Edgar Filing: LINCOLN NATIONAL CORP

lincoln11k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS

AND SIMILAR PLANS PURSUANT TO SECTION 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2007

[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number 1-6028

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY AGENTS’ SAVINGS AND PROFIT-SHARING PLAN

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Lincoln National Corporation

150 N. Radnor Chester Road, Suite A305

Radnor, PA 19087

REQUIRED INFORMATION

Financial statements and schedule for The Lincoln National Life Insurance Company Agents’ Savings And Profit-Sharing Plan, prepared in accordance with the financial reporting requirements of the Employee Retirement Income Security Act of 1974, are contained in this Annual Report on Form 11-K.











Financial Statements and Supplemental Schedule

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

December 31, 2007 and 2006, and for three years ended December 31, 2007, 2006, and 2005
With Report of Independent Registered Public Accounting Firm

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Financial Statements and Supplemental Schedule

December 31, 2007 and 2006, and for three years ended December 31, 2007, 2006, and 2005




Contents

Report of Independent Registered Public Accounting Firm	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


Supplemental Schedule

Schedule H, Line 4i – Schedule of Assets (Held At End of Year)	23



Report of Independent Registered Public Accounting Firm

Lincoln National Corporation Plan Administrator
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, 2007 and 2006, 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, 2007. 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and 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, 2007 and 2006, and the changes in its net assets available for plan benefits for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2007, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.


Philadelphia, Pennsylvania	/s/ Ernst & Young LLP
March 26, 2008

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Statements of Net Assets Available for Plan Benefits


	December 31
	2007			2006
Assets
Investments:
Common stock – Lincoln National Corporation
(cost: 2007 – $33,920,977; 2006 – $35,751,944)	$	47,511,770		$	59,554,426
Wells Fargo Bank short-term investment account		1,564,190			1,748,430
Pooled separate accounts – The Lincoln National
Life Insurance Company Separate Accounts
(cost: 2007 – $91,414,277; 2006 – $87,337,123)		133,100,849			126,882,016
Investment contracts – The Lincoln National
Life Insurance Company		14,604,738			16,312,170
Participant loans		3,996,682			4,010,852
Total investments		200,778,229			208,507,894

Accrued interest receivable		54,904			58,106
Cash		(4,648	)		740,328
Contributions receivable from participant deferrals		–			12,646
Contributions receivable from Employer companies		2,212,179			–
Total assets		203,040,664			209,318,974

Liabilities
Due to broker		214			21,546
Total liabilities		214			21,546
Net assets available for plan benefits	$	203,040,450		$	209,297,428

See accompanying notes.

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
	2007			2006			2005
Investment income:
Cash dividends – Lincoln National Corporation	$	1,336,688		$	1,431,425		$	1,637,253
Interest		965,603			907,029			926,170
		2,302,291			2,338,454			2,563,423

Net realized gain on sale
and distributions of investments:
Lincoln National Corporation common stock		3,844,371			5,504,007			5,362,745
The Lincoln National Life Insurance
Company Separate Accounts		8,568,425			5,920,004			3,712,858
		12,412,796			11,424,011			9,075,603
Net change in unrealized
(depreciation) appreciation of investments		(8,070,015	)		14,925,196			5,961,900
Contributions:
Participants		8,793,200			7,889,483			7,297,381
Employer companies		4,661,121			1,960,209			3,068,581
		13,454,321			9,849,692			10,365,962

Transfers (to) from affiliated plans		(36,541	)		(204,186	)		593,910
Deposit from Jefferson-Pilot 401(k) Plan		–			14,357,318			–
Distributions to participants		(26,167,088	)		(26,009,979	)		(29,711,933	)
Administrative expenses		(152,742	)		(173,808	)		(168,180	)

Net (decrease) increase in net
assets available for plan benefits		(6,256,978	)		26,506,698			(1,319,315	)
Net assets available for plan benefits
at beginning of the year		209,297,428			182,790,730			184,110,045
Net assets available for plan benefits
at end of the year	$	203,040,450		$	209,297,428		$	182,790,730

See accompanying notes.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements

December 31, 2007


1. Significant Accounting Policies

Investments Valuation and Income Recognition

The investment in Lincoln National Corporation (LNC) common stock is valued at the closing sales price reported on the New York Stock Exchange Consolidated Transactions Tape on the last business day of the year.

The Wells Fargo Bank Short-Term Investment Account, which is invested in the common stock fund, is valued at cost, which approximates fair value.

The fair value of participation units in pooled separate accounts estimated by The Lincoln National Life Insurance Company (Lincoln Life) is based on quoted redemption value of the underlying investments on the last business day of the year.

The investment contracts are valued at contract value as estimated by Lincoln Life. As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (FSP), investment contracts held by a defined-contribution plan are required to be reported at fair value. The Lincoln National Life Insurance Company Agents’ Savings and Profit-Sharing Plan (Plan) adopted FSP AAG INV-1 in 2006. The adoption did not have a material effect on the Plan’s financial statements, as interest rates are adjusted to market quarterly. Accordingly, contract value, which represents net contributions plus interest at the contract rate, approximates fair value. The contracts are fully benefit-responsive.

Participant loans are valued at their outstanding balances, which approximate fair value.

The cost of investments sold, distributed, or forfeited is determined using the specific identification method. Investment purchases and sales are accounted for on a trade-date basis.

Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Use of Estimates

Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

New Accounting Pronouncement

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 is effective for accounting periods beginning after November 15, 2007. Lincoln Financial Group Finance is currently evaluating the impact, if any, that the adoption of SFAS 157 will have on the Plan’s 2008 financial statements.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


2. Description of the Plan

The following description of the Plan is a summary only and is qualified in its entirety by the terms and provisions of the Plan document itself.

The Plan is a contributory, defined contribution plan which covers eligible full-time agents of Lincoln Life, Lincoln Financial Advisors Corporation and Lincoln Life & Annuity Company of New York (Employer). Effective April 3, 2006, LNC acquired Jefferson-Pilot Financial Corporation (Jefferson-Pilot). Jefferson-Pilot sponsored a 401(k) plan for its eligible agents. On June 1, 2006, a plan amendment made legacy Jefferson-Pilot agents eligible to participate in the Plan, and assets from legacy Jefferson-Pilot plan accounts were transferred to this Plan. This increased the net assets of the Plan by $14.4 million. Also effective June 1, 2006, participants were permitted to make pre-tax contributions at a rate of at least 1% but not more than 50% of eligible earnings (increased from the 25% maximum in effect from January 1, 2004 through May 31, 2006) up to a maximum annual amount as determined under applicable law. Highly compensated agents, as defined in the Plan, are limited to 9%.

In addition to each participant's pre-tax contributions, Employer matching contributions are provided to the Plan. As of January 1, 2007, the Employer matching contribution for eligible participants is equal to 50% of each participant's pre-tax contributions, not to exceed 6% of eligible earnings per pay period. Prior to January 1, 2007, the Employer matching contribution for eligible former Jefferson-Pilot agents was equal to 10% of each participant's pre-tax contribution, not to exceed 6% of eligible compensation. In addition, the Employer may contribute an additional discretionary matching contribution, the amount of which (if any) is determined at the sole discretion of LNC's Board after a review of whether Lincoln Financial Advisors has met certain performance-based criteria. To be eligible for the discretionary Employer match, the participant must be employed on the last day of the plan year or have died or become disabled during the plan year. The investment of any Employer matching contributions made are directed by the participant.


Participants’ pre-tax, other contributions, and earnings thereon are fully vested at all times. Employer 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%

Participants direct the Plan to invest their contributions, the basic Employer matching contributions, and the Employer discretionary matching contribution in any combination of the investment options offered under the Plan. For 2007, Employer discretionary matching contributions were made in cash, and allocated to the investment funds in accordance with the Participant’s elections. No Employer discretionary matching contributions were made for 2006. Employer discretionary matching contributions for 2005 were initially invested in the LNC Common Stock Account. Participants can immediately direct the investment of the Employer discretionary matching contributions to other investment options, subject to certain restrictions set forth in our Insider Trading and Confidentiality policy.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


2. Description of the Plan (continued)

The Employer has the right to discontinue contributions at any time and terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, all non-vested amounts allocated to participant accounts would become fully vested.

The Plan may make 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 have not been in the Plan for two full years, less the highest outstanding loan balance in the previous 12-month period. Interest charged on new loans to participants is established monthly based upon the prime rate plus 1%. Interest income credited was $293,769, $225,353, and $236,082 in 2007, 2006, and 2005, respectively. Loans may be repaid over any period selected by the participant up to a maximum repayment period of 5 years except that the maximum repayment period may be 20 years for the purchase of a principal residence.

Upon termination of service due to disability or retirement, a participant may elect to receive either a lump-sum amount equal to the entire value of the participant’s account or an installment option if certain criteria are met; in cases of death, the participant’s beneficiary makes that election. For termination of service due to other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution. Vested account balances less than $1,000 are immediately distributable under the terms of the Plan, without the participant’s consent, unless the participant has made a timely election of rollover to an Individual Retirement Account or other qualified arrangement.

Each participant’s account is credited with the participant's contributions, Employer matching contributions, and applicable investment earnings thereon and is charged with an allocation of administrative expenses and applicable investment losses. Forfeited non-vested amounts are used to reduce future Employer contributions.

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:

	December 31, 2007				December 31, 2006
	Number of	Net Asset			Number of	Net Asset
	Shares, Units	Value	Fair		Shares, Units	Value	Fair
	or Par Value	Per Unit	Value		or Par Value	Per Unit	Value
Fair Values
Common stock – LNC**	816,073	$ 58.220	$ 47,511,770	*	896,904	$ 66.400	$ 59,554,426	*
Pooled separate account investment
contracts underwritten by Lincoln Life:
Core Equity Account	603,408.454	17.535	10,580,767	*	675,925.619	16.597	11,218,540	*
Medium Capitalization Equity Account	558,122.762	17.023	9,500,756		637,440.864	15.038	9,586,154
Short-Term Account	2,707,860.831	4.142	11,214,877	*	2,474,519.389	3.950	9,774,599
Government/Corporate Bond Account	502,647.363	9.843	4,947,357		478,163.909	9.428	4,508,225
Large Capitalization Equity Account	703,700.685	10.991	7,734,304		845,211.812	9.783	8,268,538
Balanced Account	399,671.268	9.426	3,767,261		329,975.428	8.897	2,935,692
High Yield Bond Account	842,282.306	4.488	3,780,163		861,514.961	4.386	3,778,949
Small Capitalization Equity Account	882,868.835	9.896	8,737,135		1,004,016.412	8.930	8,966,268
Value Equity Account	1,922,453.540	3.122	6,001,708		2,106,200.926	3.048	6,418,858
International Equity Account	941,916.059	12.562	11,832,632	*	1,078,128.890	12.018	12,957,276	*
Conservative Balanced Account	409,589.675	2.510	1,028,234		327,871.900	2.388	783,056
Aggressive Balanced Account	608,494.129	2.988	1,817,998		494,596.549	2.815	1,392,190
Delaware Growth and Income Account	2,079,971.566	2.138	4,446,147		2,315,835.708	2.205	5,106,881
Scudder VIT Equity 500 Index Account	4,049,051.948	1.268	5,133,793		4,198,242.064	1.208	5,071,896
Fidelity VIP Contrafund	6,414,875.498	1.906	12,229,960	*	6,248,064.787	1.625	10,151,855
Neuberger-Berman
AMT Regency Account	1,506,244.982	1.827	2,751,458		1,777,817.112	1.771	3,148,514
Social Awareness Account	1,311,610.737	1.365	1,789,955		1,514,969.167	1.329	2,014,000
American Funds Insurance
Series Global Growth	4,869,650.703	1.457	7,094,107		4,481,783.250	1.270	5,693,657
Neuberger-Berman
Mid-Cap Growth Account	3,341,287.715	1.702	5,687,874		3,099,565.265	1.391	4,312,735
Scudder VIT Small Cap Index Account	1,781,845.843	1.859	3,313,342		1,970,608.242	1.901	3,746,520
BlackRock Legacy Account	407,813.986	1.899	774,601		289,661.157	1.607	465,485
American Funds International Account	395,626.878	22.588	8,936,420		348,696.154	18.876	6,582,128
Total pooled separate accounts			133,100,849				126,882,016

Contract Value
Investment contracts
underwritten by Lincoln Life	14,604,738		14,604,738	*	16,312,170		16,312,170	*

Estimated Value
Wells Fargo Bank short-term
investment account	1,564,190		1,564,190		1,748,430		1,748,430
Participants loans	3,996,682		3,996,682		4,010,852		4,010,852
Total investments			$200,778,229				$208,507,894

* Investments that represent 5% or more of the fair value of net assets available for benefits as of the indicated date.
** Indicates party-in-interest to the Plan.

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 and distribution of investments is summarized as follows:

	Year ended December 31
	2007			2006		2005
Common stock
Proceeds from disposition of stock	$	7,729,845		$	12,038,077	$	14,876,314
Cost of stock disposed		3,885,474			6,534,070		9,513,569
Net realized gain on sale and distribution
of common stock	$	3,844,371		$	5,504,007	$	5,362,745

Pooled separate accounts
Proceeds from disposition of units	$	49,126,170		$	43,764,916	$	33,710,587
Cost of units disposed		40,557,745			37,844,912		29,997,729
Net realized gain on sale and distribution
of pooled separate accounts	$	8,568,425		$	5,920,004	$	3,712,858

The net change in unrealized appreciation of investments in total and by investment classification as determined by fair value is summarized as follows:

	Year ended December 31
	2007			2006		2005

Fair value in excess of cost:
At beginning of the year	$	63,347,381		$	48,422,185	$	42,460,285
At end of the year		55,277,366			63,347,381		48,422,185
Change in net unrealized (depreciation) appreciation of investments	$	(8,070,015	)	$	14,925,196	$	5,961,900

Common stock	$	(10,211,687	)	$	7,023,661	$	1,635,194
Pooled separate accounts		2,141,672			7,901,535		4,326,706
Change in net unrealized (depreciation) appreciation of investments	$	(8,070,015	)	$	14,925,196	$	5,961,900

The investment contracts (Guaranteed Account) earned an average interest rate of approximately 4.0% in all three years. The credited interest rates for new contributions, which approximate the current market rate, were 4.0% at both December 31, 2007 and 2006. The rate on new contributions is guaranteed through the three succeeding calendar year quarters. The credited interest rates for the remaining contract value balance, which approximate the current market rate, were 4.0% at both December 31, 2007 and 2006, and were determined based upon the performance of Lincoln Life’s general account. The credited interest rates can be changed quarterly. The minimum guaranteed rate is 3.5%. The guarantee is based on Lincoln Life’s ability to meet its financial obligations from the general assets of Lincoln Life. Restrictions apply to the movement of funds to other investment options. The fair value of the investment contracts approximates contract value. Participants are allocated interest on the investment contacts.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options

The detail of the net assets available for plan benefits by investment option is as follows:


Investment Options
December 31, 2007	Total				1		2			3			4			5			6
Assets
Investments:
Common stock	$	47,511,770		$	47,511,770	$	–		$	–		$	–		$	–		$	–
Short-term investment fund		1,564,190			1,564,190		–			–			–			–			–
Pooled separate accounts		133,100,849			–		–			10,580,767			9,500,756			11,214,877			4,947,357
Investment contracts		14,604,738			–		14,604,738			–			–			–			–
Participant loans		3,996,682			–		–			–			–			–			–
Total investments		200,778,229			49,075,960		14,604,738			10,580,767			9,500,756			11,214,877			4,947,357

Accrued interest receivable		54,904			5,966		48,938			–			–			–			–
Cash		(4,648	)		–		(4,648	)		–			–			–			–
Contributions receivable
from participant deferrals		–			–		–			–			–			–			–
Contributions receivable
from Employer companies		2,212,179			2,212,179		–			–			–			–			–
Net assets		203,040,664			51,294,105		14,649,028			10,580,767			9,500,756			11,214,877			4,947,357

Liabilities
Due to broker		214			–		–			(28,320	)		–			94,323			(14,387	)
Total liabilities		214			–		–			(28,320	)		–			94,323			(14,387	)
Net assets available for plan benefits	$	203,040,450		$	51,294,105	$	14,649,028		$	10,609,087		$	9,500,756		$	11,120,554		$	4,961,744
Number of participants
selecting investment options					1354		366			541			467			480			338


Investment Options
December 31, 2007		7			8		9			10			11			12			13
Assets
Investments:
Common stock	$	–		$	–	$	–		$	–		$	–		$	–		$	–
Short-term investment account		–			–		–			–			–			–			–
Pooled separate accounts		7,734,304			3,767,261		3,780,163			8,737,135			6,001,708			11,832,632			1,028,234
Investment contracts		–			–		–			–			–			–			–
Participant loans		–			–		–			–			–			–			–
Total investments		7,734,304			3,767,261		3,780,163			8,737,135			6,001,708			11,832,632			1,028,234

Accrued interest receivable		–			–		–			–			–			–			–
Cash		–			–		–			–			–			–			–
Contributions receivable
from participant deferrals		–			–		–			–			–			–			–
Contributions receivable
from Employer companies		–			–		–			–			–			–			–
Net assets		7,734,304			3,767,261		3,780,163			8,737,135			6,001,708			11,832,632			1,028,234

Liabilities
Due to broker		(20,915	)		–		(10,164	)		(9,880	)		(28,411	)		(18,761	)		–
Total liabilities		(20,915	)		–		(10,164	)		(9,880	)		(28,411	)		(18,761	)		–
Net assets available for plan benefits	$	7,755,219		$	3,767,261	$	3,790,327		$	8,747,015		$	6,030,119		$	11,851,393		$	1,028,234
Number of participants
selecting investment options		471			188		338			579			378			655			52

The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


Investment Options
December 31, 2007		14			15			16		17		18		19		20
Assets
Investments:
Common stock	$	–		$	–		$	–	$	–	$	–	$	–	$	–
Short-term investment account		–			–			–		–		–		–		–
Pooled separate accounts		1,817,998			4,446,147			5,133,793		12,229,960		2,751,458		1,789,955		7,094,107
Investment contracts		–			–			–		–		–		–		–
Participant loans		–			–			–		–		–		–		–
Total investments		1,817,998			4,446,147			5,133,793		12,229,960		2,751,458		1,789,955		7,094,107

Accrued interest receivable		–			–			–		–		–		–		–
Cash		–			–			–		–		–		–		–
Contributions receivable
from participant deferrals		–			–			–		–		–		–		–
Contributions receivable
from Employer companies		–			–			–		–		–		–		–
Net assets		1,817,998			4,446,147			5,133,793		12,229,960		2,751,458		1,789,955		7,094,107

Liabilities
Due to broker		–			(6,031	)		–		47,210		4,918		–		(17,740	)
Total liabilities		–			(6,031	)		–		47,210		4,918		–		(17,740	)
Net assets available for plan benefits	$	1,817,998		$	4,452,178		$	5,133,793	$	12,182,750	$	2,746,540	$	1,789,955	$	7,111,847
Number of participants
selecting investment options		153			448			293		673		265		128		438


Investment Options
December 31, 2007		21			22			25		26	Loans
Assets
Investments:
Common stock	$	–		$	–		$	–	$	–	$	–
Short-term investment account		–			–			–		–		–
Pooled separate accounts		5,687,874			3,313,342			774,601		8,936,420		–
Investment contracts		–			–			–		–		–
Participant loans		–			–			–		–		3,996,682
Total investments		5,687,874			3,313,342			774,601		8,936,420		3,996,682

Accrued interest receivable		–			–			–		–		–
Cash		–			–			–		–		–
Contributions receivable
from participant deferrals		–			–			–		–		–
Contributions receivable
from Employer companies		–			–			–		–		–
Net assets available for plan benefits		5,687,874			3,313,342			774,601		8,936,420		3,996,682

Liabilities
Due to broker		(19,496	)		(8,988	)		28,799		8,057		–
Total liabilities		(19,496	)		(8,988	)		28,799		8,057		–
Net assets available for plan benefits	$	5,707,370		$	3,322,330		$	745,802	$	8,928,363	$	3,996,682
Number of participants
selecting investment options		535			383			79		654		220

Note: Investment options 23 and 24 had a zero balance as of 12/31/07 and are not shown.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)

The detail of the net assets available for plan benefits by investment option is as follows:


Investment Options
December 31, 2006	Total			1			2		3		4		5		6
Assets
Investments:
Common stock	$	59,554,426	$	59,554,426		$	–	$	–	$	–	$	–	$	–
Short-term investment fund		1,748,430		1,748,430			–		–		–		–		–
Pooled separate accounts		126,882,016		–			–		11,218,540		9,586,154		9,774,599		4,508,225
Investment contracts		16,312,170		–			16,312,170		–		–		–		–
Participant loans		4,010,852		–			–		–		–		–		–
Total investments		208,507,894		61,302,856			16,312,170		11,218,540		9,586,154		9,774,599		4,508,225

Accrued interest receivable		58,106		6,410			51,123		–		–		–		–
Cash		740,328		(12,604	)		752,932		–		–		–		–
Contributions receivable
from participant deferrals		12,646		12,646			–		–		–		–		–
Contributions receivable
from Employer companies		–		–			–		–		–		–		–
Net assets		209,318,974		61,309,308			17,116,225		11,218,540		9,586,154		9,774,599		4,508,225

Liabilities
Due to broker		21,546		–			204		932		398		2,661		105
Total liabilities		21,546		–			204		932		398		2,661		105
Net assets available for plan benefits	$	209,297,428	$	61,309,308		$	17,116,021	$	11,217,608	$	9,585,756	$	9,771,938	$	4,508,120
Number of participants
selecting investment options				1518			402		623		513		557		372


Investment Options
December 31, 2006		7		8			9		10		11		12		13
Assets
Investments:
Common stock	$	–	$	–		$	–	$	–	$	–	$	–	$	–
Short-term investment account		–		–			–		–		–		–		–
Pooled separate accounts		8,268,538		2,935,692			3,778,949		8,966,268		6,418,858		12,957,276		783,056
Investment contracts		–		–			–		–		–		–		–
Participant loans		–		–			–		–		–		–		–
Total investments		8,268,538		2,935,692			3,778,949		8,966,268		6,418,858		12,957,276		783,056

Accrued interest receivable		–		–			–		–		–		–		–
Cash		–		–			–		–		–		–		–
Contributions receivable
from participant deferrals		–		–			–		–		–		–		–
Contributions receivable
from Employer companies		–		–			–		–		–		–		–
Net assets		8,268,538		2,935,692			3,778,949		8,966,268		6,418,858		12,957,276		783,056

Liabilities
Due to broker		665		913			7		584		713		425		29
Total liabilities		665		913			7		584		713		425		29
Net assets available for plan benefits	$	8,267,873	$	2,934,779		$	3,778,942	$	8,965,684	$	6,418,145	$	12,956,851	$	783,027
Number of participants
selecting investment options		528		183			371		622		411		703		49

The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


Investment Options
December 31, 2006		14		15		16		17		18		19		20
Assets
Investments:
Common stock	$	–	$	–	$	–	$	–	$	–	$	–	$	–
Short-term investment account		–		–		–		–		–		–		–
Pooled separate accounts		1,392,190		5,106,881		5,071,896		10,151,855		3,148,514		2,014,000		5,693,657
Investment contracts		–		–		–		–		–		–		–
Participant loans		–		–		–		–		–		–		–
Total investments		1,392,190		5,106,881		5,071,896		10,151,855		3,148,514		2,014,000		5,693,657

Accrued interest receivable		–		–		–		–		–		–		–
Cash		–		–		–		–		–		–		–
Contributions receivable
from participant deferrals		–		–		–		–		–		–		–
Contributions receivable
from Employer companies		–		–		–		–		–		–		–
Net assets		1,392,190		5,106,881		5,071,896		10,151,855		3,148,514		2,014,000		5,693,657

Liabilities
Due to broker		88		1,145		841		1,668		394		33		2,927
Total liabilities		88		1,145		841		1,668		394		33		2,927
Net assets available for plan benefits	$	1,392,102	$	5,105,736	$	5,071,055	$	10,150,187	$	3,148,120	$	2,013,967	$	5,690,730
Number of participants
selecting investment options		143		487		295		667		268		136		396


Investment Options
December 31, 2006		21		22		25		26	Loans
Assets
Investments:
Common stock	$	–	$	–	$	–	$	–	$	–
Short-term investment account		–		–		–		–		–
Pooled separate accounts		4,312,735		3,746,520		465,485		6,582,128		–
Investment contracts		–		–		–		–		–
Participant loans		–		–		–		–		4,010,852
Total investments		4,312,735		3,746,520		465,485		6,582,128		4,010,852

Accrued interest receivable		–		–		–		–		573
Cash		–		–		–		–		–
Contributions receivable
from participant deferrals		–		–		–		–		–
Contributions receivable
from Employer companies		–		–		–		–		–
Net assets available for plan benefits		4,312,735		3,746,520		465,485		6,582,128		4,011,425

Liabilities
Due to broker		944		1,104		922		3,844		–
Total liabilities		944		1,104		922		3,844		–
Net assets available for plan benefits	$	4,311,791	$	3,745,416	$	464,563	$	6,578,284	$	4,011,425
Number of participants
selecting investment options		505		416		55		568		228


Note: Investment options 23 and 24 had a zero balance as of 12/31/06 and are not shown.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)

4. Investment Options (continued)

The detail of the changes in net assets available for plan benefits by investment option is as follows:

Investment Options
December 31, 2007	Total				1			2			3			4			5			6
Investment income:
Cash dividends	$	1,336,688		$	1,336,688		$	–		$	–		$	–		$	–		$	–
Interest		965,603			76,858			594,976			–			–			–			–
Total investment income		2,302,291			1,413,546			594,976			–			–			–			–
Net realized gain on sale and
distribution of investments:
Common stock		3,844,371			3,844,371			–			–			–			–			–
Pooled separate accounts		8,568,425			–			–			664,484			561,776			457,917			126,139
Total net realized gains		12,412,796			3,844,371			–			664,484			561,776			457,917			126,139
Net change in unrealized
appreciation of investments		(8,070,015	)		(10,211,687	)		–			(23,248	)		630,889			72,885			70,687
Contributions:
Participant		8,793,200			1,253,272			205,334			488,649			378,949			185,822			222,521
Employer companies		4,661,121			2,472,984			68,051			149,632			110,506			52,493			62,216
Total contributions		13,454,321			3,726,256			273,385			638,281			489,455			238,315			284,737
Transfers (to) from affiliated plans		(36,541	)		(26,046	)		123,769			(91,474	)		(36,589	)		1,148			(55,814	)
Deposit from Jefferson-Pilot 401(k) Plan		–			–			–			–			–			–			–
Distributions to participants		(26,167,088	)		(5,292,358	)		(2,994,094	)		(928,069	)		(548,062	)		(5,901,943	)		(241,702	)
Administrative expenses		(152,742	)		(38,138	)		(9,642	)		(7,265	)		(6,359	)		(23,600	)		(3,031	)
Net transfers		–			(3,431,147	)		(455,387	)		(861,230	)		(1,176,110	)		6,503,894			272,608
Net (decrease) increase in net
assets available for plan benefits		(6,256,978	)		(10,015,203	)		(2,466,993	)		(608,521	)		(85,000	)		1,348,616			453,624
Net assets available for plan
benefits at beginning of the year		209,297,428			61,309,308			17,116,021			11,217,608			9,585,756			9,771,938			4,508,120
Net assets available for plan
benefits at end of the year	$	203,040,450		$	51,294,105		$	14,649,028		$	10,609,087		$	9,500,756		$	11,120,554		$	4,961,744

Investment Options
December 31, 2007		7			8			9			10			11			12			13
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			–			–			–
Total investment income		–			–			–			–			–			–			–
Net realized gain on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		328,624			160,650			223,727			627,301			510,207			1,402,736			6,931
Total net realized gains		328,624			160,650			223,727			627,301			510,207			1,402,736			6,931
Net change in unrealized
appreciation of investments		567,002			16,677			(131,196	)		277,677			(323,142	)		(771,756	)		31,719
Contributions:
Participant		495,873			232,621			227,386			461,880			385,416			673,139			31,372
Employer companies		153,408			65,594			63,133			128,953			110,044			186,021			8,513
Total contributions		649,281			298,215			290,519			590,833			495,460			859,160			39,885
Transfers (to) from affiliated plans		(58,621	)		(47,208	)		9,755			(48,121	)		(61,018	)		(31,786	)		2,869
Deposit from Jefferson-Pilot 401(k) Plan		–			–			–			–			–			–			–
Distributions to participants		(643,603	)		(230,133	)		(426,186	)		(824,414	)		(535,077	)		(1,532,873	)		(39,414	)
Administrative expenses		(5,356	)		(2,150	)		(2,737	)		(5,918	)		(4,329	)		(8,767	)		(593	)
Net transfers		(1,349,981	)		636,431			47,503			(836,027	)		(470,127	)		(1,022,172	)		203,810
Net (decrease) increase in net
assets available for plan benefits		(512,654	)		832,482			11,385			(218,669	)		(388,026	)		(1,105,458	)		245,207
Net assets available for plan
benefits at beginning of the year		8,267,873			2,934,779			3,778,942			8,965,684			6,418,145			12,956,851			783,027
Net assets available for plan
benefits at end of the year	$	7,755,219		$	3,767,261		$	3,790,327		$	8,747,015		$	6,030,119		$	11,851,393		$	1,028,234

The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)

The detail of the changes in net assets available for plan benefits by investment option is as follows:

Investment Options
December 31, 2007		14			15			16			17			18			19			20
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			–			–			–
otal investment income		–			–			–			–			–			–			–
Net realized gain on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		84,856			388,328			375,161			633,888			304,958			166,495			368,289
Total net realized gains		84,856			388,328			375,161			633,888			304,958			166,495			368,289
Net change in unrealized
appreciation of investments		(7,272	)		(491,433	)		(96,526	)		1,059,176			(209,939	)		(108,043	)		478,622
Contributions:
Participant		167,729			397,221			327,593			773,153			192,216			94,470			436,375
Employer companies		47,380			123,171			94,406			229,182			56,811			23,608			115,367
Total contributions		215,109			520,392			421,999			1,002,335			249,027			118,078			551,742
Transfers (to) from affiliated plans		19,560			19,808			126,166			54,298			13,290			4,671			26,797
Deposit from Jefferson-Pilot 401(k) Plan		–			–			–			–			–			–			–
Distributions to participants		(257,743	)		(517,097	)		(577,682	)		(1,141,743	)		(339,021	)		(341,781	)		(675,586	)
Administrative expenses		(1,075	)		(3,661	)		(3,428	)		(7,445	)		(2,128	)		(1,323	)		(4,290	)
Net transfers		372,461			(569,895	)		(182,952	)		432,054			(417,767	)		(62,109	)		675,543
Net (decrease) increase in net
assets available for plan benefits		425,896			(653,558	)		62,738			2,032,563			(401,580	)		(224,012	)		1,421,117
Net assets available for plan
benefits at beginning of the year		1,392,102			5,105,736			5,071,055			10,150,187			3,148,120			2,013,967			5,690,730
Net assets available for plan
benefits at end of the year	$	1,817,998		$	4,452,178		$	5,133,793		$	12,182,750		$	2,746,540		$	1,789,955		$	7,111,847


Investment Options
December 31, 2007		21			22			23			24			25			26		Loans
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			–			–			293,769
Total investment income		–			–			–			–			–			–			293,769
Net realized gain on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		400,202			236,248			–			–			27,248			512,260			–
Total net realized gains		400,202			236,248			–			–			27,248			512,260			–
Net change in unrealized
appreciation of investments		569,104			(302,865	)		–			–			45,981			786,673			–
Contributions:
Participant		333,069			321,154			–			–			29,914			478,072			–
Employer companies		98,406			89,843			–			–			7,488			143,911			–
Total contributions		431,475			410,997			–			–			37,402			621,983			–
Transfers (to) from affiliated plans		10,159			19,857			–			–			4,795			(16,806	)		–
Deposit from Jefferson-Pilot 401(k) Plan		–			–			–			–			–			–			–
Distributions to participants		(712,486	)		(326,627	)		–			–			(34,679	)		(796,203	)		(308,512	)
Administrative expenses		(3,443	)		(2,668	)		–			–			(343	)		(5,053	)		–
Net transfers		700,568			(458,028	)		–			–			200,835			1,247,225			–
Net (decrease) increase in net
assets available for plan benefits		1,395,579			(423,086	)		–			–			281,239			2,350,079			(14,743	)
Net assets available for plan
benefits at beginning of the year		4,311,791			3,745,416			–			–			464,563			6,578,284			4,011,425
Net assets available for plan
benefits at end of the year	$	5,707,370		$	3,322,330		$	–		$	–		$	745,802		$	8,928,363		$	3,996,682

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)

The detail of the changes in net assets available for plan benefits by investment option is as follows:

Investment Options
December 31, 2006	Total				1			2			3			4			5			6
Investment income:
Cash dividends	$	1,431,425		$	1,431,425		$	–		$	–		$	–		$	–		$	–
Interest		907,029			75,944			605,734			–			–			–			–
Total investment income		2,338,454			1,507,369			605,734			–			–			–			–
Net realized gain (loss) on sale and
distribution of investments:
Common stock		5,504,007			5,504,007			–			–			–			–			–
Pooled separate accounts		5,920,004			–			–			842,833			416,271			293,803			45,228
Total net realized gains (losses)		11,424,011			5,504,007			–			842,833			416,271			293,803			45,228
Net change in unrealized appreciation
(depreciation) of investments		14,925,196			7,023,661			–			562,705			431,374			144,500			215,027
Contributions:
Participant		7,889,483			892,220			219,516			534,884			444,349			156,018			190,879
Employer companies		1,960,209			167,578			62,897			147,672			127,649			45,235			39,260
Total contributions		9,849,692			1,059,798			282,413			682,556			571,998			201,253			230,139
Transfers (to) from affiliated plans		(204,186	)		40,455			(80,699	)		(67,104	)		(15,423	)		19,074			(34,410	)
Deposit from Jefferson-Pilot 401(k) Plan		14,357,318			4,303,193			1,069,761			813,773			30,436			1,810,678			492,367
Distributions to participants		(26,009,979	)		(7,847,021	)		(964,315	)		(1,479,911	)		(910,747	)		(2,990,725	)		(329,267	)
Administrative expenses		(173,808	)		(35,074	)		(9,740	)		(7,555	)		(6,643	)		(59,632	)		(2,117	)
Net transfers		–			(5,940,883	)		1,236,927			(2,362,923	)		(1,044,483	)		2,232,329			721,015
Net increase (decrease) in net
assets available for plan benefits		26,506,698			5,615,505			2,140,081			(1,015,626	)		(527,217	)		1,651,280			1,337,982
Net assets available for plan
benefits at beginning of the year		182,790,730			55,693,803			14,975,940			12,233,234			10,112,973			8,120,658			3,170,138
Net assets available for plan
benefits at end of the year	$	209,297,428		$	61,309,308		$	17,116,021		$	11,217,608		$	9,585,756		$	9,771,938		$	4,508,120


Investment Options
December 31, 2006		7			8			9			10			11			12			13
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		(1	)		–			–			(1	)		–			–			–
Total investment income		(1	)		–			–			(1	)		–			–			–
Net realized gain (loss) on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		256,005			81,440			181,716			609,894			193,896			893,187			26,701
Total net realized gains (losses)		256,005			81,440			181,716			609,894			193,896			893,187			26,701
Net change in unrealized appreciation
(depreciation) of investments		(71,963	)		172,802			191,493			13,347			782,905			1,563,299			34,529
Contributions:
Participant		538,206			193,039			229,529			536,012			380,805			715,945			33,347
Employer companies		171,749			50,772			56,584			143,170			107,499			182,614			9,907
Total contributions		709,955			243,811			286,113			679,182			488,304			898,559			43,254
Transfers (to) from affiliated plans		(52,313	)		(4,143	)		3,480			7,320			(10,103	)		35,229			1,020
Deposit from Jefferson-Pilot 401(k) Plan		5,932			24,752			15,909			32,510			34,191			51,862			14,266
Distributions to participants		(1,295,769	)		(252,933	)		(432,917	)		(1,022,299	)		(489,132	)		(1,279,486	)		(11,458	)
Administrative expenses		(6,458	)		(1,926	)		(2,201	)		(6,555	)		(3,642	)		(7,628	)		(601	)
Net transfers		(1,922,722	)		(92,507	)		341,048			(1,170,005	)		(4,430	)		29,615			(92,800	)
Net increase (decrease) in net
assets available for plan benefits		(2,377,334	)		171,296			584,641			(856,607	)		991,989			2,184,637			14,911
Net assets available for plan
benefits at beginning of the year		10,645,207			2,763,483			3,194,301			9,822,291			5,426,156			10,772,214			768,116
Net assets available for plan
benefits at end of the year	$	8,267,873		$	2,934,779		$	3,778,942		$	8,965,684		$	6,418,145		$	12,956,851		$	783,027

The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)

The detail of the changes in net assets available for plan benefits by investment option is as follows:

Investment Options
December 31, 2006		14			15			16			17			18			19			20
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			–			–			–
Total investment income		–			–			–			–			–			–			–
Net realized gain (loss) on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		42,775			129,297			157,697			513,922			287,530			118,389			208,894
Total net realized gains (losses)		42,775			129,297			157,697			513,922			287,530			118,389			208,894
Net change in unrealized appreciation
(depreciation) of investments		94,353			643,058			544,507			589,751			53,486			96,001			655,306
Contributions:
Participant		137,628			267,527			270,109			661,729			201,773			110,703			364,104
Employer companies		39,834			60,562			51,132			161,104			57,863			22,939			78,005
Total contributions		177,462			328,089			321,241			822,833			259,636			133,642			442,109
Transfers (to) from affiliated plans		3,894			(5,365	)		1,588			36,396			(36,824	)		(8,716	)		(24,011	)
Deposit from Jefferson-Pilot 401(k) Plan		48,126			1,132,174			637,563			962,462			44,622			4,590			90,693
Distributions to participants		(178,780	)		(541,825	)		(282,709	)		(1,597,150	)		(653,613	)		(310,567	)		(681,560	)
Administrative expenses		(757	)		(1,872	)		(2,718	)		(5,732	)		(2,096	)		(1,220	)		(2,911	)
Net transfers		216,013			1,356,640			(99,373	)		1,124,208			(87,474	)		124,902			1,370,075
Net increase (decrease) in net
assets available for plan benefits		403,086			3,040,196			1,277,796			2,446,690			(134,733	)		157,021			2,058,595
Net assets available for plan
benefits at beginning of the year		989,016			2,065,540			3,793,259			7,703,497			3,282,853			1,856,946			3,632,135
Net assets available for plan
benefits at end of the year	$	1,392,102		$	5,105,736		$	5,071,055		$	10,150,187		$	3,148,120		$	2,013,967		$	5,690,730


Investment Options
December 31, 2006		21			22			23			24			25			26		Loans
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			–			–			225,353
Total investment income		–			–			–			–			–			–			225,353
Net realized gain (loss) on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		234,335			209,810			10,799			47,687			4,854			113,041			–
Total net realized gains (losses)		234,335			209,810			10,799			47,687			4,854			113,041			–
Net change in unrealized appreciation
(depreciation) of investments		312,430			322,834			(28,056	)		(312,226	)		29,581			860,492			–
Contributions:
Participant		253,827			275,516			3,465			30,702			11,262			236,389			–
Employer companies		59,929			56,075			938			8,124			2,443			48,675			–
Total contributions		313,756			331,591			4,403			38,826			13,705			285,064			–
Transfers (to) from affiliated plans		(4,642	)		(55,583	)		59			112			937			45,586			–
Deposit from Jefferson-Pilot 401(k) Plan		883,394			515,760			–			–			20,185			865,891			452,228
Distributions to participants		(628,815	)		(386,056	)		(604	)		(222,058	)		(69,635	)		(518,743	)		(631,884	)
Administrative expenses		(2,324	)		(1,872	)		(71	)		(747	)		(149	)		(1,567	)		–
Net transfers		200,973			181,659			(255,858	)		(1,455,551	)		465,085			4,928,520			–
Net increase (decrease) in net
assets available for plan benefits		1,309,107			1,118,143			(269,328	)		(1,903,957	)		464,563			6,578,284			45,697
Net assets available for plan
benefits at beginning of the year		3,002,684			2,627,273			269,328			1,903,957			–			–			3,965,728
Net assets available for plan
benefits at end of the year	$	4,311,791		$	3,745,416		$	–		$	–		$	464,563		$	6,578,284		$	4,011,425

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)

The detail of the changes in net assets available for plan benefits by investment option is as follows:

Investment Options
December 31, 2005	Total				1			2			3			4			5			6
Investment income:
Cash dividends	$	1,637,253		$	1,637,253		$	–		$	–		$	–		$	–		$	–
Interest		926,170			42,239			647,849			–			–			–			–
Total investment income		2,563,423			1,679,492			647,849			–			–			–			–
Net realized gain (loss) on sale and
distribution of investments:
Common stock		5,362,745			5,362,745			–			–			–			–			–
Pooled separate accounts		3,712,858			–			–			514,050			197,691			88,332			95,153
Total net realized gains (losses)		9,075,603			5,362,745			–			514,050			197,691			88,332			95,153
Net change in unrealized appreciation
(depreciation) of investments		5,961,900			1,635,194			–			77,193			700,898			133,138			(24,307	)
Contributions:
Participant		7,297,381			859,454			270,526			612,107			479,192			199,702			152,453
Employer companies		3,068,581			1,150,018			85,980			186,798			155,517			53,989			41,201
Total contributions		10,365,962			2,009,472			356,506			798,905			634,709			253,691			193,654
Transfers (to) from affiliated plans		593,910			217,401			(743,178	)		132,721			163,042			182,088			59,014
Distributions to participants		(29,711,933	)		(7,879,541	)		(4,457,185	)		(2,198,565	)		(1,267,810	)		(2,321,490	)		(298,239	)
Administrative expenses		(168,180	)		(36,944	)		(10,716	)		(8,525	)		(6,746	)		(57,406	)		(1,926	)
Net transfers		–			(10,092,131	)		1,525,542			(655,420	)		(837,995	)		3,588,467			566,039
Net (decrease) increase in net
assets available for plan benefits		(1,319,315	)		(7,104,312	)		(2,681,182	)		(1,339,641	)		(416,211	)		1,866,820			589,388
Net assets available for plan
benefits at beginning of the year		184,110,045			62,798,115			17,657,122			13,572,875			10,529,184			6,253,838			2,580,750
Net assets available for plan
benefits at end of the year	$	182,790,730		$	55,693,803		$	14,975,940		$	12,233,234		$	10,112,973		$	8,120,658		$	3,170,138


Investment Options
December 31, 2005		7			8			9			10			11			12			13
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			–			–			–
Total investment income		–			–			–			–			–			–			–
Net realized gain (loss) on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		(44,606	)		43,149			152,770			453,756			262,800			644,155			26,505
Total net realized gains (losses)		(44,606	)		43,149			152,770			453,756			262,800			644,155			26,505
Net change in unrealized appreciation
(depreciation) of investments		1,351,784			100,270			(39,709	)		(44,275	)		34,382			540,865			(2,420	)
Contributions:
Participant		625,193			199,116			193,078			589,557			425,804			630,715			46,819
Employer companies		206,728			57,264			52,986			176,482			130,489			186,837			14,330
Total contributions		831,921			256,380			246,064			766,039			556,293			817,552			61,149
Transfers (to) from affiliated plans		206,411			(1,872	)		15,440			99,710			(18,544	)		94,767			–
Distributions to participants		(1,204,026	)		(286,433	)		(496,943	)		(1,158,782	)		(1,034,061	)		(1,465,613	)		(171,537	)
Administrative expenses		(6,582	)		(1,529	)		(1,952	)		(6,865	)		(4,036	)		(6,781	)		(363	)
Net transfers		(522,226	)		646,554			597,664			(1,464,873	)		(452,759	)		797,149			362,780
Net (decrease) increase in net
assets available for plan benefits		612,676			756,519			473,334			(1,355,290	)		(655,925	)		1,422,094			276,114
Net assets available for plan
benefits at beginning of the year		10,032,531			2,006,964			2,720,967			11,177,581			6,082,081			9,350,120			492,002
Net assets available for plan
benefits at end of the year	$	10,645,207		$	2,763,483		$	3,194,301		$	9,822,291		$	5,426,156		$	10,772,214		$	768,116

The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)

The detail of the changes in net assets available for plan benefits by investment option is as follows:

Investment Options
December 31, 2005		14			15			16			17			18			19			20
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			–			–			–
Total investment income		–			–			–			–			–			–			–
Net realized gain (loss) on sale and
distribution of investments:
Common stock		–			–			–			–			–			–			–
Pooled separate accounts		32,158			101,874			181,527			373,408			165,181			58,926			22,319
Total net realized gains (losses)		32,158			101,874			181,527			373,408			165,181			58,926			22,319
Net change in unrealized appreciation
(depreciation) of investments		28,796			4,754			(34,315	)		599,476			167,744			107,488			332,675
Contributions:
Participant		117,921			217,327			207,077			444,807			192,202			70,734			245,289
Employer companies		33,191			61,604			55,301			129,854			55,788			18,686			70,640
Total contributions		151,112			278,931			262,378			574,661			247,990			89,420			315,929
Transfers (to) from affiliated plans		541			(135,884	)		181,772			54,920			22,478			7,463			19,999
Distributions to participants		(179,329	)		(393,704	)		(517,067	)		(1,589,320	)		(441,613	)		(245,708	)		(420,056	)
Administrative expenses		(637	)		(1,278	)		(2,622	)		(3,996	)		(1,962	)		(982	)		(2,019	)
Net transfers		56,769			651,375			(445,191	)		2,324,849			549,518			451,607			626,118
Net (decrease) increase in net
assets available for plan benefits		89,410			506,068			(373,518	)		2,333,998			709,336			468,214			894,965
Net assets available for plan
benefits at beginning of the year		899,606			1,559,472			4,166,777			5,369,499			2,573,517			1,388,732			2,737,170
Net assets available for plan
benefits at end of the year	$	989,016		$	2,065,540		$	3,793,259		$	7,703,497		$	3,282,853		$	1,856,946		$	3,632,135


Investment Options
December 31, 2005		21			22			23			24		Loans
Investment income:
Cash dividends	$	–		$	–		$	–		$	–		$	–
Interest		–			–			–			–			236,082
Total investment income		–			–			–			–			236,082
Net realized gain (loss) on sale and
distribution of investments:
Common stock		–			–			–			–			–
Pooled separate accounts		87,659			176,798			12,781			66,472			–
Total net realized gains (losses)		87,659			176,798			12,781			66,472			–
Net change in unrealized appreciation
(depreciation) of investments		229,555			(114,432	)		(7,020	)		184,166			–
Contributions:
Participant		209,420			202,110			19,306			87,472			–
Employer companies		63,421			53,310			4,350			23,817			–
Total contributions		272,841			255,420			23,656			111,289			–
Transfers (to) from affiliated plans		19,782			12,779			402			2,658			–
Distributions to participants		(308,526	)		(468,134	)		(110,036	)		(376,057	)		(422,158	)
Administrative expenses		(1,584	)		(1,789	)		(157	)		(783	)		–
Net transfers		716,823			(61,965	)		38,270			1,033,036			–
Net (decrease) increase in net
assets available for plan benefits		1,016,550			(201,323	)		(42,104	)		1,020,781			(186,076	)
Net assets available for plan
benefits at beginning of the year		1,986,134			2,828,596			311,432			883,176			4,151,804
Net assets available for plan
benefits at end of the year	$	3,002,684		$	2,627,273		$	269,328		$	1,903,957		$	3,965,728

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 Account, which invests exclusively in the stock of LNC. However, some funds may be invested in the Wells Fargo Bank Short-Term Investment Account until the LNC stock can be purchased.

2	Guaranteed Account, which invests in investment contracts underwritten by Lincoln Life. The account’s balances are backed by the general assets of Lincoln Life.

3	Core Equity Account (SA#11), which seeks to buy large capitalization stocks of well-established companies with the objective of long-term capital appreciation.

4	Medium Capitalization Equity Account (SA#17), which invests in stocks of medium-sized companies with the objective of maximum long-term total return.

5	Short-Term Account (SA#14), which invests in high-quality money market securities with the objective of maximizing interest earnings while maintaining principal.

6	Government/Corporate Bond Account (SA#12), which invests primarily in U.S. government and high-quality corporate bonds and securities.

7	Large Capitalization Equity Account (SA#23), which invests primarily in stocks of large companies that have the potential to grow 50% within 18 months from the date of purchase.

8	Balanced Account (SA#21), which invests in stocks, bonds, and money market instruments, with the objective to maximize long-term total return with a moderate level of risk.

9	High Yield Bond Account (SA#20), which invests primarily in below-investment-grade bonds, providing higher rates of return to compensate for higher risk.

10	Small Capitalization Equity Account (SA#24), which invests primarily in the stock of new, rapid growth companies.

11	Value Equity Account (SA#28), which invests in large capitalization stocks of conservative companies that are industry leaders.

12	International Equity Account (SA#22), which invests primarily in stocks of non-United States companies.

13	Conservative Balanced Account (SA#30), which invests in stocks, bonds, and money market instruments to maximize long-term total earnings with a conservative level of risk.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)


14	Aggressive Balanced Account (SA#32), which invests in stocks, bonds, and money market instruments to maximize long-term total return with an aggressive level of risk.

15	Delaware Value Account (SA#61), which invests in large capitalization companies that have long-term capital appreciation potential.

16	Scudder VIT Equity 500 Index Account (SA#27), which seeks to replicate the total return of the S&P 500.

17	Fidelity VIP Contrafund (SA#35), which seeks capital appreciation by investing primarily in securities of companies whose value is not fully recognized by the market.

18	Neuberger-Berman AMT Regency Account (SA#38), which seeks capital growth by investing mainly in common stocks of mid-capitalization companies.

19	Social Awareness Account (SA#33), which seeks capital growth and social responsibility by investing in the Lincoln National Social Awareness Portfolio.

20	American Funds New Perspective Account (formerly Global Growth) (SA#34), which invests primarily in common stocks, convertibles, preferred stocks, bonds, and cash to provide long-term growth through investments all over the world.

21	Neuberger-Berman AMT Mid-Cap Growth Account (SA#37), which seeks capital appreciation using a growth-oriented investment approach.

22	Scudder VIT Small Cap Index Account, which seeks to reflect Russell 2000 performance by investing in the Small Cap Index Portfolio.

23	Janus Aspen Growth Account (SA#70), which seeks long-term growth of capital in a manner consistent with the preservation of capital.

24	Fidelity VIP Overseas Account (SA#59), which seeks long-term growth of capital by investing mainly in foreign securities.

25	Blackrock Legacy Account (SA #81), which seeks to provide long-term growth of capital.

26	American Funds Insurance Series International Fund Account (SA #54), which seeks capital appreciation by investing primarily in common stocks of companies outside the United States.


The Lincoln National Life Insurance Company
Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


4. Investment Options (continued)

Investment options 3 through 26 are invested in pooled separate accounts of Lincoln Life through a group annuity contract issued by Lincoln Life.

5. Income Tax Status

The Plan has received a determination letter from the Internal Revenue Service dated April 30, 2004, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and therefore, the related trust is exempt from taxation. Subsequent to this determination by the Internal Revenue Service, the Plan was amended and restated. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The plan sponsor is committed to maintaining the tax-qualified status of the Plan, operating the Plan in compliance with the Code, and correcting any inadvertent operational errors that may have occurred or could occur.

6. Tax Implications to Participants

Federal (and most states) income tax is deferred on participants contributions, the Employer's contributions, and income earned in the Plan until actual distribution or withdrawal from the Plan.

7. Transactions with Parties-in-Interest

The Plan has investments in common stock of LNC and in pooled separate accounts and investment contracts with Lincoln Life. Lincoln Life charges the Plan for certain administrative expenses including trustee and audit fees. Total administrative expenses charged were $152,742, $173,808, and $168,180 in 2007, 2006, and 2005, respectively.

8. Concentrations of Credit Risks and Market Risks

The Plan has investments in common stock of LNC, pooled separate accounts, and unallocated investment contracts with Lincoln Life of $47,511,770, $133,100,849, and $14,604,738, respectively, at December 31, 2007 (23.4%, 65.6%, and 7.2% of net assets, respectively). LNC and Lincoln Life operate predominately in the insurance and investment management industries.

The Plan invests in various investment securities. Investment securities are exposed to various risks including, but not limited to, interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for plan benefits.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)


9. Reconciliation to Form 5500

The following is a reconciliation of net assets available for plan benefits per the 2007 statement of net assets available for plan benefits to the Form 5500:

	December 31
	2007		2006

Net assets available for plan benefits per the financial statements	$	203,040,450	$	209,297,428
Less: Amounts allocated to withdrawn participants		–		850,631
Net assets available for plan benefits per the Form 5500	$	203,040,450	$	208,446,797


The following is a reconciliation of distributions to participants per the 2007 statement of changes in net assets available for plan benefits to the Form 5500:

	December 31
	2007

Distributions to participants per the financial statements	$	26,167,088
Plus: Amounts allocated to withdrawn participants at year-end		–
Less: Amounts allocated to withdrawn participants at prior year-end		850,631
Distributions to participants per the Form 5500	$	25,316,457

Amounts allocated to withdrawn participants are recorded on the Form 5500 for benefit payments that have been processed and approved for payment prior to year-end but not yet paid.

The Lincoln National Life Insurance Company
Agents’ Savings and Profit-Sharing Plan

Plan Number: 006
EIN: 35-0472300

Schedule H, Line 4i – Schedule of Assets (Held At End of Year)

December 31, 2007

(b)		(c)		(d)	(e)
		Description of Investment,
		Including Maturity Date
Identity of Issue, Borrower,		Rate of Interest,			Current
Lessor, or Similar Party		Par, or Maturity Value		Cost	Value

*Common stock account:
Lincoln National Corporation common stock			816,073 shares	**	$ 47,511,770
Wells Fargo Bank short-term
investment account		1,564,190 par value		**	1,564,190
					49,075,960
*Pooled separate accounts –
The Lincoln National Life Insurance
Company Separate Accounts:
	Core Equity Account	603,408.454	participation units	**	10,580,767
	Medium Capitalization Equity Account	558,122.762	participation units	**	9,500,756
	Short-Term Account	2,707,860.831	participation units	**	11,214,877
	Government/ Corporate Bond Account	502,647.363	participation units	**	4,947,357
	Large Capitalization Equity Account	703,700.685	participation units	**	7,734,304
	Balanced Account	399,671.268	participation units	**	3,767,261
	High Yield Bond Account	842,282.306	participation units	**	3,780,163
	Small Capitalization Equity Account	882,868.835	participation units	**	8,737,135
	Value Equity Account	1,922,453.540	participation units	**	6,001,708
	International Equity Account	941,916.059	participation units	**	11,832,632
	Conservative Balanced Account	409,589.675	participation units	**	1,028,234
	Aggressive Balanced Account	608,494.129	participation units	**	1,817,998
	Delaware Growth and Income Account	2,079,971.566	participation units	**	4,446,147
	Scudder VIT Equity 500 Index Account	4,049,051.948	participation units	**	5,133,793
	Fidelity VIP Contrafund	6,414,875.498	participation units	**	12,229,960
	Neuberger-Berman AMT Regency Account	1,506,244.982	participation units	**	2,751,458
	Social Awareness Account	1,311,610.737	participation units	**	1,789,955
	American Funds	4,869,650.703	participation units	**	7,094,107
	Insurance Series Global Growth
	Neuberger-Berman Mid-Cap Growth Account	3,341,287.715	participation units	**	5,687,874
	Scudder VIT Small Cap Index Account	1,781,845.843	participation units	**	3,313,342
	BlackRock Legacy Account	407,813.986	participation units	**	774,601
	American Funds International Account	395,626.878	participation units	**	8,936,420
					133,100,849
*Investment contracts –
The Lincoln National Life
Insurance Company (Guaranteed Account)		4.00% interest rate		**	14,604,738

Participant loans		Various loans at interest rates
		varying from 5.0% to 10.50%.		–	3,996,682
					$ 200,778,229

* Indicates party-in-interest to the Plan.
** Indicates a participant-directed account. The cost disclosure is not required.

SIGNATURE

THE PLAN: Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrator of The Lincoln National Life Insurance Company Agents' Savings and Profit-Sharing Plan has 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
	By: /s/ William David
Date: March 31, 2008	William David on Behalf of the Lincoln National Corporation Benefits Committee

EXHIBIT 1
Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the Registration Statement (Form S-3 No. 333-131943) pertaining to The Lincoln National Life Insurance Company Agents’ Savings and Profit-Sharing Plan of our report dated March 26, 2008, with respect to the financial statements and schedule of The Lincoln National Life Insurance Company Agents’ Savings and Profit-Sharing Plan included in this Annual Report (Form 11-K) for the year ended December 31, 2007.




Philadelphia, Pennsylvania	/s/ Ernst & Young LLP
March 26, 2008