LINCOLN NATIONAL CORP

For the period ended Dec 31, 2023. Filed Feb 22, 2024.

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 22, 2024

LNC$42.98+7.3%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Index to Financial Statement Schedules

I	– Consolidated Summary of Investments – Other than Investments in Related Parties	FS-2
II	– Condensed Financial Information of Registrant	FS-3
III	– Condensed Supplementary Insurance Information	FS-6
IV	– Consolidated Reinsurance	FS-8

All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions, are inapplicable, or the required information is included in the consolidated financial statements, and therefore omitted. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations–Summary of Critical Accounting Estimates” on page 43 for more detail on items contained within these schedules.

FS-1

SCHEDULE I –CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN

INVESTMENTS IN RELATED PARTIES

Column A · Column B · Column C · Column D
Cost or · Fair · Carrying
Type of Investment · Amortized Cost · Value · Value
Fixed Maturity Available-For-Sale Securities (1)
Bonds:
U.S. government bonds	$416	$393		$393
Foreign government bonds	314	283		283
State and municipal bonds	3,106	2,790		2,790
Public utilities	12,683	11,320		11,320
All other corporate bonds	64,402	58,337		58,337
Mortgage-backed and asset-backed securities	16,268	15,368		15,368
Hybrid and redeemable preferred securities	244	247		247
Total fixed maturity available-for-sale securities	97,433	88,738		88,738
Equity Securities
Common stocks:
Banks, trusts and insurance companies	29	32		32
Industrial, miscellaneous and all other	41	38		38
Non-redeemable preferred securities	270	236		236
Total equity securities	340	306		306
Trading Securities	2,515	2,359		2,359
Mortgage loans on real estate (2)	19,115	17,407		18,963
Policy loans	2,476	N/A	2,476
Derivative investments	2,714	6,474		6,474
Other investments	5,015	5,015		5,015
Total investments	$129,608		$124,331

(1)For investments deemed to have declines in value that are impairment-related, an allowance for credit losses is recorded to reduce the carrying value to their estimated realizable value.

(2)Mortgage loans on real estate are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain mortgage loans at fair value where the fair value option has been elected.

FS-2

SCHEDULE II –CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

(Parent Company Only) (in millions, except share data)

	As of December 31,
	2023	2022
ASSETS
Investments in subsidiaries (1)	$12,205	$9,782
Derivative investments	169	119
Other investments	34	92
Cash and invested cash	129	715
Loans and accrued interest to subsidiaries (1)	2,606	2,491
Other assets	144	101
Total assets	$15,287	$13,300
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Common stock dividends payable	$76	$76
Short-term debt	250	500
Long-term debt	6,949	6,455
Loans from subsidiaries (1)	572	679
Other liabilities	547	488
Total liabilities	8,394	8,198
Contingencies and Commitments
Stockholders’ Equity
Preferred stock – 10,000,000 shares authorized:
Series C preferred stock – 20,000 shares authorized, issued and outstanding as of December 31, 2023	493	493
Series D preferred stock – 20,000 shares authorized, issued and outstanding as of December 31, 2023	493	493
Common stock – 800,000,000 shares authorized; 169,666,137 and 169,220,511 shares
issued and outstanding as of December 31, 2023, and December 31, 2022, respectively	4,605	4,544
Retained earnings	4,778	5,924
Accumulated other comprehensive income (loss)	(3,476)	(6,352)
Total stockholders’ equity	6,893	5,102
Total liabilities and stockholders’ equity	$15,287	$13,300

(1)Eliminated in consolidation

FS-3

SCHEDULE II –CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Parent Company Only) (in millions)

	For the Years Ended December 31,
	2023	2022	2021
Revenues
Dividends from subsidiaries (1)	$685	$797	$2,060
Interest from subsidiaries (1)	233	159	114
Net investment income	25	3	1
Total revenues	943	959	2,175
Expenses
Operating and administrative expenses	78	52	69
Interest – subsidiaries (1)	175	38	10
Interest – other	289	266	263
Total expenses	542	356	342
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries	401	603	1,833
Federal income tax expense (benefit)	(61)	(42)	(49)
Income (loss) before equity in income (loss) of subsidiaries	462	645	1,882
Equity in income (loss) of subsidiaries	(1,214)	713	1,896
Net income (loss)	(752)	1,358	3,778
Other comprehensive income (loss), net of tax:
Unrealized investment gain (loss)	3,715	(18,059)	(3,287)
Market risk benefit non-performance risk gain (loss)	(671)	(210)	(923)
Policyholder liability discount rate remeasurement gain (loss)	(160)	2,012	591
Foreign currency translation adjustment	8	(20)	(2)
Funded status of employee benefit plans	(16)	(59)	47
Total other comprehensive income (loss), net of tax	2,876	(16,336)	(3,574)
Comprehensive income (loss)	$2,124	$(14,978)	$204

(1)Eliminated in consolidation.

FS-4

SCHEDULE II –CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF CASH FLOWS

(Parent Company Only) (in millions)

	For the Years Ended December 31,
	2023	2022	2021
Net Cash Provided by (Used in) Operating Activities	$398	$608	$1,860
Cash Flows from Investing Activities
Capital contribution to subsidiaries (1)	(7)	(925)	(65)
Net change in collateral on investments, derivatives and related settlements	69	583	168
Other	45	(5)	(40)
Net cash provided by (used in) investing activities	107	(347)	63
Cash Flows from Financing Activities
Payment of long-term debt, including current maturities	(500)	(300)	–
Issuance of long-term debt, net of issuance costs	–	296	–
Payment related to modification or early extinguishment of debt	–	–	(8)
Increase (decrease) in loans from subsidiaries, net (1)	(84)	(563)	(188)
Increase (decrease) in loans to subsidiaries, net (1)	(113)	708	(234)
Common stock issued for benefit plans	(7)	(16)	20
Issuance of preferred stock, net of issuance costs	–	986	–
Repurchase of common stock	–	(550)	(1,105)
Dividends paid to preferred stockholders	(82)	–	–
Dividends paid to common stockholders	(305)	(310)	(319)
Net cash provided by (used in) financing activities	(1,091)	251	(1,834)
Net increase (decrease) in cash, invested cash and restricted cash	(586)	512	89
Cash, invested cash and restricted cash as of beginning-of-year	715	203	114
Cash, invested cash and restricted cash as of end-of-year	$129	$715	$203

(1) Eliminated in consolidation.

FS-5

SCHEDULE III –CONDENSED SUPPLEMENTARY INSURANCE INFORMATION

Column A	Column B	Column C	Column D	Column E	Column F
DAC · Future · Policyholder
	and	Contract	Unearned	Account	Insurance
Segment	VOBA	Benefits	Premiums (1)	Balances (2)	Premiums
Annuities	$4,187	$2,090	$–	$54,496	$(1,584)
Life Insurance	7,621	21,613	–	37,432	1,162
Group Protection	154	6,282	–	–	5,014
Retirement Plan Services	239	–	–	23,784	–
Other Operations	–	9,879	–	5,025	(920)
Total	$12,201	$39,864	$–	$120,737	$3,672
Annuities	$4,207	$2,005	$–	$45,549	$165
Life Insurance	7,453	20,953	–	37,959	1,146
Group Protection	141	6,086	–	–	4,768
Retirement Plan Services	236	–	–	25,138	–
Other Operations	–	9,782	–	5,789	8
Total	$12,037	$38,826	$–	$114,435	$6,087
Annuities	$4,185	$2,511	$–	$41,700	$116
Life Insurance	7,125	19,564	–	38,475	1,033
Group Protection	140	6,604	–	–	4,450
Retirement Plan Services	235	–	–	23,579	–
Other Operations	–	12,746	–	6,473	18
Total	$11,685	$41,425	$–	$110,227	$5,617

(1)Unearned premiums are included in Column C, future contract benefits.

FS-6

SCHEDULE III –CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Continued)

Column A	Column G	Column H	Column I	Column J	Column K
Benefits · Amortization
Net · and · of DAC · Other
	Investment	Interest	and	Operating	Premiums
Segment	Income	Credited	VOBA	Expenses	Written
Annuities	$1,668	$(193)	$430	$1,618	$–
Life Insurance	2,712	5,717	492	755	–
Group Protection	339	4,025	100	1,347	–
Retirement Plan Services	1,012	664	18	427	–
Other Operations	148	(827)	–	636	–
Total	$5,879	$9,386	$1,040	$4,783	$–
Annuities	$1,463	$1,204	$429	$1,587	$–
Life Insurance	2,587	5,381	478	715	–
Group Protection	334	4,039	97	1,219	–
Retirement Plan Services	976	629	18	379	–
Other Operations	155	103	–	653	–
Total	$5,515	$11,356	$1,022	$4,553	$–
Annuities	$1,400	$1,030	$403	$1,699	$–
Life Insurance	3,207	5,593	476	739	–
Group Protection	365	4,075	139	1,153	–
Retirement Plan Services	991	616	19	387	–
Other Operations	148	118	–	561	–
Total	$6,111	$11,432	$1,037	$4,539	$–

FS-7

SCHEDULE IV –CONSOLIDATED REINSURANCE

Column A	Column B	Column C	Column D	Column E	Column F
Ceded · Assumed · Percentage
to · from · of Amount
	Gross	Other	Other	Net	Assumed
Description	Amount	Companies	Companies	Amount	to Net
Individual life insurance in-force (1)	$2,094,011	$1,072,577	$6,024	$1,027,458	0.6%
Premiums:
Annuities and life insurance (2)	10,369	4,700	86	5,755	1.5%
Accident and health insurance	3,413	33	4	3,384	0.1%
Total premiums	$13,782	$4,733	$90	$9,139
Individual life insurance in-force (1)	$2,028,279	$831,478	$6,512	$1,203,313	0.5%
Premiums:
Annuities and life insurance (2)	10,365	1,981	94	8,477	1.1%
Accident and health insurance	3,242	34	4	3,213	0.1%
Total premiums	$13,607	$2,015	$98	$11,690
Individual life insurance in-force (1)	$1,845,479	$776,226	$7,659	$1,076,912	0.7%
Premiums:
Annuities and life insurance (2)	10,365	1,816	88	8,637	1.0%
Accident and health insurance	3,050	37	6	3,019	0.2%
Total premiums	$13,415	$1,853	$94	$11,656

(1)Includes Group Protection segment and Other Operations in-force amounts.

(2)Includes insurance fees on universal life and other interest-sensitive products.

FS-8

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.