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Stock Analysis, IPO, Mutual Funds, Bonds & More
Insurance

Definition of 'Annualized Premium Equivalent'


Definition: Annualized premium equivalent (APE) is a common measure of ascertaining the business sales in the life insurance industry. It is the sum of the regular annualized premium from the new business plus 10% of the first single premium in a given period.

Description: APE is computed as:

APE = Annualized regular premium + 10 % of single premium (Including top-up premium).

Where annualized regular premium = Premium amount * Billing frequency.

Also See: Insurance, Annualized Premium, Group Policy, Return, Annuity, Insurable Interest, Insurability

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