LINCOLN NATIONAL LIFE INSURANCE CO /IN/

CIK:0000726865|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Insurance premiums	$ 1,648	$ 1,612	$ 3,249	$ 3,239
Fee income	1,176	1,112	2,324	2,248
Net investment income	1,510	1,366	2,983	2,713
Realized gain (loss)	(97)	(162)	269	(409)
Other revenues	110	84	163	158
Total revenues	4,347	4,012	8,988	7,949
Expenses
Benefits	1,601	1,608	3,335	3,377
Policyholder liability remeasurement (gain) loss	(16)	(49)	(43)	(74)
Interest credited	961	849	1,897	1,672
Market risk benefit (gain) loss	(639)	(445)	72	173
Commissions and other expenses	1,319	1,251	2,726	2,554
Interest and debt expense	26	40	51	80
Total expenses	3,252	3,254	8,038	7,782
Income (loss) before taxes	1,095	758	950	167
Federal income tax expense (benefit)	196	131	144	(21)
Net income (loss)	899	627	806	188
Other comprehensive income (loss), net of tax:
Unrealized investment gain (loss)	(37)	350	(361)	536
Market risk benefit non-performance risk gain (loss)	(403)	(350)	37	(33)
Policyholder liability discount rate remeasurement gain (loss)	(4)	(48)	36	(127)
Total other comprehensive income (loss), net of tax	(444)	(48)	(288)	376
Comprehensive income (loss)	$ 455	$ 579	$ 518	$ 564

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net income (loss)	$ 806	$ 188
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Realized (gain) loss	(269)	409
Market risk benefit (gain) loss	72	173
Sales and maturities (purchases) of trading securities, net	128	161
Change in:
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads	422	330
Accrued investment income	(57)	(36)
Insurance liabilities and reinsurance-related balances	(14)	(258)
Accrued expenses	(128)	(134)
Federal income tax accruals	135	(48)
Cash management agreement	(676)	72
Other	(251)	(217)
Net cash provided by (used in) operating activities	168	640
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities	(9,348)	(6,791)
Sales and maturities of available-for-sale securities and equity securities	6,503	5,723
Purchases of other investments	(913)	(675)
Sales and repayments of other investments	446	551
Issuance of mortgage loans on real estate	(2,834)	(1,933)
Repayment and maturities of mortgage loans on real estate	1,644	1,072
Repayment (issuance) of policy loans, net	29	(77)
Net change in collateral on investments, certain derivatives and related settlements	2,680	(348)
Other	(98)	39
Net cash provided by (used in) investing activities	(1,891)	(2,439)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation	0	800
Issuance of long-term debt, net of issuance costs	100	0
Issuance (payment) of short-term debt	615	149
Payment related to sale-leaseback transactions	(2)	(4)
Proceeds from certain financing arrangements	0	33
Payment related to certain financing arrangements	(75)	(84)
Deposits	9,689	9,617
Withdrawals	(7,012)	(6,237)
Transfers from (to) separate accounts, net	(985)	(303)
Common stock issued for benefit plans	(29)	(9)
Dividends paid to Lincoln National Corporation	(580)	(400)
Net cash provided by (used in) financing activities	1,721	3,562
Net increase (decrease) in cash and invested cash	(2)	1,763
Cash and invested cash as of beginning-of-year	7,946	4,505
Cash and invested cash as of end-of-period	$ 7,944	$ 6,268

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Investments:
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2026 - $96,311; 2025 - $92,842; allowance for credit losses: 2026 - $138; 2025 - $110)	$ 90,273	$ 87,586
Trading securities	1,500	1,660
Equity securities	452	629
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2026 - $195; 2025 - $199)	23,277	22,338
Policy loans	2,587	2,617
Derivative investments	11,381	9,945
Other investments	8,636	7,812
Total investments	138,106	132,587
Cash and invested cash	7,944	7,946
Deferred acquisition costs, value of business acquired and deferred sales inducements	12,689	12,637
Reinsurance recoverables, net of allowance for credit losses	47,743	48,607
Deposit assets, net of allowance for credit losses	35,424	34,819
Market risk benefit assets	5,077	4,753
Accrued investment income	1,070	1,013
Goodwill	1,144	1,144
Other assets	9,905	9,394
Separate account assets	188,252	180,092
Total assets	447,354	432,992
Liabilities
Policyholder account balances	139,184	135,904
Future contract benefits	42,201	42,360
Funds withheld reinsurance liabilities	31,066	30,930
Market risk benefit liabilities	895	1,118
Deferred front-end loads	8,076	7,605
Payables for collateral on investments	9,231	7,953
Short-term debt	615	0
Long-term debt	1,526	1,426
Other liabilities	14,366	13,618
Separate account liabilities	188,252	180,092
Total liabilities	435,412	421,006
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – $10,000,000 shares authorized, issued and outstanding	14,059	14,041
Retained earnings (deficit)	126	(100)
Accumulated other comprehensive income (loss)	(2,243)	(1,955)
Total stockholder’s equity	11,942	11,986
Total liabilities and stockholder’s equity	$ 447,354	$ 432,992