Edgar Filing: LINCOLN NATIONAL CORP

Lincoln 11k

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

(Mark One)

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

EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2005

|_| 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

1500 Market Street, Suite 3900

Centre Square West Tower

Philadelphia, PA 19102

REQUIRED INFORMATION

Financial statements and schedules 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, 2005 and 2004 and for three years ended December 31, 2005, 2004, and 2003

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, 2005 and 2004 and for three years ended December 31, 2005, 2004, and 2003



Contents



Report of Independent Registered Public Accounting Firm	1

Audited Financial Statements:

Statements of Net Assets Available for Plan Benefits	2
Statement 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)	20

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 benefits of The Lincoln National Life Insurance Company Agents’ Savings and Profit-Sharing Plan as of December 31, 2005 and 2004, and the related statements of changes in net assets available for benefits for each of the three years in the period ended December 31, 2005. 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 audit 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 benefits of the Plan at December 31, 2005 and 2004, and the changes in its net assets available for benefits for each of the three years in the period ended December 31, 2005, 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, 2005, 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.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

March 24, 2006

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

Statements of Net Assets Available for Plan Benefits


	December 31
	2005		2004
Assets
Investments:
Common stock – Lincoln National Corporation
(cost: 2005 – $37,144,896; 2004 – $43,578,228)	$	53,923,715	$	58,721,853
Wells Fargo Bank Short-Term Investment Account		800,619		1,195,934
Pooled separate accounts – The Lincoln National
Life Insurance Company Separate Accounts
(cost: 2005 – $76,485,949; 2004 – $72,213,058)		108,129,318		99,529,718
Investment contracts – The Lincoln National
Life Insurance Company		14,904,972		17,598,686
Participant loans		3,965,728		4,151,804
Total investments		181,724,352		181,197,995

Accrued interest receivable		53,592		60,484
Due from broker		48,464		–
Contributions receivable from employer companies		964,322		2,878,195
Total assets		182,790,730		184,136,674

Liabilities
Due to broker		–		26,629
Total liabilities		–		26,629
Net assets available for plan benefits	$	182,790,730	$	184,110,045

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
	2005			2004			2003
Investment income:
Cash dividends – Lincoln National Corporation	$	1,637,253		$	1,819,776		$	1,924,171
Interest:
The Lincoln National Life
Insurance Company Separate Accounts		690,088			748,249			638,100
Other		236,082			250,743			275,985
		926,170			998,992			914,085
		2,563,423			2,818,768			2,838,256
Net realized gain (loss) on sale
and distributions of investments:
Lincoln National Corporation
common stock		5,362,745			4,070,037			1,563,498

The Lincoln National Life Insurance
Company Separate Accounts		3,712,858			1,652,409			(1,040,533	)
		9,075,603			5,722,446			522,965

Net unrealized appreciation
of investments		5,961,900			12,363,106			29,055,510
Contributions:
Participants		7,297,381			7,452,877			6,280,189
Employer companies		3,068,581			5,199,336			6,056,534
		10,365,962			12,652,213			12,336,723

Transfers from affiliated plans		593,910			3,588,680			285,051
Distributions to participants		(29,711,933	)		(14,994,001	)		(15,112,736	)
Administrative expenses		(168,180	)		(128,210	)		(103,179	)

Net increase (decrease) in net
assets available for plan benefits		(1,319,315	)		22,023,002			29,822,590
Net assets available for plan benefits
at beginning of the year		184,110,045			162,087,043			132,264,453
Net assets available for plan benefits
at end of the year	$	182,790,730		$	184,110,045		$	162,087,043

See accompanying notes.

The Lincoln National Life Insurance Company

Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements

1. Significant Accounting Policies

Investment 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 Composite Listing on the last business day of the year.

The Wells Fargo Bank Short-Term Investment Account is valued at cost, which approximates fair value.

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

The investment contracts are valued at contract value as estimated by The Lincoln National Life Insurance Company ("Lincoln Life"). Contract value represents net contributions plus interest at the contract rate. 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.

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 full-time agents of Lincoln Life and other participating employers. A participant may make pre-tax contributions at a rate of at least 1% but not more than 25% of eligible earnings, up to a maximum annual amount as determined under applicable law. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

In addition to each participant's pre-tax contributions, employer matching contributions to the Plan are provided in the form of a basic match of $0.50 for each dollar a participant contributes, not to exceed 6% of eligible earnings, and an annual discretionary match of up to $1.00 for each dollar contributed by an eligible participant, not to exceed 6% of eligible earnings. Participants employed on the last day of the plan year are eligible to receive the discretionary match, as are participants who retired, died, or became disabled during the plan year. The amount of the discretionary match varies according to whether LNC and Lincoln Financial Advisors Corporation have met certain performance-based criteria, as determined by the Compensation Committee of LNC's Board of Directors.

The Lincoln National Life Insurance Company

Agents' Savings and Profit-Sharing Plan

Notes to Financial Statements (continued)

2. Description of the Plan (continued)

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 and the basic employer matching contributions in any combination of the investment options offered under the Plan. Discretionary employer contributions are initially invested in the LNC Common Stock Account; however, participants can immediately direct the investment of the discretionary employer matching contributions to other investment options.

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 termination of the Plan, all amounts allocated to participants' accounts shall 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%. 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 or beneficiary, in case of the participant's death, 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. 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 ("IRA") or other qualified arrangement.

Each participant's account is credited with the participant's contributions, employer 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, 2005

December 31, 2004

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

1,016,853

53,923,715

1,257,966

58,721,853

Pooled separate account investment

contracts underwritten by Lincoln Life:

Core Equity Account

824,597.484

14.835

12,233,234

956,272.451

14.116

13,498,359

Medium Capitalization Equity Account

734,938.419

13.760

10,112,973

833,783.418

12.548

10,462,314

Short-Term Account

2,149,801.047

3.777

8,120,658

1,700,613.780

3.677

6,253,838

Government/ Corporate Bond Account

354,494.503

8.943

3,170,138

291,777.749

8.725

2,545,761

Large Capitalization Equity Account

1,115,245.939

9.543

10,643,015

1,201,311.739

8.336

10,014,376

Balanced Account

339,718.660

8.129

2,761,505

261,627.576

7.654

2,002,419

High Yield Bond Account

842,271.585

3.932

3,312,065

721,142.318

3.779

2,725,052

Small Capitalization Equity Account

1,178,821.391

8.329

9,818,639

1,403,790.064

7.903

11,094,295

Value Equity Account

2,108,301.523

2.572

5,422,130

2,501,312.327

2.442

6,108,705

International Equity Account

1,098,341.429

9.766

10,726,842

1,067,960.074

8.701

9,292,320

Conservative Balanced Account

349,127.833

2.200

768,116

232,576.568

2.115

491,876

Aggressive Balanced Account

389,545.026

2.539

989,016

379,036.436

2.373

899,606

Delaware Growth and Income Account

1,156,905.944

1.785

2,065,540

918,745.140

1.693

1,555,893

Scudder VIT Equity 500 Index Account

3,616,416.234

1.049

3,793,259

4,168,208.538

1.005

4,189,465

Fidelity VIP Contrafund

5,256,435.601

1.458

7,665,460

4,383,002.727

1.250

5,478,314

Neuberger-Berman AMT Regency Account

2,056,425.337

1.596

3,281,027

1,894,203.416

1.427

2,702,461

Social Awareness Account

1,563,453.979

1.187

1,856,133

1,220,854.693

1.063

1,297,647

American Funds New Perspective

3,412,657.312

1.062

3,624,242

2,928,516.285

0.956

2,800,247

Neuberger-Berman Mid-Cap Growth Account

2,471,345.139

1.215

3,002,684

1,880,412.759

1.070

2,011,666

Scudder VIT Small Cap Index Account

1,621,173.104

1.621

2,627,273

1,878,239.710

1.557

2,924,044

Janus Aspen Growth Account

27,422.947

9.792

268,526

31,596.547

9.443

298,351

Fidelity VIP Overseas Account

128,967.468

14.475

1,866,843

72,217.004

12.223

882,709

Total pooled separate accounts

108,129,318

99,529,718

Contract Value

Investment contracts

underwritten by Lincoln Life

14,904,972

17,598,686

Estimated Value

Wells Fargo Bank short-term

investment account

800,619

1,195,934

Participants loans

3,965,728

4,151,804

Total investments

181,724,352

181,197,995

* Investments that represent 5% or more of the fair value of net assets available for benefits as of the indicated date.

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

Notes to Financial Statements (continued)


3. Investments (continued)

Net realized gain (loss) on sale and distribution of investments is summarized as follows:

	Year Ended December 31
	2005		2004		2003
Common stock
Proceeds from disposition of stock	$	14,876,314	$	11,566,749	$	6,636,009
Cost of stock disposed		9,513,569		7,496,712		5,072,511
Net realized gain on sale and distribution
of common stock	$	5,362,745	$	4,070,037	$	1,563,498

Pooled separate accounts
Proceeds from disposition of units	$	33,710,587	$	29,304,850	$	33,001,417
Cost of units disposed		29,997,729		27,652,441		34,041,950
Net realized gain (loss) on sale and distribution
of pooled separate accounts	$	3,712,858	$	1,652,409	$	(1,040,533	)

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
		2005		2004		2003
Fair value in excess of cost:
At beginning of the year	$	42,460,285	$	30,097,179	$	1,041,669
At end of the year		48,422,185		42,460,285		30,097,179
Change in net unrealized appreciation of investments	$	5,961,900	$	12,363,106	$	29,055,510

Common stock	$	1,635,194	$	4,108,565	$	11,125,039
Pooled separate accounts		4,326,706		8,254,541		17,930,471
Change in net unrealized appreciation of investments	$	5,961,900	$	12,363,106	$	29,055,510

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, 2005 and 2004, respectively. The rate on new contributions is guaranteed through the three succeeding calendar year quarters. The credited interest rates for the remaining contract value balance was 4.0% at both December 31, 2005 and 2004, 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 4.0%. 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 aggregate movement of funds to other investment options. The fair value of the investment contracts approximates contract value. Participants are allocated interest on the investment contracts based on the average rate earned on all plan investments in the investment contracts.

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, 2005

Total

Assets

Investments:

Common stock

53,923,715

–

Short-term investment fund

800,619

–

Pooled separate accounts

108,129,318

–

12,233,234

10,112,973

8,120,658

3,170,138

Investment contracts

14,904,972

–

14,904,972

–

Participant loans

3,965,728

–

Total investments

181,724,352

54,724,334

14,904,972

12,233,234

10,112,973

8,120,658

3,170,138

Accrued interest receivable

53,592

5,147

48,445

–

Due from (to) broker

48,464

–

22,523

–

Contributions receivable from employer companies

964,322

–

Net assets available for plan benefits

182,790,730

55,693,803

14,975,940

12,233,234

10,112,973

8,120,658

3,170,138

Number of participants selecting investment options

1,293

317

551

597

200

242

Investment Options

December 31, 2005

Assets

Investments:

Common stock

–

Short-term investment account

–

Pooled separate accounts

10,643,015

2,761,505

3,312,065

9,818,639

5,422,130

10,726,842

768,116

Investment contracts

–

Participant loans

–

Total investments

10,643,015

2,761,505

3,312,065

9,818,639

5,422,130

10,726,842

768,116

Accrued interest receivable

–

Due from (to) broker

2,192

1,978

(117,764

)

3,652

4,026

45,372

–

Contributions receivable from employer companies

–

Net assets available for plan benefits

10,645,207

2,763,483

3,194,301

9,822,291

5,426,156

10,772,214

768,116

Number of participants selecting investment options

641

200

356

697

455

742

Investment Options

December 31, 2005

Assets

Investments:

Common stock

–

Short-term investment account

–

Pooled separate accounts

989,016

2,065,540

3,793,259

7,665,460

3,281,027

1,856,133

3,624,242

Investment contracts

–

Participant loans

–

Total investments

989,016

2,065,540

3,793,259

7,665,460

3,281,027

1,856,133

3,624,242

Accrued interest receivable

–

Due from (to) broker

–

38,037

1,826

813

7,893

Contributions receivable from employer companies

–

Net assets available for plan benefits

989,016

2,065,540

3,793,259

7,703,497

3,282,853

1,856,946

3,632,135

Number of participants selecting investment options

122

245

200

466

292

134

320

Investment Options

December 31, 2005

Loans

Assets

Investments:

Common stock

–

Short-term investment account

–

Pooled separate accounts

3,002,684

2,627,273

268,526

1,866,843

–

Investment contracts

–

Participant loans

–

3,965,728

Total investments

3,002,684

2,627,273

268,526

1,866,843

3,965,728

Accrued interest receivable

–

Due from (to) broker

–

802

37,114

–

Contributions receivable from employer companies

–

Net assets available for plan benefits

3,002,684

2,627,273

269,328

1,903,957

3,965,728

Number of participants selecting investment options

323

306

212

215

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, 2004

Total

Assets

Investments:

Common stock

58,721,853

–

Short-term investment account

1,195,934

–

Pooled separate accounts

99,529,718

–

13,498,359

10,462,314

6,253,838

2,545,761

Investment contracts

17,598,686

–

17,598,686

–

Participant loans

4,151,804

–

Total investments

181,197,995

59,917,787

17,598,686

13,498,359

10,462,314

6,253,838

2,545,761

Accrued interest receivable

60,484

2,134

58,350

–

Due from (to) broker

(26,629

)

–

74,516

66,870

–

34,989

Contributions receivable from employer companies

2,878,195

–

Net assets available for plan benefits

184,110,045

62,798,116

17,657,121

13,572,875

10,529,184

6,253,838

2,580,750

Number of participants selecting investment options

1,423

340

631

699

230

247

Investment Options

December 31, 2004

Assets

Investments:

Common stock

–

Short-term investment account

–

Pooled separate accounts

10,014,376

2,002,419

2,725,052

11,094,295

6,108,705

9,292,320

491,876

Investment contracts

–

Participant loans

–

Total investments

10,014,376

2,002,419

2,725,052

11,094,295

6,108,705

9,292,320

491,876

Accrued interest receivable

–

Due from (to) broker

18,155

4,545

(4,085

)

83,286

(26,624

)

57,800

126

Contributions receivable from employer companies

–

Net assets available for plan benefits

10,032,531

2,006,964

2,720,967

11,177,581

6,082,081

9,350,120

492,002

Number of participants selecting investment options

737

209

361

808

536

710

Investment Options

December 31, 2004

Assets

Investments:

Common stock

–

Short-term investment account

–

Pooled separate accounts

899,606

1,555,893

4,189,465

5,478,314

2,702,461

1,297,647

2,800,247

Investment contracts

–

Participant loans

–

Total investments

899,606

1,555,893

4,189,465

5,478,314

2,702,461

1,297,647

2,800,247

Accrued interest receivable

–

Due from (to) broker

–

3,579

(22,688

)

(108,815

)

(128,944

)

91,085

(63,077

)

Contributions receivable from employer companies

–

Net assets available for plan benefits

899,606

1,559,472

4,166,777

5,369,499

2,573,517

1,388,732

2,737,170

Number of participants selecting investment options

111

183

225

376

226

259

Investment Options

December 31, 2004

Loans

Assets

Investments:

Common stock

–

Short-term investment account

–

Pooled separate accounts

2,011,666

2,924,044

298,351

882,709

–

Investment contracts

–

Participant loans

–

4,151,804

Total investments

2,011,666

2,924,044

298,351

882,709

4,151,804

Accrued interest receivable

–

Due from (to) broker

(25,532

)

(95,448

)

13,081

467

–

Contributions receivable from employer companies

–

Net assets available for plan benefits

1,986,134

2,828,596

311,432

883,176

4,151,804

Number of participants selecting investment options

303

307

163

233

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

Investment income:

Cash dividends

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

–

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 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 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 increase (decrease) 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

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 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 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 increase (decrease) 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

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 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 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 increase (decrease) 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

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 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 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 increase (decrease) 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)

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

Investment Options

December 31, 2004

Total

Investment income:

Cash dividends

1,819,776

–

Interest

998,992

24,854

723,395

–

Total investment income

2,818,768

1,844,630

723,395

–

Net realized gain (loss) on sale and

distribution of investments:

Common stock

4,070,037

–

Pooled separate accounts

1,652,409

–

203,967

(3,539

)

51,005

118,385

Total net realized gains (losses)

5,722,446

4,070,037

–

203,967

(3,539

)

51,005

118,385

Net unrealized appreciation

(depreciation) of investments

12,363,106

4,108,565

–

1,184,989

1,379,549

1,288

34,359

Contributions:

Participant

7,452,877

748,914

248,869

691,806

602,308

244,033

150,522

Employer companies

5,199,336

3,161,387

85,062

223,592

200,559

64,686

40,739

Total contributions

12,652,213

3,910,301

333,931

915,398

802,867

308,719

191,261

Transfers to affiliated plans

3,588,680

614,533

871,935

296,183

276,040

141,047

76,543

Distributions to participants

(14,994,001

)

(5,348,906

)

(1,809,653

)

(780,660

)

(705,912

)

(1,789,266

)

(289,392

)

Administrative expenses

(128,210

)

(46,539

)

(12,364

)

(9,549

)

(7,507

)

(4,818

)

(1,914

)

Net transfers

–

(6,687,825

)

1,601,822

(339,334

)

(686,780

)

1,944,681

143,516

Net increase (decrease) in net

assets available for plan benefits

22,023,002

2,464,796

1,709,066

1,470,994

1,054,718

652,656

272,758

Net assets available for plan

benefits at beginning of the year

162,087,043

60,333,320

15,948,055

12,101,881

9,474,466

5,601,182

2,307,992

Net assets available for plan

benefits at end of the year

184,110,045

62,798,116

17,657,121

13,572,875

10,529,184

6,253,838

2,580,750

Investment Options

December 31, 2004

Investment income:

Cash dividends

–

Interest

–

Total investment income

–

Net realized gain (loss) on sale and

distribution of investments:

Common stock

–

Pooled separate accounts

(188,688

)

55,178

136,428

305,375

89,484

272,710

18,830

Total net realized gains (losses)

(188,688

)

55,178

136,428

305,375

89,484

272,710

18,830

Net unrealized appreciation

(depreciation) of investments

431,322

108,514

134,775

1,004,627

502,684

1,267,577

16,777

Contributions:

Participant

805,344

173,788

185,635

741,598

497,130

591,062

36,869

Employer companies

261,466

53,278

55,264

227,043

150,881

182,480

11,905

Total contributions

1,066,810

227,066

240,899

968,641

648,011

773,542

48,774

Transfers to affiliated plans

155,178

1,501

19,033

225,840

158,488

116,473

–

Distributions to participants

(777,277

)

(183,498

)

(73,459

)

(717,672

)

(413,380

)

(411,164

)

(14,303

)

Administrative expenses

(7,967

)

(1,428

)

(1,769

)

(8,185

)

(4,158

)

(5,949

)

(367

)

Net transfers

(734,508

)

250,181

7,135

(509,167

)

428,499

630,405

(11,517

)

Net increase (decrease) in net

assets available for plan benefits

(55,130

)

457,514

463,042

1,269,459

1,409,628

2,643,594

58,194

Net assets available for plan

benefits at beginning of the year

10,087,661

1,549,450

2,257,925

9,908,122

4,672,453

6,706,526

433,808

Net assets available for plan

benefits at end of the year

10,032,531

2,006,964

2,720,967

11,177,581

6,082,081

9,350,120

492,002

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, 2004

Investment income:

Cash dividends

–

Interest

–

Total investment income

–

Net realized gain (loss) on sale and

distribution of investments:

Common stock

–

Pooled separate accounts

15,861

33,241

96,378

84,290

100,306

70,301

(72,288

)

Total net realized gains (losses)

15,861

33,241

96,378

84,290

100,306

70,301

(72,288

)

Net unrealized appreciation

(depreciation) of investments

67,620

113,392

295,717

537,009

315,620

77,919

305,514

Contributions:

Participant

122,416

160,835

229,911

352,392

150,485

63,352

136,142

Employer companies

31,944

45,509

66,604

99,622

42,459

17,056

40,541

Total contributions

154,360

206,344

296,515

452,014

192,944

80,408

176,683

Transfers to affiliated Plans

33,405

12,599

234,516

39,198

23,085

5,632

98,166

Distributions to participants

(95,828

)

(38,684

)

(123,031

)

(349,783

)

(140,610

)

(35,899

)

(224,214

)

Administrative expenses

(627

)

(981

)

(2,968

)

(3,091

)

(1,472

)

(934

)

(1,312

)

Net transfers

140,129

243,550

(156,924

)

1,450,616

653,881

123,294

1,111,652

Net increase (decrease) in net

assets available for plan benefits

314,920

569,461

640,203

2,210,253

1,143,754

320,721

1,394,201

Net assets available for plan

benefits at beginning of the year

584,686

990,011

3,526,574

3,159,246

1,429,763

1,068,011

1,342,969

Net assets available for plan

benefits at end of the year

899,606

1,559,472

4,166,777

5,369,499

2,573,517

1,388,732

2,737,170

Investment Options

December 31, 2004

Loans

Investment income:

Cash dividends

–

Interest

–

250,743

Total investment income

–

250,743

Net realized gain (loss) on sale and

distribution of investments:

Common stock

–

Pooled separate accounts

29,076

147,930

39,823

48,356

–

Total net realized gains (losses)

29,076

147,930

39,823

48,356

–

Net unrealized appreciation

(depreciation) of investments

235,544

223,675

(21,832

)

37,902

–

Contributions:

Participant

200,906

212,549

27,387

78,624

–

Employer companies

55,631

56,071

6,768

18,789

–

Total contributions

256,537

268,620

34,155

97,413

–

Transfers to affiliated plans

21,996

89,182

53,567

24,540

–

Distributions to participants

(172,305

)

(136,161

)

(23,429

)

(22,550

)

(316,965

)

Administrative expenses

(1,347

)

(2,011

)

(346

)

(607

)

–

Net transfers

174,640

175,250

(122,114

)

168,918

–

Net increase (decrease) in net

assets available for plan benefits

544,141

766,485

(40,176

)

353,972

(66,222

)

Net assets available for plan

benefits at beginning of the year

1,441,993

2,062,111

351,608

529,204

4,218,026

Net assets available for plan

benefits at end of the year

1,986,134

2,828,596

311,432

883,176

4,151,804

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, 2003

Total

Investment income:

Cash dividends

1,924,171

–

Interest

914,085

15,311

622,789

–

Total investment income

2,838,256

1,939,482

622,789

–

Net realized gain (loss) on sale and

distribution of investments:

Common stock

1,563,498

–

Pooled separate accounts

(1,040,533

)

–

(86,860

)

(324,703

)

99,353

186,429

Total net realized gains (losses)

522,965

1,563,498

–

(86,860

)

(324,703

)

99,353

186,429

Net unrealized appreciation

(depreciation) of investments

29,055,510

11,125,039

–

2,867,561

2,607,152

(38,827

)

27,141

Contributions:

Participant

6,280,189

954,053

229,346

618,903

547,801

202,458

181,394

Employer companies

6,056,534

4,300,682

81,192

210,048

190,321

62,817

44,803

Total contributions

12,336,723

5,254,735

310,538

828,951

738,122

265,275

226,197

Transfers to affiliated plans

285,051

72,815

(225,925

)

(27,431

)

72,098

(85,843

)

16,781

Distributions to participants

(15,112,736

)

(3,938,718

)

(1,674,653

)

(690,935

)

(672,902

)

(1,906,570

)

(1,060,535

)

Administrative expenses

(103,179

)

(37,385

)

(11,496

)

(7,744

)

(5,938

)

(6,154

)

(2,038

)

Net transfers

–

(4,787,547

)

1,548,319

(89,927

)

360,326

(1,361,027

)

374,601

Net increase (decrease) in net

assets available for plan benefits

29,822,590

11,191,919

569,572

2,793,615

2,774,155

(3,033,793

)

(231,424

)

Net assets available for plan

benefits at beginning of the year

132,264,453

49,141,401

15,378,483

9,308,266

6,700,311

8,634,975

2,539,416

Net assets available for plan

benefits at end of the year

162,087,043

60,333,320

15,948,055

12,101,881

9,474,466

5,601,182

2,307,992

Investment Options

December 31, 2003

Investment income:

Cash dividends

–

Interest

–

Total investment income

–

Net realized gain (loss) on sale and

distribution of investments:

Common stock

–

Pooled separate accounts

(505,088

)

12,908

212,775

(144,779

)

(102,761

)

22,254

17,868

Total net realized gains (losses)

(505,088

)

12,908

212,775

(144,779

)

(102,761

)

22,254

17,868

Net unrealized appreciation

(depreciation) of investments

2,489,266

251,242

291,368

2,699,755

1,078,364

1,851,824

30,107

Contributions:

Participant

726,921

145,412

133,667

619,840

429,409

396,354

36,302

Employer companies

247,494

49,839

44,696

203,487

140,182

139,205

13,290

Total contributions

974,415

195,251

178,363

823,327

569,591

535,559

49,592

Transfers to affiliated plans

49,433

54,428

86,123

141,515

(1,140

)

55,930

(2,816

)

Distributions to participants

(1,053,523

)

(264,923

)

(394,941

)

(904,542

)

(410,144

)

(570,470

)

(126,688

)

Administrative expenses

(7,124

)

(1,140

)

(1,480

)

(6,280

)

(3,027

)

(3,912

)

(360

)

Net transfers

(467,065

)

38,391

569,299

(327,707

)

(79,799

)

512,117

84,261

Net increase (decrease) in net

assets available for plan benefits

1,480,314

286,157

941,507

2,281,289

1,051,084

2,403,302

51,964

Net assets available for plan

benefits at beginning of the year

8,607,347

1,263,293

1,316,418

7,626,833

3,621,369

4,303,224

381,844

Net assets available for plan

benefits at end of the year

10,087,661

1,549,450

2,257,925

9,908,122

4,672,453

6,706,526

433,808

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, 2003

Investment income:

Cash dividends

–

Interest

–

Total investment income

–

Net realized gain (loss) on sale and

distribution of investments:

Common stock

–

Pooled separate accounts

7,119

(6,874

)

(54,667

)

6,812

(171

)

(6,860

)

(340,337

)

Total net realized gains (losses)

7,119

(6,874

)

(54,667

)

6,812

(171

)

(6,860

)

(340,337

)

Net unrealized appreciation

(depreciation) of investments

94,774

187,710

735,010

618,239

351,190

169,673

648,753

Contributions:

Participant

68,137

75,269

138,688

196,536

102,623

33,513

137,349

Employer companies

16,468

24,366

45,675

65,512

34,251

10,930

40,651

Total contributions

84,605

99,635

184,363

262,048

136,874

44,443

178,000

Transfers to affiliated plans

28,712

(1,152

)

44,307

–

11,882

5,252

(4,398

)

Distribution to participants

(52,635

)

(29,174

)

(265,152

)

(206,183

)

(116,579

)

(31,733

)

(236,552

)

Administrative expenses

(376

)

(536

)

(1,818

)

(1,716

)

(853

)

(411

)

(1,295

)

Net transfers

105,961

248,225

1,023,800

659,588

58,024

555,838

(432,214

)

Net increase (decrease) in net

assets available for plan benefits

268,160

497,834

1,665,843

1,338,788

440,367

736,202

(188,043

)

Net assets available for plan

benefits at beginning of the year

316,526

492,177

1,860,731

1,820,458

989,396

331,809

1,531,012

Net assets available for plan

benefits at end of the year

584,686

990,011

3,526,574

3,159,246

1,429,763

1,068,011

1,342,969

Investment Options

December 31, 2003

Loans

Investment income:

Cash dividends

–

Interest

–

275,985

Total investment income

–

275,985

Net realized gain (loss) on sale and

distribution of investments:

Common stock

–

Pooled separate accounts

(91,840

)

35,349

5,706

17,834

–

Total net realized gains (losses)

(91,840

)

35,349

5,706

17,834

–

Net unrealized appreciation

(depreciation) of investments

386,369

422,749

62,822

98,229

–

Contributions:

Participant

157,349

112,935

15,485

20,445

–

Employer companies

50,064

29,995

4,594

5,972

–

Total contributions

207,413

142,930

20,079

26,417

–

Transfers to affiliated plans

(262

)

3,783

–

(9,041

)

–

Distributions to participants

(140,046

)

(136,746

)

(19,714

)

(1,298

)

(207,380

)

Administrative expenses

(930

)

(846

)

(145

)

(175

)

–

Net transfers

11,331

915,975

189,490

289,740

–

Net increase (decrease) in net

assets available for plan benefits

372,035

1,383,194

258,238

421,706

68,605

Net assets available for plan

benefits at beginning of the year

1,069,958

678,917

93,370

107,498

4,149,421

Net assets available for plan

benefits at end of the year

1,441,993

2,062,111

351,608

529,204

4,218,026

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 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 returns 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 primarily in large capitalization stocks of conservative companies that are industry leaders.


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

Notes to Financial Statements (continued)

4. Investment Options (continued)

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.

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 in primarily 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 (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.

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 24 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. To maintain its qualification, the Plan must operate in conformity with the Code. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the plan is qualified and the related trust is tax exempt. The Plan Sponsor has indicated that it will take the necessary steps, if any, to maintain the Plan's qualified status.

6. Tax Implications to Participants

There are no income tax consequences to participants arising from their pre‑tax 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 $168,180, $128,210, and $103,179 in 2005, 2004 and 2003, 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 $53,923,715, $108,129,318, and $14,904,976, respectively, at December 31, 2005 (29.5%, 59.2% and 8.2% 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. Subsequent Events

On Monday, October 10, 2005, Lincoln National Corporation, the parent company of the Lincoln Financial Group of companies and Jefferson Pilot Corporation, the parent company of the Jefferson Pilot Financial Group of companies announced a definitive merger agreement. The merger will be effective April 3, 2006, the merged company will operate under the brand name Lincoln Financial Group.



Effective March 1, 2006, the following two new Investment Options will be available for investment: The American Funds International Account (SA #54) and The BlackRock Legacy Account (SA #81). In addition, as of that same date, the Janus Aspen Series Large Cap Growth Account (SA #70) and the Fidelity VIP Overseas Account (SA #59) will be closed. On March 3, 2006, any assets remaining in the Janus Aspen Series Large Cap Growth Account will be automatically transferred to The BlackRock Legacy Account and any remaining assets in the Fidelity VIP Overseas Account will be transferred to the American Funds International Account.

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, 2005

(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		1,016,853	shares	**	$ 53,923,715
Wells Fargo Bank Short-Term Investment Account		800,619	par value	**	800,619
					54,724,334
* Pooled separate accounts--
The Lincoln National Life Insurance
Company Separate Accounts:
	Core Equity Account	824,597.484	participation units	**	12,233,234
	Medium Capitalization Equity Account	734,938.419	participation units	**	10,112,973
	Short-Term Account	2,149,801.047	participation units	**	8,120,658
	Government/ Corporate Bond Account	354,494.503	participation units	**	3,170,138
	Large Capitalization Equity Account	1,115,245.939	participation units	**	10,643,015
	Balanced Account	339,718.660	participation units	**	2,761,505
	High Yield Bond Account	842,271.585	participation units	**	3,312,065
	Small Capitalization Equity Account	1,178,821.391	participation units	**	9,818,639
	Value Equity Account	2,108,301.523	participation units	**	5,422,130
	International Equity Account	1,098,341.429	participation units	**	10,726,842
	Conservative Balanced Account	349,127.833	participation units	**	768,116
	Aggressive Balanced Account	389,545.026	participation units	**	989,016
	Delaware Growth and Income Account	1,156,905.944	participation units	**	2,065,540
	Scudder VIT Equity 500 Index Account	3,616,416.234	participation units	**	3,793,259
	Fidelity VIP Contrafund	5,256,435.601	participation units	**	7,665,460
	Neuberger-Berman AMT Regency Account	2,056,425.337	participation units	**	3,281,027
	Social Awareness Account	1,563,453.979	participation units	**	1,856,133
	American Funds New Perspective	3,412,657.312	participation units	**	3,624,242
	Neuberger-Berman Mid-Cap Growth Account	2,471,345.139	participation units	**	3,002,684
	Scudder VIT Small Cap Index Account	1,621,173.104	participation units	**	2,627,273
	Janus Aspen Growth Account	27,422.947	participation units	**	268,526
	Fidelity VIP Overseas Account	128,967.468	participation units	**	1,866,843
					108,129,318
* Investment contracts--
The Lincoln National Life
Insurance Company (Guaranteed Account)			4.00% interest rate	**	14,904,972

Participant loans		Various loans at interest rates
		varying from 5.0% to 10.75%.		-	3,965,728
					$181,724,352

* 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.



	Lincoln National Life Insurance Company Agents' Savings and Profit-Sharing Plan
	By: Stephen J. Dover
Date: March 31, 2006	Stephen J. Dover
	Plan Administrator