{"id":8431,"date":"2018-05-02T16:15:22","date_gmt":"2018-05-02T20:15:22","guid":{"rendered":"http:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/?guid=dd1bdfcc95d6075eddd3c47d4b847c78"},"modified":"2018-05-02T16:15:22","modified_gmt":"2018-05-02T20:15:22","slug":"lincoln-financial-group-reports-1q-results","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2018\/05\/02\/lincoln-financial-group-reports-1q-results\/","title":{"rendered":"Lincoln Financial Group Reports 1Q Results"},"content":{"rendered":"<p class=\"bwalignc\"><i>Net income EPS of $1.64 and net income ROE, including AOCI, of 8.8%<\/i><\/p>\n<p class=\"bwalignc\"><i>Adjusted operating EPS of $1.97, up 3% or 14% excluding notable items in both periods<\/i><\/p>\n<p class=\"bwalignc\"><i>Adjusted operating ROE, excluding AOCI, of 13.0%<\/i><\/p>\n<p class=\"bwalignc\"><i>Book value per share (BVPS), including AOCI, of $73.09, up 10%; BVPS, excluding AOCI, of $62.88, up 8%<\/i><\/p>\n<p class=\"bwalignc\"><i>Completed Liberty Mutual group benefits acquisition<\/i><\/p>\n<p>RADNOR, Pa.&#8211;(BUSINESS WIRE)&#8211; Lincoln Financial Group (NYSE: LNC) today reported net income for the first quarter of 2018 of $367 million, or $1.64 per diluted share available to common stockholders, compared to net income in the first quarter of 2017 of $435 million, or $1.89 per diluted share available to common stockholders. First quarter adjusted income from operations was $441 million, or $1.97 per diluted share available to common stockholders, compared to $442 million, or $1.92 per diluted share available to common stockholders, in the first quarter of 2017.<\/p>\n<p>\u201cWe started the year strong with record first-quarter adjusted operating EPS and a 13% ROE as nearly every business segment reported double-digit growth in operating earnings,\u201d said Dennis R. Glass, president and CEO of Lincoln Financial Group. \u201cWe are pleased to have completed the acquisition of Liberty Mutual\u2019s group benefits business and we expect the continued strength of our capital position will enable us to resume share repurchases no later than the third quarter.\u201d<\/p>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwsinglebottom\" colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\"><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignm bwalignc\" colspan=\"5\"><b>As of or For the<\/b><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb1 bwvertalignb bwalignl\"><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignm bwalignc bwsinglebottom\" colspan=\"5\"><b>Quarter Ended March 31,<\/b><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl bwsinglebottom\">(in millions, except per share data)<\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\"><b>2018<\/b><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\"><b>2017<\/b><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Net Income (Loss)<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">367<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">435<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Net Income (Loss) Available to Common Stockholders<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">365<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">435<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Net Income (Loss) per Diluted Share Available to Common Stockholders<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.64<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.89<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Revenues<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">3,609<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">3,500<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Adjusted Income (Loss) from Operations<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">441<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">442<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Adjusted Income (Loss) from Operations per Diluted Share Available to Common Stockholders<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.97<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.92<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Average Diluted Shares<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">222.3<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">230.1<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">ROE, Including AOCI (Net Income)<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">8.8%<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">11.8%<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Adjusted Operating ROE, Excluding AOCI (Income from Operations)<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">13.0%<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">13.6%<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl\">Book Value per Share, Including AOCI<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">73.09<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">66.58<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignb bwalignl bwsinglebottom\">Book Value per Share, Excluding AOCI<\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">62.88<\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">58.37<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Operating Highlights \u2013 First Quarter 2018 versus First Quarter 2017<\/b><\/p>\n<ul>\n<li class=\"bwlistitemmargb\">Adjusted operating EPS, up 14% excluding notable items in both periods<\/li>\n<li class=\"bwlistitemmargb\">Pre-tax adjusted income from operations of $512 million, up 6%<\/li>\n<li class=\"bwlistitemmargb\">Annuity sales of $2.5 billion, up 25%<\/li>\n<li class=\"bwlistitemmargb\">Retirement Plan Services net flows of $463 million, up 228%<\/li>\n<li class=\"bwlistitemmargb\">Individual life insurance sales of $163 million, up 3%<\/li>\n<li class=\"bwlistitemmargb\">Group Protection loss ratio of 64%, a nearly 700 basis point improvement<\/li>\n<\/ul>\n<p>There were no notable items within adjusted income from operations for the current quarter. The prior-year quarter included $0.19 of favorable items related to one-time tax adjustments.<\/p>\n<p><b>First Quarter 2018 \u2013 Segment Results<\/b><\/p>\n<p><i><b>Annuities<\/b><\/i><\/p>\n<p>The Annuities segment reported income from operations of $267 million versus $281 million in the prior-year quarter, which benefitted from one-time tax adjustments. Excluding notable items, income from operations increased 11% driven by higher fee income as average account values grew 8% to $138 billion.<\/p>\n<p>Total annuity deposits of $2.5 billion were up 25% from the prior-year quarter, driven by growth in variable annuities. Variable annuity sales were up 40% versus the prior-year quarter benefitting from product and distribution expansion. Fixed annuity sales were down 12% versus the prior-year quarter. Net outflows improved to $606 million compared to outflows of $757 million in the prior-year quarter driven by growth in deposits.<\/p>\n<p>The current quarter included no notable items. The prior-year quarter included favorable items of $41 million related to the one-time tax adjustments.<\/p>\n<p><i><b>Retirement Plan Services<\/b><\/i><\/p>\n<p>Retirement Plan Services reported income from operations of $43 million, up 16% compared to the prior-year quarter. Earnings benefitted from a lower reported tax rate as a result of tax reform and higher fee income, which was partially offset by lower spread income.<\/p>\n<p>Total deposits for the quarter of $2.4 billion were up 5% versus the prior-year period, which included strong first-year sales and growth in recurring deposits.<\/p>\n<p>Net flows totaled $463 million in the quarter, a record and up from $141 million in the prior-year quarter. When combined with favorable equity market performance, average account values for the quarter increased 15% to $68 billion.<\/p>\n<p>The current quarter included no notable items. The prior-year quarter included a favorable item of $2 million related to a one-time tax adjustment.<\/p>\n<p><i><b>Life Insurance<\/b><\/i><\/p>\n<p>Life Insurance reported income from operations of $144 million, up 11% versus the prior-year quarter. This increase is attributable to a lower reported tax rate as a result of tax reform and in-force growth, partially offset by lower variable investment income. Mortality results were slightly favorable to seasonal expectations.<\/p>\n<p>Individual life sales of $163 million increased 3% versus the prior-year quarter driven by growth in VUL. Total Life Insurance sales were $173 million versus $181 million in the prior-year quarter as a result of lower Executive Benefits sales, which can fluctuate quarter to quarter.<\/p>\n<p>Total Life Insurance in-force of $725 billion grew 4% over the prior-year quarter, and average account values of $49 billion increased 7% over the prior-year quarter.<\/p>\n<p>The current quarter included no notable items. The prior-year quarter included a favorable item of $1 million related to a one-time tax adjustment.<\/p>\n<p><i><b>Group Protection<\/b><\/i><\/p>\n<p>Group Protection income from operations was $29 million in the quarter versus $7 million in the prior-year period. The increase in earnings was largely driven by improvement in the non-medical loss ratio. The total non-medical loss ratio improved to 64% in the current quarter from 71% in the prior-year period.<\/p>\n<p>Group Protection sales were $55 million in the quarter compared to $57 million in the prior-year quarter. Employee-paid sales represented 53% of total sales, in line with the prior-year period.<\/p>\n<p>Non-medical earned premiums were $508 million, up 3% from the prior-year quarter, driven by recent sales momentum and improving persistency.<\/p>\n<p><i><b>Other Operations<\/b><\/i><\/p>\n<p>Other Operations reported a loss from operations of $42 million versus a loss of $13 million in the prior-year quarter.<\/p>\n<p><b>Realized Gains and Losses \/ Impacts to Net Income<\/b><\/p>\n<p>Realized gains\/losses and impacts to net income (after-tax) in the quarter were predominantly driven by:<\/p>\n<ul>\n<li class=\"bwlistitemmargb\">A $20 million variable annuity net derivative loss.<\/li>\n<li class=\"bwlistitemmargb\">A $19 million loss on early extinguishment of debt.<\/li>\n<li class=\"bwlistitemmargb\">A $15 million net loss from general account investments.<\/li>\n<\/ul>\n<p><b>Unrealized Gains and Losses<\/b><\/p>\n<p>The company reported a net unrealized gain of $4.8 billion, pre-tax, on its available-for-sale securities at March 31, 2018. This compares to a net unrealized gain of $5.3 billion at March 31, 2017, with the year-over-year decline primarily driven by an increase in interest rates.<\/p>\n<p><b>Capital<\/b><\/p>\n<p>The quarter\u2019s average diluted share count of 222.3 million was down 3% from the first quarter of 2017, the result of repurchasing 7.5 million shares of stock at a cost of $525 million since March 31, 2017.<\/p>\n<p><b>Book Value<\/b><\/p>\n<p>As of March 31, 2018, book value per share, including accumulated other comprehensive income (\u201cAOCI\u201d), of $73.09 increased 10% from a year ago. Book value per share, excluding AOCI, of $62.88 increased 8% from the prior-year period.<\/p>\n<p>The tables attached to this release define and reconcile the Non-GAAP measures adjusted income from operations, adjusted operating return on equity (\u201cROE\u201d) and book value per share, excluding AOCI to net income, ROE and book value per share, including AOCI calculated in accordance with GAAP.<\/p>\n<p>This press release may contain statements that are forward-looking, and actual results may differ materially, especially given the current economic and capital market conditions. Please see the Forward Looking Statements \u2013 Cautionary Language that follow for additional factors that may cause actual results to differ materially from our current expectations.<\/p>\n<p>For other financial information, please refer to the company\u2019s first quarter 2018 statistical supplement available on its website, <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.lfg.com%2Fearnings&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=www.lfg.com%2Fearnings&amp;index=1&amp;md5=91e18758ac42824fe051eae48db4ef55\" rel=\"nofollow\">www.lfg.com\/earnings<\/a>.<\/p>\n<p>Lincoln Financial Group will discuss the company\u2019s first quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, May 3, 2018. Interested persons are invited to listen through the internet. Please go to <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.lfg.com%2Fwebcast&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=www.lfg.com%2Fwebcast&amp;index=2&amp;md5=ae015a3348dcb0f31522fd4070f68d73\" rel=\"nofollow\">www.lfg.com\/webcast<\/a> 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:<\/p>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Dial:<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">(866) 394-4575 (Domestic)<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">(678) 509-7536 (International)<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Ask for the Lincoln National Conference Call.<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Audio replay will begin by 1:00 p.m. Eastern Time on May 3, 2018, and it will remain available through 1:00 p.m. Eastern Time on May 10, 2018. To access the re-broadcast:<\/p>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">(855) 859-2056 (Domestic)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">(404) 537-3406 (International)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Enter conference code: 3243028<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A replay of the call will also be available by 1:00 p.m. Eastern Time on May 3, 2018 at <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.lfg.com%2Fwebcast&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=www.lfg.com%2Fwebcast&amp;index=3&amp;md5=455c89fc3d9e2b87c48a50ede496f867\" rel=\"nofollow\">www.lfg.com\/webcast<\/a>.<\/p>\n<p><!-- AMC BEGIN ABOUT --><\/p>\n<p><b>About Lincoln Financial Group<\/b><\/p>\n<p>Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $253 billion in assets under management as of March 31, 2018.\u00a0Lincoln Financial Group is a committed corporate citizen and was named one of the Forbes Best Employers for 2018, is a member of the Dow Jones Sustainability Index North America, and received a perfect score of 100 percent on the 2018 Corporate Equality Index.\u00a0Learn more at:\u00a0<a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.lincolnfinancial.com%2F&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=www.LincolnFinancial.com&amp;index=4&amp;md5=68c16e6b3011d317d8810bcfa313def2\" rel=\"nofollow\">www.LincolnFinancial.com<\/a>. Follow us on <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.facebook.com%2Flincolnfinancialgroup&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=Facebook&amp;index=5&amp;md5=9d248e12631ddbb50ebae573c7b70c69\" rel=\"nofollow\">Facebook<\/a>, <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fmobile.twitter.com%2Flincolnfingroup&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=Twitter&amp;index=6&amp;md5=723996551026ff75f088e94049f72743\" rel=\"nofollow\">Twitter<\/a>, <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2F4307%3FtrkInfo%3Dtas%253Alincoln%2Bfinancial%252Cidx%253A3-1-3%26trk%3Dtyah&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=LinkedIn&amp;index=7&amp;md5=9f839a184c92eacc445ae7b1fe47402e\" rel=\"nofollow\">LinkedIn<\/a>, and <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.instagram.com%2Flincolnfingroup%2F&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=Instagram&amp;index=8&amp;md5=cd34c9d742ff9e502538224a18b65a63\" rel=\"nofollow\">Instagram<\/a>. Sign up for email alerts at <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fnewsroom.lfg.com&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=http%3A%2F%2Fnewsroom.lfg.com&amp;index=9&amp;md5=92836894612d8ddd169f875a9e057ab0\" rel=\"nofollow\">http:\/\/newsroom.lfg.com<\/a>.<\/p>\n<p><span class=\"bwuline\"><b>Explanatory Notes on Use of Non-GAAP Measures<\/b><\/span><\/p>\n<p>Management believes that adjusted income from operations, adjusted operating return on equity and adjusted operating revenues better explain the results of the company\u2019s ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company\u2019s 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. Management also believes that using book value excluding accumulated other comprehensive income (AOCI) enables investors to analyze the amount of our net worth that is primarily attributable to our business operations. Book value per share excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.<\/p>\n<p>For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and\/or are included in the Statistical Reports for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: <a href=\"http:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.lfg.com%2Finvestor&amp;esheet=51800059&amp;newsitemid=20180502006566&amp;lan=en-US&amp;anchor=www.lfg.com%2Finvestor&amp;index=10&amp;md5=deba723e8eb44f90fad5a618c167c5c6\" rel=\"nofollow\">www.lfg.com\/investor<\/a>.<\/p>\n<p><span class=\"bwuline\"><b>Definitions of Non-GAAP Measures Used in this Press Release<\/b><\/span><\/p>\n<p>Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (including and excluding average goodwill within average equity), excluding AOCI, using annualized adjusted income (loss) from operations are financial measures we use to evaluate and assess our results. Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (\u201cROE\u201d), as used in the earnings release, are non-GAAP financial measures and do not replace GAAP net income (loss), revenues and ROE, the most directly comparable GAAP measures.<\/p>\n<p><b>Adjusted Income (Loss) from Operations<\/b><\/p>\n<p>We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at adjusted income (loss) from operations:<\/p>\n<ul>\n<li class=\"bwlistitemmargb\">Realized gains and losses associated with the following (&#8220;excluded realized gain (loss)&#8221;):\n<ul>\n<li class=\"bwlistitemmargb\">Sale or disposal of securities;<\/li>\n<li class=\"bwlistitemmargb\">Impairments of securities;<\/li>\n<li class=\"bwlistitemmargb\">Change in the fair value of derivative investments, embedded derivatives within certain reinsurance arrangements and our trading securities;<\/li>\n<li class=\"bwlistitemmargb\">Change in the fair value of the derivatives we own to hedge our guaranteed death benefit (&#8220;GDB&#8221;) riders within our variable annuities, which is referred to as &#8220;GDB derivatives results&#8221;;<\/li>\n<li class=\"bwlistitemmargb\">Change in the fair value of the embedded derivatives of our guaranteed living benefit (\u201cGLB\u201d) 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 (\u201cFASB\u201d) Accounting Standards Codification (\u201cASC\u201d) (\u201cembedded derivative reserves\u201d), 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 \u201cGLB net derivative results\u201d;<\/li>\n<li class=\"bwlistitemmargb\">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 (\u201cindexed annuity forward-starting option\u201d);<\/li>\n<li class=\"bwlistitemmargb\">Changes in the fair value of equities securities;<\/li>\n<\/ul>\n<\/li>\n<li class=\"bwlistitemmargb\">Change in reserves accounted for under the Financial Services &#8211; Insurance &#8211; Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC resulting from benefit ratio unlocking on our GDB and GLB riders (&#8220;benefit ratio unlocking&#8221;);<\/li>\n<li class=\"bwlistitemmargb\">Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance;<\/li>\n<li class=\"bwlistitemmargb\">Gain (loss) on early extinguishment of debt;<\/li>\n<li class=\"bwlistitemmargb\">Losses from the impairment of intangible assets;<\/li>\n<li class=\"bwlistitemmargb\">Income (loss) from discontinued operations;<\/li>\n<li class=\"bwlistitemmargb\">Acquisition and integration costs related to mergers and acquisitions; and<\/li>\n<li class=\"bwlistitemmargb\">Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.<\/li>\n<\/ul>\n<p><b>Adjusted Operating Revenues<\/b><\/p>\n<p>Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:<\/p>\n<ul>\n<li class=\"bwlistitemmargb\">Excluded realized gain (loss);<\/li>\n<li class=\"bwlistitemmargb\">Amortization of deferred front-end loads (\u201cDFEL\u201d) arising from changes in GDB and GLB benefit ratio unlocking;<\/li>\n<li class=\"bwlistitemmargb\">Amortization of deferred gains arising from the reserve charges on business sold through reinsurance;<\/li>\n<li class=\"bwlistitemmargb\">Revenue adjustments from the initial adoption of new accounting standards.<\/li>\n<\/ul>\n<p><b>Adjusted Operating Return on Equity<\/b><\/p>\n<p>Adjusted return on equity measures how efficiently we generate profits from the resources provided by our net assets.<\/p>\n<ul>\n<li class=\"bwlistitemmargb\">It is calculated by dividing annualized adjusted income (loss) from operations by average equity, excluding accumulated other comprehensive income (loss) (&#8220;AOCI&#8221;).<\/li>\n<li class=\"bwlistitemmargb\">Management evaluates return on equity by both including and excluding average goodwill within average equity.<\/li>\n<\/ul>\n<p><b>Definition of Notable Items<\/b><\/p>\n<p>Adjusted income (loss) from operations, excluding notable items is a non-GAAP measure that excludes items which, in management\u2019s view, do not reflect the company\u2019s normal, ongoing operations.<\/p>\n<ul>\n<li class=\"bwlistitemmargb\">We believe highlighting notable items included in adjusted income (loss) from operations enables investors to better understand the fundamental trends in its results of operations and financial condition.<\/li>\n<\/ul>\n<p><b>Book Value Per Share Excluding AOCI<\/b><\/p>\n<p>Book value per share excluding AOCI is calculated based upon a non-GAAP financial measure.<\/p>\n<ul>\n<li class=\"bwlistitemmargb\">It is calculated by dividing (a) stockholders&#8217; equity excluding AOCI by (b) common shares outstanding.<\/li>\n<li class=\"bwlistitemmargb\">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.<\/li>\n<li class=\"bwlistitemmargb\">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.<\/li>\n<li class=\"bwlistitemmargb\">Book value per share is the most directly comparable GAAP measure.<\/li>\n<\/ul>\n<p><span class=\"bwuline\"><b>Special Note<\/b><\/span><\/p>\n<p><b>Sales<\/b><\/p>\n<p>Sales as reported consist of the following:<\/p>\n<ul>\n<li class=\"bwlistitemmargb\"><i>MoneyGuard\u00ae<\/i> \u2013 15% of total expected premium deposits;<\/li>\n<li class=\"bwlistitemmargb\">Universal life (UL), indexed universal life (IUL), variable universal life (VUL) \u2013 first-year commissionable premiums plus 5% of excess premiums received;<\/li>\n<li class=\"bwlistitemmargb\">Executive Benefits \u2013 single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received;<\/li>\n<li class=\"bwlistitemmargb\">Term \u2013 100% of annualized first-year premiums;<\/li>\n<li class=\"bwlistitemmargb\">Annuities \u2013 deposits from new and existing customers; and<\/li>\n<li class=\"bwlistitemmargb\">Group Protection \u2013 annualized first-year premiums from new policies.<\/li>\n<\/ul>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"7\">\n<p class=\"bwcellpmargin\"><b>Lincoln National Corporation<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"7\"><b>Reconciliation of Net Income to Adjusted Income from Operations<\/b><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb1 bwvertalignt bwalignl\">(in millions, except per share data)<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignm bwalignc bwsinglebottom\" colspan=\"5\"><b>For the Quarter Ended<\/b><\/p>\n<p class=\"bwcellpmargin\"><b>March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\"><b>2018<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\">2017<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Total Revenues<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>3,609<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">3,500<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Less:<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwvertalignt bwalignl\">Excluded realized gain (loss)<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>(35)<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">(80)<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwvertalignt bwalignl\">Amortization of DFEL on benefit ratio unlocking<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>(1)<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwpadb1 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\">Amortization of deferred gains arising from reserve changes on business sold through reinsurance<\/p>\n<\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\"><b>&#8211;<\/b><\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">1<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb3 bwvertalignt bwalignl\"><b>Total Adjusted Operating Revenues<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\"><b>3,645<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\">3,578<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\"><b>Net Income (Loss) Available to Common Stockholders \u2013 Diluted<\/b><\/p>\n<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>365<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">435<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Less:<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwpadb1 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\">Adjustment for deferred units of LNC stock in our deferred compensation plans<sup>(1)<\/sup><\/p>\n<\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\"><b>(2)<\/b><\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Net Income (Loss)<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>367<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">435<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Less<sup>(2)<\/sup>:<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwvertalignt bwalignl\">Excluded realized gain (loss)<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>(28)<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">(52)<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwvertalignt bwalignl\">Benefit ratio unlocking<\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>(10)<\/b><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">45<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwvertalignt bwalignl\">Net impact from the Tax Cuts and Jobs Act<\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>(13)<\/b><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\">Acquisition and integration costs related to mergers and acquisitions, after-tax<\/p>\n<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>(4)<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwpadb1 bwvertalignt bwalignl\">Gain (loss) on early extinguishment of debt<\/td>\n<td class=\"bwpadl0 bwpadb1 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\"><b>(19)<\/b><\/td>\n<td class=\"bwpadl0 bwpadb1 bwvertalignt bwalignl\"><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb3 bwvertalignt bwalignl\"><b>Adjusted Income (Loss) from Operations<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\"><b>441<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\">442<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Earnings (Loss) Per Common Share \u2013 Diluted<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Net income (loss)<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>1.64<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.89<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Adjusted income (loss) from operations<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>1.97<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.92<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Average Stockholders\u2019 Equity<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Average Equity, including average AOCI<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>16,653<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">14,725<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb1 bwvertalignt bwalignl\">Average AOCI<\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\"><b>3,052<\/b><\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">1,706<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwvertalignt bwalignl\">Average equity, excluding AOCI<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>13,601<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">13,019<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb1 bwvertalignt bwalignl\">Average goodwill<\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\"><b>1,368<\/b><\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">2,273<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwpadb3 bwvertalignt bwalignl\">Average equity, excluding AOCI and goodwill<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\"><b>12,233<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom\">10,746<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Return on Equity, Including AOCI<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Net income (loss) with average equity including goodwill<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>8.8%<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">11.8%<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Return on Equity, Excluding AOCI<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\">Adjusted income (loss) from operations with average equity including goodwill<\/p>\n<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>13.0%<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">13.6%<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\">Adjusted income (loss) from operations with average equity excluding goodwill<\/p>\n<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>14.4%<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">16.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignt bwalignr\">(1)<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">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 result in a more dilutive EPS.<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignt bwalignr\">(2)<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">We use our prevailing federal income tax rates of 21% and 35%, where applicable, 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.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"7\"><b>Lincoln National Corporation<\/b><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"7\"><b>Reconciliation of Notable Items<\/b><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignm bwalignc bwsinglebottom\" colspan=\"5\"><b>For the Quarter Ended<\/b><\/p>\n<p class=\"bwcellpmargin\"><b>March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\"><b>2018<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\">2017<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignm bwalignl\"><b>Adjusted Operating EPS, As Reported<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>1.97<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">\n<p class=\"bwcellpmargin\">1.92<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignm bwalignl\">Notable items:<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl3 bwpadb1 bwvertalignm bwalignl\">Taxes<\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\"><b>&#8211;<\/b><\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">0.19<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl6 bwvertalignm bwalignl\">Total notable items<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>&#8211;<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">0.19<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignm bwalignl\"><b>Adjusted Operating EPS, Excluding Notable Items<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>1.97<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.73<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"9\"><b>Lincoln National Corporation<\/b><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"9\"><b>Reconciliation of Book Value per Share<\/b><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"5\"><b>As of March 31,<\/b><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\"><b>2018<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\">2017<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Book value per share, including AOCI<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>73.09<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">66.58<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Per share impact of AOCI<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>10.21<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">8.21<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">Book value per share, excluding AOCI<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>62.88<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">58.37<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"7\"><b>Lincoln National Corporation<\/b><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignc\" colspan=\"7\"><b>Digest of Earnings<\/b><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb1 bwvertalignt bwalignl\">(in millions, except per share data)<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignm bwalignc bwsinglebottom\" colspan=\"5\"><b>For the Quarter Ended<\/b><\/p>\n<p class=\"bwcellpmargin\"><b>March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\"><b>2018<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignc bwsinglebottom\" colspan=\"2\">2017<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Revenues<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>3,609<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">3,500<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Net Income (Loss)<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>367<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">435<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwpadb1 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\">Adjustment for deferred units of LNC stock in our deferred compensation plans<sup>(1)<\/sup><\/p>\n<\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\"><b>(2)<\/b><\/td>\n<td><\/td>\n<td class=\"bwsinglebottom\"><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">\n<p class=\"bwcellpmargin\"><b>Net Income (Loss) Available to Common Stockholders \u2013 Diluted<\/b><\/p>\n<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>365<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">435<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Earnings (Loss) per Common Share \u2013 Basic<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>$<\/b><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>1.68<\/b><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">$<\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.93<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Earnings (Loss) per Common Share \u2013 Diluted<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>1.64<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">1.89<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Average Shares \u2013 Basic<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>218,368,994<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">225,619,803<\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwvertalignt bwalignl\"><b>Average Shares \u2013 Diluted<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\"><b>222,287,572<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr\">230,103,505<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table class=\"bwtablemarginb\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td class=\"bwpadl0 bwnowrap bwpadr0 bwvertalignt bwalignr\">(1)<\/td>\n<td><\/td>\n<td class=\"bwpadl0 bwvertalignt bwalignl\">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.<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><!-- AMC END ABOUT --><!-- AMC BEGIN SAFE-HARBOR --><\/p>\n<p><b>Forward Looking Statements \u2014 Cautionary Language<\/b><\/p>\n<p>Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln&#8217;s behalf are &#8220;forward-looking statements&#8221; within the meaning of the Private Securities Litigation Reform Act of 1995 (\u201cPSLRA\u201d). 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: &#8220;believe,&#8221; &#8220;anticipate,&#8221; &#8220;expect,&#8221; &#8220;estimate,&#8221; &#8220;project,&#8221; &#8220;will,&#8221; &#8220;shall&#8221; 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&#8217;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.<\/p>\n<p>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:<\/p>\n<ul>\n<li class=\"bwlistitemmargb\">Deterioration 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;<\/li>\n<li class=\"bwlistitemmargb\">Adverse 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;<\/li>\n<li class=\"bwlistitemmargb\">Because 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\u2019s ability to meet its obligations;<\/li>\n<li class=\"bwlistitemmargb\">Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries&#8217; products; the required amount of reserves and\/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on revenue sharing and 12b-1 payments; the impact of recently enacted U.S. Federal tax reform legislation on our business, earnings and capital; and the effect of the Fifth Circuit Court of Appeal\u2019s decision vacating the Department of Labor\u2019s (\u201cDOL\u201d) fiduciary regulation as well as any \u201cbest interest\u201d standards of care adopted by the Securities and Exchange Commission (\u201cSEC\u201d) or other state regulators;<\/li>\n<li class=\"bwlistitemmargb\">Actions taken by reinsurers to raise rates on in-force business;<\/li>\n<li class=\"bwlistitemmargb\">Declines 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;<\/li>\n<li class=\"bwlistitemmargb\">Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities;<\/li>\n<li class=\"bwlistitemmargb\">Uncertainty about the effect of continuing promulgation and implementation of rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act on us, the economy and the financial services sector in particular;<\/li>\n<li class=\"bwlistitemmargb\">The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;<\/li>\n<li class=\"bwlistitemmargb\">A decline in the equity markets causing a reduction in the sales of our subsidiaries&#8217; products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; an acceleration of the net amortization of deferred acquisition costs (&#8220;DAC&#8221;), value of business acquired (&#8220;VOBA&#8221;), deferred sales inducements (&#8220;DSI&#8221;) and deferred front-end loads (&#8220;DFEL&#8221;); and an increase in liabilities related to guaranteed benefit features of our subsidiaries&#8217; variable annuity products;<\/li>\n<li class=\"bwlistitemmargb\">Ineffectiveness 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;<\/li>\n<li class=\"bwlistitemmargb\">A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries&#8217; products, in establishing related insurance reserves and in the net amortization of DAC, VOBA, DSI and DFEL, which may reduce future earnings;<\/li>\n<li class=\"bwlistitemmargb\">Changes in accounting principles generally accepted in the United States (&#8220;GAAP&#8221;), that may result in unanticipated changes to our net income;<\/li>\n<li class=\"bwlistitemmargb\">Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition;<\/li>\n<li class=\"bwlistitemmargb\">Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, profitability of our insurance subsidiaries and liquidity;<\/li>\n<li class=\"bwlistitemmargb\">Significant 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;<\/li>\n<li class=\"bwlistitemmargb\">Inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others;<\/li>\n<li class=\"bwlistitemmargb\">Interruption in telecommunication, information technology or other operational systems, or failure to safeguard the confidentiality or privacy of sensitive data on such systems from cyberattacks or other breaches of our data security systems;<\/li>\n<li class=\"bwlistitemmargb\">The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including the successful implementation of integration strategies or the achievement of anticipated synergies and operational efficiencies related to an acquisition;<\/li>\n<li class=\"bwlistitemmargb\">The adequacy and collectability of reinsurance that we have purchased;<\/li>\n<li class=\"bwlistitemmargb\">Acts 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;<\/li>\n<li class=\"bwlistitemmargb\">Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products;<\/li>\n<li class=\"bwlistitemmargb\">The unknown effect on our subsidiaries&#8217; businesses resulting from evolving market preferences and the changing demographics of our client base; and<\/li>\n<li class=\"bwlistitemmargb\">The unanticipated loss of key management, financial planners or wholesalers.<\/li>\n<\/ul>\n<p>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 Securities and Exchange Commission (\u201cSEC\u201d) include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.<\/p>\n<p>Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.<\/p>\n<p>The reporting of Risk Based Capital (\u201cRBC\u201d) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20180502006566r1&amp;sid=acqr7&amp;distro=nx&amp;lang=en\" alt=\"\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on <a href=\"http:\/\/businesswire.com\/\">businesswire.com<\/a>: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20180502006566\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20180502006566\/en\/<\/a><\/span><\/p>\n<p>Lincoln Financial Group<br \/>\nChris Giovanni<br \/>\n484-583-1793<br \/>\nInvestor Relations<br \/>\n<a href=\"mailto:InvestorRelations@LFG.com\">InvestorRelations@LFG.com<\/a><br \/>\nor<br \/>\nScott Sloat<br \/>\n484-583-1625<br \/>\nMedia Relations<br \/>\n<a href=\"mailto:scott.sloat@LFG.com\">scott.sloat@LFG.com<\/a><\/p>\n<p>Source: Lincoln Financial Group<\/p>\n<p><!-- AMC END SAFE-HARBOR --><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/insurancenewsnet.com\/oarticle\/lincoln-financial-group-reports-1q-results\">Lincoln Financial Group Reports 1Q Results<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/insurancenewsnet.com\/\">InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lincoln Financial Group today reported net income for the first quarter of 2018 of $367 million, or $1.64 per diluted share available to common stockholders, compared to net income in the first quarter of 2017 of $435 million, or $1.89 per diluted share available to common stockholders. &ldquo;We started the year strong with record first-quarter adjusted operating&#8230;<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/insurancenewsnet.com\/oarticle\/lincoln-financial-group-reports-1q-results\">Lincoln Financial Group Reports 1Q Results<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/insurancenewsnet.com\/\">InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8431"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=8431"}],"version-history":[{"count":1,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8431\/revisions"}],"predecessor-version":[{"id":8432,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8431\/revisions\/8432"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=8431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=8431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=8431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}