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Federal Income Taxes
6 Months Ended
Jun. 30, 2012
Notes to Financial Statements [Abstract]  
Federal Income Taxes

6. Federal Income Taxes

 

The effective tax rate is a ratio of tax expense over pre-tax income (loss). The effective tax rate was 27% and 24% for the three and six months ended June 30, 2012, respectively. The effective tax rate was 26% for the three and six months ended June 30, 2011. The effective tax rate on pre-tax income from continuing operations was lower than the prevailing corporate federal income tax rate. Differences in the effective rates and the U.S. statutory rate of 35% were the result of certain tax preferred investment income, separate account dividends-received deduction, foreign tax credits and other tax preference items.