Federal Income Taxes

6 Months Ended

Jun. 30, 2023

Federal Income Taxes [Abstract]

Federal Income Taxes

18. Federal Income Taxes

The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 15% and 35% for the three and six months ended June 30, 2023, respectively, compared to 19% for the corresponding periods in 2022. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21% due to benefits from preferential tax items including the separate accounts dividends-received deduction and tax credits.

For the three months ended June 30, 2023, the effective tax rate differed from the prevailing corporate federal tax rate due primarily to the effects of the preferential tax items. For the six months ended June 30, 2023, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to a tax benefit at 21% from pre-tax losses in addition to the effects of preferential tax items.

For the three and six months ended June 30, 2022, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of the preferential tax items.