LINCOLN NATIONAL CORP

Details underlying the results for Group Protection (in millions) were as follows:

(1) Consists of revenue from third parties for administrative services performed, which has a corresponding partial offset in commissions and other expenses.

•Higher benefits and policyholder liability remeasurement driven by the impact of the annual assumption review, higher claims severity and incidence in our disability business, partially offset by more favorable claims experience than expected in our disability business and lower incidence in our life business.

•Higher commissions and other expenses due to higher other costs pertaining to business operations and lower DAC deferrals.

The decrease in income from operations was partially offset by the following:

•Higher insurance premiums due to growth in business in force.

•Higher net investment income driven by growth in business in force.

•Higher benefits and policyholder liability remeasurement driven by higher incidence and claims severity in our disability business and the impact of the annual assumption review, partially offset by lower incidence in our life business.

•Higher commissions and other expenses due to higher other costs pertaining to business operations and higher DAC amortization and lower deferrals.

The decrease in income from operations was partially offset by the following:

•Higher insurance premiums due to growth in business in force.

•Higher net investment income driven by growth in business in force and improving portfolio yields from the current interest rate environment.

See “Summary of Critical Accounting Estimates – Annual Assumption Review” for information on the impacts from our annual assumption review.

For information about the effect of the loss ratio sensitivity on our income (loss) from operations, see “Part II – Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Group Protection – Additional Information” in our 2025 Form 10-K.

For information on the effects of current interest rates on our long-term disability claim reserves, see “Item 3. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk – Effect of Interest Rate Sensitivity” in our 2025 Form 10-K. For information on the interest rate environment, see “Introduction – Executive Summary – Interest Rate Environment” above.

Insurance Premiums

Details underlying insurance premiums (in millions) were as follows:

Premiums are a function of the rates priced into the product and our business in force. Business in force, in turn, is driven by sales and persistency experience.

Sales relate to new policyholders and new coverages sold to existing policyholders. We believe that the trend in sales is an important indicator of development of business in force over time. Sales in the table above are the combined annualized premiums for our products. Generally, we have higher sales during the fourth quarter of the year.

Net Investment Income

We use our investment income to offset the earnings effect of the associated build of our reserves, which are a function of our insurance premiums and the yields on our investments. Details underlying net investment income (in millions) were as follows:

(1) See “Consolidated Investments – Commercial Mortgage Loan Prepayment and Bond Make-Whole Premiums” below for additional information.

(2) Represents net investment income on the required statutory surplus for this segment and includes the effect of investment income on alternative investments for such assets that are held in the portfolios supporting statutory surplus versus the portfolios supporting product liabilities. See “Consolidated Investments – Alternative Investments” below for more information on alternative investments.

Details underlying benefits and policyholder liability remeasurement (in millions) and loss ratios by product line were as follows:

Generally, we experience higher mortality in the first quarter of the year and higher disability claims in the fourth quarter of the year due to the seasonality of claims. For additional information on our loss ratios, see “Additional Information” above.

Commissions and other expenses that result directly from and are essential to the successful acquisition of new or renewal business are deferred to the extent recoverable and are amortized on a constant level basis over the expected term of the related contracts using the groupings and actuarial assumptions consistent with those used for calculating the related policyholder liability balances. Certain broker commissions that vary with and are related to paid premiums are expensed as incurred rather than deferred and amortized.