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Federal Income Taxes
9 Months Ended
Sep. 30, 2013
Federal Income Taxes [Abstract]  
Federal Income Taxes

 

7.  Federal Income Taxes

 

The effective tax rate is a ratio of tax expense over pre-tax income (loss).  The effective tax rate was 24% and 23% for the three and nine months ended September 30, 2013, respectively.  The effective tax rate was 4% and 17% for the three and nine months ended September 30, 2012, respectively.  The effective tax rate on pre-tax income from continuing operations was lower than the prevailing corporate U.S. federal income statutory rate of 35% as a result of certain tax preferred investment income, separate account dividends-received deduction, foreign tax credits and other tax preference items.  A benefit to the effective tax rate was recognized in 2012 from a release of liability for uncertain tax positions related to the lapse of statute of limitations for prior year tax returns.