Lincoln National Corporation · NYSE:LNC

Lincoln National — Corporate Update (July 2008)

11 slides from Lincoln National's corporate update, Jul 16, 2008

  1. Slide 1: Important Note

    Important Note We are currently in our “quiet period” regarding second quarter results, which means that we are currently analyzing our results for the second quarter 2008. Therefore, we will not be discussing our second quarter results, which we will release on July 29, 2008. You should not rely on

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation and certain oral statements made on LNC’s behalf may contain information that includes or is a “forward-looking statement” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that does not stri

  3. Slide 3: Current VA Living Benefit Rider Designs

    Current VA Living Benefit Rider Designs Account Rider Positioning Rider Fee Restrictions Value* Guaranteed Withdrawal Benefits SmartSecurity Protection feature with upside 45 bps (max 95 bps, Withdrawal rate limited to 7%. $18.1 billion 5 year opportunity from market change possible on reset perform

  4. Slide 4: Individual Variable Annuity Living Benefits Profile

    Individual Variable Annuity Living Benefits Profile VA Account Value VA Deposits ($ billions) $2.7 $2.5 14% 24% 31% 55% 31% 43% 44% 33% 25% Account Value = $58 billion* No Living Benefit Guaranteed Withdrawal Benefits Guaranteed Income Benefits * As of March 31, 2008 4

  5. Slide 5: VA Living Benefit Pricing

    VA Living Benefit Pricing Variables driving potential living benefit claims: Product features - benefits, restrictions, etc. Policyholder behavior - withdrawal rates, resets, lapses, mortality, etc. Capital markets - interest rates, equity volatility and correlations The same considerations used to

  6. Slide 6: VA Living Benefit Hedging

    VA Living Benefit Hedging Historically focused on protecting against GAAP income movements SFAS 157 created disconnect between GAAP and economics Greater focus on hedging economics going forward ($ millions) $300 $200 $100 $0 -$100 1Q 1Q 1Q 1Q 2005 2006 2007 2008 Increase in Living Benefit Reserve N

  7. Slide 7: Revised VA Living Benefit Income from Operations

    Revised VA Living Benefit Income from Operations VALB Rider Fees - Net Valuation Premiums Income from Operations 7

  8. Slide 8: VALB Financial Statement Presentation

    VALB Financial Statement Presentation SFAS 157 SFAS 157 Attributed Fee Definition: The Net Valuation Premiums (NVP) plus a margin for risk/profit, including a non-performance risk factor related to the credit quality of the “selling” company, that a “willing buyer” would apply to assume the risk for

  9. Slide 9: Individual Annuities Segment Reporting

    Individual Annuities Segment Reporting ($ millions) 1Q07 2Q07 3Q07 4Q07 1Q08 Reported Income from Operations: $ 121 $ 130 $ 107 $ 90 $ 129 Changes in Definition: VALB 5 4 (15) (24) 18 GMDB 0 0 0 0 (3) Indexed Annuities (1) 3 (4) (5) (3) 4 7 (19) (29) 12 Revised Income From Operations: $ 117 $ 123 $

  10. Slide 10: Disclosures

    Disclosures Expanded disclosure on realized gains/losses: VALB and GMDB hedge performance Indexed Annuity Forward starting option impact. Expanded disclosure on components of attributed fee Expanded disclosure on types of guarantees sold and account value by VALB type. 10

  11. Slide 11: Slide 11

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