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Federal Income Taxes
3 Months Ended
Mar. 31, 2020
Federal Income Taxes [Abstract]  
Federal Income Taxes 6. Federal Income Taxes

The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 16% and -13% for the three months ended March 31, 2020 and 2019, respectively. 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. The effective tax rate for the first quarter of 2019 is lower than in the current quarter primarily as a result of an increased level of realized losses in the first quarter of 2019, and the associated tax benefit resulting from the application of the corporate federal income tax rate of 21%.