,
			and $(1) million in the second quarter of 2023, third quarter of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024,
			and fourth quarter of 2024, respectively.
(8)			Includes deferred compensation mark-to-market adjustment of $12 million, $(8) million, $1 million, $(6) million, $(13) million, $1 million, $(1) million, and $(2) million in the first quarter
			of 2023, second quarter of 2023, third quarter of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively.


	For the Three Months Ended													For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Revenues
Total revenues	$	700	$	4,116	$	5,153	$	4,111	$	5,063	NM		$	11,645	$	18,442	58.4	%
Less:
Revenue adjustments from annuity
and life insurance product features		(631)		(580)		105		149		(57)	91.0	%		(2,541)		(382)	85.0	%
Credit loss-related adjustments		(27)		(1)		(34)		(88)		(28)	-3.7	%		(80)		(152)	-90.0	%
Investment gains (losses) (1)		167		(81)		(230)		(105)		(67)	NM			(959)		(483)	49.6	%
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans (2)		(776)		194		201		(446)		587	175.6	%		(802)		535	166.7	%
Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses (3)		—		—		584		(2)		—	NM			—		582	NM



Adjusted operating revenues	$	1,967	$	4,584	$	4,527	$	4,603	$	4,628	135.3	%	$	16,027	$	18,342	14.4	%


(1) Includes intent to sell impairments during the second and third quarters of 2023 of certain fixed maturity AFS securities in an unrealized loss position, resulting from the
Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction.
(2) Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
(3) Relates to the sale of our wealth management business, which provided approximately $650 million of statutory capital benefit.

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Lincoln Financial
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)

	For the Three Months Ended													For the Twelve Months Ended

Earnings (Loss) Per Common Share – Diluted		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23 (1)		12/31/24	Change
Net income (loss)	$	(7.35)	$	6.93	$	5.11	$	(3.29)	$	9.63	231.0	%	$	(4.92)	$	18.41	NM
Less:
Net annuity product features, pre-tax		(5.96)		8.43		1.46		(2.23)		6.83	214.6	%		0.38		14.49	NM
Net life insurance product features, pre-tax		(1.33)		(0.75)		0.02		(0.73)		0.27	120.3	%		(2.32)		(1.18)	49.1	%
Credit loss-related adjustments, pre-tax		(0.15)		—		(0.20)		(0.53)		(0.16)	-6.7	%		(0.47)		(0.88)	-87.2	%
Investment gains (losses), pre-tax		0.98		(0.47)		(1.33)		(0.61)		(0.38)	NM			(5.65)		(2.78)	50.8	%


Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, pre-tax		(4.57)		1.13		1.16		(2.61)		3.37	173.7	%		(4.72)		3.09	165.5	%



Gains (losses) on other non-financial assets – sale of
subsidiaries/businesses, pre-tax		—		—		3.38		(0.01)		—	NM			—		3.36	NM
Other items, pre-tax (2)(3)(4)(5)		(0.18)		(1.08)		(0.19)		(0.11)		(0.19)	-5.6	%		(0.32)		(1.57)	NM
Income tax benefit (expense) related
to the above pre-tax items		2.37		(1.55)		(1.06)		1.44		(2.02)	NM			2.83		(3.19)	NM
Adjustment attributable to using different average
diluted shares for adjusted income (loss) from
operations as compared to net income (loss) (6)		0.02		—		—		0.04		—	-100.0	%		0.03		—	-100.0	%


Adjusted income (loss) from operations	$	1.47	$	1.22	$	1.87	$	2.06	$	1.91	29.9	%	$	5.32	$	7.07	32.9	%


(1)			The twelve month period ended December 31, 2023 has been recast to conform to the current period presentation. See page 1 for further information.
(2)			For the third quarter of 2023, includes certain legal accruals of $(0.08); for the first quarter of 2024, includes certain legal accruals of $(0.65) primarily related to the
			settlement of cost of insurance litigation; for the fourth quarter of 2024, includes certain legal accruals of $(0.09) and regulatory accruals of $(0.07) related to
			estimated state guaranty fund assessments net of estimated state premium tax recoveries in the fourth quarter of 2024.
(3)			Includes severance expense related to initiatives to realign the workforce of $(0.02), $(0.02), $(0.29), $(0.04), $(0.09), and $(0.01) in the first quarter of 2023, second quarter
			of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively.
(4)			Includes transaction and integration costs related to mergers, acquisitions and divestitures of $(0.05), $(0.14), $(0.06), $(0.15), $(0.01), and $(0.01) in the second quarter
			of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively.
(5)			Includes deferred compensation mark-to-market adjustment of $0.07, $(0.05), $0.01, $(0.04), $(0.08), $(0.01), and $(0.01) in the first quarter of 2023, second quarter of 2023,
			third quarter of 2023, fourth quarter of 2023, first quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively.
(6)			In periods where 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. 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.

Tab le of Contents


Lincoln Financial
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)

	For the Three Months Ended													For the Twelve Months Ended

		12/31/23		3/31/24		6/30/24		9/30/24		12/31/24	Change			12/31/23		12/31/24	Change
Stockholders’ Equity, End-of-Period
Stockholders' equity	$	6,893	$	7,546	$	7,949	$	9,013	$	8,269	20.0	%	$	6,893	$	8,269	20.0	%
Less:
Preferred stock		986		986		986		986		986	0.0%			986		986	0.0%
AOCI		(3,476)		(3,951)		(4,369)		(2,682)		(5,036)	-44.9	%		(3,476)		(5,036)	-44.9	%
Stockholders’ equity, excluding AOCI and preferred stock		9,383		10,511		11,332		10,709		12,319	31.3	%		9,383		12,319	31.3	%
MRB-related impacts		1,083		2,575		2,673		2,147		3,165	192.2	%		1,083		3,165	192.2	%
GLB and GDB hedge instruments gains (losses)		(2,085)		(2,675)		(2,770)		(2,763)		(3,062)	-46.9	%		(2,085)		(3,062)	-46.9	%
Reinsurance-related embedded derivatives and portfolio gains (losses)		(638)		(476)		(269)		(642)		(151)	76.3	%		(638)		(151)	76.3	%
Adjusted stockholders' equity	$	11,023	$	11,087	$	11,698	$	11,967	$	12,367	12.2	%	$	11,023	$	12,367	12.2	%

Stockholders’ Equity, Average
Stockholders' equity	$	5,046	$	7,219	$	7,747	$	8,481	$	8,641	71.2	%	$	5,437	$	8,022	47.5	%
Less:
Preferred stock		986		986		986		986		986	0.0%			986		986	0.0%
AOCI		(5,979)		(3,714)		(4,160)		(3,526)		(3,860)	35.4	%		(5,563)		(3,815)	31.4	%
Stockholders’ equity, excluding AOCI and preferred stock		10,039		9,947		10,921		11,021		11,515	14.7	%		10,014		10,851	8.4	%
MRB-related impacts		1,314		1,829		2,624		2,410		2,656	102.1	%		257		2,380	NM
GLB and GDB hedge instruments gains (losses)		(1,857)		(2,380)		(2,723)		(2,767)		(2,913)	-56.9	%		(1,155)		(2,695)	NM
Reinsurance-related embedded derivatives and portfolio gains (losses)		(318)		(557)		(372)		(455)		(396)	-24.5	%		(80)		(445)	NM
Adjusted average stockholders' equity	$	10,900	$	11,055	$	11,392	$	11,833	$	12,168	11.6	%	$	10,992	$	11,611	5.6	%

Book Value Per Common Share
Book value per share	$	34.81	$	38.46	$	40.78	$	46.97	$	42.60	22.4	%	$	34.81	$	42.60	22.4	%
Less:
AOCI		(20.49)		(23.17)		(25.59)		(15.70)		(29.46)	-43.8	%		(20.49)		(29.46)	-43.8	%
Book value per share, excluding AOCI		55.30		61.63		66.37		62.67		72.06	30.3	%		55.30		72.06	30.3	%
Less:
MRB-related gains (losses)		6.38		15.10		15.66		12.56		18.51	190.1	%		6.38		18.51	190.1	%
GLB and GDB hedge instruments gains (losses)		(12.29)		(15.69)		(16.22)		(16.17)		(17.91)	-45.7	%		(12.29)		(17.91)	-45.7	%
Reinsurance-related embedded derivatives and portfolio gains (losses)		(3.76)		(2.79)		(1.58)		(3.76)		(0.88)	76.6	%		(3.76)		(0.88)	76.6	%
Adjusted book value per share	$	64.97	$	65.01	$	68.51	$	70.04	$	72.34	11.3	%	$	64.97	$	72.34	11.3	%

Earnings Supplement Fourth Quarter 2024 February 6, 2025

2 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; our affiliate reinsurance arrangements; and restrictions on the payment of revenue sharing and 12b-1 distribution fees; • Changes in tax law or the interpretation of or application of existing tax laws that could impact our tax costs and the products that we sell; • 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 or failure of the telecommunication, information technology or other operational systems of the company or the third parties on whom we rely or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches in security of such 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; • 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 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.

3 Outlook

4 Our Outlook 2024 2026 Outlook Longer-Term Outlook Operating Income Earnings Mix1 RBC % (Total Capital/Risk-Based Capital) >430% 420%+ 420%+ Leverage Ratio2 27.8% 25 – 26.5% ~25% Free Cash Flow (FCF) Conversion3 39% 45 – 60% 65 – 75% Annuities 70% Group 25% Retirement 10% Life NM% Annuities 55-65% Group 20-30% Retirement 5-15% Life 10-15% Annuities 45-55% Group 25-35% Retirement 5-15% Life 10-15% For illustrative purposes only/excludes Other Operations. Excludes the following 2024 impacts: Annuities: $(19)M balance sheet true-up in preparation for the close of the sale of the wealth management business, $(12)M tax-related items, $1M assumption review. Group Protection: $(1)M assumption review. Life Insurance: $(1) related to Dividend Received Deduction true-up, $8M assumption review. Other Ops: Excess tax true-up impact of $(3)M. 2 See Non-GAAP Financial Measures Appendix for definition and reconciliation. 3 Represents the ratio of free cash flow to adjusted operating income available to common stockholders not including the impacts of significant items. See Non-GAAP Financial Measures Appendix for definitions and reconciliations.

5 2024 Full-Year Summary

6 1 The RBC ratio is calculated as of December 31 annually, but is reported in the March statutory reporting, and as such, the ratio presented is considered an estimate based on information known at the time of reporting. 2 Represents Adjusted Operating Income Available to Common Stockholders, excluding significant Items. See Non-GAAP Financial Measures Appendix for definition and reconciliations. 3 See Non-GAAP Financial Measures Appendix for definition and reconciliation. 4 Excludes the following impacts: 3Q23 $24M assumption review and 3Q24 $(1)M assumption review. 5 Excludes the following impacts: 2023: $11 related to Dividend Received Deduction true-up $(12)M assumption review, model refinement of $14M. Annuities 2024: $(19)M balance sheet true-up in preparation for the close of the sale of the wealth management business, $(12)M tax-related items, $1M assumption review. 2024 Scorecard 27.8% 240bp YOY reduction in leverage ratio3 8.3% ~280bp improvement in Group Protection full-year operating margin4 $312B 7% YOY growth in average account balances, net of reinsurance $1.3B2 +18% increase in adjusted operating income YOY2 >430%1 RBC Ratio, >30 bps above target $13.7B Full-year Annuities sales, highest since 2019 supported by a diversified product mix Build Foundational Capital • Sustained RBC above 420% buffer for three consecutive quarters. • Sold wealth management business, generating ~$650 million net statutory capital benefit. • Repaid $100 million in debt and pre-funded $300 million 2025 debt maturity. Optimize Operating Model • Established LPINE, a Bermuda-based affiliated reinsurer, and executed in-force transactions. • Reduced operating costs and increased organizational efficiency while targeting investments to drive future profitable growth. • Ongoing optimization of our investment strategy through enhanced strategic asset allocation. Drive Profitable Growth • Group Protection delivered its highest ever operating income, sales, and operating margin in FY 2024. • Annuities FY operating income grew by 12% YOY5 and Retirement Plan Services delivered stable earnings. • The Life Insurance business made significant progress, evolving its product focus and distribution approach to support future profitable growth.

7 1 Excludes the following 2023 and 2024 impacts: Annuities 2023: $11 related to Dividend Received Deduction true-up $(12)M assumption review, model refinement of $14M. Annuities 2024: $(19)M balance sheet true-up in preparation for the close of the sale of the wealth management business, $(12)M tax-related items, $1M assumption review. Group Protection 2023: $24M assumption review. Group Protection 2024: $(1)M assumption review. Life Insurance 2023: $(156)M assumption review $(25)M unclaimed property, $(15)M surrender benefit program. Life Insurance 2024: $(1) related to Dividend Received Deduction true-up, $8M assumption review. Annuities Group Protection Operating Income1 Primary Drivers Operating Income1 Primary Drivers Retirement Plan Services Life Insurance Operating Income Primary Drivers Operating Income1 Primary Drivers Full Year 2024 Earnings Drivers $ in millions • Fee income on higher account balances • Spread expansion driven by higher interest rates • Elevated variable annuity outflow rates • Lower net G&A expenses • Higher fee income • Spread compression driven primarily by stable value outflows • Lower net G&A expenses • ~$100M run-rate impact from Fortitude Re transaction • Unfavorable mortality driven by elevated severity experienced in the second-half of the year • Favorable incidence rates in disability results • Favorable underwriting trends in life results • Lower net G&A expense ratio

8 2024 Fourth Quarter Results

9 Strong earnings growth, driven by strategic initiatives to enhance profitability • Adjusted operating income, excluding significant items1, increased 39% YOY, reflecting accelerated momentum and broad-based execution. • Group Protection earnings more than doubled YOY to a new 4Q record; margin was 8.3%, up 430 bps YOY. • Annuities and Retirement Plan Services (RPS) generated YOY earnings growth of 14%2 and 13%, respectively. Successful execution of market segment and product mix strategies is accelerating sales • Group Protection generated record sales with growth across all product lines. • Annuities 4Q sales rounded out a strong year in which full-year sales reached the highest level since 2019, supported by a diversified product mix. • RPS total deposits increased 17% YOY as first-year sales grew 46%, and Life Insurance sales were essentially unchanged sequentially as we continued to focus on growth in products with more risk sharing. Year-end RBC ratio4 highest in 4 years, creating flexibility to continue investing in growth • Ended 2024 with estimated RBC ratio of >430% as capital position continued to strengthen. • Leverage ratio5 declined 240 bps YOY to 27.8%, driven by continued organic equity growth. • Expense discipline and operational efficiencies further enhanced operating leverage. After- tax Per share Adjusted Operating Income, ex. normalizing items $324M $1.86 Normalizing items Alternative investment income compared to our 10% long-term return target $8M $0.05 Total items impact $8M $0.05 Adjusted Operating Income3 $332M $1.91 4Q24 Key Messages 1 Represents Adjusted Operating Income Available to Common Stockholders, excluding significant items. See Non-GAAP Financial Measures Appendix for definition and reconciliations. 2 Excludes the impact of the 4Q23 $14M model refinement. 3 Represents Adjusted Operating Income Available to Common Stockholders. See Non-GAAP Financial Measures Appendix for definition and reconciliation. 4 The RBC ratio is calculated as of December 31 annually, but is reported in the March statutory reporting, and as such, the ratio presented is considered an estimate based on information known at the time of reporting. 5 See Non-GAAP Financial Measures Appendix for definition and reconciliations.

10 Key Highlights Adjusted Income from Operations, Excluding Significant Items1 ($M) Average Account Balances, Net of Reinsurance ($B) • Adjusted income from operations, excluding significant items1, increased 39% YOY, reflecting strong execution on strategic initiatives. • Average account balances, net of reinsurance, grew 12% YOY, further supporting profitable growth. • Leverage ratio improved 240bps YOY; estimated RBC ratio in excess of 430%. Key Priorities Risk-Based Capital2 Leverage Ratio3 • Maintain foundational capital required to ensure enterprise stability across market cycles and support investment for growth. • Advance a scalable framework, managing enterprise resources to maximize cost efficiency, general account optimization, and capital allocation. • Shift towards businesses and products with more stable cash flows, focusing on maximizing risk- adjusted returns while decreasing sensitivity to equity markets. 4Q24 Metrics $238 $245 $324 $350 407% 400-410% >420% >420% $332 >430% 1 Represents Adjusted Operating Income Available to Common Stockholders, excluding significant Items. See Non-GAAP Financial Measures Appendix for definition and reconciliations. 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 3/31/2024, 6/30/2024, 9/30/2024 and 12/31/2024 are considered estimates based on information known at the time of reporting. 3 See Non-GAAP Financial Measures Appendix for definition and reconciliations.

11 Key Highlights Operating Income1 ($M) Sales ($B) • Operating income1 increased 14% YOY, reflecting account balance growth and increased spread income. • Ending account balances were 7% higher YOY, supporting profitable growth in the quarter. • 2024 quarterly sales trend reflects a diversified product mix that positions us to meet a range of customer preferences. Key Priorities Ending Account Balances ($B) Return on Average Account Balances1 • Grow our addressable market by extending reach to spread-based products. • Increase market competitiveness through development of new product features. • Optimize general account to support spread expansion. Annuities 1 Excludes the following impacts: 4Q23: $14M model refinement; 1Q24: $(19)M balance sheet true-up in preparation for the close of the sale of the wealth management business and $(12)M tax-related items; 3Q24 $1M assumption review. 13% 8% 23% 56% 19% 14% 33% 34% 16% 11% 29% 44% 20% 14% 36% 30% 45% 30% 18% 7% 43% 30% 21% 6% 15% 35% 16% 34% 45% 30% 19% 6% 44% 30% 20% 6% 44% 30% 20% 6%

12 Key Highlights Operating Income1 ($M) Sales ($M) • Operating income doubled YOY and margin increased 430 bps, driven by favorable long-term disability results, improved mortality, and strong operational execution. • Premiums grew 2% YOY, reflecting continued discipline in prioritizing profitable growth. • Sales achieved a 4Q record and increased 17% YOY, with growth across all product categories. Key Priorities Premiums & Margin1,2 ($M) Loss Ratios1,2 • Diversify across market segments with an emphasis on growing local markets. • Expand and deepen product portfolio with a focus on growth in supplemental health. • Continued pricing discipline focused on profitable growth while investing in capabilities to improve the customer experience. Group Protection 1 Excludes $(1)M in 3Q24 related to annual assumption review. 2 Excludes the impact of the $23M experience refund timing in 2Q24. 3 Life loss ratio includes supplemental health. 40% 51% 9% 33% 32% 35% 20% 34% 46% 31% 9% 43% 37% 54% $52 $80 $130 $110 $107 3 $84 26%

13 Key Highlights Operating Income ($M) First-year Sales ($B) • Operating income increased 13% YOY, reflecting higher account balances and lower net G&A expenses. • First-year sales grew nearly 50% YOY as our differentiated service model and product innovation continued to resonate in the market. • Ending account balances were 11% higher YOY, resulting from favorable market conditions. Key Priorities Ending Account Balances ($B) Net G&A Expenses ($M) • Growth in core recordkeeping and institutional market segments through our differentiated service model. • Expand access to retirement solutions by leveraging distribution relationships and product innovation. • Increase operational and expense efficiencies to drive down our cost per participant and improve profitability. Retirement Plan Services 23% 21% 56% 48% 18% 34% 23% 28% 49% 62% 11% 27% 76% 24% 78% 78% 79% 22% 22% 21% $101 $107 $108 $114 20% 35% 45% 79% 21% $113 $1.7 $1.3

14 Key Highlights Operating Income (Loss)1 ($M) Sales ($M) • Q4 operating loss was due to unfavorable mortality, primarily driven by higher-than-expected severity. • Total sales were essentially unchanged sequentially as we remained focused on growing our presence in products with more risk sharing. • Net G&A expenses declined 10% YOY resulting from targeted actions to resize the expense base. Key Priorities Net Death Benefits ($M) Net G&A Expenses ($M) • Optimize product portfolio to support pivot toward products with more stable cash flows and higher risk-adjusted returns. • Continue efforts to reduce expense base to drive cost efficiency and earnings growth. • Maintain focus on optimizing the legacy in force and increase earnings. Life Insurance $(6) $(34) $(35) $14 $(15) 83% 17% 8% 9% 15% 20% 80% 85%91% 92% $144 $91 $105 $122 $119 1 Excludes the following impacts: 1Q24 $(1) related to Dividend Received Deduction true-up, and 3Q24: $8M related to annual assumption review.

15 1 Excludes the following impact; 1Q24: Excess tax true-up impact of $(3)M. 2 2Q24 and 3Q24 excludes the impact of expenses related to Other Operations associated with the sale of the wealth management business. These expenses are directly offset in Other Revenues. Other Operations Key Highlights Operating Loss1 and Preferred Dividend ($M) Interest Expense ($M) • Operating loss1 was $95 million, a 5% YOY improvement. • Spark G&A expenses declined by 79% YOY, reflecting the planned reduction of program expenses. • Non-Spark G&A expenses YoY increase primarily driven by project spend and operational investments. Key Priorities Non-Spark G&A Expenses2 ($M) Spark Initiative Expenses ($M) • Reduce leverage ratio through continued growth in capital and opportunistic deleveraging. • Continued focus on operational efficiency, including the conclusion of Spark Initiative-related projects in 2025.

16 Key Highlights Investment Portfolio ($B) Portfolio Quality • Portfolio1 remained well-diversified with 97% investment grade securities. • Achieved an average +1.4% new money yield pick- up in 2024; +50 bps YOY driven by our investment strategy optimization. • Alternatives portfolio delivered a 2.8% quarterly return, or 11.2% annualized return, above our long-term expectation. Key Priorities New Money Alternative Investment Income ($M), Pre-Tax • Optimize new money strategies by leveraging the sourcing capabilities of our multi-manager platform. • New money strategy focused on maintaining diversification and high quality while capitalizing on less liquid assets and structured asset class premiums. • Achieve attractive risk-adjusted alternative returns. Investment Portfolio $113 $115 $119 $118 1 See Note on slide 19. 2 Mortgage Loans include CMLs and RMLs. 3 Other includes cash, COLI, common and preferred stock, municipals, sovereign government and UST/agency. 4 Defined as the yield on the 7-year US Treasury note plus the Barclay’s Public Corp Industrial Spreads Weighted 50% A and 50% BBB. $119 2 3 41% 40% 38% 38% 38% 17%18%18%18%18% 14% 14% 14% 14% 15% 18%18%17%17%17% 3% 3% 3% 3% 3% 9%9%10%8%7% 6.4% 6.1% 6.9% 6.4% 6.2% 4 New money yield

17 Appendix

18 First Quarter Second Quarter Third Quarter Fourth Quarter Annuities 90 fee days 91 fee days 92 fee days 92 fee days Group Protection Seasonally higher loss ratio Seasonally lower loss ratio Seasonally higher loss ratio Retirement Plan Services1 Biannual crediting rate Biannual crediting rate Life Insurance Unfavorable mortality Favorable mortality Favorable mortality Preferred Dividend $34M $11M $34M $11M Seasonality of Operating Income (Contribution % to Total Year) 15-20% 25-30% 25%-30% 25%-30% 1 1/1/25 and 7/1/25 crediting rate reset impact is unknown and will be based on prevailing interest rates and market dynamics. 2025 Expected Seasonality

19 Investment Portfolio High quality and well-diversified portfolio1 The portfolio remains well-positioned • Long-term investment strategy is tightly aligned with our liability profile and positioned for various economic cycles. • 97% investment grade, the portfolio quality has increased, providing flexibility to further add incremental yield. • Well positioned to further optimize the portfolio asset allocation given high-quality asset mix and shift towards shorter duration liabilities. Portfolio allocation by asset class 1 Data on slide is as of December 31, 2024. 2 Other asset classes primarily include quasi-sovereign, cash/collateral, and UST/agency. Note: All information regarding LNC’s investment portfolio in this earnings supplement excludes assets related to certain modified coinsurance and coinsurance with funds withheld transactions. The modified coinsurance and funds withheld reinsurance agreements investment portfolio has 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. $119B Average A Rated

20 Commercial mortgage loan portfolio Conservatively positioned CML portfolio1 Overall CML exposure • Disciplined portfolio construction delivering consistent loan performance. • Robust surveillance process (e.g. loan level financial review, rent roll analysis, stress testing, etc.). • Manageable near-term portfolio maturities in 2025 (3%), 2026 (6%) and 2027 (8%). – $15M2 average loan size across 2025- 2027 maturities. Office exposure • CML office loans 3% of total invested assets and well diversified by geography. • Limited maturities and conservatively positioned with average office loan size of $12 million2. – Maturities 2025-2026 = ~2% of our CML portfolio • 2025: $159 million with WA DSC 3.0x. • 2025: $195 million with WA DSC 1.9x. $17.4B Property types 1 Data on slide is as of December 31, 2024. 2 Excludes loans managed by non-LFG third-party managers and fully amortizing loans. 3 Includes CMLs in LP funds. 4 Lincoln Underwritten LTV is an internal estimate that considers the most recent financial reporting of each property and conservative cap rate assumptions. Portfolio LTV & DSC • Loan-to-values remain strong. • Strong debt service coverage reflecting recent property-level performance. • Diversified by property type, borrower, and geography. Portfolio Statistics Total CMLs Office Invested Asset % 15% 3% Avg Loan Size 2 $12M $17M Fixed Rate 100% 100% Remaining Term 8 Years 8 Years Debt Service Coverage 2.4x 2.3x Occupancy 93% 84% Credit Quality3 CM1 77% 81% CM2 22% 18% CM3-7 <1% <1% Property Type Book Value ($B) Debt Service Coverage Loan to Value (3rd Party Appraisal at Funding) Lincoln Underwritten Loan to Value4 Apartment $5.6 3.0x 44% 43% Industrial $5.10 2.2x 46% 50% Office $3.00 2.3x 44% 65% Retail $2.6 2.0x 46% 45% Other3 $0.9 2.4x 41% 43% Mixed Use $0.2 2.0x 47% 49% Portfolio $17.40 2.4x 45% 49%

21 Non-GAAP Financial Measures Appendix

22 Non-GAAP Financial Measures 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 24. In the third quarter of 2024, we revised our definition of adjusted income (loss) from operations to exclude the impact of certain additional items that are not indicative of the ongoing operations of the business and may obscure trends in the underlying performance of the Company. The twelve month period ended December 31, 2023, has been recast for such third quarter 2024 revisions to conform to the current period presentation. Adjusted income (loss) from operations Adjusted income (loss) from operations is GAAP net income excluding the 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, accounting policy changes and new regulations, including changes in tax law; • Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; • Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; • Income (loss) from discontinued operations. • Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; 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; mark-to-market adjustment related to the LNC stock component of our deferred compensation plans (“deferred compensation mark-to-market adjustment”); gain (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and • Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances. Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends.

23 Non-GAAP Financial Measures, Cont’d Adjusted stockholders’ equity Adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts, GLB and GDB hedge instruments gains (losses) and the difference between amounts recognized in net income (loss) on reinsurance-related embedded derivatives and the underlying asset portfolios (“reinsurance-related embedded derivatives and portfolio gains (losses)”). 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. 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. Free Cash Flow Free cash flow is holding company net cash provided by (used in) operating activities less preferred stock dividends and capital contributions to subsidiaries, plus the net change in excess statutory capital in our life insurance subsidiaries, after meeting targeted levels of statutory capital and holding company obligations, excluding the impact of certain strategic transactions and certain other one-time items.

24 Reconciliation of Net Income Available to Common Stockholders to Adjusted Income from Operations Available to Common Stockholders Unaudited (millions of dollars, except per share data) For the Three Months Ended For the Twelve Months Ended 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 12/31/23 (1) 12/31/24 Net Income Net income (loss) available to common stockholders – diluted $ (1,246) $ 1,191 $ 884 $ (562) $ 1,675 $ (835) $ 3,187 Less: Preferred stock dividends declared (11) (34) (11) (34) (11) (82) (91) Adjustment for deferred units of LNC stock in our deferred compensation plans — 3 — — — (1) 3 Net income (loss) (1,235) 1,222 895 (528) 1,686 (752) 3,275 Less: Net annuity product features, pre-tax (1,008) 1,450 252 (381) 1,187 68 2,508 Net life insurance product features, pre-tax (225) (130) 4 (125) 46 (393) (207) Credit loss-related adjustments, pre-tax (27) (1) (34) (88) (28) (80) (152) Investment gains (losses), pre-tax (2) 167 (81) (230) (105) (67) (959) (483) Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, pre-tax (3) (776) 194 201 (446) 587 (802) 535 Gains (losses) on other non-financial assets – sale of subsidiaries/businesses, pre-tax (4) — — 584 (2) — — 582 Other items, pre-tax (5)(6)(7)(8) (32) (186) (33) (19) (32) (55) (270) Income tax benefit (expense) related to the above pre-tax items 403 (268) (184) 246 (350) 479 (553) Total adjustments (1,498) 978 560 (920) 1,343 (1,742) 1,960 Adjusted income (loss) from operations 263 244 335 392 343 990 1,315 Add: Preferred stock dividends declared (11) (34) (11) (34) (11) (82) (91) Adjusted income (loss) from operations available to common stockholders $ 252 $ 210 $ 324 $ 358 $ 332 $ 908 $ 1,224 Earnings (Loss) Per Common Share – Diluted Net income (loss) 9.63 Adjusted income (loss) from operations (diluted) 1.91 Refer to following slide 25 for footnotes to table.

25 Reconciliation of Net Income Available to Common Stockholders to Adjusted Income from Operations Available to Common Stockholders (continued from previous slide) Unaudited (millions of dollars) (1) The twelve month period ended December 31, 2023, has been recast to conform to the current period presentation. See slide 22 for further information. (2) Includes intent to sell impairments during the second and third quarters of 2023 of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction. (3) Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. (4) Relates to the sale of our wealth management business, which provided approximately $650 million of statutory capital benefit. (5) For the third quarter of 2023, includes certain legal accruals of $(12) million; for the first quarter of 2024, includes certain legal accruals of $(114) million primarily related to the settlement of cost of insurance litigation; for the fourth quarter of 2024, includes certain legal accruals of $(15) million and regulatory accruals of $(12) million related to estimated state guaranty fund assessments net of estimated state premium tax recoveries. (6) Includes severance expense related to initiatives to realign the workforce of $(3) million, $(3) million, $(49) million, $(7) million, $(16) million, and $(2) million in the first quarter of 2023, second quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively. (7) Includes transaction and integration costs related to mergers, acquisitions and divestitures of $(9) million, $(1) million, $(26) million, $(10) million, $(27) million, $(2) million, and $(1) million in the second quarter of 2023, third quarter of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively. (8) Includes deferred compensation mark-to-market adjustment of $12 million, $(8) million, $1 million, $(6) million, $(13) million, $1 million, $(1) million, and $(2) million in the first quarter of 2023, second quarter of 2023, third quarter of 2023, fourth quarter of 2023, first quarter of 2024, second quarter of 2024, third quarter of 2024, and fourth quarter of 2024, respectively.

26 Reconciliation of Adjusted Income from Operations Available to Common Stockholders to Adjusted Income from Operations Available to Common Stockholders, excluding Significant Items Unaudited (millions of dollars) For the Three Months Ended For the Twelve Months Ended 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 12/31/23 12/31/24 Adjusted income from operations available to common stockholders1 $252 $210 $324 $358 $332 $908 $1,224 Significant items: Tax-related items2 -- 16 -- -- -- (11) 16 Assumption review -- -- -- (8) — 144 (8) Model refinement (14) -- -- -- -- (14) -- Unclaimed property -- -- -- -- -- 22 -- Surrender benefit program -- -- -- -- -- 15 -- Balance sheet true-up related to the sale of the wealth management business -- 19 -- -- -- 19 Total significant items (14) 35 -- (8) -- 156 27 Adjusted income from operations available to common stockholders, excluding significant items $238 $245 $324 $350 $332 $1,064 $1,251 1 See reconciliation to Net Income Available to Common Stockholders on slide 24. 2 For the quarter ended 3/31/2024, primarily reflects a Dividend Received Deduction true-up, partially offset by an Uncertain Tax Position release.

27 Leverage Ratio Unaudited (millions of dollars) As of or For the Three Months Ended 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 Leverage Ratio Short-term debt (1) $ 250 $ 503 $ 450 $ 300 $ 300 Long-term debt 5,699 5,726 5,716 5,897 5,856 Total debt (2) 5,949 6,229 6,166 6,197 6,156 Preferred stock 986 986 986 986 986 Total debt and preferred stock 6,935 7,215 7,152 7,183 7,142 Less: Operating debt (3) 867 867 867 867 868 Pre-funding of upcoming debt maturities — 300 300 300 300 25% of capital securities and subordinated notes 302 302 302 302 302 50% of preferred stock 493 493 493 493 493 Carrying value of fair value hedges and other items 154 133 123 153 111 Total numerator $ 5,119 $ 5,120 $ 5,067 $ 5,068 $ 5,068 Adjusted stockholders’ equity (4) $ 11,023 $ 11,087 $ 11,698 $ 11,967 $ 12,367 Add: 25% of capital securities and subordinated notes 302 302 302 302 302 50% of preferred stock 493 493 493 493 493 Total numerator 5,119 5,120 5,067 5,068 5,068 Total denominator $ 16,937 $ 17,002 $ 17,560 $ 17,830 $ 18,230 Leverage ratio 30.2 % 30.1 % 28.9 % 28.4 % 27.8 % (1) As of December 31, 2024, consists of $300 million principal amount of our 3.35% Senior Notes due March 9, 2025. (2) Excludes obligations under finance leases and certain financing arrangements of $521 million that are reported in other liabilities on our Consolidated Balance Sheets. (3) 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) See reconciliation to stockholders’ equity on slide 28.

28 Reconciliation of Stockholders’ Equity to Adjusted Stockholders’ Equity Unaudited (millions of dollars) As of or For the Three Months Ended 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 Stockholders’ Equity, End-of-Period Stockholders' equity $ 6,893 $ 7,546 $ 7,949 $ 9,013 $ 8,269 Less: Preferred stock 986 986 986 986 986 AOCI (3,476) (3,951) (4,369) (2,682) (5,036) Stockholders’ equity, excluding AOCI and preferred stock 9,383 10,511 11,332 10,709 12,319 MRB-related impacts 1,083 2,575 2,673 2,147 3,165 GLB and GDB hedge instruments gains (losses) (2,085) (2,675) (2,770) (2,763) (3,062) Reinsurance-related embedded derivatives and portfolio gains (losses) (638) (476) (269) (642) (151) Adjusted stockholders' equity $ 11,023 $ 11,087 $ 11,698 $ 11,967 $ 12,367

29 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 12/31/2024 Holding company net cash provided by operating activities $ 176 Adjustments: Preferred stock dividends (91) Capital contributions to subsidiaries (27) Adjusted holding company net cash provided by operating activities 58 Add: Excess statutory capital retained by our life insurance subsidiaries (1) 434 Total free cash flow (numerator) $ 492 Adjusted income (loss) from operations available to common stockholders (2) 1,224 Less: Significant items (3) (27) Adjusted income (loss) from operations available to common stockholders, excluding significant items (denominator) $ 1,251 Free cash flow conversion ratio 39 % (1) Represents (1) the change in the excess statutory capital of our U.S. life insurance subsidiaries after meeting both targeted levels of statutory capital and holding company obligations, excluding the excess capital impact of the sale of our wealth management business in the second quarter of 2024 and certain other one-time items and (2) the initial over-capitalization of our Bermuda-based life and annuity reinsurance subsidiary. Annual statutory financial statements are filed in March, and as such, the statutory information used in this calculation is considered an estimate based on information known at the time of reporting. (2) See reconciliation to net income (loss) available to common stockholders on slide 24. (3) See slide 26 for details.

Cover	Feb. 06, 2025
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 06, 2025
Entity Registrant Name	Lincoln National Corporation
Entity Incorporation, State or Country Code	IN
Entity File Number	1-6028
Entity Tax Identification Number	35-1140070
Entity Address, Address Line One	150 N. Radnor Chester Road
Entity Address, City or Town	Radnor
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	484
Local Phone Number	583-1400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000059558
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	LNC
Security Exchange Name	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of 9.000% Non-Cumulative Preferred Stock, Series D
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1000th interest in a share of 9.000% Non-Cumulative Preferred Stock, Series D
Trading Symbol	LNC PRD
Security Exchange Name	NYSE

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