LINCOLN NATIONAL CORP, 10-K, 2000-03-10

LINCOLN NATIONAL CORP
10-K, 2000-03-10
LIFE INSURANCE

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LINCOLN NATIONAL CORPORATION

EXHIBIT 12 - HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES

(in millions of dollars)                             1999           1998           1997 (4)       1996           1995
---------------------------------------------------------------------------------------------------------------------
Net Income before Taxes and
Minority Interests                               $  570.0       $  697.4       $1,427.1       $  692.7       $  626.6
Equity in the Earnings of
Unconsolidated Affiliates                            (5.8)          (3.3)          (2.1)          (1.4)         (12.4)
Sub-total of Fixed Charges                          160.9          144.1          113.3          108.6           94.4
                                                 --------       --------       --------       --------       --------
Sub-total of Adjusted Net Income                    725.1          838.2        1,538.3          799.9          708.6
Interest on Annuities & Financial Products        1,510.4        1,446.2        1,253.5        1,185.6        1,147.1
                                                 --------       --------       --------       --------       --------
Adjusted Net Income Base                          2,235.5        2,284.4        2,791.8        1,985.5        1,855.7

Rent Expense                                         81.5           81.3           62.5           71.6           65.6

Fixed Charges:
Interest and Debt Expense                           133.7          117.1           92.5           84.7           72.5
Rent (Pro-rated)                                     27.2           27.0           20.8           23.9           21.9
                                                 --------       --------       --------       --------       --------
Sub-total Fixed Charges                             160.9          144.1          113.3          108.6           94.4
Interest on Annuities & Financial Products        1,510.4        1,446.2        1,253.5        1,185.6        1,147.1
                                                 --------       --------       --------       --------       --------
Sub-total Fixed Charges                           1,671.3        1,590.3        1,366.8        1,294.2        1,241.5
Preferred Dividends (Pre-tax)                         0.1            0.1            0.2            0.2           13.4
                                                 --------       --------       --------       --------       --------
Total Fixed Charges                              $1,671.4       $1,590.4       $1,367.0       $1,294.4       $1,254.9

Ratio of Earnings to Fixed Charges:
Excluding Interest on Annuities
And Financial Products (1)                           4.51           5.82          13.57           7.37           7.51

Excluding Interest on Annuities
And Financial Products (2)                           1.34           1.44           2.04           1.53           1.49

Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends (3)                    1.34           1.44           2.04           1.53           1.48

(1)

For purposes of determining this ratio, earnings consist of income before federal income taxes, cumulative effect of accounting change, if any, and minority interests adjusted for the difference between income or losses from unconsolidated equity investments and cash distributions from such investments, plus fixed charges. Fixed charges consist of 1) interest and debt expense on short and long-term debt and distributions to minority interest-preferred securities of subsidiary companies and 2) the portion of operating leases that are representative of the interest factor.

(2)	Same as the ratio of earnings to fixed charges, excluding interest on annuities and financial products, except fixed charges and earnings include interest on annuities and financial products.

(3)	Same as the ratio of earnings to fixed charges, including interest on annuities and financial products, except that fixed charges include the pre-tax earnings required to cover preferred stock dividend requirements.

(4)	Coverage ratios for 1997 are higher than other historical periods shown due to the inclusion of the gain on sale of discontinued operations (see note 11 to the consolidated financial statements).