Annual premium equivalent
- Annual premium equivalent
Annual premium equivalent (APE) is used for comparison of cost by determining what the price would be if paid once for a year's period. This is particularly used when the sales contain both single premium and regular premium business. This is used in insurance industry to allow comparisons of the amount of new business gained in a period by insurance companies. [ [http://moneyterms.co.uk/annual-premium-equivalent Annual premium equivalent ] ]
There can be single payment premiums which is actually the sales spread over a period of long time. (In contrast to the recurring premiums which involves payment of premiums every year). So APE is a measure to normalize the single premium payments to the recurring payment premium equivalent. This helps in comparing the sales accurately.
Related categories
* Insurance
* PVNBP (Present value of new business premium)
* European embedded value (EEV)
References
Wikimedia Foundation.
2010.
Look at other dictionaries:
Annual Premium Equivalent - APE — A common sales measure technique used by insurance companies in the United Kingdom where the sales of a given entity are estimated by taking the value of regular premiums, plus 10% of any new single premiums written for the fiscal year. The… … Investment dictionary
premium — premium, prize, award, reward, meed, guerdon, bounty, bonus are comparable when they mean something which is bestowed upon a person as a recompense for cooperation, greater effort, superior merit, or supremacy in competition. Premium is applied… … New Dictionary of Synonyms
Miles per gallon gasoline equivalent — Monroney label showing the EPA s fuel economy equivalent ratings for the 2011 Chevrolet Volt. The rating for all electric mode (left) is expressed in miles per gallon gasoline equivalent. Miles per gallon gasoline equivalent (MPGe or MPGge) is a… … Wikipedia
Yield spread premium — The yield spread premium (YSP) is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale par rate that the borrower qualifies for. For example, If a mortgage broker offers a borrower a loan of $100,000 at… … Wikipedia
APE — Annual Premium Equivalent (Business » Accounting) * Acute Pulmonary Edema (Medical » Physiology) … Abbreviations dictionary
PVNBP — is Present value of new business premiums. This is a term used in insurance to indicate the present value of total sales (premiums) confirmed to receive from present to future. It will be the sum of single premiums and present value of recurring… … Wikipedia
Ape (disambiguation) — An ape is a member of the Hominoidea superfamily of primates.Ape may also refer to:In computing: * APE tag, a tag format used to add metadata to digital audio files * .ape, a filename extension used by Monkey’s Audio * Assistant for Philological… … Wikipedia
Perpetual Insurance — is a type of homeowners insurance policy written to have no term, or date, when the policy expires. From the effective start date, the coverage exists for perpetuity. The insured deposits money, called a deposit premium, with the insurer for… … Wikipedia
Patient Protection and Affordable Care Act — Full title The Patient Protection and Affordable Care Act. Acronym PPACA Colloquial name(s) Affordable Care Act, Healthcare Insurance Reform, Obamacare, Healthcare Reform Enacted by the … Wikipedia
value — The utility of an object in satisfying, directly or indirectly, the needs or desires of human beings, called by economists value in use, or its worth consisting in the power of purchasing other objects, called value in exchange. Joint Highway… … Black's law dictionary
