How it works
As a sum, it's income so far, divided by the months it covers, times 12. It answers one question: at this rate, what would the year come to?
It runs ahead of the facts in two ways. Commission lands in lumps and with a lag, so a strong or empty month moves it a lot early in the year. And dividing by calendar months overstates the gap when a month's figures haven't arrived yet, so divide by the months you actually have figures for.
On a commission statement, "annualised" can also mean paid in advance. MDRT's rulebook calls these advanced or annualised commissions: a year's commission paid up front, counted when it's paid, and reduced in a later year if it's charged back. Under its income method, MDRT counts income paid in the calendar year, including first-year, trail and renewal commissions, fees and production-based bonuses. It doesn't count a projection.
Some firms use AI as the name of a particular payment. We couldn't find a public source that defines it, so what it's paid on and how it's worked out are in your contract.
Worked example, with made-up figures: by the end of April you've been paid S$18,000 of FYC. S$18,000 divided by 4 months is S$4,500 a month, which annualises to S$54,000. If April's figures haven't arrived and you divide by 4 anyway, you understate the pace. Divided by the 3 months you have, it's S$72,000.
Where it shows up in your week
A manager sees the pace before the year does. ActivityTracker for agency managers shows each advisor's run rate, year-to-date FYC annualised from the months entered, beside their target and what each month still needs.