PZU Group’s acquisition and administrative expenses

In 2017, acquisition expenses went up PLN 288 million compared to the corresponding period of the previous year. This increase was caused in particular by higher sales in the mass client and corporate client segments.

The Group’s administrative expenses in 2017 were PLN 5,364 million compared to PLN 2,923 million in 2016, i.e. went up 83.5% over the previous year. This growth resulted largely from the commencement of Pekao’s consolidation and the merger of Alior Bank with BPH’s spun-off operations on 4 November 2016. Administrative expenses of the banking segment rose by PLN 2,464 million. At the same time, the administrative expenses of the insurance segments in Poland were PLN 10 million lower compared to the previous year. The change resulted from the lower expenses of project activity offset by higher expenses incurred in bancassurance products following a change in the rules of settlements with banks under bancassurance agreements.