Lincoln National Corporation · NYSE:LNC
Lincoln National — Investor Presentation (July 2006)
18 slides from Lincoln National's investor presentation, Jul 10, 2006
Slide 1: Lincoln Financial Group Financial Reporting Investor Call
Lincoln Financial Group Financial Reporting Investor Call July 11, Fred Crawford Chief Financial Officer Doug Miller Chief Accounting Officer
Slide 2: Drivers of New Segmentation
Drivers of New Segmentation Merger with Jefferson Pilot Creation of Employer Markets segment A “pure” asset manager presentation of Delaware Investments Consolidation of distribution expenses in manufacturing segments
Slide 3: Segments Before Merger
Segments Before Merger Annuity and Investment Products Fixed and Equity-Indexed Annuities Funding Agreements Individual Products UL/VUL, Traditional and Term Life Insurance Community Banks and BOLI Benefit Partners Group Term Life, Disability and Dental Insurance Communications Radio, Television and
Slide 4: New Reporting Structure
Individual Markets Investment Management Lincoln Financial Media Lincoln UK Other Operations LFG Consolidated Employer Markets Annuities Life Retirement Products Executive Benefits Benefit Partners New Reporting Structure
Slide 5: Before: Employer Markets Segment
Group LTD, Group STD, Group Life, Dental Benefit Partners Lincoln Financial Group Delaware Investments Jefferson Pilot Director ® Executive Benefits (COLI) Lincoln Alliance ® Program Multi-Fund ® Group Variable Annuity Life and Annuity Before: Employer Markets Segment LFD LFA Employer-sponsored busi
Slide 6: After: Employer Markets Alignment of Product, Distribution and Markets
After:Employer Markets Alignment of Product, Distribution and Markets Products Director ® Lincoln Alliance ® Program Group Variable Annuity Multi-Fund ® Executive Benefits (COLI)LTD/STDGroup LifeDentalDistributionBrokersFinancialPlannersIndependentAgentsTPAsConsultantsMarketsCorporateprivately-held
Slide 7: New Segment Business Mix
Investment Management Individual Markets Employer Markets Lincoln UK Lincoln Financial Media Corporate and Shared Services New Segment Business Mix Managed Accounts, Mutual Funds, Institutional, Plans and General Account Management Life: UL/VUL and ISWL (Single Life and Survivorship) and Term Annuit
Slide 8: "Other Operations" Reporting Changes
“Other Operations” Reporting Changes Includes: Deferred gain amortization Financing costs Branding expenses Earnings on excess capital Earnings on corporate assets Excludes: Distribution expenses (P&L)
Slide 9: Statistical Supplement Changes
Statistical Supplement Changes Jefferson Pilot historical results period reporting format Combined production results Expense detail New businesses
Slide 10: Segment Reporting Changes
3 1 2 Segment Reporting Changes Former JP Annuity and Investment Products Individual Products Benefit Partners Communications Corporate and Other Individual Markets Life Insurance UL/VUL and ISWL (Single Life and Survivorship) and Term Annuities Variable, Fixed and Equity-Indexed Annuities Employer
Slide 11: 1Q06 Reported vs. Revised Income From Operations
1Q06 Reported (millions of dollars) 1Q06 Revised (millions of dollars) 1Q06 Revised Income From Operations (Lincoln Financial Only) Retirement Life Investment Management Lincoln UK Corporate Total Income from Operations Individual Markets Annuities Life Insurance Employer Markets Retirement Products
Slide 12: 1Q06 Reported-to-Revised Analysis
© 1Q06 Reported-to-Revised Analysis | Ee (Lincoln Financial-only income from operations $ millions) Revised $123 $(1) $(2) $82 (2) $20 $10
Slide 13: Definition of Income From Operations
Definition of Income From Operations Income (loss) from operations represents after tax results excluding, as applicable, realized gains or losses on investments and derivatives, cumulative effect of accounting changes, reserve changes on business sold through reinsurance, gain on sale of subsidiari
Slide 14: Overall Earnings Impact Neutral to Modestly Positive in 2006
Overall Earnings Impact Neutral to Modestly Positive in 2006 Purchase Accounting * Purchase price allocated of approximately $1.1 billion, net of deferred taxes, is related to Lincoln Financial Media. Includes approximately $700 million of goodwill and $650 million of intangibles. Deferred acquisiti
Slide 15: Approach to Guidance and Outlook
Lincoln will not provide EPS Guidance Approach to Guidance and Outlook Outlook: Market conditions and impact on production Merger expense saves and integration costs Capital management Select earnings drivers Annual earnings range on select businesses Long-range ROE targets
Slide 16: Questions and Answers
Lincoln Financial Group Financial Reporting Investor Call Questions and Answers
Slide 17: Forward Looking Statements Cautionary Language
Forward Looking Statements Cautionary Language This document and oral statements made during the presentation may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give
Slide 18: Forward Looking Statements Cautionary Language
Forward Looking Statements Cautionary Language l Changes in accounting principles generally accepted in the U.S. that may result in unanticipated changes to our net income; l Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations, and the adverse