Federal Income Taxes

3 Months Ended

Mar. 31, 2017

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 8% and 10% for the three months ended March 31, 2017 and 2016, respectively.  The amount previously reported for the three months ended March 31, 2016, was updated due to the October 1, 2016, adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting.  For more information, see Note 2 in our 2016 Form 10-K.  The effective tax rate on pre-tax income from continuing operations was significantly 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 the separate accounts dividends-received deduction, certain tax preferred investment income, foreign tax credits and other tax preference items.