Item 1. Business
Lincoln National Corporation ("LNC") is a holding company. Through subsidiary companies, LNC operates multiple insurance businesses. Operations are divided into four major business segments, 1) Property-Casualty, 2) Life Insurance and Annuities, 3) Life-Health Reinsurance and 4) Employee Life-Health Benefits. 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, 1993, there were 215 persons on the staff of LNC. Total employment of Lincoln National Corporation at December 31, 1993 on a consolidated basis was 11,890.
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.
Numeric presentations showing revenues, pre-tax income, and assets for LNC's four 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 8 to the consolidated financial statements on page 54). The LNC "Other Operations" category includes LNC's investment management companies and unallocated corporate items, including 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 ("American States"), headquartered in Indianapolis, Indiana, and its property-casualty subsidiaries. These companies operate a multi-line property-casualty insurance business in most states of the United States through 22 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 Lincoln National Reinsurance Company which is a property-casualty company that is involved in servicing a closed block of reinsurance business.
Approximately 3,900 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, Security-Connecticut Life Insurance Company ("Security- Connecticut"), First Penn-Pacific Life Insurance Company ("First Penn"), American States Life Insurance Company ("American States Life"), and Lincoln National (UK) PLC.
LNL, the 6th largest U.S. stockholder-owned life insurance Company (1992 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 and other individual insurance coverages in most states of the United States and various foreign countries including Canada. The distribution network includes approximately 1,900 career agents, 13,000 brokers and access to 42,000 stockbrokers and financial planners.
Security-Connecticut is a Connecticut corporation headquartered in Avon, Connecticut. It specializes in writing universal life and term insurance through independent general agencies in most states of the United States. A wholly owned subsidiary of Security-Connecticut, Lincoln Security Life Insurance Company, operates in the state of New York. In January 1993, LNC announced it would seek a buyer for Security-Connecticut. The sale of the common stock of Security-Connecticut Corporation (a recently formed holding company to which ownership of the operating companies was transferred prior to the sale) was completed on February 2, 1994 through an Initial Public Offering (IPO).
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 Wembley, England that is licensed to do business throughout the United Kingdom. The principal products produced by this operation known as unit- linked assets are similar to U.S. produced universal life products. This company was previously named Cannon Assurance Limited, but was renamed following the acquisition and merger of another UK company that previously operated as Citibank Life (UK). Lincoln National (UK) is the 16th largest writer of unit-linked new business premiums in the UK as measured in 1992 (Money Management Survey-New Business Trends, published in June 1993.)
Approximately 4,325 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 one of the largest life-health reinsurers worldwide (Swiss Re survey, May 1993).
LNH&C offers accident and health products and services on both a direct and reinsurance basis.
Other companies in this business segment include various general business corporations and foreign reinsurance companies. The general business corporations are used to support the segment's sales, service and administration efforts. One of the general business corporations, Lincoln National Risk Management Inc. has developed and patented a knowledge based underwriting system ("Life Underwriting System") which it is marketing to other insurance companies. The foreign reinsurance corporations are used to support LNC's U.S. companies through reinsuring select business.
Approximately 575 employees are involved in this business segment.
4. Employee Life-Health Benefits This segment's business is conducted through Employers Health Insurance Company ("Employers Health"), a Wisconsin Corporation, headquartered in Green Bay, Wisconsin. Employers Health manufactures and distributes 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). It also provides administrative services to medium and large self-funded accounts in Wisconsin and is extending such services to other core market areas for self-funded groups of 100 - 1,000 lives. Employers Health has a strong market position in the Midwest, California, Texas, Colorado, Georgia, Tennessee, Maryland and Virginia, representing approximately 80 percent of its in-force business. In December 1993, LNC announced it would attempt to sell a portion of its
ownership in Employers Health through an initial public offering (IPO) of Common Stock in a newly formed holding company known as EMPHESYS Financial Group, Inc. In March 1994, this IPO was completed and resulted in the sale of 64% of the company.
Approximately 2,590 employees are involved in this segment.
Liabilities for losses and loss adjustment expenses ("LAE") 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. Further, beginning in 1993 such estimates no longer recognize the effects of reinsurance recoverable because such amounts are now recorded as an asset with the adoption of FAS 113 (see note 2 to the consolidated financial statements on page 38).
The reconciliation shows an increase (decrease) of ($26.5) million, $47.0 million, and $12.3 million to the December 31, 1992, 1991 and 1990 liability for losses and LAE, respectively, for claims arising in prior years. Such reserve adjustments, which affected current operations during 1993, 1992 and 1991, respectively, resulted from developed losses for prior years being different than were anticipated when the liabilities for losses and LAE were originally estimated.
The following table shows the development of the estimated liability for loss and LAE for the ten year period prior to 1993. 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 a result of adopting FAS 113 in 1993, the 1993 liability is $225 million less than reported in the financial statements. The resulting redundancy (deficiency) is also a cumulative amount for that year and all prior years. The reserves include an estimated liability for unreported environmental losses. Prior to 1993, this liability was generally recognized in the more recent accident years and allocated to the appropriate accident year when reported. In 1993, this estimated liability for unreported environmental losses was reallocated to more appropriate accident years and as a result increased the deficiency for the period 1983 and prior. Beginning in 1986, the overall reserves were strengthened and this action has been maintained as evidenced by the cumulative development reported for 1987 through 1993. 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.
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 50).
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 1992, 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 25th in net written premiums for 1992 (A.M. Best Aggregates and Averages) among all such groups and companies.
At the end of 1992 there were more than 2,100 life insurance companies in the United States and LNL was the 13th largest stock and mutual life insurance company in the United States based on assets and 15th based on insurance in-force (1992 Fortune Ranking of 50 Largest Life Insurance Companies by Assets).
The business of LNC's property-casualty, life insurance and annuities, life-health reinsurance and employee life-health benefits 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 own the patent for a knowledge based underwriting system known as "Life Underwriting System." 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 1.0 million square feet of space is leased by operating businesses headquartered in Indianapolis, Indiana; Oakbrook Terrace, Illinois; Green Bay, Wisconsin; and Wembley, 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 1.2 million square feet. As shown in the notes to consolidated financial statements, (see note 7 to the consolidated financial statements on page 49) the rental expense on operating leases for office space and equipment for continuing operations totaled $55.9 million for 1993 of which $49.6 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 1993, no matters were submitted to security holders for a vote.
PART II
Item 5.
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
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 rate 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.
Notes: 1. The data for 1992 and the first quarter of 1993 has been adjusted to reflect the effects of a June 1993 two-for-one split of LNC's Common Stock.
2. At December 31, 1993, the number of shareholders of record of LNC's Common Stock was 13,600.
3. 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 48) and is discussed in the Management's Discussion and Analysis of Financial Information (see page 28).
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 22, 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" and "DIRECTORS CONTINUING IN OFFICE" of LNC's Proxy Statement for the Annual Meeting scheduled for May 12, 1994.
Executive Officers of the Registrant as of December 31, 1993 were as follows:
Name Position with LNC and Business Experience (Age) During the Past Five Years
Robert A. Anker President, Chief Operating Officer and Director, (52) LNC since 1992. President and Chief Executive Officer, American States* (1990-1991). President and Chief Operating Officer, American States* (1985-1990).
Jon A. Boscia Executive Vice President, LNC since 1991. (42) President, Lincoln National Investment Management Company* since 1991. Senior Vice President, LNL* (1985-1991).
George E. Davis Senior Vice President, LNC since March 1993. (51) Vice President, Eastman Kodak Co. (1985-March 1993).
P. Kenneth Dunsire Executive Vice President, LNC since 1986. (62)
Jack D. Hunter Executive Vice President, LNC since 1986. General (57) Counsel since 1971.
William J. Lawson President and Chief Executive, Officer, Employers (54) Health* since 1988. Senior Vice President, LNL* (1984-1988).
F. Cedric McCurley President and Chief Executive Officer, American (59) States* since 1992. Executive Vice President, American States* (1986-1991).
H. Thomas McMeekin, III Senior Vice President, LNC since 1992. (40) Executive Vice President, Lincoln National Investment Management Company* (1987-1992).
Richard S. Robertson Executive Vice President, LNC since 1986. (51)
Ian M. Rolland Chairman and Director, LNC since 1992. (60) President and Director, LNC (1975-1991). Chief Executive Officer, LNC since 1977.
Richard C. Vaughan Senior Vice President and Chief Financial Officer, (44) LNC since 1992. Senior Vice President, LNL* since 1990. Vice President, EQUICOR, Inc. (1988-1990).
Donald L. Van Wyngarden Second Vice President and Controller, LNC since (54) 1975.
Thomas M. West Executive Vice President, LNL* since 1981. (53)
*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 12, 1994.
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 12, 1994.
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 ARRANGEMENTS" of LNC's Proxy Statement for the Annual Meeting scheduled for May 12, 1994.
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, 1993 and 1992
Consolidated Statements of Income - Years ended December 31, 1993, 1992 and 1991
Consolidated Statements of Shareholders' Equity - Years ended December 31, 1993, 1992 and 1991
Consolidated Statements of Cash Flows - Years ended December 31, 1993, 1992 and 1991
Notes to Consolidated Financial Statements
Report of 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 III - Condensed Financial Information of Registrant V - Supplementary Insurance Information VI - Reinsurance VII - Guarantees of Securities of Other Issuers VIII - Valuation and Qualifying Accounts IX - Short-term Borrowings X - 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 24, 1991 are incorporated by reference to Exhibit 3(a) of LNC's Form 10-K for the year ended December 31, 1991 filed with the Commission on March 27, 1992.
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 for 8% Notes of LNC due March 15, 1997 and the specimen Notes is incorporated by reference to Exhibit 4(b) of LNC's Form 10-K for the year ended December 31, 1991, filed with the Commission on March 27, 1992.
4(b) First Supplemental Indenture 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 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.
10(a)* The Lincoln National Corporation 1986 Stock Option Incentive Plan as last amended May 13, 1993.
10(b)* The Lincoln National Corporation 1982 Stock Option Incentive Plan as last amended May 7, 1987.
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 10(d) of LNC's Form 10-K for the year ended December 31, 1992, filed with the Commission on March 30, 1993.
10(e)* The Lincoln National Corporation Management Incentive Plan II as last amended August 1, 1989, is incorporated by reference to Exhibit 10(e) of LNC's Form 10-K for the year ended December 31, 1989, filed with the Commission on March 29, 1990.
10(f)* 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(g)* 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(h)* 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(i) 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(j) Lease and Agreement dated August 1, 1984, with respect to LNL's home office property, 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(k) Lease and Agreement dated August 1, 1984, with respect to Lincoln National Pension Insurance Company's ("LNP") home office property, is incorporated by reference to Exhibit 10(k) of LNC's Form 10-K for the year ended December 31, 1990, filed with the Commission on March 28, 1991. [LNP was merged into its parent, LNL, effective January 1, 1989.]
10(l) Lease dated March 1, 1984, with respect to Security- Connecticut's home office property, is incorporated by reference to Exhibit 10(l) of LNC's Form 10-K for the year ended December 31, 1990, filed with the Commission on March 28, 1991.
10(m)* Descriptions of compensation arrangements with Executive Officers.
10(n)* 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(o)* Lincoln National Corporation Executive Savings and Profit Sharing Plan as amended as of 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(p) Lease dated February 14, 1991, with respect to property occupied by select Fort Wayne operations of the Registrant is incorporated by reference to Exhibit 10(q) of LNC's Form 10-K for the year ended December 31, 1991 filed with the Commission on March 27, 1992.
10(q)* Lincoln National Corporation 1993 Stock Plan for Non-Employee Directors.
10(r)* Lincoln National Corporation Executives' Excess Compensation Benefit Plan.
*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 The List of Subsidiaries of LNC.
23 Consent of Independent Auditors.
28 Information from Reports Furnished to State Insurance Regulatory Authorities.
Item 14(b) - During the fourth quarter of the year ended December 31, 1993, 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 59 through 68.
(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 30 through 54).
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 30 through 54).
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 30 through 54).
LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES EXHIBIT INDEX FOR THE ANNUAL REPORT ON FORM 10-K For the Year Ended December 31, 1993
Exhibit Number Page 3(a) Articles of Incorporation of LNC as last amended May 24, 1991. 3(b) Bylaws of LNC as last amended January 1, 1992.
4(a) Indenture for 8% Notes due March 15, 1997 and Specimen Notes. 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. 71
10(a) Lincoln National Corporation 1986 Stock Option Incentive Plan. 101 10(b) Lincoln National Corporation 1982 Stock Option Incentive Plan. 110 10(c) The Lincoln National Corporation Executives' Salary Continuation Plan.*
10(d) The Lincoln National Corporation Executive Value Sharing Plan.* 10(e) The Lincoln National Corporation Management Incentive Plan II.* 10(f) Lincoln National Corporation Executives' Severance Benefit Plan as last amended January 10, 1990.* 10(g) The Lincoln National Corporation Outside Directors Retirement Plan.* 10(h) The Lincoln National Corporation Outside Directors Benefits Plan.* 10(i) Lease and Agreement dated August 1, 1984, with respect to the American States' home office property.* 10(j) Lease and Agreement dated August 1, 1984, with respect to LNL's home office property.* 10(k) Lease and Agreement dated August 1, 1984, with respect to LNP's home office property.* 10(l) Lease dated March 1, 1984, with respect to the Security-Connecticut's home office property.* 10(m) Descriptions of Compensation Arrangements with Executive Officers. 118 10(n) The Lincoln National Corporation Executives' Supplemental Pension Benefit Plan.* 10(o) The Lincoln National Corporation Executive Savings and Profit Sharing Plan as last amended January 1, 1992.* 10(p) Lease dated February 14, 1991, with respect to select Fort Wayne business operation's office space.* 10(q) Lincoln National Corporation 1993 Stock Plan for Non- Employee Directors. 120 10(r) Lincoln National Corporation Executives' Excess Compensation Benefit Plan. 125
11 Computation of Per Share Earnings. 128
21 List of Subsidiaries of LNC. 129
23 Consent of Independent Auditors. 135
28 Information from Reports Furnished to State Insurance Regulatory Authorities. P 136
*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 10, 1994 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 10, 1994 Robert A. Anker, (President, Chief Operating Officer and Director)
By /s/ Richard C. Vaughan March 10, 1994 Richard C. Vaughan, (Senior Vice President and Chief Financial Officer)
By /s/ Donald L. Van Wyngarden March 10, 1994 Donald L. Van Wyngarden (Second Vice President and Controller)
Pursuant to the requirements By /s/ J. Patrick Barrett March 10, 1994 of the Securities Exchange J. Patrick Barrett Act of 1934, this report has been signed below by By /s/ Thomas D. Bell, Jr. March 10, 1994 the following Directors Thomas D. Bell, Jr of LNC on the date indicated. By /s/ Daniel R. Efroymson March 10, 1994 Daniel R. Efroymson
By /s/ Harry L. Kavetas March 10, 1994 Harry L. Kavetas
By /s/ M. Leanne Lachman March 10, 1994 M. Leanne Lachman
By /s/ Leo J. McKernan March 10, 1994 Leo J. McKernan
By /s/ Earl L. Neal March 10, 1994 Earl L. Neal
By /s/ John M. Pietruski March 10, 1994 John M. Pietruski
By /s/ Jill S. Ruckelshaus March 10, 1994 Jill S. Ruckelshaus
By /s/ Gordon A. Walker March 10, 1994 Gordon A. Walker
By /s/ Gilbert R. Whitaker,Jr. March 10, 1994 Gilbert R. Whitaker,Jr.