SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

(Parent Company Only) (in millions, except share data)


	As of December 31,
	2025		2024
ASSETS
Investments in subsidiaries	$	16,650	$	14,240
Derivative investments	1		165
Other investments	20		49
Cash and invested cash	1,130		786
Loans to and accrued interest due from subsidiaries	2,152		2,234
Other assets	206		122
Total assets	$	20,159	$	17,596

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Common stock dividends payable	$	86	$	77

Short-term debt	400		300
Long-term debt	7,366		7,356
Loans from and accrued interest due to subsidiaries	1,129		1,072
Other liabilities	272		522
Total liabilities	9,253		9,327

Contingencies and Commitments (See Note 17)

Stockholders’ Equity
Preferred stock – 10,000,000 shares authorized:
Series C preferred stock – 20,000 shares authorized, issued and outstanding
as of December 31, 2025 and 2024	493		493
Series D preferred stock – 20,000 shares authorized, issued and outstanding
as of December 31, 2025 and 2024	493		493
Common stock – 800,000,000 shares authorized; 188,425,634 and 170,380,646 shares
issued and outstanding as of December 31, 2025 and 2024, respectively	5,592		4,674
Retained earnings	8,386		7,645
Accumulated other comprehensive income (loss)	(4,058)		(5,036)
Total stockholders’ equity	10,906		8,269
Total liabilities and stockholders’ equity	$	20,159	$	17,596

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Parent Company Only) (in millions)


	For the Years Ended December 31,
	2025		2024		2023
Revenues

Interest from subsidiaries	$	200	$	276	$	233
Net investment income	27		24		25
Realized gain (loss)	(1)		101		–
Other revenues	–		2		–
Total revenues	226		403		258
Expenses
Operating and administrative expenses	127		100		78
Interest – subsidiaries	251		268		175
Interest – other	200		297		289
Total expenses	578		665		542
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries	(352)		(262)		(284)
Federal income tax expense (benefit)	(76)		(60)		(61)
Income (loss) before equity in income (loss) of subsidiaries	(276)		(202)		(223)
Equity in income (loss) of subsidiaries	1,453		3,477		(529)
Net income (loss)	1,177		3,275		(752)
Other comprehensive income (loss), net of tax:
Unrealized investment gain (loss)	1,638		(788)		3,715
Market risk benefit non-performance risk gain (loss)	(408)		(924)		(671)
Policyholder liability discount rate remeasurement gain (loss)	(264)		157		(160)
Foreign currency translation adjustment	11		(3)		8
Funded status of employee benefit plans	1		(2)		(16)
Total other comprehensive income (loss), net of tax	978		(1,560)		2,876
Comprehensive income (loss)	$	2,155	$	1,715	$	2,124

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF CASH FLOWS

(Parent Company Only) (in millions)


	For the Years Ended December 31,
	2025		2024		2023












Net Cash Provided by (Used in) Operating Activities (1)	$	491	$	176	$	398
Cash Flows from Investing Activities
Capital contribution to subsidiaries	(967)		(27)		(7)
Cash received from disposition	–		125		–
Sales of available-for-sale securities	418		–		–
Net change in collateral on investments, derivatives and related settlements	68		132		69
Other	–		–		45
Net cash provided by (used in) investing activities	(481)		230		107
Cash Flows from Financing Activities
Payment of long-term debt, including current maturities	(300)		(100)		(500)
Issuance of long-term debt, net of issuance costs	495		346		–
Payment related to modification or early extinguishment of debt	(421)		–		–
Increase (decrease) in loans from subsidiaries, net	74		28		(84)
(Increase) decrease in loans to subsidiaries, net	73		379		(113)
Common stock issued for benefit plans	4		(5)		(7)
Issuance of common stock	825		–		–


Dividends paid to preferred stockholders	(91)		(91)		(82)
Dividends paid to common stockholders	(325)		(306)		(305)

Net cash provided by (used in) financing activities	334		251		(1,091)
Net increase (decrease) in cash and invested cash	344		657		(586)
Cash and invested cash as of beginning-of-year	786		129		715
Cash and invested cash as of end-of-year	$	1,130	$	786	$	129

Supplemental Disclosures of Cash Flow Information
Net cash paid (received) for:
Interest	$	560	$	577	$	484
Income taxes	(34)		17		(7)

(1) Includes dividends from subsidiaries of $845 million, $595 million and $685 million for the years ended December 31, 2025, 2024 and 2023, respectively.

LINCOLN NATIONAL CORP 10-K