Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from John Nadel – Sterne, Agee & Leach.
John Nadel – Sterne, Agee & Leach
A couple of questions for you, one, obviously asset-intensive has been rebounded very nicely. It was under a lot of pressure earlier in the year and maybe even late last year. I was just wondering if you could give us a little bit of help on what a more normalized environment level of earnings from that segment might look like if we had a more typical sort of 2% S&P quarterly market appreciation, which I think is what we generally tend to model for most of the equity-sensitive businesses across the space.
I was wondering if you could give us a little bit of help in that regard.
Jack B. Lay
Yes, we obviously had a very strong result in asset-intensive and in financial reinsurance in the third quarter. If you combine the two, that is look at all of non-traditional U.S. operations, the third quarter result was roughly double a typical run rate.
And maybe another way to look at it is if you look at it on a year-to-date basis, we're roughly at our annual expectations, if you combine those two, through three quarters, so you could do the math where essentially you're out running ahead by a third or so.
John Nadel – Sterne, Agee & Leach
And then my next question for you is on the tax item. I think we've been accustomed to a 35% or so tax rate, I guess on both operating income and on net income, and this quarter's was only about 50 basis points higher than that.
But if I X out the $5 million-plus little one-time item, the tax rate would have been more like 32.5%. Just wondering if is the 32.5% a better expectation as we look forward or is 35% still the right way to think about your overall consolidated tax rate?
Jack B. Lay
If you take a look at, typically the third quarter we do have a reduced effective tax rate and it relates to FIN 48 and the fact that we're filing returns and essentially cancelling off a year in terms of uncertain tax positions. So, I would suggest that you probably should expect something 32% or 33% in terms of an effective rate in the third quarter.
And I think if you look back historically, at least since FIN 48 has been part of the reporting landscape, you'll see something similar to that.
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