annual report 2007 - the Admiral Group plc

64 FINANCIAL STATEMENTSAnalysis of other administration and other marketing costs:31 December200731 December2006£000 £000Ancillary sales expenses 16,613 14,505Confused.com operating expenses 32,432 15,437Gladiator Commercial operating expenses 5,520 3,876Central overheads 2,687 1,326Total 57,252 35,144The £13,314,000 (2006: £12,009,000) administration and marketing costs allocated to insurancecontracts is principally made up of salary costs.The gross amount of expenses, before recoveries from co-insurers and reinsurers is £167,773,000(2006: £122,343,000). This amount can be reconciled to the total expenses and share schemecharges above of £81,957,000 (2006: £55,461,000) as follows:31 December200731 December2006£000 £000Gross expenses 167,773 122,343Co-insurer share of expenses (66,430) (59,075)Expenses, net of co-insurer share 101,343 63,268Adjustment for deferral of acquisition costs (3,687) (1,044)Expenses, net of co-insurer share (earned basis) 97,656 62,224Reinsurer share of expenses (earned basis) (15,699) (6,763)Total expenses and share scheme charges 81,957 55,461