Income Variability Adjustments

Income Variability Adjustments are changes made to an insurance company's expected profits to reflect fluctuations in income due to economic conditions or investment results. These adjustments help ensure the company's financial stability and ability to meet future obligations by smoothing out short-term income swings. Essentially, they modify projected earnings to account for variability, providing a more accurate picture of the company's long-term financial health and ensuring it remains capable of fulfilling policyholder commitments even when income sources fluctuate unexpectedly.