# EDGAR Filing Document

**Accession Number:** 0000726865
**File Stem:** 0000726865-25-000722
**Filing Date:** 2025-8
**Character Count:** 363372
**Document Hash:** 1298a93551213c03f2fc19c60ab57db9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000726865-25-000722.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0000726865-25-000722

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 132

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LINCOLN NATIONAL LIFE INSURANCE CO /IN/
- **CENTRAL INDEX KEY:** 0000726865
- **STANDARD INDUSTRIAL CLASSIFICATION:** LIFE INSURANCE [6311]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 350472300
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-55871
- **FILM NUMBER:** 251193611

**BUSINESS ADDRESS:**
- **STREET 1:** 1301 SOUTH HARRISON STREET
- **CITY:** FORT WAYNE
- **STATE:** IN
- **ZIP:** 46802
- **BUSINESS PHONE:** 2604552000

**MAIL ADDRESS:**
- **STREET 1:** 1301 SOUTH HARRISON STREET
- **CITY:** FORT WAYNE
- **STATE:** IN
- **ZIP:** 46802

?xml version='1.0' encoding='ASCII'? cik0000726865-20250630

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM 10-Q**<br>

**(Mark One)**

**Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**For the quarterly period ended June 30, 2025**

**OR**

**Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**For the transition period from** <u>_________</u> **to** <u>_________</u>**.**

**Commission File Number: 000-55871**

________________________________

**THE LINCOLN NATIONAL LIFE INSURANCE COMPANY**

**(Exact name of registrant as specified in its charter)** 

________________________________

---

| | |
|:---|:---|
| **<u>Indiana</u>**  | **<u>35-0472300</u>**  |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |
| **<u>1301 South Harrison Street</u>**<u>,</u> **<u>Fort Wayne</u>**<u>,</u> **<u>Indiana</u>**  | **<u>46802</u>**  |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**<u>(260) 455 - 2000</u>**

---

| |
|:---|
| **(Registrant's telephone number, including area code)** |
| **Securities registered pursuant to Section 12(b) of the Act: None** |

---

&nbsp;&nbsp;&nbsp;&nbsp;

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ◻ | Accelerated Filer | ◻ |
| Non-accelerated Filer | ⌧ | Smaller Reporting Company | ◻ |
| | | Emerging Growth Company | ◻ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻ No ⌧

As of August 7, 2025, 10,000,000 shares of common stock of the registrant ($2.50 par value) were outstanding, all of which were directly owned by Lincoln National Corporation.

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

------

**The Lincoln National Life Insurance Company**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **[PART I](#id1b96fe37c7f4484b056a1b831bae437_1789)** | **[PART I](#id1b96fe37c7f4484b056a1b831bae437_1789)** | **[PART I](#id1b96fe37c7f4484b056a1b831bae437_1789)** |
| Item 1. | [Financial Statements:](#id1b96fe37c7f4484b056a1b831bae437_1746) |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Bal](#id1b96fe37c7f4484b056a1b831bae437_124)[ance Sheets as](#id1b96fe37c7f4484b056a1b831bae437_124)[of](#id1b96fe37c7f4484b056a1b831bae437_124)June 30, 2025[(Unaudited](#id1b96fe37c7f4484b056a1b831bae437_124)[)](#id1b96fe37c7f4484b056a1b831bae437_124)[and](#id1b96fe37c7f4484b056a1b831bae437_124)December 31, 2024 | [1](#id1b96fe37c7f4484b056a1b831bae437_124) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Consolidated Statements of Comprehensive Income (Loss) for the](#id1b96fe37c7f4484b056a1b831bae437_127)[three and](#id1b96fe37c7f4484b056a1b831bae437_127)[six](#id1b96fe37c7f4484b056a1b831bae437_127)[months](#id1b96fe37c7f4484b056a1b831bae437_127) |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ended](#id1b96fe37c7f4484b056a1b831bae437_127)June 30, 2025[and](#id1b96fe37c7f4484b056a1b831bae437_127)2024 | [2](#id1b96fe37c7f4484b056a1b831bae437_127) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Consolidated Statements of Stockholder's Equity for the](#id1b96fe37c7f4484b056a1b831bae437_130)[three and](#id1b96fe37c7f4484b056a1b831bae437_130)[six](#id1b96fe37c7f4484b056a1b831bae437_130)[months](#id1b96fe37c7f4484b056a1b831bae437_130) |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ended](#id1b96fe37c7f4484b056a1b831bae437_130)June 30, 2025[and](#id1b96fe37c7f4484b056a1b831bae437_130)2024 | [3](#id1b96fe37c7f4484b056a1b831bae437_130) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Consolidated Statements of Cash Flows for the six months](#id1b96fe37c7f4484b056a1b831bae437_133) |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[ended](#id1b96fe37c7f4484b056a1b831bae437_133)June 30, 2025[and](#id1b96fe37c7f4484b056a1b831bae437_133)2024 | [4](#id1b96fe37c7f4484b056a1b831bae437_133) |
|  | &nbsp;&nbsp;[Notes to Unaudited Consolidated Financial Statements:](#id1b96fe37c7f4484b056a1b831bae437_136) |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1 – Nature of Operations](#id1b96fe37c7f4484b056a1b831bae437_139)[and](#id1b96fe37c7f4484b056a1b831bae437_139)[Basis of Presentation](#id1b96fe37c7f4484b056a1b831bae437_139) | [5](#id1b96fe37c7f4484b056a1b831bae437_139) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 2 – New Accounting Standards](#id1b96fe37c7f4484b056a1b831bae437_142) | [6](#id1b96fe37c7f4484b056a1b831bae437_142) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note](#id1b96fe37c7f4484b056a1b831bae437_148)[3](#id1b96fe37c7f4484b056a1b831bae437_148)[– Investments](#id1b96fe37c7f4484b056a1b831bae437_148) | [7](#id1b96fe37c7f4484b056a1b831bae437_148) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note](#id1b96fe37c7f4484b056a1b831bae437_151)[4](#id1b96fe37c7f4484b056a1b831bae437_151)[– Variable Interest Entities](#id1b96fe37c7f4484b056a1b831bae437_151) | [17](#id1b96fe37c7f4484b056a1b831bae437_151) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note](#id1b96fe37c7f4484b056a1b831bae437_154)[5](#id1b96fe37c7f4484b056a1b831bae437_154)[– Derivative](#id1b96fe37c7f4484b056a1b831bae437_154) Instruments | [17](#id1b96fe37c7f4484b056a1b831bae437_154) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note](#id1b96fe37c7f4484b056a1b831bae437_157)[6](#id1b96fe37c7f4484b056a1b831bae437_157)[– DAC, VOBA, DSI and DFEL](#id1b96fe37c7f4484b056a1b831bae437_157) | [28](#id1b96fe37c7f4484b056a1b831bae437_157) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note](#id1b96fe37c7f4484b056a1b831bae437_160)[7](#id1b96fe37c7f4484b056a1b831bae437_160)[– Reinsurance](#id1b96fe37c7f4484b056a1b831bae437_160) | [31](#id1b96fe37c7f4484b056a1b831bae437_160) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note](#id1b96fe37c7f4484b056a1b831bae437_166)[8](#id1b96fe37c7f4484b056a1b831bae437_166)[– MRBs](#id1b96fe37c7f4484b056a1b831bae437_166) | [32](#id1b96fe37c7f4484b056a1b831bae437_166) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note](#id1b96fe37c7f4484b056a1b831bae437_169)[9](#id1b96fe37c7f4484b056a1b831bae437_169)[– Separate Accounts](#id1b96fe37c7f4484b056a1b831bae437_169) | [33](#id1b96fe37c7f4484b056a1b831bae437_169) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_172)[0](#id1b96fe37c7f4484b056a1b831bae437_172)[– Policyholder Account Balances](#id1b96fe37c7f4484b056a1b831bae437_172) | [34](#id1b96fe37c7f4484b056a1b831bae437_172) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_175)[1](#id1b96fe37c7f4484b056a1b831bae437_175)[– Future Contract Benefits](#id1b96fe37c7f4484b056a1b831bae437_175) | [38](#id1b96fe37c7f4484b056a1b831bae437_175) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_181)[2](#id1b96fe37c7f4484b056a1b831bae437_181)[– Fair Value of Financial Instruments](#id1b96fe37c7f4484b056a1b831bae437_181) | [44](#id1b96fe37c7f4484b056a1b831bae437_181) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_190)[3](#id1b96fe37c7f4484b056a1b831bae437_190)[– Contingencies and Commitments](#id1b96fe37c7f4484b056a1b831bae437_190) | [60](#id1b96fe37c7f4484b056a1b831bae437_190) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_196)[4](#id1b96fe37c7f4484b056a1b831bae437_196)[– Shares and Stockholder's Equity](#id1b96fe37c7f4484b056a1b831bae437_196) | [64](#id1b96fe37c7f4484b056a1b831bae437_196) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_199)[5](#id1b96fe37c7f4484b056a1b831bae437_199)[– Segment Information](#id1b96fe37c7f4484b056a1b831bae437_199) | [65](#id1b96fe37c7f4484b056a1b831bae437_199) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_202)[6](#id1b96fe37c7f4484b056a1b831bae437_202)[– Realized Gain (Loss)](#id1b96fe37c7f4484b056a1b831bae437_202) | [73](#id1b96fe37c7f4484b056a1b831bae437_202) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1](#id1b96fe37c7f4484b056a1b831bae437_208)[7](#id1b96fe37c7f4484b056a1b831bae437_208)[– Federal Income Taxes](#id1b96fe37c7f4484b056a1b831bae437_208) | [73](#id1b96fe37c7f4484b056a1b831bae437_208) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 18](#id1b96fe37c7f4484b056a1b831bae437_2266) [–](#id1b96fe37c7f4484b056a1b831bae437_208) [Supplemental Disclosures of Cash Flow Data](#id1b96fe37c7f4484b056a1b831bae437_2266) | [74](#id1b96fe37c7f4484b056a1b831bae437_2266) |
| Item 2. | &nbsp;&nbsp;&nbsp;&nbsp;[Management's Narrative Analysis of the Results of Operations](#id1b96fe37c7f4484b056a1b831bae437_79) | [75](#id1b96fe37c7f4484b056a1b831bae437_79) |
| Item 3. | &nbsp;&nbsp;&nbsp;&nbsp;[Quantitative and Qualitative Disclosures About Market Risk](#id1b96fe37c7f4484b056a1b831bae437_115) | [91](#id1b96fe37c7f4484b056a1b831bae437_115) |
| Item 4. | &nbsp;&nbsp;&nbsp;&nbsp;[Controls and Procedures](#id1b96fe37c7f4484b056a1b831bae437_223) | [92](#id1b96fe37c7f4484b056a1b831bae437_223) |
| **[PART II](#id1b96fe37c7f4484b056a1b831bae437_1989)** | **[PART II](#id1b96fe37c7f4484b056a1b831bae437_1989)** | **[PART II](#id1b96fe37c7f4484b056a1b831bae437_1989)** |
| Item 1. | &nbsp;&nbsp;&nbsp;&nbsp;[Legal Proceedings](#id1b96fe37c7f4484b056a1b831bae437_2009) | [93](#id1b96fe37c7f4484b056a1b831bae437_2009) |
| Item 1A. | &nbsp;&nbsp;&nbsp;&nbsp;[Risk Factors](#id1b96fe37c7f4484b056a1b831bae437_2004) | [93](#id1b96fe37c7f4484b056a1b831bae437_2004) |
| Item 2. | &nbsp;&nbsp;&nbsp;&nbsp;[Unregistered Sales of Equity Securities and Use of Proceeds](#id1b96fe37c7f4484b056a1b831bae437_1999) | [93](#id1b96fe37c7f4484b056a1b831bae437_1999) |
| Item 5. | &nbsp;&nbsp;&nbsp;&nbsp;[Other Information](#id1b96fe37c7f4484b056a1b831bae437_2049) | [93](#id1b96fe37c7f4484b056a1b831bae437_2049) |
| Item 6. | &nbsp;&nbsp;&nbsp;&nbsp;[Exhibits](#id1b96fe37c7f4484b056a1b831bae437_2060) | [93](#id1b96fe37c7f4484b056a1b831bae437_2060) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[Exhibit Index for the Report on Form 10-Q](#id1b96fe37c7f4484b056a1b831bae437_549755815963) | [94](#id1b96fe37c7f4484b056a1b831bae437_549755815963) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[Signatures](#id1b96fe37c7f4484b056a1b831bae437_549755815974) | [95](#id1b96fe37c7f4484b056a1b831bae437_549755815974) |

---

------

<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>

**PART I – FINANCIAL INFORMATION**

***Item 1.* Financial Statements**

**THE LINCOLN NATIONAL LIFE INSURANCE COMPANY**

**CONSOLIDATED BALANCE SHEETS**

(in millions, except share data)

---

| | | |
|:---|:---|:---|
| | **As of**<br>**June 30,**<br>**2025** | **As of**<br>**December 31,**<br>**2024** |
| | **(Unaudited)** | |
| **ASSETS** |  |  |
| Investments: |  |  |
| Fixed maturity available-for-sale securities, at fair value |  |  |
| &nbsp;&nbsp;&nbsp;(amortized cost: 2025 - $90,271; 2024 - $88,978; allowance for credit losses: 2025 - $85; 2024 - $46) | $84138 | $81900 |
| Trading securities | 1894 | 2005 |
| Equity securities | 334 | 294 |
| Mortgage loans on real estate, net of allowance for credit losses |  |  |
| &nbsp;&nbsp;&nbsp;(portion at fair value: 2025 - $232; 2024 - $232) | 21857 | 20940 |
| Policy loans | 2542 | 2465 |
| Derivative investments | 8219 | 9512 |
| Other investments | 6325 | 6272 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | 125309 | 123388 |
| Cash and invested cash | 6268 | 4505 |
| Deferred acquisition costs, value of business acquired and deferred sales inducements | 12484 | 12426 |
| Reinsurance recoverables, net of allowance for credit losses | 48364 | 48943 |
| Deposit assets, net of allowance for credit losses | 31592 | 30537 |
| Market risk benefit assets | 4577 | 4860 |
| Accrued investment income | 1022 | 993 |
| Goodwill | 1144 | 1144 |
| Other assets | 10184 | 10192 |
| Separate account assets | 172942 | 168438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $413886 | $405426 |
| **LIABILITIES AND STOCKHOLDER'S EQUITY** |  |  |
| **Liabilities** |  |  |
| Policyholder account balances | $128849 | $125818 |
| Future contract benefits | 41304 | 40002 |
| Funds withheld reinsurance liabilities | 26561 | 26810 |
| Market risk benefit liabilities | 1205 | 1046 |
| Deferred front-end loads | 7139 | 6750 |
| Payables for collateral on investments | 8354 | 9876 |
| Short-term debt | 173 | 24 |
| Long-term debt | 2150 | 2173 |
| Other liabilities | 13695 | 13977 |
| Separate account liabilities | 172942 | 168438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 402372 | 394914 |
| **Contingencies and Commitments (See Note 13)** |  |  |
| **Stockholder's Equity** |  |  |
| Common stock – 10,000,000 shares authorized, issued and outstanding | 13853 | 13015 |
| Retained earnings (deficit) | (385) | (173) |
| Accumulated other comprehensive income (loss) | (1954) | (2330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholder's equity | 11514 | 10512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholder's equity | $413886 | $405426 |

---

See accompanying Notes to Consolidated Financial Statements

------

<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>

**THE LINCOLN NATIONAL LIFE INSURANCE COMPANY**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

(Unaudited, in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| Insurance premiums | $1612 | $(2766) | $3239 | $(1235) |
| Fee income | 1104 | 1118 | 2232 | 2228 |
| Net investment income | 1361 | 1232 | 2702 | 2456 |
| Realized gain (loss) | (162) | 283 | (409) | 226 |
| Other revenues | 97 | 177 | 185 | 425 |
| Total revenues | 4012 | 44 | 7949 | 4100 |
| **Expenses** |  |  |  |  |
| Benefits | 1608 | (2726) | 3377 | (989) |
| Interest credited | 849 | 781 | 1672 | 1533 |
| Market risk benefit (gain) loss | (445) | (169) | 173 | (866) |
| Policyholder liability remeasurement (gain) loss | (49) | (107) | (74) | (118) |
| Commissions and other expenses | 1251 | 1290 | 2554 | 2693 |
| Interest and debt expense | 40 | 48 | 80 | 96 |
| Total expenses | 3254 | (883) | 7782 | 2349 |
| &nbsp;&nbsp;&nbsp;Income (loss) before taxes | 758 | 927 | 167 | 1751 |
| &nbsp;&nbsp;&nbsp;Federal income tax expense (benefit) | 131 | 166 | (21) | 333 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | 627 | 761 | 188 | 1418 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized investment gain (loss) | 350 | 136 | 536 | 669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market risk benefit non-performance risk gain (loss) | (350) | (197) | (33) | (661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholder liability discount rate remeasurement gain (loss) | (48) | 85 | (127) | 190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss), net of tax | (48) | 24 | 376 | 198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | $579 | $785 | $564 | $1616 |

---

See accompanying Notes to Consolidated Financial Statements

------

<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>

**THE LINCOLN NATIONAL LIFE INSURANCE COMPANY**

**CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY**

(Unaudited, in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Common Stock** |  |  |  |  |
| Balance as of beginning-of-period | $13039 | $12978 | $13015 | $12961 |
| Capital contribution from Lincoln National Corporation | 800 | – | 800 | – |
| Stock compensation/issued for benefit plans | 14 | 13 | 38 | 30 |
| &nbsp;&nbsp;Balance as of end-of-period | 13853 | 12991 | 13853 | 12991 |
| **Retained Earnings (Deficit)** |  |  |  |  |
| Balance as of beginning-of-period | (842) | (392) | (173) | (869) |
| Net income (loss) | 627 | 761 | 188 | 1418 |
| Dividends paid to Lincoln National Corporation | (170) | (944) | (400) | (1124) |
| &nbsp;&nbsp;Balance as of end-of-period | (385) | (575) | (385) | (575) |
| **Accumulated Other Comprehensive Income (Loss)** |  |  |  |  |
| Balance as of beginning-of-period | (1906) | (1411) | (2330) | (1585) |
| Other comprehensive income (loss), net of tax | (48) | 24 | 376 | 198 |
| &nbsp;&nbsp;Balance as of end-of-period | (1954) | (1387) | (1954) | (1387) |
| &nbsp;&nbsp;&nbsp;Total stockholder's equity as of end-of-period | $11514 | $11029 | $11514 | $11029 |

---

See accompanying Notes to Consolidated Financial Statements

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**THE LINCOLN NATIONAL LIFE INSURANCE COMPANY**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(Unaudited, in millions)

---

| | | |
|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| **Cash Flows from Operating Activities** |  |  |
| Net income (loss) | $188 | $1418 |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;Realized (gain) loss | 409 | (226) |
| &nbsp;&nbsp;Market risk benefit (gain) loss | 173 | (866) |
| &nbsp;&nbsp;Sales and maturities (purchases) of trading securities, net | 161 | 132 |
| &nbsp;&nbsp;Change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred acquisition costs, value of business acquired, deferred sales inducements |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and deferred front-end loads | 330 | 374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued investment income | (36) | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance liabilities and reinsurance-related balances | 147 | (1110) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (134) | (123) |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal income tax accruals | (48) | 567 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash management agreement | 72 | (1188) |
| &nbsp;&nbsp;Other | (622) | (702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 640 | (1749) |
| **Cash Flows from Investing Activities** |  |  |
| Purchases of available-for-sale securities and equity securities | (7535) | (5230) |
| Sales of available-for-sale securities and equity securities | 1294 | 1009 |
| Maturities of available-for-sale securities | 5173 | 3513 |
| Purchases of alternative investments | (675) | (543) |
| Sales and repayments of alternative investments | 541 | 88 |
| Issuance of mortgage loans on real estate | (2006) | (2132) |
| Repayment and maturities of mortgage loans on real estate | 1145 | 621 |
| Repayment (issuance) of policy loans, net | (77) | (38) |
| Net change in collateral on investments, certain derivatives and related settlements | (348) | 3814 |
| Cash received from disposition, net of cash transferred | – | 512 |
| Other | 49 | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (2439) | 1564 |
| **Cash Flows from Financing Activities** |  |  |
| Capital contribution from Lincoln National Corporation | 800 | – |
| Issuance (payment) of short-term debt | 149 | (184) |
| Payment related to sale-leaseback transactions | (4) | (8) |
| Proceeds from certain financing arrangements | 33 | – |
| Payment related to certain financing arrangements | (84) | (88) |
| Policyholder account balances: |  |  |
| Deposits | 9617 | 8101 |
| Withdrawals | (6237) | (6051) |
| Transfers from (to) separate accounts, net | (303) | 87 |
| Common stock issued for benefit plans | (9) | (8) |
| Dividends paid to Lincoln National Corporation | (400) | (195) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 3562 | 1654 |
| Net increase (decrease) in cash, invested cash and restricted cash | 1763 | 1469 |
| Cash, invested cash and restricted cash as of beginning-of-year | 4505 | 3193 |
| &nbsp;&nbsp;Cash, invested cash and restricted cash as of end-of-period | $6268 | $4662 |

---

See accompanying Notes to Consolidated Financial Statements

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**THE LINCOLN NATIONAL LIFE INSURANCE COMPANY**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**1. Nature of Operations and Basis of Presentation**

**Nature of Operations**

The Lincoln National Life Insurance Company ("LNL" or the "Company," which also may be referred to as "we," "our" or "us"), a wholly owned subsidiary of Lincoln National Corporation ("LNC" or the "Parent Company"), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of one insurance company subsidiary, Lincoln Life & Annuity Company of New York ("LLANY"). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. Through our business segments, we sell a wide range of wealth accumulation, wealth protection, group protection and retirement products and solutions. These products primarily include variable annuities, fixed annuities (including indexed), registered index-linked annuities ("RILA"), universal life insurance ("UL"), variable universal life insurance ("VUL"), linked-benefit UL and VUL, indexed universal life insurance ("IUL"), term life insurance, group life, disability and dental and employer-sponsored retirement plans and services. For more information on our segments and the products and solutions we provide, see [Note 15](#id1b96fe37c7f4484b056a1b831bae437_199).

**Basis of Presentation** 

The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles ("GAAP") for interim financial information and with the instructions for the Securities and Exchange Commission ("SEC") Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Form 10-K"), should be read in connection with the reading of these interim unaudited consolidated financial statements.

Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2024 Form 10-K.

In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company's results. Interim results for the six months ended June 30, 2025, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025. All material inter-company accounts and transactions have been eliminated in consolidation.

We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by business segment as follows:

---

| | |
|:---|:---|
| **Business Segment** | **Level of Aggregation** |
| Annuities | Variable Annuities |
| | Fixed Annuities |
| | Payout Annuities |
| Life Insurance | Traditional Life |
| | UL and Other |
| Group Protection | Group Protection |
| Retirement Plan Services | Retirement Plan Services |

---

The variable annuities level of aggregation includes RILA products, which are indexed variable annuities. The fixed annuities level of aggregation represents deferred fixed annuities. We have excluded amounts reported in Other Operations from our disaggregated disclosures that are attributable to the indemnity reinsurance agreements with Protective Life Insurance Company ("Protective") and Swiss Re Life & Health America, Inc ("Swiss Re") as these contracts are fully reinsured, run-off institutional pension business in the form of group annuity and the results of certain disability income business.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**2. New Accounting Standards**

**Adoption of Accounting Standards**

The following table provides a description of current period adoptions of Accounting Standards Updates ("ASUs").

---

| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Effective Date** | **Effect on Financial Statements or Other Significant Matters** |
| ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures | This ASU aims to enhance reportable segment disclosure requirements. It requires that a public entity disclose significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), disclose and describe other segment items and report additional measures of a segment's profit or loss if used by the CODM. | January 1, 2024 (Annual Filings) and January 1, 2025 (Quarterly Filings) | We adopted this ASU on the applicable effective dates, incorporating the required disclosures in the Segment Information Note to the consolidated financial statements, along with retrospectively updating the applicable tabular disclosures. |

---

**Future Adoption of Accounting Standards** 

The following table provides a description of future adoptions of ASUs that may have an impact on the consolidated financial statements when adopted. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.

---

| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Effective Date** | **Effect on Financial Statements or Other Significant Matters** |
| ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures | This ASU establishes new income tax disclosure requirements, as well as adjusts certain existing requirements. It specifically requires expanded and disaggregated disclosures around the tax rate reconciliation. | January 1, 2025 (Annual Filings) | We do not expect the adoption to have a material impact to the consolidated financial statements, including disclosures within the Federal Income Taxes Note. |
| ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40) | This ASU requires disclosure of specified information about certain costs and expenses, including employee compensation, depreciation and intangible asset amortization. | January 1, 2027 | We are evaluating the impact of this ASU to the consolidated financial statements. |

---

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**3. Investments** 

**Fixed Maturity AFS Securities**

The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity available-for-sale ("AFS") securities (in millions) were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Amortized Cost** | **Gross Unrealized** | **Gross Unrealized** | **Allowance for <br>Credit Losses** | **Fair Value** |
| | **Amortized Cost** | **Gains** | **Losses** | **Allowance for <br>Credit Losses** | **Fair Value** |
| Fixed maturity AFS securities: |  |  |  |  |  |
| Corporate bonds | $68163 | $703 | $6099 | $36 | $62731 |
| U.S. government bonds | 590 | 6 | 33 | – | 563 |
| State and municipal bonds | 2246 | 27 | 252 | – | 2021 |
| Foreign government bonds | 276 | 13 | 54 | – | 235 |
| RMBS | 2006 | 30 | 128 | 5 | 1903 |
| CMBS | 1977 | 13 | 103 | – | 1887 |
| ABS | 14772 | 116 | 299 | 43 | 14546 |
| Hybrid and redeemable preferred securities | 241 | 22 | 10 | 1 | 252 |
| &nbsp;&nbsp;&nbsp;Total fixed maturity AFS securities | $90271 | $930 | $6978 | $85 | $84138 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Amortized Cost** | **Gross Unrealized** | **Gross Unrealized** | **Allowance for Credit Losses** | **Fair Value** |
| | **Amortized Cost** | **Gains** | **Losses** | **Allowance for Credit Losses** | **Fair Value** |
| Fixed maturity AFS securities: |  |  |  |  |  |
| Corporate bonds | $67991 | $560 | $6704 | $14 | $61833 |
| U.S. government bonds | 427 | 3 | 40 | – | 390 |
| State and municipal bonds | 2391 | 27 | 270 | – | 2148 |
| Foreign government bonds | 277 | 12 | 56 | – | 233 |
| RMBS | 1849 | 23 | 162 | 7 | 1703 |
| CMBS | 1713 | 5 | 135 | – | 1583 |
| ABS | 14103 | 99 | 409 | 24 | 13769 |
| Hybrid and redeemable preferred securities | 227 | 25 | 10 | 1 | 241 |
| &nbsp;&nbsp;&nbsp;Total fixed maturity AFS securities | $88978 | $754 | $7786 | $46 | $81900 |

---

The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30, 2025, were as follows:

---

| | | |
|:---|:---|:---|
| | **Amortized Cost** | **Fair Value** |
| Due in one year or less | $4212 | $4182 |
| Due after one year through five years | 19460 | 19150 |
| Due after five years through ten years | 13107 | 12598 |
| Due after ten years | 34737 | 29872 |
| Subtotal | 71516 | 65802 |
| Structured securities (RMBS, CMBS, ABS) | 18755 | 18336 |
| &nbsp;&nbsp;&nbsp;Total fixed maturity AFS securities | $90271 | $84138 |

---

Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Less Than or Equal<br>to Twelve Months** | **Less Than or Equal<br>to Twelve Months** | **Greater Than Twelve <br>Months** | **Greater Than Twelve <br>Months** | **Total** | **Total** |
| | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** <sup>(1)</sup> |
| Fixed maturity AFS securities: |  |  |  |  |  |  |
| Corporate bonds | $8443 | $749 | $33094 | $5350 | $41537 | $6099 |
| U.S. government bonds | 51 | 1 | 223 | 32 | 274 | 33 |
| State and municipal bonds | 282 | 26 | 923 | 226 | 1205 | 252 |
| Foreign government bonds | 19 | 3 | 126 | 51 | 145 | 54 |
| RMBS | 473 | 10 | 798 | 118 | 1271 | 128 |
| CMBS | 195 | 3 | 1016 | 100 | 1211 | 103 |
| ABS | 2277 | 40 | 4104 | 259 | 6381 | 299 |
| Hybrid and redeemable |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;preferred securities | 17 | 1 | 90 | 9 | 107 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity AFS securities | $11757 | $833 | $40374 | $6145 | $52131 | $6978 |
| Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | 6022 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Less Than or Equal<br>to Twelve Months** | **Less Than or Equal<br>to Twelve Months** | **Greater Than Twelve <br>Months** | **Greater Than Twelve <br>Months** | **Total** | **Total** |
| | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** <sup>(1)</sup> |
| Fixed maturity AFS securities: |  |  |  |  |  |  |
| Corporate bonds | $16388 | $1290 | $29045 | $5414 | $45433 | $6704 |
| U.S. government bonds | 85 | 3 | 224 | 37 | 309 | 40 |
| State and municipal bonds | 652 | 61 | 721 | 209 | 1373 | 270 |
| Foreign government bonds | 29 | 5 | 118 | 51 | 147 | 56 |
| RMBS | 658 | 29 | 724 | 133 | 1382 | 162 |
| CMBS | 475 | 29 | 777 | 106 | 1252 | 135 |
| ABS | 2801 | 106 | 3826 | 303 | 6627 | 409 |
| Hybrid and redeemable |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;preferred securities | 18 | 1 | 93 | 9 | 111 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity AFS securities | $21106 | $1524 | $35528 | $6262 | $56634 | $7786 |
| Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | Total number of fixed maturity AFS securities in an unrealized loss position | 6645 |

---

<sup>(1)</sup> As of June 30, 2025, and December 31, 2024, we recognized $18 million and $23 million of gross unrealized losses, respectively, in other comprehensive income (loss) ("OCI") for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Fair Value** | **Gross Unrealized Losses** | **Number** <br>**of** <br>**Securities** <sup>(1)</sup> |
| Less than six months | $1797 | $557 | 352 |
| Six months or greater, but less than nine months | 1163 | 353 | 239 |
| Nine months or greater, but less than twelve months | 1455 | 478 | 297 |
| Twelve months or greater | 4513 | 2217 | 789 |
| Total | $8928 | $3605 | 1677 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Fair Value** | **Gross Unrealized Losses** | **Number** <br>**of** <br>**Securities** <sup>(1)</sup> |
| Less than six months | $5209 | $1556 | 780 |
| Six months or greater, but less than nine months | 365 | 195 | 209 |
| Nine months or greater, but less than twelve months | 71 | 28 | 36 |
| Twelve months or greater | 4305 | 2142 | 734 |
| Total | $9950 | $3921 | 1759 |

---

<sup>(1)</sup> We may reflect a security in more than one aging category based on various purchase dates.

Our gross unrealized losses on fixed maturity AFS securities decreased by $808 million for the six months ended June 30, 2025. As discussed further below, we do not believe the unrealized loss position as of June 30, 2025, required an impairment recognized in earnings as: (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of June 30, 2025, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities.

As of June 30, 2025, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to rising interest rates and widening credit spreads since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security.

Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings ("S&P") or Baa3 or higher by Moody's Investors Service ("Moody's")) are generally considered by the rating agencies and market participants to be low credit risk. As of June 30, 2025, and December 31, 2024, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of June 30, 2025, and December 31, 2024, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $2.9 billion and $2.7 billion, respectively, and a fair value of $2.8 billion and $2.7 billion, respectively. Based upon the analysis discussed above, we believe that as of June 30, 2025, and December 31, 2024, we would have recovered the amortized cost of each corporate bond.

As of June 30, 2025, the unrealized losses associated with our mortgage-backed securities ("MBS") and asset-backed securities ("ABS") were attributable primarily to rising interest rates and widening credit spreads since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

As of June 30, 2025, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security.

*Credit Loss Impairment on Fixed Maturity AFS Securities*

We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of or For the Three Months Ended June 30, 2025** | **As of or For the Three Months Ended June 30, 2025** | **As of or For the Three Months Ended June 30, 2025** | **As of or For the Three Months Ended June 30, 2025** | **As of or For the Three Months Ended June 30, 2025** |
| | **Corporate Bonds** | **RMBS** | **ABS** | **Hybrids** | **Total** |
| Balance as of beginning-of-period | $23 | $6 | $43 | $1 | $73 |
| Additions from purchases of PCD debt securities <sup>(1)</sup> | – | – | – | – | – |
| Additions for securities for which credit losses were |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;not previously recognized | 16 | – | – | – | 16 |
| Additions (reductions) for securities for which |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;credit losses were previously recognized | 4 | (1) | – | – | 3 |
| Reductions for securities charged off | (7) | – | – | – | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $36 | $5 | $43 | $1 | $85 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** |
| | **Corporate Bonds** | **RMBS** | **ABS** | **Hybrids** | **Total** |
| Balance as of beginning-of-year | $14 | $7 | $24 | $1 | $46 |
| Additions from purchases of PCD debt securities <sup>(1)</sup> | – | – | – | – | – |
| Additions for securities for which credit losses were |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;not previously recognized | 25 | – | 8 | – | 33 |
| Additions (reductions) for securities for which |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;credit losses were previously recognized | 5 | (2) | 11 | – | 14 |
| Reductions for securities charged off | (8) | – | – | – | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $36 | $5 | $43 | $1 | $85 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of or For the Three Months Ended June 30, 2024** | **As of or For the Three Months Ended June 30, 2024** | **As of or For the Three Months Ended June 30, 2024** | **As of or For the Three Months Ended June 30, 2024** | **As of or For the Three Months Ended June 30, 2024** |
| | **Corporate Bonds** | **RMBS** | **ABS** | **Hybrids** | **Total** |
| Balance as of beginning-of-period | $10 | $6 | $4 | $1 | $21 |
| Additions from purchases of PCD debt securities <sup>(1)</sup> | – | – | – | – | – |
| Additions for securities for which credit losses were |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;not previously recognized | 1 | – | 15 | – | 16 |
| Additions (reductions) for securities for which |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;credit losses were previously recognized | 8 | – | – | – | 8 |
| Reductions for disposed securities | (1) | – | – | – | (1) |
| Reductions for securities charged off | (5) | – | – | – | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $13 | $6 | $19 | $1 | $39 |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** |
| | **Corporate Bonds** | **RMBS** | **ABS** | **Hybrids** | **Total** |
| Balance as of beginning-of-year | $8 | $6 | $4 | $1 | $19 |
| Additions from purchases of PCD debt securities <sup>(1)</sup> | – | – | – | – | – |
| Additions for securities for which credit losses were |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;not previously recognized | 2 | – | 15 | – | 17 |
| Additions (reductions) for securities for which |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;credit losses were previously recognized | 11 | – | – | – | 11 |
| Reductions for disposed securities | (3) | – | – | – | (3) |
| Reductions for securities charged-off | (5) | – | – | – | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $13 | $6 | $19 | $1 | $39 |

---

<sup>(1)</sup> Represents purchased credit-deteriorated ("PCD") fixed maturity AFS securities.

<sup>(2)</sup> As of June 30, 2025 and 2024, accrued investment income on fixed maturity AFS securities totaled $776 million and $811 million, respectively, and was excluded from the estimate of credit losses.

Losses from loan modifications were $13 million and $3 million for the three months ended June 30, 2025 and 2024, respectively, and $18 million and $3 million for the six months ended June 30, 2025 and 2024, respectively, reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

**Mortgage Loans on Real Estate**

The following provides the current and past due composition of our mortgage loans on real estate (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Commercial** | **Residential** | **Total** | **Commercial** | **Residential** | **Total** |
| Current | $17505 | $4154 | $21659 | $17424 | $3387 | $20811 |
| 30 to 59 days past due | – | 92 | 92 | 6 | 71 | 77 |
| 60 to 89 days past due | – | 38 | 38 | – | 33 | 33 |
| 90 or more days past due | 57 | 114 | 171 | 35 | 90 | 125 |
| Allowance for credit losses | (97) | (65) | (162) | (99) | (53) | (152) |
| Unamortized premium (discount) | (5) | 97 | 92 | (6) | 83 | 77 |
| Mark-to-market gains (losses) <sup>(1)</sup> | (33) | – | (33) | (31) | – | (31) |
| Total carrying value | $17427 | $4430 | $21857 | $17329 | $3611 | $20940 |

---

<sup>(1)</sup> Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of June 30, 2025, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $48 million and $30 million, respectively. As of December 31, 2024, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $30 million and $21 million, respectively. As of June 30, 2025 and December 31, 2024, there were no such mortgage loans on real estate that were more than 90 days past due and still accruing interest. For additional information, see "Fair Value Option" in [Note 1](#id1b96fe37c7f4484b056a1b831bae437_181)2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers:

---

| | | |
|:---|:---|:---|
| | **As of<br> June 30,<br>2025** | **As of <br> December 31,<br>2024** |
| Commercial mortgage loans on real estate | $10 | $4 |
| Residential mortgage loans on real estate | 117 | 92 |
| Total | $127 | $96 |

---

We use loan-to-value ("LTV") and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **LTV <br>Less Than 65%** | **Debt-Service Coverage Ratio** | **LTV <br>65% to 75%** | **Debt-Service Coverage Ratio** | **LTV <br>Greater Than 75%** | **Debt-Service Coverage Ratio** | **Total** |
| **Origination Year** | | | | | | | |
| 2025 | $630 | 1.65 | $65 | 1.25 | $13 | 1.14 | $708 |
| 2024 | 1540 | 1.73 | 73 | 1.42 | 7 | 1.48 | 1620 |
| 2023 | 1313 | 1.76 | 39 | 1.37 | 2 | 1.12 | 1354 |
| 2022 | 1710 | 2.16 | 86 | 1.54 | 5 | 1.37 | 1801 |
| 2021 | 2225 | 3.71 | 41 | 1.66 | 9 | 1.58 | 2275 |
| 2020 and prior | 9709 | 2.55 | 56 | 1.45 | 33 | 2.09 | 9798 |
| Total | $17127 |  | $360 |  | $69 |  | $17556 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **LTV <br>Less Than 65%** | **Debt-Service <br>Coverage <br>Ratio** | **LTV <br>65% to 75%** | **Debt-Service <br>Coverage <br>Ratio** | **LTV <br>Greater Than 75%** | **Debt-Service <br>Coverage <br>Ratio** | **Total** |
| **Origination Year** | | | | | | | |
| 2024 | $1548 | 1.73 | $83 | 1.41 | $– | – | $1631 |
| 2023 | 1317 | 1.77 | 44 | 1.36 | – | – | 1361 |
| 2022 | 1721 | 2.11 | 94 | 1.55 | 4 | 1.30 | 1819 |
| 2021 | 2249 | 3.49 | 47 | 1.52 | – | – | 2296 |
| 2020 | 1158 | 3.33 | 4 | 1.53 | – | – | 1162 |
| 2019 and prior | 9056 | 2.38 | 126 | 1.58 | 8 | 1.30 | 9190 |
| Total | $17049 |  | $398 |  | $12 |  | $17459 |

---

We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Performing** | **Nonperforming** | **Total** |
| **Origination Year** | | | |
| 2025 | $754 | $– | $754 |
| 2024 | 2074 | 39 | 2113 |
| 2023 | 472 | 20 | 492 |
| 2022 | 457 | 33 | 490 |
| 2021 | 404 | 14 | 418 |
| 2020 and prior | 217 | 11 | 228 |
| Total | $4378 | $117 | $4495 |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

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| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Performing** | **Nonperforming** | **Total** |
| **Origination Year** | | | |
| 2024 | $1895 | $14 | $1909 |
| 2023 | 557 | 16 | 573 |
| 2022 | 492 | 33 | 525 |
| 2021 | 427 | 11 | 438 |
| 2020 | 65 | 4 | 69 |
| 2019 and prior | 136 | 14 | 150 |
| Total | $3572 | $92 | $3664 |

---

*Credit Losses on Mortgage Loans on Real Estate*

In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value.

Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **As of or For the Three Months Ended<br> June 30, 2025** | **As of or For the Three Months Ended<br> June 30, 2025** | **As of or For the Three Months Ended<br> June 30, 2025** |
| | **Commercial** | **Residential** | **Total** |
| Balance as of beginning-of-period | $97 | $56 | $153 |
| Additions (reductions) from provision for credit loss  |  |  |  |
| &nbsp;&nbsp;&nbsp;expense <sup>(1)</sup> | – | 9 | 9 |
| Additions from purchases of PCD mortgage loans on |  |  |  |
| &nbsp;&nbsp;&nbsp;real estate | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $97 | $65 | $162 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **As of or For the Six Months Ended<br> June 30, 2025** | **As of or For the Six Months Ended<br> June 30, 2025** | **As of or For the Six Months Ended<br> June 30, 2025** |
| | **Commercial** | **Residential** | **Total** |
| Balance as of beginning-of-year | $99 | $53 | $152 |
| Additions (reductions) from provision for credit loss |  |  |  |
| &nbsp;&nbsp;&nbsp;expense <sup>(1)</sup> | (2) | 12 | 10 |
| Additions from purchases of PCD mortgage loans on |  |  |  |
| &nbsp;&nbsp;&nbsp;real estate | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $97 | $65 | $162 |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

---

| | | | |
|:---|:---|:---|:---|
| | **As of or For the Three Months Ended<br> June 30, 2024** | **As of or For the Three Months Ended<br> June 30, 2024** | **As of or For the Three Months Ended<br> June 30, 2024** |
| | **Commercial** | **Residential** | **Total** |
| Balance as of beginning-of-period | $84 | $31 | $115 |
| Additions (reductions) from provision for credit loss  |  |  |  |
| &nbsp;&nbsp;&nbsp;expense <sup>(1)</sup> | 8 | 9 | 17 |
| Additions from purchases of PCD mortgage loans on |  |  |  |
| &nbsp;&nbsp;&nbsp;real estate | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $92 | $40 | $132 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **As of or For the Six Months Ended<br> June 30, 2024** | **As of or For the Six Months Ended<br> June 30, 2024** | **As of or For the Six Months Ended<br> June 30, 2024** |
| | **Commercial** | **Residential** | **Total** |
| Balance as of beginning-of-year | $86 | $28 | $114 |
| Additions (reductions) from provision for credit loss  |  |  |  |
| &nbsp;&nbsp;&nbsp;expense <sup>(1)</sup> | 6 | 12 | 18 |
| Additions from purchases of PCD mortgage loans on |  |  |  |
| &nbsp;&nbsp;&nbsp;real estate | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period <sup>(2)</sup> | $92 | $40 | $132 |

---

<sup>(1)</sup> We recognized $1 million and less than $1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2025 and 2024, respectively, and less than $1 million and $1 million for the six months ended June 30, 2025 and 2024, respectively.

<sup>(2)</sup> Accrued investment income on mortgage loans on real estate totaled $107 million and $80 million as of June 30, 2025 and 2024, respectively, and was excluded from the estimate of credit losses.

**Alternative Investments** 

As of June 30, 2025, and December 31, 2024, alternative investments included investments in 353 and 351 different partnerships, respectively, and represented approximately 3% of total investments.

**Impairments on Fixed Maturity AFS Securities**

Details underlying credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Credit Loss Benefit (Expense)** |  |  |  |  |
| Fixed maturity AFS securities: |  |  |  |  |
| Corporate bonds | $(20) | $(8) | $(30) | $(10) |
| RMBS | 1 | – | 2 | – |
| ABS | – | (15) | (19) | (15) |
| &nbsp;&nbsp;&nbsp;Total credit loss benefit (expense) | $(19) | $(23) | $(47) | $(25) |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**Payables for Collateral on Investments**

The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
| Collateral payable for derivative investments <sup>(1)</sup> | $4891 | $4891 | $7069 | $7069 |
| Securities pledged under securities lending agreements <sup>(2)</sup> | 155 | 150 | 157 | 151 |
| Securities pledged under repurchase agreements <sup>(3)</sup> | 418 | 435 | – | – |
| Investments pledged for FHLBI <sup>(4)</sup> | 2890 | 4124 | 2650 | 3657 |
| Total payables for collateral on investments | $8354 | $9600 | $9876 | $10877 |

---

<sup>(1)</sup> We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties' credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash or fixed maturity AFS securities. This also includes interest payable on collateral. See [Note 5](#id1b96fe37c7f4484b056a1b831bae437_154) for additional information.

<sup>(2)</sup> Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

<sup>(3)</sup> Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in cash and invested cash or fixed maturity AFS securities.

<sup>(4)</sup> Our pledged investments for Federal Home Loan Bank ("FHLB") of Indianapolis ("FHLBI") are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:

---

| | | |
|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| Collateral payable for derivative investments | $(2178) | $2481 |
| Securities pledged under securities |  |  |
| lending agreements | (2) | (3) |
| Securities pledged under repurchase agreements | 418 | – |
| Investments pledged for FHLBI | 240 | 550 |
| &nbsp;&nbsp;&nbsp;Total increase (decrease) in payables for |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;collateral on investments | $(1522) | $3028 |

---

We have elected not to offset our repurchase agreements and securities lending transactions in the consolidated financial statements. The remaining contractual maturities of repurchase agreements and securities lending transactions accounted for as secured borrowings (in millions) were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Overnight and Continuous** | **Up to 30 Days** | **30-90 Days** | **Greater Than <br>90 Days** | **Total** |
| **Repurchase Agreements** | | | | | |
| Corporate bonds | $– | $– | $– | $418 | $418 |
| **Securities Lending** |  |  |  |  |  |
| Corporate bonds | $143 | $– | $– | $– | $143 |
| State and municipal bonds | 4 | – | – | – | 4 |
| Foreign government bonds | 2 | – | – | – | 2 |
| Equity securities | 6 | – | – | – | 6 |
| &nbsp;&nbsp;&nbsp;Total gross secured borrowings | $155 | $– | $– | $418 | $573 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Overnight and Continuous** | **Up to 30 Days** | **30-90 Days** | **Greater Than <br>90 Days** | **Total** |
| **Securities Lending** | | | | | |
| Corporate bonds | $144 | $– | $– | $– | $144 |
| U.S. government bonds | 1 | – | – | – | 1 |
| Equity securities | 12 | – | – | – | 12 |
| &nbsp;&nbsp;&nbsp;Total gross secured borrowings | $157 | $– | $– | $– | $157 |

---

We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of June 30, 2025, we had not received any collateral and, therefore, had not sold or repledged any

collateral under these agreements.

We also accept collateral from derivative counterparties in the form of securities that we are permitted to sell or re-pledge. As of June 30, 2025, the fair value of this collateral received that we are permitted to sell or re-pledge was $3.2 billion, and we had re-pledged $358 million of this collateral to cover our collateral requirements.

We had not pledged any fixed maturity AFS securities to derivative counterparties as of June 30, 2025.

**Investment Commitments**

As of June 30, 2025, our investment commitments were $4.3 billion, which included $3.6 billion of limited partnerships ("LPs"), $426 million of mortgage loans on real estate and $256 million of private placement securities.

**Concentrations of Financial Instruments**

As of June 30, 2025, and December 31, 2024, our most significant investments in one issuer were our investments in securities issued by White Chapel V LLC and White Chapel LLC with a fair value of $1.5 billion and $1.1 billion, respectively, or 1% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

As of June 30, 2025, and December 31, 2024, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $16.3 billion and $16.2 billion, respectively, or 13% of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $10.7 billion, or 9% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**4. Variable Interest Entities** 

**Unconsolidated Variable Interest Entities**

*Structured Securities*

Through our investment activities, we make passive investments in structured securities issued by variable interest entities ("VIEs") for which we are not the manager. These structured securities include our ABS, residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities ("CMBS"). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on the Consolidated Balance Sheets. For information about these structured securities, see [Note 3](#id1b96fe37c7f4484b056a1b831bae437_148).

*Limited Partnerships and Limited Liability Companies*

We invest in certain LPs and limited liability companies ("LLCs") that we have concluded are VIEs. Our exposure to loss is limited to the capital we invest in the LPs and LLCs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on the Consolidated Balance Sheets and were $5.3 billion and $5.1 billion as of June 30, 2025, and December 31, 2024, respectively.

**5. Derivative Instruments**

We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk, commodity risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities.

Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies.

See [Note 12](#id1b96fe37c7f4484b056a1b831bae437_181) for additional disclosures related to the fair value of our derivative instruments.

**Interest Rate Contracts**

We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include:

*Forward-Starting Interest Rate Swaps*

We use forward-starting interest rate swaps to hedge the interest rate exposure within our annuity, life insurance and retirement products.

*Interest Rate Cap Corridors*

We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain annuity contracts and life insurance products. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor.

*Interest Rate Futures*

We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity and RILA products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

*Interest Rate Swap Agreements*

We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity and RILA products.

We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond.

Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed maturity securities due to interest rate risks.

*Bond Forwards and Reverse Treasury Locks*

We use bond forwards and reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities.

**Foreign Currency Contracts**

We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include:

*Currency Futures*

We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate.

*Foreign Currency Swaps*

We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate.

We also use foreign currency swaps designated and qualifying as cash flow and fair value hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies.

*Foreign Currency Forwards* 

We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate.

**Equity Market Contracts**

We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include:

*Call Options Based on the S&P 500® Index and Other Indices*

We use call options to hedge the liability exposure on certain options in variable annuity, RILA, fixed indexed annuity, IUL and VUL products.

Our RILA, fixed indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index or other indices. Policyholders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our policyholders, such that we are economically hedged with respect to equity returns for the current reset period.

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*Consumer Price Index Swaps*

We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception.

*Equity Futures*

We use equity futures contracts to hedge the liability exposure on certain options in variable annuity and RILA products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

*Put Options*

We use put options to hedge the liability exposure on certain options in variable annuity, RILA and VUL products. Put options are contracts that require the buyers to pay at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount.

*Total Return Swaps*

We use total return swaps to hedge the liability exposure on certain options in variable annuity, RILA and VUL products.

In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest.

**Commodity Contracts**

We use commodity contracts to economically hedge certain investments that are closely tied to the changes in commodity values. The commodity contract is an over-the-counter contract that combines a purchase put/sold call to lock in a commodity price within a predetermined range in exchange for a net premium.

**Credit Contracts**

We use derivative instruments as part of our credit risk management strategy that are economic hedges and include:

*Credit Default Swaps – Buying Protection*

We use credit default swaps ("CDSs") to hedge the liability exposure on certain options in variable annuity products.

We buy CDSs to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

*CDSs – Selling Protection*

We use CDSs to hedge the liability exposure on certain options in variable annuity products.

We sell CDSs to offer credit protection to policyholders and investors. The CDSs hedge the policyholders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

**Other Derivatives**

*Lapse Protection Rider Ceded Derivative*

We also have an inter-company agreement through which Lincoln National Reinsurance Company (Barbados) Limited ("LNBAR"), an affiliated reinsurer, assumes the risk under certain UL contracts for lapse protection riders ("LPR"). If the policyholder's account balance is insufficient to pay the cost of insurance charges required to keep the policy in force, and the policyholder has made the required deposits, we will be reimbursed for those charges.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**Embedded Derivatives**

We have embedded derivatives that include:

*RILA, Fixed Indexed Annuity and IUL Contracts Embedded Derivatives*

Our RILA, fixed indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500<sup>®</sup> Index or other indices. Policyholders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our policyholders, such that we are economically hedged with respect to equity returns for the current reset period.

*Reinsurance-Related Embedded Derivatives*

We have certain modified coinsurance and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

**Primary Risks Managed by Derivatives** 

We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Notional Amounts** | **Fair Value** | **Fair Value** | **Notional Amounts** | **Fair Value** | **Fair Value** |
| | **Notional Amounts** | **Asset** | **Liability** | **Notional Amounts** | **Asset** | **Liability** |
| **Qualifying Hedges** | | | | | | |
| Cash flow hedges: |  |  |  |  |  |  |
| Interest rate contracts <sup>(1)</sup> | $1040 | $14 | $5 | $632 | $2 | $16 |
| Foreign currency contracts <sup>(1)</sup> | 4888 | 331 | 154 | 4738 | 556 | 44 |
| &nbsp;&nbsp;&nbsp;Total cash flow hedges | 5928 | 345 | 159 | 5370 | 558 | 60 |
| Fair value hedges: |  |  |  |  |  |  |
| Interest rate contracts <sup>(1)</sup> | 579 | 1 | 21 | 435 | 8 | 16 |
| Foreign currency contracts <sup>(1)</sup> | 25 | – | 2 | 25 | 1 | – |
| &nbsp;&nbsp;&nbsp;Total fair value hedges | 604 | 1 | 23 | 460 | 9 | 16 |
| **Non-Qualifying Hedges** |  |  |  |  |  |  |
| Interest rate contracts <sup>(1)</sup> | 81622 | 42 | 428 | 75445 | 63 | 439 |
| Foreign currency contracts <sup>(1)</sup> | 338 | 14 | 7 | 348 | 30 | 2 |
| Equity market contracts <sup>(1)</sup> | 220601 | 13481 | 5211 | 191171 | 13072 | 3879 |
| Credit contracts <sup>(1)</sup> | 62 | – | – | 57 | – | – |
| LPR ceded derivative <sup>(2)</sup> | – | 198 | – | – | 190 | – |
| Embedded derivatives: |  |  |  |  |  |  |
| Reinsurance-related <sup>(3)</sup> | – | 470 | – | – | 728 | – |
| RILA, fixed indexed annuity and IUL |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;contracts <sup>(4)</sup> | – | 2134 | 13089 | – | 1970 | 12449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivative instruments | $309155 | $16685 | $18917 | $272851 | $16620 | $16845 |

---

<sup>(1)</sup> These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements.

<sup>(2)</sup> Reported in other assets on the Consolidated Balance Sheets.

<sup>(3)</sup> Reported in funds withheld reinsurance liabilities on the Consolidated Balance Sheets.

<sup>(4)</sup> Reported in policyholder account balances and deposit assets on the Consolidated Balance Sheets.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The maturity of the notional amounts of derivative instruments (in millions) was as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Remaining Life as of June 30, 2025** | **Remaining Life as of June 30, 2025** | **Remaining Life as of June 30, 2025** | **Remaining Life as of June 30, 2025** | **Remaining Life as of June 30, 2025** | **Remaining Life as of June 30, 2025** |
| | **Less Than 1 Year** | **1 - 5 <br>Years** | **6 - 10 <br>Years** | **11 - 30 <br>Years** | **Over 30 <br>Years** | **Total** |
| Interest rate contracts <sup>(1)</sup> | $15089 | $18559 | $22718 | $26845 | $30 | $83241 |
| Foreign currency contracts <sup>(2)</sup> | 211 | 1367 | 1749 | 1882 | 42 | 5251 |
| Equity market contracts | 174565 | 36540 | 7445 | 7 | 2044 | 220601 |
| Credit contracts | – | 62 | – | – | – | 62 |
| Total derivative instruments with |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;notional amounts | $189865 | $56528 | $31912 | $28734 | $2116 | $309155 |

---

<sup>(1)</sup> As of June 30, 2025, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 10, 2029.

<sup>(2)</sup> As of June 30, 2025, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.

The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Amortized Cost of the Hedged Assets (Liabilities)** | **Amortized Cost of the Hedged Assets (Liabilities)** | **Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets (Liabilities)** | **Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets (Liabilities)** |
| | **As of June 30, 2025** | **As of December 31, 2024** | **As of June 30, 2025** | **As of December 31, 2024** |
| **Line Item in the Consolidated Balance Sheets in** | | | | |
| **which the Hedged Item is Included** | | | | |
| Fixed maturity AFS securities, at fair value | $648 | $484 | $25 | $7 |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) ("AOCI") (in millions) was as follows:

---

| | | |
|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| **Unrealized Gain (Loss) on Derivative Instruments** |  |  |
| Balance as of beginning-of-year | $402 | $249 |
| Other comprehensive income (loss): |  |  |
| Unrealized holding gains (losses) arising during the period: |  |  |
| &nbsp;&nbsp;&nbsp;Cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts | 22 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency contracts | 169 | 28 |
| Change in foreign currency exchange rate adjustment | (474) | 117 |
| Income tax benefit (expense) | 60 | (35) |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;Reclassification adjustment for gains (losses) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;included in net income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts <sup>(1)</sup> | 1 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency contracts <sup>(1)</sup> | 27 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency contracts <sup>(2)</sup> | 3 | (1) |
| &nbsp;&nbsp;&nbsp;Income tax benefit (expense) | (7) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period | $155 | $356 |

---

<sup>(1)</sup> The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss).

<sup>(2)</sup> The OCI offset is reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Gain (Loss) Recognized in Income <br>For the Three Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Three Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Three Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Three Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Three Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Three Months Ended June 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Realized Gain (Loss)** | **Net Investment Income** | **Benefits** | **Realized Gain (Loss)** | **Net Investment Income** | **Benefits** |
| **Total Line Items in which the** |  |  |  |  |  |  |
| **Effects of Fair Value or Cash** |  |  |  |  |  |  |
| **Flow Hedges are Recorded** | $(162) | $1361 | $1608 | $283 | $1232 | $(2726) |
| **Qualifying Hedges** |  |  |  |  |  |  |
| Gain or (loss) on fair value hedging |  |  |  |  |  |  |
| relationships: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items | – | 3 | – | – | (7) | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;instruments | – | (3) | – | – | 7 | – |
| &nbsp;&nbsp;&nbsp;Foreign currency contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items | – | 2 | – | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;instruments | – | (2) | – | – | – | – |
| Gain or (loss) on cash flow hedging |  |  |  |  |  |  |
| relationships: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount of gain or (loss) reclassified |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from AOCI into income | – | 1 | – | – | (1) | – |
| &nbsp;&nbsp;&nbsp;Foreign currency contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount of gain or (loss) reclassified |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from AOCI into income | – | 12 | – | (1) | 14 | – |
| **Non-Qualifying Hedges** |  |  |  |  |  |  |
| Interest rate contracts | (94) | – | – | (115) | – | – |
| Foreign currency contracts | (3) | – | – | – | – | – |
| Equity market contracts | 1133 | – | – | 817 | – | – |
| Credit contracts | 1 | – | – | – | – | – |
| LPR ceded derivative | – | – | (8) | – | – | (1) |
| Embedded derivatives: |  |  |  |  |  |  |
| Reinsurance-related | (72) | – | – | 42 | – | – |
| RILA, fixed indexed annuity and IUL |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;contracts | (2015) | – | – | (328) | – | – |

---

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Gain (Loss) Recognized in Income <br>For the Six Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Six Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Six Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Six Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Six Months Ended June 30,** | **Gain (Loss) Recognized in Income <br>For the Six Months Ended June 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Realized Gain (Loss)** | **Net Investment Income** | **Benefits** | **Realized Gain (Loss)** | **Net Investment Income** | **Benefits** |
| **Total Line Items in which the** |  |  |  |  |  |  |
| **Effects of Fair Value or Cash** |  |  |  |  |  |  |
| **Flow Hedges are Recorded** | (409) | 2702 | 3377 | 226 | 2456 | (989) |
| **Qualifying Hedges** |  |  |  |  |  |  |
| Gain or (loss) on fair value hedging |  |  |  |  |  |  |
| relationships: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items | – | 14 | – | – | (24) | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;instruments | – | (14) | – | – | 24 | – |
| &nbsp;&nbsp;&nbsp;Foreign currency contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items | – | 3 | – | – | (1) | – |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;instruments | – | (3) | – | – | 1 | – |
| Gain or (loss) on cash flow hedging |  |  |  |  |  |  |
| relationships: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount of gain or (loss) reclassified |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from AOCI into income | – | 1 | – | – | (1) | – |
| &nbsp;&nbsp;&nbsp;Foreign currency contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount of gain or (loss) reclassified |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from AOCI into income | 3 | 27 | – | (1) | 29 | – |
| **Non-Qualifying Hedges** |  |  |  |  |  |  |
| Interest rate contracts | (12) | – | – | (277) | – | – |
| Foreign currency contracts | (5) | – | – | – | – | – |
| Equity market contracts | 25 | – | – | 2952 | – | – |
| Credit contracts | 2 | – | – | – | – | – |
| LPR ceded derivative | – | – | (8) | – | – | 4 |
| Embedded derivatives: |  |  |  |  |  |  |
| Reinsurance-related | (267) | – | – | 92 | – | – |
| RILA, fixed indexed annuity and IUL |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;contracts | (392) | – | – | (1970) | – | – |

---

As of June 30, 2025, $49 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements.

For the six months ended June 30, 2025 and 2024, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

Information related to our CDSs for which we are the seller (dollars in millions) was as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Maturity** | **Reason for Entering** | **Name of Recourse** | **Credit Rating of Underlying Obligation** <sup>(1)</sup> | **Number of Instruments** | **Fair Value** <sup>(2)</sup> | **Maximum Potential Payout** |
| **Credit Contract Type** | | | | | | | |
| Basket CDSs | 6/20/2030 | <sup>(3)</sup> | <sup>(4)</sup> | BBB+ | 1 | $1 | $62 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents average credit ratings based on the midpoint of the applicable ratings among Moody's, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Third-party valuation specialists are used to determine the market value of our CDSs.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>CDSs were entered into in order to hedge the liability exposure on certain variable annuity products.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

As of December 31, 2024, we did not have any exposure related to CDSs for which we are the seller.

Details underlying the associated collateral of our CDSs for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows:

---

| | | |
|:---|:---|:---|
| | **As of June 30, 2025** | **As of December 31, 2024** |
| Maximum potential payout | $62 | $– |
| Less: Counterparty thresholds | – | – |
| Maximum collateral potentially required to post | $62 | $– |

---

Certain of our CDS agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, our counterparties would have been required to post $1 million of collateral as of June 30, 2025.

**Credit Risk**

We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk. The non-performance risk is based upon assumptions for each counterparty's credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of June 30, 2025, the non-performance risk adjustment was zero. The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association ("ISDA") Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under nearly all of our ISDA agreements, we and LLANY have agreed to maintain certain financial strength ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did not have any exposure as of June 30, 2025, or December 31, 2024.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Collateral Posted by Counterparty** | **Collateral Posted to Counterparty** | **Collateral Posted by Counterparty** | **Collateral Posted to Counterparty** |
| **S&P Credit Rating of Counterparty** | | | | |
| AA- | $2385 | $(11) | $4006 | $(2) |
| A+ | 1876 | (31) | 2354 | (89) |
| A | 57 | – | 47 | – |
| A- | 558 | – | 632 | – |
| Total cash collateral | $4876 | $(42) | $7039 | $(91) |

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**Balance Sheet Offsetting**

Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Derivative Instruments** | **Embedded Derivative Instruments** | **Total** |
| **Financial Assets** | | | |
| Gross amount of recognized assets | $13812 | $2604 | $16416 |
| Gross amounts offset | (5593) | – | (5593) |
| Net amount of assets | 8219 | 2604 | 10823 |
| Gross amounts not offset: |  |  |  |
| Cash collateral | (4876) | – | (4876) |
| Non-cash collateral <sup>(1)</sup> | (3343) | – | (3343) |
| &nbsp;&nbsp;&nbsp;Net amount | $– | $2604 | $2604 |
| **Financial Liabilities** |  |  |  |
| Gross amount of recognized liabilities | 235 | 13089 | 13324 |
| Gross amounts offset | (71) | – | (71) |
| Net amount of liabilities | 164 | 13089 | 13253 |
| Gross amounts not offset: |  |  |  |
| Cash collateral | (42) | – | (42) |
| &nbsp;&nbsp;Non-cash collateral | (95) | – | (95) |
| &nbsp;&nbsp;&nbsp;Net amount | $27 | $13089 | $13116 |

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<sup>(1)</sup> Excludes excess non-cash collateral received of $1.1 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

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| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Derivative Instruments** | **Embedded Derivative Instruments** | **Total** |
| **Financial Assets** | | | |
| Gross amount of recognized assets | $13299 | $2698 | $15997 |
| Gross amounts offset | (3787) | – | (3787) |
| Net amount of assets | 9512 | 2698 | 12210 |
| Gross amounts not offset: |  |  |  |
| Cash collateral | (7039) | – | (7039) |
| &nbsp;&nbsp;Non-cash collateral <sup>(1)</sup> | (2473) | – | (2473) |
| &nbsp;&nbsp;&nbsp;Net amount | – | 2698 | 2698 |
| **Financial Liabilities** |  |  |  |
| Gross amount of recognized liabilities | 608 | 12449 | 13057 |
| Gross amounts offset | (432) | – | (432) |
| Net amount of liabilities | 176 | 12449 | 12625 |
| Gross amounts not offset: |  |  |  |
| Cash collateral | (91) | – | (91) |
| &nbsp;&nbsp;Non-cash collateral <sup>(2)</sup> | (85) | – | (85) |
| &nbsp;&nbsp;&nbsp;Net amount | $– | $12449 | $12449 |

---

<sup>(1)</sup> Excludes excess non-cash collateral received of $791 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

<sup>(2)</sup> Excludes excess non-cash collateral pledged of $29 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**6. DAC, VOBA, DSI and DFEL**

The following table reconciles deferred acquisition costs ("DAC"), value of business acquired ("VOBA") and deferred sales inducements ("DSI") (in millions) to the Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **As of<br> June 30,<br>2025** | **As of<br>December 31,<br>2024** |
| | **As of<br> June 30,<br>2025** | **As of<br>December 31,<br>2024** |
| **DAC, VOBA and DSI** | | |
| Variable Annuities | $4162 | $4104 |
| Fixed Annuities | 415 | 423 |
| Traditional Life | 1273 | 1329 |
| UL and Other | 6157 | 6146 |
| Group Protection | 176 | 136 |
| Retirement Plan Services | 297 | 288 |
| Other Operations | 4 | – |
| Total DAC, VOBA and DSI | $12484 | $12426 |

---

The following table reconciles deferred front-end loads ("DFEL") (in millions) to the Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **As of<br> June 30,<br>2025** | **As of<br>December 31,<br>2024** |
| | **As of<br> June 30,<br>2025** | **As of<br>December 31,<br>2024** |
| **DFEL** | | |
| Variable Annuities | $288 | $293 |
| UL and Other | 6796 | 6406 |
| Other Operations <sup>(1)</sup> | 55 | 51 |
| Total DFEL | $7139 | $6750 |

---

<sup>(1)</sup> Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $55 million and $51 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2025, and December 31, 2024, respectively.

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The following tables summarize the changes in DAC (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** |
| | **Variable<br>Annuities** | **Fixed<br>Annuities** | **Traditional<br>Life** | **UL and<br>Other** | **Group Protection** | **Retirement<br>Plan<br>Services** |
| Balance as of beginning-of-year | $3959 | $393 | $1294 | $5754 | $136 | $246 |
| Business acquired (sold) through |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;reinsurance | – | – | (19) | – | 13 | – |
| Deferrals | 264 | 26 | 37 | 183 | 68 | 9 |
| Amortization | (200) | (31) | (70) | (154) | (41) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period | $4023 | $388 | $1242 | $5783 | $176 | $246 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** |
| | **Variable<br>Annuities** | **Fixed<br>Annuities** | **Traditional<br>Life** | **UL and<br>Other** | **Group Protection** | **Retirement<br>Plan<br>Services** |
| Balance as of beginning-of-year | $3868 | $421 | $1332 | $5709 | $154 | $244 |
| Business acquired (sold) through |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;reinsurance | – | – | – | (73) | (38) | – |
| Deferrals | 190 | 23 | 60 | 198 | 71 | 10 |
| Amortization | (185) | (32) | (73) | (149) | (53) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period | $3873 | $412 | $1319 | $5685 | $134 | $244 |

---

DAC amortization expense of $258 million and $505 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $252 million and $502 million, respectively, was recorded for the corresponding periods in 2024.

The following tables summarize the changes in VOBA (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** |
| | **Fixed<br>Annuities** | **Traditional<br>Life** | **UL and<br>Other** |
| Balance as of beginning-of-year | $13 | $35 | $366 |
| Amortization | (1) | (4) | (18) |
| &nbsp;&nbsp;&nbsp;Balance as of end-of-period | $12 | $31 | $348 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** |
| | **Fixed<br>Annuities** | **Traditional<br>Life** | **UL and<br>Other** |
| Balance as of beginning-of-year | $15 | $42 | $402 |
| Deferrals | – | – | 1 |
| Amortization | (1) | (4) | (19) |
| &nbsp;&nbsp;&nbsp;Balance as of end-of-period | $14 | $38 | $384 |

---

VOBA amortization expense of $11 million and $23 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $12 million and $24 million, respectively, was recorded for the corresponding periods in 2024. No additions or write-offs were recorded for each respective period.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The following tables summarize the changes in DSI (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended<br> June 30, 2025** | **As of or For the Six Months Ended<br> June 30, 2025** | **As of or For the Six Months Ended<br> June 30, 2025** | **As of or For the Six Months Ended<br> June 30, 2025** |
| | **Variable Annuities** | **Fixed <br>Annuities** | **UL and <br>Other** | **Retirement Plan Services** |
| Balance as of beginning-of-year | $145 | $17 | $26 | $42 |
| Deferrals | – | – | – | 10 |
| Amortization | (6) | (2) | – | (1) |
| &nbsp;&nbsp;&nbsp;Balance as of end-of-period | $139 | $15 | $26 | $51 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended<br> June 30, 2024** | **As of or For the Six Months Ended<br> June 30, 2024** | **As of or For the Six Months Ended<br> June 30, 2024** | **As of or For the Six Months Ended<br> June 30, 2024** |
| | **Variable Annuities** | **Fixed <br>Annuities** | **UL and <br>Other** | **Retirement Plan Services** |
| Balance as of beginning-of-year | $157 | $20 | $28 | $26 |
| Deferrals | 1 | – | 1 | 12 |
| Amortization | (7) | (2) | (2) | – |
| &nbsp;&nbsp;&nbsp;Balance as of end-of-period | $151 | $18 | $27 | $38 |

---

DSI amortization expense of $4 million and $9 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $5 million and $11 million, respectively, was recorded for the corresponding periods in 2024.

The following tables summarize the changes in DFEL (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2024** | **As of or For the Six <br>Months Ended <br>June 30, 2024** |
| | **Variable Annuities** | **UL and <br>Other** | **Variable Annuities** | **UL and <br>Other** |
| Balance as of beginning-of-year | $293 | $6406 | $300 | $5579 |
| Deferrals | 8 | 573 | 9 | 544 |
| Amortization | (13) | (183) | (13) | (139) |
| &nbsp;&nbsp;&nbsp;Balance as of end-of-period | 288 | 6796 | 296 | 5984 |
| Less: Ceded DFEL | – | 2492 | – | 2346 |
| Balance as of end-of-period, net of reinsurance | $288 | $4304 | $296 | $3638 |

---

DFEL amortization of $105 million and $196 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $78 million and $152 million, respectively, was recorded for the corresponding periods in 2024.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**7. Reinsurance**

*LPINE*

Effective June 30, 2024, we entered into a reinsurance agreement with Lincoln Pinehurst Reinsurance Company (Bermuda) Limited ("LPINE"), an affiliated reinsurer, to reinsure certain blocks of in-force group protection and fixed annuity products.

This agreement is structured as coinsurance with funds withheld. As significant insurance risk was transferred for the group protection block, amounts recoverable from LPINE were $3.3 billion and $3.7 billion as of June 30, 2025, and December 31, 2024, respectively. We reported a deferred loss of $8 million and $14 million as of June 30, 2025, and December 31, 2024, respectively. Fixed annuities are not life-contingent and do not contain significant insurance risk; therefore, we reported deposit assets of $8.2 billion and $7.9 billion as of June 30, 2025, and December 31, 2024, respectively. In this coinsurance with funds withheld reinsurance agreement, we as the ceding company withhold, and therefore retain, the assets backing the reserves and deposit assets.

We held investments with a carrying value of $11.5 billion in support of reserves associated with the LPINE transaction in a funds withheld arrangement as of June 30, 2025, and December 31, 2024, which consisted of the following (in millions):

---

| | | |
|:---|:---|:---|
| | **As of<br> June 30,<br>2025** | **As of<br>December 31,<br>2024** |
| | **As of<br> June 30,<br>2025** | **As of<br>December 31,<br>2024** |
| Fixed maturity AFS securities | $9293 | $9287 |
| Mortgage loans on real estate | 1935 | 1941 |
| Derivative instruments | 178 | 190 |
| Accrued investment income | 95 | 97 |
| Total | $11501 | $11515 |

---

*LNBAR*

We reinsure blocks of business to LNBAR, an affiliated reinsurer. Effective October 1, 2023, we entered into an agreement with LNBAR that is structured as a coinsurance treaty, with some assets withheld, for certain blocks of in-force *MoneyGuard®* products. As significant insurance risk was transferred for the *MoneyGuard* blocks, amounts recoverable from LNBAR were $14.1 billion and $14.2 billion as of June 30, 2025, and December 31, 2024, respectively. We reported a deferred gain on the transaction of $4.0 billion and $4.1 billion as of June 30, 2025, and December 31, 2024, respectively. We amortized $45 million and $90 million of the deferred gain during the three and six months ended June 30, 2025, respectively, compared to $40 million and $83 million for the corresponding periods in 2024. We held other investments and cash and invested cash with a carrying value of $1.4 billion as of June 30, 2025, and December 31, 2024, in support of reserves associated with this agreement.

LNBAR has funded trusts to support reserves ceded by us of which the balance in the trusts changes as a result of ongoing reinsurance activity and totaled $12.7 billion and $12.2 billion as of June 30, 2025, and December 31, 2024, respectively.

*Fortitude Re*

Effective October 1, 2023, we entered into a reinsurance agreement with Fortitude Reinsurance Company Ltd. ("Fortitude Re"), an authorized Bermuda reinsurer with reciprocal jurisdiction reinsurer status in Indiana, to reinsure certain blocks of in-force UL with secondary guarantees ("ULSG") and fixed annuity products, including group pension annuities. Fortitude Re represents our largest unaffiliated reinsurance exposure as of June 30, 2025, and December 31, 2024.

The agreement between us and Fortitude Re is structured as a coinsurance treaty for the ULSG and fixed annuities blocks. As significant insurance risk was transferred for ULSG products and life-contingent annuities, amounts recoverable from Fortitude Re were $10.6 billion as of June 30, 2025, and December 31, 2024. We reported a deferred loss on the transaction of $2.5 billion and $2.6 billion as of June 30, 2025, and December 31, 2024, respectively. We amortized $23 million and $46 million of the deferred loss during the three and six months ended June 30, 2025, respectively, compared to $22 million and $44 million for the corresponding periods in 2024. Annuities that are not life-contingent do not contain significant insurance risk; therefore, we reported deposit assets for these contracts of $2.6 billion and $3.0 billion as of June 30, 2025, and December 31, 2024, respectively.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**8. MRBs**

The following table reconciles market risk benefits ("MRBs") (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Assets** | **Liabilities** | **Net (Assets) Liabilities** | **Assets** | **Liabilities** | **Net (Assets) Liabilities** |
| | **Assets** | **Liabilities** | **Net (Assets) Liabilities** | **Assets** | **Liabilities** | **Net (Assets) Liabilities** |
| | **Assets** | **Liabilities** | **Net (Assets) Liabilities** | **Assets** | **Liabilities** | **Net (Assets) Liabilities** |
| Variable Annuities | $4467 | $1047 | $(3420) | $4737 | $933 | $(3804) |
| Fixed Annuities | 64 | 154 | 90 | 78 | 110 | 32 |
| Retirement Plan Services | 46 | 4 | (42) | 45 | 3 | (42) |
| Total MRBs | $4577 | $1205 | $(3372) | $4860 | $1046 | $(3814) |

---

The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2024** | **As of or For the Six <br>Months Ended <br>June 30, 2024** | **As of or For the Six <br>Months Ended <br>June 30, 2024** |
| | **Variable Annuities** | **Fixed Annuities** | **Retirement Plan Services** | **Variable Annuities** | **Fixed Annuities** | **Retirement Plan Services** |
| | **Variable Annuities** | **Fixed Annuities** | **Retirement Plan Services** | **Variable Annuities** | **Fixed Annuities** | **Retirement Plan Services** |
| | **Variable Annuities** | **Fixed Annuities** | **Retirement Plan Services** | **Variable Annuities** | **Fixed Annuities** | **Retirement Plan Services** |
| Balance as of beginning-of-year | $(3804) | $32 | $(42) | $(2180) | $32 | $(30) |
| Less: Effect of cumulative changes in |  |  |  |  |  |  |
| non-performance risk | (153) | (33) | – | (1299) | (58) | (4) |
| Balance as of beginning-of-year, before the effect |  |  |  |  |  |  |
| of changes in non-performance risk | (3651) | 65 | (42) | (881) | 90 | (26) |
| &nbsp;&nbsp;&nbsp;Issuances | 10 | – | – | 5 | – | – |
| &nbsp;&nbsp;&nbsp;Attributed fees collected | 734 | 16 | 3 | 760 | 16 | 3 |
| &nbsp;&nbsp;&nbsp;Benefit payments | (14) | – | – | (21) | – | – |
| &nbsp;&nbsp;&nbsp;Effect of changes in interest rates | 175 | 35 | (2) | (1470) | (27) | (8) |
| &nbsp;&nbsp;&nbsp;Effect of changes in equity markets | (792) | – | (3) | (1469) | (15) | (5) |
| &nbsp;&nbsp;&nbsp;Effect of changes in equity index volatility | 35 | 3 | – | (63) | (4) | – |
| &nbsp;&nbsp;&nbsp;&nbsp;In-force updates and other changes in MRBs <sup>(1)</sup> | 185 | 13 | 2 | 153 | 2 | 1 |
| Balance as of end-of-period, before the effect of |  |  |  |  |  |  |
| changes in non-performance risk | (3318) | 132 | (42) | (2986) | 62 | (35) |
| &nbsp;&nbsp;&nbsp;Effect of cumulative changes in |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;non-performance risk | (102) | (42) | – | (482) | (38) | – |
| Balance as of end-of-period | (3420) | 90 | (42) | (3468) | 24 | (35) |
| Less: Ceded MRB assets (liabilities) | (2509) | – | (12) | (2143) | – | (8) |
| Balance as of end-of-period, net of reinsurance | $(911) | $90 | $(30) | $(1325) | $24 | $(27) |
| Weighted-average age of policyholders (years) | 73 | 70 | 63 | 72 | 69 | 63 |
| Net amount at risk <sup>(2)</sup> | $1689 | $272 | $2 | $2135 | $221 | $3 |

---

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Consists primarily of changes in MRB assets and liabilities related to differences between separate account fund performance and modeled indices and other changes such as actual to expected policyholder behavior.

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Net amount at risk ("NAR") is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For guaranteed living benefits ("GLBs"), the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation.

See "MRBs" in [Note 12](#id1b96fe37c7f4484b056a1b831bae437_181) for details related to our fair value judgments, assumptions, inputs and valuation methodology.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**9. Separate Accounts**

The following table presents the fair value of separate account assets (in millions) reported on the Consolidated Balance Sheets by major investment category:

---

| | | |
|:---|:---|:---|
| | **As of<br> June 30,**<br>**2025** | **As of<br>December 31,**<br>**2024** |
| Mutual funds and collective investment trusts: |  |  |
| &nbsp;&nbsp;Equity funds: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | $80714 | $77740 |
| &nbsp;&nbsp;&nbsp;&nbsp;International | 17429 | 16282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other equity funds | 1430 | 1403 |
| &nbsp;&nbsp;Balanced funds | 46127 | 45683 |
| &nbsp;&nbsp;Bond funds | 23064 | 23399 |
| &nbsp;&nbsp;Money market funds | 2058 | 1931 |
| &nbsp;&nbsp;Other funds | 1413 | 1321 |
| Exchange-traded funds | 315 | 336 |
| Fixed maturity AFS securities | 168 | 161 |
| Cash and invested cash | 5 | 12 |
| Other investments | 219 | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total separate account assets | $172942 | $168438 |

---

The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **As of<br> June 30,**<br>**2025** | **As of<br>December 31,**<br>**2024** |
| Variable Annuities | $120045 | $117998 |
| UL and Other | 30616 | 28841 |
| Retirement Plan Services | 22220 | 21541 |
| Other Operations <sup>(1)</sup> | 61 | 58 |
| Total separate account liabilities | $172942 | $168438 |

---

<sup>(1)</sup> Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($50 million and $49 million as of June 30, 2025, and December 31, 2024, respectively) that are excluded from the following tables.

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The following table summarizes the balances of and changes in separate account liabilities (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2024** | **As of or For the Six <br>Months Ended <br>June 30, 2024** | **As of or For the Six <br>Months Ended <br>June 30, 2024** |
| | **Variable Annuities** | **UL and Other** | **Retirement Plan Services** | **Variable Annuities** | **UL and Other** | **Retirement Plan Services** |
| | **Variable Annuities** | **UL and Other** | **Retirement Plan Services** | **Variable Annuities** | **UL and Other** | **Retirement Plan Services** |
| | **Variable Annuities** | **UL and Other** | **Retirement Plan Services** | **Variable Annuities** | **UL and Other** | **Retirement Plan Services** |
| Balance as of beginning-of-year | $117998 | $28841 | $21541 | $113356 | $25150 | $19699 |
| Gross deposits | 2831 | 787 | 1177 | 1925 | 695 | 1105 |
| Withdrawals | (7683) | (480) | (1805) | (6604) | (193) | (1514) |
| Policyholder assessments | (1299) | (494) | (91) | (1301) | (493) | (89) |
| Change in market performance | 7290 | 2025 | 1451 | 9026 | 2335 | 1802 |
| Net transfers from (to) general account | 908 | (63) | (53) | 368 | (113) | (10) |
| Balance as of end-of-period | $120045 | $30616 | $22220 | $116770 | $27381 | $20993 |
| Cash surrender value | $118658 | $25814 | $22205 | $115389 | $24979 | $20979 |

---

**10. Policyholder Account Balances**

The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **As of <br>June 30,**<br>**2025** | **As of<br>December 31,**<br>**2024** |
| Variable Annuities | $37026 | $35267 |
| Fixed Annuities | 26812 | 25941 |
| UL and Other | 35776 | 36242 |
| Retirement Plan Services | 23700 | 23619 |
| Other <sup>(1)</sup> | 5535 | 4749 |
| Total policyholder account balances | $128849 | $125818 |

---

<sup>(1)</sup> Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.2 billion and $4.4 billion as of June 30, 2025, and December 31, 2024, respectively) and funding agreements, that are excluded from the following tables. See "Funding Agreements" below for more information.

The following table summarizes the balances and changes in policyholder account balances (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** | **As of or For the Six Months Ended June 30, 2025** |
| | **Variable Annuities** | **Fixed<br>Annuities** | **UL and<br>Other** | **Retirement<br>Plan<br>Services** |
| | **Variable Annuities** | **Fixed<br>Annuities** | **UL and<br>Other** | **Retirement<br>Plan<br>Services** |
| | **Variable Annuities** | **Fixed<br>Annuities** | **UL and<br>Other** | **Retirement<br>Plan<br>Services** |
| Balance as of beginning-of-year | $35267 | $25941 | $36242 | $23619 |
| Gross deposits | 2893 | 2099 | 1706 | 1921 |
| Withdrawals | (1234) | (1741) | (806) | (2433) |
| Policyholder assessments | (1) | (30) | (2186) | (8) |
| Net transfers from (to) separate account | (619) | – | 63 | 254 |
| Interest credited | 403 | 437 | 708 | 347 |
| Change in fair value of embedded derivative |  |  |  |  |
| &nbsp;&nbsp;&nbsp;instruments and other | 317 | 106 | 49 | – |
| Balance as of end-of-period | $37026 | $26812 | $35776 | $23700 |
| Weighted-average crediting rate | 2.3% | 3.3% | 3.9% | 3.0% |
| Net amount at risk <sup>(1)(2)</sup> | $1689 | $272 | $294997 | $2 |
| Cash surrender value | 35740 | 25640 | 31460 | 23667 |

---

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** | **As of or For the Six Months Ended June 30, 2024** |
| | **Variable Annuities** | **Fixed<br>Annuities** | **UL and<br>Other** | **Retirement<br>Plan<br>Services** |
| | **Variable Annuities** | **Fixed<br>Annuities** | **UL and<br>Other** | **Retirement<br>Plan<br>Services** |
| | **Variable Annuities** | **Fixed<br>Annuities** | **UL and<br>Other** | **Retirement<br>Plan<br>Services** |
| Balance as of beginning-of-year | $29141 | $25330 | $36784 | $23784 |
| Gross deposits | 2102 | 2646 | 1736 | 1636 |
| Withdrawals | (413) | (2600) | (739) | (2275) |
| Policyholder assessments | (1) | (31) | (2232) | (7) |
| Net transfers from (to) separate account | (146) | – | 113 | 120 |
| Interest credited | 328 | 382 | 726 | 340 |
| Change in fair value of embedded derivative |  |  |  |  |
| &nbsp;&nbsp;&nbsp;instruments and other | 1842 | 87 | 86 | – |
| Balance as of end-of-period | $32853 | $25814 | $36474 | $23598 |
| Weighted-average crediting rate | 2.1% | 3.0% | 4.0% | 2.9% |
| Net amount at risk <sup>(1)(2)</sup> | $2135 | $221 | $298237 | $3 |
| Cash surrender value | 31650 | 24738 | 32091 | 23570 |

---

<sup>(1)</sup> NAR is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit rider exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation.

<sup>(2)</sup> Calculation is based on total account balances and includes both policyholder account balances and separate account balances.

*Funding Agreements*

<u>FABN Program</u>

We established a $5.0 billion funding agreement-backed notes ("FABN") program in 2024 pursuant to which we may issue unsecured funding agreements to an unaffiliated and unconsolidated special purpose statutory trust (the "Trust") that will then issue medium-term notes for which payment of interest and principal is secured by such funding agreement. Funding agreements issued to the Trust are reported in policyholder account balances on the Consolidated Balance Sheets, and the associated interest is reported within interest credited on the Consolidated Statements of Comprehensive Income (Loss). We had funding agreements issued under the program totaling $1.0 billion as of June 30, 2025, compared to none as of December 31, 2024.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following table presents policyholder account balances (in millions) by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between the interest being credited to policyholders and the respective guaranteed contract minimums:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **At<br>Guaranteed<br>Minimum** | **1-50<br>Basis<br>Points<br>Above** | **51-100<br>Basis<br>Points<br>Above** | **101-150<br>Basis<br>Points<br>Above** | **Greater<br>Than 150<br>Basis<br>Points<br>Above** | **Total** |
| **Range of Guaranteed** | **At<br>Guaranteed<br>Minimum** | **1-50<br>Basis<br>Points<br>Above** | **51-100<br>Basis<br>Points<br>Above** | **101-150<br>Basis<br>Points<br>Above** | **Greater<br>Than 150<br>Basis<br>Points<br>Above** | **Total** |
| **Minimum Crediting Rate** | **At<br>Guaranteed<br>Minimum** | **1-50<br>Basis<br>Points<br>Above** | **51-100<br>Basis<br>Points<br>Above** | **101-150<br>Basis<br>Points<br>Above** | **Greater<br>Than 150<br>Basis<br>Points<br>Above** | **Total** |
| **Variable Annuities** | | | | | | |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $– | $– | $– | $– | $– | $– |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 3 | – | – | – | 7 | 10 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 486 | – | – | – | – | 486 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 1168 | – | – | – | – | 1168 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 7 | – | – | – | – | 7 |
| &nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | – | – | – | – | – | 35355 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1664 | $– | $– | $– | $7 | $37026 |
| **Fixed Annuities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $108 | $895 | $425 | $197 | $2250 | $3875 |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 215 | 206 | 136 | 119 | 6646 | 7322 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 1455 | 27 | 1 | 2 | 45 | 1530 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 853 | – | – | – | – | 853 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 161 | – | – | – | – | 161 |
| &nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | – | – | – | – | – | 13071 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $2792 | $1128 | $562 | $318 | $8941 | $26812 |
| **UL and Other** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $256 | $– | $226 | $74 | $510 | $1066 |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 535 | – | 6 | – | 2891 | 3432 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 6592 | 8 | 144 | – | – | 6744 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 14279 | – | 1 | – | – | 14280 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 3477 | – | – | – | – | 3477 |
| &nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | – | – | – | – | – | 6777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $25139 | $8 | $377 | $74 | $3401 | $35776 |
| **Retirement Plan Services** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $573 | $329 | $693 | $3265 | $6396 | $11256 |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 472 | 944 | 1851 | 507 | 662 | 4436 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 1719 | 532 | 1 | 2 | – | 2254 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 4079 | 102 | 7 | 11 | – | 4199 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 1555 | – | – | – | – | 1555 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $8398 | $1907 | $2552 | $3785 | $7058 | $23700 |

---

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2024** | **As of June 30, 2024** | **As of June 30, 2024** | **As of June 30, 2024** | **As of June 30, 2024** | **As of June 30, 2024** |
| | **At<br>Guaranteed<br>Minimum** | **1-50<br>Basis<br>Points<br>Above** | **51-100<br>Basis<br>Points<br>Above** | **101-150<br>Basis<br>Points<br>Above** | **Greater<br>Than 150<br>Basis<br>Points<br>Above** | **Total** |
| **Range of Guaranteed** | **At<br>Guaranteed<br>Minimum** | **1-50<br>Basis<br>Points<br>Above** | **51-100<br>Basis<br>Points<br>Above** | **101-150<br>Basis<br>Points<br>Above** | **Greater<br>Than 150<br>Basis<br>Points<br>Above** | **Total** |
| **Minimum Crediting Rate** | **At<br>Guaranteed<br>Minimum** | **1-50<br>Basis<br>Points<br>Above** | **51-100<br>Basis<br>Points<br>Above** | **101-150<br>Basis<br>Points<br>Above** | **Greater<br>Than 150<br>Basis<br>Points<br>Above** | **Total** |
| **Variable Annuities** | | | | | | |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $– | $– | $– | $– | $– | $– |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 4 | – | – | – | 6 | 10 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 539 | – | – | – | – | 539 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 1289 | – | – | – | – | 1289 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 9 | – | – | – | – | 9 |
| &nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | – | – | – | – | – | 31006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1841 | $– | $– | $– | $6 | $32853 |
| **Fixed Annuities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $615 | $609 | $594 | $463 | $2464 | $4745 |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 304 | 133 | 279 | 329 | 4301 | 5346 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 1694 | 40 | 5 | 1 | 31 | 1771 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 1036 | – | – | – | – | 1036 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 173 | – | – | – | – | 173 |
| &nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | – | – | – | – | – | 12743 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3822 | $782 | $878 | $793 | $6796 | $25814 |
| **UL and Other** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $264 | $– | $218 | $119 | $42 | $643 |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 544 | – | – | – | 3186 | 3730 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 6797 | 10 | 150 | – | – | 6957 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 15068 | – | 1 | – | – | 15069 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 3679 | – | – | – | – | 3679 |
| &nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | – | – | – | – | – | 6396 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $26352 | $10 | $369 | $119 | $3228 | $36474 |
| **Retirement Plan Services** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Up to 1.00% | $489 | $502 | $727 | $3684 | $4511 | $9913 |
| &nbsp;&nbsp;&nbsp;1.01% - 2.00% | 509 | 1648 | 1382 | 1154 | 220 | 4913 |
| &nbsp;&nbsp;&nbsp;2.01% - 3.00% | 2394 | 25 | 1 | – | – | 2420 |
| &nbsp;&nbsp;&nbsp;3.01% - 4.00% | 4667 | 57 | 5 | 5 | – | 4734 |
| &nbsp;&nbsp;&nbsp;4.01% and above | 1618 | – | – | – | – | 1618 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $9677 | $2232 | $2115 | $4843 | $4731 | $23598 |

---

<sup>(1)</sup> Consists of indexed account balances that include the fair value of embedded derivative instruments, non-life contingent payout annuity account balances, short-term dollar cost averaging annuities business and policy loans.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

**11. Future Contract Benefits**

The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **As of<br>June 30,**<br>**2025** | **As of<br>December 31,**<br>**2024** |
| Payout Annuities <sup>(1)</sup> | $2039 | $2008 |
| Traditional Life <sup>(1)</sup> | 3617 | 3504 |
| Group Protection <sup>(2)</sup> | 5759 | 5628 |
| UL and Other <sup>(3)</sup> | 17622 | 16663 |
| Other Operations <sup>(4)</sup> | 8917 | 8958 |
| Other <sup>(5)</sup> | 3350 | 3241 |
| Total future contract benefits | $41304 | $40002 |

---

<sup>(1)</sup> See "Liability for Future Policy Benefits" below for further information.

<sup>(2)</sup> See "Liability for Future Claims" below for further information.

<sup>(3)</sup> See "Additional Liabilities for Other Insurance Benefits" below for further information.

<sup>(4)</sup> Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.4 billion as of June 30, 2025, and December 31, 2024) and Swiss Re ($1.7 billion as of June 30, 2025, and December 31, 2024) that are excluded from the following tables.

<sup>(5)</sup> Represents other miscellaneous reserves that are not representative of long-duration contracts, primarily related to participating traditional life insurance contracts and incurred but not reported and in course of settlement life insurance liabilities, and are excluded from the following tables.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

*Liability for Future Policy Benefits*

The liability for future policy benefits represents reserves associated with our limited payment life-contingent annuities and non-participating traditional life insurance contracts (i.e., term insurance). The following table summarizes the balances of and changes in the present values of expected net premiums and expected future policy benefits (in millions, except years):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of or For the Six<br>Months Ended<br>June 30, 2025** | **As of or For the Six<br>Months Ended<br>June 30, 2025** | **As of or For the Six <br>Months Ended <br>June 30, 2024** | **As of or For the Six <br>Months Ended <br>June 30, 2024** |
| | **Payout Annuities** | **Traditional Life** | **Payout Annuities** | **Traditional Life** |
| | **Payout Annuities** | **Traditional Life** | **Payout Annuities** | **Traditional Life** |
| **Present Value of Expected Net Premiums** | | | | |
| Balance as of beginning-of-year | $– | $5751 | $– | $6084 |
| Less: Effect of cumulative changes in discount |  |  |  |  |
| &nbsp;&nbsp;&nbsp;rate assumptions | – | (277) | – | (152) |
| Beginning balance at original discount rate | – | 6028 | – | 6236 |
| &nbsp;&nbsp;Effect of actual variances from expected experience <sup>(1)</sup> | – | (32) | – | (10) |
| Adjusted balance as of beginning-of-year | – | 5996 | – | 6226 |
| Issuances | – | 141 | – | 206 |
| Interest accrual | – | 121 | – | 122 |
| Net premiums collected | – | (376) | – | (396) |
| Flooring impact of LFPB | – | (4) | – | 2 |
| Ending balance at original discount rate | – | 5878 | – | 6160 |
| Effect of cumulative changes in discount |  |  |  |  |
| &nbsp;&nbsp;&nbsp;rate assumptions | – | (156) | – | (322) |
| Balance as of end-of-period | $– | $5722 | $– | $5838 |
| **Present Value of Expected Future Policy Benefits** |  |  |  |  |
| Balance as of beginning-of-year | $2008 | $9255 | $2084 | $9637 |
| Less: Effect of cumulative changes in discount |  |  |  |  |
| &nbsp;&nbsp;&nbsp;rate assumptions | (251) | (446) | (187) | (202) |
| Beginning balance at original discount rate <sup>(2)</sup> | 2259 | 9701 | 2271 | 9839 |
| Effect of actual variances from expected experience <sup>(1)</sup> | (6) | (39) | 3 | (15) |
| Adjusted balance as of beginning-of-year | 2253 | 9662 | 2274 | 9824 |
| Issuances | 47 | 141 | 39 | 206 |
| Interest accrual | 44 | 190 | 43 | 190 |
| Benefit payments | (97) | (404) | (98) | (357) |
| Ending balance at original discount rate <sup>(2)</sup> | 2247 | 9589 | 2258 | 9863 |
| Effect of cumulative changes in discount |  |  |  |  |
| &nbsp;&nbsp;&nbsp;rate assumptions | (208) | (250) | (257) | (511) |
| Balance as of end-of-period | $2039 | $9339 | $2001 | $9352 |
| Net balance as of end-of-period | $2039 | $3617 | $2001 | $3514 |
| Less: Reinsurance recoverables | 1481 | 212 | 1527 | 232 |
| Net balance as of end-of-period, net of reinsurance | $558 | $3405 | $474 | $3282 |
| Weighted-average duration of future policyholder |  |  |  |  |
| benefit liability (years) | 9 | 9 | 9 | 10 |

---

<sup>(1)</sup> For the six months ended June 30, 2025, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to policyholder behavior and mortality, which unfavorably impacted the liability by $19 million and $13 million, respectively; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to policyholder behavior and mortality, which favorably impacted the liability by $23 million and $16 million, respectively. For the six months ended June 30, 2024, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

mortality, which unfavorably impacted the liability by $38 million, which was partially offset by $28 million primarily related to policyholder behavior; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to mortality, which favorably impacted the liability by $54 million, which was partially offset by $39 million primarily related to policyholder behavior. For the six months ended June 30, 2025 and 2024, Payout Annuities did not have any significantly different actual experience compared to expected.

<sup>(2)</sup> Includes deferred profit liability within Payout Annuities of $70 million and $61 million as of June 30, 2025 and 2024, respectively.

The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2024** | **As of June 30, 2024** |
| | **Undiscounted** | **Discounted** | **Undiscounted** | **Discounted** |
| **Payout Annuities** | | | | |
| Expected future gross premiums | $– | $– | $– | $– |
| Expected future benefit payments | 3384 | 2039 | 3435 | 2001 |
| **Traditional Life** |  |  |  |  |
| Expected future gross premiums | 13234 | 9076 | 13265 | 8980 |
| Expected future benefit payments | 13665 | 9339 | 14115 | 9352 |

---

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Payout Annuities** |  |  |  |  |
| Gross premiums | $25 | $24 | $48 | $45 |
| Interest accretion | 22 | 22 | 44 | 43 |
| **Traditional Life** |  |  |  |  |
| Gross premiums | 298 | 301 | 597 | 599 |
| Interest accretion | 35 | 34 | 69 | 67 |

---

The following table summarizes the weighted-average interest rates:

---

| | | |
|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| **Payout Annuities** |  |  |
| Interest accretion rate | 4.0% | 4.0% |
| Current discount rate | 5.2% | 5.4% |
| **Traditional Life** |  |  |
| Interest accretion rate | 4.9% | 4.9% |
| Current discount rate | 4.8% | 5.2% |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

*Liability for Future Claims*

The liability for future claims represents reserves associated with our group long-term disability and life products. The following table summarizes the balances of and changes in liability for future claims (in millions, except years):

---

| | | |
|:---|:---|:---|
| | **Group Protection** | **Group Protection** |
| | **As of or For the Six <br>Months Ended <br>June 30,** | **As of or For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| Balance as of beginning-of-year | $5628 | $5689 |
| Less: Effect of cumulative changes in discount |  |  |
| &nbsp;&nbsp;&nbsp;rate assumptions | (550) | (490) |
| Beginning balance at original discount rate | 6178 | 6179 |
| &nbsp;&nbsp;Effect of actual variances from expected experience <sup>(1)</sup> | (178) | (191) |
| Adjusted beginning-of-year balance | 6000 | 5988 |
| New incidence | 808 | 838 |
| Interest | 100 | 93 |
| Benefit payments | (724) | (757) |
| Ending balance at original discount rate | 6184 | 6162 |
| Effect of cumulative changes in discount |  |  |
| &nbsp;&nbsp;&nbsp;rate assumptions | (425) | (593) |
| Balance as of end-of-period | 5759 | 5569 |
| Less: Reinsurance recoverables | 3439 | 4284 |
| Balance as of end-of-period, net of reinsurance | $2320 | $1285 |
| Weighted-average duration of liability for future |  |  |
| claims (years) | 5 | 5 |

---

<sup>(1)</sup> Generally, the experience exhibited for the Group Protection business relates to morbidity and, to a lesser extent, mortality. Group Protection long-duration products have limited exposure to lapse risk, as the liabilities for future claims are limited to those associated with claim reserves. For the six months ended June 30, 2025 and 2024, morbidity comprised substantially all of the favorable effect of actual variances from expected experience, as we experienced more favorable reported incidence and claim terminations than assumed.

The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2024** | **As of June 30, 2024** |
| | **Undiscounted** | **Discounted** | **Undiscounted** | **Discounted** |
| **Group Protection** | | | | |
| Expected future benefit payments | $7447 | $5759 | $7290 | $5569 |

---

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Group Protection** |  |  |  |  |
| Gross premiums | $926 | $893 | $1859 | $1789 |
| Interest accretion | 50 | 45 | 100 | 93 |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following table summarizes the weighted-average interest rates:

---

| | | |
|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Group Protection** |  |  |
| Interest accretion rate | 3.4% | 3.2% |
| Current discount rate | 4.8% | 5.2% |

---

*Additional Liabilities for Other Insurance Benefits*

Additional liabilities for other insurance benefits represent reserves associated with our UL and VUL contracts with secondary guarantees, including *MoneyGuard*<sup>®</sup>. The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):

---

| | | |
|:---|:---|:---|
| | **UL and Other** | **UL and Other** |
| | **As of or For the Six <br>Months Ended <br>June 30,** | **As of or For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| Balance as of beginning-of-year | $16663 | $15752 |
| Less: Effect of cumulative changes in shadow |  |  |
| &nbsp;&nbsp;&nbsp;balance in AOCI | (1515) | (853) |
| Balance as of beginning-of-year, excluding |  |  |
| shadow balance in AOCI | 18178 | 16605 |
| &nbsp;&nbsp;Effect of actual variances from expected experience <sup>(1) (2)</sup>  | 116 | 136 |
| Adjusted beginning-of-year balance | 18294 | 16741 |
| Interest accrual | 452 | 410 |
| Net assessments collected | 681 | 638 |
| Benefit payments | (532) | (521) |
| Balance as of end-of-period, excluding shadow |  |  |
| balance in AOCI | 18895 | 17268 |
| Effect of cumulative changes in shadow |  |  |
| balance in AOCI | (1273) | (2032) |
| Balance as of end-of-period | 17622 | 15236 |
| Less: Reinsurance recoverables | 11269 | 10040 |
| Balance as of end-of-period, net of reinsurance | $6353 | $5196 |
| Weighted-average duration of additional liabilities |  |  |
| for other insurance benefits (years) | 16 | 16 |

---

<sup>(1)</sup> For the six months ended June 30, 2025 and 2024, the actual to expected reserve impact was attributable primarily to mortality, which unfavorably impacted the liability by $116 million and $138 million, respectively.

<sup>(2)</sup> For the six months ended June 30, 2025 and 2024, the effect of actual variances from expected experience, net of reinsurance, was $33 million and $79 million, respectively.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **UL and Other** |  |  |  |  |
| Gross assessments | $787 | $773 | $1597 | $1539 |
| Interest accretion | 229 | 206 | 452 | 410 |

---

The following table summarizes the weighted-average interest rates:

---

| | | |
|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| **UL and Other** |  |  |
| Interest accretion rate | 5.4% | 5.4% |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

**12. Fair Value of Financial Instruments**

**Financial Instruments Carried at Fair Value**

The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| | **Quoted**<br>**Prices**<br>**in Active**<br>**Markets for**<br>**Identical**<br>**Assets**<br>**(Level 1)** |<br><br>**Significant**<br>**Observable**<br>**Inputs**<br>**(Level 2)** |<br><br>**Significant**<br>**Unobservable**<br>**Inputs**<br>**(Level 3)** |<br><br>**Total**<br>**Fair**<br>**Value** |
| **Assets** | | | | |
| Investments: |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $– | $55491 | $7240 | $62731 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government bonds | 543 | 20 | – | 563 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipal bonds | – | 2021 | – | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | – | 235 | – | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | – | 1824 | 79 | 1903 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | – | 1846 | 41 | 1887 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | – | 11546 | 3000 | 14546 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred securities | 43 | 118 | 91 | 252 |
| &nbsp;&nbsp;Trading securities | – | 1598 | 296 | 1894 |
| &nbsp;&nbsp;Equity securities | 2 | 254 | 78 | 334 |
| &nbsp;&nbsp;Mortgage loans on real estate | – | – | 232 | 232 |
| &nbsp;&nbsp;Derivative investments <sup>(1)</sup> | – | 13818 | 65 | 13883 |
| &nbsp;&nbsp;Other investments – short-term investments | – | 312 | 24 | 336 |
| MRB assets | – | – | 4577 | 4577 |
| Other assets: |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs | – | – | 20 | 20 |
| &nbsp;&nbsp;Indexed annuity ceded embedded derivatives | – | – | 2134 | 2134 |
| &nbsp;&nbsp;LPR ceded derivative | – | – | 198 | 198 |
| Separate account assets | 371 | 172571 | – | 172942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $959 | $261654 | $18075 | $280688 |
| **Liabilities** |  |  |  |  |
| Policyholder account balances – RILA, |  |  |  |  |
| &nbsp;&nbsp;fixed annuity and IUL contracts | $– | $– | $(13089) | $(13089) |
| Funds withheld reinsurance liabilities – |  |  |  |  |
| &nbsp;&nbsp;reinsurance-related embedded derivatives | – | 562 | (92) | 470 |
| MRB liabilities | – | – | (1205) | (1205) |
| Other liabilities: |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs | – | – | (2541) | (2541) |
| &nbsp;&nbsp;Derivative liabilities <sup>(1)</sup> | – | (5648) | (180) | (5828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $– | $(5086) | $(17107) | $(22193) |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Quoted**<br>**Prices**<br>**in Active**<br>**Markets for**<br>**Identical**<br>**Assets**<br>**(Level 1)** |<br><br>**Significant**<br>**Observable**<br>**Inputs**<br>**(Level 2)** |<br><br>**Significant**<br>**Unobservable**<br>**Inputs**<br>**(Level 3)** |<br><br>**Total**<br>**Fair**<br>**Value** |
| **Assets** | | | | |
| Investments: |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $– | $54808 | $7025 | $61833 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government bonds | 370 | 20 | – | 390 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipal bonds | – | 2148 | – | 2148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | – | 233 | – | 233 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | – | 1691 | 12 | 1703 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | – | 1575 | 8 | 1583 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | – | 11670 | 2099 | 13769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred securities | 47 | 122 | 72 | 241 |
| &nbsp;&nbsp;Trading securities | – | 1740 | 265 | 2005 |
| &nbsp;&nbsp;Equity securities | – | 260 | 34 | 294 |
| &nbsp;&nbsp;Mortgage loans on real estate | – | – | 232 | 232 |
| &nbsp;&nbsp;Derivative investments <sup>(1)</sup> | – | 13728 | 3 | 13731 |
| &nbsp;&nbsp;Other investments – short-term investments | – | 369 | 23 | 392 |
| MRB assets | – | – | 4860 | 4860 |
| Other assets: |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs | – | – | 14 | 14 |
| &nbsp;&nbsp;Indexed annuity ceded embedded derivatives | – | – | 1970 | 1970 |
| &nbsp;&nbsp;LPR ceded derivative | – | – | 190 | 190 |
| Separate account assets | 391 | 168047 | – | 168438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $808 | $256411 | $16807 | $274026 |
| **Liabilities** |  |  |  |  |
| Policyholder account balances – RILA, |  |  |  |  |
| &nbsp;&nbsp;fixed annuity and IUL contracts | $– | $– | $(12449) | $(12449) |
| Funds withheld reinsurance liabilities – |  |  |  |  |
| &nbsp;&nbsp;reinsurance-related embedded derivatives | – | 787 | (59) | 728 |
| MRB liabilities | – | – | (1046) | (1046) |
| Other liabilities: |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs | – | – | (2763) | (2763) |
| &nbsp;&nbsp;Derivative liabilities <sup>(1)</sup> | – | (4256) | (139) | (4395) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $– | $(3469) | $(16456) | $(19925) |

---

<sup>(1)</sup> Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in [Note 8](#id1b96fe37c7f4484b056a1b831bae437_166).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** |
| |<br><br>**Beginning**<br>**Fair**<br>**Value** |<br>**Items**<br>**Included**<br>**in**<br>**Net**<br>**Income** | **Gains**<br>**(Losses)**<br>**in**<br>**OCI**<br>**and**<br>**Other** <sup>(1)</sup> | **Issuances,**<br>**Sales,**<br>**Maturities,**<br>**Settlements,**<br>**Calls,**<br>**Net** | **Transfers**<br>**Into or**<br>**Out**<br>**of**<br>**Level 3,**<br>**Net** |<br><br>**Ending**<br>**Fair**<br>**Value** |
| **Assets** | | | | | | |
| Investments: <sup>(2)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $6951 | $(24) | $2 | $222 | $89 | $7240 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 19 | – | – | 67 | (7) | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 30 | – | – | 18 | (7) | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 2631 | – | (11) | 419 | (39) | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 81 | – | – | 1 | 9 | 91 |
| &nbsp;&nbsp;Trading securities | 287 | 3 | – | (1) | 7 | 296 |
| &nbsp;&nbsp;Equity securities | 29 | (1) | – | (4) | 54 | 78 |
| &nbsp;&nbsp;Mortgage loans on real estate | 232 | (1) | 2 | (1) | – | 232 |
| &nbsp;&nbsp;Other investments | 15 | – | – | 9 | – | 24 |
| Other assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(3)</sup> | 102 | (82) | – | – | – | 20 |
| &nbsp;&nbsp;Indexed annuity ceded embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives <sup>(4)</sup> | 1918 | 130 | – | 86 | – | 2134 |
| &nbsp;&nbsp;LPR ceded derivative <sup>(5)</sup> | 190 | 8 | – | – | – | 198 |
| **Liabilities** |  |  |  |  |  |  |
| Policyholder account balances – |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts <sup>(4)</sup> | (10807) | (2145) | – | (137) | – | (13089) |
| Funds withheld reinsurance liabilities – |  |  |  |  |  |  |
| &nbsp;&nbsp;reinsurance-related embedded derivatives <sup>(4)</sup> | (92) | – | – | – | – | (92) |
| Other liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(3)</sup> | (2103) | (438) | – | – | – | (2541) |
| &nbsp;&nbsp;Derivative liabilities | (109) | (6) | – | – | – | (115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $(626) | $(2556) | $(7) | $679 | $106 | $(2404) |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| |<br><br>**Beginning**<br>**Fair**<br>**Value** |<br>**Items**<br>**Included**<br>**in**<br>**Net**<br>**Income** | **Gains**<br>**(Losses)**<br>**in**<br>**OCI**<br>**and**<br>**Other** <sup>(1)</sup> | **Issuances,**<br>**Sales,**<br>**Maturities,**<br>**Settlements,**<br>**Calls,**<br>**Net** | **Transfers**<br>**Into or**<br>**Out**<br>**of**<br>**Level 3,**<br>**Net** |<br><br>**Ending**<br>**Fair**<br>**Value** |
| **Assets** | | | | | | |
| Investments: <sup>(2)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $6747 | $(1) | $(8) | $171 | $(92) | $6817 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 12 | – | – | 6 | – | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 8 | – | – | 14 | – | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 1692 | – | 7 | 365 | (67) | 1997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 51 | – | (1) | – | – | 50 |
| &nbsp;&nbsp;Trading securities | 271 | – | – | 2 | – | 273 |
| &nbsp;&nbsp;Equity securities | 39 | – | – | (1) | – | 38 |
| &nbsp;&nbsp;Mortgage loans on real estate | 289 | 4 | – | (35) | – | 258 |
| &nbsp;&nbsp;Derivative investments | 1 | (6) | – | (3) | – | (8) |
| Other assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(3)</sup> | 59 | (20) | – | – | – | 39 |
| &nbsp;&nbsp;Indexed annuity ceded embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives <sup>(4)</sup> | 973 | 11 | – | 772 | – | 1756 |
| &nbsp;&nbsp;LPR ceded derivative <sup>(5)</sup> | 201 | 1 | – | – | – | 202 |
| **Liabilities** |  |  |  |  |  |  |
| Policyholder account balances – |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts <sup>(4)</sup> | (10896) | (339) | – | (182) | – | (11417) |
| Funds withheld reinsurance liabilities – |  |  |  |  |  |  |
| &nbsp;&nbsp;reinsurance-related embedded derivatives <sup>(4)</sup> | (25) | (28) | – | – | – | (53) |
| Other liabilities – ceded MRBs <sup>(3)</sup> | (2261) | 72 | – | – | – | (2189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $(2839) | $(306) | $(2) | $1109 | $(159) | $(2197) |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** |
|  | <br>**Beginning**<br>**Fair**<br>**Value** | <br>**Items**<br>**Included**<br>**in**<br>**Net**<br>**Income** | **Gains**<br>**(Losses)**<br>**in**<br>**OCI**<br>**and**<br>**Other** <sup>(1)</sup> | **Issuances,**<br>**Sales,**<br>**Maturities,**<br>**Settlements,**<br>**Calls,**<br>**Net** | **Transfers**<br>**Into or**<br>**Out**<br>**of**<br>**Level 3,**<br>**Net** | <br>**Ending**<br>**Fair**<br>**Value** |
| **Assets** |  |  |  |  |  |  |
| Investments: <sup>(2)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $7025 | $(34) | $(1) | $139 | $111 | $7240 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 12 | – | – | 74 | (7) | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 8 | – | – | 40 | (7) | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 2099 | (21) | 7 | 897 | 18 | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 72 | – | – | 19 | – | 91 |
| &nbsp;&nbsp;Trading securities | 265 | 4 | – | 3 | 24 | 296 |
| &nbsp;&nbsp;Equity securities | 34 | (8) | – | (2) | 54 | 78 |
| &nbsp;&nbsp;Mortgage loans on real estate | 232 | (2) | 4 | (2) | – | 232 |
| &nbsp;&nbsp;Other investments <sup>(4)</sup> | 23 | – | – | 1 | – | 24 |
| Other assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(3)</sup> | 14 | 6 | – | – | – | 20 |
| &nbsp;&nbsp;Indexed annuity ceded embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;derivatives <sup>(4)</sup> | 1970 | 80 | – | 84 | – | 2134 |
| &nbsp;&nbsp;LPR ceded derivative <sup>(5)</sup> | 190 | 8 | – | – | – | 198 |
| **Liabilities** |  |  |  |  |  |  |
| Policyholder account balances - |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts <sup>(4)</sup> | (12449) | (472) | – | (168) | – | (13089) |
| Funds withheld reinsurance liabilities – |  |  |  |  |  |  |
| &nbsp;&nbsp;reinsurance-related embedded derivatives <sup>(4)</sup> | (59) | (33) | – | – | – | (92) |
| Other liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(3)</sup> | (2763) | 222 | – | – | – | (2541) |
| &nbsp;&nbsp;Derivative liabilities | (136) | 21 | – | – | – | (115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $(3463) | $(229) | $10 | $1085 | $193 | $(2404) |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
|  | <br>**Beginning**<br>**Fair**<br>**Value** | <br>**Items**<br>**Included**<br>**in**<br>**Net**<br>**Income** | **Gains**<br>**(Losses)**<br>**in**<br>**OCI**<br>**and**<br>**Other** <sup>(1)</sup> | **Issuances,**<br>**Sales,**<br>**Maturities,**<br>**Settlements,**<br>**Calls,**<br>**Net** | **Transfers**<br>**Into or**<br>**Out**<br>**of**<br>**Level 3,**<br>**Net** | <br>**Ending**<br>**Fair**<br>**Value** |
| **Assets** |  |  |  |  |  |  |
| Investments: <sup>(2)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $6469 | $– | $(16) | $481 | $(117) | $6817 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipal bonds | 5 | – | – | – | (5) | – |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 13 | – | (1) | 6 | – | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 8 | – | – | 14 | – | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 1484 | 1 | 5 | 566 | (59) | 1997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 48 | – | 2 | – | – | 50 |
| &nbsp;&nbsp;Trading securities | 284 | – | – | (11) | – | 273 |
| &nbsp;&nbsp;Equity securities | 42 | (3) | – | (1) | – | 38 |
| &nbsp;&nbsp;Mortgage loans on real estate | 288 | 4 | 1 | (35) | – | 258 |
| &nbsp;&nbsp;Derivative investments | 36 | 5 | – | 2 | (51) | (8) |
| Other assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(3)</sup> | 274 | (235) | – | – | – | 39 |
| &nbsp;&nbsp;Indexed annuity ceded embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;derivatives <sup>(4)</sup> | 940 | 44 | – | 772 | – | 1756 |
| &nbsp;&nbsp;LPR ceded derivative <sup>(5)</sup> | 206 | (4) | – | – | – | 202 |
| **Liabilities** |  |  |  |  |  |  |
| Policyholder account balances - |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts <sup>(4)</sup> | (9077) | (2015) | – | (325) | – | (11417) |
| Funds withheld reinsurance liabilities – |  |  |  |  |  |  |
| &nbsp;&nbsp;reinsurance-related embedded derivatives <sup>(4)</sup> | – | (53) | – | – | – | (53) |
| Other liabilities – ceded MRBs <sup>(3)</sup> | (1149) | (1040) | – | – | – | (2189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $(129) | $(3296) | $(9) | $1469 | $(232) | $(2197) |

---

<sup>(1)</sup> The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see [Note 5](#id1b96fe37c7f4484b056a1b831bae437_166)).

<sup>(2)</sup> Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

<sup>(3)</sup> Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

<sup>(4)</sup> Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

<sup>(5)</sup> Gains (losses) from the changes in fair value are included in benefits on the Consolidated Statements of Comprehensive Income (Loss).

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** |
| | **Issuances** | **Sales** | **Maturities** | **Settlements** | **Calls** | **Total** |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $606 | $(245) | $(6) | $(123) | $(10) | $222 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 68 | – | – | (1) | – | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 33 | (15) | – | – | – | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 577 | (40) | – | (77) | (41) | 419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities | 1 | – | – | – | – | 1 |
| &nbsp;&nbsp;Trading securities | 11 | (10) | – | (2) | – | (1) |
| &nbsp;&nbsp;Equity securities | 7 | (11) | – | – | – | (4) |
| &nbsp;&nbsp;Mortgage loans on real estate | 1 | – | – | (2) | – | (1) |
| &nbsp;&nbsp;Other investments | 9 | – | – | – | – | 9 |
| Other assets – indexed annuity ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;embedded derivatives | 66 | – | – | 20 | – | 86 |
| Policyholder account balances – |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts | (426) | – | – | 289 | – | (137) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $953 | $(321) | $(6) | $104 | $(51) | $679 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| | **Issuances** | **Sales** | **Maturities** | **Settlements** | **Calls** | **Total** |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $375 | $(79) | $– | $(125) | $– | $171 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 6 | – | – | – | – | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 14 | – | – | – | – | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 462 | (30) | – | (56) | (11) | 365 |
| &nbsp;&nbsp;Trading securities | 4 | – | – | (2) | – | 2 |
| &nbsp;&nbsp;Equity securities | – | (1) | – | – | – | (1) |
| &nbsp;&nbsp;Mortgage loans on real estate | – | (30) | – | (5) | – | (35) |
| &nbsp;&nbsp;Derivative investments | (3) | – | – | – | – | (3) |
| Other assets – indexed annuity ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;embedded derivatives | 26 | – | – | 746 | – | 772 |
| Policyholder account balances – |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts | (285) | – | – | 103 | – | (182) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $599 | $(140) | $– | $661 | $(11) | $1109 |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** |
| | **Issuances** | **Sales** | **Maturities** | **Settlements** | **Calls** | **Total** |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $856 | $(481) | $(6) | $(220) | $(10) | $139 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 75 | – | – | (1) | – | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 55 | (15) | – | – | – | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 1171 | (40) | (10) | (167) | (57) | 897 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 21 | (2) | – | – | – | 19 |
| &nbsp;&nbsp;Trading securities | 61 | (52) | – | (6) | – | 3 |
| &nbsp;&nbsp;Equity securities | 10 | (12) | – | – | – | (2) |
| &nbsp;&nbsp;Mortgage loans on real estate | 1 | (1) | – | (2) | – | (2) |
| &nbsp;&nbsp;Other investments | 11 | – | (10) | – | – | 1 |
| Other assets – indexed annuity ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;embedded derivatives | 90 | – | – | (6) | – | 84 |
| Policyholder account balances – |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts | (656) | – | – | 488 | – | (168) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total, net | $1695 | $(603) | $(26) | $86 | $(67) | $1085 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| | **Issuances** | **Sales** | **Maturities** | **Settlements** | **Calls** | **Total** |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $911 | $(206) | $(2) | $(221) | $(1) | $481 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | 6 | – | – | – | – | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | 14 | – | – | – | – | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 726 | (30) | – | (119) | (11) | 566 |
| &nbsp;&nbsp;Trading securities | 4 | (2) | – | (13) | – | (11) |
| &nbsp;&nbsp;Equity securities | – | (1) | – | – | – | (1) |
| &nbsp;&nbsp;Mortgage loans on real estate | 1 | (31) | – | (5) | – | (35) |
| &nbsp;&nbsp;Derivative investments | 4 | – | (2) | – | – | 2 |
| Other assets – indexed annuity ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;embedded derivatives | 52 | – | – | 720 | – | 772 |
| Policyholder account balances – |  |  |  |  |  |  |
| &nbsp;&nbsp;RILA, fixed annuity and |  |  |  |  |  |  |
| &nbsp;&nbsp;IUL contracts | (533) | – | – | 208 | – | (325) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total, net | $1185 | $(270) | $(4) | $570 | $(12) | $1469 |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three<br>Months Ended<br>June 30,** | **For the Three<br>Months Ended<br>June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Investments: |  |  |  |  |
| &nbsp;&nbsp;Trading securities <sup>(1)</sup> | $3 | $(1) | $– | $(1) |
| &nbsp;&nbsp;Equity securities <sup>(1)</sup> | (1) | – | (7) | (2) |
| &nbsp;&nbsp;Mortgage loans on real estate <sup>(1)</sup> | (1) | (3) | (2) | (4) |
| &nbsp;&nbsp;Derivative investments <sup>(1)</sup> | (6) | (8) | (6) | 8 |
| MRBs <sup>(2)</sup> | 438 | 160 | (187) | 845 |
| Other assets – LPR ceded derivative <sup>(3)</sup> | 8 | 1 | 8 | (4) |
| Funds withheld reinsurance liabilities – |  |  |  |  |
| &nbsp;&nbsp;reinsurance-related embedded derivatives <sup>(1)</sup> | – | (28) | (33) | (53) |
| Embedded derivatives – indexed annuity |  |  |  |  |
| &nbsp;&nbsp;and IUL contracts <sup>(1)</sup> | 206 | 228 | 375 | 469 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total, net | $647 | $349 | $148 | $1258 |

---

<sup>(1)</sup> Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

<sup>(2)</sup> Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

<sup>(3)</sup> Included in benefits on the Consolidated Statements of Comprehensive Income (Loss).

The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three<br>Months Ended<br>June 30,** | **For the Three<br>Months Ended<br>June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Investments: |  |  |  |  |
| Fixed maturity AFS securities: |  |  |  |  |
| &nbsp;&nbsp;Corporate bonds | $(9) | $(27) | $(16) | $(37) |
| &nbsp;&nbsp;ABS | (5) | (20) | 11 | (20) |
| &nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;securities | – | (1) | – | 1 |
| Mortgage loans on real estate | 2 | – | 4 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $(12) | $(48) | $(1) | $(55) |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three<br>Months Ended<br>June 30, 2025** | **For the Three<br>Months Ended<br>June 30, 2025** | **For the Three<br>Months Ended<br>June 30, 2025** | **For the Three<br>Months Ended<br>June 30, 2024** | **For the Three<br>Months Ended<br>June 30, 2024** | **For the Three<br>Months Ended<br>June 30, 2024** |
| | **Transfers**<br>**Into**<br>**Level 3** | **Transfers**<br>**Out of**<br>**Level 3** |<br>**Total** | **Transfers**<br>**Into**<br>**Level 3** | **Transfers**<br>**Out of**<br>**Level 3** |<br>**Total** |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $90 | $(1) | $89 | $– | $(92) | $(92) |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | – | (7) | (7) | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | – | (7) | (7) | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 13 | (52) | (39) | 18 | (85) | (67) |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 9 | – | 9 | – | – | – |
| &nbsp;&nbsp;Trading securities | 7 | – | 7 | – | – | – |
| &nbsp;&nbsp;Equity securities | 54 | – | 54 | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net | $173 | $(67) | $106 | $18 | $(177) | $(159) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six<br>Months Ended<br>June 30, 2025** | **For the Six<br>Months Ended<br>June 30, 2025** | **For the Six<br>Months Ended<br>June 30, 2025** | **For the Six<br>Months Ended<br>June 30, 2024** | **For the Six<br>Months Ended<br>June 30, 2024** | **For the Six<br>Months Ended<br>June 30, 2024** |
|  | **Transfers**<br>**Into**<br>**Level 3** | **Transfers**<br>**Out of**<br>**Level 3** | <br>**Total** | **Transfers**<br>**Into**<br>**Level 3** | **Transfers**<br>**Out of**<br>**Level 3** | <br>**Total** |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $112 | $(1) | $111 | $19 | $(136) | $(117) |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipal bonds | – | – | – | – | (5) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;RMBS | – | (7) | (7) | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;CMBS | – | (7) | (7) | – | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS | 70 | (52) | 18 | 49 | (108) | (59) |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;securities | 9 | (9) | – | – | – | – |
| &nbsp;&nbsp;Trading securities | 24 | – | 24 | – | – | – |
| &nbsp;&nbsp;Equity securities | 54 | – | 54 | – | – | – |
| &nbsp;&nbsp;Derivative investments | – | – | – | – | (51) | (51) |
| Total, net | $269 | $(76) | $193 | $68 | $(300) | $(232) |

---

Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three and six months ended June 30, 2025 and 2024, transfers in and out of Level 3 were attributable primarily to the financial instruments' observable market information no longer being available or becoming available.

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of June 30, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Assumption or** | **Assumption or** | |
| |<br>**Fair**<br>**Value** |<br>**Valuation**<br>**Technique** |<br>**Significant**<br>**Unobservable Inputs** | **Input Ranges** | **Input Ranges** | **Weighted**<br>**Average<br>Input**<br>**Range** <sup>(1)</sup> |
| **Assets** | | | | | | |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $170 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 0.0% | 2.9% | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CMBS | 41 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 1.8% | 1.9% | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABS | 9 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 1.1% | 1.1% | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preferred securities | 39 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 1.2% | 2.0% | 1.8% |
| &nbsp;&nbsp;Equity securities | 5 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 4.5% | 4.5% | 4.5% |
| MRB assets | 4577 | Discounted cash flow | Lapse <sup>(3)</sup> | 1.0% | 30.0% | <sup>(10)</sup> |
|  |  |  | Utilization of GLB withdrawals <sup>(4)</sup> | 85.0% | 100.0% | 92.0% |
|  |  |  | Claims utilization factor <sup>(5)</sup> | 60.0% | 100.0% | <sup>(10)</sup> |
|  |  |  | Premiums utilization factor <sup>(5)</sup> | 80.0% | 115.0% | <sup>(10)</sup> |
|  |  |  | Non-performance risk <sup>(6)</sup> | 0.3% | 1.9% | 1.5% |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | <sup>(10)</sup> |
|  |  |  | Volatility <sup>(8)</sup> | 1.0% | 29.0% | 14.4% |
| Other assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(11)</sup> | 20 |  |  |  |  |  |
| &nbsp;&nbsp;Indexed annuity |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ceded embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives | 2134 | Discounted cash flow | Lapse <sup>(3)</sup> | 0.0% | 9.0% | <sup>(10)</sup> |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | <sup>(10)</sup> |
| &nbsp;&nbsp;LPR ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivative | 198 | Discounted cash flow | Lapse <sup>(3)</sup> | 0.1% | 2.0% | <sup>(10)</sup> |
|  |  |  | Non-performance risk <sup>(6)</sup> | 0.3% | 1.9% | 1.4% |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | <sup>(10)</sup> |
| **Liabilities** |  |  |  |  |  |  |
| Policyholder account |  |  |  |  |  |  |
| &nbsp;&nbsp;balances – indexed annuity |  |  |  |  |  |  |
| &nbsp;&nbsp;contracts embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;derivatives | $(13053) | Discounted cash flow | Lapse <sup>(3)</sup> | 0.0% | 9.0% | <sup>(10)</sup> |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | <sup>(10)</sup> |
| MRB liabilities | (1205) | Discounted cash flow | Lapse <sup>(3)</sup> | 1.0% | 30.0% | <sup>(10)</sup> |
|  |  |  | Utilization of GLB withdrawals <sup>(4)</sup> | 85.0% | 100.0% | 92.0% |
|  |  |  | Claims utilization factor <sup>(5)</sup> | 60.0% | 100.0% | <sup>(10)</sup> |
|  |  |  | Premiums utilization factor <sup>(5)</sup> | 80.0% | 115.0% | <sup>(10)</sup> |
|  |  |  | Non-performance risk <sup>(6)</sup> | 0.3% | 1.9% | 1.5% |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | <sup>(10)</sup> |
|  |  |  | Volatility <sup>(8)</sup> | 1.0% | 29.0% | 14.4% |
| Other liabilities – ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;MRBs <sup>(11)</sup> | (2541) |  |  |  |  |  |

---

------

**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Assumption or** | **Assumption or** | |
| |<br>**Fair**<br>**Value** |<br>**Valuation**<br>**Technique** |<br>**Significant**<br>**Unobservable Inputs** | **Input Ranges** | **Input Ranges** | **Weighted**<br>**Average<br>Input**<br>**Range** <sup>(1)</sup> |
| **Assets** | | | | | | |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity AFS |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $185 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 0.0% | 3.1% | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CMBS | 8 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 1.9% | 1.9% | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABS | 10 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 1.3% | 1.3% | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hybrid and redeemable |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; preferred securities | 19 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 1.4% | 1.9% | 1.8% |
| &nbsp;&nbsp;Equity securities | 5 | Discounted cash flow | Liquidity/duration adjustment <sup>(2)</sup> | 4.5% | 4.5% | 4.5% |
| MRB assets | 4860 | Discounted cash flow | Lapse <sup>(3)</sup> | 1.0% | 30.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
|  |  |  | Utilization of GLB withdrawals <sup>(4)</sup> | 85.0% | 100.0% | 92.0% |
|  |  |  | Claims utilization factor <sup>(5)</sup> | 60.0% | 100.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
|  |  |  | Premiums utilization factor <sup>(5)</sup> | 80.0% | 115.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
|  |  |  | Non-performance risk <sup>(6)</sup> | 0.3% | 2.0% | 1.6% |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
|  |  |  | Volatility <sup>(8)</sup> | 1.0% | 29.0% | 14.5% |
| Other assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Ceded MRBs <sup>(11)</sup> | 14 |  |  |  |  |  |
| &nbsp;&nbsp;Indexed annuity |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ceded embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives | 1970 | Discounted cash flow | Lapse <sup>(3)</sup> | 0.0% | 9.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
| &nbsp;&nbsp;LPR ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivative | 190 | Discounted cash flow | Lapse <sup>(3)</sup> | 0.1% | 2.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
|  |  |  | Non-performance risk <sup>(6)</sup> | 0.3% | 2.0% | 1.4% |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(10)</sup> |
| **Liabilities** |  |  |  |  |  |  |
| Policyholder account |  |  |  |  |  |  |
| &nbsp;&nbsp;balances – indexed annuity |  |  |  |  |  |  |
| &nbsp;&nbsp;contracts embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;derivatives | $(12402) | Discounted cash flow | Lapse <sup>(3)</sup> | 0.0% | 9.0% | <sup>(10)</sup> |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | <sup>(10)</sup> |
| MRB liabilities | (1046) | Discounted cash flow | Lapse <sup>(3)</sup> | 1.0% | 30.0% | <sup>(10)</sup> |
|  |  |  | Utilization of GLB withdrawals <sup>(4)</sup> | 85.0% | 100.0% | 92.0% |
|  |  |  | Claims utilization factor <sup>(5)</sup> | 60.0% | 100.0% | <sup>(10)</sup> |
|  |  |  | Premiums utilization factor <sup>(5)</sup> | 80.0% | 115.0% | <sup>(10)</sup> |
|  |  |  | Non-performance risk <sup>(6)</sup> | 0.3% | 2.0% | 1.6% |
|  |  |  | Mortality <sup>(7)</sup> |  | <sup>(9)</sup> | <sup>(10)</sup> |
|  |  |  | Volatility <sup>(8)</sup> | 1.0% | 29.0% | 14.5% |
| Other liabilities – ceded |  |  |  |  |  |  |
| &nbsp;&nbsp;MRBs <sup>(11)</sup> | (2763) |  |  |  |  |  |

---

<sup>(1)</sup> Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

<sup>(2)</sup> The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

<sup>(3)</sup> The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period.

<sup>(4)</sup> The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

<sup>(5)</sup> The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal.

<sup>(6)</sup> The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption. The non-performance risk input for LPR ceded derivative was weighted using a simple average.

<sup>(7)</sup> The mortality input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

<sup>(8)</sup> The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account balance assigned to each index.

<sup>(9)</sup> The mortality is based on a combination of company and industry experience, adjusted for improvement factors.

<sup>(10)</sup> A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality.

<sup>(11)</sup> The fair value inputs for ceded MRBs are consistent with those used to value MRB assets and liabilities.

From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement.

The embedded derivative liability associated with Fortitude Re was excluded from the above table. As discussed in [Note 7](#id1b96fe37c7f4484b056a1b831bae437_160), this embedded derivative liability was created through a coinsurance with funds withheld reinsurance agreement where the investments supporting the reinsurance agreement were withheld and continue to be reported on the Consolidated Balance Sheets. This reinsurance-related embedded derivative is valued as a total return swap with reference to the fair value of the investments held by us. Accordingly, the unobservable inputs utilized in the valuation of the reinsurance-related embedded derivative are a component of the investments supporting the reinsurance agreement that are reported on the Consolidated Balance Sheets.

Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows:

• *Investments* – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement.

• *Indexed annuity contracts embedded derivatives* – For direct embedded derivatives, an increase in the lapse or mortality inputs would have resulted in a decrease in the fair value measurement.

*• LPR ceded derivative* – Assuming our LPR ceded derivative is in an asset position: an increase in our lapse, non-performance risk or mortality inputs would have resulted in an increase in the fair value measurement.

• *MRBs –* Assuming our MRBs are in a liability position: an increase in our lapse, non-performance risk or mortality inputs would have resulted in a decrease in the fair value measurement, except for policies with guaranteed death benefit ("GDB") riders only, in which case an increase in mortality inputs would have resulted in an increase in the fair value measurement.

For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs.

As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary.

**Fair Value Option**

Mortgage loans on real estate, net of allowance for credit losses, as reported on the Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on the Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are classified as Level 3 within the fair value hierarchy.

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The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:

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| | | |
|:---|:---|:---|
| | **As of<br>June 30,**<br>**2025** | **As of<br>December 31,**<br>**2024** |
| Fair value | $232 | $232 |
| Aggregate contractual principal | 265 | 263 |

---

For information on current and past due composition and accruing status for loans where we have elected the fair value option, see Note 3.

**Financial Instruments Not Carried at Fair Value**

The following summarizes the fair value by the fair value hierarchy levels and the carrying amount of our financial instruments not carried at fair value (in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Quoted**<br>**Prices**<br>**in Active**<br>**Markets for**<br>**Identical**<br>**Assets**<br>**(Level 1)** | <br>**Significant**<br>**Observable**<br>**Inputs**<br>**(Level 2)** | <br>**Significant**<br>**Unobservable**<br>**Inputs**<br>**(Level 3)** | <br>**Total**<br>**Fair**<br>**Value** | <br>**Carrying**<br>**Amount** |
| **Assets** |  |  |  |  |  |
| Investments: |  |  |  |  |  |
| &nbsp;&nbsp;Mortgage loans on real estate | $– | $20750 | $– | $20750 | $21625 |
| &nbsp;&nbsp;Other investments | – | 647 | 5342 | 5989 | 5989 |
| &nbsp;&nbsp;Policy loans | – | 2542 | – | 2542 | 2542 |
| Cash and invested cash | – | 6268 | – | 6268 | 6268 |
| **Liabilities** |  |  |  |  |  |
| Policyholder account balances – certain investment |  |  |  |  |  |
| &nbsp;&nbsp;contracts and other liabilities | $– | $– | $(31622) | $(31622) | $(41932) |
| Policyholder account balances – funding agreements | – | (1030) | – | (1030) | (1000) |
| Short-term debt | – | (173) | – | (173) | (173) |
| Long-term debt | – | (2176) | – | (2176) | (2150) |
| Funds withheld reinsurance-related liabilities – |  |  |  |  |  |
| &nbsp;&nbsp;excluding embedded derivatives | – | – | (27031) | (27031) | (27031) |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Quoted**<br>**Prices**<br>**in Active**<br>**Markets for**<br>**Identical**<br>**Assets**<br>**(Level 1)** | <br>**Significant**<br>**Observable**<br>**Inputs**<br>**(Level 2)** | <br>**Significant**<br>**Unobservable**<br>**Inputs**<br>**(Level 3)** | <br>**Total**<br>**Fair**<br>**Value** | <br>**Carrying**<br>**Amount** |
| **Assets** |  |  |  |  |  |
| Investments: |  |  |  |  |  |
| &nbsp;&nbsp;Mortgage loans on real estate | $– | $19523 | $– | $19523 | $20940 |
| &nbsp;&nbsp;Other investments | – | 1061 | 5211 | 6272 | 6272 |
| &nbsp;&nbsp;Policy loans | – | 2465 | – | 2465 | 2465 |
| Cash and invested cash | – | 4505 | – | 4505 | 4505 |
| **Liabilities** |  |  |  |  |  |
| Policyholder account balances – certain investment |  |  |  |  |  |
| &nbsp;&nbsp;contracts and other liabilities | $– | $– | $(29689) | $(29689) | $(39137) |
| Short-term debt | – | (24) | – | (24) | (24) |
| Long-term debt | – | (2164) | – | (2164) | (2173) |
| Funds withheld reinsurance-related liabilities – |  |  |  |  |  |
| &nbsp;&nbsp;excluding embedded derivatives | – | – | (27538) | (27538) | (27538) |

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The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on the Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown above are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments.

*Mortgage Loans on Real Estate*

The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, LTV, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy.

*Other Investments*

The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy.

*Policy Loans*

The carrying value for policy loans are the unpaid principal balances. Policy loans are fully collateralized by the cash surrender value of underlying insurance policies. As a result, the carrying value of the policy loans approximates the fair value. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy.

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*Cash and Invested Cash*

Cash and invested cash is carried at cost. The inputs used to measure its fair value are classified as Level 2 within the fair value hierarchy.

*Policyholder Account Balances – Certain Investment Contracts and Other Liabilities*

Policyholder account balances and other liabilities include account balances of certain investment contracts that exclude significant mortality or morbidity risk. The fair value of the account balances of certain investment contracts is based on a discounted cash flow model as of the balance sheet date. The inputs used to measure the fair value of these policyholder account balances are classified as Level 3 within the fair value hierarchy.

*Policyholder Account Balances – Funding Agreements*

The fair value of funding agreements is based on quoted market prices and is measured using inputs that are classified as Level 2 within the fair value hierarchy. For more information on funding agreements, see Note 10.

*Short-Term and Long-Term Debt*

The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy.

*Funds Withheld Reinsurance Liabilities*

Funds withheld reinsurance liabilities includes our obligation to pay reinsurers under coinsurance with funds withheld and modified coinsurance arrangements where the Company is the cedant. This liability includes embedded derivatives, which are total return swaps with contractual returns that are attributable to the Company's reinsurance agreements. The embedded derivatives are carried at fair value and thus excluded from the preceding table. The inputs used to measure the remaining balance are classified as Level 3 within the fair value hierarchy.

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**13. Contingencies and Commitments**

**Contingencies**

*Regulatory and Litigation Matters*

Regulatory bodies, such as state insurance departments, the SEC, the Financial Industry Regulatory Authority, tax authorities and other regulatory bodies regularly make inquiries and conduct examinations, investigations or audits concerning our compliance with, among other things, insurance laws, securities laws, tax laws, laws governing the activities of broker-dealers and registered investment advisers and unclaimed property laws. Tax-related matters can include disputes with taxing authorities, ongoing audits, evaluation of filing positions and any potential assessments related thereto.

LNL and its affiliates are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNL in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of June 30, 2025.

For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss.

As of June 30, 2025, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $150 million, after-tax. Any estimate is not an indication of expected loss, if any, or of the Company's maximum possible loss exposure on such matters.

For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Among other matters, we are presently engaged in litigation, including relating to cost of insurance rates ("Cost of Insurance and Other Litigation"), as described below. No accrual has been made for some of these matters. Although a loss is believed to be reasonably possible for these matters, for some of these matters, we are not able to estimate a reasonably possible amount or range of potential liability. An adverse outcome in one or more of these matters may have a material impact on the consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact.

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*Cost of Insurance and Other Litigation* 

<u>Cost of Insurance Litigation</u>

*Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company*, filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff's policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed plaintiff's complaint in its entirety. In response, plaintiff filed a motion for leave to amend the complaint, which, on September 25, 2023, the court granted in part and denied in part. Plaintiff filed an amended complaint on October 10, 2023. On March 7, 2024, the parties entered into a provisional settlement agreement that encompasses policies that are at issue in this case, which also includes all policies at issue in the lawsuits captioned *TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company* and *Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York*, both of which are described below, and one additional case to which an affiliate of LNL is a party, *Iwanski v. First Penn-Pacific Life Insurance Company*, which has been previously disclosed by our parent company, LNC. The *Glover* plaintiffs' motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and on September 4, 2024, the court granted preliminary approval of the provisional settlement. On December 16, 2024, the court heard oral argument on the issue of whether to grant final approval of the provisional settlement. On June 16, 2025, the court granted final approval of the provisional settlement and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the *TVPX ARS INC.*, *Vida* and *Iwanski* cases appealed the final approval of the provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement, which is subject to the outcome of the appeal, consists of a $147.5 million pre-tax cash payment for *Glover* class members (inclusive of all policyholders in *TVPX ARS INC.*, *Vida* and *Iwanski*). As of June 30, 2025, the total provisional settlement amount of $147.5 million, pre-tax, remains accrued.

*TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company*, filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff's policy and seeks damages on behalf of all such policyholders. On March 7, 2024, the parties in *Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company* (discussed above) entered into a provisional settlement agreement that encompasses all policies at issue in this case, as the *Glover* case is inclusive of all policies in this case, as well as in the lawsuit captioned *Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York* (discussed below), and one additional case to which an affiliate of LNL is a party, *Iwanski v. First Penn-Pacific Life Insurance Company*, which has been previously disclosed by our parent company, LNC. The *Glover* plaintiffs' motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and on September 4, 2024, the court granted preliminary approval of the provisional settlement. On December 16, 2024, the court heard oral argument on the issue of whether to grant final approval of the provisional settlement. On June 16, 2025, the court granted final approval of the *Glover* provisional settlement and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the *TVPX ARS INC.*, *Vida* and *Iwanski* cases appealed the final approval of the provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement, which is subject to the outcome of the appeal, consists of a $147.5 million pre-tax cash payment for *Glover* class members (inclusive of all policyholders in *TVPX ARS INC.*, *Vida* and *Iwanski*). A motion has been filed to stay the proceedings in this matter (as well as the *Iwanski* matter) pending the completion of the settlement approval process in *Glover*.

*Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York*, pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that LLANY charged more for non-guaranteed cost of insurance than was permitted by the policies. On March 31, 2022, the court issued an order granting plaintiff's motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013. Plaintiff seeks damages on behalf of the class. On April 19, 2023, LLANY filed a motion for summary judgment. On March 7, 2024, the parties in *Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company* (discussed above) entered into a provisional settlement agreement that encompasses all policies at issue in this case, as the *Glover* case is inclusive of all policies in this case, as well as in the lawsuit captioned *TVPX ARS INC.*, *as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company* (discussed above), and one additional case to which an affiliate of LNL is a party, *Iwanski v. First Penn-Pacific Life Insurance Company*, which has been previously disclosed by our parent company, LNC. The *Glover* plaintiffs' motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and on September 4, 2024, the court granted preliminary approval of the provisional settlement. On March 29, 2024, the court issued its summary judgment decision, granting LLANY's motion in part and denying it in part, and entering summary judgment against twenty-two policyholders that the court determined were not economically harmed. On June 25, 2024, the court granted LLANY's April 12, 2024, motion to stay proceedings in this matter pending the completion of the approval process in *Glover*. On December 16, 2024, the court heard oral argument on the issue of whether to grant final approval of the *Glover* provisional settlement. On June 16, 2025, the court granted final approval of the *Glover* provisional settlement and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the *TVPX ARS INC.*, *Vida* and *Iwanski* cases appealed the final approval of the

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provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement, which is subject to the outcome of the appeal, consists of a $147.5 million pre-tax cash payment for *Glover* class members (inclusive of all policyholders in *TVPX ARS INC.*, *Vida* and *Iwanski*).

*Angus v. The Lincoln National Life Insurance Company*, pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:22-cv-01878, is a putative class action filed on May 13, 2022. Plaintiff alleges that defendant LNL breached the terms of her life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued or insured by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff's policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. On August 26, 2022, LNL filed a motion to dismiss. We are vigorously defending this matter.

*EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company*, No. 17-cv-02592-GJP (E.D. Pa.), filed on February 1, 2017; *Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company*, No. 2:23-cv-2251-GJP (E.D. Pa.), filed on April 20, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on June 12, 2023); *Ryan K. Crayne, on behalf of and as trustee for Carlton Peak Trust v. The Lincoln National Life Insurance Company*, No. 2:24-cv-00053-GJP, filed on November 17, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on January 4, 2024) and *Wells Fargo Bank, N.A, solely in its capacity as securities intermediary v. The Lincoln National Life Insurance Company*, No. 25-cv-00152-GJP (E.D. Pa.), filed on December 4, 2024 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on January 9, 2025) are consolidated civil actions pending in the Eastern District of Pennsylvania. In each case other than *Crayne*, plaintiffs purport to own universal life insurance policies or interests in universal life insurance policies originally issued by Jefferson-Pilot (now LNL). In *Crayne*, plaintiffs purport to own litigation claims concerning universal life policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs in each case allege that LNL breached the terms of policyholders' contracts when it increased non-guaranteed cost of insurance rates beginning in 2016 (or, in *Brighton Trustees* and *Wells Fargo Bank*, in 2016 and 2017). We are vigorously defending these consolidated matters. *Conestoga Trust, et al, v. Lincoln National Corp., et al.*, No. 18-cv-02379-GJP (E.D. Pa.), filed on June 6, 2018, was previously consolidated with the above civil actions. On April 2, 2025, we entered into an agreement with the plaintiffs in *Conestoga Trust* in full and final settlement of this matter, and the *Conestoga Trust* matter is now concluded.

<u>Other Litigation</u> 

*Henry Morgan et al. v. Lincoln National Corporation d/b/a Lincoln Financial Group, et al*, filed in the District Court of the 14<sup>th</sup> Judicial District of Dallas County, Texas, No. DC-23-02492, is a putative class action that was filed on February 22, 2023. Plaintiffs Henry Morgan, Susan Smith, Charles Smith, Laura Seale, Terri Cogburn, Laura Baesel, Kathleen Walton, Terry Warner, and Toni Hale ("Plaintiffs") allege on behalf of a putative class that Lincoln National Corporation d/b/a Lincoln Financial Group, LNL and LLANY (together, "Lincoln"), FMR, LLC, and Fidelity Product Services, LLC ("Fidelity") created and marketed misleading and deceptive insurance products with attributes of investment products. The putative class comprises all individuals and entities who purchased Lincoln OptiBlend products that allocated account monies to the 1-Year Fidelity AIM Dividend Participation Account, between January 1, 2020, to December 31, 2022. Plaintiffs assert the following claims individually and on behalf of the class, (1) violations of the Texas Deceptive Trade Practices Act against Lincoln; (2) common-law fraud against Lincoln; (3) negligent misrepresentation against Lincoln and Fidelity; and (4) aiding and abetting fraud against Fidelity. Plaintiffs allege they suffered damages from "a missed investment return of approximately 5-6%" and mitigation damages. They seek actual, consequential and punitive damages, as well as pre-judgment and post-judgment interest, attorney's fees and litigation costs. On March 31, 2023, the Lincoln defendants filed a notice of removal removing the action from the 14<sup>th</sup> Judicial District of Dallas County, Texas, to the United States District Court for the Northern District of Texas, Dallas Division. On May 8, 2023, the Lincoln defendants and the Fidelity defendants filed motions to dismiss, which remain pending. We are vigorously defending this matter.

*Kelly Grink v. Virtua Health and Lincoln National Corporation et al.*, No. 1:24-cv-09919, is a putative class action filed on October 18, 2024, in the U.S. District Court for the District of New Jersey. On March 7, 2025, plaintiffs filed an amended complaint which, *inter alia*, added an additional named plaintiff (Steven Molnar) and additional named defendants, including Lincoln Retirement Services Company, LLC, and [The] Lincoln National Life Insurance Company. Plaintiffs Kelly Grink, Diane Trump and Steven Molnar are participants in Virtua Health's defined contribution plans. Plaintiffs seek to represent all current and former participants or beneficiaries of Virtua's 401(k) savings plan and 403(b) retirement program (together, the "Plans") who invested in the Plans' fixed annuity option in the six years prior to the filing of this lawsuit. Lincoln offers a fixed annuity investment option to plan participants through its group annuity contract with the Plans. Lincoln also provides recordkeeping and administration services to the Plans. Plaintiffs allege that the Virtua defendants acted in breach of their fiduciary duty including by maintaining the Plans' investment in the Lincoln stable value fund when other investment providers are alleged to have provided superior alternatives at substantially lower cost. Plaintiffs allege that the Lincoln defendants were at all relevant times fiduciaries to the Plans and were parties in interest to a prohibited transaction under ERISA. The action seeks relief against the Lincoln defendants including the disgorgement of any profits they received as a result of the alleged breaches of fiduciary duty, together with plaintiffs' attorney's fees and costs, prejudgment and post-judgment interest and such other equitable or remedial relief as the court deems appropriate. On April 4, 2025, the Lincoln defendants filed a motion to dismiss. We are vigorously defending this matter.

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*Tax Assessment Proceeding*

*Lincoln National Life Insurance Company v. Township of Radnor*, pending in the Court of Common Pleas of Delaware County, Pennsylvania Civil Division, No. 2022-001894, is a de novo appeal filed by LNL on March 21, 2022, regarding a September 30, 2021, Notice of Tax Assessment issued by the Township of Radnor to LNL for additional business privilege tax for the years 2014-2019/2020 estimate. The assessment was based on an audit undertaken by a third-party auditor and consultant to the Township of Radnor, following a periodic business review of LNL undertaken by the same individual in 2018. The assessment is comprised of taxes, interest and penalties for the period in question. LNL filed a motion for summary judgment that was denied by the court. The trial of this matter was held in the fourth quarter of 2024. On July 16, 2025, the court entered judgment in favor of LNL.

*Reinsurance Disputes*

Certain reinsurers have in the past sought, and may in the future seek, rate increases on certain yearly renewable term agreements. We may initiate legal proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have in the past initiated, and may in the future initiate, legal proceedings against us.

*State Guaranty Fund Assessments* 

State guaranty associations levy assessments on insurance companies doing business within their jurisdictions to cover policyholder losses from insolvent or impaired insurance companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We accrue the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life & Health Insurance Guaranty Associations and the amount of premiums written in each state. We reported the undiscounted expected state guaranty fund assessment liability within other liabilities on the Consolidated Balance Sheets of $59 million as of June 30, 2025, and December 31, 2024. The actual amount of assessments levied against us in connection with insurance company insolvencies may vary from this estimate. Future guaranty fund assessments are expected to be paid based on anticipated funding periods for each guaranty association obligation. In addition, we reported the related receivable for expected future state premium tax recoveries within other assets on the Consolidated Balance Sheets of $96 million as of June 30, 2025, and December 31, 2024. Premium tax recoveries are expected to be realized based on regulations set forth by the various state taxing authorities. The balance sheet position as of June 30, 2025, and December 31, 2024, nets to recoveries of $37 million.

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**14. Shares and Stockholder's Equity**

All authorized and issued shares of LNL are owned by LNC.

**AOCI**

The following summarizes the components and changes in AOCI (in millions):

---

| | | |
|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| **Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain** |  |  |
| **Other Investments** |  |  |
| Balance as of beginning-of-year | $(3655) | $(3532) |
| Unrealized holding gains (losses) | 972 | (1489) |
| Change in foreign currency exchange rate adjustment | 482 | (117) |
| Change in future contract benefits and policyholder account balances, |  |  |
| &nbsp;&nbsp;&nbsp;net of reinsurance | (473) | 2215 |
| Income tax benefit (expense) | (207) | (131) |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;Reclassification adjustment for gains (losses) included in net income (loss) | (12) | (106) |
| &nbsp;&nbsp;&nbsp;Income tax benefit (expense) | 3 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period | $(2872) | $(2970) |
| **Unrealized Gain (Loss) on Derivative Instruments** |  |  |
| Balance as of beginning-of-year | $402 | $249 |
| Unrealized holding gains (losses) | 191 | 46 |
| Change in foreign currency exchange rate adjustment | (474) | 117 |
| Income tax benefit (expense) | 60 | (35) |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;Reclassification adjustment for gains (losses) included in net income (loss) | 31 | 27 |
| &nbsp;&nbsp;&nbsp;Income tax benefit (expense) | (7) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of end-of-period | $155 | $356 |
| **Market Risk Benefit Non-Performance Risk Gain (Loss)** |  |  |
| Balance as of beginning-of-year | $145 | $1069 |
| OCI before reclassification | (42) | (841) |
| Income tax benefit (expense) | 9 | 180 |
| &nbsp;&nbsp;&nbsp;Balance as of end-of-period | $112 | $408 |
| **Policyholder Liability Discount Rate Remeasurement Gain (Loss)** |  |  |
| Balance as of beginning-of-year | $795 | $645 |
| OCI before reclassification | (161) | 241 |
| Income tax benefit (expense) | 34 | (51) |
| &nbsp;&nbsp;&nbsp;Balance as of end-of-period | $668 | $835 |
| **Funded Status of Employee Benefit Plans** |  |  |
| Balance as of beginning-of-year | $(17) | $(16) |
| Balance as of end-of-period | $(17) | $(16) |

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The following summarizes the reclassifications out of AOCI (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss):

---

| | | | |
|:---|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** | |
| | **2025** | **2024** | |
| **Unrealized Gain (Loss) on Fixed Maturity AFS** |  |  |  |
| &nbsp;&nbsp;**Securities and Certain Other Investments** |  |  |  |
| Reclassification | $(19) | $(111) | Realized gain (loss) |
| Associated change in future contract benefits | 7 | 5 | Benefits |
| Reclassification before income tax benefit (expense) | (12) | (106) | Income (loss) before taxes |
| Income tax benefit (expense) | 3 | 22 | Federal income tax expense (benefit) |
| &nbsp;&nbsp;&nbsp;Reclassification, net of income tax | $(9) | $(84) | Net income (loss) |
| **Unrealized Gain (Loss) on Derivative Instruments** |  |  |  |
| Interest rate contracts | $1 | $(1) | Net investment income |
| Foreign currency contracts | 27 | 29 | Net investment income |
| Foreign currency contracts | 3 | (1) | Realized gain (loss) |
| Reclassification before income tax benefit (expense) | 31 | 27 | Income (loss) before taxes |
| Income tax benefit (expense) | (7) | (6) | Federal income tax expense (benefit) |
| &nbsp;&nbsp;&nbsp;Reclassification, net of income tax | $24 | $21 | Net income (loss) |

---

**15. Segment Information** 

We provide products and services and report results through our Annuities, Life Insurance, Group Protection and Retirement Plan Services business segments. The accounting policies of the business segments and Other Operations are the same as those described in

Note 1 in our 2024 Form 10-K. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our business segments and Other Operations reflect the manner by which our CODM views and manages the business. Our CODM is the President. A discussion of these segments and Other Operations is found in Note 19 in our 2024 Form 10-K.

Income (loss) from operations is the internal measure used by our CODM that explains the results of our ongoing operations in a manner that allows for a better understanding of the underlying trends by excluding items that are not necessarily indicative of current operating fundamentals or future performance, and, in most instances, decisions regarding these adjustments do not necessarily relate to the operations of the individual business segments. Income (loss) from operations is used by our CODM to evaluate financial performance, to assess the budgeting and forecasting process and to determine future resource allocation. In the third quarter of 2024, we revised our definition of income (loss) from operations to exclude the impact of certain additional items that are not indicative of the ongoing operations of the business and may obscure trends in the underlying performance of the Company. The presentation of prior period income (loss) from operations was recast for such third quarter 2024 revisions to conform to the current period presentation.

Income (loss) from operations is GAAP net income (loss) excluding the following items, as applicable:

• Items related to annuity product features, which include changes in MRBs, income allocated to support the cost of hedging or future benefits, and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products (collectively, "net annuity product features");

• Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, "net life insurance product features");

• Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets ("credit loss-related adjustments");

• Changes in the fair value of equity securities and certain other investments, the impact of certain derivatives, and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, "investment gains (losses)");

• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option ("changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans");

• GLB rider fees ceded to LNBAR;

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• Income (loss) from the initial adoption of new accounting standards, accounting policy changes and new regulations, including changes in tax law;

• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

• Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;

• Income (loss) from discontinued operations;

• Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; transaction, integration and other costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business, and certain other corporate initiatives; mark-to-market adjustment related to the LNC stock component of deferred compensation plans ("deferred compensation mark-to-market adjustment"); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and

• Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

We use our prevailing corporate federal income tax rate of 21% and an estimated state income tax rate, where applicable, net of the impacts related to dividends-received deduction and foreign tax credits and any other permanent differences for events recognized differently in the consolidated financial statements and federal income tax returns.

We do not report total assets by segment because this is not a metric used by the CODM to allocate resources or evaluate segment performance.

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The tables below reconcile our internal measure of performance to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** |
| | **Annuities** | **Life Insurance** | **Group Protection** | **Retirement Plan Services** | **Other Operations** | **Total** |
| **Operating Revenues** <sup>(1)</sup> | $1130 | $1218 | $1486 | $328 | $35 | $4197 |
| **Operating Expenses** <sup>(2)</sup> |  |  |  |  |  |  |
| Benefits and policyholder liability |  |  |  |  |  |  |
| remeasurement (gain) loss | 30 | 626 | 910 | – | 4 | 1570 |
| Interest credited | 439 | 222 | 1 | 174 | 13 | 849 |
| Commissions | 292 | 90 | 126 | 28 | – | 536 |
| General and administrative expenses | 126 | 131 | 227 | 83 | 35 | 602 |
| Interest and debt expense | – | – | – | – | 40 | 40 |
| Other <sup>(3)</sup> | (13) | 83 | 36 | 4 | – | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 874 | 1152 | 1300 | 289 | 92 | 3707 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total federal income tax expense (benefit) | 34 | 8 | 39 | 5 | (13) | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income (loss) from operations | 222 | 58 | 147 | 34 | (44) | 417 |
| Reconciliation of total income (loss) from |  |  |  |  |  |  |
| operations to net income (loss): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net annuity product features, pre-tax <sup>(4)</sup> |  |  |  |  |  | 721 |
| &nbsp;&nbsp;&nbsp;Net life insurance product features, pre-tax |  |  |  |  |  | (57) |
| &nbsp;&nbsp;&nbsp;Credit loss-related adjustments, pre-tax |  |  |  |  |  | (25) |
| &nbsp;&nbsp;&nbsp;Investment gains (losses), pre-tax |  |  |  |  |  | (81) |
| &nbsp;&nbsp;&nbsp;Changes in the fair value of |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;reinsurance-related embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives, trading securities and |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;certain mortgage loans, pre-tax <sup>(5)</sup> |  |  |  |  |  | (55) |
| &nbsp;&nbsp;&nbsp;GLB rider fees ceded to LNBAR, pre-tax |  |  |  |  |  | (237) |
| &nbsp;&nbsp;&nbsp;Other items, pre-tax <sup>(6)(7)(8)</sup> |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (expense) related to |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the above pre-tax items |  |  |  |  |  | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net income (loss) |  |  |  |  |  | $627 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Other operating expenses include:

Annuities: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and letters of credit ("LOCs") and amortization of deferred loss on business sold through reinsurance.

Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; amortization of deferred loss on business sold through reinsurance; expenses associated with reserve financing and LOCs and other intangible amortization.

Group Protection: DAC capitalization and amortization; taxes, licenses and fees; other intangible amortization; expenses associated with LOCs and amortization of deferred loss on business sold through reinsurance.

Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs.

Other Operations: Taxes, licenses and fees; DAC capitalization and amortization and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes changes in MRBs of $443 million; income allocated to support the cost of hedging or future benefits of $166 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $112 million.

<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes primarily changes in the fair value of embedded derivatives related to affiliate reinsurance transactions. For more information, see [Note 7](#id1b96fe37c7f4484b056a1b831bae437_160).

<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes severance expense related to initiatives to realign the workforce of $(2) million.

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<sup>(7)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $2 million related to the sale of the wealth management business.

<sup>(8)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes deferred compensation mark-to-market adjustment of $1 million.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| | **Annuities** | **Life Insurance** | **Group Protection** | **Retirement Plan Services** | **Other Operations** | **Total** |
| **Operating Revenues** <sup>(1)</sup> | $1141 | $1318 | $(3051) | $323 | $34 | $(235) |
| **Operating Expenses** <sup>(2)</sup> |  |  |  |  |  |  |
| Benefits and policyholder liability |  |  |  |  |  |  |
| remeasurement (gain) loss | 39 | 717 | (3583) | – | 1 | (2826) |
| Interest credited | 378 | 227 | 1 | 168 | 7 | 781 |
| Commissions | 524 | 107 | 113 | 26 | – | 770 |
| General and administrative expenses | 235 | 138 | 226 | 83 | 45 | 727 |
| Interest and debt expense | – | – | – | – | 48 | 48 |
| Other <sup>(3)</sup> | (329) | 36 | 28 | 4 | 1 | (260) |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 847 | 1225 | (3215) | 281 | 102 | (760) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total federal income tax expense (benefit) | 42 | 14 | 35 | 5 | (14) | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income (loss) from operations | 252 | 79 | 129 | 37 | (54) | 443 |
| Reconciliation of total income (loss) from |  |  |  |  |  |  |
| operations to net income (loss) <sup>(4)</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net annuity product features, pre-tax <sup>(5)</sup> |  |  |  |  |  | 414 |
| &nbsp;&nbsp;&nbsp;Net life insurance product features, pre-tax |  |  |  |  |  | (14) |
| &nbsp;&nbsp;&nbsp;Credit loss-related adjustments, pre-tax |  |  |  |  |  | (33) |
| &nbsp;&nbsp;&nbsp;Investment gains (losses), pre-tax |  |  |  |  |  | (204) |
| &nbsp;&nbsp;&nbsp;Changes in the fair value of |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;reinsurance-related embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives, trading securities and |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;certain mortgage loans, pre-tax <sup>(6)</sup> |  |  |  |  |  | 43 |
| &nbsp;&nbsp;&nbsp;GLB rider fees ceded to LNBAR, pre-tax |  |  |  |  |  | (232) |
| &nbsp;&nbsp;&nbsp;Gains (losses) on other non-financial assets – |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;sale of subsidiaries/businesses, pre-tax <sup>(7)</sup> |  |  |  |  |  | 481 |
| &nbsp;&nbsp;&nbsp;Other items, pre-tax <sup>(8)(9)</sup> |  |  |  |  |  | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (expense) related to |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the above pre-tax items |  |  |  |  |  | (114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net income (loss) |  |  |  |  |  | $761 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Other operating expenses include:

Annuities: DAC and VOBA capitalization and amortization; broker-dealer expenses; taxes, licenses and fees and expenses associated with reserve financing and LOCs.

Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and other intangible amortization.

Group Protection: DAC capitalization and amortization; taxes, licenses and fees; other intangible amortization and expenses associated with LOCs.

Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs.

Other Operations: Taxes, licenses and fees and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The prior period presentation was recast to conform to the revised definition of income (loss) from operations.

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<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes changes in MRBs of $167 million; income allocated to support the cost of hedging or future benefits of $171 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $76 million.

<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes primarily changes in the fair value of embedded derivatives related to affiliate reinsurance transactions. For more information, see [Note 7](#id1b96fe37c7f4484b056a1b831bae437_160).

<sup>(7)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Relates to the sale of the wealth management business.

<sup>(8)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes severance expense related to initiatives to realign the workforce of $(7) million.

<sup>(9)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(16) million primarily related to the sale of the wealth management business.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** |
| | **Annuities** | **Life Insurance** | **Group Protection** | **Retirement Plan Services** | **Other Operations** | **Total** |
| **Operating Revenues** <sup>(1)</sup> | $2249 | $2429 | $2957 | $651 | $77 | $8363 |
| **Operating Expenses** <sup>(2)</sup> |  |  |  |  |  |  |
| Benefits and policyholder liability |  |  |  |  |  |  |
| remeasurement (gain) loss | 57 | 1357 | 1895 | – | 6 | 3315 |
| Interest credited | 859 | 442 | – | 344 | 27 | 1672 |
| Commissions | 590 | 178 | 253 | 55 | – | 1076 |
| General and administrative expenses | 251 | 260 | 449 | 168 | 83 | 1211 |
| Interest and debt expense | – | – | – | – | 80 | 80 |
| Other <sup>(3)</sup> | (25) | 176 | 65 | 11 | – | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1732 | 2413 | 2662 | 578 | 196 | 7581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total federal income tax expense (benefit) | 68 | (11) | 62 | 8 | (20) | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income (loss) from operations | 449 | 27 | 233 | 65 | (99) | 675 |
| Reconciliation of total income (loss) from |  |  |  |  |  |  |
| operations to net income (loss): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net annuity product features, pre-tax <sup>(4)</sup> |  |  |  |  |  | 256 |
| &nbsp;&nbsp;&nbsp;Net life insurance product features, pre-tax |  |  |  |  |  | (36) |
| &nbsp;&nbsp;&nbsp;Credit loss-related adjustments, pre-tax |  |  |  |  |  | (53) |
| &nbsp;&nbsp;&nbsp;Investment gains (losses), pre-tax |  |  |  |  |  | (44) |
| &nbsp;&nbsp;&nbsp;Changes in the fair value of |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;reinsurance-related embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives, trading securities and |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;certain mortgage loans, pre-tax <sup>(5)</sup> |  |  |  |  |  | (233) |
| &nbsp;&nbsp;&nbsp;GLB rider fees ceded to LNBAR, pre-tax |  |  |  |  |  | (469) |
| &nbsp;&nbsp;&nbsp;Other items, pre-tax <sup>(6)(7)(8)</sup> |  |  |  |  |  | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (expense) related to |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the above pre-tax items |  |  |  |  |  | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net income (loss) |  |  |  |  |  | $188 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Other operating expenses include:

Annuities: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and amortization of deferred loss on business sold through reinsurance.

Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; amortization of deferred loss on business sold through reinsurance; expenses associated with reserve financing and LOCs and other intangible amortization.

Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization; expenses associated with LOCs and amortization of deferred loss on business sold through reinsurance.

Retirement Plan Services: Taxes, licenses and fees; DAC capitalization and amortization and expenses associated with LOCs.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

Other Operations: Taxes, licenses and fees; DAC capitalization and amortization and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes changes in MRBs of $(176) million; income allocated to support the cost of hedging or future benefits of $346 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $86 million.

<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes primarily changes in the fair value of embedded derivatives related to affiliate reinsurance transactions. For more information, see [Note 7](#id1b96fe37c7f4484b056a1b831bae437_160).

<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes severance expense related to initiatives to realign the workforce of $(8) million.

<sup>(7)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(18) million related to the sale of the wealth management business.

<sup>(8)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes deferred compensation mark-to-market adjustment of $(5) million.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| | **Annuities** | **Life Insurance** | **Group Protection** | **Retirement Plan Services** | **Other Operations** | **Total** |
| **Operating Revenues** <sup>(1)</sup> | $2319 | $2498 | $(1626) | $640 | $59 | $3890 |
| **Operating Expenses** <sup>(2)</sup> |  |  |  |  |  |  |
| Benefits and policyholder liability |  |  |  |  |  |  |
| remeasurement (gain) loss | 66 | 1454 | (2620) | – | 1 | (1099) |
| Interest credited | 731 | 449 | 2 | 335 | 16 | 1533 |
| Commissions | 524 | 218 | 222 | 49 | – | 1013 |
| General and administrative expenses | 235 | 279 | 435 | 168 | 83 | 1200 |
| Interest and debt expense | – | – | – | – | 96 | 96 |
| Other <sup>(3)</sup> | 191 | 75 | 71 | 9 | 1 | 347 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 1747 | 2475 | (1890) | 561 | 197 | 3090 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total federal income tax expense (benefit) | 97 | (5) | 55 | 10 | (24) | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income (loss) from operations | 475 | 28 | 209 | 69 | (114) | 667 |
| Reconciliation of total income (loss) from |  |  |  |  |  |  |
| operations to net income (loss) <sup>(4)</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net annuity product features, pre-tax <sup>(5)</sup> |  |  |  |  |  | 1411 |
| &nbsp;&nbsp;&nbsp;Net life insurance product features, pre-tax |  |  |  |  |  | (146) |
| &nbsp;&nbsp;&nbsp;Credit loss-related adjustments, pre-tax |  |  |  |  |  | (33) |
| &nbsp;&nbsp;&nbsp;Investment gains (losses), pre-tax |  |  |  |  |  | (260) |
| &nbsp;&nbsp;&nbsp;Changes in the fair value of |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;reinsurance-related embedded |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;derivatives, trading securities and |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;certain mortgage loans, pre-tax <sup>(6)</sup> |  |  |  |  |  | 90 |
| &nbsp;&nbsp;&nbsp;GLB rider fees ceded to LNBAR, pre-tax |  |  |  |  |  | (462) |
| &nbsp;&nbsp;&nbsp;Gains (losses) on other non-financial assets – |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;sale of subsidiaries/businesses, pre-tax <sup>(7)</sup> |  |  |  |  |  | 481 |
| &nbsp;&nbsp;&nbsp;Other items, pre-tax <sup>(8)(9)(10)(11)</sup> |  |  |  |  |  | (94) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (expense) related to |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the above pre-tax items |  |  |  |  |  | (236) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net income (loss) |  |  |  |  |  | $1418 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Other operating expenses include:

Annuities: DAC and VOBA capitalization and amortization; broker-dealer expenses; taxes, licenses and fees and expenses associated with reserve financing and LOCs.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and other intangible amortization.

Group Protection: DAC capitalization and amortization; taxes, licenses and fees; other intangible amortization and expenses associated with LOCs.

Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs.

Other Operations: Reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs and taxes, licenses and fees.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The prior period presentation was recast to conform to the revised definition of income (loss) from operations.

<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes changes in MRBs of $863 million; income allocated to support the cost of hedging or future benefits of $330 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $218 million.

<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes primarily changes in the fair value of embedded derivatives related to affiliate reinsurance transactions. For more information, see [Note 7](#id1b96fe37c7f4484b056a1b831bae437_160).

<sup>(7)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Relates to the sale of the wealth management business. 

<sup>(8)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes certain legal accruals of $(3) million.

<sup>(9)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes severance expense related to initiatives to realign the workforce of $(56) million.

<sup>(10)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(27) million primarily related to the sale of the wealth management business.

<sup>(11)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes deferred compensation mark-to-market adjustment of $(8) million.

The tables below reconcile our total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** |
| | **Annuities** | **Life Insurance** | **Group Protection** | **Retirement Plan Services** | **Other Operations** | **Total** |
| Operating revenues | $1130 | $1218 | $1486 | $328 | $35 | $4197 |
| Revenue adjustments from annuity and life |  |  |  |  |  |  |
| insurance product features | 278 | (65) | – | – | – | 213 |
| Credit loss-related adjustments | (2) | (2) | – | (7) | (14) | (25) |
| Investment gains (losses) | 9 | (15) | – | (3) | (72) | (81) |
| Changes in the fair value of reinsurance- |  |  |  |  |  |  |
| related embedded derivatives, trading |  |  |  |  |  |  |
| securities and certain mortgage loans | (27) | (7) | (16) | – | (5) | (55) |
| GLB rider fees ceded to LNBAR | (237) | – | – | – | – | (237) |
| &nbsp;&nbsp;&nbsp;Total revenues | $1151 | $1129 | $1470 | $318 | $(56) | $4012 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| | **Annuities** | **Life Insurance** | **Group Protection** <sup>(1)</sup> | **Retirement Plan Services** | **Other Operations** | **Total** |
| Operating revenues | $1141 | $1318 | $(3051) | $323 | $34 | $(235) |
| Revenue adjustments from annuity and life |  |  |  |  |  |  |
| insurance product features | 245 | (21) | – | – | – | 224 |
| Credit loss-related adjustments | (18) | 7 | – | (13) | (9) | (33) |
| Investment gains (losses) | (23) | 5 | (7) | (61) | (118) | (204) |
| Changes in the fair value of reinsurance- |  |  |  |  |  |  |
| related embedded derivatives, trading |  |  |  |  |  |  |
| securities and certain mortgage loans | 32 | 11 | – | – | – | 43 |
| GLB rider fees ceded to LNBAR | (232) | – | – | – | – | (232) |
| Gains (losses) on other non-financial assets – |  |  |  |  |  |  |
| sale of subsidiaries/businesses | – | – | – | – | 481 | 481 |
| &nbsp;&nbsp;&nbsp;Total revenues | $1145 | $1320 | $(3058) | $249 | $388 | $44 |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Reflects day one impacts pertaining to the second quarter 2024 reinsurance transaction. For more information, see [Note](#id1b96fe37c7f4484b056a1b831bae437_160)[7](#id1b96fe37c7f4484b056a1b831bae437_160).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** |
| | **Annuities** | **Life Insurance** | **Group Protection** | **Retirement Plan Services** | **Other Operations** | **Total** |
| Operating revenues | $2249 | $2429 | $2957 | $651 | $77 | $8363 |
| Revenue adjustments from annuity and life |  |  |  |  |  |  |
| insurance product features | 432 | (47) | – | – | – | 385 |
| Credit loss-related adjustments | (19) | (1) | (2) | (9) | (22) | (53) |
| Investment gains (losses) | 7 | 12 | 1 | (6) | (58) | (44) |
| Changes in the fair value of reinsurance- |  |  |  |  |  |  |
| related embedded derivatives, trading |  |  |  |  |  |  |
| securities and certain mortgage loans | (121) | (43) | (52) | – | (17) | (233) |
| GLB rider fees ceded to LNBAR | (469) | – | – | – | – | (469) |
| &nbsp;&nbsp;&nbsp;Total revenues | $2079 | $2350 | $2904 | $636 | $(20) | $7949 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| | **Annuities** | **Life Insurance** | **Group Protection** <sup>(1)</sup> | **Retirement Plan Services** | **Other Operations** | **Total** |
| Operating revenues | $2319 | $2498 | $(1626) | $640 | $59 | $3890 |
| Revenue adjustments from annuity and life |  |  |  |  |  |  |
| insurance product features | 548 | (154) | – | – | – | 394 |
| Credit loss-related adjustments | (22) | 12 | – | (12) | (11) | (33) |
| Investment gains (losses) | (2) | (1) | (7) | (66) | (184) | (260) |
| Changes in the fair value of reinsurance- |  |  |  |  |  |  |
| related embedded derivatives, trading |  |  |  |  |  |  |
| securities and certain mortgage loans | 66 | 23 | – | – | 1 | 90 |
| GLB rider fees ceded to LNBAR | (461) | – | – | (1) | – | (462) |
| Gains (losses) on other non-financial assets – |  |  |  |  |  |  |
| sale of subsidiaries/businesses | – | – | – | – | 481 | 481 |
| &nbsp;&nbsp;&nbsp;Total revenues | $2448 | $2378 | $(1633) | $561 | $346 | $4100 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Reflects day one impacts pertaining to the second quarter 2024 reinsurance transaction. For more information, see [Note 7](#id1b96fe37c7f4484b056a1b831bae437_160).

Other business segment and Other Operations information (in millions) was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Investment Income** |  |  |  |  |
| Annuities | $502 | $455 | $997 | $871 |
| Life Insurance | 495 | 423 | 972 | 891 |
| Group Protection | 92 | 88 | 178 | 172 |
| Retirement Plan Services | 250 | 245 | 499 | 485 |
| Other Operations | 22 | 21 | 56 | 37 |
| &nbsp;&nbsp;Total net investment income | $1361 | $1232 | $2702 | $2456 |

---

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

**16. Realized Gain (Loss)**

Realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, VUL derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance-related embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is also net of allocations of investment gains and losses to certain policyholders, certain funds withheld on reinsurance arrangements and certain modified coinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Fixed maturity AFS securities: |  |  |  |  |
| Gross gains | $3 | $9 | $7 | $16 |
| Gross losses | (56) | (120) | (64) | (178) |
| Credit loss benefit (expense) <sup>(1)</sup> | (19) | (23) | (47) | (25) |
| Realized gain (loss) on equity securities <sup>(2)</sup> | 4 | 1 | (1) | 12 |
| Credit loss benefit (expense) on mortgage loans on |  |  |  |  |
| real estate <sup>(1)</sup> | (8) | (17) | (10) | (17) |
| Credit loss benefit (expense) on reinsurance-related assets | 3 | 7 | 5 | 9 |
| Realized gain (loss) on the mark-to-market on certain |  |  |  |  |
| instruments <sup>(3)(4)</sup> | (157) | (68) | (297) | (201) |
| Indexed product derivative results <sup>(5)</sup> | 67 | 77 | (1) | 222 |
| GLB rider fees ceded to LNBAR and attributed fees | (37) | (31) | (70) | (61) |
| Realized gain (loss) on subsidiaries/businesses <sup>(6)</sup> | – | 481 | – | 481 |
| Other realized gain (loss) | 38 | (33) | 69 | (32) |
| &nbsp;&nbsp;&nbsp;Total realized gain (loss) | $(162) | $283 | $(409) | $226 |

---

<sup>(1)</sup> Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events.

<sup>(2)</sup> Includes mark-to-market adjustments on equity securities still held of $4 million for the three months ended June 30, 2025 and 2024, and $7 million and $16 million for the six months ended June 30, 2025 and 2024, respectively.

<sup>(3)</sup> Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities.

<sup>(4)</sup> Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $(1) million and $3 million for the three months ended June 30, 2025 and 2024, respectively, and $(2) million and $3 million for the six months ended June 30, 2025 and 2024, respectively.

<sup>(5)</sup> Represents the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts, and the associated index options to hedge policyholder index allocations applicable to future reset periods for our indexed annuity products.

<sup>(6)</sup> Relates to the sale of the wealth management business.

**17. Federal Income Taxes**

The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 17% and (13)% for the three and six months ended June 30, 2025, respectively, compared to 18% and 19%, respectively, for the corresponding periods in 2024. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21% due to benefits from preferential tax items including the separate account dividends-received deduction and tax credits.

For the three months ended June 30, 2025, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of preferential tax items.

For the six months ended June 30, 2025, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to preferential tax items exceeding the tax expense at 21% on pre-tax income.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

For the three and six months ended June 30, 2024, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of preferential tax items.

**18. Supplemental Disclosures of Cash Flow Data**

The following summarizes our supplemental cash flow data (in millions):

---

| | | |
|:---|:---|:---|
| | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** |
| Non-cash transactions: |  |  |
| &nbsp;&nbsp;Establishment of funds withheld liability in connection with a reinsurance transaction | $(6) | $(6797) |
| &nbsp;&nbsp;Extraordinary dividend to LNC in the form of fixed maturity AFS securities, |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;mortgage loans on real estate and accrued investment income | – | (929) |
| &nbsp;&nbsp;Net increase (decrease) in fixed maturity AFS securities and accrued investment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;income in connection with reinsurance activity | (8) | 287 |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

***Item 2.* Management's Narrative Analysis of the Results of Operations**

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| | |
|:---|:---|
| | **Page** |
| <u>[Forward-Looking Statements – Cautionary Language](#id1b96fe37c7f4484b056a1b831bae437_82)</u> | [76](#id1b96fe37c7f4484b056a1b831bae437_82) |
| <u>[Summary of Critical Accounting Estimates](#id1b96fe37c7f4484b056a1b831bae437_88)</u> | [77](#id1b96fe37c7f4484b056a1b831bae437_88) |
| <u>[Results of Consolidated Operations](#id1b96fe37c7f4484b056a1b831bae437_91)</u> | [81](#id1b96fe37c7f4484b056a1b831bae437_91) |
| <u>[Results of Annuities](#id1b96fe37c7f4484b056a1b831bae437_97)</u> | [83](#id1b96fe37c7f4484b056a1b831bae437_97) |
| <u>[Results of Life Insurance](#id1b96fe37c7f4484b056a1b831bae437_94)</u> | [85](#id1b96fe37c7f4484b056a1b831bae437_94) |
| <u>[Results of Group Protection](#id1b96fe37c7f4484b056a1b831bae437_100)</u> | [86](#id1b96fe37c7f4484b056a1b831bae437_100) |
| <u>[Results of Retirement Plan Services](#id1b96fe37c7f4484b056a1b831bae437_103)</u> | [87](#id1b96fe37c7f4484b056a1b831bae437_103) |
| <u>[Results of Other Operations](#id1b96fe37c7f4484b056a1b831bae437_106)</u> | [88](#id1b96fe37c7f4484b056a1b831bae437_106) |
| <u>[Liquidity and Capital Resources](#id1b96fe37c7f4484b056a1b831bae437_112)</u> | [89](#id1b96fe37c7f4484b056a1b831bae437_112) |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

The following Management's Narrative Analysis of the Results of Operations ("MNA") is intended to help the reader understand the financial condition as of June 30, 2025, compared with December 31, 2024, and the results of operations for the three and six months ended June 30, 2025, compared with the corresponding periods in 2024 of The Lincoln National Life Insurance Company ("LNL") and its consolidated subsidiaries. Unless otherwise stated or the context otherwise requires, "LNL," "Company," "we," "our" or "us" refers to The Lincoln National Life Insurance Company and its consolidated subsidiaries. LNL is a wholly owned subsidiary of Lincoln National Corporation ("LNC"). The MNA is provided as a supplement to, and should be read in conjunction with, the consolidated financial statements and the accompanying notes to the consolidated financial statements ("Notes") presented in "Part I – Item 1. Financial Statements" and our Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Form 10-K").

MNA is presented pursuant to General Instructions H(2)(a) of Form 10-Q in lieu of Management's Discussion and Analysis of Financial Condition and Results of Operations.

See "Part I – Item 1. Business" in our 2024 Form 10-K and [Note 1](#id1b96fe37c7f4484b056a1b831bae437_139) herein for a description of the business.

In this report, in addition to providing consolidated net income (loss), we also provide income (loss) from operations because we believe it is a meaningful measure of the profitability of our business segments and Other Operations. Income (loss) from operations is the financial performance measure we use to evaluate and assess the results of our segments and Other Operations. Accordingly, we define and report income (loss) from operations by segment in [Note 15](#id1b96fe37c7f4484b056a1b831bae437_199). Our management believes that income (loss) from operations explains the results of our ongoing businesses in a manner that allows for a better understanding of the underlying trends in and performance of our current businesses. Certain items are excluded from income (loss) from operations because they are not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments.

**FORWARD-LOOKING STATEMENTS** – **CAUTIONARY LANGUAGE**

Certain statements made in this report and in other written or oral statements made by us or on our behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: "anticipate," "believe," "estimate," "expect," "project," "shall," "will" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

• Weak general economic and business conditions that may affect demand for our products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience;

• Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition;

• Legislative, regulatory or tax changes that affect: the cost of, or demand for, our products; the required amount of reserves and/or surplus; our ability to conduct business; our affiliate reinsurance arrangements; and restrictions on the payment of revenue sharing and 12b-1 distribution fees;

• Changes in tax law or the interpretation of or application of existing tax laws that could impact our tax costs and the products that we sell;

• The impact of regulations adopted by the Securities and Exchange Commission ("SEC"), the Department of Labor or other federal or state regulators or self-regulatory organizations that could adversely affect our distribution model and sales of our products and result in additional disclosure and other requirements related to the sale and delivery of our products;

• The impact of new and emerging rules, laws and regulations relating to privacy, cybersecurity and artificial intelligence that may lead to increased compliance costs, reputation risk and/or changes in business practices;

• Increasing scrutiny and evolving expectations and regulations regarding environmental, social and governance matters that may adversely affect our reputation and our investment portfolio;

• Actions taken by reinsurers to raise rates on in-force business;

• Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products;

• Rapidly increasing or sustained high interest rates that may negatively affect our profitability, value of our investment portfolio and capital position and may cause policyholders to surrender annuity and life insurance policies, thereby causing realized investment losses;

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**<br>

• The impact of the implementation of the provisions of the European Market Infrastructure Regulation relating to the regulation of derivatives transactions;

• The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;

• A decline or continued volatility in the equity markets causing a reduction in the sales of our products; a reduction of asset-based fees that we charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefit riders, which are accounted for as market risk benefits ("MRBs"), of our variable annuity products;

• Ineffectiveness of our risk management policies and procedures;

• A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our products and in establishing related insurance reserves, which may reduce future earnings;

• Changes in accounting principles that may affect our consolidated financial statements;

• Lowering of one or more of our financial strength ratings;

• Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets;

• Interruption in or failure of the telecommunication, information technology or other operational systems of the Company or the third parties on whom we rely or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches in security of such systems;

• The effect of acquisitions and divestitures, including the inability to realize the anticipated benefits of acquisitions and dispositions of businesses and potential operating difficulties and unforeseen liabilities relating thereto, as well as the effect of restructurings, product withdrawals and other unusual items;

• The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives;

• The adequacy and collectability of reinsurance that we have obtained;

• Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for policyholder claims and adversely affect our businesses and the cost and availability of reinsurance;

• Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that we can charge for our products;

• The unknown effect on our businesses resulting from evolving market preferences and the changing demographics of our client base; and

• The unanticipated loss of key management or wholesalers.

The risks and uncertainties included here are not exhaustive. Our 2024 Form 10-K as well as other reports that we file with the SEC include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

We do not intend, and are under no obligation, to update any particular forward-looking statement included in this document. See "Part I – Item 1A. Risk Factors" in our 2024 Form 10-K for a discussion of certain risks relating to our business.

**SUMMARY OF CRITICAL ACCOUNTING ESTIMATES**

The MNA included in our 2024 Form 10-K contains a detailed discussion of our critical accounting estimates. The following information updates the "Summary of Critical Accounting Estimates" provided in our 2024 Form 10-K, and therefore, should be read in conjunction with that disclosure.

**Investments**

*Investment Valuation* 

For more information about the valuation of our financial instruments carried at fair value, see "Part II – Item 7. Management's Narrative Analysis of the Results of Operations – Summary of Critical Accounting Estimates – Investments – Investment Valuation" in our 2024 Form 10-K and [Note 12](#id1b96fe37c7f4484b056a1b831bae437_181) herein.

**Derivatives** 

Derivatives are primarily used for hedging purposes. We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk, basis risk, commodity risk and credit risk by entering into derivative transactions. We also purchase and issue financial instruments that contain embedded derivative instruments. See "Policyholder Account Balances" below for information on

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embedded derivatives. Assessing the effectiveness of hedging and evaluating the carrying values of the related derivatives often involve a variety of assumptions and estimates.

We carry our derivative instruments at fair value, which we determine through valuation techniques or models that use market data inputs or independent broker quotations. The fair values fluctuate from period to period due to the volatility of the valuation inputs, including but not limited to swap interest rates, interest and equity volatility and equity index levels, foreign currency forward and spot rates, credit spreads and correlations, some of which are significantly affected by economic conditions. The effect to revenue is reported in realized gain (loss) and such amount along with the associated federal income taxes is excluded from income (loss) from operations of our segments.

For more information on derivatives, see Note [1](#id1b96fe37c7f4484b056a1b831bae437_139) in our 2024 Form 10-K and [Note 5](#id1b96fe37c7f4484b056a1b831bae437_154) herein. For more information on market exposures associated with our derivatives, including sensitivities, see "Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our 2024 Form 10-K.

**Future Contract Benefits** 

Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims.

*Liability for Future Policy Benefits*

Liability for future policy benefits ("LFPB") represents the reserve amounts associated with non-participating traditional life insurance contracts and limited payment life-contingent annuity contracts that are calculated to meet the various policy and contract obligations as they mature. Establishing adequate reserves for our obligations to policyholders requires assumptions to be made that are intended to represent an estimation of experience for the period that policy benefits are payable. If actual experience is better than or equal to the assumptions, then reserves should be adequate to provide for future benefits and expenses. If experience is worse than the assumptions, additional reserves may be required. Significant assumptions include mortality rates, morbidity and policyholder behavior (e.g., persistency) and withdrawals. During the third quarter of each year, we conduct our comprehensive review of the actuarial assumptions to best estimate future premium and benefit cash flows ("cash flow assumptions") and projection models used in estimating these liabilities and update these assumptions as needed (excluding the claims settlement expense assumption that is locked-in at inception) in the calculation of the net premium ratio. We may also update these assumptions in other quarters as we become aware of information that is indicative of the need for such an update. In measuring our LFPB, we establish cohorts, which are groupings of long-duration contracts. On a quarterly basis, we retrospectively update the net premium ratio at the cohort level for actual experience. For all contract cohorts issued after January 1, 2021, interest is accrued on LFPB at the single-A interest rate on the contract cohort inception date. For contract cohorts issued prior to January 1, 2021, interest remains accruing at the original discount rate in effect on the contract cohort inception date due to the modified retrospective transition method. We also remeasure the LFPB using the single-A interest rate as of the end of each reporting period.

*Liability for Future Claims*

Future contract benefits include reserves for long-term life and disability claims associated with our Group Protection segment. These reserves use actuarial assumptions primarily based on claim termination rates, offsets for other insurance including social security and long-term disability incidence and severity assumptions. Such cash flow assumptions are subject to the comprehensive review process discussed above. We remeasure the liability for future claims using a single-A interest rate as of the end of each reporting period.

*Additional Liabilities for Other Insurance Benefits*

We previously issued UL-type contracts where we provided a secondary guarantee to the policyholder. The policy can remain in force, even if the base policy account balance is zero, as long as contractual secondary guarantee requirements have been met. These guaranteed benefits require an additional liability that is calculated based on the application of a benefit ratio (calculated as the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract). These secondary guarantees are reported within future contract benefits on the Consolidated Balance Sheets. The level and direction of the change in reserves will vary over time based on the emergence of the benefit ratio and the level of assessments associated with the contracts. Cash flow assumptions incorporated in a benefit ratio in measuring these additional liabilities for other insurance benefits include mortality rates, morbidity, policyholder behavior (e.g., persistency) and withdrawals based principally on generally accepted actuarial methods and assumptions. During the third quarter of each year, we conduct our comprehensive review of the cash flow assumptions and projection models used in estimating these liabilities and update these assumptions in the calculation of the benefit ratio. We may also update these assumptions in other quarters as we become aware of information that is indicative of the need for such an update.

For additional information on future contract benefits, see [Note 11](#id1b96fe37c7f4484b056a1b831bae437_175).

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**Market Risk Benefits**

MRBs are contracts or contract features that provide protection to the policyholder from other-than-nominal capital market risk and expose us to other-than-nominal capital market risk upon the occurrence of a specific event or circumstance, such as death, annuitization or periodic withdrawal. An MRB can be in either an asset or a liability position. Our MRB assets and MRB liabilities are reported at fair value separately on the Consolidated Balance Sheets.

We issue variable and fixed annuity contracts that may include various types of guaranteed living benefit ("GLB") and guaranteed death benefit ("GDB") riders that we have accounted for as MRBs. For contracts that contain multiple riders that qualify as MRBs, the MRBs are valued on a combined basis using an integrated model. We have entered into reinsurance agreements to cede certain GLB and GDB riders where the reinsurance agreements themselves are accounted for as MRBs or contain MRBs. We therefore record ceded MRB assets and ceded MRB liabilities associated with these reinsurance agreements. We report ceded MRBs associated with these reinsurance agreements in other assets or other liabilities on the Consolidated Balance Sheets.

The change in the fair value of MRB assets and liabilities is reported in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss), except for the portion attributable to the change in non-performance risk, which is recognized in other comprehensive income (loss) ("OCI"). The change in the fair value of ceded MRB assets and liabilities, including the changes in our counterparties' non-performance risks, is reported in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

MRBs are valued based on a stochastic projection of risk-neutral scenarios that incorporate a spread reflecting our non-performance risk. Ceded MRBs are valued based on a stochastic projection of risk-neutral scenarios that incorporate a spread reflecting our counterparties' non-performance risk. The scenario assumptions, at each valuation date, are those we view to be appropriate for a hypothetical market participant and include assumptions for capital markets, lapse, benefit utilization, mortality, risk margin and administrative expenses. These assumptions are based on a combination of historical data and actuarial judgments. The assumption for our own non-performance risk and our counterparties' non-performance risk for MRBs and ceded MRBs, respectively, are determined at each valuation date and reflect our risk and our counterparties' risks of not fulfilling the obligations of the underlying liability. The spread for the non-performance risk is added to the discount rates used in determining the fair value from the net cash flows. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop, we will continue to reassess our assumptions. During the third quarter of each year, we conduct our comprehensive review of the assumptions used in calculating the fair value of these MRBs and update these assumptions on a prospective basis as needed. We may also update these assumptions in other quarters as we become aware of information that is indicative of the need for such an update. For information on fair value inputs, see [Note 12](#id1b96fe37c7f4484b056a1b831bae437_181).

We cede a portion of these GLB and GDB features to Lincoln National Reinsurance Company (Barbados) Limited ("LNBAR") on a modified coinsurance basis. The modified coinsurance arrangement includes a hedging strategy designed to mitigate selected risk to LNBAR. The hedge program focuses on generating sufficient income to fund future claims with a goal of maximizing distributable earnings and explicitly protecting capital. This hedging strategy utilizes options and total return swaps on U.S.-based equity indices, and futures on U.S.-based and international equity indices, as well as interest rate futures, interest rate swaps and currency futures.

The hedging results do not impact LNL due to the modified coinsurance arrangement with LNBAR, as LNL cedes these derivative results to LNBAR. For additional information on MRBs, see [Note 8](#id1b96fe37c7f4484b056a1b831bae437_166).

**Policyholder Account Balances**

Policyholder account balances include the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability includes universal life insurance ("UL"), *MoneyGuard*<sup>®</sup>, variable universal life insurance ("VUL"), indexed universal life insurance ("IUL"), investment-type annuity (including registered index-linked annuities ("RILA"), individual and group fixed and fixed portion of variable annuities, fixed indexed deferred annuities and non-life contingent payout fixed annuities) and funding agreement products where account balances are equal to deposits plus interest credited less withdrawals, surrender charges, asset-based fees and policyholder administration charges (collectively known as "policyholder assessments"), as well as amounts representing the fair value of embedded derivative instruments associated with our fixed indexed annuity and IUL products. During the third quarter of each year, we conduct our comprehensive review of the assumptions and projection models underlying our reserves and embedded derivatives and update assumptions as needed. We may also update these assumptions in other quarters as we become aware of information that is indicative of the need for such an update.

Our indexed annuity and IUL contracts permit the holder to elect a fixed interest rate return or a return where interest credited to the contracts is linked to the performance of the S&P 500® Index or other indices. The value of the variable portion of the policyholder's account balance varies with the performance of the underlying variable funds chosen by the policyholder. Policyholders may elect to rebalance among the various accounts within the product at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing different participation rates, caps, spreads or specified rates,

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subject to contractual guarantees. We purchase and sell index options that are highly correlated to the portfolio allocation decisions of our policyholders, such that we are economically hedged with respect to equity returns for the current reset period. The mark-to-market of the options held generally offsets the change in value of the embedded derivative within the contract, both of which are recorded as a component of realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the Financial Accounting Standards Board *Accounting Standards Codification*<sup>TM</sup> require that we calculate fair values of index options we may purchase or sell in the future to hedge policyholder index allocations in future reset periods. These fair values represent an estimate of the cost of the options we will purchase or sell in the future, discounted back to the date of the balance sheet, using current market indicators of volatility and interest rates. Changes in the fair values of these liabilities are included as a component of realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). For more information on indexed product derivative results, see [Note 16](#id1b96fe37c7f4484b056a1b831bae437_202).

For additional information on the liability for policyholder account balances, see [Note 10](#id1b96fe37c7f4484b056a1b831bae437_172).

**Reinsurance Recoverables** 

Reinsurance recoverables are generally measured and recognized consistent with the assumptions and methodologies used to project the future performance of the underlying direct business as discussed in the "Future Contract Benefits" and "Policyholder Account Balances" sections above. During the third quarter of each year, we conduct our comprehensive review of the assumptions and projection models and update assumptions as needed. In addition, we consider the potential impact of counterparty credit risks related to the reinsurance recoverable by estimating an allowance for credit losses using a probability of loss model approach to estimate expected credit losses for reinsurance recoverables. For additional information on our allowance for credit losses on reinsurance-related assets, see Note 7 in our 2024 Form 10-K.

**Annual Assumption Review**

During the third quarter of each year, we conduct our comprehensive review of the assumptions and projection models used in estimating MRBs, our reserves and embedded derivatives. For more information on our comprehensive review, see Note 1 in our 2024 Form 10-K.

**Income Taxes**

Management uses certain assumptions and estimates in determining the income taxes payable or refundable for the current year, the deferred income tax assets and liabilities for items recognized differently in its financial statements from amounts shown on its income tax returns and the federal income tax expense. Determining these amounts requires analysis and interpretation of current tax laws and regulations. Management exercises judgment in evaluating the amount and timing of recognition of the resulting income tax assets and liabilities. These judgments and estimates are re-evaluated on a continual basis as regulatory and business factors change. Legislative changes to the Internal Revenue Code of 1986, as amended, modifications or new regulations, administrative rulings, or court decisions could increase or decrease our effective tax rate.

The application of GAAP requires us to evaluate the recoverability of our deferred tax assets and establish a valuation allowance, if necessary, to reduce our deferred tax asset to an amount that is more likely than not to be realizable. Judgment and the use of estimates are required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of existing temporary differences; the length of time carryovers can be utilized; and any future prudent and feasible tax planning strategies.

As of June 30, 2025, we had an approximate $1.3 billion deferred tax asset related to net unrealized losses on fixed maturity available-for-sale ("AFS") securities. In the assessment of the future realizability of this deferred tax asset, management concluded that its tax planning strategies, including holding these securities to recovery, were prudent and feasible as these unrealized losses were caused by factors other than credit loss, and we have the intent and ability to hold these securities to recovery and collect all of the contractual cash flows.

Although realization is not assured, management believes it is more likely than not that the deferred tax assets, will be realized.

For risks related to establishing a valuation allowance against our deferred tax assets, see "Part I – Item 1A. Risk Factors – Assumptions and Estimates – We may be required to recognize an impairment of our goodwill or to establish a valuation allowance against our deferred tax assets" in our 2024 Form 10-K.

For additional information on income taxes, see "Part II – Item 7. Management's Narrative Analysis of the Results of Operations – Introduction – Summary of Critical Accounting Estimates – Income Taxes" in our 2024 Form 10-K and [Note 17](#id1b96fe37c7f4484b056a1b831bae437_208) herein.

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**RESULTS OF CONSOLIDATED OPERATIONS**

Details underlying the consolidated results (in millions) were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended <br>June 30,** | **For the Three <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** <sup>(1)</sup> | **2025** | **2024** <sup>(1)</sup> |
| **Net Income (Loss)** |  |  |  |  |
| Income (loss) from operations: |  |  |  |  |
| &nbsp;&nbsp;Annuities | $222 | $252 | $449 | $475 |
| &nbsp;&nbsp;Life Insurance | 58 | 79 | 27 | 28 |
| &nbsp;&nbsp;Group Protection | 147 | 129 | 233 | 209 |
| &nbsp;&nbsp;Retirement Plan Services | 34 | 37 | 65 | 69 |
| &nbsp;&nbsp;Other Operations | (44) | (54) | (99) | (114) |
| Net annuity product features, pre-tax <sup>(2)</sup> | 721 | 414 | 256 | 1411 |
| Net life insurance product features, pre-tax | (57) | (14) | (36) | (146) |
| Credit loss-related adjustments, pre-tax | (25) | (33) | (53) | (33) |
| Investment gains (losses), pre-tax | (81) | (204) | (44) | (260) |
| Changes in the fair value of reinsurance-related |  |  |  |  |
| &nbsp;&nbsp;embedded derivatives, trading securities and |  |  |  |  |
| &nbsp;&nbsp;certain mortgage loans, pre-tax <sup>(3)</sup> | (55) | 43 | (233) | 90 |
| GLB rider fees ceded to LNBAR, pre-tax | (237) | (232) | (469) | (462) |
| Gains (losses) on other non-financial assets – sale of |  |  |  |  |
| &nbsp;&nbsp;subsidiaries/businesses, pre-tax <sup>(4)</sup> | – | 481 | – | 481 |
| Other items, pre-tax <sup>(5) (6) (7) (8)</sup> | 1 | (23) | (31) | (94) |
| Income tax benefit (expense) related to the |  |  |  |  |
| &nbsp;&nbsp;above pre-tax items | (57) | (114) | 123 | (236) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $627 | $761 | $188 | $1418 |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The prior period presentation was recast to conform to the revised definition of income (loss) from operations. See Note [1](#id1b96fe37c7f4484b056a1b831bae437_199)[5](#id1b96fe37c7f4484b056a1b831bae437_199)for additional information.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>For the three months ended June 30, 2025 and 2024, includes changes in MRBs of $443 million and $167 million, respectively; income allocated to support the cost of hedging or future benefits of $166 million and $171 million, respectively; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $112 million and $76 million, respectively. For the six months ended June 30, 2025 and 2024, includes changes in MRBs of $(176) million and $863 million, respectively; income allocated to support the cost of hedging or future benefits of $346 million and $330 million, respectively; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $86 million and $218 million, respectively.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes primarily changes in the fair value of embedded derivatives related to affiliate reinsurance transactions. For more information, see [Note 7](#id1b96fe37c7f4484b056a1b831bae437_160).

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>For information on the sale of the wealth management business, see Note 1 in our 2024 Form 10-K.

<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes certain legal accruals of $(3) million for the six months ended June 30, 2024.

<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes severance expense related to initiatives to realign the workforce of $(2) million and $(7) million for the three months ended June 30, 2025 and 2024, respectively, and $(8) million and $(56) million for the six months ended June 30, 2025 and 2024, respectively.

<sup>(7)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives primarily related to the sale of the wealth management business of $2 million and $(16) million for the three months ended June 30, 2025 and 2024, respectively, and $(18) million and $(27) million for the six months ended June 30, 2025 and 2024, respectively.

<sup>(8)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes deferred compensation mark-to-market adjustment of $1 million for the three months ended June 30, 2025, and $(5) million and $(8) million for the six months ended June 30, 2025 and 2024, respectively.

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*Comparison of the Three Months Ended June 30, 2025 to 2024*

Net income decreased due primarily to the following:

• Gain on other non-financial assets in 2024 due to the sale of the wealth management business.

• Unfavorable changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans in 2025 compared to favorable changes in 2024 driven by the fair value of embedded derivatives related to certain reinsurance arrangements.

• Lower income from operations in our Annuities and Life Insurance segments.

• Higher losses in net life insurance product features driven by change in the fair value of hedges associated with VUL products attributable to the impact of capital markets.

The decrease in net income was partially offset by the following:

• Higher gain in net annuity product features driven by the impact of capital markets.

• Lower investment losses driven by lower losses on fixed maturity AFS securities and derivative investments.

• Higher investment income on alternative investments.

• Improvement in our total loss ratio in our Group Protection segment.

*Comparison of the Six Months Ended June 30, 2025 to 2024* 

Net income decreased due primarily to the following:

• Lower gain in net annuity product features driven by the impact of capital markets.

• Gain on other non-financial assets in 2024 due to the sale of the wealth management business.

• Unfavorable changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans in 2025 compared to favorable changes in 2024 driven by the fair value of embedded derivatives related to certain reinsurance arrangements.

The decrease in net income was partially offset by the following:

• Lower investment losses driven by lower losses on derivative investments and fixed maturity AFS securities.

• Lower loss in net life insurance product features driven by change in the fair value of hedges associated with VUL products attributable to the impact of capital markets.

• Higher investment income on alternative investments.

• Improvement in our total loss ratio in our Group Protection segment.

We provide information about our business segments' and Other Operations' operating revenue and expense line items, key drivers of changes and historical details underlying the line items below. For factors that could cause actual results to differ materially from those set forth, see "Forward-Looking Statements – Cautionary Language" above and "Part I – Item 1A. Risk Factors" in our 2024 Form 10-K.

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**RESULTS OF ANNUITIES**

Details underlying the results for Annuities (in millions) were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating Revenues** |  |  |  |  |
| Insurance premiums <sup>(1)</sup> | $28 | $34 | $50 | $60 |
| Fee income | 526 | 539 | 1067 | 1072 |
| Net investment income | 526 | 485 | 1034 | 941 |
| Other revenues <sup>(2)</sup> | 50 | 83 | 98 | 246 |
| &nbsp;&nbsp;Total operating revenues | 1130 | 1141 | 2249 | 2319 |
| **Operating Expenses** |  |  |  |  |
| Benefits <sup>(1)</sup> | 35 | 37 | 63 | 64 |
| Interest credited | 439 | 378 | 859 | 731 |
| Policyholder liability remeasurement (gain) loss | (5) | 2 | (6) | 2 |
| Commissions and other expenses | 405 | 430 | 816 | 950 |
| &nbsp;&nbsp;Total operating expenses | 874 | 847 | 1732 | 1747 |
| Income (loss) from operations before taxes | 256 | 294 | 517 | 572 |
| Federal income tax expense (benefit) | 34 | 42 | 68 | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | $222 | $252 | $449 | $475 |

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<sup>(1)</sup> Insurance premiums include primarily our income annuities that have a corresponding offset in benefits. Benefits include primarily changes in income annuity reserves driven by insurance premiums.

<sup>(2)</sup> Consists primarily of revenues attributable to broker-dealer services, which are subject to market volatility and have a comparable offset in commissions and other expenses; and the net settlement related to certain reinsurance transactions, which has a corresponding offset in net investment income and interest credited. During the second quarter of 2024, LNC closed the sale of its wealth management business. For more information, see Note 1 in our 2024 Form 10-K.

*Comparison of the Three Months Ended June 30, 2025 to 2024*

Income from operations for this segment decreased due primarily to the following:

• Lower other revenues due to the 2024 reinsurance transaction.

• Lower net investment income, net of interest credited, which more than offset impacts from higher average general account balances and improving portfolio yields from the current interest rate environment. The lower net investment income, net of interest credited, was experienced in certain reinsured portfolios that have a corresponding increase in other revenues.

• Higher commissions and other expenses, net of broker-dealer expenses, driven by higher other costs pertaining to business operations and higher deferred acquisition costs ("DAC") amortization.

• Lower fee income driven by lower average daily separate account balances.

The decrease in income from operations was partially offset by policyholder liability remeasurement gain in 2025 compared to a loss in 2024 driven by more favorable experience on income annuities than expected.

*Comparison of the Six Months Ended June 30, 2025 to 2024*

Income from operations for this segment decreased due primarily to the following:

• Lower other revenues due to the 2024 reinsurance transaction.

• Lower net investment income, net of interest credited, which more than offset impacts from higher average general account balances, improving portfolio yields from the current interest rate environment. The lower net investment income, net of interest credited, was experienced in certain reinsured portfolios that have a corresponding increase in other revenues.

• Higher commissions and other expenses, net of broker-dealer expenses, driven by higher DAC amortization and higher other costs pertaining to business operations.

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The decrease in income from operations was partially offset by the following:

• Lower federal income tax expense due to unfavorable separate account dividends-received deduction true-ups in 2024.

• Policyholder liability remeasurement gain in 2025 compared to a loss in 2024 driven by more favorable experience on income annuities than expected.

*Additional Information*

Effective June 30, 2024, we entered into a reinsurance agreement with Lincoln Pinehurst Reinsurance Company (Bermuda) Limited ("LPINE"), a wholly owned subsidiary of LNC, to reinsure liabilities under certain blocks of in-force fixed annuities. See Note 7 for more information.

New deposits are an important component of net flows and key to our efforts to grow our business. Although deposits do not significantly affect current period income from operations, they can significantly impact future income from operations.

The other component of net flows relates to the retention of new business and account balances. An important measure of retention is the reduction in account balances caused by full surrenders, deaths and other contract benefits. These outflows as a percentage of average gross account balances were 11% for the three and six months ended June 30, 2025, and 10% and 11%, respectively, for the corresponding periods in 2024.

Our fixed annuities and RILA have discretionary fixed and indexed crediting rates that reset on an annual or periodic basis and may be subject to surrender charges. Our ability to retain these annuities will be subject to current competitive conditions at the time crediting rates for these products reset. We expect to manage the effects of spreads on near-term income from operations through portfolio management and, to a lesser extent, crediting rate actions, which assumes no significant changes in net flows or other changes that may cause interest rate spreads to differ from our expectations. For information on interest rate spreads and interest rate risk, see "Part I – Item 1A. Risk Factors – Market Conditions – Changes in interest rates and sustained low interest rates may cause interest rate spreads to decrease, impacting our profitability, and make it more challenging to meet certain statutory requirements," "Part I – Item 1A. Risk Factors – Market Conditions – Increases in interest rates and sustained high interest rates may negatively affect our profitability, capital position and the value of our investment portfolio and may also result in increased contract withdrawals and surrenders" and "Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk" in our 2024 Form 10-K.

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**RESULTS OF LIFE INSURANCE**

Details underlying the results for Life Insurance (in millions) were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating Revenues** |  |  |  |  |
| Insurance premiums <sup>(1)</sup> | $198 | $393 | $423 | $613 |
| Fee income | 502 | 506 | 1015 | 1013 |
| Net investment income | 465 | 391 | 889 | 818 |
| Other revenues <sup>(2)</sup> | 53 | 28 | 102 | 54 |
| Total operating revenues | 1218 | 1318 | 2429 | 2498 |
| **Operating Expenses** |  |  |  |  |
| Benefits | 594 | 702 | 1321 | 1380 |
| Interest credited | 222 | 227 | 442 | 449 |
| Policyholder liability remeasurement (gain) loss | 32 | 15 | 36 | 74 |
| Commissions and other expenses <sup>(2)</sup> | 304 | 281 | 614 | 572 |
| Total operating expenses | 1152 | 1225 | 2413 | 2475 |
| Income (loss) from operations before taxes | 66 | 93 | 16 | 23 |
| Federal income tax expense (benefit) | 8 | 14 | (11) | (5) |
| &nbsp;&nbsp;&nbsp;Income (loss) from operations | $58 | $79 | $27 | $28 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes term insurance premiums, which have a corresponding partial offset in benefits for changes in reserves.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>For information on amortization of deferred gain (loss) on business sold through reinsurance, see Note 1 in our 2024 Form 10-K.

*Comparison of the Three Months Ended June 30, 2025 to 2024*

Income from operations for this segment decreased due primarily to the following:

• Lower insurance premiums attributable to affiliate reinsurance activity.

• Higher policyholder liability remeasurement loss driven by more unfavorable actual to expected mortality experience within UL-type contracts with secondary guarantees.

The decrease in income from operations for this segment was partially offset by the following:

• Lower benefits driven by affiliate reinsurance activity and improved mortality for the block in aggregate due to lower claims incidence.

• Higher net investment income, net of interest credited, driven by higher investment income on alternative investments.

*Comparison of the Six Months Ended June 30, 2025 to 2024*

Income from operations for this segment decreased modestly as lower insurance premiums attributable primarily to affiliate reinsurance activity was almost entirely offset by the following:

• Higher net investment income, net of interest credited, driven by higher investment income on alternative investments.

• Lower benefits driven by affiliate reinsurance activity and improved mortality for the block in aggregate due to lower claims incidence.

• Lower policyholder liability remeasurement loss driven by more favorable actual to expected mortality experience within UL-type contracts with secondary guarantees.

*Additional Information*

Generally, we experience higher mortality in the first quarter of the year due to the seasonality of claims.

Generally, we have higher sales during the second half of the year with the fourth quarter being our strongest.

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For information on interest rate spreads and interest rate risk, see "Part I – Item 1A. Risk Factors – Market Conditions – Changes in interest rates and sustained low interest rates may cause interest rate spreads to decrease, impacting our profitability, and make it more challenging to meet certain statutory requirements," "Part I – Item 1A. Risk Factors – Market Conditions – Increases in interest rates and sustained high interest rates may negatively affect our profitability, capital position and the value of our investment portfolio and may also result in increased contract withdrawals and surrenders" and "Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk" in our 2024 Form 10-K.

**RESULTS OF GROUP PROTECTION**

Details underlying the results for Group Protection (in millions) were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating Revenues** |  |  |  |  |
| Insurance premiums | $1386 | $(3194) | $2766 | $(1909) |
| Net investment income | 92 | 88 | 178 | 172 |
| Other revenues <sup>(1)</sup> | 8 | 55 | 13 | 111 |
| &nbsp;&nbsp;Total operating revenues | 1486 | (3051) | 2957 | (1626) |
| **Operating Expenses** |  |  |  |  |
| Benefits | 977 | (3459) | 1996 | (2429) |
| Interest credited | 1 | 1 | – | 2 |
| Policyholder liability remeasurement (gain) loss | (67) | (124) | (101) | (191) |
| Commissions and other expenses | 389 | 367 | 767 | 728 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1300 | (3215) | 2662 | (1890) |
| Income (loss) from operations before taxes | 186 | 164 | 295 | 264 |
| Federal income tax expense (benefit) | 39 | 35 | 62 | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | $147 | $129 | $233 | $209 |

---

<sup>(1)</sup> Consists of revenue from third parties for administrative services performed, which has a corresponding partial offset in commissions and other expenses, and the ceded net investment income related to the 2024 reinsurance transaction. For more information on the reinsurance transaction, see "Additional Information" below.

*Comparison of the Three and Six Months Ended June 30, 2025 to 2024*

Income from operations for this segment increased due primarily to the following:

• Higher insurance premiums due to the 2024 reinsurance transaction, growth in business in force and persistency.

• Higher net investment income, net of interest credited, driven by growth in business in force.

The increase in income from operations was partially offset by the following:

• Lower other revenues due to the 2024 reinsurance transaction.

• Higher commissions and other expenses due to incentive compensation as a result of increased production performance.

• Higher benefits, net of policyholder liability remeasurement gain, due to the 2024 reinsurance transaction, less favorable claims experience than expected and growth in business in force, partially offset by lower incidence and claims severity in our life business and lower incidence in our disability business.

*Additional Information*

Effective June 30, 2024, we entered into a reinsurance agreement with LPINE, an affiliated reinsurer, to reinsure certain blocks of in-force group protection products. Insurance premiums and benefits for the three and six months ended June 30, 2024, reflect day one impacts of $4.5 billion attributable to the reinsurance agreements that had no income (loss) from operations effect. See [Note](#id1b96fe37c7f4484b056a1b831bae437_160)[7](#id1b96fe37c7f4484b056a1b831bae437_160) for more information.

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Our total loss ratio for the three and six months ended June 30, 2025, was 65.7% and 68.5%, respectively, compared to 70.1% and 72.5% for the corresponding periods in 2024 not including the day one impact of the second quarter 2024 reinsurance agreement discussed above. For information about the effect of the loss ratio sensitivity on our income (loss) from operations, see "Part II – Item 7. Management's Narrative Analysis of the Results of Operations – Results of Group Protection – Additional Information" in our 2024 Form 10-K.

Generally, we experience higher mortality in the first quarter of the year and higher disability claims in the fourth quarter of the year due to the seasonality of claims. Generally, we have higher sales during the fourth quarter of the year.

For information on the effects of current interest rates on our long-term disability claim reserves, see "Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk – Effect of Interest Rate Sensitivity" in our 2024 Form 10-K.

**RESULTS OF RETIREMENT PLAN SERVICES**

Details underlying the results for Retirement Plan Services (in millions) were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating Revenues** |  |  |  |  |
| Fee income | $71 | $70 | $141 | $139 |
| Net investment income | 250 | 245 | 499 | 485 |
| Other revenues <sup>(1)</sup> | 7 | 8 | 11 | 16 |
| &nbsp;&nbsp;Total operating revenues | 328 | 323 | 651 | 640 |
| **Operating Expenses** |  |  |  |  |
| Interest credited | 174 | 168 | 344 | 335 |
| Commissions and other expenses | 115 | 113 | 234 | 226 |
| &nbsp;&nbsp;Total operating expenses | 289 | 281 | 578 | 561 |
| Income (loss) from operations before taxes | 39 | 42 | 73 | 79 |
| Federal income tax expense (benefit) | 5 | 5 | 8 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | $34 | $37 | $65 | $69 |

---

<sup>(1)</sup> Consists primarily of mutual fund account program revenues from mid to large employers.

*Comparison of the Three Months Ended June 30, 2025 to 2024*

Income from operations for this segment decreased due primarily to the following:

• Higher commissions and other expenses driven by higher trail commissions resulting from higher average daily separate account balances.

• Lower net investment income, net of interest credited, driven by an increase in crediting rates, partially offset by impacts to portfolio yields from the current interest rate environment and higher investment income on surplus investments.

*Comparison of the Six Months Ended June 30, 2025 to 2024*

Income from operations for this segment decreased due primarily to the following:

• Higher commissions and other expenses driven by higher trail commissions resulting from higher average daily separate account balances.

• Lower other revenues due to a plan termination during the fourth quarter of 2024.

The decrease in income from operations was partially offset by the following:

• Higher net investment income, net of interest credited, driven by impacts to portfolio yields from the current interest rate environment and higher investment income on surplus investments, partially offset by an increase in crediting rates.

• Higher fee income driven by higher average daily separate account balances.

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*Additional Information*

Net flows in this business fluctuate based on the timing of larger plans being implemented and terminating over the course of the year.

New deposits are an important component of net flows and key to our efforts to grow our business. Although deposits do not significantly affect current period income from operations, they can significantly impact future income from operations. The other component of net flows relates to the retention of the business. An important measure of retention is the reduction in account balances caused by plan sponsor terminations and participant withdrawals. These outflows as a percentage of average account balances were 15% and 19% for the three and six months ended June 30, 2025, and 13% for the corresponding periods in 2024. The increase in the outflow rate for the six months ended June 30, 2025, was attributable primarily to a large plan termination during the first quarter of 2025.

Our net flows are negatively affected by the continued net outflows from our oldest blocks of annuities business, which are among our higher margin product lines in this segment, due to the fact that they are mature blocks with low distribution and servicing costs. The proportion of these products to our total account balances was 12% and 14% as of June 30, 2025 and 2024, respectively. Due to this overall shift in business mix toward products with lower returns, new deposit production continues to be necessary to maintain earnings at current levels.

Our fixed annuity business includes products with discretionary and index-based crediting rates that are reset on either a quarterly or semi-annual basis. Our ability to retain quarterly or semi-annual reset annuities will be subject to current competitive conditions at the time crediting rates for these products reset. We expect to manage the effects of spreads on near-term income from operations through portfolio management and, to a lesser extent, crediting rate actions, which assumes no significant changes in net flows into or out of our fixed accounts or other changes that may cause interest rate spreads to differ from our expectations. For information on interest rate spreads and interest rate risk, see "Part I – Item 1A. Risk Factors – Market Conditions – Changes in interest rates and sustained low interest rates may cause interest rate spreads to decrease, impacting our profitability, and make it more challenging to meet certain statutory requirements," "Part I – Item 1A. Risk Factors – Market Conditions – Increases in interest rates and sustained high interest rates may negatively affect our profitability, capital position and the value of our investment portfolio and may also result in increased contract withdrawals and surrenders" and "Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk" in our 2024 Form 10-K.

**RESULTS OF OTHER OPERATIONS**

Details underlying the results for Other Operations (in millions) were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three <br>Months Ended<br> June 30,** | **For the Three <br>Months Ended<br> June 30,** | **For the Six <br>Months Ended <br>June 30,** | **For the Six <br>Months Ended <br>June 30,** |
| | **2025** | **2024** <sup>(1)</sup> | **2025** | **2024** <sup>(1)</sup> |
| **Operating Revenues** |  |  |  |  |
| Net investment income <sup>(2)</sup> | 22 | 21 | 56 | 37 |
| Other revenues <sup>(3)</sup> | 13 | 13 | 21 | 22 |
| &nbsp;&nbsp;Total operating revenues | 35 | 34 | 77 | 59 |
| **Operating Expenses** |  |  |  |  |
| Benefits | 3 | – | 5 | 1 |
| Interest credited | 13 | 8 | 27 | 17 |
| Policyholder liability remeasurement (gain) loss | 1 | 1 | 1 | – |
| Other expenses | 35 | 45 | 83 | 83 |
| Interest and debt expense | 40 | 48 | 80 | 96 |
| &nbsp;&nbsp;Total operating expenses | 92 | 102 | 196 | 197 |
| Income (loss) from operations before taxes | (57) | (68) | (119) | (138) |
| Federal income tax expense (benefit) | (13) | (14) | (20) | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | $(44) | $(54) | $(99) | $(114) |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The prior period presentation was recast to conform to the revised definition of income (loss) from operations. See [Note 15](#id1b96fe37c7f4484b056a1b831bae437_199) for additional information.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes our institutional pension business, which has a corresponding offset in benefits for changes in reserves, and funding agreements, which has a partial offset in interest credited. For information on funding agreements, see [Note 10](#id1b96fe37c7f4484b056a1b831bae437_172).

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes certain third-party advisory fees, which has a partial offset in other expenses.

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*Comparison of the Three Months Ended June 30, 2025 to 2024*

Loss from operations for Other Operations decreased due primarily to the following:

• Lower other expenses associated with strategic initiatives.

• Lower interest and debt expense driven by a decline in average outstanding debt and interest rates.

• Higher other revenues due to the effect of market fluctuations on assets held as part of certain compensation plans*.* 

The decrease in loss from operations was partially offset by lower net investment income, net of interest credited, related to lower allocated investments driven by a decrease in excess capital retained by Other Operations.

*Comparison of the Six Months Ended June 30, 2025 to 2024*

Loss from operations for Other Operations decreased due primarily to the following:

• Higher net investment income, net of interest credited, related to higher allocated investments driven by an increase in excess capital retained by Other Operations.

• Lower interest and debt expense driven by a decline in average outstanding debt and interest rates.

• Lower other expenses associated with strategic initiatives.

**LIQUIDITY AND CAPITAL RESOURCES**

**Overview**

Liquidity refers to our ability to generate adequate amounts of cash from our normal operations to meet cash requirements with a prudent margin of safety. Capital refers to our long-term financial resources to support the operations of our businesses, to fund long-term growth strategies and to support our operations during adverse conditions. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of our businesses, general economic conditions and access to the capital markets and other sources of liquidity and capital as described below. When considering our liquidity, it is important to distinguish between our needs, the needs of Lincoln Life & Annuity Company of New York ("LLANY") and the needs of the holding company, LNC. As a holding company with no operations of its own, LNC derives its cash primarily from its operating subsidiaries. Disruptions, uncertainty or volatility in the capital and credit markets may materially affect our business operations and results of operations and may adversely affect our or LLANY's capital position.

Reductions to our or LLANY's capital position may cause us to retain more capital. This in turn may pressure our ability to receive dividends from LLANY or pay dividends to LNC, which may lead us to take steps to preserve or raise additional capital. We believe we and LLANY have appropriate capital to operate our business in accordance with our strategy. For more information, see "Statutory Capital and Surplus" below.

For factors that could cause actual results to differ materially from those set forth in this section and that could affect our expectations for liquidity and capital, see "Forward-Looking Statements – Cautionary Language" above and "Part I – Item 1A. Risk Factors" in our 2024 Form 10-K.

**Sources and Uses of Liquidity and Capital** 

Our primary sources of liquidity and capital are insurance premiums and fees, investment income, maturities and sales of investments, issuance of debt or other types of securities and policyholder deposits. We also have access to alternative sources of liquidity as discussed below. Our primary uses are to pay policy claims and benefits, to fund commissions and other general operating expenses, to purchase investments, to fund policy surrenders and withdrawals, to pay dividends to LNC and to repay debt. Our operating activities provided (used) cash of $640 million and $(1.7) billion for the six months ended June 30, 2025 and 2024, respectively. Cash flows from operating activities will fluctuate based on the timing of insurance premiums received and benefit payments to policyholders, as well as other business activities including cash payments on certain derivatives used to hedge exposure to product-related risks. We received capital contributions from LNC of $800 million for the three and six months ended June 30, 2025, compared to none for the corresponding periods in 2024. We paid cash dividends to LNC of $170 million and $400 million during the three and six months ended June 30, 2025, respectively, compared to $15 million and $195 million for the corresponding periods in 2024. During the second quarter of 2024, we made a $929 million extraordinary dividend in the form of investments to LNC. We also received dividends from our subsidiaries of $66 million and $236 million during the three and six months ended June 30, 2025, respectively, compared to $79 million and $256 million for the corresponding periods in 2024.

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*Statutory Capital and Surplus* 

We must maintain certain regulatory capital levels. We utilize the RBC ratio as a primary measure of our capital adequacy. The RBC ratio is an important factor in the determination of our financial strength ratings, and a reduction in our or LLANY's surplus will affect our RBC ratios and dividend-paying capacity. For additional information on RBC ratios, see "Part I – Item 1. Business – Regulatory – Insurance Regulation – Risk-Based Capital" in our 2024 Form 10-K.

Our regulatory capital levels are affected by statutory accounting rules, which are subject to change by each applicable insurance regulator. For instance, our term products and UL products containing secondary guarantees subject to the National Association of Insurance Commissioners ("NAIC") RBC framework require reserves calculated pursuant to the Valuation of Life Insurance Policies Model Regulation ("XXX") and Actuarial Guideline XXXVIII ("AG38"), respectively. We employ strategies to reduce the strain caused by XXX and AG38 by reinsuring the business to captive reinsurance subsidiaries or reinsurance affiliates. Our captive reinsurance subsidiaries and reinsurance affiliates provide a mechanism for financing a portion of the excess reserve amounts in a more efficient manner and free up capital we can use for any number of purposes, including paying dividends to LNC. We use long-dated letters of credit ("LOCs") and debt financing as well as other financing strategies to finance those reserves. For information on the LOCs, see the credit facilities table in Note 13 in our 2024 Form 10-K. Our captive reinsurance subsidiaries and reinsurance affiliates have also issued long-term notes to finance a portion of the excess reserves. For information on long-term notes issued by our captive reinsurance subsidiaries and reinsurance affiliates, see Note 4 in our 2024 Form 10-K. We have also used the proceeds from certain senior notes issued by LNC to execute long-term structured solutions primarily supporting reinsurance of term products and UL products containing secondary guarantees.

Statutory reserves for variable annuity guaranteed benefit riders and guaranteed benefits on VUL policies, as well as certain components of the NAIC RBC calculation that are impacted by such guaranteed benefits, are sensitive to changes in the equity markets and interest rates, and such statutory reserves and our RBC levels are also affected by the level of account balances relative to the level of any guarantees, product design and reinsurance arrangements. As a result, the relationship between reserve changes and equity market performance is non-linear during any given reporting period. We cede a portion of the variable annuity guaranteed benefit riders to LNBAR through a modified coinsurance agreement. The variable annuity hedge program mitigates the risk to LNBAR from guaranteed benefit riders and continues to focus on generating sufficient income to fund future claims with a goal of maximizing distributable earnings and explicitly protecting capital. We also use a partial hedge that mitigates potential capital volatility from guaranteed benefits on VUL policies. Market conditions greatly influence the ultimate capital required due to its effect on the valuation of reserves and supporting derivatives.

Changes in equity markets may also affect our capital position. We may decide to reallocate available capital among us and our insurance and captive reinsurance subsidiaries, which would result in different RBC ratios for us. In addition, changes in the equity markets can affect the value of our variable annuity and VUL separate accounts. When the market value of our separate account assets increases, the statutory surplus within us and LLANY also increases, all else equal. Contrarily, when the market value of our separate account assets decreases, the statutory surplus within us and LLANY also decreases, all else equal, which will affect RBC ratios, and in the case of our separate account assets becoming less than the related product liabilities, we must allocate additional capital to fund the difference.

During the second quarter of 2024, we entered into a coinsurance with funds withheld reinsurance agreement with LPINE. For more information, see Note 7.

*Debt*

For information about our short-term and long-term debt and our credit facilities, see Note 13 in our 2024 Form 10-K.

**Alternative Sources of Liquidity**

*Inter-Company Cash Management Program*

To meet short-term liquidity needs that arise in the ordinary course of business, we utilize an inter-company cash management program between LNC and participating subsidiaries whereby participating subsidiaries can borrow cash from or lend cash to LNC. Loans under the inter-company cash management program are permitted under applicable insurance laws subject to certain restrictions. LNL, domiciled in Indiana, is currently subject to a borrowing and lending limit of 3% of the insurance company's admitted assets as of its most recent year end. For our New York-domiciled insurance subsidiary, it may borrow from LNC less than 2% of its admitted assets as of its most recent year end but may not lend any amounts to LNC. As of June 30, 2025 and December 31, 2024, we had $173 million and $24 million, respectively, of outstanding borrowings from the cash management program reported in short-term debt on the Consolidated Balance Sheets. As of June 30, 2025 and December 31, 2024, we had $1.7 billion and $1.8 billion, respectively, of outstanding lending into the cash management program reported in other assets on the Consolidated Balance Sheets.

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*Federal Home Loan Bank*

LNL is a member of the Federal Home Loan Bank ("FHLB") of Indianapolis ("FHLBI"). Membership allows LNL access to the FHLBI's financial services, including the ability to obtain loans and to issue funding agreements as an alternative source of liquidity that are collateralized by qualifying mortgage-related assets, agency securities or U.S. Treasury securities. Borrowings under this facility are subject to the FHLBI's discretion and require the availability of qualifying assets at LNL. As of June 30, 2025, LNL had an estimated maximum borrowing capacity of $7.0 billion under the FHLBI facility and maximum available borrowing based on qualifying assets of $4.7 billion. As of June 30, 2025, LNL had outstanding borrowings of $2.9 billion under this facility reported within payables for collateral on investments on the Consolidated Balance Sheets. LLANY is a member of the Federal Home Loan Bank of New York ("FHLBNY") with an estimated maximum borrowing capacity of $750 million. Borrowings under this facility are subject to the FHLBNY's discretion and require the availability of qualifying assets at LLANY. As of June 30, 2025, LLANY had no outstanding borrowings under this facility. For additional information, see "Payables for Collateral on Investments" in [Note](#id1b96fe37c7f4484b056a1b831bae437_148)[3](#id1b96fe37c7f4484b056a1b831bae437_148).

*Repurchase Agreements and Securities Lending Programs*

We, LNBAR and LPINE had access to $2.6 billion through committed repurchase agreements, of which none was utilized as of June 30, 2025. LNL and LLANY, by virtue of their general account fixed-income investment holdings, can also access liquidity through securities lending programs and uncommitted repurchase agreements. As of June 30, 2025, we had securities pledged under securities lending agreements and uncommitted repurchase agreements with a carrying value of $155 million and $418 million, respectively. For additional information, see "Payables for Collateral on Investments" in [Note 3](#id1b96fe37c7f4484b056a1b831bae437_148).

*Collateral on Derivative Contracts*

Our cash flows associated with collateral received from counterparties (when we are in a net collateral payable position) and posted with counterparties (when we are in a net collateral receivable position) change as the market value of the underlying derivative contract changes. The net collateral position depends on changes in interest rates and equity markets related to the amount of the exposures hedged. As of June 30, 2025, we were in a net collateral payable position of $4.8 billion compared to $6.9 billion as of December 31, 2024. In the event of adverse changes in fair value of our derivative instruments, we may need to return, post or pledge collateral to counterparties. If we do not have sufficient high quality securities or cash to provide as collateral to counterparties, we have alternative sources of liquidity. In addition to the liquidity from repurchase agreements and FHLB facilities discussed above, we also have a five-year revolving credit facility discussed in Note 13 in our 2024 Form 10-K. For additional information, see "Credit Risk" in [Note](#id1b96fe37c7f4484b056a1b831bae437_154)5.

**Ratings**

*Financial Strength Ratings*

See "Part I – Item 1. Business – Financial Strength Ratings" in our 2024 Form 10-K for information on our financial strength ratings.

If LNL's current financial strength ratings or the credit ratings of LNC were downgraded in the future, terms in our derivative agreements or certain repurchase agreements may be triggered, which could negatively affect overall liquidity. For the majority of our derivative counterparties, there is a termination event if LNL's financial strength ratings drop below BBB-/Baa3 (S&P Global Ratings ("S&P")/Moody's Investor Service ("Moody's")). For certain repurchase agreements, there is a termination event if the long-term credit ratings of LNC drop below BBB-/Baa3 (S&P/Moody's) or our financial strength ratings drop below BBB+/Baa1 (S&P/Moody's). In addition, contractual selling agreements with intermediaries could be negatively affected, which could have an adverse effect on overall sales of annuities, life insurance and investment products.

See "Part I – Item 1A. Risk Factors – Covenants and Ratings – A downgrade in our financial strength ratings could limit our ability to market products, increase the number or value of policies being surrendered and/or hurt our relationships with creditors" in our 2024 Form 10-K for more information.

***Item 3.* Quantitative and Qualitative Disclosures About Market Risk** 

We analyze and manage the risks arising from market exposures of financial instruments, as well as other risks, in an integrated asset-liability management process that considers diversification. We have exposures to several market risks including interest rate risk, equity market risk, credit risk and, to a lesser extent, foreign currency exchange risk. For information on these market risks, see "Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our 2024 Form 10-K.

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***Item 4.* Controls and Procedures** 

**Conclusions Regarding Disclosure Controls and Procedures** 

We maintain disclosure controls and procedures, which are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to the Company's management, including our President (the principal executive officer) and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period required by this report, we, under the supervision and with the participation of our President and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act).

Based on that evaluation, our President and Chief Financial Officer have concluded that our disclosure controls and procedures are effective in timely alerting them to material information relating to us and our consolidated subsidiaries required to be disclosed in our periodic reports under the Exchange Act.

**Changes in Internal Control Over Financial Reporting**

There was no change in the Company's internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the quarter ended June 30, 2025, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

A control system, no matter how well designed and operated, can provide only reasonable assurance that the control system's objectives will be met. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. Projections of any evaluation of control effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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**PART II – OTHER INFORMATION**

***Item 1.* Legal Proceedings**

Reference is made to the lawsuits captioned *Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company*, *TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company* and *Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York*, each of which was previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Form 10-K"). On June 16, 2025, the court granted final approval of the *Glover* provisional settlement (which encompasses all policies at issue in *Glover* as well as in *TVPX ARS INC.*, *Vida* and one additional case to which an affiliate of LNL is a party, *Iwanski v. First Penn-Pacific Life Insurance Company*, which has been previously disclosed by our parent company, LNC*)* and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the *TVPX ARS INC.*, *Vida* and *Iwanski* cases appealed the final approval of the provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement is subject to the outcome of the appeal.

Reference is made to the lawsuit captioned *Conestoga Trust, et al, v. Lincoln National Corp., et al.*, previously disclosed in our 2024 Form 10-K and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. On April 2, 2025, we entered into an agreement with the plaintiffs in *Conestoga Trust* in full and final settlement of this matter, and the *Conestoga Trust* matter is now concluded.

Reference is made to the tax assessment proceeding captioned *Lincoln National Life Insurance Company v. Township of Radnor*, previously disclosed in our 2024 Form 10-K. On July 16, 2025, the court entered judgment in favor of LNL.

See [Note 13](#id1b96fe37c7f4484b056a1b831bae437_190) in "Part I – Item 1. Financial Statements" for further discussion regarding these matters and other contingencies.

***Item 1A.* Risk Factors**

In addition to the factors set forth in "Part I – Item 2. Management's Narrative Analysis of the Results of Operations – Forward-Looking Statements – Cautionary Language," you should carefully consider the risks described under "Part I – Item 1A. Risk Factors" in our 2024 Form 10-K. Such risks and uncertainties are not the only ones facing our Company. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations. If any of these risks actually occur, our business, financial condition and results of operations could be materially affected. In that case, the value of our securities could decline substantially.

***Item 2.* Unregistered Sales of Equity Securities and Use of Proceeds**

None

***Item 5.* Other Information**

**Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements**

All of the Company's common stock is held by Lincoln National Corporation. As such, during the six months ended June 30, 2025, none of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.

***Item 6.* Exhibits**

The Exhibits included in this report are listed in the Exhibit Index beginning on page [94](#id1b96fe37c7f4484b056a1b831bae437_549755815963), which is incorporated herein by reference.

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

**THE LINCOLN NATIONAL LIFE INSURANCE COMPANY**

**Exhibit Index for the Report on Form 10-Q** 

**For the Quarter Ended June 30, 2025**

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| | |
|:---|:---|
| [31.1](exhibit311-lnl10qx2q2025.htm) | [Certification of the President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit311-lnl10qx2q2025.htm)[.](exhibit311-lnl10qx2q2025.htm) |
| [31.2](exhibit312-lnl10qx2q2025.htm) | [Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](exhibit312-lnl10qx2q2025.htm) |
| [32.1](exhibit321-lnl10qx2q2025.htm) | [Certification of the President pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](exhibit321-lnl10qx2q2025.htm) |
| [32.2](exhibit322-lnl10qx2q2025.htm) | [Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](exhibit322-lnl10qx2q2025.htm) |
| 101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document. |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

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**<u>[**Table of Contents**](#id1b96fe37c7f4484b056a1b831bae437_7)</u>**

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
| | | **THE LINCOLN NATIONAL LIFE INSURANCE COMPANY** |
| Dated: August 7, 2025 | By: | /s/ Adam Cohen |
|  |  | **Adam Cohen<br>Senior Vice President, Chief Accounting Officer and Treasurer<br>(Authorized Signatory and Principal Accounting Officer)** |

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## Exhibit 31.1

**Exhibit 31.1**

**Certification Pursuant to Section 302 of the**

**Sarbanes-Oxley Act of 2002**

I, Ellen G. Cooper, President, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Lincoln National Life Insurance Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| Dated: August 7, 2025 | /s/ Ellen G. Cooper |
| | Name: Ellen G. Cooper |
| | Title: President |

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## Exhibit 31.2

**Exhibit 31.2**

**Certification Pursuant to Section 302 of the**

**Sarbanes-Oxley Act of 2002**

I, Christopher Neczypor, Executive Vice President and Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Lincoln National Life Insurance Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Dated: August 7, 2025 | /s/ Christopher Neczypor |
| | Name: Christopher Neczypor |
| | Title: Executive Vice President and Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification Pursuant to 18 U.S.C. Section 1350,** 

**As Adopted Pursuant to Section 906** 

**of the Sarbanes-Oxley Act of 2002**

Pursuant to 18 U.S.C. § 1350, the undersigned officer of The Lincoln National Life Insurance Company (the "Company"), hereby certifies that the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Dated: August 7, 2025 | /s/ Ellen G. Cooper |
| | Name: Ellen G. Cooper |
| | Title: President |

---

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required under Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

**Certification Pursuant to 18 U.S.C. Section 1350,** 

**As Adopted Pursuant to Section 906** 

**of the Sarbanes-Oxley Act of 2002**

Pursuant to 18 U.S.C. § 1350, the undersigned officer of The Lincoln National Life Insurance Company (the "Company"), hereby certifies that the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Dated: August 7, 2025 | /s/ Christopher Neczypor |
| | Name: Christopher Neczypor |
| | Title: Executive Vice President and Chief Financial Officer |

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The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required under Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

<br>