Abstract:

The purpose of this study is to analyse the impact of recognition and measurement of investment properties on the financial position and performance of insurance companies in Croatia. The study covers the period from 2017 to 2021 and is based on 11 insurance companies in Croatia that have recognized investment properties in their financial statements. In order to fulfil the objectives of the research, descriptive statistical methods, correlation and regression analysis are used. The study showed that the cost model is applied to a slightly greater extent than the fair value model in insurance companies in Croatia.  Furthermore, the results of the study showed that investment properties do not significantly affect the financial position of insurance companies in Croatia, but have a statistically significant medium-strong impact on profitability. The study shows that income and expenses from investment properties have a statistically significant medium-strong impact on net profit or loss of insurance companies in Croatia.