LINCOLN FINANCIAL GROUP REPORTS FOURTH QUARTER …

FOR IMMEDIATE RELEASE

LINCOLN FINANCIAL GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2018 RESULTS

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Full year net income EPS of $7.40, down 20% and adjusted operating EPS of $8.48, up 9% Fourth quarter net income EPS of $1.80 and adjusted operating EPS of $2.15 Positive net flows in both variable and fixed annuities for the fourth quarter

$2.5 billion of capital deployed in 2018, including $605 million in the fourth quarter

Radnor, PA, February 6, 2019 ? Lincoln Financial Group (NYSE: LNC) today reported net income for the fourth quarter of 2018 of $399 million, or $1.80 per diluted share available to common stockholders, compared to net income in the fourth quarter of 2017 of $816 million, or $3.67 per diluted share available to common stockholders. Fourth quarter adjusted income from operations was $475 million, or $2.15 per diluted share available to common stockholders, compared to $440 million, or $1.98 per diluted share available to common stockholders, in the fourth quarter of 2017.

Net income for the full year of 2018 was $1.6 billion, or $7.40 per diluted share available to common stockholders, compared to $2.1 billion, or $9.22 per diluted share available to common stockholders in 2017. Full year 2018 adjusted income from operations was $1.9 billion, or $8.48 per diluted share available to common stockholders, compared to $1.8 billion, or $7.79 per diluted share, available to common stockholders, for the full year of 2017.

Net income in the prior-year quarter and full year 2017 included non-recurring net favorable items of $417 million primarily related to tax reform.

"Fourth quarter adjusted operating EPS growth of 9% and ROE of 13.5% were strong and consistent with our record full-year results," said Dennis R. Glass, president and CEO of Lincoln Financial Group. "Significant accomplishments this past year include restoring positive flows in the Annuities business, outperforming our expectations for the Liberty acquisition, and executing on strategic transactions, which resulted in $2.5 billion of capital deployment. Given our positive momentum, we remain well positioned to drive long-term shareholder value."

(in millions, except per share data) Net Income (Loss) Net Income (Loss) Available to Common Stockholders Net Income (Loss) per Diluted Share Available to Common Stockholders Revenues Adjusted Income (Loss) from Operations Adjusted Income (Loss) from Operations per Diluted Share Available to Common

Stockholders Average Diluted Shares ROE, including AOCI (Net Income) Adjusted Operating ROE, excluding AOCI (Income from Operations) Book Value per Share, Including AOCI Book Value per Share, Excluding AOCI

As of or For the

Quarter Ended December 31

2018

2017

$ 399 $ 816

387

818

1.80

3.67

4,531 3,669

475

440

As of or For the

Year Ended December 31

2018 2017

$ 1,641 $ 2,079

1,623 2,086

7.40

9.22

16,424 14,257

1,880 1,754

2.15 215.0 10.9% 13.5% $ 69.71 67.73

1.98 221.9 19.4% 12.8% $ 79.43 64.62

8.48 219.6 10.6% 13.5% $ 69.71 67.73

7.79 226.2 13.2% 13.1% $ 79.43 64.62

Operating Highlights ? Full Year 2018 versus Full Year 2017 ? Adjusted operating EPS up 9%, or 13% excluding notable items ? Adjusted operating ROE, excluding AOCI, of 13.5%, up 40 basis points ? Total Annuity sales of $12.4 billion, up 42%, and achieved positive net flows in the fourth quarter ? Life insurance expense ratio of 6.8%, a 90 basis point improvement ? Retirement Plan Services net flows of $2.5 billion, up 76% ? Group Protection after-tax margin of 5.5%, up 30 basis points

There were no notable items within adjusted income from operations for the current quarter while the full year included approximately $0.01 of net unfavorable items per share primarily related to the company's annual review of DAC and reserve assumptions. In the prior-year quarter, there were no notable items within adjusted income from operations while the full year included approximately $0.29 of net favorable items per share related primarily to tax adjustments unrelated to tax reform.

Fourth Quarter 2018 ? Segment Results

Annuities The Annuities segment reported income from operations of $258 million compared to $265 million in the prioryear quarter, as a lower reported tax rate as a result of tax reform was more than offset by a decrease in average account values driven primarily by the Athene reinsurance transaction completed in the fourth quarter.

Total annuity deposits of $3.8 billion were up 35% from the prior-year quarter as both variable and fixed annuities benefitted from product and distribution expansion. Variable annuity sales were up 15% versus the prior-year quarter and fixed annuity sales increased 102% over the same period.

Net flows were $675 million in the quarter, which included positive flows from both variable and fixed annuities, compared to net outflows of $222 million in the prior-year period.

For the full year, total annuity sales of $12.4 billion increased 42% versus the prior year. Net outflows of $139 million for the year improved from $2.7 billion in 2017. As a result of the reinsurance transaction in the fourth quarter, average account values decreased 8% from the prior-year period but increased 2% for the full year.

Retirement Plan Services Retirement Plan Services reported income from operations of $45 million, up 10% compared to the prior-year quarter. The growth in earnings is attributable to a lower reported tax rate as a result of tax reform and lower expenses.

Total deposits for the quarter of $2.2 billion were down 11% while deposits for the full year increased 18% to $10.1 billion driven by a 32% increase in first-year sales and 8% growth in recurring deposits.

Net flows totaled $173 million in the quarter compared to $440 million in the prior-year period. For the full year, net flows totaled $2.5 billion, up 76% compared to the prior year. Average account values of $70 billion were up 5% from the prior-year quarter primarily driven by positive net flows.

Life Insurance Life Insurance reported income from operations of $175 million, up 15% versus the prior-year quarter. The increase in earnings is primarily attributable to stronger variable investment income and a lower reported tax rate as a result of tax reform, partially offset by unfavorable mortality.

Total Life Insurance sales were $262 million, up 8% from the prior-year quarter driven by growth in VUL, IUL, UL and term. For the full year, sales were $764 million compared to $798 million in the prior year as a 2% increase in total individual life insurance sales was offset by a decline in executive benefit sales, which can fluctuate.

Total Life Insurance in-force of $744 billion grew 3% over the prior-year quarter, and average account values of $50 billion increased 3% over the prior-year quarter.

Group Protection Group Protection income from operations was $50 million in the quarter compared to $20 million in the prioryear period. The increase in earnings was primarily attributable to the acquisition of the Liberty Mutual group benefits business and a lower reported tax rate as a result of tax reform.

The total loss ratio was 76% in the current quarter as underlying claims results remained favorable even when including typical seasonality in the disability product line. The quarterly and full-year loss ratios increased year over year due to combining two blocks of business with different loss characteristics.

Group Protection sales of $272 million in the quarter were up 3% versus the prior-year quarter. Full year sales of $580 million were up 15% primarily driven by the acquisition. Employee-paid sales were 42% of total sales in 2018.

Insurance premiums were $1 billion in the quarter, up 100% from the prior-year period, driven by both the acquisition and continued growth.

Other Operations Other Operations reported a loss from operations of $53 million versus a loss of $38 million in the prior-year quarter. The decrease in earnings is primarily attributable to lower tax benefits on pre-tax losses as a result of tax reform.

Realized Gains and Losses / Impacts to Net Income Realized gains/losses and impacts to net income (after-tax) in the quarter were predominantly driven by: ? A $37 million loss from general account investments, including $15 million from the mark-to-market on

equity investments. ? A $20 million acquisition and integration expense. ? A $3 million variable annuity net derivative gain.

Unrealized Gains and Losses The company reported a net unrealized gain of $1.6 billion, pre-tax, on its available-for-sale securities at December 31, 2018. This compares to a net unrealized gain of $7.8 billion at December 31, 2017, with the yearover-year decrease primarily driven by higher rates and wider spreads.

Capital During the quarter, the company repurchased 9.1 million shares of stock at a cost of $535 million. The quarter's average diluted share count of 215.0 million was down 3% from the fourth quarter of 2017, the result of repurchasing 13.2 million shares of stock at a cost of $810 million since December 31, 2017.

Book Value As of December 31, 2018, book value per share, including accumulated other comprehensive income ("AOCI"), of $69.71 decreased 12% from a year ago. Book value per share, excluding AOCI, of $67.73 increased 5% from the prior-year period.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income from operations, adjusted operating return on equity ("ROE") and book value per share, excluding AOCI, to net income, ROE and book value per share, including AOCI, calculated in accordance with GAAP.

This press release may contain statements that are forward-looking, and actual results may differ materially, especially given the current economic and capital market conditions. Please see the Forward Looking Statements ? Cautionary Language at the end of this release for additional factors that may cause actual results to differ materially from our current expectations.

For other financial information, please refer to the company's fourth quarter 2018 statistical supplement available on its website, earnings.

Lincoln Financial Group will discuss the company's fourth quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, February 7, 2019. The conference call will be broadcast live through the company website at webcast. Please log on at least fifteen minutes prior to the call to register and download any necessary streaming media software. To participate via phone: (866) 394-4575 (U.S./Canada) or (678) 509-7536 (International). Ask for the Lincoln National Conference Call.

A replay of the call will be available by 1:00 p.m. Eastern Time on February 7, 2019 at webcast. Audio replay will be available from 1:00 p.m. Eastern Time on February 7, 2019 through 12:00 p.m. Eastern Time on February 14, 2019. To access the re-broadcast, dial: (855) 859-2056 (Domestic) or (404) 537-3406 (International). Enter conference code: 5964129.

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