In 2019 acquisition expenses rose PLN 233 million compared to the previous year. This upward movement was due in particular to the shift in PZU’s sales channel mix, sales growth and product mix change, with higher weight of products with higher acquisition expenses.
The Group’s administrative expenses in 2019 were PLN 6,606 million compared to PLN 6,609 million in 2018, i.e. they were down PLN 3 million versus the previous year.
The banking segment’s administrative expenses (net of the adjustments made to the fair value measurement of assets and liabilities) dropped by PLN 139 million in conjunction with both banks maintaining cost discipline and Alior Bank reversing a portion of its provision for deferred payroll costs. At the same time, the administrative expenses in the insurance activity segments in Poland were up PLN 96 million versus last year’s figures. This change largely resulted from higher personnel costs in connection with the wage pressure on the market.