Federal Income Taxes

6 Months Ended

Jun. 30, 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 23%and 16% for the three and six months ended June 30, 2017, respectively.  The effective tax rate was 21% and 18% for the three and six months ended June 30, 2016, respectively.  The effective tax rate 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.