LINCOLN NATIONAL CORP - FORM 8-K - EX-99.2 - LINCOLN NATIONAL CORPORATION STATISTICAL SUPPLEMENT

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8-K - FORM 8-K - LINCOLN NATIONAL CORP	lincoln8k.htm
EX-99.1 - PRESS RELEASE - LINCOLN NATIONAL CORP	ex99-1.htm

Lincoln Financial Group
Table of Contents
First Quarter 2012

Lincoln Financial Group Analyst Coverage	i
Notes	ii-iii

Financial Highlights	1 - 3
Consolidated Operating Expense Detail	4
Selected Financial Results Summary	5
Details Underlying Realized Gain (Loss), After-DAC and Benefit Ratio Unlocking	6
Consolidated Statements of Income (Loss)	7
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL	8
Consolidating Statements of Income (Loss) from Operations - Current Year - Quarter	9
Consolidating Statements of Income (Loss) from Operations - Prior Year - Quarter	10
Consolidated Balance Sheets and Selected Share Data	11
Balance Sheet Data - Segment Highlights	12

Annuities:
Income (Loss) from Operations and Operational Data	13
DAC, VOBA, DSI and DFEL Roll Forwards	14
Account Value Roll Forwards and Information	15
Account Value Information	16
Interest Rate Spread Information, GLB Expense Assessments, GLB Attributed Fee
and GLB Account Values by Type	17

Retirement Plan Services:
Income (Loss) from Operations, Operational Data and DAC, VOBA and DSI Roll Forwards	18
Account Value Roll Forwards and Information	19
Account Value Roll Forwards by Product	20
Account Value and Interest Rate Spread Information	21

Life Insurance:
Income (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards	22
Additional Operational Data	23
Account Value Roll Forwards	24

Group Protection:
Income (Loss) from Operations and Operational Data	25

Other Operations	26

Discontinued Operations	26

Consolidated Deposits, Net Flows and Account Balances	27

Consolidated Investment Data	28

3/31/2012			i
Lincoln Financial Group Analyst Coverage
First Quarter 2012

Firm	Analyst	Phone Number
Bank of America - Merrill Lynch	Ed Spehar	646-855-1744
Barclays Capital	Jay Gelb	212-526-1561
Credit Suisse	Tom Gallagher	212-538-2010
Dowling & Partners	Ryan Krueger	860-676-8600
Evercore Partners	Mark Finkelstein	312-445-6440
FBR Capital Markets	Randy Binner	703-312-1890
Goldman Sachs & Company	Christopher Giovanni	212-357-3560
J.P. Morgan Securities	Jimmy Bhullar	212-622-6397
Keefe, Bruyette & Woods	Jeff Schuman	860-722-5902
Langen McAlenney	Bob Glasspiegel	860-724-1203
Macquarie Capital	Sean Dargan	212-231-0663
Morgan Stanley	Nigel Dally	212-761-4132
Raymond James & Associates	Steven Schwartz	312-612-7686
RBC Capital	Eric Berg	212-618-7593
Sandler O'Neil & Partners	Edward Shields	312-281-3487
Scotia Capital	Joanne Smith	212-225-5071
Sterne, Agee & Leach, Inc.	John Nadel	212-338-4717
UBS	Andrew Kligerman	212-713-2492
Wells Fargo Securities	John Hall	212-214-8032


Investor Inquiries May Be Directed To
Jim Sjoreen, Senior Vice President, Investor Relations
Email: Jim.Sjoreen@lfg.com
Voice: (484) 583-1420
Fax: (484) 583-3962

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

Lincoln Financial Group's Statistical Report will be available immediately after the release of earnings for each quarter through our Investor Relations website: www.LincolnFinancial.com/investor

3/31/2012				ii
NOTES

Definitions and Presentation

"Income (loss) from operations," "operating revenues" and "return on capital" are non-GAAP financial measures and do not replace GAAP
revenues, net income (loss) and return on stockholders' equity. Detailed reconciliations of these non-GAAP financial measures to the most directly
comparable GAAP financial measure are included in this statistical supplement.

•	We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at income (loss) from operations:
	•	Realized gains and losses associated with the following ("excluded realized gain (loss)"):
		•	Sale or disposal of securities;
		•	Impairments of securities;
		•	Change in the fair value of derivative investments, embedded derivatives within certain reinsurance arrangements and our trading securities;
		•	Change in the fair value of the derivatives we own to hedge our guaranteed death benefit ("GDB") riders within our variable annuities, which
			is referred to as "GDB derivatives results;"
		•	Change in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders within our variable annuities accounted
			for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the Financial Accounting Standards Board
			("FASB") Accounting Standards Codification ("ASC") (“embedded derivative reserves”), net of the change in the fair value of the derivatives
			we own to hedge the changes in the embedded derivative reserves, the net of which is referred to as “GLB net derivative results;” and
		•	Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract
			holder index allocations applicable to future reset periods for our indexed annuity products accounted for under the Derivatives and Hedging
			and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“indexed annuity forward-starting option”).
	•	Change in reserves accounted for under the Financial Services - Insurance - Claim Costs and Liabilities for Future Policy Benefits Subtopic of
		the FASB ASC resulting from benefit ratio unlocking on our GDB and GLB riders ("benefit ratio unlocking");
	•	Income (loss) from the initial adoption of new accounting standards;
	•	Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance;
	•	Gain (loss) on early extinguishment of debt;
	•	Losses from the impairment of intangible assets; and
	•	Income (loss) from discontinued operations.

Income (loss) from operations available to common stockholders is net income (loss) available to common stockholders (used in the calculation of
earnings (loss) per share) in accordance with GAAP, excluding the after-tax effects of the items above and the acceleration of our Series B preferred
stock discount as a result of redemption prior to five years from the date of issuance.

	•	Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:
		•	Excluded realized gain (loss);
		•	Amortization of deferred front-end loads ("DFEL") arising from changes in GDB and GLB benefit ratio unlocking;
		•	Amortization of deferred gains arising from the reserve changes on business sold through reinsurance; and
		•	Revenue adjustments from the initial adoption of new accounting standards.

	•	Return on equity measures how efficiently we generate profits from the resources provided by our net assets. Return on equity is calculated
		by dividing annualized net income (loss) by average equity, excluding accumulated other comprehensive income (loss) ("AOCI"). Management
		evaluates return on equity by both including and excluding average goodwill within average equity.

	•	Return on capital measures the effectiveness of our use of total capital, which includes equity (excluding accumulated other
		comprehensive income), debt, capital securities and junior subordinated debentures issued to affiliated trusts. Return on capital is
		calculated by dividing annualized income (loss) from operations (after adding back interest expense) by average capital. The difference
		between return on capital and return on stockholders' equity represents the effect of leveraging on our consolidated results.

Income (loss) from operations, operating revenues, return on equity (including and excluding average goodwill within average equity), excluding AOCI,
using annualized income (loss) from operations and return on capital are financial measures we use to evaluate and assess our results. Our management
and Board of Directors believe that these performance measures explain the results of our ongoing businesses in a manner that allows for a better
understanding of the underlying trends in our current business because 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. In addition, we believe that our definitions of operating revenues and income (loss) from operations
will provide investors with a more valuable measure of our performance because it better reveals trends in our business.

	•	Certain operating and statistical measures are included in this report to provide supplemental data regarding the performance of our
		current business. These measures include deposits, sales, net flows, first-year premiums, in force and spreads.
	•	Sales as reported consist of the following:
		•	Universal life ("UL") (excluding linked-benefit products) and variable universal life ("VUL"), including corporate-owned life
			insurance ("COLI") and bank-owned life insurance ("BOLI") - first year commissionable premiums plus 5% of excess premiums
			received, including an adjustment for internal replacements at approximately 50% of target;
		•	Whole life and term - 100% of first year paid premiums;
		•	Linked-benefit - 15% of premium deposits;
		•	Annuities - deposits from new and existing customers; and
		•	Group Protection - annualized first year premiums from new policies.

	iii
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 , by (b) common shares outstanding, assuming conversion of Series A preferred shares. 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. We believe book value per
share excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily
based on changes in interest rates. Book value per share is the most directly comparable GAAP measure.

Pre-tax operating margin is calculated as income (loss) from operations before federal income taxes divided by operating revenues. After-tax operating
margin is calculated as income (loss) from operations divided by operating revenues.

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

Throughout the document, "after-DAC" refers to the associated amortization expense of DAC, VOBA, DSI and DFEL and changes in other contract
holder funds and funds withheld reinsurance liabilities.

We adopted the provisions of ASU 2010-26 “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts” (“ASU 2010-26”)
effective January 1, 2012, and elected to retrospectively restate all prior periods, including herein. ASU No. 2010-26 clarified the types of costs incurred
by an insurance entity that can be capitalized in the acquisition of insurance contracts. Only those costs incurred that result directly from and are
essential to the successful acquisition of new or renewal insurance contracts may be capitalized as deferrable acquisition costs. The determination of
deferability must be made on a contract-level basis.

Reclassifications
In addition to the items discussed above, certain amounts reported in prior periods have been reclassified to the presentation adopted in the current
period. These reclassifications had no effect on net income, income from operations or stockholders' equity in the prior period.

3/31/2012										PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)

	For the Three Months Ended March 31,
							Change
	2012			2011			Amount			%
Income (Loss) from Operations - By Segment
Annuities	$	136.6		$	144.0		$	(7.4	)		-5.1	%
Retirement Plan Services		34.6			48.2			(13.6	)		-28.2	%
Life Insurance		142.3			142.4			(0.1	)		-0.1	%
Group Protection		16.1			24.1			(8.0	)		-33.2	%
Other Operations		(33.9	)		(37.0	)		3.1			8.4	%
Income (Loss) from Operations (1)		295.7			321.7			(26.0	)		-8.1	%
Excluded realized gain (loss), after-tax (2) (3)		(73.4	)		(13.5	)		(59.9	)	NM
Benefit ratio unlocking, after-tax (2) (3)		23.4			4.9			18.5		NM
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (3)		0.4			0.4			-			0.0	%
Income (loss) from discontinued operations, after-tax (4)		(0.8	)		-			(0.8	)	NM
Net Income (Loss)	$	245.3		$	313.5		$	(68.2	)		-21.8	%

Earnings Per Common Share - Diluted
Income (loss) from operations (1) (5)	$	1.00		$	1.00		$	-			-
Excluded realized gain (loss), after-tax (2) (3)		(0.25	)		(0.04	)		(0.21	)	NM
Benefit ratio unlocking, after-tax (2) (3)		0.08			0.01			0.07		NM
Net Income (Loss) (5)	$	0.83		$	0.97		$	(0.14	)		-14.4	%

Operating Revenues - By Segment
Annuities	$	730.7		$	733.2		$	(2.5	)		-0.3	%
Retirement Plan Services		252.1			263.3			(11.2	)		-4.3	%
Life Insurance		1,232.6			1,147.1			85.5			7.5	%
Group Protection		503.6			477.9			25.7			5.4	%
Other Operations		106.5			116.4			(9.9	)		-8.5	%
Total Operating Revenues		2,825.5			2,737.9			87.6			3.2	%
Excluded realized gain (loss), pre-tax (2)		(113.0	)		(20.8	)		(92.2	)	NM
Amortization income of DFEL associated with benefit ratio unlocking, pre-tax		1.2			0.2			1.0		NM
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax		0.7			0.7			-			-
Total Revenues	$	2,714.4		$	2,718.0		$	(3.6	)		-0.1	%

(1)	Income (loss) from operations includes restructuring charges. See page 5 for detail.
(2)	See page 6 for detail.
(3)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP
	measures to the most comparable GAAP measure.
(4)	Includes discontinued operations and the gain (loss) on disposal. See Discontinued Operations on page 26 for details.
(5)	The numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.

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

3/31/2012										PAGE 2
Financial Highlights (Continued)
Unaudited (in billions)

	For the Three Months Ended March 31,
							Change
	2012			2011			Amount			%
Annuities
Gross deposits	$	2.480		$	2.639		$	(0.159	)		-6.0	%
Net flows		0.293			0.483			(0.190	)		-39.3	%
Account values (gross)		92.552			88.734			3.818			4.3	%
Account values (net of reinsurance)		91.668			87.785			3.883			4.4	%

Retirement Plan Services
Gross deposits (1)	$	1.511		$	1.341		$	0.170			12.7	%
Net flows		0.212			0.134			0.078			58.2	%
Account values - annuities		27.779			27.356			0.423			1.5	%
Alliance and Smart Future mutual funds		14.241			12.952			1.289			10.0	%
Total annuities and mutual fund account values		42.020			40.308			1.712			4.2	%

Life Insurance
Sales (in millions)	$	121.7		$	159.0		$	(37.3	)		-23.5	%
Life insurance in force		579.963			566.684			13.279			2.3	%
Gross deposits		1.159			1.270			(0.111	)		-8.7	%
Net flows		0.751			0.821			(0.070	)		-8.5	%
Account values (net of reinsurance)		36.008			34.149			1.859			5.4	%

Group Protection
Annualized sales (in millions)	$	66.6		$	45.4		$	21.2			46.7	%
Loss ratio (2)		74.9	%		74.1	%	NM			NM

Consolidated
Total deposits	$	5.150		$	5.250		$	(0.100	)		-1.9	%
Total account balances		169.696			162.242			7.454			4.6	%
Total net flows		1.256			1.438			(0.182	)		-12.7	%

(1)	Includes deposits for mutual funds. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.
(2)	Represents combined loss ratio for life, disability and dental businesses.

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

3/31/2012										PAGE 3
Financial Highlights (Continued)
Unaudited (in millions)

	For the Three Months Ended March 31,
							Change
	2012			2011			Amount			%
Balance Sheet Assets - End-of-Period	$	208,018.2		$	196,740.4		$	11,277.8			5.7	%

Stockholders' Equity
Beginning-of-period, including AOCI	$	13,237.9		$	11,814.2		$	1,423.7			12.1	%
End-of-period, including AOCI		13,261.0			12,058.8			1,202.2			10.0	%
End-of-period, excluding AOCI		10,639.1			11,186.1			(547.0	)		-4.9	%
Average equity, excluding AOCI		10,599.1			11,074.6			(475.5	)		-4.3	%

Return on Equity, Excluding AOCI
Income (loss) from operations with average equity:
Including goodwill		11.2	%		11.6	%
Excluding goodwill		14.2	%		16.0	%

Return on Capital
Income (loss) from operations/average capital		8.3	%		8.8	%

Common Shares Outstanding
Average for the period - basic		289.1			315.0			(25.9	)		-8.2	%
Average for the period - diluted		295.9			322.9			(27.0	)		-8.4	%
End-of-period - assuming conversion of preferreds		285.6			313.6			(28.0	)		-8.9	%
End-of-period - diluted		293.0			321.3			(28.3	)		-8.8	%

Book value per common share, including AOCI	$	46.43		$	38.45		$	7.98			20.8	%
Book value per common share, excluding AOCI		37.25			35.67			1.58			4.4	%

Cash Returned to Common Stockholders
Share repurchase - dollar amount	$	150.10		$	75.00		$	75.10			100.1	%
Common dividends declared		22.80			15.80			7.00			44.3	%
Total cash returned to common stockholders	$	172.90		$	90.80		$	82.10			90.4	%

Share repurchase - number of shares		6.02			2.41			3.60			149.3	%
Dividend declared on common stock - per share	$	0.080		$	0.050		$	0.030			60.0	%
Dividend payout ratio		9.6	%		5.2	%
Annualized yield (1)		1.2	%		0.7	%

Comprehensive Income (Loss)
Net income (loss)	$	245.3		$	313.5		$	(68.2	)		-21.8	%
Net unrealized gain (loss) on available-for-sale securities		(13.4	)		8.1			(21.5	)	NM
Unrealized other-than-temporary impairment on available-for-sale securities		(9.3	)		21.6			(30.9	)	NM
Net unrealized gain (loss) on derivative instruments		(29.8	)		(8.4	)		(21.4	)	NM
Foreign currency translation adjustment		(3.5	)		1.0			(4.5	)	NM
Funded status of employee benefit plans		(1.0	)		(0.8	)		(0.2	)		-25.0	%
Comprehensive income (loss)	$	188.3		$	335.0		$	(146.7	)		-43.8	%

	As of March 31,
							Change
	2012			2011			Amount			%
Leverage Ratio
Short-term debt	$	299.9		$	351.6		$	(51.7	)		-14.7	%
Long-term debt		5,606.4			5,369.6			236.8			4.4	%
Total debt		5,906.3			5,721.2			185.1			3.2	%
Less:
Long-term operating debt (2)		1,122.3			1,122.2			0.1			0.0	%
75% of capital securities		908.1			1,114.1			(206.0	)		-18.5	%
Carrying value of fair value hedge		233.9			25.1			208.8		NM
Total numerator	$	3,642.0		$	3,459.8		$	182.2			5.3	%

Stockholders' equity, excluding AOCI	$	10,639.1		$	11,186.1		$	(547.0	)		-4.9	%
Total debt		5,906.3			5,721.2			185.1			3.2	%
Total denominator	$	16,545.4		$	16,907.3		$	(361.9	)		-2.1	%
Leverage Ratio		22.0	%		20.5	%

	Ratings as of May 2, 2012
										Standard &
	A.M. Best			Fitch			Moody's			Poor's
Senior Debt Ratings	a-			BBB+			Baa2			A-

Financial Strength Ratings
Lincoln National Life Insurance Company	A+			A+			A2			AA-
First Penn-Pacific Life Insurance Company	A+			A+			A2			A-
Lincoln Life & Annuity Company of New York	A+			A+			A2			AA-

(1)

Indicated dividend divided by the closing price.

(2)

We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term

structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies and the

senior note issued in September 2008 by our primary insurance subsidiary.

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

3/31/2012																PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change
Commissions and Expenses Incurred
General and administrative expenses	$	365.0		$	366.1		$	368.4		$	409.5		$	398.6			9.2	%
Commissions		484.3			491.9			474.2			482.7			450.9			-6.9	%
Media expenses		16.7			16.8			17.3			18.3			16.1			-3.6	%
Taxes, licenses and fees		61.8			52.8			75.2			62.3			62.5			1.1	%
Interest and debt expense		71.6			72.0			71.0			70.5			67.5			-5.7	%
Expenses associated with reserve financing and unrelated letters of credit ("LOCs")		11.4			12.4			10.7			12.9			13.1			14.9	%
Total Commissions and Expenses Incurred		1,010.8			1,012.0			1,016.8			1,056.2			1,008.7			-0.2	%
Less: Commissions and Expenses Capitalized
General and administrative expenses capitalized		(41.8	)		(44.4	)		(46.8	)		(60.2	)		(42.3	)		-1.2	%
Commissions capitalized		(284.8	)		(296.1	)		(281.4	)		(290.1	)		(238.5	)		16.3	%
Taxes, licenses and fees capitalized		(11.7	)		(11.3	)		(12.8	)		(13.9	)		(9.6	)		17.9	%
Total Commissions and Expenses Capitalized		(338.3	)		(351.8	)		(341.0	)		(364.2	)		(290.4	)		14.2	%
Total Expenses Incurred, Net of Amounts Capitalized, Excluding Amortization		672.5			660.2			675.8			692.0			718.3			6.8	%

Amortization
Amortization of DAC and VOBA, net of interest		166.5			84.7			424.8			169.6			199.8			20.0	%
Amortization of intangibles		1.0			1.1			1.0			1.0			1.0			0.0	%
Total Amortization		167.5			85.8			425.8			170.6			200.8			19.9	%
Total	$	840.0		$	746.0		$	1,101.6		$	862.6		$	919.1			9.4	%

General and Administrative Expenses, Net of Amounts Capitalized - As a Percentage of Operating Revenues		11.8	%		11.3	%		11.8	%		12.9	%		12.6	%

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

3/31/2012																	PAGE 5
Selected Financial Results Summary
Unaudited (in millions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Operating Revenues
Annuities		$	733.2		$	734.8		$	711.0		$	691.7		$	730.7			-0.3	%
Retirement Plan Services			263.3			259.7			247.8			246.3			252.1			-4.3	%
Life Insurance			1,147.1			1,229.0			1,176.3			1,187.0			1,232.6			7.5	%
Group Protection			477.9			500.6			479.4			481.0			503.6			5.4	%
Other Operations			116.4			115.3			120.1			109.3			106.5			-8.5	%
Total Operating Revenues			2,737.9			2,839.4			2,734.6			2,715.3			2,825.5			3.2	%
Excluded realized gain (loss), pre-tax (1)			(20.8	)		(32.6	)		(186.1	)		(149.1	)		(113.0	)	NM
Amortization of DFEL associated with benefit ratio unlocking, pre-tax			0.2			-			(1.7	)		1.0			1.2		NM
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax			0.7			0.7			0.7			0.7			0.7			0.0	%
Total Revenues		$	2,718.0		$	2,807.5		$	2,547.5		$	2,567.9		$	2,714.4			-0.1	%

Income (Loss) from Operations
Annuities		$	144.0		$	144.8		$	153.3		$	130.8		$	136.6			-5.1	%
Retirement Plan Services			48.2			41.4			39.2			33.3			34.6			-28.2	%
Life Insurance			142.4			136.4			153.8			138.2			142.3			-0.1	%
Group Protection			24.1			25.6			26.8			20.5			16.1			-33.2	%
Other Operations			(37.0	)		(22.2	)		(44.2	)		(42.8	)		(33.9	)		8.4	%
Income (Loss) from Operations			321.7			326.0			328.9			280.0			295.7			-8.1	%
Excluded realized gain (loss), after-tax (1) (2)			(13.5	)		(21.2	)		(121.0	)		(96.9	)		(73.4	)	NM
Benefit ratio unlocking, after-tax (1) (2)			4.9			(1.3	)		(41.5	)		24.5			23.4		NM
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (2)			0.4			0.4			0.4			0.4			0.4			0.0	%
Gain (loss) on early extinguishment of debt, after-tax (2)			-			-			(5.5	)		-			-		NM
Impairment of intangibles, after-tax (2)			-			-			-			(746.7	)		-		NM
Income (loss) from discontinued operations, after-tax (3)			-			-			(8.4	)		-			(0.8	)	NM
Net Income (Loss)			313.5			303.9			152.9			(538.7	)		245.3			-21.8	%
Adjustment for deferred units of LNC stock in our deferred
compensation plans (4)			-			(1.3	)		(6.3	)		-			-		NM
Net Income (Loss) Available to Common Stockholders - Diluted		$	313.5		$	302.6		$	146.6		$	(538.7	)	$	245.3			-21.8	%

Stockholders' Equity
Beginning-of-period, including AOCI		$	11,814.2		$	12,058.8		$	12,557.8		$	13,986.9		$	13,237.9
End-of-period, including AOCI			12,058.8			12,557.8			13,986.9			13,237.9			13,261.0
End-of-period, excluding AOCI			11,186.1			11,331.3			11,323.0			10,559.0			10,639.1

Average Stockholders' Equity
Average equity, including average AOCI		$	11,936.5		$	12,308.3		$	13,272.4		$	13,612.4		$	13,249.5
Average AOCI			861.9			1,049.6			1,945.3			2,671.4			2,650.4
Average equity, excluding AOCI			11,074.6			11,258.7			11,327.1			10,941.0			10,599.1
Average goodwill			3,019.4			3,019.4			3,019.4			2,646.1			2,272.8
Average equity, excluding AOCI and goodwill		$	8,055.2		$	8,239.3		$	8,307.7		$	8,294.9		$	8,326.3

Common Shares Outstanding
Average for the period - basic			315.0			311.4			304.8			297.9			289.1
Average for the period - diluted			322.9			319.9			312.0			303.4			295.9
End-of-period - diluted			321.3			316.8			306.9			297.0			293.0

Earnings (Loss) Per Common Share - Diluted
Income (loss) from operations (5)		$	1.00		$	1.02		$	1.04		$	0.92		$	1.00
Net income (loss) (5)			0.97			0.95			0.47			(1.81	)		0.83

Stockholders' Equity Per Common Share
Stockholders' equity, including AOCI		$	38.45		$	40.71		$	46.34		$	45.41		$	46.43
Stockholders' equity, excluding AOCI			35.67			36.73			37.52			36.22			37.25
Dividends declared (common stock)			0.050			0.050			0.050			0.080			0.080

Return on Equity, Excluding AOCI
Net income (loss) with average equity including goodwill			11.3	%		10.8	%		5.4	%		-19.7	%		9.3	%
Income (loss) from operations with average equity including goodwill			11.6	%		11.6	%		11.6	%		10.2	%		11.2	%
Income (loss) from operations with average equity excluding goodwill			16.0	%		15.8	%		15.8	%		13.5	%		14.2	%

Market Value of Common Shares
Highest price		$	32.68		$	32.39		$	29.67		$	21.88		$	27.54
Lowest price			28.00			25.97			15.00			13.75			19.38
Closing price			30.04			28.49			15.63			19.42			26.36

(1)	See page 6 for detail.
(2)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP
	measures to the most comparable GAAP measure.
(3)	Includes discontinued operations and the gain (loss) on disposal. See Discontinued Operations on page 26 for details.
(4)	The numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(5)	For any period where a loss from continuing operations is experienced, shares used in the diluted EPS calculation represent basic shares since using diluted shares would be anti-dilutive to the calculation. In these periods we would also exclude the
	adjustment discussed in footnote (4) above when arriving at EPS.

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

3/31/2012																PAGE 6
Details Underlying Realized Gain (Loss), After-DAC and Benefit Ratio Unlocking
Unaudited (in millions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change
Components of Realized Gain (Loss), Pre-Tax
Total operating realized gain (loss) (1)(2)	$	22.9		$	23.5		$	23.1		$	24.9		$	27.3			19.2	%
Total excluded realized gain (loss) (3)(4)(5)(6)(7)		(20.8	)		(32.6	)		(186.1	)		(149.1	)		(113.0	)	NM
Total realized gain (loss), pre-tax	$	2.1		$	(9.1	)	$	(163.0	)	$	(124.2	)	$	(85.7	)	NM

Reconciliation of Excluded Realized Gain (Loss) Net of Benefit Ratio Unlocking, After-Tax (8)
Total excluded realized gain (loss) (3)(4)(5)(6)(7)	$	(13.5	)	$	(21.2	)	$	(121.0	)	$	(96.9	)	$	(73.4	)	NM
Benefit ratio unlocking (9)		4.9			(1.3	)		(41.5	)		24.5			23.4		NM
Excluded realized gain (loss) net of benefit ratio unlocking, after-tax	$	(8.6	)	$	(22.5	)	$	(162.5	)	$	(72.4	)	$	(50.0	)	NM

Components of Excluded Realized Gain (Loss) Net of Benefit Ratio Unlocking, After-Tax (8)
Realized gain (loss) related to certain investments (3)	$	(9.6	)	$	(21.2	)	$	(28.7	)	$	(37.0	)	$	(31.6	)	NM
Gain (loss) on the mark-to-market on certaininstruments (4)		6.8			(0.5	)		(68.5	)		8.7			37.5		NM
Variable annuity net derivatives results: (5)(6)(9)
Hedge program performance		(18.0	)		(11.5	)		(91.5	)		5.8			18.6			203.3	%
Unlocking for GLB reserves hedged		-			-			(78.3	)		-			-		NM
GLB NPR component		10.5			10.5			106.3			(49.5	)		(84.3	)	NM
Total variable annuity net derivatives results		(7.5	)		(1.0	)		(63.5	)		(43.7	)		(65.7	)	NM
Indexed annuity forward-starting option (7)		1.7			0.2			(1.8	)		(0.4	)		9.8		NM
Excluded realized gain (loss) net of benefit ratiounlocking, after-tax	$	(8.6	)	$	(22.5	)	$	(162.5	)	$	(72.4	)	$	(50.0	)	NM

(1)	Includes the net difference between the change in the fair value of the S&P 500 Index® call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity products. The change in the fair value
	of the liability for the embedded derivative represents the amount that is credited to the indexed annuity contract.
(2)	Includes the "risk/profit margin" portion of the attributed GLB rider fees. We have certain GLB variable annuity riders with GWB and GIB features that are embedded derivatives. We attribute to the embedded derivative the portion of total fees collected
	from the contract holder that relates to the GLB riders (the “attributed fees”). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract (the “net valuation premium”) plus a margin that a
	theoretical market participant would include for risk/profit (the “risk/profit margin”). We include the net valuation premium of the GLB attributed rider fees in excluded realized gain (loss). For our Annuities and Retirement Plan Services segments, the
	total fees collected from the contract holders in excess of the GLB attributed fees are reported in insurance fees.
(3)	See page 28 for detail.
(4)	Includes changes in the fair values of certain derivative investments (including the credit default swaps and contingent forwards associated with consolidated VIEs), total return swaps (embedded derivatives that are theoretically included
	in our various modified coinsurance and coinsurance with funds withheld reinsurance arrangements that have contractual returns related to various assets and liabilities associated with these arrangements) and trading securities.
(5)	Includes the net valuation premium, the change in GLB embedded derivative reserves and the change in the fair value of the derivative instruments we own to hedge them, including the cost of purchasing the hedging instruments. In addition, these
	results include the changes in reserves not accounted for at fair value and resulting benefit ratio unlocking on our GDB and GLB riders and the change in the fair value of the derivative instruments we own to hedge them.
(6)	Includes the change in the fair value of the derivatives we own to hedge the change in the GDB riders.
(7)	Includes changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products.
(8)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our
	non-GAAP measures to the most comparable GAAP measure.
(9)	Represents or includes changes in reserves not accounted for at fair value and resulting from benefit ratio unlocking on our GDB and GLB riders.

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

3/31/2012																PAGE 7
Consolidated Statements of Income (Loss)
Unaudited (in millions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change
Revenues
Insurance premiums	$	567.8		$	594.1		$	559.0		$	573.1		$	588.9			3.7	%
Surrender charges		34.2			40.2			29.5			29.2			29.4			-14.0	%
Mortality assessments		324.7			326.7			335.1			325.1			336.9			3.8	%
Expense assessments		458.8			533.2			499.8			500.0			540.7			17.9	%
Net investment income		1,191.2			1,180.6			1,150.7			1,129.3			1,165.8			-2.1	%
Realized gain (loss):
Total other-than-temporary impairment losses on securities		(43.6	)		(47.1	)		(44.1	)		(33.9	)		(97.2	)	NM
Portion of loss recognized in other comprehensive income		2.9			16.0			17.6			8.5			49.8		NM
Net other-than-temporary impairment losses on securities recognized in earnings		(40.7	)		(31.1	)		(26.5	)		(25.4	)		(47.4	)		-16.5	%
Realized gain (loss), excluding other-than-temporary impairment losses on securities		42.8			22.0			(136.5	)		(98.8	)		(38.3	)	NM
Total realized gain (loss) (1)		2.1			(9.1	)		(163.0	)		(124.2	)		(85.7	)	NM
Amortization of deferred gains on business sold through reinsurance		18.7			18.7			18.7			18.7			18.6			-0.5	%
Other revenues and fees		120.5			123.1			117.7			116.7			119.8			-0.6	%
Total Revenues		2,718.0			2,807.5			2,547.5			2,567.9			2,714.4			-0.1	%
Benefits and Expenses
Interest credited		614.8			624.6			624.8			623.6			624.8			1.6	%
Benefits		833.4			1,028.3			664.8			818.9			858.4			3.0	%
Underwriting, acquisition, insurance and other expenses		769.3			673.9			1,023.6			797.2			856.2			11.3	%
Interest and debt expense		71.6			72.0			79.4			70.5			67.5			-5.7	%
Impairment of intangibles		-			-			-			746.7			-		NM
Total Benefits and Expenses		2,289.1			2,398.8			2,392.6			3,056.9			2,406.9			5.1	%
Income (loss) from continuing operations before taxes		428.9			408.7			154.9			(489.0	)		307.5			-28.3	%
Federal income tax expense (benefit)		115.4			104.8			(6.4	)		49.7			61.4			-46.8	%
Income (Loss) from Continuing Operations		313.5			303.9			161.3			(538.7	)		246.1			-21.5	%
Income (loss) from discontinued operations, net offederal income taxes (2)		-			-			(8.4	)		-			(0.8	)	NM
Net Income (Loss)		313.5			303.9			152.9			(538.7	)		245.3			-21.8	%
Adjustment for deferred units of LNC stock in our deferred compensation plans (3)		-			(1.3	)		(6.3	)		-			-		NM
Net Income (Loss) Available to CommonStockholders - Diluted	$	313.5		$	302.6		$	146.6		$	(538.7	)	$	245.3			-21.8	%

Earnings (Loss) Per Common Share (Diluted)
Income (loss) from continuing operations	$	0.97		$	0.95		$	0.50		$	(1.81	)	$	0.83			-14.4	%
Income (loss) from discontinued operations, net of federal income taxes (2)		-			-			(0.03	)		-			-		NM
Net Income (Loss) (4)	$	0.97		$	0.95		$	0.47		$	(1.81	)	$	0.83			-14.4	%

(1)	See page 6 for detail.
(2)	Includes discontinued operations and the gain (loss) on disposal. See Discontinued Operations on page 26 for details.
(3)	The numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(4)	For any period where a loss from continuing operations is experienced, shares used in the diluted EPS calculation represent basic shares since using diluted shares would be anti-dilutive to the calculation. In these periods we would also exclude the
	adjustment discussed infootnote (3) above when arriving at EPS.

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

3/31/2012													PAGE 8
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL
Unaudited (in millions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March
DAC and VOBA	2011			2011			2011			2011			2012
Balance as of beginning-of-period	$	7,414.2		$	7,695.5		$	7,698.9		$	6,704.7		$	6,775.8
Business acquired through reinsurance		-			-			1.7			10.6			-
Deferrals		338.3			351.8			341.0			364.2			290.4
Amortization, net of interest		(166.5	)		(84.7	)		(424.8	)		(169.6	)		(199.8	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		171.8			267.1			(83.8	)		194.6			90.6
Amortization, net of interest, associated with benefit ratio unlocking		(0.9	)		0.1			7.1			(4.9	)		(4.5	)
Adjustment related to realized (gains) losses		(21.7	)		(18.1	)		3.4			12.3			18.9
Adjustment related to unrealized (gains) losses		132.1			(245.7	)		(922.6	)		(141.5	)		(0.6	)
Balance as of End-of-Period	$	7,695.5		$	7,698.9		$	6,704.7		$	6,775.8		$	6,880.0

DSI
Balance as of beginning-of-period	$	285.6		$	285.9		$	276.2		$	267.7		$	271.2
Deferrals		9.7			8.7			10.5			10.5			8.7
Amortization, net of interest		(12.7	)		(11.2	)		(10.5	)		(5.3	)		(12.2	)
Deferrals, net of amortization included in operating insurance benefits or interest credited		(3.0	)		(2.5	)		-			5.1			(3.5	)
Amortization, net of interest, associated with benefit ratio unlocking		(0.2	)		-			1.2			(0.9	)		(0.7	)
Adjustment related to realized (gains) losses		(0.7	)		(1.4	)		(0.7	)		1.5			2.5
Adjustment related to unrealized (gains) losses		4.2			(5.8	)		(9.0	)		(2.2	)		(1.1	)
Balance as of End-of-Period	$	285.9		$	276.2		$	267.7		$	271.2		$	268.4

DFEL
Balance as of beginning-of-period	$	1,501.9		$	1,639.8		$	1,693.8		$	1,337.6		$	1,368.3
Deferrals		142.7			134.3			134.4			132.2			89.7
Amortization, net of interest		(5.3	)		(54.1	)		(40.2	)		(35.8	)		(50.0	)
Deferrals, net of amortization included in operating expense assessments		137.4			80.2			94.2			96.4			39.7
Amortization, net of interest, associated with benefit ratio unlocking		(0.2	)		-			1.6			(1.0	)		(1.1	)
Adjustment related to realized (gains) losses		(3.7	)		(2.1	)		(4.2	)		1.4			5.5
Adjustment related to unrealized (gains) losses		4.4			(24.1	)		(447.8	)		(66.1	)		(8.7	)
Balance as of End-of-Period	$	1,639.8		$	1,693.8		$	1,337.6		$	1,368.3		$	1,403.7

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

3/31/2012													PAGE 9
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended March 31, 2012
Unaudited (in millions)

				Retirement
				Plan		Life		Group		Other
		Annuities		Services		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums		$	17.3	$	-	$	108.6	$	463.0	$	0.1		$	589.0
Surrender charges			5.7		0.4		23.2		-		-			29.3
Mortality assessments			-		-		336.8		-		-			336.8
Expense assessments			319.4		51.3		168.6		-		-			539.3
Net investment income			272.3		197.0		588.3		38.4		69.8			1,165.8
Operating realized gain (loss) (2)			27.0		0.1		-		-		-			27.1
Amortization of deferred gain on business sold through reinsurance			-		-		-		-		18.0			18.0
Other revenues and fees			89.0		3.3		7.1		2.2		18.6			120.2
Total Operating Revenues			730.7		252.1		1,232.6		503.6		106.5			2,825.5
Operating Expenses
Interest credited			170.5		110.7		311.2		0.8		31.1			624.3
Benefits			46.2		0.1		474.5		349.9		27.7			898.4
Underwriting, acquisition, insurance and other expenses			352.6		94.5		239.1		128.0		37.3			851.5
Interest and debt expense			-		-		-		-		67.5			67.5
Total Operating Expenses			569.3		205.3		1,024.8		478.7		163.6			2,441.7
Income (loss) from operations before federal income taxes			161.4		46.8		207.8		24.9		(57.1	)		383.8
Federal income tax expense (benefit)			24.8		12.2		65.5		8.8		(23.2	)		88.1
Income (Loss) from Operations		$	136.6	$	34.6	$	142.3	$	16.1	$	(33.9	)	$	295.7

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 13 and 18.

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

3/31/2012													PAGE 10
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended March 31, 2011
Unaudited (in millions)

				Retirement
				Plan		Life		Group		Other
		Annuities		Services		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums		$	23.1	$	-	$	108.1	$	436.6	$	0.1		$	567.9
Surrender charges			10.5		0.7		23.0		-		-			34.2
Mortality assessments			-		-		324.7		-		-			324.7
Expense assessments			299.4		53.9		104.7		-		-			458.0
Net investment income			288.1		204.9		579.1		39.1		80.1			1,191.3
Operating realized gain (loss) (2)			22.8		0.1		-		-		-			22.9
Amortization of deferred gain on business sold through reinsurance			-		-		-		-		18.0			18.0
Other revenues and fees			89.3		3.7		7.5		2.2		18.2			120.9
Total Operating Revenues			733.2		263.3		1,147.1		477.9		116.4			2,737.9
Operating Expenses
Interest credited			174.4		108.3		302.2		0.9		28.8			614.6
Benefits			35.4		-		447.2		326.7		32.5			841.8
Underwriting, acquisition, insurance and other expenses			339.5		85.5		187.2		113.1		43.0			768.3
Interest and debt expense			-		-		-		-		71.6			71.6
Total Operating Expenses			549.3		193.8		936.6		440.7		175.9			2,296.3
Income (loss) from operations before federal income taxes			183.9		69.5		210.5		37.2		(59.5	)		441.6
Federal income tax expense (benefit)			39.9		21.3		68.1		13.1		(22.5	)		119.9
Income (Loss) from Operations		$	144.0	$	48.2	$	142.4	$	24.1	$	(37.0	)	$	321.7

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 13 and 18.

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

3/31/2012													PAGE 11
Consolidated Balance Sheets and Selected Share Data
Unaudited (in millions)

	As of
	March			June			Sept.			Dec.			March
	2011			2011			2011			2011			2012
ASSETS
Investments:
Corporate bonds	$	53,174.8		$	54,830.4		$	58,262.0		$	59,261.1		$	60,599.5
U.S. Government bonds		161.8			239.7			286.0			494.6			486.3
Foreign government bonds		516.0			592.6			641.9			732.4			650.3
Mortgage-backed securities		10,541.6			10,334.3			10,119.5			9,638.7			9,095.5
Asset-backed securities		136.8			126.1			110.4			101.6			101.8
State and municipal bonds		3,280.0			3,479.3			3,969.7			4,047.2			4,124.5
Hybrid and redeemable preferred securities		1,420.0			1,317.8			1,202.0			1,157.2			1,196.5
VIEs' fixed maturity securities		586.8			592.6			699.5			700.1			701.9
Equity securities		144.6			143.7			137.4			138.8			125.6
Total available-for-sale securities		69,962.4			71,656.5			75,428.4			76,271.7			77,081.9
Trading securities		2,598.0			2,624.7			2,726.2			2,674.7			2,649.7
Mortgage loans on real estate		6,748.7			6,870.5			6,893.3			6,942.6			6,937.6
Real estate		188.9			149.9			135.8			136.8			112.6
Policy loans		2,837.1			2,877.1			2,873.5			2,884.6			2,841.8
Derivative investments		945.7			1,097.0			3,028.7			3,151.0			2,244.5
Other investments		1,029.4			1,002.3			1,104.7			1,068.6			1,043.6
Total investments		84,310.2			86,278.0			92,190.6			93,130.0			92,911.7
Cash and invested cash		2,216.4			2,911.8			4,832.7			4,510.2			3,515.8
DAC and VOBA		7,695.5			7,699.0			6,704.7			6,775.8			6,880.0
Premiums and fees receivable		400.8			370.3			383.4			407.5			436.8
Accrued investment income		988.9			994.2			1,023.3			981.4			1,026.4
Reinsurance recoverables		6,580.0			6,556.2			6,658.8			6,526.0			6,534.2
Funds withheld reinsurance assets		889.0			884.9			881.2			874.1			865.9
Goodwill		3,019.4			3,019.4			3,019.4			2,272.8			2,272.8
Other assets		2,403.9			2,422.5			2,433.2			2,535.9			2,486.4
Separate account assets		88,236.3			88,845.6			78,194.6			83,476.5			91,088.2
Total Assets	$	196,740.4		$	199,981.9		$	196,321.9		$	201,490.2		$	208,018.2

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	17,333.3		$	17,873.9		$	19,988.5		$	19,813.4		$	18,783.8
Other contract holder funds		67,098.8			67,838.1			68,552.3			69,465.5			70,027.7
Short-term debt		351.6			251.3			549.9			299.9			299.9
Long-term debt categorized by standard rating agency leverage definitions:
Operating (see note (4) on page 3 for details)		1,122.2			1,122.2			1,122.3			1,122.3			1,122.3
Financial		4,247.4			4,606.5			4,226.1			4,269.1			4,484.1
Reinsurance related embedded derivatives		91.0			119.1			177.3			167.5			158.0
Funds withheld reinsurance liabilities		1,134.7			1,107.1			1,072.0			1,044.8			1,042.8
Deferred gain on indemnity reinsurance		449.6			430.9			412.2			393.5			374.9
Payables for collateral on investments		1,554.2			1,805.5			3,855.1			3,733.3			2,874.5
VIEs' liabilities		130.0			129.5			203.0			193.4			149.5
Other liabilities		2,932.5			3,294.4			3,981.7			4,273.1			4,351.5
Separate account liabilities		88,236.3			88,845.6			78,194.6			83,476.5			91,088.2
Total liabilities		184,681.6			187,424.1			182,335.0			188,252.3			194,757.2
Stockholders' Equity
Series A preferred stock		0.4			0.4			0.4			0.4			0.3
Common stock		8,063.5			7,937.6			7,791.5			7,589.6			7,447.4
Retained earnings		3,122.2			3,393.3			3,531.1			2,969.0			3,191.4
AOCI:
Net unrealized gain (loss) on available-for-sale securities		1,184.9			1,555.5			2,842.5			2,946.6			2,933.2
Unrealized other-than-temporary impairment on available-for-sale securities		(112.1	)		(111.0	)		(110.0	)		(109.6	)		(118.9	)
Net unrealized gain (loss) on derivative instruments		(19.6	)		(37.0	)		111.7			119.2			89.4
Foreign currency translation adjustment		1.6			(2.6	)		2.7			0.5			(3.0	)
Funded status of employee benefit plans		(182.1	)		(178.4	)		(183.0	)		(277.8	)		(278.8	)
Total accumulated other comprehensive income (loss)		872.7			1,226.5			2,663.9			2,678.9			2,621.9
Total stockholders' equity		12,058.8			12,557.8			13,986.9			13,237.9			13,261.0
Total Liabilities and Stockholders' Equity	$	196,740.4		$	199,981.9		$	196,321.9		$	201,490.2		$	208,018.2

Share Data Per Common Share
Stockholders' equity per share	$	38.45		$	40.71		$	46.34		$	45.41		$	46.43
Book value, excluding AOCI		35.67			36.73			37.52			36.22			37.26
Common shares outstanding - assuming conversion of Series A preferred shares		313.6			308.5			301.8			291.5			285.6

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

3/31/2012													PAGE 12
Balance Sheet Data - Segment Highlights
Unaudited (in millions)

As of March 31, 2012				Retirement
				Plan		Life		Group		Other
		Annuities		Services		Insurance		Protection		Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash (2)		$	26,656.3	$	15,548.0	$	43,935.9	$	2,893.2	$	7,394.1		$	96,427.5
DAC and VOBA			1,965.1		165.0		4,585.9		164.0		-			6,880.0
Goodwill			439.8		20.2		1,538.5		274.3		-			2,272.8
DSI and other intangibles			266.8		3.6		76.0		-		118.2			464.6
Reinsurance recoverables			497.8		-		2,080.5		52.3		3,903.6			6,534.2
Separate account assets			70,992.7		13,949.4		5,977.1		-		169.0			91,088.2

Liabilities and Capital
Future contract benefits			2,393.1		3.2		8,104.3		1,780.3		6,502.9			18,783.8
Other contract holder funds			20,774.6		13,814.1		34,366.4		235.9		836.7			70,027.7

Allocated capital (3)			3,513.2		969.0		7,318.7		1,188.0		(2,349.8	)		10,639.1



As of December 31, 2011

Assets
Allocated investments and cash and invested cash (2)		$	28,466.8	$	15,395.1	$	43,628.0	$	2,854.9	$	7,295.4		$	97,640.2
DAC and VOBA			1,912.1		183.1		4,515.6		165.0		-			6,775.8
Goodwill			439.8		20.2		1,538.5		274.3		-			2,272.8
DSI and other intangibles			269.5		3.6		77.0		-		118.3			468.4
Reinsurance recoverables			560.5		-		2,069.6		48.8		3,847.1			6,526.0
Separate account assets			64,946.5		12,858.3		5,508.6		-		163.1			83,476.5

Liabilities and Capital
Future contract benefits			3,642.4		7.4		7,983.8		1,741.7		6,438.1			19,813.4
Other contract holder funds			20,701.3		13,623.8		34,065.6		236.1		838.7			69,465.5

Allocated capital (3)			3,279.8		881.2		7,178.9		1,172.5		(1,953.3	)		10,559.1

(1)	Includes inter-segment eliminations.
(2)	Includes inter-segment cash management balances our segments utilize to borrow money to meet their short-term needs and also to invest short-term funds with other segments. These balances eliminate in consolidation.
(3)	Allocated capital is based on internal economic capital models plus certain other items (principally intangibles, including DAC and VOBA, goodwill and other items).

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

3/31/2012																	PAGE 13
Annuities
Income (Loss) from Operations and Operational Data
Unaudited (in millions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Operating Revenues
Insurance premiums (1)		$	23.1		$	21.8		$	14.6		$	14.2		$	17.3			-25.1	%
Surrender charges			10.5			10.0			8.1			5.9			5.7			-45.7	%
Expense assessments			299.4			311.5			308.7			293.0			319.4			6.7	%
Net investment income			288.1			277.7			270.9			269.6			272.3			-5.5	%
Operating realized gain (loss) (2)			22.8			23.4			23.0			24.8			27.0			18.4	%
Other revenues and fees (3)			89.3			90.4			85.7			84.2			89.0			-0.3	%
Total Operating Revenues			733.2			734.8			711.0			691.7			730.7			-0.3	%
Operating Expenses
Interest credited			174.4			178.0			177.2			168.9			170.5			-2.2	%
Benefits (1)			35.4			42.6			87.0			47.1			46.2			30.5	%
Underwriting, acquisition, insurance and other expenses			339.5			335.5			286.8			321.4			352.6			3.9	%
Total Operating Expenses			549.3			556.1			551.0			537.4			569.3			3.6	%
Income (loss) from operations before federal income taxes			183.9			178.7			160.0			154.3			161.4			-12.2	%
Federal income tax expense (benefit)			39.9			33.9			6.7			23.5			24.8			-37.8	%
Income (Loss) from Operations		$	144.0		$	144.8		$	153.3		$	130.8		$	136.6			-5.1	%

Effective Tax Rate			21.7	%		19.0	%		4.2	%		15.2	%		15.4	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill		$	2,732.0		$	2,756.5		$	3,020.0		$	3,267.6		$	3,396.5
Average goodwill			439.8			439.8			439.8			439.8			439.8
Average equity, excluding goodwill		$	2,292.2		$	2,316.7		$	2,580.2		$	2,827.8		$	2,956.7
Return on Equity, Excluding AOCI
Including goodwill			21.1	%		21.0	%		20.3	%		16.0	%		16.1	%
Excluding goodwill			25.1	%		25.0	%		23.8	%		18.5	%		18.5	%

Income (Loss) from Operations - Basis Points onAverage Account Values - Annualized			66			65			71			61			61			(5	)

Operating Realized Gain (Loss) (2)
Indexed annuity net derivatives results (4)		$	1.1		$	0.4		$	(1.0	)	$	0.5		$	1.4			27.3	%
GLB (5)			21.7			23.0			24.0			24.3			25.6			18.0	%
Total Operating Realized Gain (Loss)		$	22.8		$	23.4		$	23.0		$	24.8		$	27.0			18.4	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions		$	176.6		$	193.4		$	182.4		$	173.2		$	183.4			3.9	%
General and administrative expenses			86.9			93.1			85.5			94.6			97.6			12.3	%
Inter-segment reimbursement associated with reserve financing and LOC expenses (6)			(0.5	)		0.4			(0.9	)		0.2			-			100.0	%
Broker-dealer commissions and general and administrative expenses			90.8			88.5			85.0			83.1			87.9			-3.2	%
Taxes, licenses and fees			9.4			8.2			6.7			2.7			10.0			6.4	%
Total commissions and expenses incurred			363.2			383.6			358.7			353.8			378.9			4.3	%
Less: commissions and expenses capitalized			(127.0	)		(140.8	)		(136.8	)		(122.7	)		(124.5	)		2.0	%
Amortization of DAC and VOBA, net of interest			103.3			92.7			64.9			90.3			98.2			-4.9	%
Total Underwriting, Acquisition, Insurance and Other Expenses		$	339.5		$	335.5		$	286.8		$	321.4		$	352.6			3.9	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized (7)			40			42			40			44			43			3

(1)	Includes our single premium immediate annuities, which have a corresponding offset to benefits for changes in reserves.
(2)	Included in income (loss) from operations.
(3)	Other revenues and fees consists primarily of fees attributable to broker-dealer services that are subject to market volatility.
(4)	See note (1) on page 6 for details.
(5)	See note (2) on page 6 for details.
(6)	Represents reimbursements to Annuities from the Life Insurance segment for reserve financing, net of expenses incurred by Annuities for its use of LOCs. The inter-segment amounts are not reported on our Consolidated Statements of Income (Loss).
(7)	Includes distribution costs.

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

3/31/2012													PAGE 14
Annuities
DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (in millions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March
DAC and VOBA	2011			2011			2011			2011			2012
Balance as of beginning-of-period	$	1,881.7		$	1,949.4		$	1,913.3		$	1,876.9		$	1,912.1
Deferrals		127.0			140.8			136.8			122.7			124.5
Amortization, net of interest		(103.3	)		(92.7	)		(64.9	)		(90.3	)		(98.2	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		23.7			48.1			71.9			32.4			26.3
Amortization, net of interest, associated with benefit ratio unlocking		(0.9	)		0.1			7.0			(4.7	)		(4.5	)
Adjustment related to realized (gains) losses		(6.9	)		(8.5	)		0.8			12.9			17.4
Adjustment related to unrealized (gains) losses		51.8			(75.8	)		(116.1	)		(5.4	)		13.8
Balance as of End-of-Period	$	1,949.4		$	1,913.3		$	1,876.9		$	1,912.1		$	1,965.1

DSI
Balance as of beginning-of-period	$	283.6		$	283.8		$	274.2		$	265.7		$	269.5
Deferrals		9.7			8.7			10.5			10.4			8.7
Amortization, net of interest		(12.7	)		(11.1	)		(10.6	)		(5.2	)		(12.1	)
Deferrals, net of amortization included in operating interest credited		(3.0	)		(2.4	)		(0.1	)		5.2			(3.4	)
Amortization, net of interest, associated with benefit ratio unlocking		(0.2	)		-			1.2			(0.9	)		(0.7	)
Adjustment related to realized (gains) losses		(0.7	)		(1.4	)		(0.7	)		1.5			2.5
Adjustment related to unrealized (gains) losses		4.1			(5.8	)		(8.9	)		(2.0	)		(1.1	)
Balance as of End-of-Period	$	283.8		$	274.2		$	265.7		$	269.5		$	266.8

DFEL
Balance as of beginning-of-period	$	222.0		$	234.2		$	246.9		$	249.2		$	262.6
Deferrals		16.8			18.6			15.7			9.9			6.4
Amortization, net of interest		(5.7	)		(4.7	)		(9.1	)		3.5			(5.3	)
Deferrals, net of amortization included in operating expense assessments		11.1			13.9			6.6			13.4			1.1
Amortization, net of interest, associated with benefitratio unlocking		(0.2	)		-			1.6			(1.0	)		(1.1	)
Adjustment related to realized (gains) losses		(1.7	)		(0.7	)		(4.7	)		1.6			5.3
Adjustment related to unrealized (gains) losses		3.0			(0.5	)		(1.2	)		(0.6	)		(0.7	)
Balance as of End-of-Period	$	234.2		$	246.9		$	249.2		$	262.6		$	267.2

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

3/31/2012																	PAGE 15
Annuities
Account Value Roll Forwards and Information
Unaudited (in billions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Fixed Annuities (1)
Balance as of beginning-of-period		$	20.952		$	20.947		$	21.224		$	21.375		$	21.426			2.3	%
Gross deposits			1.116			1.307			1.294			1.062			1.008			-9.7	%
Withdrawals and deaths			(0.513	)		(0.525	)		(0.590	)		(0.564	)		(0.549	)		-7.0	%
Net flows			0.603			0.782			0.704			0.498			0.459			-23.9	%
Transfers to variable annuities			(0.832	)		(0.699	)		(0.609	)		(0.704	)		(0.671	)		19.4	%
Interest credited			0.214			0.186			0.046			0.247			0.270			26.2	%
Sales inducements deferred			0.010			0.008			0.010			0.010			0.009			-10.0	%
Balance as of End-of-Period (Gross)			20.947			21.224			21.375			21.426			21.493			2.6	%
Reinsurance ceded			(0.949	)		(0.935	)		(0.920	)		(0.902	)		(0.884	)		6.8	%
Balance as of End-of-Period (Net of Ceded)		$	19.998		$	20.289		$	20.455		$	20.524		$	20.609			3.1	%

Variable Annuities (2)
Balance as of beginning-of-period		$	64.858		$	67.787		$	68.551		$	60.774		$	65.010			0.2	%
Gross deposits			1.523			1.620			1.415			1.313			1.472			-3.3	%
Withdrawals and deaths			(1.643	)		(1.702	)		(1.456	)		(1.466	)		(1.638	)		0.3	%
Net flows			(0.120	)		(0.082	)		(0.041	)		(0.153	)		(0.166	)		-38.3	%
Transfers from fixed annuities			0.832			0.699			0.609			0.704			0.671			-19.4	%
Investment increase and change in market value			2.217			0.147			(8.345	)		3.685			5.544			150.1	%
Balance as of End-of-Period		$	67.787		$	68.551		$	60.774		$	65.010		$	71.059			4.8	%

Total Annuities
Balance as of beginning-of-period		$	85.810		$	88.734		$	89.775		$	82.149		$	86.436			0.7	%
Gross deposits			2.639			2.927			2.709			2.375			2.480			-6.0	%
Withdrawals and deaths			(2.156	)		(2.227	)		(2.046	)		(2.030	)		(2.187	)		-1.4	%
Net flows			0.483			0.700			0.663			0.345			0.293			-39.3	%
Interest credited and change in market value			2.431			0.333			(8.299	)		3.932			5.814			139.2	%
Sales inducements deferred			0.010			0.008			0.010			0.010			0.009			-10.0	%
Balance as of End-of-Period (Gross)			88.734			89.775			82.149			86.436			92.552			4.3	%
Reinsurance ceded			(0.949	)		(0.935	)		(0.920	)		(0.902	)		(0.884	)		6.8	%
Balance as of End-of-Period (Net of Ceded)		$	87.785		$	88.840		$	81.229		$	85.534		$	91.668			4.4	%

Variable Annuities Under Agreement - Included Above		$	0.076		$	0.073		$	0.060		$	0.062		$	0.065			-14.5	%

Incremental Deposits (3)
Fixed annuities		$	1.114		$	1.306		$	1.292		$	1.062		$	1.006			-9.7	%
Variable annuities			1.515			1.614			1.411			1.309			1.464			-3.4	%
	Total Incremental Deposits	$	2.629		$	2.920		$	2.703		$	2.371		$	2.470			-6.0	%

(1)	Includes the fixed portion of variable annuities.
(2)	Excludes the fixed portion of variable annuities.
(3)	Represents gross deposits reduced by transfers from other Lincoln products.

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

3/31/2012																PAGE 16
Annuities
Account Value Information
Unaudited (in billions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change

Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits	$	0.077		$	0.091		$	0.092		$	0.052		$	0.048			-37.7	%
Withdrawals and deaths		(0.266	)		(0.284	)		(0.318	)		(0.272	)		(0.248	)		6.8	%
Net flows	$	(0.189	)	$	(0.193	)	$	(0.226	)	$	(0.220	)	$	(0.200	)		-5.8	%

Gross fixed contract account values	$	8.627		$	8.517		$	8.375		$	8.231		$	8.106			-6.0	%
Reinsurance ceded		(0.947	)		(0.933	)		(0.918	)		(0.899	)		(0.882	)		6.9	%
Net fixed contract account values	$	7.680		$	7.584		$	7.457		$	7.332		$	7.224			-5.9	%

Indexed Annuities
Deposits	$	0.378		$	0.480		$	0.462		$	0.295		$	0.247			-34.7	%
Withdrawals and deaths		(0.158	)		(0.153	)		(0.190	)		(0.203	)		(0.217	)		-37.3	%
Net flows	$	0.220		$	0.327		$	0.272		$	0.092		$	0.030			-86.4	%

Gross indexed contract account values	$	9.016		$	9.421		$	9.634		$	9.875		$	10.080			11.8	%
Reinsurance ceded		(0.002	)		(0.002	)		(0.002	)		(0.002	)		(0.001	)		50.0	%
Net indexed contract account values	$	9.014		$	9.419		$	9.632		$	9.873		$	10.079			11.8	%

Fixed Portion of Variable Contracts
Deposits	$	0.661		$	0.736		$	0.740		$	0.715		$	0.713			7.9	%
Withdrawals and deaths		(0.089	)		(0.088	)		(0.082	)		(0.089	)		(0.084	)		5.6	%
Net flows	$	0.572		$	0.648		$	0.658		$	0.626		$	0.629			10.0	%

Gross fixed portion of variable contract account values	$	3.304		$	3.286		$	3.366		$	3.320		$	3.307			0.1	%
Reinsurance ceded		-			-			-			(0.001	)		(0.001	)	NM
Net fixed portion of variable contract account values	$	3.304		$	3.286		$	3.366		$	3.319		$	3.306			0.1	%


Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	2.184		$	2.356		$	2.155		$	2.028		$	2.185			0.0	%
Withdrawals and deaths		(1.732	)		(1.790	)		(1.538	)		(1.555	)		(1.722	)		0.6	%
Net flows	$	0.452		$	0.566		$	0.617		$	0.473		$	0.463			2.4	%

Variable Contract Account Values	$	71.091		$	71.837		$	64.140		$	68.329		$	74.366			4.6	%

Average Daily Variable Annuity Separate Account Values	$	66.459		$	68.262		$	65.169		$	64.173		$	69.003			3.8	%

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

3/31/2012																PAGE 17
Annuities
Interest Rate Spread Information, GLB Expense Assessments,
GLB Attributed Fee and GLB Account Values by Type
Unaudited (in billions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change
																(Basis Point)
Interest Rate Spread (1)																Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses		5.27	%		5.19	%		5.08	%		4.98	%		4.93	%		(34	)
Commercial mortgage loan prepayment and bond make whole premiums		0.26	%		0.11	%		0.12	%		0.09	%		0.04	%		(22	)
Alternative investments		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%		(1	)
Net investment income yield on reserves		5.54	%		5.30	%		5.20	%		5.07	%		4.97	%		(57	)
Interest rate credited to contract holders		3.31	%		3.38	%		3.33	%		3.26	%		3.15	%		(16	)
Interest rate spread		2.23	%		1.92	%		1.87	%		1.81	%		1.82	%		(41	)

Variable Annuity Expense Assessments (in millions) (2)	$	365.7		$	380.8		$	381.3		$	367.8		$	399.8			9.3	%

GLB Expense Assessments (in millions) (3)	$	81.7		$	86.8		$	91.0		$	94.2		$	99.8			22.2	%

Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenues and income from operations (4)	$	28.1		$	29.4		$	30.6		$	31.2		$	32.8			16.7	%
Attributed fee excluded from operating revenues and income from operations (5)		38.3			40.1			42.0			43.9			47.8			24.8	%
Total Attributed Fees on GLB	$	66.4		$	69.5		$	72.6		$	75.1		$	80.6			21.4	%

GLB Account Values by Type
Guaranteed withdrawal benefits (6)	$	31.920		$	32.606		$	29.554		$	31.786		$	34.895			9.3	%
Guaranteed income benefits (7)		12.131			12.605			11.513			12.450			13.752			13.4	%
Total GLB Account Values	$	44.051		$	45.211		$	41.067		$	44.237		$	48.647			10.4	%

(1)	For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average invested assets on reserves. We exclude net investment income
	earned on investments supporting statutory surplus, reverse repurchase agreement interest expense and inter-segment cash management account interest expense from our yield and spread calculations. The average crediting
	rate is calculated using interest credited before DSI amortization, plus the immediate annuity reserve change (included within benefits), divided by average fixed account values net of co-insured account values. Fixed account
	values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.
(2)	Comprised of the variable annuity expense assessments included in the expense assessments line item on page 13 and the amounts presented in the components of attributed fees on GLB, as described in note (4) and note (5) and disclosed above.
(3)	Comprised of the GLB expense assessments included in the expense assessments line item on page 13 and the amounts presented in the components of attributed fees on GLB, as described in note (4) and note (5) and disclosed above.
(4)	Includes the risk/profit margin portion of the GLB attributed rider fees in operating realized gain (loss) and the amount reported in expense assessments. See note (2) on page 6 for further discussion.
(5)	Includes the net valuation premium of the GLB attributed rider fees in excluded realized gain (loss). See note (6) on page 6 for further discussion.
(6)	Guaranteed withdrawal benefits include features that offer the contract holder a guarantee equal to the initial deposit (or contract value, if elected after issue), adjusted for any subsequent purchase payments or withdrawals.
(7)	For our guaranteed income benefits, we offer other product riders allowing variable annuity contract holders access and control during the income distribution phase of their contract. This added flexibility allows the contract holdervalue for transfers,
	to access the account additional withdrawals and other service features, such as portfolio rebalancing.

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

3/31/2012																	PAGE 18
Retirement Plan Services
Income (Loss) from Operations, Operational Data and DAC, VOBA and DSI Roll Forwards
Unaudited (in millions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Operating Revenues
Surrender charges		$	0.7		$	0.7		$	0.5		$	0.4		$	0.4			-42.9	%
Expense assessments			53.9			54.7			50.5			48.7			51.3			-4.8	%
Net investment income			204.9			199.9			193.3			194.1			197.0			-3.9	%
Operating realized gain (loss) (1)			0.1			0.1			0.1			0.1			0.1			0.0	%
Other revenues and fees (2)			3.7			4.3			3.4			3.0			3.3			-10.8	%
Total Operating Revenues			263.3			259.7			247.8			246.3			252.1			-4.3	%
Operating Expenses
Interest credited			108.3			108.6			109.5			111.0			110.7			2.2	%
Benefits			-			-			1.6			-			0.1		NM
Underwriting, acquisition, insurance and other expenses			85.5			92.9			83.2			90.0			94.5			10.5	%
Total Operating Expenses			193.8			201.5			194.3			201.0			205.3			5.9	%
Income (loss) from operations before federal income taxes			69.5			58.2			53.5			45.3			46.8			-32.7	%
Federal income tax expense (benefit)			21.3			16.8			14.3			12.0			12.2			-42.7	%
Income (Loss) from Operations		$	48.2		$	41.4		$	39.2		$	33.3		$	34.6			-28.2	%

Effective Tax Rate			30.6	%		28.9	%		26.7	%		26.5	%		26.1	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill		$	908.4		$	901.8		$	884.2		$	877.5		$	925.1
Average goodwill			20.2			20.2			20.2			20.2			20.2
Average equity, excluding goodwill		$	888.2		$	881.6		$	864.0		$	857.3		$	904.9
Return on Equity, Excluding AOCI
Including goodwill			21.2	%		18.4	%		17.7	%		15.2	%		15.0	%
Excluding goodwill			21.7	%		18.8	%		18.1	%		15.5	%		15.3	%

Income (Loss) from Operations - Basis Points on Average Account Values - Annualized			49			41			41			35			34			(15	)

Operating Realized Gain (Loss) (1)
GLB (3)		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%
Total Operating Realized Gain (Loss)		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions		$	17.0		$	16.9		$	15.9		$	17.5		$	17.8			4.7	%
General and administrative expenses			63.3			71.4			65.4			73.3			71.5			13.0	%
Taxes, licenses and fees			4.8			3.8			3.4			1.2			5.2			8.3	%
Total commissions and expenses incurred			85.1			92.1			84.7			92.0			94.5			11.0	%
Less: commissions and expenses capitalized			(8.4	)		(9.0	)		(8.3	)		(9.2	)		(9.6	)		-14.3	%
Amortization of DAC and VOBA, net of interest			8.8			9.8			6.8			7.2			9.6			9.1	%
Total Underwriting, Acquisition, Insurance and Other Expenses		$	85.5		$	92.9		$	83.2		$	90.0		$	94.5			10.5	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized (4)			64			71			68			76			70			6

DAC and VOBA
Balance as of beginning-of-period		$	195.3		$	230.5		$	217.2		$	189.0		$	183.1
Deferrals			8.4			9.0			8.3			9.2			9.6
Amortization, net of interest			(8.8	)		(9.8	)		(6.8	)		(7.2	)		(9.6	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses			(0.4	)		(0.8	)		1.5			2.0			-
Amortization, net of interest, associated with benefitratio unlocking			-			-			0.1			(0.2	)		-
Adjustment related to realized (gains) losses			-			(0.3	)		(0.3	)		0.1			0.1
Adjustment related to unrealized (gains) losses			35.6			(12.2	)		(29.5	)		(7.8	)		(18.2	)
Balance as of End-of-Period		$	230.5		$	217.2		$	189.0		$	183.1		$	165.0

DSI
Balance as of beginning-of-period		$	2.0		$	2.1		$	2.0		$	2.0		$	1.7
Amortization, net of interest			-			(0.1	)		0.1			(0.1	)		(0.1	)
Adjustment related to unrealized (gains) losses			0.1			-			(0.1	)		(0.2	)		-
Balance as of End-of-Period		$	2.1		$	2.0		$	2.0		$	1.7		$	1.6

(1)	Included in income (loss) from operations.
(2)	Other revenues and fees consist primarily of mutual fund account program fees for mid-to-large employers.
(3)	See note (2) on page 6 for details.
(4)	Includes distribution costs.

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

3/31/2012																	PAGE 19
Retirement Plan Services
Account Value Roll Forwards and Information
Unaudited (in billions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Fixed Annuities (1)
Balance as of beginning-of-period		$	12.779		$	12.956		$	13.025		$	13.395		$	13.630			6.7	%
Gross deposits			0.346			0.318			0.378			0.394			0.370			6.9	%
Withdrawals and deaths			(0.336	)		(0.437	)		(0.356	)		(0.413	)		(0.405	)		-20.5	%
Net flows			0.010			(0.119	)		0.022			(0.019	)		(0.035	)	NM
Transfers from variable annuities			0.060			0.080			0.237			0.142			0.115			91.7	%
Interest credited			0.107			0.108			0.111			0.112			0.110			2.8	%
Balance as of End-of-Period		$	12.956		$	13.025		$	13.395		$	13.630		$	13.820			6.7	%

Variable Annuities (2)
Balance as of beginning-of-period		$	13.927		$	14.400		$	14.254		$	12.122		$	12.867			-7.6	%
Gross deposits			0.415			0.393			0.391			0.416			0.468			12.8	%
Withdrawals and deaths			(0.587	)		(0.516	)		(0.511	)		(0.498	)		(0.572	)		2.6	%
Net flows			(0.172	)		(0.123	)		(0.120	)		(0.082	)		(0.104	)		39.5	%
Transfers to fixed annuities			(0.050	)		(0.040	)		(0.124	)		(0.069	)		(0.062	)		-24.0	%
Investment increase and change in market value			0.695			0.017			(1.888	)		0.896			1.258			81.0	%
Balance as of End-of-Period		$	14.400		$	14.254		$	12.122		$	12.867		$	13.959			-3.1	%

Total Annuities
Balance as of beginning-of-period		$	26.706		$	27.356		$	27.279		$	25.517		$	26.497			-0.8	%
Gross deposits			0.761			0.711			0.769			0.810			0.838			10.1	%
Withdrawals and deaths			(0.923	)		(0.953	)		(0.867	)		(0.911	)		(0.977	)		-5.9	%
Net flows			(0.162	)		(0.242	)		(0.098	)		(0.101	)		(0.139	)		14.2	%
Transfers between fixed and variable accounts			0.010			0.040			0.113			0.073			0.053		NM
Interest credited and change in market value			0.802			0.125			(1.777	)		1.008			1.368			70.6	%
Balance as of End-of-Period		$	27.356		$	27.279		$	25.517		$	26.497		$	27.779			1.5	%

Alliance and Smart Future Mutual Funds (3)
Balance as of beginning-of-period		$	12.118		$	12.952		$	13.008		$	11.503		$	12.636			4.3	%
Plan/participant rollovers			0.097			0.061			0.277			0.369			0.131			35.1	%
Additional contributions			0.483			0.427			0.410			0.391			0.542			12.2	%
Gross deposits			0.580			0.488			0.687			0.760			0.673			16.0	%
Withdrawals and deaths			(0.284	)		(0.424	)		(0.260	)		(0.440	)		(0.322	)		-13.4	%
Net flows			0.296			0.064			0.427			0.320			0.351			18.6	%
Transfers			(0.037	)		(0.057	)		(0.132	)		(0.073	)		(0.066	)		-78.4	%
Interest credited and change in market value			0.575			0.049			(1.800	)		0.886			1.320			129.6	%
Balance as of End-of-Period		$	12.952		$	13.008		$	11.503		$	12.636		$	14.241			10.0	%

Total Annuities and Mutual Funds
Balance as of beginning-of-period		$	38.824		$	40.308		$	40.287		$	37.020		$	39.133			0.8	%
Gross deposits			1.341			1.199			1.456			1.570			1.511			12.7	%
Withdrawals and deaths			(1.207	)		(1.377	)		(1.127	)		(1.351	)		(1.299	)		-7.6	%
Net flows			0.134			(0.178	)		0.329			0.219			0.212			58.2	%
Transfers			(0.027	)		(0.017	)		(0.019	)		-			(0.013	)		51.9	%
Interest credited and change in market value			1.377			0.174			(3.577	)		1.894			2.688			95.2	%
Balance as of End-of-Period		$	40.308		$	40.287		$	37.020		$	39.133		$	42.020			4.2	%

Variable Annuities Under Agreement - Included Above		$	0.010		$	0.010		$	0.008		$	0.009		$	0.009			-10.0	%

(1)	Includes fixed annuity products offered under our mutual fund products and the fixed portion of variable annuities.
(2)	Excludes the fixed portion of variable annuities.
(3)	Includes mutual fund account values and other third party trustee-held assets. These items are not included in the separate accounts
	reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.

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

3/31/2012																	PAGE 20
Retirement Plan Services
Account Value Roll Forwards by Product
Unaudited (in billions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Total Micro - Small Segment
Balance as of beginning-of-period		$	6.396		$	6.594		$	6.566		$	5.856		$	6.167			-3.6	%
Gross deposits			0.326			0.315			0.312			0.354			0.418			28.2	%
Withdrawals and deaths			(0.384	)		(0.325	)		(0.336	)		(0.357	)		(0.412	)		-7.3	%
Net flows			(0.058	)		(0.010	)		(0.024	)		(0.003	)		0.006			110.3	%
Transfers between fixed and variable accounts			(0.006	)		-			-			0.011			(0.011	)		-83.3	%
Investment increase and change in market value			0.262			(0.018	)		(0.686	)		0.303			0.479			82.8	%
Balance as of End-of-Period		$	6.594		$	6.566		$	5.856		$	6.167		$	6.641			0.7	%

Total Mid - Large Segment
Balance as of beginning-of-period		$	16.207		$	17.224		$	17.333		$	16.106		$	17.435			7.6	%
Gross deposits			0.831			0.704			0.969			1.053			0.920			10.7	%
Withdrawals and deaths			(0.398	)		(0.657	)		(0.408	)		(0.632	)		(0.505	)		-26.9	%
Net flows			0.433			0.047			0.561			0.421			0.415			-4.2	%
Transfers between fixed and variable accounts			(0.021	)		(0.017	)		(0.019	)		(0.011	)		(0.002	)		90.5	%
Investment increase and change in market value			0.605			0.079			(1.769	)		0.919			1.351			123.3	%
Balance as of End-of-Period		$	17.224		$	17.333		$	16.106		$	17.435		$	19.199			11.5	%

Total Multi-Fund® and Other Variable Annuities
Balance as of beginning-of-period		$	16.221		$	16.490		$	16.388		$	15.058		$	15.531			-4.3	%
Gross deposits			0.184			0.180			0.175			0.163			0.173			-6.0	%
Withdrawals and deaths			(0.425	)		(0.395	)		(0.383	)		(0.362	)		(0.382	)		10.1	%
Net flows			(0.241	)		(0.215	)		(0.208	)		(0.199	)		(0.209	)		13.3	%
Investment increase and change in market value			0.510			0.113			(1.122	)		0.672			0.858			68.2	%
Balance as of End-of-Period		$	16.490		$	16.388		$	15.058		$	15.531		$	16.180			-1.9	%

Total Annuities and Mutual Funds (1)
Balance as of beginning-of-period		$	38.824		$	40.308		$	40.287		$	37.020		$	39.133			0.8	%
Gross deposits			1.341			1.199			1.456			1.570			1.511			12.7	%
Withdrawals and deaths			(1.207	)		(1.377	)		(1.127	)		(1.351	)		(1.299	)		-7.6	%
Net flows			0.134			(0.178	)		0.329			0.219			0.212			58.2	%
Transfers between fixed and variable accounts			(0.027	)		(0.017	)		(0.019	)		-			(0.013	)		51.9	%
Investment increase and change in market value			1.377			0.174			(3.577	)		1.894			2.688			95.2	%
Balance as of End-of-Period		$	40.308		$	40.287		$	37.020		$	39.133		$	42.020			4.2	%

(1)	Includes mutual fund account values and other third party trustee-held assets. These items are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.

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

3/31/2012																	PAGE 21
Retirement Plan Services
Account Value and Interest Rate Spread Information
Unaudited (in billions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits		$	0.269		$	0.233		$	0.301		$	0.314		$	0.273			1.5	%
Withdrawals and deaths			(0.160	)		(0.285	)		(0.194	)		(0.251	)		(0.228	)		-42.5	%
Net flows		$	0.109		$	(0.052	)	$	0.107		$	0.063		$	0.045			-58.7	%

Fixed Contract Account Values		$	6.807		$	6.847		$	7.122		$	7.301		$	7.465			9.7	%

Fixed Portion of Variable Contracts
Deposits		$	0.077		$	0.085		$	0.077		$	0.080		$	0.097			26.0	%
Withdrawals and deaths			(0.176	)		(0.152	)		(0.162	)		(0.162	)		(0.177	)		-0.6	%
Net flows		$	(0.099	)	$	(0.067	)	$	(0.085	)	$	(0.082	)	$	(0.080	)		19.2	%

Fixed Portion of Variable Contract Account Values		$	6.149		$	6.178		$	6.273		$	6.329		$	6.355			3.4	%

Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits		$	0.492		$	0.478		$	0.468		$	0.496		$	0.565			14.8	%
Withdrawals and deaths			(0.763	)		(0.668	)		(0.673	)		(0.660	)		(0.749	)		1.8	%
Net flows		$	(0.271	)	$	(0.190	)	$	(0.205	)	$	(0.164	)	$	(0.184	)		32.1	%

Variable Contract Account Values		$	20.549		$	20.432		$	18.395		$	19.196		$	20.314			-1.1	%

Average Daily Variable Annuity Separate Account Values		$	14.178		$	14.284		$	13.217		$	12.783		$	13.589			-4.2	%

																	(Basis Point)
Interest Rate Spread (1)																	Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses			5.61	%		5.55	%		5.53	%		5.40	%		5.34	%		(27	)

Commercial mortgage loan prepayment and bond make whole premiums			0.35	%		0.23	%		0.04	%		0.05	%		0.04	%		(31	)
Alternative investments			0.03	%		0.01	%		0.00	%		0.01	%		0.01	%		(2	)
Net investment income yield on reserves			5.99	%		5.79	%		5.57	%		5.46	%		5.39	%		(60	)
Interest rate credited to contract holders			3.36	%		3.34	%		3.31	%		3.28	%		3.22	%		(14	)
Interest rate spread			2.63	%		2.45	%		2.26	%		2.18	%		2.17	%		(46	)

(1)	For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average invested assets on reserves. We exclude net investment income
	earned on investments supporting statutory surplus from our spread calculations. The average crediting rate is calculated as interest credited before DSI amortization, plus the immediate annuity reserve change (included within benefits),
	divided by the average fixed account values, including the fixed portion of variable annuities.

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

3/31/2012																PAGE 22
Life Insurance
Income (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards
Unaudited (in millions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change
Operating Revenues
Insurance premiums	$	108.1		$	112.0		$	104.0		$	117.1		$	108.6			0.5	%
Surrender charges		23.0			29.6			20.9			22.9			23.2			0.9	%
Mortality assessments		324.7			326.7			335.0			325.1			336.8			3.7	%
Expense assessments		104.7			166.7			142.2			157.1			168.6			61.0	%
Net investment income		579.1			588.0			568.7			558.1			588.3			1.6	%
Other revenues and fees		7.5			6.0			5.5			6.7			7.1			-5.3	%
Total Operating Revenues		1,147.1			1,229.0			1,176.3			1,187.0			1,232.6			7.5	%
Operating Expenses
Interest credited		302.2			307.5			311.9			313.6			311.2			3.0	%
Benefits		447.2			609.4			152.5			460.1			474.5			6.1	%
Underwriting, acquisition, insurance and other expenses		187.2			110.6			492.7			209.1			239.1			27.7	%
Total Operating Expenses		936.6			1,027.5			957.1			982.8			1,024.8			9.4	%
Income (loss) from operations before federal income taxes		210.5			201.5			219.2			204.2			207.8			-1.3	%
Federal income tax expense (benefit)		68.1			65.1			65.4			66.0			65.5			-3.8	%
Income (Loss) from Operations	$	142.4		$	136.4		$	153.8		$	138.2		$	142.3			-0.1	%

Effective Tax Rate		32.4	%		32.3	%		29.8	%		32.3	%		31.5	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	7,751.4		$	7,850.5		$	7,848.9		$	7,491.4		$	7,248.8
Average goodwill		2,188.5			2,188.5			2,188.5			1,863.5			1,538.5
Average equity, excluding goodwill	$	5,562.9		$	5,662.0		$	5,660.4		$	5,627.9		$	5,710.3
Return on Equity, Excluding AOCI
Including goodwill		7.3	%		6.9	%		7.8	%		7.4	%		7.9	%
Excluding goodwill		10.2	%		9.6	%		10.9	%		9.8	%		10.0	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	172.8		$	166.3		$	160.8		$	178.7		$	129.6			-25.0	%
General and administrative expenses		112.7			114.2			116.3			130.2			123.4			9.5	%
Expenses associated with reserve financing		13.8			14.4			13.9			15.3			15.9			15.2	%
Taxes, licenses and fees		36.1			34.0			39.7			33.9			34.5			-4.4	%
Amortization of sales force intangibles		1.0			1.0			1.0			1.0			1.0			0.0	%
Total commissions and expenses incurred		336.4			329.9			331.7			359.1			304.4			-9.5	%
Less: commissions and expenses capitalized		(194.0	)		(192.2	)		(183.2	)		(211.0	)		(145.4	)		25.1	%
Amortization of DAC and VOBA, net of interest		44.8			(27.1	)		344.2			61.0			80.1			78.8	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	187.2		$	110.6		$	492.7		$	209.1		$	239.1			27.7	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized		133			133			135			149			138			5

DAC and VOBA
Balance as of beginning-of-period	$	5,186.0		$	5,365.1		$	5,417.4		$	4,484.0		$	4,515.6
Business acquired through reinsurance		-			-			1.7			10.6			-
Deferrals		194.0			192.2			183.2			211.0			145.4
Amortization, net of interest		(44.8	)		(27.1	)		(334.2	)		(61.0	)		(80.1	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		149.2			219.3			(161.0	)		150.0			65.3
Adjustment related to realized (gains) losses		(14.8	)		(9.3	)		2.9			(0.7	)		1.4
Adjustment related to unrealized (gains) losses		44.7			(157.7	)		(777.0	)		(128.3	)		3.8
Balance as of End-of-Period	$	5,365.1		$	5,417.4		$	4,484.0		$	4,515.6		$	4,585.9

DFEL
Balance as of beginning-of-period	$	1,279.9		$	1,405.6		$	1,446.9		$	1,088.4		$	1,105.7
Deferrals		125.9			115.7			118.7			122.3			83.3
Amortization, net of interest		0.4			(49.4	)		(31.1	)		(39.3	)		(44.7	)
Deferrals, net of amortization included in operating expense assessments		126.3			66.3			87.6			83.0			38.6
Adjustment related to realized (gains) losses		(2.0	)		(1.4	)		0.5			(0.2	)		0.2
Adjustment related to unrealized (gains) losses		1.4			(23.6	)		(446.6	)		(65.5	)		(8.0	)
Balance as of End-of-Period	$	1,405.6		$	1,446.9		$	1,088.4		$	1,105.7		$	1,136.5

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

3/31/2012																PAGE 23
Life Insurance
Additional Operational Data
Unaudited (in billions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change
Sales by Product (in millions)
UL
Excluding MoneyGuard®	$	84.9		$	82.9		$	74.2		$	74.9		$	47.0			-44.6	%
MoneyGuard®		34.3			38.5			48.0			65.4			40.8			19.0	%
Total		119.2			121.4			122.2			140.3			87.8			-26.3	%
VUL		10.0			11.4			12.8			16.2			9.6			-4.0	%
COLI and BOLI (1)		17.0			10.0			7.5			57.1			11.2			-34.1	%
Term		12.8			14.1			12.4			15.2			13.1			2.3	%
Total	$	159.0		$	156.9		$	154.9		$	228.8		$	121.7			-23.5	%

First Year Paid Premiums (in millions)
UL
Excluding MoneyGuard®	$	301.8		$	300.9		$	286.0		$	251.0		$	132.7			-56.0	%
MoneyGuard®		225.8			251.2			313.0			427.0			261.6			15.9	%
Total		527.6			552.1			599.0			678.0			394.3			-25.3	%
VUL		24.2			32.0			33.0			37.9			26.4			9.1	%
COLI and BOLI (1)		40.3			21.5			27.5			62.9			13.2			-67.2	%
Term		12.8			14.1			12.4			15.2			13.1			2.3	%
Total	$	604.9		$	619.7		$	671.9		$	794.0		$	447.0			-26.1	%

Life Insurance In Force
UL and other	$	299.920		$	302.205		$	304.475		$	307.900		$	307.957			2.7	%
Term insurance		266.764			268.520			269.969			271.931			272.006			2.0	%
Total	$	566.684		$	570.725		$	574.444		$	579.831		$	579.963			2.3	%

																(Basis Point)
Interest-Sensitive Products Interest Rate Spreads(2)																Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (3)		5.91	%		5.82	%		5.74	%		5.71	%		5.77	%		(14	)
Commercial mortgage loan prepayment and bond make-whole premiums		0.04	%		0.14	%		0.06	%		0.03	%		0.02	%		(2	)
Alternative investments		0.32	%		0.29	%		0.16	%		0.00	%		0.17	%		(15	)
Net investment income yield on reserves		6.27	%		6.25	%		5.96	%		5.74	%		5.96	%		(31	)
Interest rate credited to contract holders		4.09	%		4.09	%		4.10	%		4.05	%		3.95	%		(14	)
Interest rate spread		2.18	%		2.16	%		1.86	%		1.69	%		2.01	%		(17	)

Traditional Products Interest Rate Spreads(4)

Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses		5.89	%		6.00	%		5.90	%		5.81	%		5.73	%		(16	)
Commercial mortgage loan prepayment and bond make-whole premiums		0.10	%		0.00	%		0.03	%		0.01	%		0.00	%		(10	)
Alternative investments		0.02	%		0.00	%		0.00	%		0.01	%		0.01	%		(1	)
Net investment income yield on reserves		6.01	%		6.00	%		5.93	%		5.83	%		5.74	%		(27	)

(1)	COLI and BOLI are interest-sensitive and contain both UL and VUL products.
(2)	For the interest-sensitive life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets.
	We exclude net investment income earned on investments supporting statutory surplus and reverse repurchase agreement interest expense from our yield and spread calculations. The average
	crediting rate is calculated using interest credited on life products divided by average fixed account values.
(3)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets. The increased
	cash and short-term investment balances for the three months ended March 31, 2011 reduced our yields by approximately 2 bps.There was no impact for the three months ended June 30, 2011,
	September 30, 2011, December 31, 2011 and March 31,2012.
(4)	For the traditional life products, the yield on earning assets is calculated as net investment income on traditional investment portfolios divided by average earning assets. As of March 31, 2012,
	interest-sensitive products represented approximately 89% of total interest-sensitive and traditional earning assets.

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

3/31/2012																	PAGE 24
Life Insurance
Account Value Roll Forwards
Unaudited (in billions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Interest-Sensitive Life (1)
Balance as of beginning-of-period		$	29.365		$	29.739		$	30.148		$	30.638		$	31.219			6.3	%
Deposits			1.085			1.126			1.165			1.297			0.991			-8.7	%
Withdrawals and deaths			(0.295	)		(0.296	)		(0.232	)		(0.268	)		(0.307	)		-4.1	%
Net flows			0.790			0.830			0.933			1.029			0.684			-13.4	%
Contract holder assessments			(0.715	)		(0.724	)		(0.726	)		(0.751	)		(0.710	)		0.7	%
Interest credited			0.299			0.303			0.283			0.303			0.301			0.7	%
Balance as of End-of-Period (Gross)			29.739			30.148			30.638			31.219			31.494			5.9	%
Reinsurance ceded			(0.885	)		(0.881	)		(0.877	)		(0.870	)		(0.862	)		2.6	%
Balance as of End-of-Period (Net of Ceded)		$	28.854		$	29.267		$	29.761		$	30.349		$	30.632			6.2	%

VUL
Balance as of beginning-of-period		$	5.962		$	6.171		$	6.157		$	5.375		$	5.687			-4.6	%
Deposits			0.185			0.148			0.178			0.209			0.168			-9.2	%
Withdrawals and deaths			(0.154	)		(0.110	)		(0.148	)		(0.207	)		(0.101	)		34.4	%
Net flows			0.031			0.038			0.030			0.002			0.067			116.1	%
Contract holder assessments			(0.092	)		(0.091	)		(0.093	)		(0.093	)		(0.095	)		-3.3	%
Investment income and change in market value			0.270			0.039			(0.719	)		0.403			0.543			101.1	%
Balance as of End-of-Period (Gross)			6.171			6.157			5.375			5.687			6.202			0.5	%
Reinsurance ceded			(0.876	)		(0.857	)		(0.717	)		(0.758	)		(0.826	)		5.7	%
Balance as of End-of-Period (Net of Ceded)		$	5.295		$	5.300		$	4.658		$	4.929		$	5.376			1.5	%

Total Life Insurance
Balance as of beginning-of-period		$	35.327		$	35.910		$	36.305		$	36.013		$	36.906			4.5	%
Deposits			1.270			1.274			1.343			1.506			1.159			-8.7	%
Withdrawals and deaths			(0.449	)		(0.406	)		(0.380	)		(0.475	)		(0.408	)		9.1	%
Net flows			0.821			0.868			0.963			1.031			0.751			-8.5	%
Contract holder assessments			(0.807	)		(0.815	)		(0.819	)		(0.844	)		(0.805	)		0.2	%
Investment income and change in market value			0.569			0.342			(0.436	)		0.706			0.844			48.3	%
Balance as of End-of-Period (Gross)			35.910			36.305			36.013			36.906			37.696			5.0	%
Reinsurance ceded			(1.761	)		(1.738	)		(1.594	)		(1.628	)		(1.688	)		4.1	%
Balance as of End-of-Period (Net of Ceded)		$	34.149		$	34.567		$	34.419		$	35.278		$	36.008			5.4	%

(1)	Includes UL, interest-sensitive whole life and the fixed investment option of VUL products.

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

3/31/2012				PAGE 25
Group Protection
Income (Loss) from Operations and Operational Data
Unaudited (in millions)

	For the Three Months Ended
	March			June			Sept.			Dec.			March			%
	2011			2011			2011			2011			2012			Change
Operating Revenues
Insurance premiums	$	436.6		$	460.2		$	439.7		$	441.8		$	463.0			6.0	%
Net investment income		39.1			38.5			37.8			36.7			38.4			-1.8	%
Other revenues and fees		2.2			1.9			1.9			2.5			2.2			0.0	%
Total Operating Revenues		477.9			500.6			479.4			481.0			503.6			5.4	%
Operating Expenses
Interest credited		0.9			0.8			0.8			0.9			0.8			-11.1	%
Benefits		326.7			345.1			319.3			322.8			349.9			7.1	%
Underwriting, acquisition, insurance and other expenses		113.1			115.3			118.0			125.8			128.0			13.2	%
Total Operating Expenses		440.7			461.2			438.1			449.5			478.7			8.6	%
Income (loss) from operations before federal income taxes		37.2			39.4			41.3			31.5			24.9			-33.1	%
Federal income tax expense (benefit)		13.1			13.8			14.5			11.0			8.8			-32.8	%
Income (Loss) from Operations	$	24.1		$	25.6		$	26.8		$	20.5		$	16.1			-33.2	%

Effective Tax Rate		35.2	%		35.0	%		35.1	%		34.9	%		35.3	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	1,161.9		$	1,152.4		$	1,149.4		$	1,162.8		$	1,180.2
Average goodwill		274.3			274.3			274.3			274.3			274.3
Average equity, excluding goodwill	$	887.6		$	878.1		$	875.1		$	888.5		$	905.9
Return on Equity, Excluding AOCI
Including goodwill		8.3	%		8.9	%		9.3	%		7.1	%		5.5	%
Excluding goodwill		10.9	%		11.7	%		12.3	%		9.2	%		7.1	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	50.3		$	49.3		$	50.0		$	51.3		$	54.0			7.4	%
General and administrative expenses		51.4			56.4			60.1			75.6			61.4			19.5	%
Taxes, licenses and fees		10.7			10.1			11.7			9.1			11.6			8.4	%
Total commissions and expenses incurred		112.4			115.8			121.8			136.0			127.0			13.0	%
Less: commissions and expenses capitalized		(8.9	)		(9.8	)		(12.7	)		(21.3	)		(10.9	)		-22.5	%
Amortization of DAC and VOBA, net of interest		9.6			9.3			8.9			11.1			11.9			24.0	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	113.1		$	115.3		$	118.0		$	125.8		$	128.0			13.2	%

General and Administrative Expenses as a Percentage of Premiums		11.8	%		12.3	%		13.7	%		17.1	%		13.3	%

DAC and VOBA
Balance as of beginning-of-period	$	151.2		$	150.5		$	151.0		$	154.8		$	165.0
Deferrals		8.9			9.8			12.7			21.3			10.9
Amortization, net of interest		(9.6	)		(9.3	)		(8.9	)		(11.1	)		(11.9	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		(0.7	)		0.5			3.8			10.2			(1.0	)
Balance as of End-of-Period	$	150.5		$	151.0		$	154.8		$	165.0		$	164.0

Annualized Sales by Product Line
Life	$	17.4		$	23.6		$	30.8		$	89.6		$	28.2			62.1	%
Disability		18.0			30.7			34.3			92.8			28.2			56.7	%
Dental		10.0			12.8			9.6			25.0			10.2			2.0	%
Total	$	45.4		$	67.1		$	74.7		$	207.4		$	66.6			46.7	%

Insurance Premiums by Product Line
Life	$	170.4		$	173.6		$	173.5		$	175.5		$	185.9			9.1	%
Disability		186.2			189.8			190.5			190.7			198.8			6.8	%
Dental		46.1			45.3			45.9			46.2			45.8			-0.7	%
Other		33.9			51.5			29.8			29.4			32.5			-4.1	%
Total	$	436.6		$	460.2		$	439.7		$	441.8		$	463.0			6.0	%

Income (Loss) from Operations by Product Line
Life	$	8.1		$	8.8		$	11.0		$	4.3		$	2.4			-70.4	%
Disability		16.5			16.9			14.6			13.6			14.0			-15.2	%
Dental		(1.9	)		(1.4	)		0.1			1.6			(1.5	)		21.1	%
Other		1.4			1.3			1.1			1.0			1.2			-14.3	%
Total	$	24.1		$	25.6		$	26.8		$	20.5		$	16.1			-33.2	%

Loss Ratios by Product Line
Life		75.9	%		76.1	%		72.1	%		75.1	%		78.2	%
Disability		70.1	%		69.4	%		70.4	%		69.6	%		70.1	%
Dental		83.7	%		79.9	%		76.2	%		71.6	%		82.1	%
Combined Loss Ratios		74.1	%		73.4	%		71.8	%		72.2	%		74.9	%

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

3/31/2012																	PAGE 26
Other Operations
Unaudited (in millions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Operating Revenues
Insurance premiums		$	0.1		$	-		$	0.8		$	-		$	0.1			0.0	%
Net investment income			80.1			76.4			79.9			70.7			69.8			-12.9	%
Amortization of deferred gain on business sold through reinsurance (1)			18.0			18.0			18.1			18.0			18.0			0.0	%
Other revenues and fees			1.7			1.5			1.4			(0.7	)		1.2			-29.4	%
Media revenues			16.5			19.4			19.9			21.3			17.4			5.5	%
Total Operating Revenues			116.4			115.3			120.1			109.3			106.5			-8.5	%
Operating Expenses
Interest credited			28.8			29.8			26.5			28.5			31.1			8.0	%
Benefits			32.5			29.1			33.7			31.1			27.7			-14.8	%
Underwriting, acquisition, insurance and other expenses			27.6			8.4			21.6			14.7			22.7			-17.8	%
Inter-segment reimbursement associated with reserve
financing and LOC expenses (2)			(2.0	)		(2.3	)		(2.4	)		(2.5	)		(2.8	)		-40.0	%
Taxes, licenses and fees			0.7			(3.3	)		13.7			15.5			1.3			85.7	%
Interest and debt expenses			71.6			72.0			71.0			70.5			67.5			-5.7	%
Media expenses			16.7			16.8			17.3			18.3			16.1			-3.6	%
Total Operating Expenses			175.9			150.5			181.4			176.1			163.6			-7.0	%
Income (Loss) from operations before federal income taxes			(59.5	)		(35.2	)		(61.3	)		(66.8	)		(57.1	)		4.0	%
Federal income tax expense (benefit)			(22.5	)		(13.0	)		(17.1	)		(24.0	)		(23.2	)		-3.1	%
Income (Loss) From Operations		$	(37.0	)	$	(22.2	)	$	(44.2	)	$	(42.8	)	$	(33.9	)		8.4	%

Run Off Institutional Pensions Account Values - Balance at End-of-Period		$	1.867		$	1.845		$	1.822		$	1.809		$	1.808			-3.2	%

Discontinued Operations
Unaudited (in millions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change

Discontinued Operations Before Disposal
Income (loss) from discontinued operations before federal income taxes		$	-		$	-		$	-		$	-		$	-		NM
Federal income tax expense (benefit)			-			-			-			-			-		NM
Income (Loss) From Discontinued Operations Before Disposal			-			-			-			-			-		NM
Disposal
Gain (loss) on disposal before federal income taxes			-			-			(2.9	)		-			(1.3	)	NM
Federal income tax expense (benefit)			-			-			5.5			-			(0.5	)	NM
Gain (Loss) on Disposal			-			-			(8.4	)		-			(0.8	)	NM
Income (Loss) From Discontinued Operations		$	-		$	-		$	(8.4	)	$	-		$	(0.8	)	NM


(1)	Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.
(2)	Represents reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations
	for its use of LOCs. The inter-segment amounts are not reported on our Consolidated Statements of Income (Loss).

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

3/31/2012																	PAGE 27
Consolidated Deposits, Net Flows and Account Balances
Unaudited (in billions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Deposits
Annuities - fixed annuities (1)		$	1.116		$	1.307		$	1.294		$	1.062		$	1.008			-9.7	%
Retirement Plan Services - fixed annuities			0.346			0.318			0.378			0.394			0.370			6.9	%
Annuities - variable annuities			1.523			1.620			1.415			1.313			1.472			-3.3	%
Retirement Plan Services - variable products (2)			0.995			0.881			1.078			1.176			1.141			14.7	%
Life Insurance:
Interest-Sensitive Life			1.085			1.126			1.165			1.297			0.991			-8.7	%
VUL			0.185			0.148			0.178			0.209			0.168			-9.2	%
Total Deposits		$	5.250		$	5.400		$	5.508		$	5.451		$	5.150			-1.9	%

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Net Flows
Annuities - fixed annuities (1)		$	0.603		$	0.782		$	0.704		$	0.498		$	0.459			-23.9	%
Retirement Plan Services - fixed annuities			0.010			(0.119	)		0.022			(0.019	)		(0.035	)	NM
Annuities - variable annuities			(0.120	)		(0.082	)		(0.041	)		(0.153	)		(0.166	)		-38.3	%
Retirement Plan Services - variable products (2)			0.124			(0.059	)		0.307			0.238			0.247			99.2	%
Life Insurance:
Interest-Sensitive Life			0.790			0.830			0.933			1.029			0.684			-13.4	%
VUL			0.031			0.038			0.030			0.002			0.067			116.1	%
Total Net Flows		$	1.438		$	1.390		$	1.955		$	1.595		$	1.256			-12.7	%

		As of
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Account Balances
Annuities - fixed annuities (1)		$	19.998		$	20.289		$	20.455		$	20.524		$	20.609			3.1	%
Retirement Plan Services - fixed annuities			12.956			13.025			13.395			13.630			13.820			6.7	%
Annuities - variable annuities			67.787			68.551			60.774			65.010			71.059			4.8	%
Retirement Plan Services - variable products (2)			27.352			27.262			23.625			25.503			28.200			3.1	%
Life Insurance:
Interest-Sensitive Life			28.854			29.267			29.761			30.349			30.632			6.2	%
VUL			5.295			5.300			4.658			4.929			5.376			1.5	%
Total Account Balances		$	162.242		$	163.694		$	152.668		$	159.945		$	169.696			4.6	%

(1)	Includes fixed portion of variable annuities.
(2)	Includes amounts attributable to mutual fund net flows. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.

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

3/31/2012																	PAGE 28
Consolidated Investment Data
Unaudited (in millions)

		For the Three Months Ended
		March			June			Sept.			Dec.			March			%
		2011			2011			2011			2011			2012			Change
Net Investment Income
Available-for-sale fixed maturity securities		$	984.8		$	982.5		$	972.7		$	972.0		$	974.2			-1.1	%
Available-for-sale equity securities			1.2			1.1			1.2			1.7			1.4			16.7	%
Available-for-sale VIEs' fixed maturity securities			3.1			3.1			3.6			3.9			4.2			35.5	%
Trading securities			38.6			38.7			38.4			38.1			37.5			-2.8	%
Mortgage loans on real estate			104.1			106.1			106.9			103.2			101.7			-2.3	%
Real estate			7.7			5.5			5.0			4.4			4.5			-41.6	%
Policy loans			40.6			43.1			41.7			40.1			45.7			12.6	%
Invested cash			1.4			0.8			1.0			0.5			0.5			-64.3	%
Other investments			38.0			27.3			9.8			(9.0	)		22.4			-41.1	%
Investment income			1,219.5			1,208.2			1,180.3			1,154.9			1,192.1			-2.2	%
Investment expense			(28.3	)		(27.6	)		(29.6	)		(25.7	)		(26.3	)		7.1	%
Net Investment Income		$	1,191.2		$	1,180.6		$	1,150.7		$	1,129.2		$	1,165.8			-2.1	%

Average Invested Assets (Amortized Cost)		$	79,995.7		$	81,101.9		$	82,253.8		$	83,210.5		$	83,883.0

Net investment income yield on invested assets			5.96	%		5.82	%		5.60	%		5.43	%		5.56	%

Realized Gain (Loss) Related to Investments
Available-for-sale fixed maturity securities:
Gross gains		$	36.1		$	30.6		$	17.5		$	1.5		$	4.7			-87.0	%
Gross losses			(62.7	)		(50.8	)		(63.1	)		(50.4	)		(63.0	)		-0.5	%
Equity securities:
Gross gains			8.3			1.1			0.2			2.1			0.7			-91.6	%
Gross losses			(0.2	)		-			-			(0.1	)		(0.2	)		0.0	%
Gain (loss) on other investments			12.8			(8.2	)		(3.3	)		(9.9	)		7.1			-44.5	%
Associated amortization of DAC, VOBA, DSI, DFEL and changes in other contract holder funds and funds withheld reinsurance liabilities			(9.1	)		(5.3	)		4.5			(0.1	)		2.1			123.1	%
Total realized gain (loss) on investments, pre-tax			(14.8	)		(32.6	)		(44.2	)		(56.9	)		(48.6	)	NM
Federal income tax expense (benefit) (1)			(5.2	)		(11.4	)		(15.5	)		(19.9	)		(17.0	)	NM
Total, After-Tax		$	(9.6	)	$	(21.2	)	$	(28.7	)	$	(37.0	)	$	(31.6	)	NM

					As of December 31, 2011									As of March 31, 2012
					Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)					$	78,805.4			99.8	%				$	79,603.9			99.8	%
Fixed maturity securities (amortized cost)						71,959.8			99.8	%					72,858.8			99.8	%
Equity securities (fair value)						141.0			0.2	%					127.8			0.2	%
Equity securities (amortized cost)						136.9			0.2	%					115.2			0.2	%

% of Available-for-Sale Fixed Maturity Securities, Based on Amortized Cost
Investment grade									94.4	%								94.3	%
Below investment grade									5.6	%								5.7	%

General Account Investments at Amortized Cost					As of December 31, 2011									As of March 31, 2012
					Amount			% of Total						Amount			% of Total
Available-for-Sale Fixed Maturities Securities:
Corporate bonds					$	53,661.5			77.0	%				$	55,255.7			78.3	%
U.S. Government bonds						439.2			0.6	%					450.0			0.6	%
Foreign government bonds						667.7			1.0	%					584.9			0.8	%
Mortgage-backed securities						9,331.3			13.4	%					8,729.4			12.4	%
ABS CDOs						120.8			0.2	%					116.6			0.2	%
State and municipal bonds						3,490.0			5.0	%					3,496.7			4.9	%
Hybrid and redeemable preferred securities						1,277.2			1.8	%					1,256.2			1.8	%
VIEs' fixed maturity securities						673.3			1.0	%					674.3			1.0	%
Total					$	69,661.0			100.0	%				$	70,563.8			100.0	%


		As of
		March			June			Sept.			Dec.			March			%
Composition of Investment Portfolio		2011			2011			2011			2011			2012			Change
Available-for-sale securities, at fair value:
Fixed maturity		$	69,231.0		$	70,920.2		$	74,591.5		$	75,432.8		$	76,254.4			10.1	%
Equity			144.6			143.7			137.4			138.8			125.6			-13.1	%
VIEs' fixed maturity			586.8			592.6			699.5			700.1			701.9			19.6	%
Trading securities			2,598.0			2,624.7			2,726.2			2,674.7			2,649.7			2.0	%
Mortgage loans on real estate and real estate			6,937.6			7,020.4			7,029.1			7,079.4			7,050.2			1.6	%
Policy loans			2,837.1			2,877.1			2,873.5			2,884.6			2,841.8			0.2	%
Derivative investments			945.7			1,097.0			3,028.7			3,151.0			2,244.5			137.3	%
Other investments			1,029.4			1,002.3			1,104.7			1,068.6			1,043.6			1.4	%
Total		$	84,310.2		$	86,278.0		$	92,190.6		$	93,130.0		$	92,911.7			10.2	%

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

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

LINCOLN NATIONAL CORP - FORM 8-K - EX-99.2 - LINCOLN NATIONAL CORPORATION STATISTICAL SUPPLEMENT - May 2, 2012

Attached files