Item 1. Business
Lincoln National Corporation ("LNC") is a holding company. Through subsidiary companies, LNC operates multiple insurance businesses. Operations have been divided into four major business segments, 1) Property-Casualty, 2) Life Insurance and Annuities, 3) Life-Health Reinsurance and 4) Employee Life-Health Benefits. Following the sale of 71% of its direct writer of employee life-health coverages in the first quarter of 1994, LNC conducted its business within three business segments. After the sale, the earnings from the 29% minority interest retained were included in "Other Operations" as described below. Although one of the subsidiaries held by LNC was formed as early as 1905, LNC itself was formed in 1968. LNC is an Indiana corporation with its principal office at 200 East Berry Street, Fort Wayne, Indiana 46802- 2706. As of December 31, 1994, there were 220 persons on the staff of LNC. Total employment of Lincoln National Corporation at December 31, 1994 on a consolidated basis was 8,995.
Although acquisition and disposition activity has occurred, there has been no activity of this nature during the past five years involving all or predominately all of a business segment except as described above.
Numeric presentations showing revenues, pre-tax income, and assets for LNC's major business segments and other operations in which LNC engages through its subsidiaries are included in this report as part of the consolidated financial statements (see note 9 to the consolidated financial statements on page 57). The LNC "Other Operations" category includes the financial data for an unconsolidated affiliate (subsequent to the first quarter of 1994) engaged in the employee life-health benefits business, LNC's investment management companies, certain other operations that are not directly related to the business segments and unallocated corporate items (i.e., corporate investment income, interest expense on short-term and long-term borrowings, and unallocated corporate overhead expenses).
Following is a brief description of the four major business segments:
1. Property-Casualty
Property-Casualty insurance includes automobile, boiler and machinery, workers' compensation, fire and allied lines, inland marine, home-owners, general casualty, special risks and multiple peril insurance. Fidelity and surety bonds are also included within property-casualty insurance.
Most of LNC's property-casualty business is conducted through American States Insurance Company and its property-casualty subsidiaries ("American States"), headquartered in Indianapolis, Indiana. These companies operate a multi-line property-casualty insurance business in most states of the United States through 20 semi-autonomous division offices with broad authority for underwriting, agency contracting, marketing and claims settlement for most lines of business. The distribution network involves approximately 5,000 independent local agencies.
Other companies within this business segment include Lincoln National Specialty Insurance Company ("LNSIC") which underwrites select coverages in the sports and entertainment market and Linsco Reinsurance Company (formerly Lincoln National Reinsurance Company) which is licensed to write property- casualty reinsurance. Both of these property-casualty companies are involved in servicing closed blocks of business.
Approximately 3,780 employees are involved in this business segment.
2. Life Insurance and Annuities
The primary company within this business segment is The Lincoln National Life Insurance Company ("LNL"). Other companies within this business segment include, First Penn-Pacific Life Insurance Company ("First Penn"), American States Life Insurance Company ("American States Life"), and Lincoln National (UK) PLC.
LNL, the 4th largest U.S. stockholder-owned life insurance Company (1993 Fortune Rankings of 50 Largest Life Insurance Companies by Assets) is an Indiana corporation headquartered in Fort Wayne, Indiana. A network of 36 life insurance agencies, independent life insurance brokers, insurance agencies located within financial institutions and specifically trained employees sells fixed annuities, variable annuities, pension products, universal life, variable universal life, disability income and other individual insurance coverages in most states of the United States and various foreign countries including Canada. The distribution network includes approximately 1,800 career agents, 17,000 brokers and access to 48,000 stockbrokers and financial planners.
First Penn, headquartered in Oakbrook Terrace, Illinois, specializes in the writing and administration of universal life products through independent marketing companies and the sale of LNL's annuities through insurance agencies located within financial institutions in most states of the United States.
American States Life is an Indiana corporation headquartered in Indianapolis, Indiana. Its products, principally universal life and term insurance, are marketed through independent local agencies (who also offer property-casualty insurance) in most states of the United States.
Lincoln National (UK) PLC is a United Kingdom company headquartered in Uxbridge, England, that is licensed to do business throughout the United Kingdom. The principal products produced by this operation, unit-linked life and pension products, are similar to U.S. produced universal life products. Lincoln National (UK) is the 17th largest writer of unit-linked new business premiums in the UK as measured in 1993 (Money Management Survey-New Business Trends, published in June 1994). With the addition of an acquisition completed in January 1995, Lincoln National (UK) advances to the 15th largest writer of unit-linked new business premiums and is represented by a sales force of approximately 1,500.
Approximately 4,115 employees are involved in this business segment.
3. Life-Health Reinsurance
The primary companies within this business segment are Lincoln National Life Reinsurance Company ("LNLR"), Lincoln National Reassurance Company, ("LNRAC"), Lincoln National Health & Casualty Insurance Company ("LNH&C") and LNL. These companies are headquartered in Fort Wayne, Indiana. A broad range of risk management products and services are offered to insurance companies, HMOs, self-funded employers and other primary market risk accepting organizations throughout the United States and economically attractive international markets. Marketing efforts are conducted primarily through the efforts of a reinsurance sales staff. Some business is presented by reinsurance intermediaries and brokers. The reinsurance organization is the leading life-health reinsurer worldwide measured on gross premiums, net of ceded (1994 Swiss Re survey).
LNLR, LNRAC and LNL offer reinsurance programs for individual life, group life, group medical, disability income, long-term care, personal accident and annuity products to U.S. and International clients. LNH&C offers group medical products and services on both a direct and reinsurance basis.
Other companies in this business segment include various general business corporations and foreign insurance companies. The general business corporations are used to support the segment's sales, service and administration efforts. The foreign insurance companies provide specialized reinsurance programs, including financial reinsurance, asset management and funded covers, to U.S. and international clients.
Approximately 560 employees are involved in this business segment.
4. Employee Life-Health Benefits
Prior to the sale of 71% of its direct writer of employee life-health coverages in 1994, LNC used this segment to manufacture and distribute group life and health insurance, managed health care, dental, disability products and flexible benefit administrative services with a primary focus on the small business market (companies with 2-150 employees). Following the sale, the earnings from the 29% minority interest were included in Other Operations.
Liabilities for claims and claim expenses for the property-casualty business segment are estimated at the end of each accounting period using case-basis evaluations and statistical projections. These liabilities include estimates for the ultimate cost of claims 1) which have been reported but not settled and 2) which have been incurred but not yet reported. A provision for inflation is implicitly considered in the estimated liability as the development of the estimated liability is based on historical data which reflects past inflation and on other factors which are judged to be appropriate modifiers of past experience. Adjustments to previously established estimates are reflected in current operating results along with initial estimates for claims arising within the current accounting period. Since January 1, 1993 such estimates no longer recognize the effects of reinsurance recoverable because such amounts are now recorded as an asset.
A reconciliation of the beginning of year and end of year liability for claims and claim expenses is included in this report as part of the financial statements (see note 5 to the consolidated financial statements on page 46).
The liability for claims and claim expenses included in this report is shown on a basis prescribed by generally accepted accounting principles ("GAAP"). Such liabilities differ from that reported to state insurance regulators. A reconciliation of the GAAP liability and the corresponding liability reported to state insurance regulators is as follows:
The table on page 5 shows the development of the estimated liability for claim and claim expenses for the ten year period prior to 1994. Each column shows the liability as originally estimated and cumulative data on payments and re- estimated liabilities for that accident year and all prior accident years, making up that calendar year-end liability; and all amounts are reflected net of reinsurance recoverable for all years. As noted above, since 1993 the liability shown in the financial statements no longer reflects the effects of reinsurance recoverable. The resulting redundancy (deficiency) is also a cumulative amount for that year and all prior years. Conditions and trends that have affected the development of these liabilities in the past may not necessarily recur in the future; therefore, it would not be appropriate to use this cumulative history in the projection of future performance.
Analysis of Combined Property-Casualty Claims and Claim Expense Development.
December 31 (in millions) 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Liability for unpaid claims and claim expenses, net of reinsurance recoverable:
$760 $1,370 $1,730 $2,020 $2,372 $2,669 $2,246 $2,502 $2,673 $2,585 $2,499
Cumulative redundancy (deficiency)
(442) (443) (282) (190) (179) (200) (157) (61) 66 79 0
Change in redundancy (deficiency)
(1) 161 92 11 (21) 43 96 127 13 (79)
In order to protect itself against losses greater than the amount it is willing to retain on any one risk or event, LNC's insurance subsidiaries purchase reinsurance from unaffiliated insurance companies (see note 7 to the consolidated financial statements on page 51).
In order to maximize returns on its investment portfolio, LNC's investment personnel continually monitor both current investment income produced by the portfolio and current market values of the portfolio. The type, maturity, quality and liquidity of investments selected to place in the segmented portfolios vary depending on the nature of the underlying liabilities that are being supported.
All the areas of business activity in which LNC is involved are highly competitive because of the marketing structure and the large number of competing companies.
At the end of 1993, the latest year for which data is available, there were approximately 1,200 groups and unaffiliated individual companies selling property and casualty insurance. LNC's group of companies writing property-casualty insurance ranked 29th in net written premiums for 1993 (A.M. Best Aggregates and Averages) among all such groups and companies.
At the end of 1993 there were more than 1,800 life insurance companies in the United States and LNL was the 12th largest among the stock and mutual life insurance companies in the United States based on assets and 16th based on insurance in-force (1993 Fortune Ranking of 50 Largest Life Insurance Companies by Assets).
The business of LNC's property-casualty, life insurance and annuities and life-health reinsurance business segments, in common with those of other insurance companies, is subject to regulation and supervision by the states, territories and foreign countries in which they are admitted to do business. The laws of these jurisdictions generally establish supervisory agencies with broad administrative powers relative to granting and revoking licenses to transact business, regulating trade practices, licensing agents, prescribing and approving policy forms, regulating premium rates for some lines of business, establishing reserve requirements, regulating competitive matters, prescribing the form and content of financial statements and reports, and regulating the type and amount of investments permitted. The ability to continue an insurance business is dependent upon the maintenance of the licenses in the various jurisdictions.
Because of the nature of the insurance business, there is no single customer or group of customers upon whom the business is dependent. Factors such as backlog, raw materials, patents (including trademarks, licenses, franchises, and any other concessions held), seasonality, or environmental impact do not have a material effect upon such business. However, within LNC's Life-Health Reinsurance segment, Lincoln National Risk Management, Inc. does hold a patent for "The Method and Apparatus for Evaluating a Potentially Insurable Risk" and markets multiple knowledge based underwriting products which rely on this product. LNC does not have a separate unit that conducts market research. Research activities related to new products or services or the improvement of existing products or services is completed by persons within the business segments. Expenses related to such activities are not material. Also, sales are not dependent upon select geographic areas and foreign sales are not material in relationship to either LNC's total sales or sales of individual business segments.
Item 2.
Item 2. Properties
LNC and the various operating businesses headquartered in Fort Wayne lease approximately 1.3 million square feet of office space in the Fort Wayne area. Approximately 1.5 million square feet of space is owned or leased by operating businesses headquartered in Indianapolis, Indiana; Oakbrook Terrace, Illinois; and Uxbridge, London, England. In addition, branch offices owned or leased for all of the operating businesses referenced above as well as the space for some smaller operations total approximately 1.0 million square feet. As shown in the notes to consolidated financial statements (see note 7 to the consolidated financial statements on page 51), the rental expense on operating leases for office space and equipment for continuing operations totaled $51.4 million for 1994 of which $45.4 million was for office space. This discussion regarding properties does not include information on investment properties.
Item 3.
Item 3. Legal Proceedings
LNC and its subsidiaries are involved in various pending or threatened legal proceedings arising from the conduct of their business. In some instances, these proceedings include claims for punitive damages and similar types of relief in unspecified or substantial amounts, in addition to amounts for alleged contractual liability or requests for equitable relief. After consultation with counsel and a review of available facts, it is management's opinion that these proceedings ultimately will be resolved without materially affecting the consolidated financial statements of LNC.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders
During the fourth quarter of 1994, no matters were submitted to security holders for a vote.
PART II
Notes:
1. At December 31, 1994, the number of shareholders of record of LNC's Common Stock was 13,730.
2. The payment of dividends to shareholders is subject to the restrictions described in notes 5, Supplemental Financial Data, and 7, Restrictions, Commitments and Contingencies to the consolidated financial statements (see pages 45 and 50) and is discussed in the Management's Discussion and Analysis of Financial Condition (see page 23).
Exchanges: New York, Chicago, Pacific, London and Tokyo.
Stock Exchange Symbol: LNC
Dividend Guideline: The dividend on LNC's Common Stock is determined each quarter by the Corporation's Board of Directors. The Board takes into consideration the financial condition of the Corporation, including current and expected earnings, projected cash flows and anticipated financing needs. The Board also considers the ability to maintain the dividend through bad times as well as good so that the dividend would need to be reduced only under unusual circumstances. One guideline that the Board has found useful in recent years is to consider a dividend approximately equal to five percent of the book value per share with such book value computed excluding the impact of marking its securities available-for-sale to fair value.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The pages to follow review LNC's results of operations and financial condi- tion. Historical financial information is presented and analyzed. Where appropriate, factors that may affect future financial performance are identified and discussed.
On pages 9 through 19, the financial results of our business segments, investments and other operations are presented and discussed. Within these business segment discussions reference is made to "Income from Operations" (see definition in item 6
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There have been no disagreements with LNC's independent auditors which are reportable pursuant to Item 304 of Regulation S-K.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant
Information for this item relating to directors of LNC is incorporated by reference to the sections captioned "NOMINEES FOR DIRECTOR", "DIRECTORS CONTINUING IN OFFICE", and "COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934", of LNC's Proxy Statement for the Annual Meeting scheduled for May 11, 1995.
Executive Officers of the Registrant as of December 31, 1994 were as follows:
Name Position with LNC and Business Experience (Age) During the Past Five Years Ian M. Rolland Chairman and Director, LNC since 1992. (61) President and Director, LNC (1975-1991). Chief Executive Officer, LNC since 1977.
Robert A. Anker President, Chief Operating Officer and Director, (53) LNC since 1992. President and Chief Executive Officer, American States* (1990-1991). President and Chief Operating Officer, American States* (1985-1990).
Jon A. Boscia President, Chief Operating Officer, LNL* since (43) May 1994. Executive Vice President, LNC (1991- May 1994). President, Lincoln National Investment Management Company ("LNIMC")* (1991-May 1994). Executive Vice President, LNIMC* (1985-1991).
George E. Davis Senior Vice President, LNC since 1993. (52) Vice President, Eastman Kodak Co. (1985-1993).
P. Kenneth Dunsire Executive Vice President, LNC since 1986. [Retired (63) January 1995]
Jack D. Hunter Executive Vice President, LNC since 1986. General (58) Counsel since 1971.
Barbara S. Kowalczyk Senior Vice President, LNC since May 1994. (44) Senior Vice President, LNIMC* (1992-May 1994). Vice President LNIMC* (1985-1992).
F. Cedric McCurley President and Chief Executive Officer, American (60) States* since 1992. Executive Vice President, American States* (1986-1991).
H. Thomas McMeekin Executive Vice President, LNC since May 1994. (41) President, LNIMC* since May 1994. Senior Vice President, LNC (1992-May 1994). Executive Vice President, LNIMC* (February 1992-November 1992). Senior Vice President, LNIMC* (1987-1992).
Richard S. Robertson Executive Vice President, LNC since 1986. (52)
Gabriel L. Shaheen Executive Vice President, LNL* since May 1994. (41) Senior Vice President, LNL* 1991-May 1994), Vice President, LNL* (1987-1991).
Richard C. Vaughan Executive Vice President and Chief Financial (45) Officer, LNC since January 1995. Senior Vice President and Chief Financial Officer, LNC (1992- January 1995). Senior Vice President, LNL* (1990- 1992). Vice President, EQUICOR, Inc. (1988-1990).
Donald L. Van Wyngarden Second Vice President & Controller, LNC since 1975. (55)
*Denotes a subsidiary of LNC
There is no family relationship between any of the foregoing executive officers, all of whom are elected annually.
Item 11.
Item 11. Executive Compensation
Information for this item is incorporated by reference to the section cap- tioned "EXECUTIVE COMPENSATION" of LNC's Proxy Statement for the Annual Meeting scheduled for May 11, 1995.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Information for this item is incorporated by reference to the sections captioned "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS" and "SECURITY OWNERSHIP OF DIRECTORS, NOMINEES AND EXECUTIVE OFFICERS" of LNC's Proxy Statement for the Annual Meeting scheduled for May 11, 1995.
Item 13.
Item 13. Certain Relationships and Related Transactions
Information for this item is incorporated by reference to the section cap- tioned "TERMINATION OF EMPLOYMENT ARRANGEMENT" of LNC's Proxy Statement for the Annual Meeting scheduled for May 11, 1995.
PART IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
Item 14(a)(1) Financial Statements
The following consolidated financial statements of Lincoln National Corpora-
tion and subsidiaries are included in Item 8:
Consolidated Balance Sheets - December 31, 1994 and 1993
Consolidated Statements of Income - Years ended December 31, 1994, 1993 and
Consolidated Statements of Shareholders' Equity - Years ended December 31, 1994, 1993 and 1992
Consolidated Statements of Cash Flows - Years ended December 31, 1994, 1993 and 1992
Notes to Consolidated Financial Statements
Report of Ernst & Young LLP, Independent Auditors
Item 14(a)(2) Financial Statement Schedules
The following consolidated financial statement schedules of Lincoln National Corporation and subsidiaries are included in Item 14(d):
I - Summary of Investments - Other than Investments in Related Parties II - Condensed Financial Information of Registrant III - Supplementary Insurance Information IV - Reinsurance V - Valuation and Qualifying Accounts VI - Supplementary Information Concerning Property-Casualty Insurance Operations
All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions, are inapplicable, or the required information is included in the consolidated financial statements, and therefore have been omitted.
Item 14(a)(3) Listing of Exhibits
The following exhibits of Lincoln National Corporation and subsidiaries are included in Item 14(c) - (Note: The numbers preceding the exhibits correspond to the specific numbers within Item 601 of Regulation S-K.):
3(a) The Articles of Incorporation of LNC as last amended May 12, 1994 are incorporated by reference to LNC's Form S-3/A (File No. 33-55379) filed with the Commission on September 15, 1994.
3(b) The Bylaws of LNC as last amended January 1, 1992 are incorporated by reference to Exhibit 3(b) of LNC's Form 10-K for the year ended December 31, 1991 filed with the Commission on March 27, 1992.
4(a) Indenture of LNC dated as of January 15, 1987.
4(b) First Supplemental Indenture dated as of July 1, 1992, to Indenture of LNC dated as of January 15, 1987, and Specimen Notes for LNC's 7 1/8% Notes due July 15, 1999 are incorporated by reference to Annex B and Annex C of LNC's Form 8-K filed with the Commission on July 7, 1992.
4(c) First Supplemental Indenture dated as of July 1, 1992, to Indenture of LNC dated as of January 15, 1987, and Specimen Notes for LNC's 7 5/8% Notes due July 15, 2002 are incorporated by reference to Annex B and Annex D of LNC's Form 8-K filed with the Commission on July 7, 1992.
4(d) Fiscal Agency Agreement related to sale of $100,000,000 aggregate principal amount of 9 3/4% Notes of LNC due October 20, 1995 and the specimen of 9 3/4% Notes are incorporated by reference to Exhibit 4(d) of LNC's Form 10-K for the year ended December 31, 1993, filed with the Commission on March 30, 1994.
4(e) Rights Agreement dated November 7, 1986.
4(f) Rights Agreement date July 5, 1990 is incorporated by reference to Exhibit No. 28 of LNC's Registration Statement on Form S-3, (File No. 33-55652), filed with the Commission on December 11, 1992.
4(g) Indenture for LNC's 9 1/8% Debentures due October 1, 2024 are incorporated by reference to Exhibits No. 4(c) of LNC's S-3/A (File No. 33-55379), filed with the Commission on September 15, 1994.
4(h) Specimen Debenture of LNC's 9 1/8% Debentures due October 1, 2024 is incorporated herein by reference to Schedule I of LNC's Form 8-K filed with the Commission on September 29, 1994. 1994.
10(a)* The Lincoln National Corporation 1986 Stock Option Incentive Plan as last amended and restated is incorporated by reference to Exhibit No.1 of LNC's Proxy filed with the Commission on March 31, 1994.
10(b)* The Lincoln National Corporation 1982 Stock Option Incentive Plan as last amended May 7, 1987 is incorporated by reference to Exhibit 10(b) of LNC's Form 10-K for the year ended December 31, 1993, filed with the Commission on March 30, 1994.
10(c)* The Lincoln National Corporation Executives' Salary Continuation Plan as last amended January 1, 1992 is incorporated by reference to Exhibit 10(c) of LNC's Form 10-K for the year ended December 31, 1992, filed with the Commission on March 30, 1993.
10(d)* The Lincoln National Corporation Executive Value Sharing Plan is incorporated by reference to Exhibit No. 4 of LNC's Proxy filed with the Commission on March 31, 1993.
10(e)* Lincoln National Corporation Executives' Severance Benefit Plan as last amended January 10, 1990, is incorporated by reference to Exhibit 10(f) of LNC's Form 10-K for the year ended December 31, 1990, filed with the Commission on March 28, 1991.
10(f)* The Lincoln National Corporation Outside Directors Retirement Plan as last amended March 15, 1990, is incorporated by reference to Exhibit 10(g) of LNC's Form 10-K for the year ended December 31, 1990, filed with the Commission on March 28, 1991.
10(g)* The Lincoln National Corporation Outside Directors Benefits Plan is incorporated by reference to Exhibit 10(h) of LNC's Form 10-K for the year ended December 31, 1992, filed with the Commission on March 30, 1993.
10(h)* Descriptions of compensation arrangements with Executive Officers is incorporated by reference to Exhibit 10(m) of LNC's Form 10-K for the year ended December 31, 1993, filed with the Commission on March 30, 1994.
10(i)* The Lincoln National Corporation Executives' Supplemental Pension Benefit Plan is incorporated by reference to Exhibit 10(n) of LNC's Form 10-K for the year ended December 31, 1992, filed with the Commission on March 30, 1993.
10(j)* Lincoln National Corporation Executive Savings and Profit Sharing Plan as amended January 1, 1992 is incorporated by reference to Exhibit 10(o) of LNC's Form 10-K for the year ended December 31, 1992, filed with the Commission on March 30, 1993.
10(k)* Lincoln National Corporation 1993 Stock Plan for Non-Employee Directors is incorporated by reference to Exhibit 10(q) of LNC's Form 10-K for the year ended December 31, 1993, filed with the Commission on March 30, 1994.
10(l)* Lincoln National Corporation Executives' Excess Compensation Benefit Plan is incorporated by reference to Exhibit 10(r) of LNC's Form 10-K for the year ended December 31, 1993, filed with the Commission on March 30, 1994.
10(m) Lease and Agreement dated August 1, 1984, with respect to the American States' Home Office property, is incorporated by reference to Exhibit 10(i) of LNC's Form 10-K for the year ended December 31, 1990, filed with the Commission on March 28, 1991.
10(n) Lease and Agreement dated August 1, 1984, with respect to LNL's Home Office properties located at Clinton Street and Harrison Street, Fort Wayne, Indiana, is incorporated by reference to Exhibit 10(j) of LNC's Form 10-K for the year ended December 31, 1990, filed with the Commission on March 28, 1991.
10(o) Lease and Agreement dated August 1, 1984, with respect to LNL's Home Office property located at Magnavox Way, Fort Wayne, Indiana is incorporated by reference to Exhibit No. 10(i) of LNC's Form 10-K for the year ended December 31, 1990, filed with the Commission March 28, 1991. [Former lessee name was Lincoln National Pension Insurance Company which was merged with LNL, effective January 1, 1989.]
10(p) Lease and Agreement dated December 1, 1994 with respect to LNC's Corporate Office located at 200 East Berry Street, Fort Wayne, Indiana.
*This exhibit is a management contract or compensatory plan or arrangement required to be filed as an exhibit to this form pursuant to Item 14(c) of this report.
11 Computation of Per Share Earnings. 21 List of Subsidiaries of LNC. 23 Consent of Ernst & Young LLP, Independent Auditors. 27 Financial Data Schedule. 28 Information from Reports Furnished to State Insurance. Regulatory Authorities.
Item 14(b) - During the fourth quarter of the year ended December 31, 1994, no reports on Form 8-K were filed with the Commission.
Item 14(c) - The exhibits of Lincoln National Corporation and subsidiaries are listed in Item 14(a)(3) above.
Item 14(d) - The financial schedules for Lincoln National Corporation and subsidiaries follow on pages through 31-59.
(A) Investments which are deemed to have declines in value that are other than temporary are written down or reserved for to reduce their carrying value to their estimated realizable value.
These condensed financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes of Lincoln National Corporation and subsidiaries (see pages 31 through 59).
These condensed financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes of Lincoln National Corporation and subsidiaries (see pages 31 through 59).
These condensed financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes of Lincoln National Corporation and subsidiaries (see pages 31 through 59).
LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS
LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES EXHIBIT INDEX FOR THE ANNUAL REPORT ON FORM 10-K
For the Year Ended December 31, 1994
Exhibit Number Page 3(a) Articles of Incorporation of LNC as last amended May 12, 1994.* 3(b) Bylaws of LNC as last amended January 1, 1992.*
4(a) Indenture of LNC due January 15, 1987. 76 4(b) Indenture for 7 1/8% due July 15, 1999 and Specimen Notes.* 4(c) Indenture for 7 5/8% Notes due July 15, 2002 and Specimen Notes.* 4(d) Fiscal Agency Agreement for 9 3/4% Notes due October 30, 1995, and Specimen Notes.* 4(e) Rights Agreement dated November 7, 1986. 110 4(f) Right Agreement date July 5, 1990.* 4(g) Indenture for 9 1/8% Notes due October 1, 2024 and Specimen Notes.* 4(h) Specimen Debenture for 9 1/8% Notes due October 1, 2024.*
10(a) Lincoln National Corporation 1986 Stock Option Incentive Plan.* 10(b) Lincoln National Corporation 1982 Stock Option Incentive Plan.* 10(c) The Lincoln National Corporation Executives' Salary Continuation Plan.* 10(d) The Lincoln National Corporation Executive Value Sharing Plan.* 10(e) Lincoln National Corporation Executives' Severance Benefit Plan as last amended January 10, 1990.* 10(f) The Lincoln National Corporation Outside Directors Retirement Plan.* 10(g) The Lincoln National Corporation Outside Directors Benefits Plan.* 10(h) Descriptions of Compensation Arrangements with Executive Officers.* 10(i) The Lincoln National Corporation Executives' Supplemental Pension Benefit Plan.* 10(j) The Lincoln National Corporation Executive Savings and Profit Sharing Plan as last amended January 1, 1992.* 10(k) Lincoln National Corporation 1993 Stock Plan for Non- Employee Directors.* 10(l) Lincoln National Corporation Executives' Excess Compensation Benefit Plan.* 10(m) Lease and Agreement dated August 1, 1984, with respect to the American States' home office property.* 10(n) Lease and Agreement dated August 1, 1984, with respect to LNL's home office property.* 10(o) Lease and Agreement dated August 1, 1984, with respect to additional LNL home office property.* 10(p) Lease dated February 14, 1991, with respect to LNC's Corporate Offices. 145
11 Computation of Per Share Earnings. 169 21 List of Subsidiaries of LNC. 170 23 Consent of Ernst & Young LLP, Independent Auditors. 180 27 Financial Data Schedule. 181 28 Information from Reports Furnished to State Insurance Regulatory Authorities. [Data shown on this report is on 182 a "Combined" basis and does not include data for subsidiaries sold.]
*Incorporated by Reference
Signature Page
LINCOLN NATIONAL CORPORATION
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act By /s/ Ian M. Rolland March 9, 1995 of 1934, LNC has duly caused Ian M. Rolland, this report to be signed on (Chairman, Chief Executive Officer and behalf by the under- Director) signed, thereunto duly authorized. By /s/ Robert A. Anker March 9, 1995 Robert A. Anker, (President, Chief Operating Officer and Director)
By /s/ Richard C. Vaughan March 9, 1995 Richard C. Vaughan, (Executive Vice President and Chief Financial Officer)
By /s/ Donald L. Van Wyngarden March 9, 1995 Donald L. Van Wyngarden (Second Vice President and Controller)
Pursuant to the requirements By /s/ J. Patrick Barrett March 9, 1995 of the Securities Exchange J. Patrick Barrett Act of 1934, this report has been signed below by By /s/ Thomas D. Bell, Jr. March 9, 1995 the following Directors Thomas D. Bell, Jr of LNC on the date indicated. By /s/ Daniel R. Efroymson March 9, 1995 Daniel R. Efroymson
By /s/ Harry L. Kavetas March 9, 1995 Harry L. Kavetas
By /s/ M. Leanne Lachman March 9, 1995 M. Leanne Lachman
By /s/ Leo J. McKernan March 9, 1995 Leo J. McKernan
By /s/ Earl L. Neal March 9, 1995 Earl L. Neal
By /s/ John M. Pietruski March 9, 1995 John M. Pietruski
By /s/ Jill S. Ruckelshaus March 9, 1995 Jill S. Ruckelshaus
By /s/ Gordon A. Walker March 9, 1995 Gordon A. Walker
By /s/ Gilbert R. Whitaker,Jr. March 9, 1995 Gilbert R. Whitaker,Jr.