18. Acquisition costs and administrative expenses
18.1. Acquisition costs
Total commissions expense for direct insurance business, particularly commissions for acquisition and renewal of the portfolio comprised the following:
| (CZK’000) | 2015 | 2014 | ||||
|---|---|---|---|---|---|---|
| Non-life insurance | Life insurance | Total | Non-life insurance | Life insurance | Total | |
| Direct commissions | 816,192 | 839,181 | 1,655,373 | 817,320 | 1,046,993 | 1,864,313 |
| Internal acquisition costs | 323,265 | 225,559 | 548,824 | 324,828 | 192,214 | 517,042 |
| Subtotal | 1,139,457 | 1,064,740 | 2,204,197 | 1,142,148 | 1,239,207 | 2,381,355 |
| Change in deferred acquisition costs | (15,904) | 35,331 | 19,427 | (10,583) | 15,707 | 5,124 |
| Total acquisition costs | 1,123,553 | 1,100,071 | 2,223,624 | 1,131,565 | 1,254,914 | 2,386,479 |
18.2. Administration expenses
| (CZK’000) | 2015 | 2014 |
|---|---|---|
| Administration expenses - non-life | 468,511 | 471,271 |
| Administration expenses - life | 140,659 | 129,894 |
| Total administration expenses | 609,170 | 601,165 |
The administration expenses consist of:
| (CZK’000) | 2015 | 2014 |
|---|---|---|
| Personnel costs | 443,609 | 490,267 |
| Depreciation and amortization of fixed assets | 71,386 | 67,986 |
| Other administrative expenses | 612,484 | 508,660 |
| Other expenses | 30,516 | 51,294 |
| Subtotal | 1,157,995 | 1,118,207 |
| Portion included in internal acquisition costs | (548,825) | (517,042) |
| Total administration expenses | 609,170 | 601,165 |
18.3. Personnel costs
Staff costs can be analyzed as follows:
| (CZK’000) | 2015 | 2014 |
|---|---|---|
| Emoluments of Board of Directors | 42,441 | 25,362 |
| Emoluments of other members of senior management | 62,654 | 62,488 |
| Other wages, personal costs and emoluments of employees | 217,742 | 275,978 |
| Social costs and health insurance | 101,998 | 116,908 |
| Other | 18,774 | 9,531 |
| Total personnel expenses | 443,609 | 490,267 |
| 2015 | 2014 | |
|---|---|---|
| Staff statistics | ||
| Average number of employees | 574 | 680 |
| Average number of members of the Board of Directors | 4 | 3 |
| Average number of other members of senior management | 42 | 44 |
| Average number of members of the Supervisory Board | 3 | 3 |
| Total staff statistics | 623 | 730 |
The Company’s cars at a cost of CZK 6,674 thousand (2014: CZK 8,353 thousand) are made available for use by management. As at 31 December 2015, the Company did not register any loans granted either to members of the Board of Directors, Supervisory Board or to the management.
18.4. Other administration overheads
| (CZK’000) | 2015 | 2014 |
|---|---|---|
| Rent | 97,977 | 85,853 |
| Office expenses and information technology | 188,517 | 207,134 |
| Travelling costs | 16,449 | 18,363 |
| Advertising and representation costs | 115,470 | 123,893 |
| Other costs | 194,071 | 73,417 |
| Total other administration overheads | 612,484 | 508,660 |