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