Claims and benefits
In the first three quarters of 2016 the net value of claims and benefits and of the incremental growth in the PZU Group’s provisions was PLN 9,771.3 million. This represents an increase of 7.6% compared to the corresponding period of the previous year. The growth in claims and benefits in the group of insurance for other physical losses in the mass client segment, chiefly including subsidized crop insurance and the growth in the value of claims and benefits in motor TPL insurance in the mass client segment contributed to the movement in net claims and benefits.
Administrative and acquisition expenses
The Group’s administrative expenses in the first three quarters of 2016 were PLN 1,884.1 million compared to PLN 1,194.0 thousand in the corresponding period of 2015; in other words, they were up 57.8% from the previous year.
This growth was chiefly driven by commencing the consolidation of Alior Bank. The PZU Group’s expenses rose by PLN 757.7 million as a result. At the same time, a positive effect was recorded in comparison to last year in the insurance activity segments in Poland in connection with maintaining high cost discipline.
In the first three quarters of 2016 acquisition expenses rose by PLN 176.3 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.
