As filed with the Securities and Exchange Commission on June 28, 1995.
Reg. No. 33-52667
_________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the Fiscal Year ended December 31, 1994
LINCOLN NATIONAL CORPORATION
EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN
(Full title of Plan)
[Current Reg. No. 33-52667]
LINCOLN NATIONAL CORPORATION
200 East Berry Street
Fort Wayne, Indiana 46802
(Name of Issuer and Principal Executive Office)
<PAGE>
FORM 11-K
LNC Employees' Savings and Profit-sharing Plan
TABLE OF CONTENTS
Facing Sheet
Financial Statements
Signature
Exhibit 23--Consent of Ernst & Young LLP, Independent Auditors
<PAGE>
Annual Report on Form 11-K
Financial Statements and Schedules
LINCOLN NATIONAL CORPORATION
EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN
Years ended December 31, 1994 and 1993 with Report of Independent Auditors
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Financial Statements and Schedules
Years ended December 31, 1994 and 1993
CONTENTS
Report of Independent Auditors 1
Audited Financial Statements
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4
Schedules
Schedule of Assets Held for Investment Purposes 13
Schedule of Reportable Transactions 14
<PAGE>
Report of Independent Auditors
Lincoln National Corporation Benefits Investment Committee
Lincoln National Corporation
We have audited the accompanying statements of net assets available for plan
benefits of the Lincoln National Corporation Employees' Savings and Profit-
Sharing Plan as of December 31, 1994 and 1993, and the related statements of
changes in net assets available for plan benefits for the years then ended.
These financial statements are the responsibility of the Plan's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan
at December 31, 1994 and 1993, and the changes in its net assets available for
plan benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of
assets held for investment purposes as of December 31, 1994, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The supplemental schedules
have been subjected to the auditing procedures applied in our audit of the
1994 financial statements and, in our opinion, are fairly stated in all
material respects in relation to the 1994 financial statements taken as a
whole.
Ernst & Young LLP
May 11, 1995
Fort Wayne, Indiana
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Statements of Net Assets Available for Plan Benefits
<TABLE>
DECEMBER 31
1994 1993
ASSETS
Investments:
<S> <C> <C>
Common stock-Lincoln National Corporation $116,039,665 $121,614,473
Segregated investment accounts-The Lincoln
National Life Insurance Company
Separate Accounts 65,760,304 62,731,354
Unallocated insurance contracts-The
Lincoln National Life Insurance Company 69,684,213 69,470,758
Participant loans 13,924,114 12,531,124
Total investments 265,408,296 266,347,709
Cash and invested cash 1,196,474 652,380
Accrued interest receivable 25,736 21,983
Other receivables 465,068 5,688
Contributions receivable from
participating employers 13,963,381 16,057,426
Total assets 281,058,955 283,085,186
LIABILITIES-miscellaneous payables 88,581 79,740
Net assets available for plan benefits $280,970,374 $283,005,446
See accompanying notes.
</TABLE>
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
<TABLE>
Statements of Changes in Net Assets Available for Plan Benefits
YEAR ENDED DECEMBER 31
1994 1993
Additions:
<S> <C> <C>
Net realized and unrealized appreciation
(depreciation) in fair value of
investments $(27,159,152) $21,012,918
Investment income:
Cash dividends-Lincoln National Corporation 5,031,135 3,962,702
Interest:
The Lincoln National Life
Insurance Company 4,732,210 4,183,697
Other 1,023,746 913,923
Total interest 5,755,956 5,097,620
Total investment income 10,787,091 9,060,322
Contributions:
Employees 18,773,777 19,955,821
Participating employers (net of
forfeitures: 1994-$20,070;
1993-$429) 16,932,992 19,461,088
Total contributions 35,706,769 39,416,909
Total additions 19,334,708 69,490,149
Deductions:
Distributions to participants (21,082,240) (18,540,545)
Administrative expenses (287,540) (209,161)
Total deductions (21,369,780) (18,749,706)
Net increase (decrease) in net assets
available for plan benefits (2,035,072) 50,740,443
Net assets available for plan benefits
at beginning of the year 283,005,446 232,265,003
Net assets available for plan benefits
at end of the year $280,970,374 $283,005,446
See accompanying notes.
</TABLE>
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Notes to Financial Statements
December 31, 1994
1. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
The investment in Lincoln National Corporation ("LNC") common stock is valued
at the last reported sales price per the national securities exchange on the
last business day of the year. The fair value of the participation units
owned by Lincoln National Corporation Employees' Savings and Profit Sharing
Plan ("Plan") in segregated investment accounts is based on quoted redemption
value on the last business day of the year.
The unallocated insurance contracts are valued at contract value as estimated
by The Lincoln National Life Insurance Company ("Company"). Contract value
represents net contributions made plus interest at the contract rate.
Participant loans are valued at cost which approximates fair value.
The cost of investments sold, distributed or forfeited is determined using the
specific identification method.
2. DESCRIPTION OF THE PLAN
The Plan is a contributory, defined contribution plan which covers eligible
employees of LNC and several of its subsidiaries ("Employer Companies"). Any
person 21 years of age or older who is an employee of the Employer Companies
is eligible to enroll in the Plan if the person has been employed by the
Employer Companies for at least one year. A participant may make pre-tax
contributions at a rate of at least 1%, but not more than 15% of compensation,
up to a maximum annual amount as determined and adjusted annually by the
Internal Revenue Service ("IRS").
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
The participants are fully vested in their contributions and direct the Plan
to invest their contributions in any combination of the investment options as
described in Note 3. Participants can direct employer contributions, but only
after the contributions have been in the Plan for two full plan years
following the year for which they were contributed.
The Employer Companies contribute to the Plan an amount equal to a
participant's contributions, not to exceed 6%, multiplied by a percentage,
ranging from 25% to 150%, which varies according to LNC's increase in book
value in relation to similar companies in the insurance industry. The
Employer Companies contributions are invested in the LNC Common Stock Fund.
The Employer Companies contributions vest based upon years of service as
defined in the Plan document as follows:
Years of Service Percent Vested
1 0%
2 50%
3 or more 100%
During 1995, the Board of Directors of LNC approved a new employer
contribution formula which will be effective for the 1997 plan year. The new
formula gives the Board of Directors authorization to make a discretionary
change in the percentage used to compute the Employer Companies contribution.
In transition, the Employer Companies contribution for 1995 will be based on
the new formula; however, the amount contributed cannot be less than the
contributions calculated in accordance with the employer contribution formula
defined above.
The Plan allows loans to participants in amounts up to 50% of the vested
account value to a maximum of $50,000 but not more than the total value of the
participant's accounts excluding employer contributions that haven't been in
the Plan for two full years, less the highest outstanding loan balance in the
previous twelve month period.
The Employer Companies have the right in accordance with the Plan to
discontinue contributions at any time and terminate participation in the Plan.
In the event of termination of the Plan, all amounts allocated to
participants' accounts shall become vested.
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. Investment Options
<TABLE>
The detail of the net assets available for plan benefits by investment option is as follows:
December 31, 1994
Investment Options
Total 1 2 3 4
Assets
Investments:
<S> <C> <C> <C> <C> <C>
Common stock-LNC $116,039,665 $116,039,665
Segregated investment accounts 65,760,304 $8,116,181 $15,662,431
Unallocated insurance contracts 69,684,213 $69,684,213
Participant loans 13,924,114
Total investments 265,408,296 116,039,665 8,116,181 69,684,213 5,662,431
Cash and invested cash (overdrafts) 1,196,474 1,010,411 13,251 123,040 (4,266)
Accrued interest receivable 25,736
Other receivables 465,068 36,684 3,730 273,416 59,236
Contributions receivable from
participating employers 13,963,381 13,963,381
Total assets 281,058,955 131,050,141 8,133,162 70,080,669 15,717,401
Liabilities-miscellaneous payables 88,581 70,985
Net assets available for plan benefits $280,970,374 $130,979,156 $8,133,162 $70,080,669 $15,717,401
</TABLE>
<TABLE>
5 6 7 8 9
Assets
Investments:
<S> <C> <C> <C> <C> <C>
Common stock-LNC
Segregated investment accounts $ 16,060,131 $ 7,005,554 $5,658,315 $ 9,234,735 $ 532,843
Unallocated insurance contracts
Participant loans
Total investments 16,060,131 7,005,554 5,658,315 9,234,735 532,843
Cash and invested cash (overdrafts) 7,957 (40,808) 19,415 14,541 46,433
Accrued interest receivable
Other receivables 40,424 43,603 514 597
Contributions receivable from
participating employers
Total assets 16,108,512 7,008,349 5,677,730 9,249,790 579,873
Liabilities-miscellaneous payables 12,383
Net assets available for plan benefits $ 16,108,512 $ 7,008,349 $5,665,347 $ 9,249,790 $ 579,873
</TABLE>
<TABLE>
10 11 12 13 Loans
Assets
Investments:
<S> <C> <C> <C> <C> <C>
Common stock-LNC
Segregated investment accounts $ 187,725 $ 787,447 $ 617,234 $ 1,897,708
Unallocated insurance contracts
Participant loans $13,924,114
Total investments 187,725 787,447 617,234 1,897,708 13,924,114
Cash and invested cash (overdrafts) 2,394 156 4,273 1,313 (1,636)
Accrued interest receivable 25,736
Other receivables 714 4,514 1,636
Contributions receivable from
participating employers
Total assets 190,119 788,317 621,507 1,903,535 13,949,850
Liabilities-miscellaneous payables 2,394 2,819
Net assets available for plan benefits $ 187,725 $ 788,317 $ 618,688 $ 1,903,535 $13,949,850
</TABLE>
<TABLE>
December 31, 1993
Investment Options
Total 1 2 3 4
Assets
Investments:
<S> <C> <C> <C> <C> <C>
Common stock-LNC $121,614,473 $121,614,473
Segregated investment accounts 62,731,354 $9,191,780 $15,472,793
Unallocated insurance contracts 69,470,758 $69,470,758
Participant loans 12,531,124
Total investments 266,347,709 121,614,473 9,191,780 69,470,758 15,472,793
Cash and invested cash (overdrafts) 652,380 654,516 2,175 (389) (2,955)
Accrued interest receivable 21,983
Other receivables 5,688 389 2,955
Contributions receivable from
participating employers 16,057,426 16,057,426
Total assets 283,085,186 138,326,415 9,193,955 69,470,758 15,472,793
Liabilities-miscellaneous payables 79,740 76,188 2,175
Net assets available for plan benefits $283,005,446 $138,250,227 $9,191,780 $69,470,758 $15,472,793
</TABLE>
<TABLE>
5 6 7 8 Loans
Assets
Investments:
<S> <C> <C> <C> <C> <C>
Common stock-LNC
Segregated investment accounts $ 15,645,674 $ 7,583,670 $6,133,839 $ 8,703,598
Unallocated insurance contracts
Participant loans $12,531,124
Total investments 15,645,674 7,583,670 6,133,839 8,703,598 12,531,124
Cash and invested cash (overdrafts) (878) 1,377 (251) (1,215)
Accrued interest receivable 21,983
Other receivables 878 251 1,215
Contributions receivable from
participating employers
Total assets 15,645,674 7,585,047 6,133,839 8,703,598 12,553,107
Liabilities-miscellaneous payables 1,377
Net assets available for plan benefits $ 15,645,674 $ 7,583,670 $6,133,839 $ 8,703,598 $12,553,107
</TABLE>
<PAGE>
3. Investment Options (continued)
<TABLE>
The detail of the changes in net assets available for plan benefits by investment option is as follows:
Year ended December 31, 1994
Investment Options
Total 1 2 3 4
Additions:
<S> <C> <C> <C> <C> <C>
Net realized and unrealized
appreciation (depreciation)
in fair value of investments $(27,159,152) $(26,530,162) $ (132,920) $ 252,063
Investment income:
Cash dividends 5,031,135 5,031,135
Interest 5,755,956 $4,732,210
Total investment income 10,787,091 5,031,135 4,732,210
Contributions:
Employees 18,773,777 5,503,603 687,192 4,174,286 1,886,377
Participating employers
(net of forfeitures) 16,932,992 16,932,992
Total contributions 35,706,769 22,436,595 687,192 4,174,286 1,886,377
Total additions 19,334,708 937,568 554,272 8,906,496 2,138,440
Deductions:
Distributions to participants (21,082,240) (8,934,755) (582,550) (7,395,098) (1,061,237)
Administration expenses (287,540) (268,102) (1,254) (10,032) (2,247)
Net transfers (deductions) 994,218 (1,029,086) (891,455) (830,348)
Total deductions (21,369,780) (8,208,639) (1,612,890) (8,296,585) (1,893,832)
Net increase (decrease) in net assets
available for plan benefits (2,035,072) (7,271,071) (1,058,618) 609,911 244,608
Net assets available for plan benefits at
beginning of the year 283,005,446 138,250,227 9,191,780 69,470,758 15,472,793
Net assets available for plan benefits
at end of the year $280,970,374 $130,979,156 $8,133,162 $70,080,669 $15,717,401
</TABLE>
<TABLE>
5 6 7 8 9
Additions:
<S> <C> <C> <C> <C> <C>
Net realized and unrealized
appreciation (depreciation)
in fair value of investments $ (445,649) $ 277,250 $ (239,319) $ (296,077) $ 3,042
Investment income:
Cash dividends
Interest
Contributions:
Employees 2,387,322 509,064 756,164 1,748,974 224,271
Participating employers
(net of forfeitures)
Total contributions 2,387,322 509,064 756,164 1,748,974 224,271
Total additions 1,941,673 786,314 516,845 1,452,897 227,313
Deductions:
Distributions to participants (990,193) (497,042) (284,535) (579,465) (1,071)
Administration expenses (2,299) (1,070) (845) (1,337) (55)
Net transfers (deductions) (486,343) (863,523) (699,957) (325,903) 353,686
Total deductions (1,478,835) (1,361,635) (985,337) (906,705) 352,560
Net increase (decrease) in net assets
available for plan benefits 462,838 (575,321) (468,492) 546,192 579,873
Net assets available for plan benefits at
beginning of the year 15,645,674 7,583,670 6,133,839 8,703,598
Net assets available for plan benefits
at end of the year $16,108,512 $7,008,349 $5,665,347 $9,249,790 $ 579,873
</TABLE>
<TABLE>
10 11 12 13 Loans
Additions:
<S> <C> <C> <C> <C> <C>
Net realized and unrealized
appreciation (depreciation)
in fair value of investments $ 4,847 $ 1,336 $ 18,681 $ (72,244)
Investment income:
Cash dividends
Interest $ 1,023,746
Total investment income 1,023,746
Contributions:
Employees 72,431 222,076 162,450 439,567
Participating employers
(net of forfeitures)
Total contributions 72,431 222,076 162,450 439,567
Total additions 77,278 223,412 181,131 367,323 1,023,746
Deductions:
Distributions to participants (4,619) (8,405) (21,158) (15,175) (706,937)
Administration expenses (17) (68) (47) (167)
Net transfers (deductions) 115,083 573,378 458,762 1,551,554 1,079,934
Total deductions 110,447 564,905 437,557 1,536,212 372,997
Net increase (decrease) in net assets
available for plan benefits 187,725 788,317 618,688 1,903,535 1,396,743
Net assets available for plan benefits at
beginning of the year 12,553,107
Net assets available for plan benefits
at end of the year $ 187,725 $ 788,317 $ 618,688 $ 1,903,535 $13,949,850
</TABLE>
<PAGE>
3. Investment Options (continued)
<TABLE>
The detail of the changes in net assets available for plan benefits by investment option is as follows:
Year ended December 31, 1993
Investment Options
Total 1 2 3 4
Additions:
<S> <C> <C> <C> <C> <C>
Net realized and unrealized appreciation
in fair value of investments $ 21,012,918 $ 16,230,433 $ 589,138 $ 1,355,753
Investment income:
Cash dividends 3,962,702 3,962,702
Interest 5,097,620 $ 4,183,697
Total investment income 9,060,322 3,962,702 4,183,697
Contributions:
Employees 19,955,821 5,684,745 910,152 5,822,423 2,131,334
Participating employers
(net of forfeitures) 19,461,088 19,461,088
Total contributions 39,416,909 25,145,833 910,152 5,822,423 2,131,334
Total additions 69,490,149 45,338,968 1,499,290 10,006,120 3,487,087
Deductions:
Distributions to participants (18,540,545) (7,433,040) (625,725) (7,605,890) (879,566)
Administration expenses (209,161) (187,861) (1,586) (11,523) (2,362)
Net transfers (deductions) 156,511 (1,143,565) (379,408) 397,839
Total deductions (18,749,706) (7,464,390) (1,770,876) (7,996,821) (484,089)
Net increase (decrease) in net assets
available for plan benefits 50,740,443 37,874,578 (271,586) 2,009,299 3,002,998
Net assets available for plan benefits at
beginning of the year 232,265,003 100,375,649 9,463,366 67,461,459 12,469,795
Net assets available for plan benefits
at end of the year $283,005,446 $138,250,227 $9,191,780 $69,470,758 $15,472,793
</TABLE>
<TABLE>
5 6 7 8 LOANS
Additions:
<S> <C> <C> <C> <C> <C>
Net realized and unrealized appreciation
in fair value of investments $ 1,297,126 $ 168,314 $ 622,849 $ 749,305
Investment income:
Cash dividends
Interest $ 913,923
Total interest 913,923
Contributions:
Employees 2,243,230 823,880 678,880 1,661,177
Participating employers
(net of forfeitures)
Total contributions 2,243,230 823,880 678,880 1,661,177
Total additions 3,540,356 992,194 1,301,729 2,410,482 913,923
Deductions:
Distributions to participants (537,089) (458,314) (327,873) (311,095) (361,953)
Administration expenses (2,193) (1,394) (995) (1,247)
Net transfers (deductions) 815,265 (2,073,403) (163,723) 723,684 1,666,800
Total deductions 275,983 (2,533,111) (492,591) 411,342 1,304,847
Net increase (decrease) in net assets
available for plan benefits 3,816,339 (1,540,917) 809,138 2,821,824 2,218,770
Net assets available for plan benefits at
beginning of the year 11,829,335 9,124,587 5,324,701 5,881,774 10,334,337
Net assets available for plan benefits
at end of the year $ 15,645,674 $ 7,583,670 $6,133,839 $ 8,703,598 $12,553,107
</TABLE>
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. INVESTMENT OPTIONS (CONTINUED)
Information with respect to investment options is as follows:
Option Description of Investment Option
1 LNC Common Stock Fund, which invests primarily in shares
of Lincoln National Corporation's common stock;
2 Government Bond Fund, which directly or indirectly invests
primarily in fixed income securities issued by the United States
Government;
3 Guaranteed Fund, which invests primarily in contracts which
guarantee a rate of return and principal;
4 Core Equity Fund, which directly or indirectly invests
primarily in the common stock of established companies;
5 Medium Capitalization Equity Fund, which directly or
indirectly invests primarily in the stock of new, rapid
growth companies;
6 Short-Term Fund, which directly or indirectly invests
primarily in notes of government agencies and private
corporations;
7 Government/Corporate Bond Fund, which directly or indirectly
invests primarily in corporate and U.S. government bonds and
mortgage-backed securities;
8 Large Capitalization Equity Fund, which directly or indirectly
invests primarily in high-risk common stocks which have the
potential for a significant appreciation in value over an 18
to 24 month period;
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. INVESTMENT OPTIONS (CONTINUED)
9 Balanced Fund, which directly or indirectly invests in three
different asset classes: stocks, bonds and money market
instruments, which provides growth through the stock portion
and reduced risk through the bond and money market portion;
10 High Yield Bond Fund, which directly or indirectly invests
primarily in below-investment-grade bonds, providing higher
rates of return to compensate higher risk;
11 Small Capitalization Equity Fund, which directly or indirectly
invests primarily in the stock of new, rapid growth companies;
12 Value Equity Fund, which invests primarily in large
capitalization stocks of undervalued companies that are
industry leaders;
13 International Equity Fund, which directly or indirectly invests
primarily in stocks of non-United States companies;
Beginning January 1, 1994, the Plan began offering investment options 9
through 13 to participants. Investment options 2 through 13 are provided by a
group annuity contract issued by the Company.
Interest charged on new loans to participants is established monthly based
upon prevailing rates for similar loans. Loans are repaid over 1, 3, 5, 10,
15 or 20 year periods depending on the purpose of the loan or when a
participant withdraws from the Plan.
4. INCOME TAX STATUS
The Plan has received a determination letter from the IRS dated February 9,
1995, stating that the Plan qualifies under Section 401(a) of the Internal
Revenue Code of 1986 ("Code") and, therefore, is exempt from taxation. Once
qualified, the Plan is required to operate in conformity with the Code and the
Employee Retirement Income Security Act of 1974 to maintain its tax-exempt
status. The Plan's administrator is not aware of any course of action or
series of events that have occurred that might adversely affect the Plan's
qualified status.
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
5. TRANSACTIONS WITH PARTIES-IN-INTEREST
All investments held by the Plan and related investment transactions, except
for short-term cash investments, were with the Employer Companies.
Administrative expenses incurred solely for the LNC Common Stock Fund are
charged directly to the LNC Common Stock Fund while all other administrative
expenses are charged to earnings of all the investment options based upon the
market value of the respective funds applicable to each investment option.
6. CONCENTRATIONS OF CREDIT RISK
The Plan has investments in common stock of LNC, segregated investment
accounts and unallocated insurance contracts with the Company of $116,039,665,
$65,760,304 and $69,684,213, respectively, at December 31, 1994 (41.3%, 23.4%
and 24.8% of net assets, respectively). LNC and the Company operate
predominately in the insurance industry.
7. SALE OF LNC SUBSIDIARY
Effective February 2, 1994, LNC completed the sale of Security-Connecticut
Corporation, one of the Employer Companies. As a result of the sale,
$8,570,156 of the Plan's assets were transferred to another plan.
8. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
<TABLE>
The following is a reconciliation of net assets available for plan benefits
per the financial statements to Form 5500:
1994 1993
<S> <C> <C>
Net assets available for plan
benefits per the financial statements $280,970,374 $283,005,446
Amounts allocated to withdrawing participants (1,089,639) (232,652)
Net assets available for plan
benefits per Form 5500 $279,880,735 $282,772,794
</TABLE>
<PAGE>
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
8. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 (CONTINUED)
<TABLE>
The following is a reconciliation of distributions to participants per the
financial statements to Form 5500:
1994 1993
<S> <C> <C>
Distributions to participants per the
financial statements $21,082,240 $18,540,545
Amounts allocated to withdrawing participants
at end of the year 1,089,639 232,652
Less amounts allocated to withdrawing
participants at beginning of the year (232,652) (523,938)
Distributions to participants per Form 5500 $21,939,227 $18,249,259
</TABLE>
Amounts allocated to withdrawing participants are recorded on Form 5500 for
distributions that have been processed and approved for payment prior to year
end but have not yet been paid.
<PAGE>
SCHEDULES
<PAGE>
Item 27a
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
(C)
DESCRIPTION OF INVESTMENT
(B) INCLUDING MATURITY (E)
IDENTITY OF ISSUE, BORROWER, DATE, RATE OF INTEREST, (D) CURRENT
LESSOR OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
<S> <C> <C> <C>
Common stock-
Lincoln National Corporation 3,315,419 shares $104,711,194 $116,039,665
Segregated investment
accounts-The Lincoln
National Life Insurance
Company Separate Accounts:
Government Bond Fund 6,372,124.444 participation units 6,919,276 8,116,181
Core Equity Fund 3,112,420.358 participation units 12,064,114 15,662,431
Medium Capitalization Equity Fund 2,744,981.286 participation units 11,910,546 16,060,131
Short-Term Fund 2,826,306.368 participation units 6,114,018 7,005,554
Government/Corporate Bond Fund 1,413,732.635 participation units 4,619,104 5,658,315
Large Capitalization Equity Fund 2,481,826.577 participation units 8,340,211 9,234,735
Balanced Fund 167,339.894 participation units 530,240 532,843
High Yield Bond Fund 117,807.683 participation units 182,994 187,725
Small Capitalization Equity Fund 295,514.561 participation units 785,490 787,447
Value Equity Fund 586,862.055 participation units 599,611 617,234
International Equity Fund 459,766.062 participation units 1,967,513 1,897,708
54,033,117 65,760,304
Unallocated insurance contracts-
The Lincoln National Life
Insurance Company 69,684,213 69,684,213
Participant loans Various loans at interest rates
varying from 6.5% to 12.5%
due from 1995 to 2004. 13,924,114 13,924,114
$242,352,638 $265,408,296
</TABLE>
<PAGE>
Item 27d
Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan
<TABLE>
Schedule of Reportable Transactions
Year ended December 31, 1994
(h)
Current Value (i)
(a) (c) (d) (g) of Assets on Net
Identity of (b) Purchase Selling Cost of Transaction Gain
Party Involved Description of Assets Price Price Assets Date (Loss)
<S> <C> <C> <C> <C> <C> <C>
Category (iii)
Norwest Bank Lincoln National Corporation shares of
common stock:
Purchases $50,180,404 $50,180,404 $50,180,404
Sales $29,225,050 26,634,286 29,225,050 $2,590,764
The Lincoln Segregated investment account-The Lincoln
National Life National Life Insurance Company Separate
Insurance Accounts:
Company Purchases 18,062,772 18,062,772 18,062,772
Sales 14,404,832 11,806,235 14,404,832 2,598,597
The Lincoln Unallocated insurance contracts-The Lincoln
National Life National Life Insurance Company:
Insurance Purchases 20,562,015 20,562,015 20,562,015
Company Sales 20,348,560 20,348,560 20,348,560
Note: Columns (e) and (f), and categories (i), (ii) and (iv) are not applicable.
</TABLE>
<PAGE>
SIGNATURE
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of
1934, the Members of the Lincoln National Corporation Benefits Investment
Committee have duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
LINCOLN NATIONAL CORPORATION EMPLOYEES'
SAVINGS AND PROFIT-SHARING PLAN
6/22/95 /S/ H. THOMAS MCMEEKIN
Date:_____________________ ______________________________
H. Thomas McMeekin, Chairman
Lincoln National Corporation
Benefits Investment Committee
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 33-52667) pertaining to the Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan of our report dated May 11, 1995,
with respect to the financial statements of the Lincoln National Corporation
Employees' Savings and Profit-Sharing Plan included in this Annual Report
(Form 11-K) for the year ended December 31, 1994.
/S/ Ernst & Young LLP
Fort Wayne, Indiana
June 26, 1995
