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Federal Income Taxes
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements [Abstract]  
Federal Income Taxes

6. Federal Income Taxes

 

The effective tax rate is a ratio of tax expense over pre-tax income (loss). The effective tax rate was 20% and 27% for the three months ended March 31, 2012 and 2011, 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 deduction, foreign tax credits and other tax preference items.