Federal Income Taxes

9 Months Ended

Sep. 30, 2016

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 24% and 21% for the three and nine months ended September 30, 2016, respectively.  The effective tax rate was 15% and 19% for the three and nine months ended September 30, 2015, 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.  The effective tax rate on the pre-tax income from continuing operations was higher for the three and nine months ended September 30, 2016, compared to the corresponding periods in 2015.  This increase was due primarily to a higher level of pre-tax income that caused the tax preference items to have a less significant impact in 2016, partially offset by higher tax benefits primarily attributable to the release of reserves associated with prior tax years that closed in the third quarter of 2016.