|
|
|
|
| Lincoln Financial Group |
| |
| Table of Contents |
| |
|
|
|
|
|
|
|
|
| Notes | 1 |
|
| Consolidated |
|
|
| Consolidated Statements of Income (Loss) | 2 |
|
| Consolidated Balance Sheets | 3 |
|
| Earnings, Shares and Return on Equity | 4 |
|
| Key Stakeholder Metrics | 5 |
|
| Operating Revenues and General and Administrative Expenses by Segment | 6 |
|
| Select Earnings and Operational Data from Business Segments |
|
|
| Income (Loss) from Operations Summary | 7 |
|
| Life Insurance | 8 |
|
| Annuities | 9 |
|
| Group Protection | 10 |
|
| Retirement Plan Services | 11 |
|
| Other Operations | 12 |
|
| Account Balance Roll Forwards |
|
|
| Life Insurance | 13 |
|
| Annuities | 14 |
|
| Retirement Plan Services | 15 |
|
| Other Information |
|
|
| Select GAAP to Non-GAAP Reconciliations | 16-18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| |||||||||||||||||||||||||
| Notes |
| |||||||||||||||||||||||||
|
|
| |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basis of Presentation |
| |||||||||||||||||||||||||
| On March 30, 2023, we filed a Form 10-K/A including restated audited consolidated financial statements for the years ended December 31, 2022 and December 31, 2021, as well as unaudited restated interim |
| |||||||||||||||||||||||||
| financial information for the quarterly periods in 2022 and 2021. As disclosed in the Form 10-K/A, the restatement corrected the accounting treatment for our fourth quarter 2021 reinsurance transaction with |
| |||||||||||||||||||||||||
| Resolution Life, as well as corrected previously identified errors that the Company determined to be immaterial, both individually and in the aggregate. Accordingly, we have adjusted the prior period information |
| |||||||||||||||||||||||||
| in this condensed Statistical Supplement as applicable. Revised solely for the correction of the accounting treatment for the reinsurance transaction, for the fourth quarter of 2021 and full year 2022, the |
| |||||||||||||||||||||||||
| Company's financial results included a one-time gain of $498 million in net income for the quarter ended December 31, 2021, rather than amortizing $25 million and $6 million of the gain that was reflected in |
| |||||||||||||||||||||||||
| net income during the year ended December 31, 2022 and the quarter ended December 31, 2021, respectively. As of year-end December 31, 2022 and December 31, 2021, the Company’s stockholders’ equity |
| |||||||||||||||||||||||||
| increased by $467 million and $492 million, respectively, and the Company’s leverage ratio as of year-end December 31, 2022 improved by approximately 80 basis points as a result of the correction of the |
| |||||||||||||||||||||||||
| accounting treatment. |
| |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In addition, as of January 1, 2023, we adopted the provisions of Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments” |
| |||||||||||||||||||||||||
| (“LDTI”) and retrospectively restated all prior periods presented in this condensed Statistical Supplement. The amended guidance was applied as of the beginning of the earliest period presented in the |
| |||||||||||||||||||||||||
| Company's quarterly and annual financial statements, which resulted in a January 1, 2021 transition date. The information in this restated condensed Statistical Supplement reflecting the impacts of the |
| |||||||||||||||||||||||||
| adoption of LDTI is being provided at this time voluntarily and for comparative purposes only. The following summarizes the increase (decrease) to net income (loss) and adjusted income (loss) from |
| |||||||||||||||||||||||||
| operations by segment (in millions) as a result of the adoption of LDTI: |
| |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Twelve |
|
|
|
|
|
|
|
|
| ||||
|
| For the Three Months Ended |
| Months Ended |
|
|
|
|
|
|
|
|
| ||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
| 12/31/21 |
| 12/31/22 |
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LDTI Impacts to Net Income (Loss) | $ | 1,388 |
| $ | 612 |
| $ | 808 |
| $ | 791 |
| $ | 1,891 |
| $ | 3,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LDTI Impacts to Adjusted Income (Loss) from Operations, After-Tax(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Life Insurance | $ | (28) |
| $ | (44) |
| $ | (5) |
| $ | (52) |
| $ | (38) |
| $ | (129) |
|
|
|
|
|
|
|
|
|
| Annuities(2) |
| 15 |
|
| 35 |
|
| (177) |
|
| 41 |
|
| 55 |
|
| (85) |
|
|
|
|
|
|
|
|
|
| Group Protection |
| (5) |
|
| (10) |
|
| (25) |
|
| (22) |
|
| (37) |
|
| (61) |
|
|
|
|
|
|
|
|
|
| Retirement Plan Services |
| 2 |
|
| 2 |
|
| (5) |
|
| 3 |
|
| 13 |
|
| 1 |
|
|
|
|
|
|
|
|
|
| Other Operations |
| 4 |
|
| 4 |
|
| 1 |
|
| 1 |
|
| 4 |
|
| 9 |
|
|
|
|
|
|
|
|
|
| Impacts to adjusted income (loss) from operations, after-tax(2) | $ | (12) |
| $ | (13) |
| $ | (211) |
| $ | (29) |
| $ | (3) |
| $ | (265) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Adjusted income (loss) from operations is a non-GAAP performance measure. See definition on page 1b and reconciliation to net income on page 16. |
|
|
|
|
|
|
|
|
| |||||||||||||||||
| (2) Includes $217 million impact of our third quarter 2022 annual assumption review on reserves that are now classified as MRBs under LDTI. Excluding |
|
|
|
|
|
|
|
|
| |||||||||||||||||
| this impact, the adoption of LDTI had a minimal impact on annual adjusted income (loss) from operations. |
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The following summarizes the increase (decrease) to net income (loss) and adjusted income (loss) from operations per common share - diluted as a result of the adoption of LDTI: |
| |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Twelve |
|
|
|
|
|
|
|
|
| ||||
|
| For the Three Months Ended |
| Months Ended |
|
|
|
|
|
|
|
|
| ||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
| 12/31/21 |
| 12/31/22 |
|
|
|
|
|
|
|
|
| ||||||
| Impacts on net income (loss) (diluted), per common share | $ | 7.87 |
| $ | 3.55 |
| $ | 4.76 |
| $ | 4.64 |
| $ | 9.98 |
| $ | 20.97 |
|
|
|
|
|
|
|
|
|
| Impacts on adjusted income (loss) from operations (diluted), |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| per common share |
| (0.06) |
|
| (0.07) |
|
| (1.24) |
|
| (0.17) |
|
| (0.01) |
|
| (1.55) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 1a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||||||
| Notes |
| ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Performance Measures |
|
|
|
| |||||||||||||||||||||
| Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein beginning on page 16. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Income (Loss) From Operations |
| ||||||||||||||||||||||||
| Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: |
| ||||||||||||||||||||||||
| • Changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”); |
| ||||||||||||||||||||||||
| • Realized gains and losses associated with the following (“excluded realized gain (loss)”): |
| ||||||||||||||||||||||||
| ▪ Changes in the carrying value of mortgage loans on real estate attributable to current expected credit losses (“CECL”) (“changes in CECL reserve for mortgage loans on real estate”); |
| ||||||||||||||||||||||||
| ▪ Changes in the carrying value of reinsurance-related assets attributable to CECL (“changes in CECL reserve for reinsurance-related assets”); |
| ||||||||||||||||||||||||
| ▪ Changes in the carrying value of fixed maturity AFS securities attributable to the estimation of credit losses (“changes in the credit loss allowance for fixed maturity AFS securities”); |
| ||||||||||||||||||||||||
| ▪ Changes in the fair value of investments, including trading securities, equity securities, certain derivatives, and mortgage loans on real estate electing the fair value option, and of |
| ||||||||||||||||||||||||
| embedded derivatives within certain reinsurance arrangements, as well as sales or disposals of investments (“changes in investments and reinsurance-related embedded derivatives”); |
| ||||||||||||||||||||||||
| ▪ Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders (“changes in fair value of GLB and GDB hedge instruments”); |
| ||||||||||||||||||||||||
| ▪ Fee income allocated to support the cost of hedging GLB and GDB riders (“GLB and GDB hedge allowance”); |
| ||||||||||||||||||||||||
| ▪ Changes in the fair value of the embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts (“changes in fair value of indexed product liabilities”); and |
| ||||||||||||||||||||||||
| ▪ Changes in the fair value of index options we hold to hedge the change in the fair value of the embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts |
| ||||||||||||||||||||||||
| (“changes in fair value of indexed product hedge instruments”); |
| ||||||||||||||||||||||||
| • Changes in reserves resulting from benefit ratio unlocking on variable universal life insurance products with secondary guarantees (“benefit ratio unlocking”); |
| ||||||||||||||||||||||||
| • Income (loss) from the initial adoption of new accounting standards, regulations and policy changes; |
| ||||||||||||||||||||||||
| • Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; |
| ||||||||||||||||||||||||
| • Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; |
| ||||||||||||||||||||||||
| • Gains (losses) on modification or early extinguishment of debt; |
| ||||||||||||||||||||||||
| • Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and |
| ||||||||||||||||||||||||
| • Income (loss) from discontinued operations. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Operating Revenues |
| ||||||||||||||||||||||||
| Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: |
| ||||||||||||||||||||||||
| • Excluded realized gain (loss); |
| ||||||||||||||||||||||||
| • Revenue adjustments from the initial adoption of new accounting standards; and |
| ||||||||||||||||||||||||
| • Amortization of deferred gains arising from reserve changes on business sold through reinsurance. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Management believes that the non-GAAP performance measures discussed above explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying trends |
| ||||||||||||||||||||||||
| in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many instances, |
| ||||||||||||||||||||||||
| decisions regarding these items do not necessarily relate to the operations of the individual segments. In addition, we believe that our definitions of adjusted operating revenues and adjusted income (loss) |
| ||||||||||||||||||||||||
| from operations provide investors with more valuable measures of our performance as they better reveal trends in our business. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 1b |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||||||
| Notes |
| ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Performance Measures, Continued |
| ||||||||||||||||||||||||
| Stockholders’ Equity, Excluding AOCI and Preferred Stock |
| ||||||||||||||||||||||||
| Stockholders’ equity, excluding AOCI is stockholders’ equity, excluding AOCI and preferred stock. Management believes this metric is useful to investors because it eliminates market movements that are |
| ||||||||||||||||||||||||
| unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. Stockholders’ equity is the most directly comparable GAAP measure. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Stockholders’ Equity |
| ||||||||||||||||||||||||
| For presented periods prior to January 1, 2023, adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts. For periods beginning on or after January 1, 2023, |
| ||||||||||||||||||||||||
| adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts and GLB and GDB hedged instruments gains (losses), to align to updates made to our variable |
| ||||||||||||||||||||||||
| annuity hedge program effective January 1, 2023. Management believes this metric is useful to investors because it eliminates the effect of market movements that are unpredictable and can fluctuate significantly |
| ||||||||||||||||||||||||
| from period to period, primarily related to changes in equity markets and interest rates. Stockholders’ equity is the most directly comparable GAAP measure. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book Value per Share, Excluding AOCI |
| ||||||||||||||||||||||||
| Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI and preferred stock, by common shares outstanding. We provide book value per share, excluding AOCI, to |
| ||||||||||||||||||||||||
| enable investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes book value per share, excluding AOCI, is useful to investors because it |
| ||||||||||||||||||||||||
| eliminates the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP |
| ||||||||||||||||||||||||
| measure. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Book Value per Share |
| ||||||||||||||||||||||||
| Adjusted book value per share is calculated by dividing stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts, by common shares outstanding. We provide adjusted book value per share |
| ||||||||||||||||||||||||
| to enable investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes adjusted book value per share is useful to investors because it eliminates |
| ||||||||||||||||||||||||
| the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates. Stockholders’ equity is the most directly comparable |
| ||||||||||||||||||||||||
| GAAP measure. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Income (Loss) From Operations, Excluding AOCI and Preferred Stock ROE |
| ||||||||||||||||||||||||
| Adjusted income (loss) from operations, excluding AOCI and preferred stock ROE is calculated by dividing annualized adjusted income (loss) from operations by average stockholders’ equity, excluding AOCI |
| ||||||||||||||||||||||||
| and preferred stock. Management believes this metric is useful to investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period |
| ||||||||||||||||||||||||
| to period, primarily related to changes in interest rates. Net income (loss) ROE is the most directly comparable GAAP measure. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Income (Loss) From Operations ROE |
| ||||||||||||||||||||||||
| Adjusted income (loss) from operations ROE is calculated by dividing annualized adjusted income (loss) from operations by adjusted average stockholders’ equity. Management believes this metric is useful to |
| ||||||||||||||||||||||||
| investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in equity markets and interest |
| ||||||||||||||||||||||||
| rates. Net income (loss) ROE is the most directly comparable GAAP measure. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Management believes that the non-GAAP measures discussed above allow for a better understanding of the underlying trends in our current business as the excluded items are unpredictable and not necessarily |
| ||||||||||||||||||||||||
| indicative of current operating fundamentals or future performance of the business. |
| ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
| Computations |
| ||||||||||||||||||||||||
| • The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions. |
| ||||||||||||||||||||||||
| • The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions. |
| ||||||||||||||||||||||||
| • We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation. In addition, for any period where a net loss or adjusted loss from operations is experienced, shares |
| ||||||||||||||||||||||||
| used in the diluted EPS calculation represent basic shares, as the use of diluted shares would result in a lower loss per share. |
| ||||||||||||||||||||||||
| • Pre-tax net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted operating revenues less interest credited. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 1c |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||||||
| Notes |
| ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Definitions |
| ||||||||||||||||||||||||
| Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial paper |
| ||||||||||||||||||||||||
| outstanding. |
| ||||||||||||||||||||||||
| Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. See adjusted income (loss) from operations ROE and adjusted income (loss) from |
| ||||||||||||||||||||||||
| operations, excluding AOCI and preferred stock ROE metrics on page 1c for further information on how these metrics are calculated. Management evaluates consolidated ROE by both including and excluding |
| ||||||||||||||||||||||||
| the effect of average goodwill. |
| ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
| Statistical Supplement is Dated |
| ||||||||||||||||||||||||
| This document is dated April 6, 2023, and has not been updated since that date. Lincoln Financial Group does not intend to update this document. |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investor Inquiries May Be Directed To: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Albert Copersino, Vice President, Investor Relations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Email: InvestorRelations@lfg.com |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Phone: 203-257-4493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 1d |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Consolidated Statements of Income (Loss) |
| ||||||||||||||||||||
| Unaudited (millions of dollars, except per share data) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance premiums | $ | 1,477 |
| $ | 1,498 |
| $ | 1,548 |
| $ | 1,564 |
|
| $ | 5,617 |
| $ | 6,087 |
| 8.4% |
|
| Fee income |
| 1,458 |
|
| 1,409 |
|
| 1,381 |
|
| 1,354 |
|
|
| 6,039 |
|
| 5,604 |
| -7.2% |
|
| Net investment income |
| 1,411 |
|
| 1,398 |
|
| 1,295 |
|
| 1,412 |
|
|
| 6,110 |
|
| 5,514 |
| -9.8% |
|
| Realized gain (loss) |
| 181 |
|
| 1,101 |
|
| 249 |
|
| (692) |
|
|
| (867) |
|
| 840 |
| 196.9% |
|
| Amortization of deferred gain on business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| sold through reinsurance |
| 11 |
|
| 11 |
|
| 10 |
|
| 10 |
|
|
| 39 |
|
| 43 |
| 10.3% |
|
| Other revenues |
| 182 |
|
| 160 |
|
| 189 |
|
| 193 |
|
|
| 777 |
|
| 722 |
| -7.1% |
|
| Total revenues |
| 4,720 |
|
| 5,577 |
|
| 4,672 |
|
| 3,841 |
|
|
| 17,715 |
|
| 18,810 |
| 6.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits |
| 2,156 |
|
| 1,954 |
|
| 2,149 |
|
| 2,220 |
|
|
| 8,503 |
|
| 8,479 |
| -0.3% |
|
| Interest credited |
| 697 |
|
| 710 |
|
| 726 |
|
| 744 |
|
|
| 2,929 |
|
| 2,877 |
| -1.8% |
|
| Market risk benefit (gain) loss |
| (1,359) |
|
| 477 |
|
| (798) |
|
| (1,567) |
|
|
| (3,753) |
|
| (3,246) |
| 13.5% |
|
| Policyholder liability remeasurement (gain) loss |
| 41 |
|
| 85 |
|
| 2,692 |
|
| (52) |
|
|
| (183) |
|
| 2,766 |
| NM |
|
| Commissions and other expenses |
| 1,254 |
|
| 1,208 |
|
| 1,280 |
|
| 1,385 |
|
|
| 5,219 |
|
| 5,125 |
| -1.8% |
|
| Interest and debt expense |
| 66 |
|
| 68 |
|
| 71 |
|
| 77 |
|
|
| 270 |
|
| 283 |
| 4.8% |
|
| Spark program expense |
| 31 |
|
| 43 |
|
| 44 |
|
| 49 |
|
|
| 87 |
|
| 167 |
| 92.0% |
|
| Impairment of intangibles |
| - |
|
| - |
|
| 634 |
|
| - |
|
|
| - |
|
| 634 |
| NM |
|
| Total expenses |
| 2,886 |
|
| 4,545 |
|
| 6,798 |
|
| 2,856 |
|
|
| 13,072 |
|
| 17,085 |
| 30.7% |
|
| Income (loss) before taxes |
| 1,834 |
|
| 1,032 |
|
| (2,126) |
|
| 985 |
|
|
| 4,643 |
|
| 1,725 |
| -62.8% |
|
| Federal income tax expense (benefit) |
| 354 |
|
| 192 |
|
| (351) |
|
| 173 |
|
|
| 865 |
|
| 367 |
| -57.6% |
|
| Net income (loss) |
| 1,480 |
|
| 840 |
|
| (1,775) |
|
| 812 |
|
|
| 3,778 |
|
| 1,358 |
| -64.1% |
|
| Adjustment for deferred units of LNC stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| in our deferred compensation plans |
| (1) |
|
| (7) |
|
| (1) |
|
| (5) |
|
|
| 8 |
|
| (13) |
| NM |
|
| Net income (loss) available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| stockholders – diluted | $ | 1,479 |
| $ | 833 |
| $ | (1,776) |
| $ | 807 |
|
| $ | 3,786 |
| $ | 1,345 |
| -64.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (Loss) Per Common Share – Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) | $ | 8.39 |
| $ | 4.83 |
| $ | (10.47) |
| $ | 4.73 |
|
| $ | 19.96 |
| $ | 7.78 |
| -61.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||
| Consolidated Balance Sheets |
| ||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of |
| |||||||||||||||
|
| 12/31/21 |
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
| Change |
| |||||
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturity available-for-sale (“AFS”) securities, net of allowance for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate bonds | $ | 98,120 |
| $ | 90,561 |
| $ | 83,158 |
| $ | 77,446 |
| $ | 79,023 |
| -19.5% |
|
| U.S. government bonds |
| 433 |
|
| 418 |
|
| 415 |
|
| 384 |
|
| 379 |
| -12.5% |
|
| State and municipal bonds |
| 6,621 |
|
| 6,001 |
|
| 5,523 |
|
| 5,089 |
|
| 5,070 |
| -23.4% |
|
| Foreign government bonds |
| 432 |
|
| 383 |
|
| 348 |
|
| 338 |
|
| 318 |
| -26.4% |
|
| Residential mortgage-backed securities |
| 2,525 |
|
| 2,338 |
|
| 2,181 |
|
| 2,048 |
|
| 2,009 |
| -20.4% |
|
| Commercial mortgage-backed securities |
| 1,599 |
|
| 1,592 |
|
| 1,557 |
|
| 1,549 |
|
| 1,674 |
| 4.7% |
|
| Asset-backed securities |
| 8,512 |
|
| 8,929 |
|
| 9,711 |
|
| 10,347 |
|
| 10,904 |
| 28.1% |
|
| Hybrid and redeemable preferred securities |
| 469 |
|
| 441 |
|
| 423 |
|
| 371 |
|
| 359 |
| -23.5% |
|
| Total fixed maturity AFS securities, net of allowance for credit losses |
| 118,711 |
|
| 110,663 |
|
| 103,316 |
|
| 97,572 |
|
| 99,736 |
| -16.0% |
|
| Trading securities |
| 4,460 |
|
| 4,364 |
|
| 3,803 |
|
| 3,580 |
|
| 3,498 |
| -21.6% |
|
| Equity securities |
| 375 |
|
| 399 |
|
| 412 |
|
| 427 |
|
| 427 |
| 13.9% |
|
| Mortgage loans on real estate, net of allowance for credit losses |
| 17,991 |
|
| 17,892 |
|
| 17,922 |
|
| 18,066 |
|
| 18,301 |
| 1.7% |
|
| Policy loans |
| 2,364 |
|
| 2,339 |
|
| 2,368 |
|
| 2,347 |
|
| 2,359 |
| -0.2% |
|
| Derivative investments |
| 5,697 |
|
| 4,574 |
|
| 3,167 |
|
| 3,456 |
|
| 3,594 |
| -36.9% |
|
| Other investments |
| 4,288 |
|
| 4,121 |
|
| 4,078 |
|
| 3,812 |
|
| 3,739 |
| -12.8% |
|
| Total investments |
| 153,886 |
|
| 144,352 |
|
| 135,066 |
|
| 129,260 |
|
| 131,654 |
| -14.4% |
|
| Cash and invested cash |
| 2,612 |
|
| 1,960 |
|
| 1,567 |
|
| 1,472 |
|
| 3,343 |
| 28.0% |
|
| Deferred acquisition costs, value of business acquired and deferred sales inducements |
| 11,896 |
|
| 11,965 |
|
| 12,050 |
|
| 12,140 |
|
| 12,235 |
| 2.8% |
|
| Reinsurance recoverables, net of allowance for credit losses |
| 22,386 |
|
| 21,158 |
|
| 19,874 |
|
| 19,460 |
|
| 19,443 |
| -13.1% |
|
| Market risk benefit assets |
| 1,888 |
|
| 2,291 |
|
| 2,205 |
|
| 2,428 |
|
| 2,807 |
| 48.7% |
|
| Accrued investment income |
| 1,189 |
|
| 1,247 |
|
| 1,226 |
|
| 1,283 |
|
| 1,253 |
| 5.4% |
|
| Goodwill |
| 1,778 |
|
| 1,778 |
|
| 1,778 |
|
| 1,144 |
|
| 1,144 |
| -35.7% |
|
| Other assets |
| 16,532 |
|
| 16,493 |
|
| 16,708 |
|
| 18,435 |
|
| 18,802 |
| 13.7% |
|
| Separate account assets |
| 182,583 |
|
| 168,879 |
|
| 145,791 |
|
| 137,295 |
|
| 143,536 |
| -21.4% |
|
| Total assets | $ | 394,750 |
| $ | 370,123 |
| $ | 336,265 |
| $ | 322,917 |
| $ | 334,217 |
| -15.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 3a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||
| Consolidated Balance Sheets |
| ||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of |
| |||||||||||||||
|
| 12/31/21 |
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
| Change |
| |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Policyholder account balances | $ | 110,227 |
| $ | 110,606 |
| $ | 110,202 |
| $ | 111,732 |
| $ | 114,435 |
| 3.8% |
|
| Future contract benefits |
| 41,425 |
|
| 38,887 |
|
| 36,453 |
|
| 38,087 |
|
| 38,826 |
| -6.3% |
|
| Market risk benefit liabilities |
| 4,399 |
|
| 3,312 |
|
| 3,195 |
|
| 2,756 |
|
| 2,078 |
| -52.8% |
|
| Deferred front-end loads |
| 4,225 |
|
| 4,416 |
|
| 4,623 |
|
| 4,834 |
|
| 5,052 |
| 19.6% |
|
| Payables for collateral on investments |
| 8,946 |
|
| 8,927 |
|
| 7,524 |
|
| 6,865 |
|
| 6,712 |
| -25.0% |
|
| Short-term debt |
| 300 |
|
| - |
|
| - |
|
| 500 |
|
| 500 |
| 66.7% |
|
| Long-term debt by rating agency leverage definitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (see note (2) on page 5 for details) |
| 867 |
|
| 867 |
|
| 867 |
|
| 867 |
|
| 867 |
| 0.0% |
|
| Financial |
| 5,458 |
|
| 5,694 |
|
| 5,631 |
|
| 5,092 |
|
| 5,088 |
| -6.8% |
|
| Other liabilities |
| 16,405 |
|
| 14,280 |
|
| 12,648 |
|
| 12,106 |
|
| 12,021 |
| -26.7% |
|
| Separate account liabilities |
| 182,583 |
|
| 168,879 |
|
| 145,791 |
|
| 137,295 |
|
| 143,536 |
| -21.4% |
|
| Total liabilities |
| 374,835 |
|
| 355,868 |
|
| 326,934 |
|
| 320,134 |
|
| 329,115 |
| -12.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock |
| - |
|
| - |
|
| - |
|
| - |
|
| 986 |
| NM |
|
| Common stock |
| 4,735 |
|
| 4,586 |
|
| 4,546 |
|
| 4,534 |
|
| 4,544 |
| -4.0% |
|
| Retained earnings |
| 5,196 |
|
| 6,354 |
|
| 7,065 |
|
| 5,189 |
|
| 5,924 |
| 14.0% |
|
| Accumulated other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized investment gain (loss) |
| 9,531 |
|
| 2,033 |
|
| (4,623) |
|
| (9,677) |
|
| (8,528) |
| NM |
|
| Market risk benefit gain (loss) |
| 1,951 |
|
| 1,971 |
|
| 2,325 |
|
| 2,175 |
|
| 1,741 |
| -10.8% |
|
| Policyholder liability remeasurement gain (loss) |
| (1,265) |
|
| (454) |
|
| 257 |
|
| 806 |
|
| 747 |
| 159.1% |
|
| Foreign currency translation adjustment |
| (14) |
|
| (19) |
|
| (33) |
|
| (47) |
|
| (34) |
| NM |
|
| Funded status of employee benefit plans |
| (219) |
|
| (216) |
|
| (206) |
|
| (197) |
|
| (278) |
| -26.9% |
|
| Total accumulated other comprehensive income (loss) |
| 9,984 |
|
| 3,315 |
|
| (2,280) |
|
| (6,940) |
|
| (6,352) |
| NM |
|
| Total stockholders’ equity |
| 19,915 |
|
| 14,255 |
|
| 9,331 |
|
| 2,783 |
|
| 5,102 |
| -74.4% |
|
| Total liabilities and stockholders’ equity | $ | 394,750 |
| $ | 370,123 |
| $ | 336,265 |
| $ | 322,917 |
| $ | 334,217 |
| -15.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 3b |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Earnings, Shares and Return on Equity |
| ||||||||||||||||||||
| Unaudited (millions of dollars, except per share data) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of or For the Three Months Ended |
|
| As of or For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) | $ | 1,480 |
| $ | 840 |
| $ | (1,775) |
| $ | 812 |
|
| $ | 3,778 |
| $ | 1,358 |
| -64.1% |
|
| Pre-tax adjusted income (loss) from operations |
| 307 |
|
| 441 |
|
| (2,513) |
|
| 127 |
|
|
| 1,805 |
|
| (1,638) |
| NM |
|
| After-tax adjusted income (loss) from operations (1) |
| 274 |
|
| 374 |
|
| (1,949) |
|
| 134 |
|
|
| 1,537 |
|
| (1,167) |
| NM |
|
| Adjusted operating tax rate |
| 10.7% |
|
| 15.3% |
|
| 22.5% |
|
| -5.5% |
|
|
| 14.8% |
|
| 28.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ROE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) ROE |
| 34.7% |
|
| 28.5% |
|
| NM |
|
| 82.3% |
|
|
| 19.6% |
|
| 14.0% |
|
|
|
| Adjusted income (loss) from operations, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AOCI and preferred stock ROE |
| 10.5% |
|
| 13.3% |
|
| -73.1% |
|
| 5.3% |
|
|
| 18.2% |
|
| -11.0% |
|
|
|
| Adjusted income (loss) from operations ROE |
| 8.4% |
|
| 11.0% |
|
| -60.7% |
|
| 4.7% |
|
|
| 11.8% |
|
| -9.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) (diluted) | $ | 8.39 |
| $ | 4.83 |
| $ | (10.47) |
| $ | 4.73 |
|
| $ | 19.96 |
| $ | 7.78 |
| -61.0% |
|
| Adjusted income (loss) from operations (diluted) (2) |
| 1.55 |
|
| 2.13 |
|
| (11.49) |
|
| 0.76 |
|
|
| 8.13 |
|
| (6.90) |
| NM |
|
| Dividends declared during the period |
| 0.45 |
|
| 0.45 |
|
| 0.45 |
|
| 0.45 |
|
|
| 1.71 |
|
| 1.80 |
| 5.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book Value Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share | $ | 82.93 |
| $ | 54.81 |
| $ | 16.45 |
| $ | 24.32 |
|
| $ | 112.39 |
| $ | 24.32 |
| -78.4% |
|
| Book value per share, excluding AOCI (3) |
| 63.64 |
|
| 68.21 |
|
| 57.46 |
|
| 61.86 |
|
|
| 56.05 |
|
| 61.86 |
| 10.4% |
|
| Adjusted book value per share (3) |
| 75.77 |
|
| 82.78 |
|
| 68.53 |
|
| 65.72 |
|
|
| 73.81 |
|
| 65.72 |
| -11.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repurchased during the period |
| 5.8 |
|
| 1.8 |
|
| 1.0 |
|
| - |
|
|
| 16.2 |
|
| 8.7 |
| -46.3% |
|
| End-of-period – basic |
| 171.9 |
|
| 170.2 |
|
| 169.2 |
|
| 169.2 |
|
|
| 177.2 |
|
| 169.2 |
| -4.5% |
|
| Average for the period – basic |
| 174.2 |
|
| 171.1 |
|
| 169.7 |
|
| 169.2 |
|
|
| 187.4 |
|
| 171.0 |
| -8.8% |
|
| End-of-period – diluted |
| 173.8 |
|
| 171.6 |
|
| 170.7 |
|
| 170.5 |
|
|
| 179.8 |
|
| 170.5 |
| -5.2% |
|
| Average for the period – diluted |
| 176.4 |
|
| 172.7 |
|
| 171.1 |
|
| 170.6 |
|
|
| 189.1 |
|
| 172.7 |
| -8.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) See reconciliation to net income (loss) on page 16. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| (2) See reconciliation to earnings (loss) per common share - diluted on page 17. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| (3) See reconciliation to stockholders’ equity and book value per common share on page 18. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Key Stakeholder Metrics |
| ||||||||||||||||||||
| Unaudited (millions of dollars, except per share data) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of or For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Cash Returned to Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares repurchased | $ | 400 |
| $ | 100 |
| $ | 50 |
| $ | - |
|
| $ | 1,105 |
| $ | 550 |
| -50.2% |
|
| Common dividends |
| 80 |
|
| 77 |
|
| 77 |
|
| 76 |
|
|
| 319 |
|
| 310 |
| -2.8% |
|
| Total cash returned to common stockholders | $ | 480 |
| $ | 177 |
| $ | 127 |
| $ | 76 |
|
| $ | 1,424 |
| $ | 860 |
| -39.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Leverage Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term debt | $ | - |
| $ | - |
| $ | 500 |
| $ | 500 |
|
|
|
|
|
|
|
|
|
|
| Long-term debt |
| 6,561 |
|
| 6,498 |
|
| 5,959 |
|
| 5,955 |
|
|
|
|
|
|
|
|
|
|
| Total debt (1) |
| 6,561 |
|
| 6,498 |
|
| 6,459 |
|
| 6,455 |
|
|
|
|
|
|
|
|
|
|
| Preferred stock |
| - |
|
| - |
|
| - |
|
| 986 |
|
|
|
|
|
|
|
|
|
|
| Total debt and preferred stock |
| 6,561 |
|
| 6,498 |
|
| 6,459 |
|
| 7,441 |
|
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating debt (2) |
| 867 |
|
| 867 |
|
| 867 |
|
| 867 |
|
|
|
|
|
|
|
|
|
|
| Pre-funding of upcoming debt maturities |
| 300 |
|
| 300 |
|
| 300 |
|
| 500 |
|
|
|
|
|
|
|
|
|
|
| 25% of capital securities and subordinated notes |
| 302 |
|
| 302 |
|
| 302 |
|
| 302 |
|
|
|
|
|
|
|
|
|
|
| 50% of preferred stock |
| - |
|
| - |
|
| - |
|
| 493 |
|
|
|
|
|
|
|
|
|
|
| Carrying value of fair value hedges and other items |
| 273 |
|
| 209 |
|
| 169 |
|
| 164 |
|
|
|
|
|
|
|
|
|
|
| Total numerator | $ | 4,819 |
| $ | 4,820 |
| $ | 4,821 |
| $ | 5,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted stockholders’ equity (3) | $ | 13,025 |
| $ | 14,094 |
| $ | 11,595 |
| $ | 11,120 |
|
|
|
|
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 25% of capital securities and subordinated notes |
| 302 |
|
| 302 |
|
| 302 |
|
| 302 |
|
|
|
|
|
|
|
|
|
|
| 50% of preferred stock |
| - |
|
| - |
|
| - |
|
| 493 |
|
|
|
|
|
|
|
|
|
|
| Total numerator |
| 4,819 |
|
| 4,820 |
|
| 4,821 |
|
| 5,115 |
|
|
|
|
|
|
|
|
|
|
| Total denominator | $ | 18,146 |
| $ | 19,216 |
| $ | 16,718 |
| $ | 17,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Leverage ratio |
| 26.6% |
|
| 25.1% |
|
| 28.8% |
|
| 30.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Holding Company Available Liquidity | $ | 755 |
| $ | 756 |
| $ | 756 |
| $ | 960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes obligations under finance leases and certain financing arrangements of $664 million that are reported in other liabilities on our Consolidated Balance Sheets. |
| ||||||||||||||||||||
| (2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce |
| ||||||||||||||||||||
| the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. |
| ||||||||||||||||||||
| (3) Our leverage ratio has been revised to reflect adjusted stockholders’ equity instead of stockholders’ equity, as adjusted stockholders’ equity more closely aligns with the metric used |
| ||||||||||||||||||||
| to calculate compliance with financial covenants in certain of our debt arrangements. See reconciliation to stockholders’ equity on page 18. |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Operating Revenues and General and Administrative Expenses by Segment |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life Insurance | $ | 1,729 |
| $ | 1,705 |
| $ | 1,623 |
| $ | 1,688 |
|
| $ | 7,387 |
| $ | 6,747 |
| -8.7% |
|
| Annuities |
| 1,147 |
|
| 1,097 |
|
| 1,113 |
|
| 1,125 |
|
|
| 4,691 |
|
| 4,482 |
| -4.5% |
|
| Group Protection |
| 1,303 |
|
| 1,323 |
|
| 1,333 |
|
| 1,346 |
|
|
| 4,995 |
|
| 5,303 |
| 6.2% |
|
| Retirement Plan Services |
| 318 |
|
| 315 |
|
| 316 |
|
| 325 |
|
|
| 1,322 |
|
| 1,274 |
| -3.6% |
|
| Other Operations |
| 40 |
|
| 34 |
|
| 36 |
|
| 47 |
|
|
| 181 |
|
| 157 |
| -13.3% |
|
| Total segment operating revenues | $ | 4,537 |
| $ | 4,474 |
| $ | 4,421 |
| $ | 4,531 |
|
| $ | 18,576 |
| $ | 17,963 |
| -3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and Administrative Expenses, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net of Amounts Capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life Insurance | $ | 117 |
| $ | 115 |
| $ | 132 |
| $ | 123 |
|
| $ | 503 |
| $ | 488 |
| -3.0% |
|
| Annuities |
| 112 |
|
| 108 |
|
| 118 |
|
| 110 |
|
|
| 477 |
|
| 448 |
| -6.1% |
|
| Group Protection |
| 165 |
|
| 166 |
|
| 182 |
|
| 173 |
|
|
| 659 |
|
| 686 |
| 4.1% |
|
| Retirement Plan Services |
| 69 |
|
| 69 |
|
| 75 |
|
| 75 |
|
|
| 293 |
|
| 288 |
| -1.7% |
|
| Other Operations |
| 48 |
|
| 48 |
|
| 70 |
|
| 212 |
|
|
| 285 |
|
| 377 |
| 32.3% |
|
| Total | $ | 511 |
| $ | 506 |
| $ | 577 |
| $ | 693 |
|
| $ | 2,217 |
| $ | 2,287 |
| 3.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and Administrative Expenses, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net of Amounts Capitalized, as a Percentage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| of Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life Insurance |
| 6.8% |
|
| 6.8% |
|
| 8.2% |
|
| 7.3% |
|
|
| 6.8% |
|
| 7.2% |
|
|
|
| Annuities |
| 9.8% |
|
| 9.9% |
|
| 10.6% |
|
| 9.8% |
|
|
| 10.2% |
|
| 10.0% |
|
|
|
| Group Protection |
| 12.7% |
|
| 12.5% |
|
| 13.7% |
|
| 12.9% |
|
|
| 13.2% |
|
| 12.9% |
|
|
|
| Retirement Plan Services |
| 21.8% |
|
| 21.9% |
|
| 23.7% |
|
| 23.2% |
|
|
| 22.1% |
|
| 22.6% |
|
|
|
| Other Operations |
| 115.7% |
|
| 140.2% |
|
| 193.6% |
|
| 457.7% |
|
|
| 157.9% |
|
| 239.6% |
|
|
|
| Total |
| 11.3% |
|
| 11.3% |
|
| 13.1% |
|
| 15.3% |
|
|
| 11.9% |
|
| 12.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Income (Loss) from Operations Summary |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Income (Loss) from Operations, Pre-Tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life Insurance | $ | 21 |
| $ | 74 |
| $ | (2,758) |
| $ | (18) |
|
| $ | 597 |
| $ | (2,681) |
| NM |
|
| Annuities |
| 371 |
|
| 343 |
|
| 313 |
|
| 319 |
|
|
| 1,592 |
|
| 1,346 |
| -15.5% |
|
| Group Protection |
| (58) |
|
| 62 |
|
| 15 |
|
| 33 |
|
|
| (208) |
|
| 52 |
| 125.0% |
|
| Retirement Plan Services |
| 67 |
|
| 66 |
|
| 53 |
|
| 61 |
|
|
| 300 |
|
| 247 |
| -17.7% |
|
| Other Operations |
| (94) |
|
| (104) |
|
| (136) |
|
| (268) |
|
|
| (476) |
|
| (602) |
| -26.5% |
|
| Adjusted income (loss) from operations, before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| income taxes | $ | 307 |
| $ | 441 |
| $ | (2,513) |
| $ | 127 |
|
| $ | 1,805 |
| $ | (1,638) |
| NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) from Operations, After-Tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life Insurance | $ | 23 |
| $ | 63 |
| $ | (2,171) |
| $ | (9) |
|
| $ | 487 |
| $ | (2,094) |
| NM |
|
| Annuities |
| 317 |
|
| 294 |
|
| 275 |
|
| 275 |
|
|
| 1,337 |
|
| 1,161 |
| -13.2% |
|
| Group Protection |
| (46) |
|
| 49 |
|
| 12 |
|
| 26 |
|
|
| (164) |
|
| 41 |
| 125.0% |
|
| Retirement Plan Services |
| 58 |
|
| 55 |
|
| 47 |
|
| 52 |
|
|
| 248 |
|
| 211 |
| -14.9% |
|
| Other Operations |
| (78) |
|
| (87) |
|
| (112) |
|
| (210) |
|
|
| (371) |
|
| (486) |
| -31.0% |
|
| Adjusted income (loss) from operations, after income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| taxes | $ | 274 |
| $ | 374 |
| $ | (1,949) |
| $ | 134 |
|
| $ | 1,537 |
| $ | (1,167) |
| NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Life Insurance – Select Earnings and Operational Data |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of or For the Three Months Ended |
|
| As of or For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Income (Loss) from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance premiums | $ | 277 |
| $ | 283 |
| $ | 289 |
| $ | 297 |
|
| $ | 1,033 |
| $ | 1,146 |
| 10.9% |
|
| Fee income |
| 761 |
|
| 754 |
|
| 745 |
|
| 735 |
|
|
| 3,121 |
|
| 2,996 |
| -4.0% |
|
| Net investment income |
| 688 |
|
| 664 |
|
| 585 |
|
| 650 |
|
|
| 3,207 |
|
| 2,587 |
| -19.3% |
|
| Operating realized gain (loss) |
| (2) |
|
| (2) |
|
| (2) |
|
| (2) |
|
|
| (7) |
|
| (7) |
| 0.0% |
|
| Amortization of deferred gain on |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| business sold through reinsurance |
| 4 |
|
| 4 |
|
| 4 |
|
| 4 |
|
|
| 12 |
|
| 17 |
| 41.7% |
|
| Other revenues |
| 1 |
|
| 2 |
|
| 2 |
|
| 4 |
|
|
| 21 |
|
| 8 |
| -61.9% |
|
| Total operating revenues |
| 1,729 |
|
| 1,705 |
|
| 1,623 |
|
| 1,688 |
|
|
| 7,387 |
|
| 6,747 |
| -8.7% |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits |
| 1,025 |
|
| 926 |
|
| 1,041 |
|
| 1,079 |
|
|
| 4,136 |
|
| 4,071 |
| -1.6% |
|
| Interest credited |
| 325 |
|
| 329 |
|
| 329 |
|
| 325 |
|
|
| 1,457 |
|
| 1,310 |
| -10.1% |
|
| Policyholder liability remeasurement (gain) loss |
| 62 |
|
| 85 |
|
| 2,708 |
|
| (2) |
|
|
| (17) |
|
| 2,854 |
| NM |
|
| Commissions incurred |
| 156 |
|
| 176 |
|
| 177 |
|
| 189 |
|
|
| 639 |
|
| 698 |
| 9.2% |
|
| Other expenses incurred |
| 202 |
|
| 199 |
|
| 208 |
|
| 210 |
|
|
| 840 |
|
| 818 |
| -2.6% |
|
| Amounts capitalized |
| (182) |
|
| (204) |
|
| (202) |
|
| (217) |
|
|
| (745) |
|
| (805) |
| -8.1% |
|
| Amortization |
| 120 |
|
| 120 |
|
| 120 |
|
| 122 |
|
|
| 480 |
|
| 482 |
| 0.4% |
|
| Total operating expenses |
| 1,708 |
|
| 1,631 |
|
| 4,381 |
|
| 1,706 |
|
|
| 6,790 |
|
| 9,428 |
| 38.9% |
|
| Income (loss) from operations before taxes |
| 21 |
|
| 74 |
|
| (2,758) |
|
| (18) |
|
|
| 597 |
|
| (2,681) |
| NM |
|
| Federal income tax expense (benefit) |
| (2) |
|
| 11 |
|
| (587) |
|
| (9) |
|
|
| 110 |
|
| (587) |
| NM |
|
| Income (loss) from operations | $ | 23 |
| $ | 63 |
| $ | (2,171) |
| $ | (9) |
|
| $ | 487 |
| $ | (2,094) |
| NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective Federal Income Tax Rate |
| -8.7% |
|
| 14.7% |
|
| 21.3% |
|
| 52.0% |
|
|
| 18.3% |
|
| 21.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Account Balances, Net of Reinsurance | $ | 51,203 |
| $ | 49,316 |
| $ | 47,663 |
| $ | 47,963 |
|
| $ | 58,046 |
| $ | 49,070 |
| -15.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In-Force Face Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UL and other | $ | 361,490 |
| $ | 361,565 |
| $ | 362,098 |
| $ | 363,884 |
|
| $ | 362,106 |
| $ | 363,884 |
| 0.5% |
|
| Term insurance |
| 635,123 |
|
| 663,140 |
|
| 689,101 |
|
| 707,747 |
|
|
| 611,854 |
|
| 707,747 |
| 15.7% |
|
| Total in-force face amount | $ | 996,613 |
| $ | 1,024,705 |
| $ | 1,051,199 |
| $ | 1,071,631 |
|
| $ | 973,960 |
| $ | 1,071,631 |
| 10.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Annuities – Select Earnings and Operational Data |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of or For the Three Months Ended |
|
| As of or For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Income (Loss) from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance premiums | $ | 30 |
| $ | 25 |
| $ | 57 |
| $ | 52 |
|
| $ | 116 |
| $ | 165 |
| 42.2% |
|
| Fee income (1) |
| 628 |
|
| 591 |
|
| 574 |
|
| 556 |
|
|
| 2,622 |
|
| 2,347 |
| -10.5% |
|
| Net investment income |
| 359 |
|
| 367 |
|
| 348 |
|
| 389 |
|
|
| 1,400 |
|
| 1,463 |
| 4.5% |
|
| Amortization of deferred gain on |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| business sold through reinsurance |
| 6 |
|
| 6 |
|
| 6 |
|
| 6 |
|
|
| 26 |
|
| 25 |
| -3.8% |
|
| Other revenues |
| 124 |
|
| 108 |
|
| 128 |
|
| 122 |
|
|
| 527 |
|
| 482 |
| -8.5% |
|
| Total operating revenues |
| 1,147 |
|
| 1,097 |
|
| 1,113 |
|
| 1,125 |
|
|
| 4,691 |
|
| 4,482 |
| -4.5% |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits |
| 52 |
|
| 48 |
|
| 79 |
|
| 72 |
|
|
| 203 |
|
| 251 |
| 23.6% |
|
| Interest credited |
| 207 |
|
| 215 |
|
| 224 |
|
| 248 |
|
|
| 809 |
|
| 894 |
| 10.5% |
|
| Policyholder liability remeasurement (gain) loss |
| 1 |
|
| 1 |
|
| 1 |
|
| - |
|
|
| (3) |
|
| 2 |
| 166.7% |
|
| Commissions incurred |
| 269 |
|
| 254 |
|
| 254 |
|
| 240 |
|
|
| 1,138 |
|
| 1,018 |
| -10.5% |
|
| Other expenses incurred |
| 259 |
|
| 239 |
|
| 251 |
|
| 242 |
|
|
| 1,064 |
|
| 991 |
| -6.9% |
|
| Amounts capitalized |
| (118) |
|
| (110) |
|
| (117) |
|
| (103) |
|
|
| (515) |
|
| (449) |
| 12.8% |
|
| Amortization |
| 106 |
|
| 107 |
|
| 108 |
|
| 107 |
|
|
| 403 |
|
| 429 |
| 6.5% |
|
| Total operating expenses |
| 776 |
|
| 754 |
|
| 800 |
|
| 806 |
|
|
| 3,099 |
|
| 3,136 |
| 1.2% |
|
| Income (loss) from operations before taxes |
| 371 |
|
| 343 |
|
| 313 |
|
| 319 |
|
|
| 1,592 |
|
| 1,346 |
| -15.5% |
|
| Federal income tax expense (benefit) |
| 54 |
|
| 49 |
|
| 38 |
|
| 44 |
|
|
| 255 |
|
| 185 |
| -27.5% |
|
| Income (loss) from operations | $ | 317 |
| $ | 294 |
| $ | 275 |
| $ | 275 |
|
| $ | 1,337 |
| $ | 1,161 |
| -13.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective Federal Income Tax Rate |
| 14.3% |
|
| 14.2% |
|
| 12.3% |
|
| 13.7% |
|
|
| 16.0% |
|
| 13.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on Average Account Balances |
| 79 |
|
| 79 |
|
| 76 |
|
| 77 |
|
|
| 81 |
|
| 78 |
| (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Variable annuity |
| 279 |
|
| 264 |
|
| 256 |
|
| 238 |
|
|
| 1,186 |
|
| 1,037 |
| -12.6% |
|
| Fixed annuity |
| 38 |
|
| 30 |
|
| 19 |
|
| 37 |
|
|
| 151 |
|
| 124 |
| -17.9% |
|
| Account Balances, Net of Reinsurance – End-of-Period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Variable account balances without GLBs | $ | 66,538 |
| $ | 59,128 |
| $ | 57,720 |
| $ | 61,872 |
|
| $ | 69,572 |
| $ | 61,872 |
| -11.1% |
|
| Variable account balances with GLBs |
| 78,837 |
|
| 68,468 |
|
| 64,057 |
|
| 65,877 |
|
|
| 86,234 |
|
| 65,877 |
| -23.6% |
|
| Fixed account balances |
| 14,557 |
|
| 14,469 |
|
| 14,810 |
|
| 14,989 |
|
|
| 14,692 |
|
| 14,989 |
| 2.0% |
|
| Total account balances |
| 159,932 |
|
| 142,065 |
|
| 136,587 |
|
| 142,738 |
|
|
| 170,498 |
|
| 142,738 |
|
|
|
| Percent variable account balances with GLBs |
| 49.3% |
|
| 48.2% |
|
| 46.9% |
|
| 46.2% |
|
|
| 50.6% |
|
| 46.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Presented net of GLB and GDB hedge allowance (see after-tax hedge allowance amounts on page 16). |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Group Protection – Select Earnings and Operational Data |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of or For the Three Months Ended |
|
| As of or For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Income (Loss) from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance premiums | $ | 1,169 |
| $ | 1,187 |
| $ | 1,200 |
| $ | 1,213 |
|
| $ | 4,450 |
| $ | 4,768 |
| 7.1% |
|
| Net investment income |
| 85 |
|
| 86 |
|
| 83 |
|
| 81 |
|
|
| 365 |
|
| 333 |
| -8.8% |
|
| Other revenues |
| 49 |
|
| 50 |
|
| 50 |
|
| 52 |
|
|
| 180 |
|
| 202 |
| 12.2% |
|
| Total operating revenues |
| 1,303 |
|
| 1,323 |
|
| 1,333 |
|
| 1,346 |
|
|
| 4,995 |
|
| 5,303 |
| 6.2% |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits |
| 1,060 |
|
| 952 |
|
| 994 |
|
| 1,030 |
|
|
| 4,069 |
|
| 4,034 |
| -0.9% |
|
| Interest credited |
| 1 |
|
| 2 |
|
| 1 |
|
| 1 |
|
|
| 6 |
|
| 5 |
| -16.7% |
|
| Policyholder liability remeasurement (gain) loss |
| (22) |
|
| (11) |
|
| (22) |
|
| (48) |
|
|
| (163) |
|
| (103) |
| 36.8% |
|
| Commissions incurred |
| 94 |
|
| 96 |
|
| 101 |
|
| 103 |
|
|
| 361 |
|
| 394 |
| 9.1% |
|
| Other expenses incurred |
| 217 |
|
| 214 |
|
| 235 |
|
| 223 |
|
|
| 850 |
|
| 889 |
| 4.6% |
|
| Amounts capitalized |
| (21) |
|
| (24) |
|
| (23) |
|
| (29) |
|
|
| (91) |
|
| (99) |
| -8.8% |
|
| Amortization |
| 32 |
|
| 32 |
|
| 32 |
|
| 33 |
|
|
| 171 |
|
| 131 |
| -23.4% |
|
| Total operating expenses |
| 1,361 |
|
| 1,261 |
|
| 1,318 |
|
| 1,313 |
|
|
| 5,203 |
|
| 5,251 |
| 0.9% |
|
| Income (loss) from operations before taxes |
| (58) |
|
| 62 |
|
| 15 |
|
| 33 |
|
|
| (208) |
|
| 52 |
| 125.0% |
|
| Federal income tax expense (benefit) |
| (12) |
|
| 13 |
|
| 3 |
|
| 7 |
|
|
| (44) |
|
| 11 |
| 125.0% |
|
| Income (loss) from operations | $ | (46) |
| $ | 49 |
| $ | 12 |
| $ | 26 |
|
| $ | (164) |
| $ | 41 |
| 125.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective Federal Income Tax Rate |
| 21.0% |
|
| 21.0% |
|
| 21.0% |
|
| 21.0% |
|
|
| 21.0% |
|
| 21.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss Ratios by Product Line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life |
| 91.1% |
|
| 80.6% |
|
| 71.8% |
|
| 74.8% |
|
|
| 98.6% |
|
| 79.5% |
|
|
|
| Disability |
| 88.8% |
|
| 78.7% |
|
| 87.7% |
|
| 85.7% |
|
|
| 82.0% |
|
| 85.2% |
|
|
|
| Dental |
| 71.1% |
|
| 76.9% |
|
| 72.0% |
|
| 74.0% |
|
|
| 76.3% |
|
| 73.5% |
|
|
|
| Total |
| 88.9% |
|
| 79.3% |
|
| 81.0% |
|
| 81.1% |
|
|
| 87.9% |
|
| 82.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Retirement Plan Services – Select Earnings and Operational Data |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of or For the Three Months Ended |
|
| As of or For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Income (Loss) from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fee income | $ | 70 |
| $ | 65 |
| $ | 64 |
| $ | 63 |
|
| $ | 296 |
| $ | 261 |
| -11.8% |
|
| Net investment income |
| 238 |
|
| 241 |
|
| 244 |
|
| 253 |
|
|
| 990 |
|
| 976 |
| -1.4% |
|
| Other revenues |
| 10 |
|
| 9 |
|
| 8 |
|
| 9 |
|
|
| 36 |
|
| 37 |
| 2.8% |
|
| Total operating revenues |
| 318 |
|
| 315 |
|
| 316 |
|
| 325 |
|
|
| 1,322 |
|
| 1,274 |
| -3.6% |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest credited |
| 152 |
|
| 155 |
|
| 161 |
|
| 161 |
|
|
| 616 |
|
| 629 |
| 2.1% |
|
| Commissions incurred |
| 20 |
|
| 18 |
|
| 20 |
|
| 21 |
|
|
| 84 |
|
| 79 |
| -6.0% |
|
| Other expenses incurred |
| 79 |
|
| 75 |
|
| 83 |
|
| 83 |
|
|
| 325 |
|
| 321 |
| -1.2% |
|
| Amounts capitalized |
| (5) |
|
| (5) |
|
| (6) |
|
| (5) |
|
|
| (22) |
|
| (20) |
| 9.1% |
|
| Amortization |
| 5 |
|
| 6 |
|
| 5 |
|
| 4 |
|
|
| 19 |
|
| 18 |
| -5.3% |
|
| Total operating expenses |
| 251 |
|
| 249 |
|
| 263 |
|
| 264 |
|
|
| 1,022 |
|
| 1,027 |
| 0.5% |
|
| Income (loss) from operations before taxes |
| 67 |
|
| 66 |
|
| 53 |
|
| 61 |
|
|
| 300 |
|
| 247 |
| -17.7% |
|
| Federal income tax expense (benefit) |
| 9 |
|
| 11 |
|
| 6 |
|
| 9 |
|
|
| 52 |
|
| 36 |
| -30.8% |
|
| Income (loss) from operations | $ | 58 |
| $ | 55 |
| $ | 47 |
| $ | 52 |
|
| $ | 248 |
| $ | 211 |
| -14.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective Federal Income Tax Rate |
| 14.0% |
|
| 15.6% |
|
| 12.3% |
|
| 15.0% |
|
|
| 17.4% |
|
| 14.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on Average Account Balances |
| 24 |
|
| 24 |
|
| 21 |
|
| 24 |
|
|
| 26 |
|
| 23 |
| (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pre-tax Net Margin |
| 40.4% |
|
| 41.1% |
|
| 34.2% |
|
| 37.1% |
|
|
| 42.5% |
|
| 38.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Flows by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Small Market | $ | (116) |
| $ | 80 |
| $ | 157 |
| $ | 174 |
|
| $ | 133 |
| $ | 295 |
| 121.8% |
|
| Mid - Large Market |
| 1,331 |
|
| 1,073 |
|
| 899 |
|
| 298 |
|
|
| 1,573 |
|
| 3,601 |
| 128.9% |
|
| Multi-Fund® and Other |
| (288) |
|
| (240) |
|
| (251) |
|
| (421) |
|
|
| (1,467) |
|
| (1,200) |
| 18.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Flows – Trailing Twelve Months | $ | 931 |
| $ | 1,394 |
| $ | 2,199 |
| $ | 2,696 |
|
| $ | 239 |
| $ | 2,696 |
| NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Other Operations – Select Earnings and Operational Data |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Other Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance premiums | $ | 1 |
| $ | 3 |
| $ | 2 |
| $ | 2 |
|
| $ | 19 |
| $ | 8 |
| -57.9% |
|
| Net investment income |
| 41 |
|
| 40 |
|
| 35 |
|
| 39 |
|
|
| 148 |
|
| 155 |
| 4.7% |
|
| Other revenues |
| (2) |
|
| (9) |
|
| (1) |
|
| 6 |
|
|
| 14 |
|
| (6) |
| NM |
|
| Total operating revenues |
| 40 |
|
| 34 |
|
| 36 |
|
| 47 |
|
|
| 181 |
|
| 157 |
| -13.3% |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits |
| 12 |
|
| 14 |
|
| 20 |
|
| 19 |
|
|
| 76 |
|
| 64 |
| -15.8% |
|
| Interest credited |
| 12 |
|
| 9 |
|
| 9 |
|
| 8 |
|
|
| 42 |
|
| 39 |
| -7.1% |
|
| Policyholder liability remeasurement (gain) loss |
| 1 |
|
| 2 |
|
| - |
|
| 2 |
|
|
| 1 |
|
| 3 |
| 200.0% |
|
| Commissions and other expenses |
| 12 |
|
| 2 |
|
| 28 |
|
| 160 |
|
|
| 189 |
|
| 203 |
| 7.4% |
|
| Interest and debt expense |
| 66 |
|
| 68 |
|
| 71 |
|
| 77 |
|
|
| 262 |
|
| 283 |
| 8.0% |
|
| Spark program expense |
| 31 |
|
| 43 |
|
| 44 |
|
| 49 |
|
|
| 87 |
|
| 167 |
| 92.0% |
|
| Total operating expenses |
| 134 |
|
| 138 |
|
| 172 |
|
| 315 |
|
|
| 657 |
|
| 759 |
| 15.5% |
|
| Income (loss) from operations before taxes |
| (94) |
|
| (104) |
|
| (136) |
|
| (268) |
|
|
| (476) |
|
| (602) |
| -26.5% |
|
| Federal income tax expense (benefit) |
| (16) |
|
| (17) |
|
| (24) |
|
| (58) |
|
|
| (105) |
|
| (116) |
| -10.5% |
|
| Income (loss) from operations | $ | (78) |
| $ | (87) |
| $ | (112) |
| $ | (210) |
|
| $ | (371) |
| $ | (486) |
| -31.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Life Insurance – Account Balance Roll Forwards |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| General Account |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 38,200 |
| $ | 38,005 |
| $ | 37,791 |
| $ | 37,691 |
|
| $ | 38,185 |
| $ | 38,200 |
| 0.0% |
|
| Gross deposits |
| 913 |
|
| 935 |
|
| 963 |
|
| 1,105 |
|
|
| 3,942 |
|
| 3,916 |
| -0.7% |
|
| Withdrawals and deaths |
| (331) |
|
| (300) |
|
| (284) |
|
| (328) |
|
|
| (1,210) |
|
| (1,244) |
| -2.8% |
|
| Net flows |
| 582 |
|
| 635 |
|
| 679 |
|
| 777 |
|
|
| 2,732 |
|
| 2,672 |
| -2.2% |
|
| Transfers between general and separate accounts |
| (6) |
|
| 34 |
|
| (12) |
|
| (14) |
|
|
| 117 |
|
| 2 |
|
|
|
| Policyholder assessments |
| (1,113) |
|
| (1,121) |
|
| (1,123) |
|
| (1,138) |
|
|
| (4,457) |
|
| (4,496) |
| -0.9% |
|
| Reinvested interest credited |
| 405 |
|
| 348 |
|
| 341 |
|
| 344 |
|
|
| 1,604 |
|
| 1,439 |
| -10.3% |
|
| Change in fair value of embedded derivative |
| (63) |
|
| (110) |
|
| 15 |
|
| 34 |
|
|
| 19 |
|
| (123) |
|
|
|
| Balance as of end-of-period, gross |
| 38,005 |
|
| 37,791 |
|
| 37,691 |
|
| 37,694 |
|
|
| 38,200 |
|
| 37,694 |
| -1.3% |
|
| Account balances reinsured |
| (5,572) |
|
| (5,584) |
|
| (5,575) |
|
| (5,558) |
|
|
| (5,583) |
|
| (5,558) |
| 0.4% |
|
| Balance as of end-of-period, net | $ | 32,433 |
| $ | 32,207 |
| $ | 32,116 |
| $ | 32,136 |
|
| $ | 32,617 |
| $ | 32,136 |
| -1.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Separate Account |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 24,785 |
| $ | 23,376 |
| $ | 20,327 |
| $ | 19,382 |
|
| $ | 20,952 |
| $ | 24,785 |
| 18.3% |
|
| Gross deposits |
| 438 |
|
| 524 |
|
| 443 |
|
| 495 |
|
|
| 1,786 |
|
| 1,900 |
| 6.4% |
|
| Withdrawals and deaths |
| (109) |
|
| (96) |
|
| (120) |
|
| (128) |
|
|
| (441) |
|
| (454) |
| -2.9% |
|
| Net flows |
| 329 |
|
| 428 |
|
| 323 |
|
| 367 |
|
|
| 1,345 |
|
| 1,446 |
| 7.5% |
|
| Transfers between general and separate accounts |
| 7 |
|
| (34) |
|
| 12 |
|
| 14 |
|
|
| (117) |
|
| (2) |
|
|
|
| Policyholder assessments |
| (225) |
|
| (233) |
|
| (236) |
|
| (244) |
|
|
| (865) |
|
| (938) |
| -8.4% |
|
| Change in market value and reinvestment |
| (1,520) |
|
| (3,210) |
|
| (1,044) |
|
| 1,401 |
|
|
| 3,470 |
|
| (4,371) |
| NM |
|
| Balance as of end-of-period, gross |
| 23,376 |
|
| 20,327 |
|
| 19,382 |
|
| 20,920 |
|
|
| 24,785 |
|
| 20,920 |
| -15.6% |
|
| Account balances reinsured |
| (5,215) |
|
| (4,498) |
|
| (4,209) |
|
| (4,421) |
|
|
| (5,593) |
|
| (4,421) |
| 21.0% |
|
| Balance as of end-of-period, net | $ | 18,161 |
| $ | 15,829 |
| $ | 15,173 |
| $ | 16,499 |
|
| $ | 19,192 |
| $ | 16,499 |
| -14.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 62,985 |
| $ | 61,381 |
| $ | 58,118 |
| $ | 57,073 |
|
| $ | 59,137 |
| $ | 62,985 |
| 6.5% |
|
| Gross deposits |
| 1,351 |
|
| 1,459 |
|
| 1,406 |
|
| 1,600 |
|
|
| 5,728 |
|
| 5,816 |
| 1.5% |
|
| Withdrawals and deaths |
| (440) |
|
| (396) |
|
| (404) |
|
| (456) |
|
|
| (1,651) |
|
| (1,698) |
| -2.8% |
|
| Net flows |
| 911 |
|
| 1,063 |
|
| 1,002 |
|
| 1,144 |
|
|
| 4,077 |
|
| 4,118 |
| 1.0% |
|
| Policyholder assessments |
| (1,338) |
|
| (1,354) |
|
| (1,359) |
|
| (1,382) |
|
|
| (5,322) |
|
| (5,434) |
| -2.1% |
|
| Change in market value and reinvestment |
| (1,115) |
|
| (2,862) |
|
| (703) |
|
| 1,745 |
|
|
| 5,074 |
|
| (2,932) |
| NM |
|
| Change in fair value of embedded derivative |
| (63) |
|
| (110) |
|
| 15 |
|
| 34 |
|
|
| 19 |
|
| (123) |
| NM |
|
| Balance as of end-of-period, gross |
| 61,381 |
|
| 58,118 |
|
| 57,073 |
|
| 58,614 |
|
|
| 62,985 |
|
| 58,614 |
| -6.9% |
|
| Account balances reinsured |
| (10,787) |
|
| (10,082) |
|
| (9,784) |
|
| (9,979) |
|
|
| (11,176) |
|
| (9,979) |
| 10.7% |
|
| Balance as of end-of-period, net | $ | 50,594 |
| $ | 48,036 |
| $ | 47,289 |
| $ | 48,635 |
|
| $ | 51,809 |
| $ | 48,635 |
| -6.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Annuities – Account Balance Roll Forwards |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Fixed Annuities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 22,552 |
| $ | 22,307 |
| $ | 22,099 |
| $ | 22,670 |
|
| $ | 23,168 |
| $ | 22,552 |
| -2.7% |
|
| Gross deposits |
| 373 |
|
| 523 |
|
| 1,137 |
|
| 1,252 |
|
|
| 1,023 |
|
| 3,284 |
| 221.0% |
|
| Full surrenders and deaths |
| (420) |
|
| (457) |
|
| (489) |
|
| (547) |
|
|
| (1,879) |
|
| (1,913) |
| -1.8% |
|
| Other contract benefits |
| (143) |
|
| (144) |
|
| (134) |
|
| (181) |
|
|
| (502) |
|
| (601) |
| -19.7% |
|
| Net flows |
| (190) |
|
| (78) |
|
| 514 |
|
| 524 |
|
|
| (1,358) |
|
| 770 |
| 156.7% |
|
| Policyholder assessments |
| (15) |
|
| (13) |
|
| (10) |
|
| (12) |
|
|
| (84) |
|
| (51) |
| 39.3% |
|
| Reinvested interest credited |
| 124 |
|
| 131 |
|
| 134 |
|
| 143 |
|
|
| 508 |
|
| 532 |
| 4.7% |
|
| Change in fair value of embedded derivative |
| (164) |
|
| (248) |
|
| (67) |
|
| 40 |
|
|
| 318 |
|
| (438) |
| NM |
|
| Balance as of end-of-period, gross |
| 22,307 |
|
| 22,099 |
|
| 22,670 |
|
| 23,365 |
|
|
| 22,552 |
|
| 23,365 |
| 3.6% |
|
| Account balances reinsured |
| (7,750) |
|
| (7,630) |
|
| (7,860) |
|
| (8,376) |
|
|
| (7,860) |
|
| (8,376) |
| -6.6% |
|
| Balance as of end-of-period, net | $ | 14,557 |
| $ | 14,469 |
| $ | 14,810 |
| $ | 14,989 |
|
| $ | 14,692 |
| $ | 14,989 |
| 2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Variable Annuities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 155,813 |
| $ | 145,382 |
| $ | 127,604 |
| $ | 121,785 |
|
| $ | 140,266 |
| $ | 155,813 |
| 11.1% |
|
| Gross deposits |
| 2,331 |
|
| 2,178 |
|
| 2,095 |
|
| 1,946 |
|
|
| 10,716 |
|
| 8,548 |
| -20.2% |
|
| Full surrenders and deaths |
| (1,567) |
|
| (1,366) |
|
| (1,302) |
|
| (1,210) |
|
|
| (7,505) |
|
| (5,444) |
| 27.5% |
|
| Other contract benefits |
| (1,099) |
|
| (1,019) |
|
| (985) |
|
| (1,108) |
|
|
| (4,304) |
|
| (4,211) |
| 2.2% |
|
| Net flows |
| (335) |
|
| (207) |
|
| (192) |
|
| (372) |
|
|
| (1,093) |
|
| (1,107) |
| -1.3% |
|
| Policyholder assessments |
| (692) |
|
| (655) |
|
| (638) |
|
| (619) |
|
|
| (2,838) |
|
| (2,605) |
| 8.2% |
|
| Change in market value and reinvestment |
| (9,007) |
|
| (14,974) |
|
| (4,651) |
|
| 5,804 |
|
|
| 17,281 |
|
| (22,826) |
| NM |
|
| Change in fair value of embedded derivative |
| (397) |
|
| (1,942) |
|
| (338) |
|
| 1,159 |
|
|
| 2,197 |
|
| (1,518) |
| NM |
|
| Balance as of end-of-period, gross |
| 145,382 |
|
| 127,604 |
|
| 121,785 |
|
| 127,757 |
|
|
| 155,813 |
|
| 127,757 |
| -18.0% |
|
| Account balances reinsured |
| (7) |
|
| (8) |
|
| (8) |
|
| (8) |
|
|
| (7) |
|
| (8) |
| -14.3% |
|
| Balance as of end-of-period, net | $ | 145,375 |
| $ | 127,596 |
| $ | 121,777 |
| $ | 127,749 |
|
| $ | 155,806 |
| $ | 127,749 |
| -18.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 178,365 |
| $ | 167,689 |
| $ | 149,703 |
| $ | 144,455 |
|
| $ | 163,434 |
| $ | 178,365 |
| 9.1% |
|
| Gross deposits |
| 2,704 |
|
| 2,701 |
|
| 3,232 |
|
| 3,198 |
|
|
| 11,739 |
|
| 11,832 |
| 0.8% |
|
| Full surrenders and deaths |
| (1,987) |
|
| (1,823) |
|
| (1,791) |
|
| (1,757) |
|
|
| (9,384) |
|
| (7,357) |
| 21.6% |
|
| Other contract benefits |
| (1,242) |
|
| (1,163) |
|
| (1,119) |
|
| (1,289) |
|
|
| (4,806) |
|
| (4,812) |
| -0.1% |
|
| Net flows |
| (525) |
|
| (285) |
|
| 322 |
|
| 152 |
|
|
| (2,451) |
|
| (337) |
| 86.3% |
|
| Policyholder assessments |
| (707) |
|
| (668) |
|
| (648) |
|
| (631) |
|
|
| (2,922) |
|
| (2,656) |
| 9.1% |
|
| Change in market value and reinvestment |
| (8,883) |
|
| (14,843) |
|
| (4,517) |
|
| 5,947 |
|
|
| 17,789 |
|
| (22,294) |
| NM |
|
| Change in fair value of embedded derivative |
| (561) |
|
| (2,190) |
|
| (405) |
|
| 1,199 |
|
|
| 2,515 |
|
| (1,956) |
| NM |
|
| Balance as of end-of-period, gross |
| 167,689 |
|
| 149,703 |
|
| 144,455 |
|
| 151,122 |
|
|
| 178,365 |
|
| 151,122 |
| -15.3% |
|
| Account balances reinsured |
| (7,757) |
|
| (7,638) |
|
| (7,868) |
|
| (8,384) |
|
|
| (7,867) |
|
| (8,384) |
| -6.6% |
|
| Balance as of end-of-period, net | $ | 159,932 |
| $ | 142,065 |
| $ | 136,587 |
| $ | 142,738 |
|
| $ | 170,498 |
| $ | 142,738 |
| -16.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Retirement Plan Services – Account Balance Roll Forwards |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| General Account |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 23,579 |
| $ | 23,958 |
| $ | 24,917 |
| $ | 25,276 |
|
| $ | 22,916 |
| $ | 23,579 |
| 2.9% |
|
| Gross deposits |
| 842 |
|
| 1,389 |
|
| 994 |
|
| 787 |
|
|
| 3,121 |
|
| 4,012 |
| 28.5% |
|
| Withdrawals |
| (844) |
|
| (743) |
|
| (873) |
|
| (1,119) |
|
|
| (3,474) |
|
| (3,579) |
| -3.0% |
|
| Net flows |
| (2) |
|
| 646 |
|
| 121 |
|
| (332) |
|
|
| (353) |
|
| 433 |
| 222.7% |
|
| Transfers between fixed and variable accounts |
| 234 |
|
| 161 |
|
| 79 |
|
| 36 |
|
|
| 414 |
|
| 510 |
| 23.2% |
|
| Policyholder assessments |
| (3) |
|
| (3) |
|
| (3) |
|
| (3) |
|
|
| (14) |
|
| (13) |
| 7.1% |
|
| Reinvested interest credited |
| 150 |
|
| 155 |
|
| 162 |
|
| 161 |
|
|
| 616 |
|
| 629 |
| 2.1% |
|
| Balance as of end-of-period | $ | 23,958 |
| $ | 24,917 |
| $ | 25,276 |
| $ | 25,138 |
|
| $ | 23,579 |
| $ | 25,138 |
| 6.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Separate Account and Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 75,465 |
| $ | 71,376 |
| $ | 61,782 |
| $ | 59,064 |
|
| $ | 65,381 |
| $ | 75,465 |
| 15.4% |
|
| Gross deposits |
| 2,795 |
|
| 1,811 |
|
| 2,097 |
|
| 2,186 |
|
|
| 8,514 |
|
| 8,890 |
| 4.4% |
|
| Withdrawals |
| (1,866) |
|
| (1,544) |
|
| (1,413) |
|
| (1,803) |
|
|
| (7,922) |
|
| (6,627) |
| 16.3% |
|
| Net flows |
| 929 |
|
| 267 |
|
| 684 |
|
| 383 |
|
|
| 592 |
|
| 2,263 |
| 282.3% |
|
| Transfers between fixed and variable accounts |
| (231) |
|
| (166) |
|
| (42) |
|
| (55) |
|
|
| (417) |
|
| (493) |
| -18.2% |
|
| Policyholder assessments |
| (64) |
|
| (60) |
|
| (57) |
|
| (57) |
|
|
| (260) |
|
| (238) |
| 8.5% |
|
| Change in market value and reinvestment |
| (4,723) |
|
| (9,635) |
|
| (3,303) |
|
| 4,257 |
|
|
| 10,169 |
|
| (13,405) |
| NM |
|
| Balance as of end-of-period | $ | 71,376 |
| $ | 61,782 |
| $ | 59,064 |
| $ | 63,592 |
|
| $ | 75,465 |
| $ | 63,592 |
| -15.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of beginning-of-period | $ | 99,044 |
| $ | 95,334 |
| $ | 86,699 |
| $ | 84,340 |
|
| $ | 88,297 |
| $ | 99,044 |
| 12.2% |
|
| Gross deposits |
| 3,637 |
|
| 3,200 |
|
| 3,091 |
|
| 2,973 |
|
|
| 11,635 |
|
| 12,902 |
| 10.9% |
|
| Withdrawals |
| (2,710) |
|
| (2,287) |
|
| (2,286) |
|
| (2,922) |
|
|
| (11,396) |
|
| (10,206) |
| 10.4% |
|
| Net flows |
| 927 |
|
| 913 |
|
| 805 |
|
| 51 |
|
|
| 239 |
|
| 2,696 |
| NM |
|
| Transfers between fixed and variable accounts |
| 3 |
|
| (5) |
|
| 37 |
|
| (19) |
|
|
| (3) |
|
| 17 |
| NM |
|
| Policyholder assessments |
| (67) |
|
| (63) |
|
| (60) |
|
| (60) |
|
|
| (274) |
|
| (251) |
| 8.4% |
|
| Change in market value and reinvestment |
| (4,573) |
|
| (9,480) |
|
| (3,141) |
|
| 4,418 |
|
|
| 10,785 |
|
| (12,776) |
| NM |
|
| Balance as of end-of-period | $ | 95,334 |
| $ | 86,699 |
| $ | 84,340 |
| $ | 88,730 |
|
| $ | 99,044 |
| $ | 88,730 |
| -10.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Select GAAP to Non-GAAP Reconciliations |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) | $ | 1,480 |
| $ | 840 |
| $ | (1,775) |
| $ | 812 |
|
| $ | 3,778 |
| $ | 1,358 |
| -64.1% |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MRB-related impacts, after-tax |
| 1,062 |
|
| (399) |
|
| 612 |
|
| 1,219 |
|
|
| 2,938 |
|
| 2,495 |
| -15.1% |
|
| Excluded realized gain (loss), after-tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in CECL reserve for mortgage loans on real estate |
| 14 |
|
| (3) |
|
| (7) |
|
| (6) |
|
|
| 88 |
|
| (2) |
| NM |
|
| Changes in CECL reserve for reinsurance-related assets |
| (1) |
|
| 3 |
|
| (93) |
|
| 2 |
|
|
| 5 |
|
| (89) |
| NM |
|
| Changes in the credit loss allowance for fixed maturity AFS securities |
| (1) |
|
| (3) |
|
| (4) |
|
| (4) |
|
|
| (7) |
|
| (12) |
| -71.4% |
|
| Changes in investments and reinsurance-related embedded derivatives |
| (12) |
|
| (17) |
|
| 20 |
|
| 10 |
|
|
| 574 |
|
| 1 |
| -99.8% |
|
| Changes in fair value of GLB and GDB hedge instruments |
| (103) |
|
| 716 |
|
| 154 |
|
| (659) |
|
|
| (1,986) |
|
| 108 |
| 105.4% |
|
| GLB and GDB hedge allowance |
| 161 |
|
| 152 |
|
| 148 |
|
| 143 |
|
|
| 629 |
|
| 604 |
| -4.0% |
|
| Changes in fair value of indexed product liabilities |
| 396 |
|
| 1,749 |
|
| 301 |
|
| (949) |
|
|
| (2,092) |
|
| 1,498 |
| 171.6% |
|
| Changes in fair value of indexed product hedge instruments |
| (310) |
|
| (1,726) |
|
| (321) |
|
| 918 |
|
|
| 2,109 |
|
| (1,439) |
| NM |
|
| Total excluded realized gain (loss), after-tax |
| 144 |
|
| 871 |
|
| 198 |
|
| (545) |
|
|
| (680) |
|
| 669 |
| 198.4% |
|
| Benefit ratio unlocking, after-tax |
| - |
|
| (6) |
|
| (2) |
|
| 4 |
|
|
| - |
|
| (5) |
| NM |
|
| Impairment of intangibles |
| - |
|
| - |
|
| (634) |
|
| - |
|
|
| - |
|
| (634) |
| NM |
|
| Transaction and integration costs related to mergers, acquisitions and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| divestitures, after-tax |
| - |
|
| - |
|
| - |
|
| - |
|
|
| (11) |
|
| - |
| 100.0% |
|
| Gain (loss) on modification or early extinguishment of debt, after-tax |
| - |
|
| - |
|
| - |
|
| - |
|
|
| (6) |
|
| - |
| 100.0% |
|
| Total adjustments |
| 1,206 |
|
| 466 |
|
| 174 |
|
| 678 |
|
|
| 2,241 |
|
| 2,525 |
|
|
|
| Adjusted income (loss) from operations | $ | 274 |
| $ | 374 |
| $ | (1,949) |
| $ | 134 |
|
| $ | 1,537 |
| $ | (1,167) |
| NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Select GAAP to Non-GAAP Reconciliations |
| ||||||||||||||||||||
| Unaudited (millions of dollars) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues | $ | 4,720 |
| $ | 5,577 |
| $ | 4,672 |
| $ | 3,841 |
|
| $ | 17,715 |
| $ | 18,810 |
| 6.2% |
|
| Less: Excluded realized gain (loss), pre-tax |
| 183 |
|
| 1,103 |
|
| 251 |
|
| (690) |
|
|
| (861) |
|
| 847 |
| 198.4% |
|
| Adjusted operating revenues | $ | 4,537 |
| $ | 4,474 |
| $ | 4,421 |
| $ | 4,531 |
|
| $ | 18,576 |
| $ | 17,963 |
| -3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (Loss) Per Common Share – Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) | $ | 8.39 |
| $ | 4.83 |
| $ | (10.47) |
| $ | 4.73 |
|
| $ | 19.96 |
| $ | 7.78 |
| -61.0% |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MRB-related impacts, after-tax |
| 6.02 |
|
| (2.30) |
|
| 3.60 |
|
| 7.14 |
|
|
| 15.52 |
|
| 14.45 |
| -6.9% |
|
| Excluded realized gain (loss), after-tax |
| 0.82 |
|
| 5.04 |
|
| 1.17 |
|
| (3.19) |
|
|
| (3.60) |
|
| 3.87 |
| 207.5% |
|
| Benefit ratio unlocking, after-tax |
| - |
|
| (0.04) |
|
| (0.02) |
|
| 0.02 |
|
|
| - |
|
| (0.04) |
| NM |
|
| Impairment of intangibles |
| - |
|
| - |
|
| (3.73) |
|
| - |
|
|
| - |
|
| (3.67) |
| NM |
|
| Transaction and integration costs related to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NM |
|
| mergers, acquisitions and divestitures, after-tax |
| - |
|
| - |
|
| - |
|
| - |
|
|
| (0.06) |
|
| - |
| 100.0% |
|
| Gain (loss) on modification or early extinguishment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| of debt, after-tax |
| - |
|
| - |
|
| - |
|
| - |
|
|
| (0.03) |
|
| - |
| 100.0% |
|
| Other adjustments(1) |
| - |
|
| - |
|
| - |
|
| - |
|
|
| - |
|
| 0.07 |
| NM |
|
| Adjusted income (loss) from operations | $ | 1.55 |
| $ | 2.13 |
| $ | (11.49) |
| $ | 0.76 |
|
| $ | 8.13 |
| $ | (6.90) |
| NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of diluted shares |
| ||||||||||||||||||||
| would result in a lower loss per share. Due to reporting adjusted loss from operations per common share on a different share basis than net income per common share, we have |
| ||||||||||||||||||||
| included an adjustment to reconcile the two metrics. |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lincoln Financial Group |
| ||||||||||||||||||||
| Select GAAP to Non-GAAP Reconciliations |
| ||||||||||||||||||||
| Unaudited (millions of dollars, except per share data) |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| ||||||||||||||||
|
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
|
| 12/31/21 |
| 12/31/22 |
| Change |
| ||||||
| Stockholders’ Equity, End-of-Period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ equity | $ | 14,255 |
| $ | 9,331 |
| $ | 2,783 |
| $ | 5,102 |
|
| $ | 19,915 |
| $ | 5,102 |
| -74.4% |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock |
| - |
|
| - |
|
| - |
|
| 986 |
|
|
| - |
|
| 986 |
| NM |
|
| AOCI |
| 3,315 |
|
| (2,280) |
|
| (6,940) |
|
| (6,352) |
|
|
| 9,984 |
|
| (6,352) |
| NM |
|
| Stockholders’ equity, excluding AOCI and preferred stock |
| 10,940 |
|
| 11,611 |
|
| 9,723 |
|
| 10,468 |
|
|
| 9,931 |
|
| 10,468 |
| 5.4% |
|
| MRB-related impacts |
| (2,085) |
|
| (2,483) |
|
| (1,872) |
|
| (652) |
|
|
| (3,147) |
|
| (652) |
| 79.3% |
|
| GLB and GDB hedged instruments gains (losses)(1) |
| N/A |
|
| N/A |
|
| N/A |
|
| N/A |
|
|
| N/A |
|
| N/A |
|
|
|
| Adjusted stockholders' equity | $ | 13,025 |
| $ | 14,094 |
| $ | 11,595 |
| $ | 11,120 |
|
| $ | 13,078 |
| $ | 11,120 |
| -15.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ Equity, Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity | $ | 17,085 |
| $ | 11,793 |
| $ | 6,057 |
| $ | 3,943 |
|
| $ | 19,241 |
| $ | 9,719 |
| -49.5% |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock |
| - |
|
| - |
|
| - |
|
| 493 |
|
|
| - |
|
| 123 |
| NM |
|
| AOCI |
| 6,650 |
|
| 518 |
|
| (4,610) |
|
| (6,646) |
|
|
| 10,809 |
|
| (1,022) |
| NM |
|
| Stockholders’ equity, excluding AOCI and preferred stock |
| 10,435 |
|
| 11,275 |
|
| 10,667 |
|
| 10,096 |
|
|
| 8,432 |
|
| 10,618 |
| 25.9% |
|
| MRB-related impacts |
| (2,616) |
|
| (2,284) |
|
| (2,177) |
|
| (1,262) |
|
|
| (4,617) |
|
| (2,085) |
| 54.8% |
|
| GLB and GDB hedged instruments gains (losses)(1) |
| N/A |
|
| N/A |
|
| N/A |
|
| N/A |
|
|
| N/A |
|
| N/A |
|
|
|
| Adjusted average stockholders' equity | $ | 13,051 |
| $ | 13,559 |
| $ | 12,844 |
| $ | 11,358 |
|
| $ | 13,049 |
| $ | 12,703 |
| -2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book Value Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share | $ | 82.93 |
| $ | 54.81 |
| $ | 16.45 |
| $ | 24.32 |
|
| $ | 112.39 |
| $ | 24.32 |
| -78.4% |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AOCI |
| 19.29 |
|
| (13.40) |
|
| (41.01) |
|
| (37.54) |
|
|
| 56.34 |
|
| (37.54) |
| NM |
|
| Book value per share, excluding AOCI |
| 63.64 |
|
| 68.21 |
|
| 57.46 |
|
| 61.86 |
|
|
| 56.05 |
|
| 61.86 |
| NM |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MRB-related gains (losses) |
| (12.13) |
|
| (14.57) |
|
| (11.07) |
|
| (3.86) |
|
|
| (17.76) |
|
| (3.86) |
| 78.3% |
|
| GLB and GDB hedged instruments gains (losses)(1) |
| N/A |
|
| N/A |
|
| N/A |
|
| N/A |
|
|
| N/A |
|
| N/A |
|
|
|
| Adjusted book value per share | $ | 75.77 |
| $ | 82.78 |
| $ | 68.53 |
| $ | 65.72 |
|
| $ | 73.81 |
| $ | 65.72 |
| -11.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedged instruments will be excluded from adjusted stockholders' equity to align to the updated hedge program. |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Page 18 |
|