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, 1995
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
-ii-
<PAGE>
Annual Report on Form 11-K
Financial Statements
Year Ended December 31, 1995
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Fort Wayne, Indiana
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Financial Statements
Years ended December 31, 1995, 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
<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, 1995 and 1994, 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, 1995. 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, 1995 and 1994, and the changes in its net assets available for
plan benefits for each of the three years in the period ended December 31,
1995, in conformity with generally accepted accounting principles.
Ernst & Young LLP
March 6, 1996
Fort Wayne, Indiana
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Statements of Net Assets Available for Plan Benefits
December 31
1995 1994
Assets
Investments:
Common stock-Lincoln National Corporation
(cost: 1995-$28,178,295; 1994-$24,599,109) $44,791,273 $28,245,385
Segregated investment accounts--The
Lincoln National Life Insurance
Company Separate Accounts
(cost: 1995-$19,546,015; 1994-$15,974,421) 28,142,841 19,372,295
Unallocated insurance contracts--The Lincoln
National Life Insurance Company 10,955,545 10,725,398
Participant loans 3,317,440 2,809,857
Total investments 87,207,099 61,152,935
Accrued interest receivable 6,216 5,640
Cash and invested cash (deficit) (90,446) 495,281
Other receivables 194,104 --
Contributions receivable The Lincoln
National Life Insurance Company 2,656,985 2,829,134
Total assets 89,973,958 64,482,990
Miscellaneous payables 23,104 84,871
Net assets available for plan benefits $89,950,854 $64,398,119
See accompanying notes.
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Statements of Changes in Net Assets Available for Plan Benefits
Year ended December 31
1995 1994 1993
Investment income:
Cash dividends-Lincoln
National Corporation $1,414,060 $1,239,781 $1,031,836
Interest:
The Lincoln National
Life Insurance Company 841,750 746,163 665,851
Other 246,464 227,602 252,487
Total interest 1,088,214 973,765 918,338
Total investment income 2,502,274 2,213,546 1,950,174
Net realized gain on sale, distribution
and forfeitures of investments:
Common stock-Lincoln
National Corporation 2,236,343 694,283 1,422,975
Segregated investment accounts-The
Lincoln National Life Insurance
Company Separate Accounts 864,428 704,323 424,288
Total net realized gain on sale 3,100,771 1,398,606 1,847,263
Net unrealized appreciation
(depreciation) of investments 18,165,654 (8,080,629) 3,742,424
Contributions:
Agents 4,724,597 4,603,511 4,364,477
The Lincoln National Life Insurance
Company (net of forfeitures: 1995-
$6,078; 1994-$3,355; 1993-$323) 3,087,927 3,351,434 3,806,346
Total contributions 7,812,524 7,954,945 8,170,823
Distributions to
participants (deduction) (5,949,349) (3,413,968) (3,823,008)
Administrative expenses (deduction) (79,139) (93,617) (56,171)
Net increase (decrease) in net assets
available for plan benefits 25,552,735 (21,117) 11,831,505
Net assets available for plan
benefits at beginning of the year 64,398,119 64,419,236 52,587,731
Net assets available for plan
benefits at end of the year $89,950,854 $64,398,119 $64,419,236
See accompanying notes.
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements
December 31, 1995
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 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 Lincoln National Life Insurance Company Agents' Savings and Profit-Sharing
Plan ("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").
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.
<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%
During 1995, the Board of Directors of the Company approved a new 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 Company's contribution. In transition, the
Company's contribution for 1996 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 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.
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. Investments
The following is a summary of assets held for investment:
<TABLE>
<CAPTION>
December 31, 1995 December 31, 1994
Number of Market Number of Market
Shares Value Shares Value
<S> <C> <C> <C> <C>
Common stock-LNC 833,326 $44,791,273 807,011 $28,245,385
Segregated investment
accounts with the Company:
Government Bond Fund 388,827.030 562,704 473,960.551 603,684
Core Equity Fund 1,264,092.105 8,773,122 1,219,492.936 6,136,775
Medium Capitalization
Equity Fund 899,403.376 7,117,250 816,126.469 4,774,932
Short-Term Fund 407,724.196 1,068,759 450,952.570 1,117,774
Government/Corporate
Bond Fund 239,667.620 1,151,219 214,023.379 856,606
Large Capitalization
Equity Fund 1,054,128.353 5,127,004 992,370.701 3,692,555
Balanced Fund 44,201.747 177,252 39,585.942 126,049
High Yield Bond Fund 78,023.346 146,681 50,940.273 81,173
Small Capitalization
Equity Fund 320,513.868 998,577 150,548.518 401,161
Value Equity Fund 455,888.394 626,101 217,759.920 229,030
International
Equity Fund 521,418.540 2,394,172 327,689.633 1,352,556
Total segregated
investment accounts 28,142,841 19,372,295
Par Par
Amount Amount
Unallocated insurance
contracts-with
the Company $10,955,545 10,955,545 $10,725,398 10,725,398
Participant loans 3,317,440 3,317,440 2,809,857 2,809,857
Total investments $87,207,099 $61,152,935
</TABLE>
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. Investments (continued)
Net realized gain on sale, distribution and forfeitures of investments is
summarized as follows:
Year ended December 31
1995 1994 1993
Common stock:
Proceeds from disposition of stock $10,013,495 $6,145,172 $4,695,158
Cost of stock disposed 7,777,152 5,450,889 3,272,183
Net realized gain on sale, distribution
and forfeitures of common stock $ 2,236,343 $ 694,283 $1,422,975
Segregated investment accounts:
Proceeds from disposition of units $ 4,627,606 $4,329,973 $3,664,248
Cost of units disposed 3,763,178 3,625,650 3,239,960
Net realized gain on sale, distribution
and forfeitures of common stock $ 864,428 $ 704,323 $ 424,288
The net unrealized appreciation (depreciation) of investments in total and by
investment classification is summarized as follows:
Year ended December 31
1995 1994 1993
Market value in excess of cost:
At beginning of the year $ 7,044,150 $15,124,779 $11,382,355
At end of the year 25,209,804 7,044,150 15,124,779
Net unrealized appreciation
(depreciation) of investments $18,165,654 $(8,080,629) $ 3,742,424
Common stock $12,966,702 $(7,180,098) $ 2,819,868
Segregated investment accounts 5,198,952 (900,531) 922,556
Net unrealized appreciation
(depreciation) of investments $18,165,654 $(8,080,629) $3,742,424
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
3. Investments (continued)
The unallocated insurance contracts earned an average interest rate of
approximately 6.75% and 7.16% in 1995 and 1994, respectively. The credited
interest rate for new contributions, which approximates the current market
rate, at December 31, 1995 and 1994, were 6.25% and 7.50%, respectively. The
rate on new contributions is guaranteed through the succeeding three calendar
year quarters. The credited interest rates for the remaining contract value
balance at December 31, 1995 and 1994 were 6.90% and 7.15%, respectively, and
are determined based upon the performance of the Company's general account.
The credited interest rates change at least quarterly. The minimum guaranteed
rate is 4.50% for the first 5 contract years, 4.00% for years 6-10 and 3.50%
following year 10. The guarantee is based on the Company's ability to meet its
financial obligations out of the general assets of the Company. The fair
value of the unallocated insurance contracts approximate contract value.
<TABLE>
4. Investment Options
The detail of the net assets available for plan benefits by investment option is as follows:
<CAPTION>
December 31, 1995
Investment Options
Total 1 2 3 4
Assets
Investments:
<S> <C> <C> <C> <C> <C>
Common stock $44,791,273 $44,791,273
Segregated investment accounts 28,142,841 $ 562,704 $8,773,122
Unallocated insurance contracts 10,955,545 $10,955,545
Participant loans 3,317,440
Total investments 87,207,099 44,791,273 562,704 10,955,545 8,773,122
Accrued interest receivable 6,216
Cash and invested cash (deficit) (90,446) 39,365 (14,122) 7,636 (13,848)
Other receivables 194,104 14,122 44,548 25,957
Contribution receivable 2,656,985 2,656,985
Total assets 89,973,958 47,487,623 562,704 11,007,729 8,785,231
Miscellaneous payables 23,104 23,104
Net assets available for plan benefits $89,950,854 $47,464,519 $ 562,704 $11,007,729 $8,785,231
5 6 7 8 9
Assets
Investments:
Common stock
Segregated investment accounts $ 7,117,250 $ 1,068,759 $1,151,219 $ 5,127,004 $ 177,252
Unallocated insurance contracts
Participant loans
Total investments 7,117,250 1,068,759 1,151,219 5,127,004 177,252
Accrued interest receivable
Cash and invested cash (deficit) (15,181) (29,147) (9,218) (23,108) (201)
Other receivables 15,181 29,147 9,218 23,108 201
Contribution receivable
Total assets 7,117,250 1,068,759 1,151,219 5,127,004 177,252
Miscellaneous payables
Net assets available for plan benefits $ 7,117,250 $ 1,068,759 $1,151,219 $ 5,127,004 $ 177,252
10 11 12 13 Loans
Assets
Investments:
Common stock
Segregated investment accounts $ 146,681 $ 998,577 $ 626,101 $ 2,394,172
Unallocated insurance contracts
Participant loans $3,317,440
Total investments 146,681 998,577 626,101 2,394,172 3,317,440
Accrued interest receivable 6,216
Cash and invested cash (deficit) (2,308) (11,809) (5,410) (13,095)
Other receivables 2,308 11,809 5,410 13,095
Contribution receivable
Total assets 146,681 998,577 626,101 2,394,172 3,323,656
Miscellaneous payables
Net assets available for plan benefits $ 146,681 $ 998,577 $ 626,101 $ 2,394,172 $3,323,656
December 31, 1994
Investment Options
Total 1 2 3 4
Assets
Investments:
Common stock $28,245,385 $28,245,385
Segregated investment accounts 19,372,295 $ 603,684 $6,136,775
Unallocated insurance contracts 10,725,398 $10,725,398
Participant loans 2,809,857
Total investments 61,152,935 28,245,385 603,684 10,725,398 6,136,775
Accrued interest receivable 5,640
Cash and invested cash 495,281 87,428 262,880 39,223
Contribution receivable 2,829,134 2,829,134
Total assets 64,482,990 31,161,947 603,684 10,988,278 6,175,998
Miscellaneous payables 84,871 33,439 210 8,497
Net assets available for plan benefits $64,398,119 $31,128,508 $603,684 $10,988,068 $6,167,501
5 6 7 8 9
Assets
Investments:
Common stock
Segregated investment accounts $ 4,774,932 $ 1,117,774 $ 856,606 $ 3,692,555 $ 126,049
Unallocated insurance contracts
Participant loans
Total investments 4,774,932 1,117,774 856,606 3,692,555 126,049
Accrued interest receivable
Cash and invested cash 55,801 1,422 32,506
Contribution receivable
Total assets 4,830,733 1,119,196 856,606 3,725,061 126,049
Miscellaneous payables 16,823 9,881
Net assets available for plan benefits $4,813,910 $1,119,196 $856,606 $3,715,180 $126,049
10 11 12 13 Loans
Assets
Investments:
Common stock
Segregated investment accounts $ 81,173 $ 401,161 $ 229,030 $ 1,352,556
Unallocated insurance contracts
Participant loans $2,809,857
Total investments 81,173 401,161 229,030 1,352,556 2,809,857
Accrued interest receivable 5,640
Cash and invested cash 2,000 3,000 2,999 8,022
Contribution receivable
Total assets 83,173 404,161 229,030 1,355,555 2,823,519
Miscellaneous payables 2,000 3,000 2,999 8,022
Net assets available for plan benefits $ 81,173 $ 401,161 $ 229,030 $ 1,352,556 $2,815,497
<PAGE>
4. Investment Options (continued)
The detail of the changes in net assets available for plan benefits by investment option is as follows:
Year ended December 31, 1995
Investment Options
Total 1 2 3 4
Investment income:
Cash dividends $ 1,414,060 $ 1,414,060
Interest 1,088,214 $ 841,750
Total investment income 2,502,274 1,414,060 841,750
Net realized gain on sale, distri-
bution and forfeitures of investments:
Common stock 2,236,343 2,236,343
Segregated investment accounts 864,428 $ 23,782 $ 254,878
Net realized gain on sale 3,100,771 2,236,343 23,782 254,878
Net unrealized appreciation of investments 18,165,654 12,966,702 51,735 2,075,087
Contributions:
Agents 4,724,597 1,031,057 28,085 444,269 564,727
The Lincoln National
Life Insurance Company 3,087,927 3,087,927
Total contributions 7,812,524 4,118,984 28,085 444,269 564,727
Distributions to participants (deduction) (5,949,349) (3,084,570) (49,394) (1,235,196) (387,089)
Administrative expenses (deduction) (79,139) (62,984) (310) (5,320) (3,289)
Net transfers (deduction) -- (1,252,524) (94,878) (25,842) 113,416
Net increase (decrease) in net assets
available for plan benefits 25,552,735 16,336,011 (40,980) 19,661 2,617,730
Net assets available for plan
benefits at beginning of the year 64,398,119 31,128,508 603,684 10,988,068 6,167,501
Net assets available for plan
benefits at end of the year $89,950,854 $47,464,519 $ 562,704 $11,007,729 $8,785,231
5 6 7 8 9
Investment income:
Cash dividends
Interest
Total investment income
Net realized gain on sale, distri-
bution and forfeitures of investments:
Common stock
Segregated investment accounts $ 302,908 $ 38,216 $ 36,634 $ 166,663 $ 4,767
Net realized gain on sale 302,908 38,216 36,634 166,663 4,767
Net unrealized appreciation of investments 1,473,852 28,481 140,554 1,009,582 28,318
Contributions:
Agents 718,984 31,138 91,685 650,298 50,131
The Lincoln National
Life Insurance Company
Total contributions 718,984 31,138 91,685 650,298 50,131
Distributions to participants (deduction) (431,930) (148,671) (36,650) (245,114) (23,412)
Administrative expenses (deduction) (2,723) (599) (454) (2,079) (68)
Net transfers (deduction) 242,249 998 62,844 (167,526) (8,533)
Net increase (decrease) in net assets
available for plan benefits 2,303,340 (50,437) 294,613 1,411,824 51,203
Net assets available for plan
benefits at beginning of the year 4,813,910 1,119,196 856,606 3,715,180 126,049
Net assets available for plan
benefits at end of the year $ 7,117,250 $ 1,068,759 $1,151,219 $ 5,127,004 $ 177,252
10 11 12 13 Loans
Investment income:
Cash dividends
Interest $ 246,464
Total investment income 246,464
Net realized gain on sale, distri-
bution and forfeitures of investments:
Common stock
Segregated investment accounts $ 1,322 $ 15,881 $ 7,592 $ 11,785
Net realized gain on sale 1,322 15,881 7,592 11,785
Net unrealized appreciation of investments 11,398 83,069 109,101 187,775
Contributions:
Agents 32,280 326,608 193,369 561,966
The Lincoln National
Life Insurance Company
Total contributions 32,280 326,608 193,369 561,966
Distributions to participants (deduction) (3,412) (42,492) (39,639) (91,402) (130,378)
Administrative expenses (deduction) (33) (289) (160) (831)
Net transfers (deduction) 23,953 214,639 126,808 372,323 392,073
Net increase (decrease) in net assets
available for plan benefits 65,508 597,416 397,071 1,041,616 508,159
Net assets available for plan
benefits at beginning of the year 81,173 401,161 229,030 1,352,556 2,815,497
Net assets available for plan
benefits at end of the year $ 146,681 $ 998,577 $ 626,101 $ 2,394,172 $3,323,656
</TABLE>
<TABLE>
Year ended December 31, 1994
Investment Options
Total 1 2 3 4
<S> <C> <C> <C> <C> <C>
Investment income:
Cash dividends $ 1,239,781 $ 1,239,781
Interest 973,765 $ 746,163
Total investment income 2,213,546 1,239,781 746,163
Net realized gain (loss) on sale, distri-
bution and forfeitures of investments:
Common stock 694,283 694,283
Segregated investment accounts 704,323 $ 16,784 $ 279,387
Total net realized gain on sale 1,398,606 694,283 16,784 279,387
Net unrealized appreciation
(depreciation) of investments (8,080,629) (7,180,098) (26,448) (169,276)
Contributions:
Agents 4,603,511 1,176,997 50,527 432,329 725,798
The Lincoln National
Life Insurance Company 3,351,434 3,351,434
Total contributions 7,954,945 4,528,431 50,527 432,329 725,798
Distributions to participants (deduction) (3,413,968) (1,771,486) (84,469) (623,233) (393,695)
Administrative expenses (deduction) (93,617) (78,744) (317) (5,563) (3,107)
Net transfers (deduction) -- (267,333) (71,115) 7,158 (616,625)
Net increase (decrease) in net
assets available for plan benefits (21,117) (2,835,166) (115,038) 556,854 (177,518)
Net assets available for plan
benefits at beginning of the year 64,419,236 33,963,674 718,722 10,431,214 6,345,019
Net assets available for plan
benefits at end of the year $64,398,119 $31,128,508 $ 603,684 $10,988,068 $6,167,501
5 6 7 8 9
Investment income:
Cash dividends
Interest
Total investment income
Net realized gain (loss) on sale, distri-
bution and forfeitures of investments:
Common stock
Segregated investment accounts $ 226,810 $ 65,801 $ 41,814 $ 73,006 $ 11
Total net realized gain on sale 226,810 65,801 41,814 73,006 11
Net unrealized appreciation
(depreciation) of investments (373,844) (19,300) (78,492) (194,754) 306
Contributions:
Agents 765,034 139,329 125,867 778,686 20,754
The Lincoln National
Life Insurance Company
Total contributions 765,034 139,329 125,867 778,686 20,754
Distributions to participants (deduction) (193,109) (20,387) (109,478) (121,048) (25)
Administrative expenses (deduction) (2,411) (620) (448) (1,818) (48)
Net transfers (deduction) (93,452) (377,317) (100,238) (172,593) 105,051
Net increase (decrease) in net
assets available for plan benefits 329,028 (212,494) (120,975) 361,479 126,049
Net assets available for plan
benefits at beginning of the year 4,484,882 1,331,690 977,581 3,353,701 --
Net assets available for plan
benefits at end of the year $ 4,813,910 $ 1,119,196 $ 856,606 $ 3,715,180 $ 126,049
10 11 12 13 Loans
Investment income:
Cash dividends
Interest $ 227,602
Total investment income 227,602
Net realized gain (loss) on sale, distri-
bution and forfeitures of investments:
Common stock
Segregated investment accounts $ 21 $ 30 $ 831 $ (172)
Total net realized gain on sale 21 30 831 (172)
Net unrealized appreciation
(depreciation) of investments 1,456 (2,408) 7,160 (44,931)
Contributions:
Agents 14,032 90,582 30,701 252,875
The Lincoln National
Life Insurance Company
Total contributions 14,032 90,582 30,701 252,875
Distributions to participants (deduction) (15) (361) (658) (96,004)
Administrative expenses (deduction) (11) (111) (59) (360)
Net transfers (deduction) 65,690 313,429 190,397 1,145,802 (128,854)
Net increase (decrease) in net
assets available for plan benefits 81,173 401,161 229,030 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 $ 81,173 $ 401,161 $ 229,030 $ 1,352,556 $2,815,497
</TABLE>
<PAGE>
<TABLE>
4. Investment Options (continued)
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
Investment income:
<S> <C> <C> <C> <C> <C>
Cash dividends $ 1,031,836 $ 1,031,836
Interest 918,338 $ 665,851
Total investment income 1,950,174 1,031,836 665,851
Net realized gain on sale, distri-
bution and forfeitures of investments:
Common stock 1,422,975 1,422,975
Segregated investment accounts 424,288 $ 30,713 $ 134,993
Total net realized gain on sale 1,847,263 1,422,975 30,713 134,993
Net unrealized appreciation
(depreciation) of investments 3,742,424 2,819,868 13,065 436,205
Contributions:
Agents 4,364,477 1,246,320 70,397 631,515 831,779
The Lincoln National
Life Insurance Company 3,806,346 3,806,346
Total contributions 8,170,823 5,052,666 70,397 631,515 831,779
Distributions to participants (deduction) (3,823,008) (2,085,728) (96,162) (1,084,881) (5,515)
Administrative expenses (deduction) (56,171) (40,293) (445) (6,248) (3,562)
Net transfers (deduction) -- (310,428) (36,902) 86,793 (229,862)
Net increase (decrease) in net
available for plan benefits 11,831,505 7,890,896 (19,334) 293,030 1,164,038
Net assets available for plan
benefits at beginning of the year 52,587,731 26,072,778 738,056 10,138,184 5,180,981
Net assets available for plan
benefits at end of the year $64,419,236 $33,963,674 $ 718,722 $10,431,214 $6,345,019
5 6 7 8 Loans
Investment income:
Cash dividends
Interest $ 252,487
Total investment income 252,487
Net realized gain on sale, distri-
bution and forfeitures of investments:
Common stock
Segregated investment accounts $ 119,958 $ 36,281 $ 46,491 $ 55,852
Total net realized gain on sale 119,958 36,281 46,491 55,852
Net unrealized appreciation
(depreciation) of investments 198,293 (11,404) 49,764 236,633
Contributions:
Agents 725,553 93,977 129,777 635,159
The Lincoln National
Life Insurance Company
Total contributions 725,553 93,977 129,777 635,159
Distributions to participants (deduction) (269,254) (34,161) (52,390) (25,732) (169,185)
Administrative expenses (deduction) (2,409) (828) (578) (1,808)
Net transfers (deduction) 197,840 (256,081) (94,229) 334,227 308,642
Net increase (decrease) in net
available for plan benefits 969,981 (172,216) 78,835 1,234,331 391,944
Net assets available for plan
benefits at beginning of the year 3,514,901 1,503,906 898,746 2,119,370 2,420,809
Net assets available for plan
benefits at end of the year $ 4,484,882 $ 1,331,690 $ 977,581 $ 3,353,701 $2,812,753
</TABLE>
<PAGE>
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 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.
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
4. Investment Options (continued)
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. 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.
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 based on 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.
<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. Transactions with Parties-In-Interest
All investments held by the Plan and related investment transactions, except
for short-term cash investments, were with the Company. The Company charges
the Plan for administrative expenses which were $79,139, $93,617 and $56,171 in
1995, 1994 and 1993, respectively. 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.
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 $44,791,273,
$28,142,841 and $10,955,545, respectively, at December 31, 1995 (49.8%, 31.3%
and 12.2% of net assets, respectively). LNC and the Company operates
predominately in the insurance and investment management industries.
<PAGE>
The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan
Notes to Financial Statements (continued)
9. Reconciliation of Financial Statements to 1995 Form 5500
The following is a reconciliation of net assets available for plan benefits per
the financial statements to the 1995 Form 5500:
December 31
1995 1994
Net assets available for plan
benefits per the financial statements $89,950,854 $64,398,119
Amounts allocated to withdrawing participants (152,999) (450,814)
Net assets available for plan
benefits per the 1995 Form 5500 $89,797,855 $63,947,305
The following is a reconciliation of distributions to participants per the
financial statements to the 1995 Form 5500:
Year ended
December 31
1995
Distributions to participants per the financial statements $5,949,349
Add amounts allocated to withdrawing
participants at December 31, 1995 152,999
Deduct amounts allocated to withdrawing
participants at December 31, 1994 (450,814)
Distributions to participants per the 1995 Form 5500 $5,651,534
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 1995 Form 5500 net realized gain and net unrealized
appreciation of $1,385,510 (unaudited) and $19,880,915 (unaudited),
respectively, for the year ended December 31, 1995. Such amounts, which differ
from the amounts reported herein, were computed in accordance with the
requirements of the Department of Labor.
<PAGE>
SIGNATURE
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrator of the Plan has duly caused this annual report to be signed
on its behalf by the undersigned hereunto duly authorized.
March 29, 1996 /S/ FREDRICK P. FARKAS
______________________________________
Fredrick P. Farkas, Administrator
THE LINCOLN NATIONAL LIFE INSURANCE
COMPANY AGENTS' SAVINGS AND PROFIT-
SHARING PLAN
<PAGE>
March 29, 1996
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, NW
Washington, DC 20549
RE: Registration No. 033-04711
The Lincoln National Life Insurance Company Agents' Savings
and Profit-Sharing Plan Form 11-K Annual Report
Ladies and Gentlemen:
On behalf of The Lincoln National Life Insurance Company Agents'
Savings and Profit-Sharing Plan (the "Plan") and The Lincoln
National Life Insurance Company, and pursuant to Section 15(d) of
the Securities Exchange Act of 1934, we hereby file on the EDGAR
system our Form 11-K for the Plan. This Form is for the Plan's
fiscal year ended December 31, 1995.
Please note that a wire transfer to Mellon Bank of sufficient
amount to pay the $250 fee for this filing was effected under
Rule 202.3a on March 26, 1996. The CIK number for Lincoln
National Corporation is 0000059558. The Transfer was marked
"N" -- Nonrestricted.
If you have any questions or comments, please call me at
219-455-1263.
Sincerely,
Dennis L. Schoff
Assistant General Counsel
Enclosure
