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Federal Income Taxes
9 Months Ended
Sep. 30, 2014
Federal Income Taxes [Abstract]  
Federal Income Taxes

 

6.  Federal Income Taxes

 

The effective tax rate is the ratio of tax expense over pre-tax income (loss).  The effective tax rate was 27% and 25% for the three and nine months ended September 30, 2014, respectively.  The effective tax rate was 24% and 23% for the three and nine months ended September 30, 2013, respectively.  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 deductions, foreign tax credits and other tax preference items.