Lincoln National Life Insurance Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

c865-20200630x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________

FORM 10-Q

_________________

(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, 2020

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

For the transition period from ____________ to____________

Commission File Number: 000-55871

_________________

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

(Exact name of registrant as specified in its charter)

_________________



Indiana	35-0472300
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1300 South Clinton Street, Fort Wayne, Indiana	46802
(Address of principal executive offices)	(Zip Code)

(260) 455-2000

(Registrant’s telephone number, including area code)

_________________

Securities registered pursuant to Section 12(b) of the Act: None

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, 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 Section13(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 6, 2020, 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


Item		Page
PART I

1.	Financial Statements	1

2.	Management’s Narrative Analysis of the Results of Operations	53
	Forward-Looking Statements – Cautionary Language	53
	Introduction	54
	Critical Accounting Policies and Estimates	55
	Acquisitions and Dispositions	56
	Results of Consolidated Operations	57
	Results of Annuities	59
	Results of Retirement Plan Services	61
	Results of Life Insurance	63
	Results of Group Protection	64
	Results of Other Operations	65
	Realized Gain (Loss)	66
	Review of Consolidated Financial Condition	67
	Liquidity and Capital Resources	67

3.	Quantitative and Qualitative Disclosures About Market Risk	68

4.	Controls and Procedures	69

PART II

1.	Legal Proceedings	70

1A.	Risk Factors	70

2.	Unregistered Sales of Equity Securities and Use of Proceeds	70

6.	Exhibits	70

	Exhibit Index for the Report on Form 10-Q	71

	Signatures	72

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)


		As of			As of
	June 30,			December 31,
		2020			2019
	(Unaudited)
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2020 – $97,789; 2019 – $93,307; allowance for credit losses: 2020 – $21; 2019 – $0)		$	111,858		$	103,773
Trading securities			4,590			4,602
Equity securities			87			103
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2020 – $777; 2019 – $0)			16,489			16,244
Policy loans			2,534			2,460
Derivative investments			2,957			1,911
Other investments			3,183			2,565
Total investments			141,698			131,658
Cash and invested cash			3,219			1,879
Deferred acquisition costs and value of business acquired			6,974			7,745
Premiums and fees receivable			489			464
Accrued investment income			1,129			1,109
Reinsurance recoverables, net of allowance for credit losses			19,184			19,164
Funds withheld reinsurance assets			535			542
Goodwill			1,778			1,778
Other assets			20,846			18,106
Separate account assets			146,787			153,571
Total assets		$	342,639		$	336,016

LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits		$	37,927		$	35,717
Other contract holder funds			99,963			97,422
Short-term debt			628			609
Long-term debt			2,401			2,414
Reinsurance related embedded derivatives			323			375
Funds withheld reinsurance liabilities			7,929			5,566
Payables for collateral on investments			7,031			5,077
Other liabilities			15,848			13,680
Separate account liabilities			146,787			153,571
Total liabilities			318,837			314,431

Contingencies and Commitments (See Note 10)

Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding			11,799			11,312
Retained earnings			4,188			4,437
Accumulated other comprehensive income (loss)			7,815			5,836

Price	-0.00	EPS	52
Shares	10	P/E	-0
MCap	-0	P/FCF	0
Net Debt	-2,238	EBIT	429
TEV	-2,238	TEV/EBIT	-5
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-09
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-12
10-K	2019-12-31	Filed 2020-03-13
10-Q	2019-09-30	Filed 2019-11-04
10-Q	2019-06-30	Filed 2019-08-05
10-Q	2019-03-31	Filed 2019-05-06
10-K	2018-12-31	Filed 2019-03-13
10-Q	2018-09-30	Filed 2018-11-06
10-Q	2018-06-30	Filed 2018-08-07
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-31	Filed 2018-03-13

EX-31.1	c865-20200630xex31_1.htm
EX-31.2	c865-20200630xex31_2.htm
EX-32.1	c865-20200630xex32_1.htm
EX-32.2	c865-20200630xex32_2.htm

C865 10Q Quarterly Report

Lincoln National Life Insurance Earnings 2020-06-30