In 2020, acquisition expenses decreased by PLN 46 million, or 1.4%, as compared to the previous year, and amounted to PLN 3,317 million. The decline was the outcome of lower commission costs in motor insurance driven by lower sales due to the slowdown on the lease market, price pressure, and limitations on accessibility to agents and branches caused by the COVID-19 pandemic. The decrease of indirect costs was another factor.
In 2020, PZU Group’s administrative expenses were PLN 6,597 million compared to PLN 6,606 million in the previous year, i.e. down PLN 9 million. The banking segment’s expenses (net of adjustments on account of the valuation of assets and liabilities to fair value) dropped by PLN 68 million in connection with the cost discipline in Bank Pekao and Alior Bank. The expenses of the insurance segment in Poland increased by PLN 36 million, due among others to the persisting wage pressure and introduction of aid packages in the sales area in connection with the COVID-19 pandemic.