How it works
For a regular premium policy, ANP is the premium per payment times the number of payments in a year, so S$200 a month and S$600 a quarter both come to S$2,400 of ANP. It's counted the day the case is written, before a year's payments have come in, which is how it differs from first-year premium received.
Single premiums need a rule, because a S$50,000 lump sum isn't a year's premium. The usual one is to count 10%. Singapore's life insurance association uses it for its industry figures: its weighted new business premium is 10% of single premiums plus 100% of a year's regular premiums, with an adjustment for policies whose premiums are paid over fewer than 10 years. Some firms call the result annual premium equivalent, or APE.
Firms don't all count ANP the same way, because each one decides whether riders, top-ups and single premiums go in and at what share, so check your statement's notes before you compare your figure with anyone else's.
Worked example, with made-up cases: in a month you write a S$200-a-month policy, a S$1,800-a-year policy and a S$50,000 single premium plan. Regular premiums give S$2,400 plus S$1,800, so S$4,200. Counting 10% of the single premium adds S$5,000, for S$9,200 on the weighted basis. Counting the single premium in full would show S$54,200, which is why the rule matters.
Where it shows up in your week
ANP is the number most teams announce when a case closes. The activity log records each closed case with its annualised premium and first-year commission.
Related terms
Questions advisors ask
Premium per payment times the number of payments a year. S$200 a month is S$2,400 of ANP.
Usually at 10%. LIA's industry figures count 10% of single premiums, but your firm may use its own share.
Close. Both put regular and single premiums on one yearly basis. Check which one your statement uses.
No. ANP is a year's premium counted when the case is written. FYP is what's paid in the policy's first year.