19. Acquisition expenses

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Acquisition expenses include expenses related to the conclusion and extension of insurance agreements. Direct acquisition expenses include, among others, cost of commission for insurance intermediaries, employee remuneration costs associated with the conclusion of insurance agreements, cost of attestations, expert opinions and studies related to the accepted risk. Indirect acquisition expenses include costs of advertising and promoting insurance products and costs associated with the examination of applications and issuing policies.

According to the accrual accounting principle, some of the acquisition expenses are amortized over time, in accordance with the principles described in sections 29.1.1 and 29.1.1 29.1.2.

Acquisition expenses by type1 January – 31 December 20171 January – 31 December 2016
Consumption of materials and energy2727
Third party services8395
Taxes and fees56
Employee expenses549509
Depreciation of property, plant and equipment2323
Amortization of intangible assets3434
Other, including:2,2662,167
- commissions in insurance activities2,2002,092
- advertising5968
- other77
Movement in deferred acquisition costs(86)(248)
Total acquisition expenses2,9012,613

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