Lincoln National Corporation · NYSE:LNC

Lincoln National — Q1 2023 Earnings Presentation

13 slides from Lincoln National's earnings presentation, May 9, 2023

  1. Slide 1: 1Q23 Investment Supplement

    1Q23 Investment Supplement May 9, 2023 Al Copersino Head of Investor Relations 203-257-4493 Albert.Copersino@LFG.com This document may not be accurate after its date, and LNC does not undertake to update or keep it accurate after such date. ©2023 Lincoln National Corporation 1

  2. Slide 2: Forward looking statements – cautionary language

    Forward looking statements – cautionary language Certain statements made in this presentation and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forwar

  3. Slide 3: Forward looking statements – cautionary language (contd.)

    Forward looking statements – cautionary language (contd.) • A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increa

  4. Slide 4: Special note regarding data

    Special note regarding data • All information regarding LNC’s investment portfolio excludes assets related to certain modified coinsurance (“Modco”) transactions. The Modco investment portfolio has counterparty protections in place including investment guidelines, as well as additional support throu

  5. Slide 5: Portfolio overview

    Portfolio overview ©2023 Lincoln National Corporation 5

  6. Slide 6: High-quality and well-diversified investment portfolio

    High-quality and well-diversified investment portfolio The portfolio is well-positioned for the current environment Portfolio allocation by asset class3 Industrial • Other RMLs Long-term investment strategy is tightly aligned with our liability Transportation Alts 2% 2% 1% CMLs (ex-office) 3% 9.5% p

  7. Slide 7: High-quality and well-performing fixed income portfolio

    High-quality and well-performing fixed income portfolio The portfolio is at its highest quality in the last decade Portfolio allocation by rating1 2 NAIC-3-6/CM3 CM3 • The fixed income portfolio experienced the seventh consecutive ~0.1% BBB- on 3% 0.4% quarter of positive net ratings migration negat

  8. Slide 8: Bank exposure is high-quality and well diversified by issuer and geography

    Bank exposure is high-quality and well diversified by issuer and geography Well-positioned exposure to the banking sector Total bank exposure by rating1 BIG • Banking makes up 5% of invested assets and is 70% senior in BBB- 2% capital structure priority 3% AA 4% • 98% of exposure is investment grade

  9. Slide 9: High-quality commercial mortgage loan portfolio

    High-quality commercial mortgage loan portfolio Conservatively positioned CML portfolio Property types • Disciplined portfolio construction delivering consistent loan performance Mobile Home Other 4% 2% – Portfolio 46% loan to value and 2.4x debt service coverage – Virtually no credit losses since 2

  10. Slide 10: Office portfolio conservatively positioned with limited near-term maturities

    Office portfolio conservatively positioned with limited near-term maturities Debt service coverage >1.50x 1.25 - <1.50x 1.00 - <1.25x <1.00x Total Stable performance from office portfolio <50% 48% 1% 2% 1% 52% 50-<60% 21% 5% 3% 0% 28% Loan to value • Office portfolio credit quality delivering stable

  11. Slide 11: Other commercial real estate exposure is limited, high-quality and well-diversified

    Other commercial real estate exposure is limited, high-quality and well-diversified 1 REIT portfolio highlights Percent of total invested assets REITS CMBS • Total exposure is $1.7B 1.3% 1.4% • Portfolio is diversified across geographies, MSAs, and property 0.2% 0.1% types • Average rating is BBB+ w

  12. Slide 12: Reinsurance transaction impacts

    Reinsurance transaction impacts ©2023 Lincoln National Corporation 12

  13. Slide 13: Our recently announced reinsurance transaction supports our strategic direction and maintains our portfolio credit quality

    Our recently announced reinsurance transaction supports our strategic direction and maintains our portfolio credit quality 1 1 Post reinsurance transaction asset allocation Ratings mix • Reduces total invested assets by $28B 41% 40% 37% 36% • Portfolio will shift in-line with our investment strategy

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