Notes

Note 7 - Insurance related expenses and number of staff

  Parent company  Consolidated accounts
  21.02.16 21.02.15 21.02.16 21.02.15
Amounts in USD 000's to 20.02.17 to 20.02.16 to 20.02.17 to 20.02.16
         
Acquisition costs and commissions        
Sales related salaries and wages 0 0 22,815 19,123
Other acquisition costs 0 0 15,144 17,747
Insurance intermediary 18,405 19,074 0 0
Agents' commission 28,551 31,886 58,112 67,542
Commission received (41,467) (50,995) (11,483) (11,522)
Insurance related expenses for own account 5,489 (36) 84,588 92,891
         
Number of staff 0 0 484 465
         
Remuneration to Group Leadership Team, Board of Directors and Committees     
Amounts in USD 000's Salary incl. Bonus * Benefits in kind * Total  Loan balance
         
Group Leadership Team        
Rolf Thore Roppestad (CEO) 828 74 902 109
Svein Buvik  402 41 443 0
Bjørnar Andresen  459 33 493 384
Steinar Bye  445 34 479 0
Kristian Dalene 296 20 316 103
Kjetil Eivindstad  367 38 405 102
Christen Guddal 337 30 367 0
Ole Rikard Rønning 222 17 239 0
         
Total 3,356 287 3,404 697
         
* All figures are excluding social security costs.         
         
The table below provides information regarding payments made in the financial year 2017 to members of the Board of Directors within the group. Remuneration relating to the financial year 2017, but not yet paid, is accrued for in the accounts
.    
      Consolidated accounts
Amounts in USD 000's Board remuneration Board committee remuneration Board remuneration, other group companies Total remuneration
         
Members of the Board of Directors         
Bengt Hermelin (Chairman) 30 8 20 58
Kenneth Hvid (Deputy Chairman) 25 5 5 35
Salah M. Al-Hareky (Member) 20     20
Ian Beveridge (Member) 20 30 30 80
K. C. Chang (Member) 20     20
Trond Eilertsen  20 30 78 128
Herbjørn Hansson (Member) 20 5   25
Morten W. Høegh (Member) 20 15 51 86
Hans Peter Jebsen (Member) 20 5   25
Robert E. Johnston (Member) 20     20
Timothy C. Faries 20   5 25
Carl-Johan Hagman (Member) 20 15   35
Tadeusz Niszczota (Member) 20 15 10 45
Halvor Ribe (Member) 20 10   30
Jane Sy (Member) 20 15 42 77
Kazuya Uchida (Member) 20     20
Jan-Eyvin Wang (Member) 20 5   25
Konstaninos Gerapetritis (Member) 20     20
Yngvild Asheim (Member) 20 15 30 65
Nils Aden (Member) 20 5   25
Andreas Brachel (Employee representative)     12 12
Anne Glestad Lech (Employee representative)     12 12
Tom Bent Opsal Nielsen (Employee representative)     12 12
Stephen Knudtzon 20 10   30
         
Total 435 188 307 929
         
Some of the insurance intermediaries offer their employees (minimum 50 per cent position) mortgage loans, secured by real estate. The loans have a rate of interest according to the interest set by the Tax Ministry in Norway and the repayment period is before retirement age.
The CEO has a remuneration guarantee that comes into force if the Board should ask him to leave his position. The remuneration guarantee gives him 12 months' salary in addition to a contractual six months' notice period.
A 5 per cent Finance tax has been implemented from 1 January 2017. This tax will apply for earned holiday allowance for 2016 to be paid in 2017, on pensions and on wage cost for January and February 2017. This has been accrued for in the accounts.
The majority of the Group Leadership Team and certain key personnel have a pension scheme that gives them the right to retire at 60 years of age and covers income included and above 12 times the base amount (see note 20 for definition of base amount). The full pension requires a thirty year accrual period in Gard, or it will be reduced accordingly. The accounting expense for the pension benefits earned in the period are for Roppestad (USD 0.4 million), Buvik (USD 0.3 million), Andresen (USD 0.2 million), Bye (USD 0.2 million), Dalene (USD 60 thousand), Eivindstad (USD 0.3 million), Guddal (USD 0.2 million) and Rønning (USD 21 thousand). The Company has given a bonus promise to all employees within the group including the CEO. A bonus will be paid if predefined targets are met. The bonus will be paid through the companies where the employees work and refunded by the Company. The maximum possible bonus is 20 per cent of gross salary. A bonus of 20 per cent of gross salary will be paid for the year to 20 February 2017.
         
Remuneration auditor Parent company  Consolidated accounts
  21.02.16 21.02.15 21.02.16 21.02.15
Amounts in USD 000's to 20.02.17 to 20.02.16 to 20.02.17 to 20.02.16
         
Auditing fee 264 283 894 1,144
Tax advising 22 51 80 133
Non audit services 3 11 155 84
Total auditors' fee 289 345 1,129 1,362
         
Net operating expenses Parent company  Consolidated accounts
  21.02.16 21.02.15 21.02.16 21.02.15
Amounts in USD 000's to 20.02.17 to 20.02.16 to 20.02.17 to 20.02.16
         
Bad debt 331 194 1,029 3,234
Service cost  61,931 60,478 0 0
Allocated to claims handling and acquisition costs (61,750) (60,634) 0 0
Other operating expenses  2,796 2,901 8,775 3,326
Pension cost, effect of change in assumptions 0 0 0 0
Other insurance related expenses 3,306 2,938 9,804 6,559
         
Included in other operating expenses are also revenues related to non-insurance activities.