SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
AGENTS' SAVINGS AND PROFIT-SHARING PLAN
(full title of the Plan)
[Current Reg. No. 33-04711]
Lincoln National Corporation
200 East Berry Street
Fort Wayne, Indiana 46802
(name of Issuer and principal executive office)
-i-
<PAGE>
Form 11-K
LNC Agents' Savings and Profit Sharing Plan
TABLE OF CONTENTS
Page
Facing Sheet i
Financial Statements 1
Signature 16
-ii-
<PAGE>
Annual Report on Form 11-K
Financial Statements
Year Ended December 31, 1994
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Fort Wayne, Indiana
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Financial Statements
Years ended December 31, 1994, 1993 and 1992
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
-iii-
<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 Life Insurance Company Agents' 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 each of
the three years in the period ended December 31, 1994. 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 each of the three years in the period ended December 31,
1994, in conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
March 10, 1995
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<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
<TABLE>
<CAPTION>
Statements of Net Assets Available for Plan Benefits
December 31
1994 1993
<S> <C> <C>
Assets
Investments (Notes 3, 7 and 8):
Common stock-Lincoln National Corporation
(cost: 1994-$24,599,109; 1993-$19,799,192) $28,245,385 $30,625,566
Segregated investment accounts-The Lincoln
National Life Insurance Company Separate
Accounts (cost: 1994-$15,974,421;
1993-$12,740,656) 19,372,295 17,039,061
Unallocated insurance contracts-The Lincoln
National Life Insurance Company 10,725,398 10,431,214
Participant loans 2,809,857 2,761,764
Total investments 61,152,935 60,857,605
Accrued interest receivable 5,640 6,509
Cash and invested cash 495,281 326,609
Other receivables -- 51,905
Contributions receivable-
The Lincoln National Life Insurance Company 2,829,134 3,206,975
Total assets 64,482,990 64,449,603
Miscellaneous payables 84,871 30,367
Net assets available for plan benefits $64,398,119 $64,419,236
See accompanying notes.
</TABLE>
-2-
<PAGE>
<TABLE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
<CAPTION>
Statements of Changes in Net Assets Available for Plan Benefits
Year ended December 31
1994 1993 1992
<S> <C> <C> <C>
Investment income:
Cash dividends-Lincoln National
Corporation $ 1,239,781 $ 1,031,836 $ 960,231
Interest:
The Lincoln National Life
Insurance Company 746,163 665,851 703,971
Other 227,602 252,487 247,825
Total interest 973,765 918,338 951,796
Total investment income 2,213,546 1,950,174 1,912,027
Net realized gain on sale, distribution
and forfeitures of investments (Note 3):
Common stock-Lincoln National
Corporation 694,283 1,422,975 948,569
Segregated investment accounts-
The Lincoln National Life Insurance
Company Separate Accounts 704,323 424,288 402,143
Total net realized gain on sale 1,398,606 1,847,263 1,350,712
Net unrealized appreciation
(depreciation) of investments (Note 3) (8,080,629) 3,742,424 5,754,416
Contributions:
Agents 4,603,511 4,364,477 3,700,880
The Lincoln National Life Insurance
Company (net of forfeitures:
1994-$3,355; 1993-$323; 1992-$1,238) 3,351,434 3,806,346 2,988,118
Total contributions 7,954,945 8,170,823 6,688,998
Distributions to participants
(deduction) (3,413,968) (3,823,008) ( 2,674,106)
Administrative expenses
(deduction) (Note 7) (93,617) (56,171) --
Net increase (decrease) in net assets
available for plan benefits (21,117) 11,831,505 13,032,047
Net assets available for plan
benefits at beginning of the year 64,419,236 52,587,731 39,555,684
Net assets available for plan
benefit at end of the year $64,398,119 $64,419,236 $52,587,731
See accompanying notes.
-3-
</TABLE>
<PAGE>
The Lincoln National Life Insurance Company
Agents' 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 the The Lincoln National Life Insurance Company Agents' 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 under the contract 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
average cost method.
2. Description of the Plan
The Plan is a contributory, defined contribution plan which covers eligible
agents of the Company. Any person 21 years of age or older who is a full-time
agent of the Company is eligible to enroll in the Plan if the agent has
completed one eligibility year of service as defined in the Plan agreement. A
participant may make pre-tax contributions at a rate of at least 1%, but not
more than 15% of earned commissions, up to a maximum annual amount as
determined and adjusted annually by the Internal Revenue Service ("IRS").
Prior to January 1, 1989, the Plan accepted after-tax contributions at rates
as defined in the Plan agreement.
Participants direct the Plan to invest their contributions in any combination
of the investment options as described in Note 4. Participants can direct
employer contributions, but only after the contributions have been in the Plan
for two full plan years following the plan year for which they were
contributed.
-4-
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
The Company's contributions to the Plan are based on an amount equal to a
participant's contributions, not to exceed 6% of eligible earnings, 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 Company's contributions are invested in the LNC Common Stock
Fund. Agents are fully vested in their contributions. The Company
contributions vest based upon years of service as defined in the Plan
agreement as follows:
Years of Service Percent Vested
1 0%
2 50%
3 or more 100%
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
pre-tax account plus the retirement option account, less the highest
outstanding loan balance in the previous twelve month period.
The Company has the right under the Plan to discontinue contributions at any
time and terminate the Plan. In the event of termination of the Plan, all
amounts allocated to participants' accounts shall become vested.
-5-
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. Investment
<TABLE>
The following is a summary of assets held for investment:
December 31, 1994 December 31, 1993
Number of Market Number of Market
Shares Value Shares Value
<S> <C> <C> <C> <C>
Common stock-Lincoln
National Corporation 807,011 $28,245,385 704,036 $30,625,566
Segregated investment
accounts-The Lincoln
National Life Insurance
Company Separate
Accounts:
U.S. Government
Bond Fund 473,960.551 603,684 555,928.450 718,722
Core Equity Fund 1,219,492.936 6,136,775 1,246,703.712 6,172,485
Medium Capitalization
Equity Fund 816,126.469 4,774,932 743,490.277 4,484,882
Short-Term Fund 450,952.570 1,117,774 558,333.482 1,331,690
Government/Corporate
Bond Fund 214,023.379 856,606 234,598.932 977,581
Large Capitalization
Equity Fund 992,370.701 3,692,555 872,313.615 3,353,701
Balanced Fund 39,585.942 126,049 -- --
High Yield Bond Fund 50,940.273 81,173 -- --
Small Capitalization
Equity Fund 150,548.518 401,161 -- --
Value Equity Fund 217,759.920 229,030 -- --
International
Equity Fund 327,689.633 1,352,556 -- --
Total segregated
investment accounts 19,372,295 17,039,061
</TABLE>
-6-
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
<TABLE>
3. Investments (continued)
December 31, 1994 December 31, 1993
Par Market Par Market
Amount Value Amount Value
<S> <C> <C> <C> <C>
Unallocated insurance
contracts-The Lincoln
National Life Insurance
Company $10,725,398 $10,725,398 $10,431,214 $10,431,214
Participant loans 2,809,857 2,809,857 2,761,764 2,761,764
Total investments $61,152,935 $60,857,605
</TABLE>
<TABLE>
Net realized gain on sale, distribution and forfeitures of investments is
summarized as follows:
Year ended December 31
1994 1993 1992
<S> <C> <C> <C>
Common stock:
Proceeds from disposition of stock $6,145,172 $4,695,158 $7,041,177
Cost of stock disposed 5,450,889 3,272,183 6,092,608
Net realized gain on sale, distribution
and forfeitures of common stock $ 694,283 $1,422,975 $ 948,569
Segregated investment accounts:
Proceeds from disposition of units $4,329,973 $3,664,248 $3,154,773
Cost of units disposed 3,625,650 3,239,960 2,752,630
Net realized gain on sale, distribution
and forfeitures of common stock $ 704,323 $ 424,288 $ 402,143
</TABLE>
-7-
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. Investments (continued)
<TABLE>
The net unrealized appreciation (depreciation) of investments in total and by
investment classification is summarized as follows:
Year ended December 31
1994 1993 1992
<S> <C> <C> <C>
Market value in excess of cost:
At beginning of the year $15,124,779 $11,382,355 $ 5,627,939
At end of the year 7,044,150 15,124,779 11,382,355
Net unrealized appreciation
(depreciation) of investments $(8,080,629) $ 3,742,424 $ 5,754,416
Common stock $(7,180,098) $ 2,819,868 $ 5,370,972
Segregated investment accounts (900,531) 922,556 383,444
Net unrealized appreciation
(depreciation) of investments $(8,080,629) $ 3,742,424 $ 5,754,416
</TABLE>
-8-
<PAGE>
SEE PAGES 9 TO 11 FOLLOWING PAGE 15
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
4. Investment Options (continued)
Information with respect to investment options is as follows:
Option Description of Investment Option
1 LNC Common Stock Fund, which invests exclusively in
the stock of Lincoln National Corporation.
2 U.S. Government Bond Fund, which invests primarily
in bonds backed by the United States government that
will mature in 3 to 5 years.
3 Guaranteed Fund, which invests primarily in
contracts which guarantee a rate of return and
principal.
4 Core Equity Fund, which invests primarily in large
capitalization stocks of well-established companies.
5 Medium Capitalization Equity Fund, which invests
primarily in medium-sized companies.
6 Short-Term Fund, which invests in high quality money
market securities that include commercial paper,
bankers acceptances, certificates of deposit, loan
participation and short-term U.S. government debt.
7 Government/Corporate Bond Fund, which invests
primarily in corporate and U.S. government bonds and
mortgage-backed securities.
8 Large Capitalization Equity Fund, which invests
primarily in high-risk common stocks which have the
potential for a significant appreciation in value
within 18 months from the date of purchase.
-12-
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
4. Investment Options (continued)
Option Description of Investment Option
9 Balanced Fund, which 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 invests primarily in
below-investment-grade bonds, providing higher rates
of return to compensate higher risk.
11 Small Capitalization Equity Fund, which 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 invests primarily
in stocks of non-United States companies.
The information as to the number of agents selecting each investment option is
not readily available. Beginning January 1, 1994, the Plan began offering
investment options 9 through 13 noted above to participants.
Interest charged on new loans to participants is established monthly based
upon prevailing rates for similar loans. Loans are repaid over five or ten
year periods depending on the purpose of the loan or when a participant
withdraws from the Plan.
5. Income Tax Status
The IRS ruled (February 9, 1995) that the Plan qualifies as defined by Section
401(a) of the Internal Revenue Code ("IRC") and, therefore, is not subject to
tax under the present income tax laws. Further, the Plan is required to
operate in conformity with the IRC to maintain its qualification. 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.
-13-
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
6. Tax Implications to Participating Agents
There are no income tax consequences to participating agents arising from
their pre-tax contributions, the Company's contributions and income earned in
the Plan until actual distribution or withdrawal from the Plan. The tax basis
of securities distributed to the agent is provided by the Lincoln National
Corporation Benefits Investment Committee.
7. Related Parties Transactions
All investments held by the Plan and related investment transactions, except
for short-term cash investments, were with the Company. Prior to January 1,
1993, the Company provided certain administrative services at no cost to the
Plan. In 1993, the Company began charging for administrative services to the
Plan. Expenses incurred solely for the LNC Stock Fund are charged directly to
the LNC Stock Fund while all other administrative expenses are charged to
earnings of the other investment options based upon the market value of the
respective funds applicable to each investment option. The Plan incurred
administrative expenses of $93,617 and $56,171 in 1994 and 1993, respectively,
charged by the Company.
8. Concentrations of Credit Risks
The Plan has investments in common stock of LNC, and in segregated investment
accounts and unallocated insurance contracts with the Company of $28,245,385,
$19,372,295 and $10,725,398, respectively, at December 31, 1994 (43.9%, 30.1%
and 16.7% of net assets, respectively). LNC and the Company operate
predominately in the insurance industry.
-14-
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
9. Reconciliation of Financial Statements to 1994 Form 5500
<TABLE>
The following is a reconciliation of net assets available for plan benefits
per the financial statements to the 1994 Form 5500:
December 31
1994 1993
<S> <C> <C>
Net assets available for plan
benefits per the financial statements $64,398,119 $64,419,236
Amounts allocated to withdrawing participants (450,814) (289,810)
Net assets available for plan
benefits per the 1994 Form 5500 $63,947,305 $64,129,426
</TABLE>
<TABLE>
The following is a reconciliation of distributions to participants per the
financial statements to the 1994 Form 5500:
Year ended
December 31, 1994
<S> <C>
Distributions to participants per the financial statements $3,413,968
Add amounts allocated to withdrawing
participants at December 31, 1994 450,814
Deduct amounts allocated to withdrawing
participants at December 31, 1993 (289,810)
Distributions to participants per the 1994 Form 5500 $3,574,972
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for distributions that have been processed and approved for payment prior to
year-end but have not yet been paid.
The Plan reported on the 1994 Form 5500 net realized losses and net unrealized
depreciation of $2,369,251 (unaudited) and $4,312,772 (unaudited),
respectively, for the year ended December 31, 1994. Such amounts, which
differ from the amounts reported herein, were computed in accordance with the
requirements of the Department of Labor.
-15-
<PAGE>
PAGES 9 - 11
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
4. 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
<S> <C> <C> <C>
Assets
Investments:
Common stock $28,245,385 $28,245,385
Segregated investment accounts 19,372,295 $603,684
Unallocated insurance contracts 10,725,398
Participant loans 2,809,857
Total investments 61,152,935 28,245,385 603,684
Accrued interest receivable 5,640
Cash and invested cash 495,281 87,428
Contribution receivable-
The Lincoln National Life
Insurance Company 2,829,134 2,829,134
Total assets 64,482,990 31,161,947 603,684
Miscellaneous payables (84,871) (33,439)
Net assets available for plan benefits $64,398,119 $31,128,508 $603,684
</TABLE>
<TABLE>
3 4 5
<S> <C> <C> <C>
Assets
Investments:
Common stock
Segregated investment accounts $6,136,775 $4,774,932
Unallocated insurance contracts $10,725,398
Participant loans
Total investments 10,725,398 6,136,775 4,774,932
Accrued interest receivable
Cash and invested cash 262,880 39,223 55,801
Contribution receivable-
The Lincoln National Life
Insurance Company
Total assets 10,988,278 6,175,998 4,830,733
Miscellaneous payables (210) (8,497) (16,823)
Net assets available for plan benefits $10,988,068 $6,167,501 $4,813,910
</TABLE>
<TABLE>
6 7 8
<S> <C> <C> <C>
Assets
Investments:
Common stock
Segregated investment accounts $1,117,774 $856,606 $3,692,555
Unallocated insurance contracts
Participant loans
Total investments 1,117,774 856,606 3,692,555
Accrued interest receivable
Cash and invested cash 1,422 32,506
Contribution receivable-
The Lincoln National Life
Insurance Company
Total assets 1,119,196 856,606 3,725,061
Miscellaneous payables (9,881)
Net assets available for plan benefits $1,119,196 $856,606 $3,715,180
</TABLE>
<TABLE>
9 10 11
<S> <C> <C> <C>
Assets
Investments:
Common stock
Segregated investment accounts $126,049 $81,173 $401,161
Unallocated insurance contracts
Participant loans
Total investments 126,049 81,173 401,161
Accrued interest receivable
Cash and invested cash 2,000 3,000
Contribution receivable-
The Lincoln National Life
Insurance Company
Total assets 126,049 83,173 404,161
Miscellaneous payables (2,000) (3,000)
Net assets available for plan benefits $126,049 $81,173 $401,161
</TABLE>
<TABLE>
12 13 Loans
<S> <C> <C> <C>
Assets
Investments:
Common stock
Segregated investment accounts $229,030 $1,352,556
Unallocated insurance contracts
Participant loans $2,809,857
Total investments 229,030 1,352,556 2,809,857
Accrued interest receivable 5,640
Cash and invested cash 2,999 8,022
Contribution receivable-
The Lincoln National Life
Insurance Company
Total assets 229,030 1,355,555 2,823,519
Miscellaneous payables (2,999) (8,022)
Net assets available for plan benefits $229,030 $1,352,556 $2,815,497
</TABLE>
<TABLE>
December 31, 1993
Investment Options
Total 1 2
<S> <C> <C> <C>
Assets
Investments:
Common stock $30,625,566 $30,625,566
Segregated investment accounts 17,039,061 $718,722
Unallocated insurance contracts 10,431,214
Participant loans 2,761,764
Total investments 60,857,605 30,625,566 718,722
Accrued interest receivable 6,509
Cash and invested cash (overdraft) 326,609 117,647 (1,502)
Other receivables 51,905 43,853 1,502
Contribution receivable-
The Lincoln National Life
Insurance Company 3,206,975 3,206,975
Total assets 64,449,603 33,994,041 718,722
Miscellaneous payables (30,367) (30,367)
Net assets available for plan benefits $64,419,236 $33,963,674 $718,722
</TABLE>
<TABLE>
3 4 5
<S> <C> <C> <C>
Assets
Investments:
Common stock
Segregated investment accounts $6,172,485 $4,484,882
Unallocated insurance contracts $10,431,214
Participant loans
Total investments 10,431,214 6,172,485 4,484,882
Accrued interest receivable
Cash and invested cash (overdraft) (270) 172,119 (2,354)
Other receivables 270 415 2,354
Contribution receivable-
The Lincoln National Life
Insurance Company
Total assets 10,431,214 6,345,019 4,484,882
Miscellaneous payables -- -- --
Net assets available for plan benefits $10,431,214 $6,345,019 $4,484,882
</TABLE>
<TABLE>
6 7 8
<S> <C> <C> <C>
Assets
Investments:
Common stock
Segregated investment accounts $1,331,690 $997,581 $3,353,701
Unallocated insurance contracts
Participant loans
Total investments 1,331,690 997,581 3,353,701
Accrued interest receivable
Cash and invested cash (overdraft) (1,011) (1,002) (1,495)
Other receivables 1,011 1,002 1,495
Contribution receivable-
The Lincoln National Life
Insurance Company
Total assets 1,331,690 997,581 3,353,701
Miscellaneous payables -- -- --
Net assets available for plan benefits $1,331,690 $997,581 $3,353,701
</TABLE>
<TABLE>
Loans
<S> <C>
Assets
Investments:
Common stock
Segregated investment accounts
Unallocated insurance contracts
Participant loans $2,761,764
Total investments 2,761,764
Accrued interest receivable 6,509
Cash and invested cash (overdraft) 44,477
Other receivables 3
Contribution receivable-
The Lincoln National Life
Insurance Company
Total assets 2,812,753
Miscellaneous payables
Net assets available for plan benefits $2,812,753
</TABLE>
-9-
<PAGE>
4. 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
<S> <C> <C> <C>
Investment income:
Cash dividends $ 1,239,781 $ 1,239,781
Interest 973,765
Total investment income 2,213,546 1,239,781
Net realized gain (loss) on sale,
distribution and forfeitures
of investments:
Common stock 694,283 694,283
Segregated investment accounts 704,323 $ 16,784
Total net realized gain (loss) 1,398,606 694,283 16,784
Net unrealized appreciation (depreciation)
of investments (8,080,629) (7,180,098) (26,448)
Contributions:
Agents 4,603,511 1,176,997 50,527
The Lincoln National Life Insurance Company 3,351,434 3,351,434
Total contributions 7,954,945 4,528,431 50,527
Distributions to participants (deduction) (3,413,968) (1,771,486) (84,469)
Administrative expenses (deduction) (93,617) (78,744) (317)
Net transfers (deduction) -- (267,333) (71,115)
Net increase (decrease) in net assets
available for plan benefits (21,117) (2,835,166) (115,038)
Net assets available for plan benefits
at beginning of the year 64,419,236 33,963,674 718,722
Net assets available for plan benefits
at end of the year $64,398,119 $31,128,508 $603,684
</TABLE>
<TABLE>
3 4 5
<S> <C> <C> <C>
Investment income:
Cash dividends
Interest $ 746,163
Total investment income 746,163
Net realized gain (loss) on sale,
distribution and forfeitures of investments:
Common stock
Segregated investment accounts $ 279,387 $ 226,810
Total realized gain (loss) 279,387 226,810
Net unrealized appreciation (depreciation)
of investments (169,276) (373,844)
Contributions:
Agents 432,329 725,798 765,034
The Lincoln National Life Insurance Company
Total Contributions 432,329 725,798 765,034
Distributions to participants (deduction) (623,233) (393,695) (193,109)
Administrative expenses (deduction) (5,563) (3,107) (2,411)
Net transfers (deduction) 7,158 (616,625) (93,452)
Net increase (decrease) in net assets
available for plan benefits 556,854 (177,518) 329,028
Net assets available for plan benefits
at beginning of the year 10,431,214 6,345,019 4,484,882
Net assets available for plan benefits
at end of the year $10,988,068 $6,167,501 $4,813,910
</TABLE>
<TABLE>
6 7 8
<S> <C> <C> <C>
Investment income:
Cash dividends
Interest
Total investment income
Net realized gain (loss) on sale,
distribution and forfeitures of investments:
Common stock
Segregated investment accounts $ 65,801 $ 41,814 $ 73,006
Total net realized gain (loss) 65,801 41,814 73,006
Net unrealized appreciation (depreciation)
of investments (19,300) (78,492) (194,754)
Contributions:
Agents 139,329 125,867 778,686
The Lincoln National Life Insurance Company
Total Contributions 139,329 125,867 778,686
Distributions to participants (deduction) (20,387) (109,478) (121,048)
Administrative expenses (deduction) (620) (448) (1,818)
Net transfers (deduction) (377,317) (100,238) (172,593)
Net increase (decrease) in net assets
available for plan benefits (212,494) (120,975) 361,479
Net assets available for plan benefits
at beginning of the year 1,331,690 977,581 3,353,701
Net assets available for plan benefits
at end of the year $1,119,196 $856,606 $3,715,180
</TABLE>
<TABLE>
9 10 11
<S> <C> <C> <C>
Investment income:
Cash dividends
Interest
Total investment income
Net realized gain (loss) on sale,
distribution and forfeitures of investments:
Common stock
Segregated investment accounts $ 11 $ 21 $ 30
Total net realized gain (loss) 11 21 30
Net unrealized appreciation (depreciation)
of investments 306 1,456 (2,408)
Contributions:
Agents 20,754 14,032 90,582
The Lincoln National Life Insurance Company
Total Contributions 20,754 14,032 90,582
Distributions to participants (deduction) (25) (15) (361)
Administrative expenses (deduction) (48) (11) (111)
Net transfers (deduction) 105,051 65,690 313,429
Net increase (decrease) in net assets
available for plan benefits 126,049 81,173 401,161
Net assets available for plan benefits
at beginning of the year -- -- --
Net assets available for plan benefits
at end of the year $126,049 $81,173 $401,161
</TABLE>
<TABLE>
12 13 Loans
<S> <C> <C> <C>
Investment income:
Cash dividends
Interest $ 227,602
Total investment income 227,602
Net realized gain (loss) on sale,
distribution and forfeitures of investments:
Common stock
Segregated investment accounts $ 831 $ (172)
Total net realized gain (loss) 831 (172)
Net unrealized appreciation (depreciation)
of investments 7,160 (44,931)
Contributions:
Agents 30,701 252,875
The Lincoln National Life Insurance Company
Total Contributions 30,701 252,875
Distributions to participants (deduction) (658) (96,004)
Administrative expenses (deduction) (59) (360)
Net transfers (deduction) 190,397 1,145,802 (128,854)
Net increase (decrease) in net assets
available for plan benefits 229,030 1,352,556 2,744
Net assets available for plan benefits
at beginning of the year -- -- 2,812,753
Net assets available for plan benefits
at end of the year $229,030 $1,352,556 $2,815,497
</TABLE>
<TABLE>
Year ended December 31, 1993
Investment Options
Total 1 2
<S> <C> <C> <C>
Investment income:
Cash dividends $1,031,836 $1,031,836
Interest 918,338
Total investment income 1,950,174 1,031,836
Net realized gain on sale, distribution
and forfeitures of investments:
Common stock 1,422,975 1,422,975
Segregated investment accounts 424,288 $ 30,713
Total net realized gain 1,847,263 1,422,975 30,713
Net unrealized appreciation
(depreciation) of investments 3,742,424 2,819,868 13,065
Contributions:
Agents 4,364,477 1,246,320 70,397
The Lincoln National Life Insurance Company 3,806,346 3,806,346
Total Contributions 8,170,823 5,052,666 70,397
Distributions to participants (deduction) (3,823,008) (2,085,728) (96,162)
Administrative expenses (deduction) (56,171) (40,293) (445)
Net transfers (deduction) (310,428) (36,902)
Net increase (decrease) in net available
for plan benefits 11,831,505 7,890,896 (19,334)
Net assets available for plan benefits at
beginning of the year 52,587,731 26,072,778 738,056
Net assets available for plan benefits at
end of the year $64,419,236 $33,963,674 $718,722
</TABLE>
<TABLE>
3 4 5
<S> <C> <C> <C>
Investment income:
Cash dividends
Interest $ 665,851
Total investment income 665,851
Net realized gain on sale, distribution
and forfeitures of investments:
Common stock
Segregated investment accounts $ 134,993 $ 119,958
Net realized gain 134,993 119,958
Net unrealized appreciation
(depreciation) of investments 436,205 198,293
Contributions:
Agents 631,515 831,779 725,553
The Lincoln National Life Insurance Company
Total Contributions 631,515 831,779 725,553
Distributions to participants (deduction) (1,084,881) (5,515) (269,254)
Administrative expenses (deduction) (6,248) (3,562) (2,409)
Net transfers (deduction) 86,793 (229,862) 197,840
Net increase (decrease) in net available
for plan benefits 293,030 1,164,038 969,981
Net assets available for plan benefits at
beginning of the year 10,138,184 5,180,981 3,514,901
Net assets available for plan benefits at
end of the year $10,431,214 $6,345,019 $4,484,882
</TABLE>
<TABLE>
6 7 8
<S> <C> <C> <C>
Investment income:
Cash dividends
Interest
Total investment income
Net realized gain on sale, distribution
and forfeitures of investments:
Common stock
Segregated investment accounts $ 36,281 $ 46,491 $ 55,852
Total net realized gain 36,281 46,491 55,852
Net unrealized appreciation
(depreciation) of investments (11,404) 49,764 236,633
Contributions:
Agents 93,977 129,777 635,159
The Lincoln National Life Insurance Company
Total Contributions 93,977 129,777 635,159
Distributions to participants (deduction) (34,161) (52,390) (25,732)
Administrative expenses (deduction) (828) (578) (1,808)
Net transfers (deduction) (256,081) (94,229) 334,227
Net increase (decrease) in net available
for plan benefits (172,216) 78,835 1,234,331
Net assets available for plan benefits at
beginning of the year 1,503,906 898,746 2,119,370
Net assets available for plan benefits at
end of the year $1,331,690 $977,581 $3,353,701
</TABLE>
<TABLE>
Loans
<S> <C>
Investment income:
Cash dividends
Interest $ 252,487
Total investment income 252,487
Net realized gain on sale, distribution
and forfeitures of investments:
Common stock
Segregated investment accounts
Net unrealized appreciation (depreciation)
of investments
Contributions:
Agents
The Lincoln National Life Insurance Company
Total Contributions
Distributions to participants (deduction) (169,185)
Administrative expenses (deduction)
Net transfers (deduction) 308,642
Net increase (decrease) in net available
for plan benefits 391,944
Net assets available for plan benefits at
beginning of the year 2,420,809
Net assets available for plan benefits at
end of the year $2,812,753
</TABLE>
-10-
<PAGE>
4. 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, 1992
Investment Options
Total 1 2 3
<S> <C> <C> <C> <C>
Investment income:
Cash dividends $ 960,231 $ 960,231
Interest 951,796 $ 703,971
Total investment income 1,912,027 960,231 703,971
Net realized gain on sale,
distribution and forfeitures
of investments:
Common stock 948,569 948,569
Segregated investment accounts 402,143 $ 25,857
Total net realized gain 1,350,712 948,569 25,857
Net unrealized appreciation
(depreciation) of investments 5,754,416 5,370,972 18,469
Contributions:
Agents 3,700,880 1,101,494 53,782 634,157
The Lincoln National Life
Insurance Company 2,988,118 2,988,118
Total Contributions 6,688,998 4,089,612 53,782 634,157
Distributions to participants
(deduction) (2,674,106) (1,341,691) (37,650) (683,002)
Net transfers (deduction) (2,488,136) 25,335 1,391,747
Net increase in net assets
available for plan benefits 13,032,047 7,539,557 85,793 2,046,873
Net assets available for
plan benefits at beginning
of the year 39,555,684 18,533,221 652,263 8,091,311
Net assets available for
plan benefits at end of
the year $52,587,731 $26,072,778 $738,056 $10,138,184
</TABLE>
<TABLE>
4 5 6 7
<S> <C> <C> <C> <C>
Investment income:
Cash dividends
Interest
Total investment income
Net realized gain on sale,
distribution and forfeitures
of investments:
Common stock
Segregated investment accounts $ 119,044 $ 140,906 $ 59,197 $ 34,831
Total net realized gain 119,044 140,906 59,197 34,831
Net unrealized appreciation
(depreciation) of investments (7,000) 245,940 (7,590) 18,577
Contributions:
Agents 793,120 444,698 118,822 96,678
The Lincoln National Life
Insurance Company
Total Contributions 793,120 444,698 118,822 96,678
Distributions to participants
(deduction) (158,122) (126,437) (112,517) (42,182)
Net transfers (deduction) 370,346 131,015 (911) 113,907
Net increase in net assets
available for plan benefits 1,117,388 836,122 57,001 221,811
Net assets available for plan
benefits at beginning of
the year 4,063,593 2,678,779 1,446,905 676,935
Net assets available for plan
benefits at end of the year $5,180,981 $3,514,901 $1,503,906 $898,746
</TABLE>
<TABLE>
8 Loans
<S> <C> <C>
Investment income:
Cash dividends
Interest $ 247,825
Total investment income 247,825
Net realized gain on sale, distribution
and forfeitures of investments:
Common stock
Segregated investment accounts $ 22,308
Total net realized gain 22,308
Net unrealized appreciation (depreciation)
of investments 115,048
Contributions:
Agents 458,129
The Lincoln National Life Insurance Company
Total Contributions 458,129
Distributions to participants (deduction) (36,655) (135,850)
Net transfers (deduction) 499,355 (42,658)
Net increase in net assets
available for plan benefits 1,058,185 69,317
Net assets available for plan benefits at
beginning of the year 1,061,185 2,351,492
Net assets available for plan benefits
at end of the year $2,119,370 $2,420,809
</TABLE>
-11-
<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.
THE LINCOLN NATIONAL LIFE INSURANCE
COMPANY AGENTS' SAVINGS AND PROFIT
SHARING PLAN
3/30/95 /S/ H. THOMAS MCMEEKIN
Date:_______________ _____________________________
H. Thomas McMeekin, Chairman
Lincoln National Corporation
Benefits Investment Committee
