Lincoln Financial Group Reports Fourth Quarter and Full Year 2012 Results

  Lincoln Financial Group Reports Fourth Quarter and Full Year 2012 Results

Full Year Operating EPS of $4.47 up 13% from 2011

ROE of 12.0% on Full Year Income from Operations of $1.3 Billion

Book Value Per Share, excluding AOCI of $41.11 up 15%

PR Newswire

PHILADELPHIA, Feb. 6, 2013

PHILADELPHIA, Feb. 6, 2013 /PRNewswire/ --Lincoln Financial Group (NYSE:LNC)
today reported net income for the fourth quarter of 2012 of $320 million, or
$1.14 per diluted share, compared to a net loss in the fourth quarter of 2011
of $541 million, or $1.82 per diluted share. Fourth quarter income from
operations was $310 million, or $1.10 per diluted share, compared to $277
million, or $0.91 per diluted share, in the fourth quarter of 2011.

Net income for the full year of 2012 was $1.3 billion, or $4.56 per diluted
share, compared to $221 million, or $0.69 per diluted share available to
common stockholders, in 2011. For the full year 2012, income from operations
was $1.3 billion, or $4.47 per diluted share, compared to $1.2 billion, or
$3.94 per diluted share available to common stockholders, for the full year of
2011.

"The strength of our 2012 results reflected the benefits of ongoing
investments in our businesses, actions to respond to the low interest rate
environment and maintaining an active capital management program," said Dennis
R. Glass, president and CEO of Lincoln Financial Group. "We enhanced new
business profitability through product design and pricing changes, took
additional steps related to expenses and interest margins, and would expect
these changes to continue to benefit 2013 results."



                                     As of or For the      As of or For the
                                     Quarter Ended         Year Ended
(millions of dollars except per      2012        2011      2012    2011
share data)
Net Income (Loss)                    $      $     $    $     
                                     320         (541)    1,313  221
Net Income (Loss) Available to       320         (541)     1,313   216
Common Stockholders
Net Income (Loss) Per Diluted Share  1.14        (1.82)    4.56    0.69
Available to Common Stockholders
Revenues                             2,964       2,568     11,532  10,641
Income (Loss) from Operations        310         277       1,284   1,246
Income (Loss) from Operations Per
Diluted Share Available to Common    1.10        0.91      4.47    3.94
Stockholders
Average Diluted Shares               281.1       303.4     287.6   315.0
ROE (Income from Operations)         11.2%       10.3%     12.0%   11.3%
ROE (Net Income)                     11.6%       -20.0%    12.2%   2.0%
Book Value per Share, Including AOCI $        $      $    $   
                                     55.14      44.94    55.14  44.94
Book Value per Share, Excluding AOCI 41.11       35.75     41.11   35.75

4Q2012 Operating Highlights

  oConsolidated deposits of $6.9 billion up 27%
  oConsolidated net flows of $2.6 billion up 61%
  oConsolidated account balances of $178 billion up 11%
  oOperating revenues of $2.9 billion up 9%
  oAnnuities total deposits of $3.5 billion up 49%
  oRetirement Plan Services total deposits of $1.9 billion up 19%

Full Year 2012 Operating Highlights:

  oConsolidated deposits of $22.9 billion up 6%
  oConsolidated net flows of $6.7 billion up 6%
  oAnnuities total deposits of $11.6 billion up 9%
  oRetirement Plan Services total deposits of $6.4 billion up 15%
  oGroup Protection sales of $458 million up 16%
  oSales of variable universal, indexed universal and term life insurance of
    $273 million up 25%

The quarter's operating results included $0.03 of net favorable items
primarily related to taxes and better than expected investment income from
alternative investments and prepayment premiums, partially offset by higher
expenses.

Fourth Quarter 2012 – Segment Results

Annuities

The Annuities segment reported income from operations of $162 million in the
fourth quarter of 2012, up 24% from $131 million in the prior-year quarter.
Higher fee revenue, driven by a 15% increase in average separate account
values, contributed to the increase.

Sales and flows for the quarter and full year continued to reflect the
company's consistent approach to the marketplace with a focus on disciplined
product design, including select reductions to guaranteed withdrawal rates in
the fourth quarter.

Gross annuity deposits in the fourth quarter of $3.5 billion drove net flows
of $1.1 billion and a 13% increase in account values to $97 billion. Of the
$3.0 billion of variable annuity gross deposits in the quarter, over 75% of
the deposits were allocated to the Protected Strategies series of risk-managed
funds, which embed volatility management inside the client accounts,
benefiting the client and reducing hedging costs.

For the full year, gross annuity deposits of $11.6 billion, including $9.8
billion of variable annuity deposits, were up 9% over the prior year. Annuity
net flows were $2.5 billion, up 12% over the prior year.

The quarter included $8 million of net positive items, attributable primarily
to taxes.

Retirement Plan Services

Retirement Plan Services reported income from operations of $28 million
compared to $33 million in the prior-year quarter. The decrease was driven
primarily by higher expenses and lower net interest margins.

Ongoing investments in distribution and technology resulted in continued
expansion of the segment's market access and servicing capabilities with both
contributing to strong production results in the year.

Total deposits of $1.9 billion were up 19% versus the prior-year quarter
driven by strong first-year sales and renewal deposits across all markets
highlighted by record total deposits in the small-case market. Total net flows
in the current quarter were $348 million as compared to $219 million in the
prior-year quarter. For the full year, total deposits were up 15% to $6.4
billion, driving net flows of $987 million and contributing to a 12% increase
in account balances to $43.9 billion.

Earnings in the quarter included net negative items of $4 million primarily
attributable to expenses not expected to repeat.

Life Insurance

Life Insurance income from operations was $147 million compared to $135
million in the prior-year quarter.

Life insurance sales of $226 million decreased 1% over the prior-year quarter
and sales for the full year of $588 million fell 16% compared to 2011. Both
periods' results reflected a decline in guaranteed universal life and
MoneyGuard sales in response to price increases. As a result, sales of
guaranteed universal life accounted for just 15% of fourth quarter sales and
23% of full year sales. Strong sales in variable universal life (including
Executive Benefits), indexed universal life and term life insurance posted a
combined increase of 44% over the fourth quarter of last year and an increase
of 25% over the prior year.

Life insurance in-force of $591 billion grew 2% and average account values of
$37 billion increased 6% over the prior-year quarter.

The quarter included $9 million of net positive items primarily attributable
to net investment income and taxes.

Group Protection

For the fourth quarter, Group Protection income from operations was $13
million, compared to $20 million in the prior-year period. The non-medical
loss ratio of 74.7% in the current quarter increased from 72.2% in the fourth
quarter of 2011.

Earnings declined in the quarter as improvements in Group Life mortality, and
positive movement in pricing, were offset by higher long-term disability
claims and costs associated with investments in distribution and technology.
Earnings in 2013 are expected to improve from 2012 levels as pricing actions
gain traction, Group Life results normalize, and Disability loss ratios trend
down from the elevated levels experienced in the second half of the year.

Group Protection sales of $206 million for the quarter decreased 1% from the
same period last year. Non-medical net earned premiums were $462 million in
the fourth quarter, up 12% over the year-ago period. For the full year,
non-medical net earned premiums were $1.8 billion, up 9% and annualized sales
of $458 million increased 16% over 2011.

Other Operations

Other Operations reported a loss from operations of $40 million in the quarter
versus a loss of $42 million in the prior-year quarter. The quarter included
net unfavorable items of approximately $5 million primarily due to expenses
related to the restructuring announced in the third quarter of 2012, partially
offset by tax-related adjustments.

Additional Information

As of December 31, 2012, the Company completed a review of its tax balances
resulting in the identification of certain tax accounting errors that occurred
over a number of years. While the impact of these errors is not material in
any previously reported year, the adjustments to correct the cumulative effect
of these errors would be material if recorded in the consolidated statement of
operations for the twelve months ended December 31, 2012.

Accordingly, the Company has adjusted the 2011 and 2012 amounts presented in
this press release to correct these errors and will be restating its financial
statements for 2010, 2011 and the first three quarters of 2012 in its annual
report on Form 10-K for the year ended December 31, 2012. The correction of
the errors in these periods primarily relate to the accounting for affordable
housing tax credits. The changes to net income for 2010, 2011 and the nine
months ended September 30, 2012, are $(14) million, $(11) million and $21
million, respectively. In addition, the Company has restated the opening
retained earnings balance at January 1, 2010, by $(113) million to record the
cumulative effect of the errors for all periods prior to 2010. For additional
information refer to the Company's fourth quarter 2012 Statistical Supplement.

The current quarter included a $3 million increase in federal income tax
expense related to these corrections. This is representative of the impact on
earnings on a prospective basis, primarily in the Life Insurance segment.

Realized Gains and Losses

Realized gains/losses (after-tax) in the quarter included:

  oA net loss from general account investments of $2 million, as compared to
    a $28 million loss in the prior-year quarter
  oA $13 million variable annuity net derivatives gain

Unrealized Gains and Losses

The company reported a net unrealized gain of approximately $9.4 billion,
pre-tax, on its available-for-sale securities at December 31, 2012. This
compares to a net unrealized gain of approximately $6.5 billion at December
31, 2011.

Capital

During the quarter, the company repurchased 3.8 million shares of stock at a
cost of $92 million. As a result of cumulative 2012 share repurchases of $492
million, fourth quarter 2012 average diluted share count was down 7% from
fourth quarter 2011. In addition, the company raised the quarterly common
stock dividend 50% to $0.12 per share.

Book Value

As of December 31, 2012, book value per share of common stock, including
accumulated other comprehensive income ("AOCI"), increased 23% to $55.14 from
a year ago. Book value per share, excluding AOCI, was $41.11 up 15% from
$35.75 a year ago.

This press release may contain statements that are forward-looking, and actual
results may differ materially, especially given the current economic and
capital markets conditions. Please see the Forward Looking Statements –
Cautionary Language that follow for additional factors that may cause actual
results to differ materially from our current expectations.

The tables attached to this release define and reconcile income from
operations, return on equity ("ROE"), and book value per share excluding AOCI,
non-GAAP measures, to net income, ROE, and book value per share including AOCI
calculated in accordance with GAAP.

Lincoln Financial Group will discuss the company's fourth quarter results with
investors in a conference call beginning at 9:00 a.m. (ET) on Thursday,
February 7, 2013. Interested persons are invited to listen through the
internet. Please go to www.LincolnFinancial.com/webcast at least fifteen
minutes prior to the event to register, download and install any necessary
streaming media software. Interested persons may also listen to the call by
dialing the following numbers:

 Dial:     (877) 776-4049 (Domestic)
                      (914) 495-8602 (International)
 - Ask for the Lincoln National Conference Call.

The company will also post its fourth quarter 2012 statistical supplement on
its website, www.LincolnFinancial.com/earnings.

Lincoln Financial Group is the marketing name for Lincoln National Corporation
(NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region,
the companies of Lincoln Financial Group had assets under management of $178
billion as of December 31, 2012. Through its affiliated companies, Lincoln
Financial Group offers: annuities; life, group life, disability and dental
insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial
planning and advisory services. For more information, including a copy of our
most recent SEC reports containing our balance sheets, please visit
www.LincolnFinancial.com.

Definition of Income (Loss) from Operations, Operating Revenues and Return on
Equity
Income (loss) from operations, operating revenues and return on equity
("ROE"), as used in the earnings release, are non-GAAP financial measures and
do not replace GAAP revenues, net income (loss) and ROE. 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.

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.

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. Management believes that
these performance measures explain the results of the company's ongoing
businesses in a manner that allows for a better understanding of the
underlying trends in the company's current business 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.

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

Lincoln National Corporation
Reconciliation of Net Income to Income from Operations

(millions of dollars, except per share data)
                              For the Three Months        For the Year Ended
                              Ended
                              December 31,                December 31,
                              2012         2011 ^(1)      2012       2011 ^(1)
Total Revenues                $         $           $       $   
                              2,964       2,568         11,532     10,641
Less:
Excluded realized gain (loss) 17           (149)          (39)       (388)
Amortization of DFEL on       (1)          1              2          (1)
benefit ratio unlocking
Amortization of deferred
gains arising from reserve
changes on business sold      1            1              3          3
through reinsurance
Total Operating Revenues      $         $           $       $   
                              2,947       2,715         11,566     11,027
Net Income (Loss) Available
to Common
Stockholders - Diluted        $        $          $       $    
                               320        (541)         1,313      216
Less:
Adjustment for deferred units
of LNC stock in our
deferred compensation plans   -            -              -          (5)
^(2)
Net Income (Loss)             320          (541)          1,313      221
Less ^(3):
Excluded realized gain (loss) 11           (97)           (25)       (252)
Benefit ratio unlocking       2            25             25         (15)
Income (loss) from reserve
changes (net of related
amortization) on business     -            1              3          2
sold through reinsurance
Gain (loss) on early          (3)          -              (3)        (5)
extinguishment of debt
Impairment of intangibles     -            (747)          2          (747)
Income (loss) from            -            -              27         (8)
discontinued operations
Income (Loss) from Operations $        $         $       $   
                               310        277            1,284     1,246
Earnings (Loss) Per Common
Share (Diluted)
Income (loss) from operations $        $          $      $    
                              1.10        0.91          4.47      3.94
Net income (loss)             1.14         (1.82)         4.56       0.69
Average Stockholders' Equity
Average equity, including     $         $           $       $   
average AOCI                  15,048       13,475         14,080     12,649
Average AOCI                  3,979        2,671          3,348      1,632
Average equity, excluding     11,069       10,804         10,732     11,017
AOCI
Average goodwill              2,273        2,646          2,273      2,926
Average equity, excluding     $         $           $       $   
AOCI and goodwill             8,796       8,158         8,459     8,091
Return on Equity, Excluding
AOCI
Net income (loss) with
average equity including      11.6%        -20.0%         12.2%      2.0%
goodwill
Income (loss) from operations
with average equity
including goodwill            11.2%        10.3%          12.0%      11.3%
Income (loss) from operations
with average equity
excluding goodwill            14.1%        13.6%          15.2%      15.4%
^(1) As discussed in the "Additional Information" section, we have adjusted
certain prior-period amounts in this and all tables presented within this
press release.
^(2) 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.
^(3) We use our 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.

Definition of Book Value Per Share Excluding AOCI

Book value per share excluding AOCI is calculated based upon a non-GAAP
financial measure. It is calculated by dividing (a) stockholders' equity
excluding AOCI 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 primarily
attributable to our business operations. Management believes book value per
share excluding AOCI is useful to investors because it eliminates the effect
of items that can fluctuate significantly from period to period, primarily
based on changes in interest rates. Book value per share is the most directly
comparable GAAP measure. A reconciliation of book value per share to book
value per share excluding AOCI as of December 30, 2012 and 2011 is set forth
below.



                                     As of December 31,
                                     2012            2011
Book value per share, including AOCI $    55.14  $    44.94
Per share impact of AOCI             14.03           9.19
Book value per share, excluding AOCI 41.11           35.75



Lincoln National Corporation
Digest of Earnings

(millions of dollars, except per
share data)
                                     For the Three Months Ended
                                     December 31,
                                     2012                   2011
Revenues                             $    2,964         $    2,568
Net Income (Loss)                    $      320        $     (541)
Earnings (Loss) Per Common Share -   $     1.17        $     (1.82)
Basic
Earnings (Loss) Per Common Share -   1.14                   (1.82)
Diluted ^(1)
Average Shares - Basic               273,675,168            297,894,635
Average Shares - Diluted             281,137,972            303,354,826
                                     For the Year Ended
                                     December 31,
                                     2012                   2011
Revenues                             $    11,532         $    10,641
Net Income (Loss)                    $    1,313         $      221
Adjustment for deferred units of LNC
stock in our
deferred compensation plans ^(2)     -                      (5)
Net Income (Loss) Available to
Common
Stockholders - Diluted               $    1,313         $      216
Earnings (Loss) Per Common Share -   $     4.68        $     0.72
Basic
Earnings (Loss) Per Common Share -   4.56                   0.69
Diluted
Average Shares - Basic               280,648,391            307,216,181
Average Shares - Diluted             287,590,845            314,950,051
^(1) In those periods with a loss from continuing operations, shares used in
the earnings per share calculation represent basic shares, since using diluted
shares would have been anti-dilutive.
^(2) 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.

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

Forward-looking statements involve risks and uncertainties that may cause
actual results to differ materially from the results contained in the
forward-looking statements. Risks and uncertainties that may cause actual
results to vary materially, some of which are described within the
forward-looking statements include, among others:

  oDeterioration in general economic and business conditions that may affect
    account values, investment results, guaranteed benefit liabilities,
    premium levels, claims experience and the level of pension benefit costs,
    funding and investment results;
  oAdverse global capital and credit market conditions could affect our
    ability to raise capital, if necessary, and may cause us to realize
    impairments on investments and certain intangible assets, including
    goodwill and the valuation allowance against deferred tax assets, which
    may reduce future earnings and/or affect our financial condition and
    ability to raise additional capital or refinance existing debt as it
    matures;
  oBecause of our holding company structure, the inability of our
    subsidiaries to pay dividends to the holding company in sufficient amounts
    could harm the holding Company's ability to meet its obligations;
  oLegislative, regulatory or tax changes, both domestic and foreign, that
    affect the cost of, or demand for, our subsidiaries' products, the
    required amount of reserves and/or surplus, or otherwise affect our
    ability to conduct business, including changes to statutory reserve
    requirements related to secondary guarantee universal life and annuities;
    regulations regarding captive reinsurance arrangements; restrictions on
    revenue sharing and 12b-1 payments; and the potential for U.S. Federal tax
    reform;
  oDeclines in or sustained low interest rates causing a reduction in
    investment income, the interest margins of our businesses, estimated
    gross profits and demand for our products;
  oUncertainty about the effect of rules and regulations to be promulgated
    under the Dodd-Frank Wall Street Reform and Consumer Protection Act on us
    and the economy and financial services sector in particular;
  oThe initiation of legal or regulatory proceedings against us, and the
    outcome of any legal or regulatory proceedings, such as: adverse actions
    related to present or past business practices common in businesses in
    which we compete; adverse decisions in significant actions including, but
    not limited to, actions brought by federal and state authorities and class
    action cases; new decisions that result in changes in law; and unexpected
    trial court rulings;
  oA decline in the equity markets causing a reduction in the sales of our
    subsidiaries' products, a reduction of asset-based fees that our
    subsidiaries charge on various investment and insurance products, an
    acceleration of amortization of deferred acquisition costs, or "DAC,"
    value of business acquired, or "VOBA," deferred sales inducements, or
    "DSI," and deferred front end sales loads, or "DFEL," and an increase in
    liabilities related to guaranteed benefit features of our subsidiaries'
    variable annuity products;
  oIneffectiveness of our risk management policies and procedures, including
    various hedging strategies used to offset the effect of changes in the
    value of liabilities due to changes in the level and volatility of the
    equity markets and interest rates;
  oA deviation in actual experience regarding future persistency, mortality,
    morbidity, interest rates or equity market returns from the assumptions
    used in pricing our subsidiaries' products, in establishing related
    insurance reserves and in the amortization of DAC, VOBA, DSI and DFEL,
    which may reduce future earnings;
  oChanges in accounting principles generally accepted in the United States,
    or "GAAP," including the potential incorporation of International
    Financial Reporting Standards into the U.S Financial Reporting System
    that may result in unanticipated changes to our net income;
  oLowering of one or more of our debt ratings issued by nationally
    recognized statistical rating organizations and the adverse effect such
    action may have on our ability to raise capital and on our liquidity and
    financial condition;
  oLowering of one or more of the insurer financial strength ratings of our
    insurance subsidiaries and the adverse effect such action may have on the
    premium writings, policy retention, profitability of our insurance
    subsidiaries and liquidity;
  oSignificant credit, accounting, fraud, corporate governance or other
    issues that may adversely affect the value of certain investments in our
    portfolios as well as counterparties to which we are exposed to credit
    risk requiring that we realize losses on investments;
  oInability to protect our intellectual property rights or claims of
    infringement of the intellectual property rights of others;
  oInterruption in telecommunication, information technology or other
    operational systems or failure to safeguard the confidentiality or privacy
    of sensitive data on such systems;
  oThe effect of acquisitions and divestitures, restructurings, product
    withdrawals and other unusual items;
  oThe adequacy and collectibility of reinsurance that we have purchased;
  oActs of terrorism, a pandemic, war or other man-made and natural
    catastrophes that may adversely affect our businesses and the cost and
    availability of reinsurance;
  oCompetitive conditions, including pricing pressures, new product offerings
    and the emergence of new competitors, that may affect the level of
    premiums and fees that our subsidiaries can charge for their products;
  oThe unknown effect on our subsidiaries' businesses resulting from changes
    in the demographics of their client base, as aging baby-boomers move from
    the asset-accumulation stage to the asset-distribution stage of life; and
  oLoss of key management, financial planners or wholesalers.

The risks included here are not exhaustive. Our annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K and other
documents filed with the SEC include additional factors which could impact our
business and financial performance. Moreover, we operate in a rapidly changing
and competitive environment. New risk factors emerge from time to time, and it
is not possible for management to predict all such risk factors.

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

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SOURCE Lincoln Financial Group

Website: http://www.lfg.com
Contact: Jim Sjoreen, +1-484-583-1420, Investor Relations,
Investorrelations@LFG.com, or Michael Arcaro, +1-484-583-1799, Media
Relations, michael.arcaro@LFG.com