Croatia osiguranje d.d.

Quarterly Report • Apr 30, 2024

UNCONSOLIDATED UNAUDITED QUARTERLY REPORT, FOR THE PERIOD 1 January 2024 – 31 March 2024

Zagreb, April 2024

This document is a translation of the original Croatian version and is intended to be used for informational purposes only. While every effort has been made to ensure the accuracy and completeness of the translation, please note that the Croatian original is binding.

CONTENT

	I. UNAUDITED FINANCIAL STATEMENTS 3
	STATEMENT OF COMPREHENSIVE INCOME 4
	STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) 6
	STATEMENT OF CHANGES IN EQUITY 8
	STATEMENT OF CASH FLOWS – indirect method 9
II.	QUARTERLY MANAGEMENT REPORT 10
III.	NOTES TO THE UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD I-III 2024 14
	MANAGEMENT BOARD STATEMENT 25

I. UNAUDITED FINANCIAL STATEMENTS

Annex 1
	ISSUER'S GENERAL DATA
Reporting period:	1.1.2024 31.3.2024 to
Year:	2024
Quarter:	1
	Quarterly financial statements
Registration number (MB): 03276147	Issuer's home HR
	Member State code:
Entity's registration number (MBS): 080051022
Personal identification number (OIB): 26187994862	74780000M0GHQ1VXJU20 LEI:
199 Institution code:
Name of the issuer: CROATIA osiguranje d.d.
Postcode and town: 10 000	ZAGREB
Street and house number: Vatroslava Jagića 33
E-mail address: info@crosig.hr
Web address: www.crosig.hr
Number of employees 2340 (end of the reporting period):
Consolidated report: KN	(KN-not consolidated/KD-consolidated) KN	KD
Audited: RN	(RN-not audited/RD-audited) RN	RD
Names of subsidiaries (according to IFRS):	Registered office:	MB:
		Yes
		No
Bookkeeping firm: No	(Yes/No) (name of the bookkeeping firm)
Contact person: Jelena Matijević	(only name and surname of the contact person)
Telephone: 072 00 1884
E-mail address: izdavatelji@crosig.hr
Audit firm:
(name of the audit firm) Certified auditor:
(name and surname)

STATEMENT OF COMPREHENSIVE INCOME (STATEMENT OF PROFIT OR LOSS) For the period: 1.1.2024 - 31.3.2024

				Cumulative Quarter									in EUR
Item	Sum		Item		Previous accounting period			Current accounting period			Previous accounting period		Current accounting period
number		elements Identifier		Life	Non-life	Total	Life	Non-life	Total	Life	Non-life	Total	Life	Non-life	Total
001	002 + 003 + 004	I	Income from insurance contracts	1.494.760	84.543.549	86.038.309	1.839.709	98.011.255	99.850.964	1.494.760	84.543.549	86.038.309	1.839.709	98.011.255	99.850.964
002		1	General measurement model	1.434.357	728.265	2.162.622	1.783.205	703.856	2.487.061	1.434.357	728.265	2.162.622	1.783.205	703.856	2.487.061
003		2	Variable fee approach	60.403	0	60.403	56.504	0	56.504	60.403	0	60.403	56.504	0	56.504
004		3	Premium allocation approach	0	83.815.284	83.815.284	0	97.307.399	97.307.399	0	83.815.284	83.815.284	0	97.307.399	97.307.399
005	006+007+…. +012	II	Expenditure from insurance contracts	236.545	-71.438.378	-71.201.833	-455.942	-87.092.184	-87.548.126		236.545 -71.438.378	-71.201.833	-455.942	-87.092.184	-87.548.126
006		1	Claims incurred	-620.117	-49.871.362	-50.491.479	-337.225	-54.646.891	-54.984.116		-620.117 -49.871.362	-50.491.479	-337.225	-54.646.891	-54.984.116
007		2	Commissions	-58.846	-8.456.035	-8.514.881	-103.405	-9.456.410	-9.559.815	-58.846	-8.456.035	-8.514.881	-103.405	-9.456.410	-9.559.815
008		3	Other expenses related to the sale of insurance	0	-7.816.441	-7.816.441	0	-8.755.903	-8.755.903	0	-7.816.441	-7.816.441	0	-8.755.903	-8.755.903
009		4	Other insurance service expenses	-545.127	-14.859.864	-15.404.991	-454.399	-14.367.414	-14.821.813		-545.127 -14.859.864	-15.404.991	-454.399	-14.367.414	-14.821.813
010		5	Depreciation of insurance acquisition costs	0	0	0	0	0	0	0	0	0	0	0	0
011		6	Losses and reversal of losses on onerous contracts	1.750.464	-148.430	1.602.034	-8.889	513.888	504.999	1.750.464	-148.430	1.602.034	-8.889	513.888	504.999
012		7	Change in liabilities for claims incurred	-289.829	9.713.754	9.423.925	447.976	-379.454	68.522	-289.829	9.713.754	9.423.925	447.976	-379.454	68.522
013	014 + 015	III	Net result of (passive) reinsurance contracts	-367	-6.234.939	-6.235.306	1	-2.646.918	-2.646.917	-367	-6.234.939	-6.235.306	1	-2.646.918	-2.646.917
014		1	Income from (passive) reinsurance contracts	0	4.451.927	4.451.927	0	9.464.592	9.464.592	0	4.451.927	4.451.927	0	9.464.592	9.464.592
015		2	Expenditure from (passive) reinsurance contracts	-367	-10.686.866	-10.687.233	1	-12.111.510	-12.111.509		-367 -10.686.866	-10.687.233	1	-12.111.510	-12.111.509
016	001 + 005 + 013	IV	Result from insurance contracts	1.730.938	6.870.232	8.601.170	1.383.768	8.272.153	9.655.921	1.730.938	6.870.232	8.601.170	1.383.768	8.272.153	9.655.921
017	018 + 023 + 024 + 025 + 026 + 027 + 031 + 032 + 033 +034	V	Net investment result	3.075.240	7.174.883	10.250.123	3.619.892	8.720.221	12.340.113	3.075.240	7.174.883	10.250.123	3.619.892	8.720.221	12.340.113
018	019 + 020 + 021 + 022	1	Net result from investment in land and buildings	0	1.094.890	1.094.890	0	1.005.087	1.005.087	0	1.094.890	1.094.890	0	1.005.087	1.005.087
019		1.1.	Rental gains/losses (net)	0	914.460	914.460	0	1.005.087	1.005.087	0	914.460	914.460	0	1.005.087	1.005.087
020		1.2.	Realised gains/losses (net) from property not for own use	0	180.430	180.430	0	0	0	0	180.430	180.430	0	0	0
021		1.3.	Unrealised gains/losses (net) from property not for own use	0	0	0	0	0	0	0	0	0	0	0	0
022		1.4.	Depreciation of land and buildings not occupied by an undertaking for its own activities	0	0	0	0	0	0	0	0	0	0	0	0
023		2	Interest revenue calculated using the effective interest rate method	2.518.937	3.506.431	6.025.368	2.488.424	4.428.226	6.916.650	2.518.937	3.506.431	6.025.368	2.488.424	4.428.226	6.916.650
024		3	Other interest income	33.619	305.854	339.473	0	29.048	29.048	33.619	305.854	339.473	0	29.048	29.048
025		4	Dividend income	70.861	1.410.248	1.481.109	73.657	1.453.118	1.526.775	70.861	1.410.248	1.481.109	73.657	1.453.118	1.526.775
026		5	Unrealised gains/losses (net) from financial assets at fair value through profit or loss	196.289	1.107.205	1.303.494	682.183	763.636	1.445.819	196.289	1.107.205	1.303.494	682.183	763.636	1.445.819
027	028 + 029 + 030	6	Realised gains/losses	115.780	127.017	242.797	-97.784	893.151	795.367	115.780	127.017	242.797	-97.784	893.151	795.367
028		6.1.	Realised gains/losses (net) from financial assets at fair value through profit or loss	13.276	31.085	44.361	104.972	551.602	656.574	13.276	31.085	44.361	104.972	551.602	656.574
029		6.2.	Realised gains/losses (net) from financial assets at fair value through other comprehensive income	102.504	95.932	198.436	-202.756	341.549	138.793	102.504	95.932	198.436	-202.756	341.549	138.793
030		6.3.	Other realised gains/losses (net)	0	0	0	0	0	0	0	0	0	0	0	0
031		7	Net impairment / reversal of impairment of investments	302.272	409.017	711.289	16.256	198.036	214.292	302.272	409.017	711.289	16.256	198.036	214.292
032		8	Net exchange rate differences	-67.882	-550.201	-618.083	126.739	466.220	592.959	-67.882	-550.201	-618.083	126.739	466.220	592.959
033		9	Other income from investments	-70.517	64.798	-5.719	354.804	13.664	368.468	-70.517	64.798	-5.719	354.804	13.664	368.468
034		10	Other expenditure from investments	-24.119	-300.376	-324.495	-24.387	-529.965	-554.352	-24.119	-300.376	-324.495	-24.387	-529.965	-554.352

STATEMENT OF COMPREHENSIVE INCOME (STATEMENT OF PROFIT OR LOSS) For the period: 1.1.2024 - 31.3.2024

															in EUR
Item	Sum	elements Identifier				Cumulative				Quarter Previous accounting period Current accounting period
number			Item	Life	Previous accounting period Non-life	Total	Life	Current accounting period Non-life	Total	Life	Non-life	Total	Life	Non-life	Total
035	036 + 037 + 038	VI	Net financial expenditure from insurance and (passive) reinsurance contracts	-358.084	-621.823	-979.907	-1.151.090	-897.312	-2.048.402	-358.084	-621.823	-979.907	-1.151.090	-897.312	-2.048.402
036		1	Net financial income/expenditure from insurance contracts	-358.085	-703.334	-1.061.419	-1.151.090	-1.081.454	-2.232.544	-358.085	-703.334	-1.061.419	-1.151.090	-1.081.454	-2.232.544
037		2	Net financial income/expenditure from (passive) reinsurance contracts	1	81.511	81.512	0	184.142	184.142	1	81.511	81.512	0	184.142	184.142
038		3	Change of liability for investment contracts	0	0	0	0	0	0	0	0	0	0	0	0
039		VII	Other income	3.380	1.349.956	1.353.336	756	1.212.873	1.213.629	3.380	1.349.956	1.353.336	756	1.212.873	1.213.629
040		VIII	Other operating expenses	-30.947	-2.106.230	-2.137.177	-29.917	-3.567.946	-3.597.863	-30.947	-2.106.230	-2.137.177	-29.917	-3.567.946	-3.597.863
041		IX	Other financial expenses	-8.703	-300.847	-309.550	-7.252	-302.887	-310.139	-8.703	-300.847	-309.550	-7.252	-302.887	-310.139
042		X	Share of profit of companies consolidated using equity method, net of tax	0	0	0	0	0	0	0	0	0	0	0	0
043	001+005+ 013+016+ 017+035+ 039+040+ 041+042	XI	Profit or loss of the accounting period before tax (+/-)	4.411.824	12.366.171	16.777.995	3.816.157	13.437.102	17.253.259	4.411.824	12.366.171	16.777.995	3.816.157	13.437.102	17.253.259
044	045 + 046	XII	Tax on profit or loss	-794.128	-1.969.323	-2.763.451	-686.908	-2.154.377	-2.841.285	-794.128	-1.969.323	-2.763.451	-686.908	-2.154.377	-2.841.285
045		1	Current tax expense	-794.128	-1.972.066	-2.766.194	-686.908	-2.157.117	-2.844.025	-794.128	-1.972.066	-2.766.194	-686.908	-2.157.117	-2.844.025
046		2	Deferred tax expense/ income Profit or loss of the accounting period after	0	2.743	2.743	0	2.740	2.740	0	2.743	2.743	0	2.740	2.740
047	043+ 044	XIII	tax (+/-)	3.617.696	10.396.848	14.014.544	3.129.249	11.282.725	14.411.974	3.617.696	10.396.848	14.014.544	3.129.249	11.282.725	14.411.974
048		1	Attributable to owners of the parent	0	0	0			0	0	0	0	0	0	0
049 050	051 + 056	2 XIV	Attributable to non-controlling interest Other comprehensive income	0 -6.760.160	0 1.024.897	0 -5.735.263	0 1.713.581	0 14.156.963	0	0 15.870.544 -6.760.160	0 1.024.897	0 -5.735.263	0 1.713.581	0 14.156.963	0 15.870.544
	052 + 053		Items that will not be reclassified to statement
051	+ 054 + 055	1	of profit or loss	359.889	7.451.655	7.811.544	795.111	12.708.137	13.503.248	359.889	7.451.655	7.811.544	795.111	12.708.137	13.503.248
052		1.1.	Net change in fair value of equity securities (OCI)	438.889	9.097.317	9.536.206	969.647	15.497.728	16.467.375	438.889	9.097.317	9.536.206	969.647	15.497.728	16.467.375
053		1.2.	Actuarial gains/losses on defined benefit pension plans	0	0	0	0	0	0	0	0	0	0	0	0
054		1.3.	Other	0	0	0	0	0	0	0	0	0	0	0	0
055		1.4.	Tax	-79.000	-1.645.662	-1.724.662	-174.536	-2.789.591	-2.964.127	-79.000	-1.645.662	-1.724.662	-174.536	-2.789.591	-2.964.127
056	057 + 058 + + 063	2	Items that are, or may be, reclassified to statement of profit or loss	-7.120.049	-6.426.758	-13.546.807	918.470	1.448.826		2.367.296 -7.120.049	-6.426.758	-13.546.807	918.470	1.448.826	2.367.296
057		2.1.	Net change in fair value of debt securities (OCI)	-168.003	-1.149.713	-1.317.716	-72.203	32.067	-40.136	-168.003	-1.149.713	-1.317.716	-72.203	32.067	-40.136
058		2.2.	Exchange rate differences from translation of foreign operations	0	0	0	0	0	0	0	0	0	0	0	0
059		2.3.	Effects of hedging instruments	0	0	0	0	0	0	0	0	0	0	0	0
060		2.4.	Net financial income/expenditure from insurance contracts	-8.514.992	-6.901.669	-15.416.661	1.192.288	2.200.118		3.392.406 -8.514.992	-6.901.669	-15.416.661	1.192.288	2.200.118	3.392.406
061		2.5.	Net financial income/expenditure from (passive) reinsurance contracts	8	215.966	215.974	0	-464.949	-464.949	8	215.966	215.974	0	-464.949	-464.949
062		2.6.	Other	0	0	0	0	0	0	0	0	0	0	0	0
063		2.7.	Tax	1.562.938	1.408.658	2.971.596	-201.615	-318.410	-520.025	1.562.938	1.408.658	2.971.596	-201.615	-318.410	-520.025
064	047+ 050	XV	Total comprehensive income	-3.142.464	11.421.745	8.279.281	4.842.830	25.439.688		30.282.518 -3.142.464	11.421.745	8.279.281	4.842.830	25.439.688	30.282.518
065		1	Attributable to owners of the parent	0	0	0	0	0	0	0	0	0	0	0	0
066		2	Attributable to non-controlling interest	0	0	0	0	0	0	0	0	0	0	0	0
067		XVI	Reclassification adjustments	0	0	0	0	0	0	0	0	0	0	0	0

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)

As at: 31.3.2024

Item number	Sum elements Identifier		Item	Life	Last day of the preceding business year Non-life	Total	Life	At the reporting date of the current period Non-life	Total
001	002+003	I	INTANGIBLE ASSETS	0	15.767.439	15.767.439	0	15.382.649	15.382.649
002		1	Goodwill	0	0	0	0	0	0
003		2	Other intangible assets	0	15.767.439	15.767.439	0	15.382.649	15.382.649
004	005+006+0 07	II	TANGIBLE ASSETS	1.874	62.695.828	62.697.702	1.874	61.599.335	61.601.209
005		1	Land and buildings occupied by an undertaking for its own activities	0	25.693.150	25.693.150	0	25.355.404	25.355.404
006		2	Equipment	1.865	3.252.574	3.254.439	1.865	2.955.973	2.957.838
007		3	Other tangible assets and inventories	9	33.750.104	33.750.113	9	33.287.958	33.287.967
008	009+010+0 14	III	INVESTMENTS	414.536.145	911.326.804	1.325.862.949	388.452.127	892.478.714	1.280.930.841
009		A	Investments in land and buildings not occupied by an undertaking for its own activities	0	67.925.833	67.925.833	0	67.927.398	67.927.398
010	011+012+0 13	B	Investments in subsidiaries, associates and joint ventures	0	54.530.904	54.530.904	0	65.629.168	65.629.168
011		1	Shares and holdings in subsidiaries	0	50.814.665	50.814.665	0	61.912.929	61.912.929
012		2	Shares and holdings in associates	0	0	0	0	0	0
013	015+020+0	3	Shares and holdings in joint ventures	0	3.716.239	3.716.239	0	3.716.239	3.716.239
014	25	C	Financial assets	414.536.145	788.870.067	1.203.406.212	388.452.127	758.922.148	1.147.374.275
015	016 + 017 + 018 + 019	1	Financial assets at amortised cost	154.503.708	240.561.618	395.065.326	139.479.002	204.942.051	344.421.053
016		1.1	Debt financial instruments	149.614.053	135.454.920	285.068.973	131.762.921	127.554.526	259.317.447
017		1.2	Deposits with credit institutions	2.305.593	51.209.284	53.514.877	5.180.217	26.061.783	31.242.000
018		1.3.	Loans	2.584.062	40.568.705	43.152.767	2.535.864	38.348.004	40.883.868
019		1.4.	Other	0	13.328.709	13.328.709	0	12.977.738	12.977.738
020	021 + 022 + 023 + 024	2	Financial assets at fair value through other comprehensive income	200.697.053	472.000.910	672.697.963	193.075.067	437.738.972	630.814.039
021		2.1	Equity financial instruments	13.239.174	125.573.254	138.812.428	14.208.821	142.457.607	156.666.428
022		2.2	Debt financial instruments	187.457.879	346.427.656	533.885.535	178.866.246	295.281.365	474.147.611
023		2.3.	Units in investment funds	0	0	0	0	0	0
024		2.4.	Other	0	0	0	0	0	0
025	026 + 027+…. +030	3	Financial assets at fair value through profit and loss account	59.335.384	76.307.539	135.642.923	55.898.058	116.241.125	172.139.183
026		3.1	Equity financial instruments	0	387.390	387.390	0	103.798	103.798
027		3.2	Debt financial instruments	0	10.963.850	10.963.850	4.998.950	14.853.750	19.852.700
028		3.3.	Units in investment funds	59.238.385	64.567.129	123.805.514	50.819.669	101.089.981	151.909.650
029		3.4.	Derivative financial instruments	96.999	389.170	486.169	79.439	193.596	273.035
030		3.5	Other	0	0	0	0	0	0
031	032 + 036 +040 034+035+0	IV	ASSETS FROM INSURANCE CONTRACTS	0	16.997.313	16.997.313	0	16.776.450	16.776.450
032	36	1	General measurement model	0	13.311.689	13.311.689	0	13.016.288	13.016.288
033		1.1.	- Assets for remaining coverage	0	-1.477.798	-1.477.798	0	-1.431.489	-1.431.489
034		1.2.	- Assets for insurance acquisition cash flows	0	0	0	0	0	0
035		1.3.	- Assets from claims incurred	0	14.789.487	14.789.487	0	14.447.777	14.447.777
036	037+038+0 39	2	Variable fee approach	0	0	0	0	0	0
037		2.1.	- Assets for remaining coverage	0	0	0	0	0	0
038		2.2.	- Assets for insurance acquisition cash	0	0	0	0	0	0
			flows
039	041 +042	2.3.	- Assets from claims incurred	0	0	0	0	0	0
040	+043	3	Premium allocation approach	0	3.685.624	3.685.624	0	3.760.162	3.760.162
041		3.1.	- Assets for remaining coverage	0	6.049.909	6.049.909	0	5.756.562	5.756.562
042		3.2.	- Assets for insurance acquisition cash flows	0	0	0	0	0	0
043		3.3.	- Assets from claims incurred	0	-2.364.285	-2.364.285	0	-1.996.400	-1.996.400
044		V	ASSETS FROM REINSURANCE CONTRACTS	0	49.916.652	49.916.652	1	50.155.679	50.155.680
045	046 +047	VI	DEFERRED AND CURRENT TAX ASSETS	458.066	8.121.850	8.579.916	458.066	9.994.734	10.452.800
046		1	Deferred tax assets	458.066	8.121.850	8.579.916	458.066	8.121.850	8.579.916
047		2	Current tax assets	0	0	0	0	1.872.884	1.872.884
048 049	050 +051	VII 1	OTHER ASSETS CASH AT BANK AND IN HAND	136.525 75.348	31.467.371 1.587.146	31.603.896 1.662.494	405.710 280.349	36.889.330 2.347.802	37.295.040 2.628.151
050	+052	1.1	Funds in the business account	0	1.587.146	1.587.146	0	2.347.802	2.347.802
			Funds in the account of assets covering
051		1.2	liabilities from life insurance contracts	75.348	0	75.348	280.349	0	280.349
052		1.3	Cash in hand	0	0	0	0	0	0
053		2	Fixed assets held for sale and	0	0	0	0	0	0
			discontinued operations
054	001+004+0	3	Other	61.177	29.880.225	29.941.402	125.361	34.541.528	34.666.889
055	08+031+04	VIII	TOTAL ASSETS	415.132.610	1.096.293.257	1.511.425.867	389.317.778	1.083.276.891	1.472.594.669
056		IX	OFF-BALANCE SHEET ITEMS	11.945.389	67.272.777	79.218.166	13.275.370	68.654.217	81.929.587

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) As at: 31.3.2024

Item number	Sum elements	Identifier	Item	Life	Last day of the preceding business year Non-life	Total	Life	At the reporting date of the current period Non-life	Total
057	058+061+062+0	X	CAPITAL AND RESERVES	65.307.009	599.127.674	664.434.683	56.926.611	572.790.325	629.716.936
	66+067+071+07 059 +060
058 059		1 1.1	Subscribed capital Paid in capital - ordinary shares	5.881.322 5.881.322	72.414.820 72.414.820	78.296.142 78.296.142	5.881.322 5.881.322	72.414.820 72.414.820	78.296.142 78.296.142
060		1.2	Paid in capital - preference shares	0	0	0	0	0	0
061		2	Premium on shares issued (capital	0	90.448.275	90.448.275	0	90.448.275	90.448.275
062	063 +064 +065	3	reserves) Revaluation reserves	-3.824.142	50.745.483	46.921.341	-3.088.238	63.431.867	60.343.629
063 064		3.1 3.2	Land and buildings Financial assets	0 -3.824.142	5.831.786 44.913.697	5.831.786 41.089.555	0 -3.088.238	5.819.303 57.612.564	5.819.303 54.524.326
065		3.3	Other revaluation reserves	0	0	0	0	0	0
066		4	Financial reserves from insurance contracts	18.486.074	12.866.232	31.352.306	19.463.751	14.288.763	33.752.514
067	068+069+070	5	Reserves	11.317.518	41.961.359	53.278.877	11.317.518	41.961.359	53.278.877
068		5.1.	Legal reserves	293.906	3.698.235	3.992.141	293.906	3.698.235	3.992.141
069		5.2.	Statutory reserve	1.003.040	18.455.600	19.458.640	1.003.040	18.455.600	19.458.640
070		5.3.	Other reserves	10.020.572	19.807.524	29.828.096	10.020.572	19.807.524	29.828.096
071	072+073	6	Retained profit or loss brought forward	20.394.811	296.863.131	317.257.942	20.223.011	278.962.514	299.185.525
072		6.1.	Retained profit	20.394.811	296.863.131	317.257.942	20.223.011	278.962.514	299.185.525
073		6.2.	Loss brought forward (-)	0	0	0	0	0	0
074	075+076	7	Profit or loss for the current accounting period	13.051.426	33.828.374	46.879.800	3.129.247	11.282.727	14.411.974
075		7.1.	Profit for the current accounting period	13.051.426	33.828.374	46.879.800	3.129.247	11.282.727	14.411.974
076		7.2.	Loss for the current accounting period (-)	0	0	0	0	0	0
077		XI	SUBORDINATE LIABILITIES	0	0	0	0	0	0
078		XII	MINORITY INTEREST	0	0	0	0	0	0
079	080+084+088	XIII	LIABILITIES FROM INSURANCE CONTRACTS	342.823.644	389.298.289	732.121.933	324.505.466	392.324.044	716.829.510
080	081+082+083	1	General measurement model	324.771.568	8.396.725	333.168.293	318.657.946	8.313.384	326.971.330
081		1.1.	- Liabilities for remaining coverage	313.539.221	8.048.781	321.588.002	297.070.989	7.999.683	305.070.672
082		1.2.	- Assets for insurance acquisition cash	0	0	0	0	0	0
083		1.3.	flows - Liabilities for claims incurred	11.232.347	347.944	11.580.291	21.586.957	313.701	21.900.658
084	085+086+087	2	Variable fee approach	18.052.076	0	18.052.076	5.847.520	0	5.847.520
085		2.1.	- Liabilities for remaining coverage	15.141.549	0	15.141.549	2.299.536	0	2.299.536
086		2.2.	- Assets for insurance acquisition cash flows	0	0	0	0	0	0
087		2.3.	- Liabilities for claims incurred	2.910.527	0	2.910.527	3.547.984	0	3.547.984
088	089 +090 +091	3	Premium allocation approach	0	380.901.564	380.901.564	0	384.010.660	384.010.660
089		3.1.	- Liabilities for remaining coverage	0	90.040.730	90.040.730	0	96.100.953	96.100.953
090		3.2.	- Assets for insurance acquisition cash	0	0	0	0	0	0
091		3.3.	flows - Liabilities for claims incurred	0	290.860.834	290.860.834	0	287.909.707	287.909.707
092		XIV	LIABILITIES FROM REINSURANCE	0	1.910.081	1.910.081	0	2.519.403	2.519.403
093		XV	LIABILITY FOR INVESTMENT CONTRACTS	0	0	0	0	0	0
094	095+096	XVI	OTHER PROVISIONS	393.671	6.701.443	7.095.114	364.485	6.387.859	6.752.344
095		1	Provisions for pensions and similar obligations	393.671	6.373.814	6.767.485	364.485	6.060.230	6.424.715
096		2	Other provisions	0	327.629	327.629	0	327.629	327.629
097	098+099	XVII	DEFERRED AND CURRENT TAX	3.159.934	24.632.839	27.792.773	4.222.994	29.887.410	34.110.404
098		1	Deferred tax liability	3.159.934	13.694.907	16.854.841	3.536.086	16.792.361	20.328.447
099	101+102+…+10	2	Current tax liability	0	10.937.932	10.937.932	686.908	13.095.049	13.781.957
100	5	XVIII	FINANCIAL LIABILITIES	18.872	37.130.100	37.148.972	28.812	41.579.286	41.608.098
101		1	Loan liabilities	0	0	0	0	0	0
102 103		2 3	Liabilities for issued financial instruments Liabilities for derivative financial instruments	0 18.872	0 72.193	0 91.065	0 28.812	0 193.646	0 222.458
104		4	Liability for unpaid dividend	0	208.602	208.602	0	208.602	208.602
105		5	Other financial liabilities	0	36.849.305	36.849.305	0	41.177.038	41.177.038
106	107+108+109	XIX	OTHER LIABILITIES	3.429.480	37.492.831	40.922.311	3.269.410	37.788.564	41.057.974
107		1	Liabilities for disposal and discontinued operations	0	0	0	0	0	0
108		2	Accruals and deferred income	2.414.266	13.285.156	15.699.422	2.440.199	14.012.340	16.452.539
109		3	Other liabilities	1.015.214	24.207.675	25.222.889	829.211	23.776.224	24.605.435
110	057+077+078+0 79+092+093+09	XX	TOTAL LIABILITIES	415.132.610	1.096.293.257	1.511.425.867	389.317.778	1.083.276.891	1.472.594.669
111	4+097+100+106	XXI	OFF-BALANCE SHEET ITEMS	11.945.389	67.272.777	79.218.166	13.275.370	68.654.217	81.929.587

STATEMENT OF CHANGES IN EQUITY

For the period: 1.1.2024 - 31.3.2024

									in EUR
		Attributable to owners of the parent
Item number	Item	Paid in capital (ordinary and preference shares)	Premium on shares issued	Revaluation reserves	Financial reserves from insurance contracts	Capital reserves (legal, statutory, other)	Retained profit or loss brought forward	Profit/loss for the year	Total capital and reserves	Attributable to non controlling interests*	Total capital and reserves
I.	Balance as at 1 January of the previous year	78.216.975	90.448.275	17.423.136	69.717.721	53.359.689	267.939.527	45.625.867	622.731.190	0	622.731.190
1.	Change in accounting policies	0	0	-3.333.388	0	0	2.489.732	0	-843.656	0	-843.656
2.	Correction of errors from prior periods	0	0	0	0	0	0	0	0	0	0
II.	Balance as at 1 January of the previous year (restated)	78.216.975	90.448.275	14.089.748	69.717.721	53.359.689	270.429.259	45.625.867	621.887.534	0	621.887.534
III.	Comprehensive income or loss for the previous year	0	0	34.023.052	-38.365.415	0	0	46.879.800	42.537.437	0	42.537.437
1.	Profit or loss for the period	0	0	0	0	0	0	46.879.800	46.879.800	0	46.879.800
2.	Other comprehensive income or loss for the previous	0	0	34.023.052	-38.365.415	0	0	0	-4.342.363	0	-4.342.363
2.1.	year Unrealised gains or losses on tangible assets (land and	0	0	-112.126	0	0	0	0	-112.126	0	-112.126
2.2.	buildings) Unrealised gains or losses on financial assets at fair value	0	0	34.372.141	0	0	0	0	34.372.141	0	34.372.141
	through other comprehensive income Realised gains or losses on financial assets at fair value
2.3.	through other comprehensive income	0	0	-236.963	0	0	0	0	-236.963	0	-236.963
2.4.	Net financial income/expenditure from insurance contracts	0	0	0	-39.309.880	0	0	0	-39.309.880	0	-39.309.880
2.5.	Net financial income/expenditure from (passive) reinsurance contracts	0	0	0	944.465	0	0	0	944.465	0	944.465
2.6.	Other changes in equity unrelated to owners	0	0	0	0	0	0	0	0	0	0
IV.	Transactions with owners (previous period)	79.167	0	-1.191.459	0	-80.812	46.828.683	-45.625.867	9.712	0	9.712
1.	Increase/decrease in subscribed capital	79.167	0	0	0	-80.812	0	0	-1.645	0	-1.645
2.	Other contributions by owners	0	0	0	0	0	0	0	0	0	0
3.	Payment of share in profit/dividend	0	0	0	0	0	0	0	0	0	0
4.	Other distribution to owners	0	0	-1.191.459	0	0	46.828.683	-45.625.867	11.357	0	11.357
V.	Balance on the last day of the previous year reporting period	78.296.142	90.448.275	46.921.341	31.352.306	53.278.877	317.257.942	46.879.800	664.434.683	0	664.434.683
VI.	Balance as at 1 January of the current year	78.296.142	90.448.275	46.921.341	31.352.306	53.278.877	317.257.942	46.879.800	664.434.683	0	664.434.683
1.	Change in accounting policies	0	0	0	0	0	0	0	0	0	0
2.	Correction of errors from prior periods	0	0	0	0	0	0	0	0	0	0
VII.	Balance as at 1 January of the current year (restated)	78.296.142	90.448.275	46.921.341	31.352.306	53.278.877	317.257.942	46.879.800	664.434.683	0	664.434.683
VIII.	Comprehensive income or loss for the year	0	0	13.470.336	2.400.208	0	0	14.411.974	30.282.518	0	30.282.518
1.	Profit or loss for the period	0	0	0	0	0	0	14.411.974	14.411.974	0	14.411.974
2.	Other comprehensive income or loss for the year	0	0	13.470.336	2.400.208	0	0	0	15.870.544	0	15.870.544
2.1.	Unrealised gains or losses on tangible assets (land and buildings)	0	0	0	0	0	0	0	0	0	0
2.2.	Unrealised gains or losses on financial assets at fair value through other comprehensive income	0	0	13.584.145	0	0	0	0	13.584.145	0	13.584.145
2.3.	Realised gains or losses on financial assets at fair value through other comprehensive income	0	0	-113.809	0	0	0	0	-113.809	0	-113.809
2.4.	Net financial income/expenditure from insurance contracts	0	0	0	2.781.466	0	0	0	2.781.466	0	2.781.466
2.5.	Net financial income/expenditure from (passive) reinsurance contracts	0	0	0	-381.258	0	0	0	-381.258	0	-381.258
2.6.	Other changes in equity unrelated to owners	0	0	0	0	0	0	0	0	0	0
IX.	Transactions with owners (current period)	0	0	-48.048	0	0	-18.072.417	-46.879.800	-65.000.265	0	-65.000.265
1.	Increase/decrease in subscribed capital	0	0	0	0	0	0	0	0	0	0
2.	Other contributions by owners	0	0	0	0	0	0	0	0	0	0
3.	Payment of share in profit/dividend	0	0	0	0	0	-65.000.265	0	-65.000.265	0	-65.000.265
4.	Other transactions with owners	0	0	-48.048	0	0	46.927.848	-46.879.800	0	0	0
X.	Balance on the last day of the current year reporting period	78.296.142	90.448.275	60.343.629	33.752.514	53.278.877	299.185.525	14.411.974	629.716.936	0	629.716.936

STATEMENT OF CASH FLOWS – indirect method

For the period: 1.1.2024 - 31.3.2024

Item Sum elements number		Identifier	Item	Current business period	Same period of the previous year
001	002+018+035 + 036 + 037	I	CASH FLOW FROM OPERATING ACTIVITIES	79.270.048	-98.445.023
002	003+004	1	Cash flow before changes in operating assets and liabilities	9.519.491	10.410.161
003		1.1	Profit/loss of the accounting period	14.411.974	14.014.544
004	005+006+…+017	1.2	Adjustments:	-4.892.483	-3.604.383
005		1.2.1	Depreciation of property and equipment	1.293.840	1.206.566
006		1.2.2	Amortization of intangible assets	1.019.089	866.391
007		1.2.3	Loss from impairment of intangible assets	0	0
008		1.2.4	Other financial cost	0	0
009		1.2.5	Impairment and gains/losses on fair valuation	-1.805.480	-1.882.966
010		1.2.6	Interest expenses	310.140	309.550
011		1.2.7	Interest income	-6.945.698	-6.364.841
012		1.2.8	Profit from the sale of branch	0	0
013		1.2.9	Share in profit of associates	0	0
014		1.2.10	Equity-settled share-based payment transactions	0	0
015		1.2.11	Cost of income tax	2.841.285	2.763.452
016		1.2.12	Profit/loss from the sale of tangible assets (including land and buildings)	113	-182.542
017		1.2.13	Other adjustments	-1.605.772	-319.993
018	019+020+…+034	2	Increase/decrease in operating assets and liabilities	60.299.815	-118.467.444
019		2.1	Increase/decrease in financial assets at fair value through other comprehensive income	55.247.839	27.541.203
020		2.2	Increase/decrease in financial assets at fair value through statement of profit or loss	-34.450.623	-143.413.639
021		2.3	Increase/decrease in financial assets at amortised cost	47.712.599	8.717.259
022		2.4	Increase/decrease in assets/liabilities from insurance contracts	-11.679.156	-4.503.382
023		2.5	Increase/decrease in assets/liabilities from reinsurance contracts	-94.654	-304.556
024		2.6	Increase/decrease in tax assets	-1.872.884	-2.046.379
025		2.7	Increase/decrease in receivables	0	0
026		2.8	Increase/decrease in investments in real estate	-1.565	1.359.364
027		2.9	Increase/decrease in property for own use	0	0
028		2.10	Increase/decrease in other assets	-1.136.249	8.461.233
029		2.11	Increase/decrease in liabilities from investment contracts	0	0
030		2.12	Increase/decrease in other provisions	-342.770	-170.998
031		2.13	Increase/decrease in tax liabilities	1.865.077	1.386.978
032		2.14	Increase/decrease in financial liabilities	4.916.533	-10.145.623
033		2.15	Increase/decrease in other liabilities	-617.449	-4.075.467
034		2.16	Increase/decrease in accruals and deferred income	753.117	-1.273.437
035		3	Income tax paid	-1.872.884	-2.067.242
036		4	Interest received	11.196.852	11.525.621
037		5	Dividend received	126.774	153.881
038	039+040+…+045	II	CASH FLOW FROM INVESTING ACTIVITIES	-11.865.040	-4.215.008
039		1	Cash receipts from the sale of tangible assets	8.287	14.017
040		2	Cash payments for the purchase of tangible assets	-140.764	-392.839
041		3	Cash receipts from the sale of intangible assets	0	0
042		4	Cash payments for the purchase of intangible assets	-634.299	-1.336.186
043 044		5 6	Cash receipts from the sale of branches, associates and joint ventures Cash payments for the purchase of branches, associates and joint ventures	0 0	0 0
045		7	Cash receipts and payments based on other investing activities	-11.098.264	-2.500.000
046	047+048++057	III	CASH FLOW FROM FINANCING ACTIVITIES	-65.846.392	-771.215
047		1	Cash receipts resulting from the increase of initial capital	0	0
048		2	Cash receipts from issuing redeemable preference shares	0	0
049		3	Cash receipts from short-term and long-term loans received	0	0
050		4	Cash receipts from sales of own shares	0	0
051		5	Cash receipts from exercise of share options	0	0
052		6	Cash payments relating to redeemable preference shares	0	0
053		7	Cash payments for the repayment of short-term and long-term loans received	0	0
054		8	Cash payments for the redemption of own shares	0	0
055		9	Cash payments for interest	0	0
056		10	Cash payments for dividend	-65.000.265	0
057		11	Cash payments for rental obligations	-846.127	-771.215
058	001+038+046	IV	NET CASH FLOW	1.558.616	-103.431.246
059		V	EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS	-592.959	618.083
060	058+059	VI	NET INCREASE/DECREASE OF CASH AND CASH EQUIVALENTS	965.657	-102.813.163
061		1	Cash and cash equivalents at the beginning of period	1.662.494	106.166.366
062	060+061	2	Cash and cash equivalents at the end of period	2.628.151	3.353.203

II. QUARTERLY MANAGEMENT REPORT

In the period observed, total income from insurance contracts amounted to EUR 99.9m and increased by 16.1 percent compared to the same period of the previous year. The total non-life insurance income amounted to EUR 98m and increased by 15.9 percent. Total life insurance income increased by 23.1 percent and amounted to EUR 1.8m.

Total expenditure from insurance contracts amounted to EUR 87.5m in the period observed and increased by 23 percent compared to the same period of the previous year. The total non-life insurance expenditure amounted to EUR 87.1m and increased by 21.9 percent. Total life insurance expenditure increased and amounted to EUR 0.5m.

Total net result from insurance contracts amounted to EUR 9.7m and the net result is 12.3 percent higher compared to the same period of the previous year.

Total assets of the Company as at 31 March 2024 amounted to EUR 1.5 billion, which represents a decrease of 2.6 percent compared to 31 December 2023.

Liabilities from insurance contracts as at 31 March 2024 amounted to EUR 716.8m, representing a decrease of 2.1 percent compared to 31 December 2023.

Unaudited unconsolidated financial statements for the first quarter of the 2024 will be available on the web sites of CROATIA osiguranje d.d., Zagreb Stock Exchange and Officially appointed mechanism for the central storage of regulated information.

Significant business events in the reporting period

Stable profit and growth in insurance income, along with the continuation of digitalization and the expansion of the Polyclinic network - the key features of Croatia osiguranje operations in the first quarter of 2024.

The digital business segment recorded positive results in the first quarter of 2024. Realized premium from total digital business increased by 21 percent compared to the same period last year, while the number of clients using the Moja Croatia mobile application increased by 16 percent. Laqo, Croatia's digital brand, achieved premium growth of 33 percent compared to the same period last year. In the first quarter of 2024, the total digital business segment recorded growth of 29 percent. In February, Croatia osiguranje launched Koreqt, an advanced digital platform for comparing and selecting products and services. It is a project that keeps pace with the growing trend of online shopping and enables users better search quality of services and products, but also to compare prices and offers of different partners more easily.

CROATIA osiguranje investments in healthcare in the last three years amounts to around EUR 20m. At the end of 2023, with the opening of new business units in Osijek, Zadar and Varaždin, in addition to previously opened in Zagreb, Split, Rijeka, Pula and Koprivnica, the strategic goal of providing top medical services to residents throughout Croatia was achieved. Due to the growing demand and increase in the volume of work, Croatia Poliklinika in Split was moved to a larger and more modern space with a wide range of medical activities and new modern medical equipment. In the first quarter of 2024, Croatia Poliklinika recorded a 53 percent increase in revenue compared to the same period of the previous year. The team of top doctors and medical staff has increased by 40 percent compared to the same period last year, and the positive trend of patient satisfaction has continued, among which 97 percent are those who emphasize the friendliness and commitment of the Croatia Poliklinika staff.

In less than a year since its launch, Croatia's Spektar benefits package has been activated by more than 65,000 households in Croatia, with over 83,000 members using it through the Moja Croatia application.

On 19 January 2024, the Management Board and the Supervisory Board proposed to the General Assembly the payment of a dividend in the total amount of EUR 65,000,265.19, or EUR 151.27 per share. On 5 March 2024, the General Assembly passed a decision on the payment of the dividend, and the dividend was paid on 18 March 2024.

Geopolitical and macroeconomic situation, conflicts and challenges

The geopolitical situation in the world in 2024 is still without signs of calming down and improvement. There are no signs of a possible end to the war in Ukraine and the resulting sanctions against the Russian Federation. The Company respects all introduced sanctions regulations and has no direct operations in insurance and reinsurance business with Russia and Ukraine, and reinsurance contracts through the Sanction & Embargo clause exempt reinsurance transactions with states under any sanctions. The insurance conditions on the direct side exclude damages caused by war. Contributing to the deterioration of the geopolitical situation in 2024 were new geopolitical tensions in the Middle East, where, in addition to the war in the Gaza initiated by Hamas attack on Israel in October 2023 and by Houthi attacks on ships in the Red Sea, the situation was further aggravated by Iran's attack on Israel in April 2024. Considering all the above, different scenarios and impacts on the world economy are possible.

The end of 2023 represented the end of the cycle of raising interest rates by the ECB and the FED, so if there are no new macroeconomic disturbances that would affect the growth of inflation rates, a lowering of the reference rates of central banks is expected at the end of 2024 and the possible gradually correction of interest curves that have been inverted recently. As a result of such expectations, in December 2023 a drop in bond market yields was visible on the financial markets, which was partially canceled in the first quarter of 2024. Regardless, due to negative geopolitical events, there is considerable uncertainty in the macroeconomic sense, so despite the fact that inflation in the EU and the USA shows signs of weakening (according to Eurostat, the annual inflation rate in the EU in January 2024 was 3.1%, and in February 2024, 2.8%, while it was 4.8% in Croatia for both months), in the event of an escalation of the geopolitical situation, different scenarios are also possible, i.e. a new change in the inflationary trend and the risk of reduced economic growth. However, due to the high capitalization, i.e. the Company's solvency (publicly announced quarterly SCR ratio of the Company as of 31 December 2023 is 308%), the results of the ORSA process show that the Company is resistant to various stressful circumstances and would continue to operate in accordance with the regulatory requirements.

Significant events after the end of the reporting date

On 8 April 2024, the Management and Supervisory Board proposed to the General Assembly an additional dividend payment from retained earnings in the total amount of EUR 16,049,146.52, or EUR 37.35 per share and the dividend payment from the net profit realized in 2023 in the total amount of EUR 33,954,693.37, i.e. EUR 79.02 per share. The Company has been operating successfully in the past years, with a growing level of profit and high capital adequacy rates, both at the Company level and at the Group level, and it is expected that during the year 2024 the capital adequacy should be maintained above the level of 200%.

The Company announced that the member of the Management Board, Vančo Balen, will leave the company by 30 April 2024 on personal request, for private reasons.

Company branch

As at 31 March 2024 the Company has one registered branch (Branch Ljubljana). In its legal transactions, the branch operates as CROATIA osiguranje d.d. branch Ljubljana, in the Croatian language, and as CROATIA ZAVAROVANJE d.d. branch Ljubljana, in the Slovenian language.

In accordance with the Company's decision, for the purpose of more efficient operations, the Company is in the process of closing the Ljubljana branch. The Company will continue to operate in Slovenia with cross-border distribution of insurance based on the freedom to provide services in accordance with legal regulations, which means that CROATIA osiguranje d.d. continues to provide insurance services in registered types of insurance based on the freedom to provide services to all current and future corporate clients in Slovenia.

Purchase of treasury shares

The Company does not own treasury shares, and the General Assembly did not authorise the Company to acquire treasury shares.

Expected development in the future

The further development of the insurance market in the Republic of Croatia will be greatly influenced, in addition to the previously mentioned geopolitical situation, by climate change, to a lesser extend inflation and rising wages, and the expected drop in interest rates.

We have witnessed that every month in the last 9 months (since June 2023) has been the "warmest" month ever and is on average over 1.5 Celsius degrees warmer than the pre-industrial reference period. The temperature for the period April 2023 - March 2024 is the highest in the history of measurements. Warmer air and sea are a good basis for the development of extremely strong storms, whose damages can be compared with the damage traditionally associated with hurricanes. Accordingly, insurance prices, primarily property, in areas that are not traditionally associated with major natural disasters could experience significant corrections in insurance prices / conditions.

Although inflation in the Republic of Croatia is slowing down, it is still among the highest in the EU and is currently just under 5%. This especially applies to the prices of services which are still at a relatively high 8% growth rate. Regardless of the slightly higher realized inflation for Q1 2024, inflation expectations for the whole 2024 year are still between 3% and 4% (depending on the source). The nominal increase in the average net salary compared to the same period last year (according to the CBS) is 12.8% (influence of the minimum wage increase in the Republic of Croatia and the change in the tax/surcharge system). In accordance with the above, further price corrections of insurance services are possible.

The growth of life insurance is greatly influenced by the movement of interest rates. Although interest rates have recovered from extremely low yields during the pandemic, current expectations are that these rates will start falling again (inverted curve). Due to all the above, it is difficult to predict whether life insurance will continue to decline as in previous years or whether the market will finally turn around.

Research and development activities

The Company continuously monitors environmental events and invests in market research, directs and supports the activities of affiliated companies that are in the function of organic growth and recognition of business opportunities and realization of new acquisitions.

Description of the most significant risks and uncertainties

In relation to the most significant risks and uncertainties which were described in the audited financial statements for the year 2023, in the period observed there were no significant changes in relation to the risks to which the Company is exposed in the course of its business, except as described in the chapter Significant business events in the reporting period.

Zagreb, 30 April 2024

Member of the Management Board	President of the Management Board
Luka Babić	Davor Tomašković
Member of the Management Board	Member of the Management Board
Vančo Balen	Robert Vučković

III. NOTES TO THE UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD I-III 2024

1. GENERAL INFORMATION OF THE COMPANY

CROATIA osiguranje d.d., Zagreb, Vatroslava Jagića 33 (the 'Company') is registered in the Court Register of the Commercial Court in Zagreb, Republic of Croatia, under the Company's Court Reg. No. ("MBS") 080051022 and PIN ("OIB") 26187994862. The Company's principal activity is non-life and life insurance business and reinsurance business in the non-life insurance group.

The Company, within the scope of its business, also performs the following tasks:

• activities of offering the investment fund shares and activities of offering pension programs of voluntary pension funds and pension insurance companies in accordance with the provisions of the law governing the offering of shares of investment funds and the offer of pension programs,
• insurance distribution activities for other insurance companies,
• activities that are directly or indirectly related to insurance activities,
• credit intermediation operations in accordance with the regulations governing credit intermediaries.

Since 2004, the Company's shares have been listed at Official Market of the Zagreb Stock Exchange, Zagreb.

The Company is majorly owned by ADRIS GRUPA d.d., Rovinj and is included in the consolidated financial statements of ADRIS GRUPA d.d. which are available on the website of ADRIS GRUPA d.d.

The average number of employees of the Company during the current period is 2,349.

Supervisory Board and Management Board

According to the Company Act, Insurance Act and the Articles of Association of the Company the Company's bodies are: the General Assembly, the Supervisory Board and the Management Board. Obligations and responsibilities of the members of these bodies are determined by the mentioned acts.

Members of the Supervisory Board are:

Roberto Škopac	President
Dr.sc. Željko Lovrinčević	Vice President
Vitomir Palinec	Member
Hrvoje Patajac	Member
Dr. sc. Zoran Barac	Member
Pero Kovačić	Member
Dr. sc. Hrvoje Šimović	Member

Members of the Management Board are:

Davor Tomašković	President
Robert Vučković	Member
Luka Babić	Member
Vančo Balen	Member

Basis for preparation of financial statements

Financial statements are prepared in accordance with the Capital Market Act (Official Gazette 65/18, 17/20, 83/21 and 151/22), International Accounting Standard 34 – Interim Financial Reporting, the Rules of Zagreb Stock Exchange and the Ordinance on the contents and structure of issuers interim reports and on the form and manner of their submission to the Croatian Financial Services Supervisory Agency, which is issued by the Croatian Financial Services Supervisory Agency.

Quarterly financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements as at 31 December 2023. The annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The Annual Financial Report for 2023, for the purpose of understanding the information published in the notes to the financial statements prepared for the first quarter of the 2024, is available on the company's official website, the official website of the Zagreb Stock Exchange and the Croatian Financial Services Supervisory Agency's Official Register.

Financial statements are prepared by using the accrual principle, which is the underlying accounting assumption. Economic events are recognized when they occurred and are reported in financial statements for the period in which they occurred by using the underlying accounting principle of going concern.

Financial statements for the first quarter of the 2024 have not been audited.

Presentation currency

Company's financial statements are prepared in the euros as the functional and presentation currency.

Use of estimates and judgements

Preparation of financial statements in conformity with IFRS requires the Management Board to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, and information available at the date of preparation of financial statements, the results of which form the basis of making the judgements about carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Changes of accounting estimates are recognised from the period in which an estimate is revised and in future periods, if the change also affects them.

Accounting policies

Accounting policies and measurement methods which are used in the preparation of financial statements for the reporting period are the same as those which are used for preparation of the audited financial statements for the year 2023. However, due to certain improvements of the accounting processes related to IFRS 17: Insurance contracts, implemented during 2023, the Company reclassified the amounts in the statement of comprehensive income and the statement of cash flows for the comparative period while the amounts in the statement of financial position and in the statement of changes in equity at the reporting date did not change comparative period, i.e. as at 31 December 2023.

Related party transactions

There were no unusual related party transactions of goods and services in the current reporting period.

Seasonality of business activities

Company's operations are not seasonal.

Segment reporting

The Company's reporting segments comprise the life insurance segment and the non-life insurance segment. The description of segments as well as allocation of costs between segment of life insurance and non-life insurance, capital and reserves and assets described in the annual financial statements for 2023, have not changed. There were no significant intersegmental revenues and expenses in the period observed.

Fair value

Fair value is the amount that should be received for an asset sold or paid to settle a liability in an arm's length transaction between market participants at the value measurement date. Fair value is based on quoted market prices, where available. If market prices are not available, fair value is estimated by using discounted cash flow models or other appropriate pricing techniques. Changes in assumptions on which the estimates are based, including discount rates and estimated future cash flows, significantly affect the estimates. Therefore, at this point the estimated fair value cannot be certainly achieved from the sale of a financial instrument.

The fair value of investments at amortised cost is presented below:

		31 March 2024		31 December 2023
	Net book value	Fair value	Difference	Net book value	Fair value	Difference
	in EUR	in EUR	in EUR	in EUR	in EUR	in EUR
Debt securities	259,317,447	250,596,498	(8,720,949)	285,068,974	268,391,533	(16,677,441)
Loans	53,861,606	51,697,189	(2,164,417)	56,481,476	54,403,270	(2,078,206)
Deposits	31,242,000	31,242,000	-	53,514,876	53,514,876	-
	344,421,053	333,535,687	(10,885,366)	395,065,326	376,309,679	(18,755,647)

Methods of assessment or assumptions in determining fair value

For measuring the fair value, the Company takes into account the IFRS fair value hierarchy rules that reflect the significance of inputs used in the assessment process. Each instrument is assessed individually and in detail. The levels of the fair value hierarchy are determined on the basis of the lowest level and the input data that are important for determining the fair value of the instrument.

The table below analyses financial instruments carried at fair value using the valuation method. Different levels have been defined as follows:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1),
• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices or interest rates information) or indirectly (that is, derived from prices or interest rates) (Level 2),
• Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

The Company's assets measured at fair value as at 31 March 2024 are presented as follows:

	Level 1	Level 2	Level 3	Total
	in EUR	in EUR	in EUR	in EUR
Property for own use	-	-	25,355,404	25,355,404
Investment property	-	-	67,927,398	67,927,398
Equity securities	127,689,822	-	28,976,606	156,666,428
Debt securities	363,298,787	110,848,824	-	474,147,611
Financial assets at fair value through other
comprehensive income	490,988,609	110,848,824	28,976,606	630,814,039
Equity securities	103,798	-	-	103,798
Debt securities	19,852,700	-	-	19,852,700
Investment funds	70,752,118	81,157,532	-	151,909,650
Foreign currency forward contracts	-	272,942	-	272,942
Foreign currency swap	-	93	-	93
Financial assets at fair value through profit
or loss	90,708,616	81,430,567	-	172,139,183
Total assets at fair value	581,697,225	192,279,391	122,259,408	896,236,024

The Company's assets measured at fair value as at 31 December 2023 are presented as follows:

	Level 1	Level 2	Level 3	Total
	in EUR	in EUR	in EUR	in EUR
Property for own use	-	-	25,693,150	25,693,150
Investment property	-	-	67,925,833	67,925,833
Equity securities	109,827,535	-	28,984,893	138,812,428
Debt securities	406,802,867	127,082,668	-	533,885,535
Financial assets at fair value through other comprehensive income	516,630,402	127,082,668	28,984,893	672,697,963
Equity securities	387,390	-	-	387,390
Debt securities	10,963,850	-	-	10,963,850
Investment funds	46,856,047	76,949,467	-	123,805,514
Foreign currency forward contracts	-	462,382	-	462,382
Other	-	23,787	-	23,787
Financial assets at fair value through profit or loss	58,207,287	77,435,636	-	135,642,923
Total assets at fair value	574,837,689	204,518,304	122,603,876	901,959,869

The Company has adopted IFRS 13, pursuant to which it is required to disclose the fair value hierarchy of financial assets that are not measured at fair value as well as a description of valuation techniques and inputs used.

Financial liabilities, which are not valued at fair value through profit and loss account, are recorded at amortised cost. The Management Board believes that, due to fact that interest rate of these instruments is in line with market rates, the carrying value of these instruments is not significantly different from their fair value.

The fair value of deposits, loans and financial liabilities are estimated on the basis of inputs that are not commercially available rates, and are therefore classified as Level 3, or by using publicly available rates published by the Croatian national bank (for the Company's loans) and would therefore be classified as Level 2 in the fair value hierarchy. Investments with available market prices and classified in the portfolio of investments in debt securities valued at amortised cost are classified as Level 1.

The fair values of cash and cash equivalents and other receivables, i.e. other assets do not differ significantly from their carrying amounts due to the short-term nature of these financial instruments. Fair value is determined based on Level 2 inputs for cash and cash equivalents and based on Level 3 inputs for other receivables i.e. other assets.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. The fair value of financial instruments that are classified as Level 3 is determined by using discontinued cash flow techniques or other valuation techniques by using relevant observable market data, information about current business and estimation of issuer's future business of the financial asset in question. There was no significant increase or decrease in the value of the parameters that would affect the change in the fair value of financial assets classified in Level 3 fair value.

There have been no significant reclassifications of financial assets at fair value through profit or loss from Level 1 and Level 2 to Level 3 and vice versa in statement of financial position.

The fair value of investment property is derived primarily by applying a sales comparison and income approach, and sometimes lacking information on market parameters by applying the cost method, depending on a particular property.

The fair value of the property for own use was carried out primarily by applying the income method,

The most significant inputs in the valuations were prices or rental income per square meter, generated based on comparable properties in the immediate vicinity and then adjusted by differences in key characteristics.

Information on measurements of the fair value of investment property using significant inputs that are not available on the market (Level 3) is published in the financial statements for 2023.

Intangible assets

In the period observed, intangible assets decreased by EUR 385 thousand, and this represents the net effect of increasing intangible assets due to additional investments in the observed period and reduction of intangible assets due to amortization. The Company capitalized the costs of net salaries in the amount of EUR 69.6 thousand, the costs of contributions from salaries in the amount of EUR 19.7 thousand, the costs of taxes and surcharges from salaries in the amount of EUR 13 thousand, the costs of contributions to salaries in in the amount of EUR 15.2 thousand and other employee costs in the amount of EUR 2 thousand.

Financial assets and financial liabilities

The Company's structure of financial assets as at 31 March 2024 and 31 December 2023 was as follows: 31 March 2024

	Financial assets at amortised cost	Financial assets at fair value through other comprehensive	Financial assets at fair value through profit and	Total
		income	loss account
	in EUR	in EUR	in EUR	in EUR
Shares
Shares, listed	-	156,453,716	103,798	156,557,514
Shares, not listed	- -	212,712 156,666,428	- 103,798	212,712 156,770,226
Debt securities
Government bonds	256,488,001	376,672,890	-	633,160,891
Corporate bonds	2,829,446	97,474,721	-	100,304,167
Treasury bills	-	-	19,852,700	19,852,700
	259,317,447	474,147,611	19,852,700	753,317,758
Derivative financial instruments
Foreign currency swap	-	-	93	93
Foreign currency forward contracts	-	-	272,942	272,942
	-	-	273,035	273,035
Investment funds
Open-ended investment funds	-	-	149,729,592	149,729,592
Open-ended investment funds - assets for coverage of unit-linked products	-	-	2,180,058	2,180,058
	-	-	151,909,650	151,909,650
Loans and receivables
Deposits with credit institutions	31,242,000	-	-	31,242,000
Loans	53,861,606	-	-	53,861,606
	85,103,606	-	-	85,103,606
	344,421,053	630,814,039	172,139,183	1,147,374,275

	Financial assets at amortised cost	Financial assets at fair value through other comprehensive income	Financial assets at fair value through profit and loss account	Total
	in EUR	in EUR	in EUR	in EUR
Shares Shares, listed Shares, not listed	- -	138,599,716 212,712	387,390 -	138,987,106 212,712
	-	138,812,428	387,390	139,199,818
Debt securities Government bonds Corporate bonds	282,207,468 2,861,505	439,163,288 79,864,197	1,340,131 9,623,719	722,710,887 92,349,421
Treasury bills	- 285,068,973	14,858,050 533,885,535	- 10,963,850	14,858,050 829,918,358
Derivative financial instruments
Interest swap	-	-	185	185
Foreign currency swap	-	-	23,601	23,601
Foreign currency forward contracts	- -	- -	462,383 486,169	462,383 486,169
Investment funds Open-ended investment funds Open-ended investment funds - assets for coverage of unit-linked products	- -	- -	108,768,680 15,036,834	108,768,680 15,036,834
	-	-	123,805,514	123,805,514
Loans and receivables
Deposits with credit institutions Loans	53,514,877 56,481,476	- -	- -	53,514,877 56,481,476
	109,996,353	-	-	109,996,353
	395,065,326	672,697,963	135,642,923	1,203,406,212

The structure of financial liabilities as at 31 March 2024 and 31 December 2023 was as follows:

	31 March 2024	31 December 2023
	in EUR	in EUR
Lease liabilities	34,733,252	35,206,805
Derivative financial instruments	222,458	91,065
Preference shares	1,627,500	1,627,500
Liability for unpaid dividend	208,602	208,602
Other financial liabilities	4,816,286	15,000
	41,608,098	37,148,972

Share capital and shares

The Company's share capital with a nominal value of EUR 79,924 thousand as at 31 March 2024 is divided among 429,697 shares with a nominal value of EUR 186,00. The shares are marked as follows:

Number of shares	Nominal amount (in 000 EUR):
307,598 ordinary shares I, emission with ticker CROS-R-A/CROS	57,213
113,349 ordinary shares II, emission with ticker CROS-R-A/CROS	21,083
TOTAL OF ORDINARY SHARES	78,296
8,750 preference shares I, emission with ticker CROS-P-A/CROS2	1,628
TOTAL OF PREFERENCE SHARES	1,628
TOTAL OF ORDINARY AND PREFERENCE SHARES	79,924

Each share, ordinary and preference, provides the right to 1 (one) vote at the Company's General Assembly. Due to the guaranteed dividend payment, preference shares are classified as financial liabilities. All shares are paid in full, issued in dematerialized form, are transferable and are managed at the central depository of the Central Depository & Clearing Company.

Based on the provisions of the Act on the introduction of the euro as the official currency in the Republic of Croatia and the provisions of the Companies Act, the Company proposed at the General assembly a decision on the adjustment of the share capital and the nominal amount of the Company's shares in such a way as to increase the amount of the nominal value of the share from 185.81 EUR, calculated by conversion into euros using a fixed conversion rate with rounding to the nearest cent, to the amount of EUR 186.00. The aforementioned increase in the nominal amount of the share is carried out in order to round the nominal amount of the shares to a whole number, as prescribed by Article 163, paragraph 4 of the Companies Act.

With the purpose of aligning the share capital with the provisions of the Companies Act, the share capital is increased by the amount of EUR 80,812.35, whereby the total share capital of the Company after recalculation and adjustment amounts to EUR 79,923,642.00. This adjustment was made on 5 October 2023 after changes in the court register.

Liabilities

The structure of Company's liabilities as at 31 March 2024 and 31 December 2023 was as follows:

	31 March 2024
	No later than 1	1-5 years	More than	Total
	year		5years
	in EUR	in EUR	in EUR	in EUR
Other provisions	398,021	5,505,998	848,325	6,752,344
Financial liabilities	7,669,230	6,793,918	27,144,950	41,608,098
Other liabilities	37,371,459	2,149,069	1,537,446	41,057,974
Total	45,438,710	14,448,985	29,530,721	89,418,416

	31 December 2023
	No later than 1 year	1-5 years	More than 5years	Total
	in EUR	in EUR	in EUR	in EUR
Other provisions	789,396	5,462,272	843,446	7,095,114
Financial liabilities	2,741,207	7,197,814	27,209,951	37,148,972
Other liabilities	37,182,794	2,368,115	1,371,402	40,922,311
Total	40,713,397	15,028,201	29,424,799	85,166,397

Deferred taxes The Company on 31 March 2024 has recognized deferred tax assets and liabilities. There were no significant changes in deferred tax assets compared to 31 December 2023, while the movement of deferred tax liabilities is shown in the note below:

						in E U R
	i ing d a d bu l d La n n s ie d by oc cu p an ing its de k fo rta un r ow n	ina ia l a F t nc sse i la b le fo le av a r s a	ina ia l a F ts at nc sse ir v fa lue hro h t a ug ive he he ot r c om p re ns	f Im I F R S t o p ac ica ion l t 17 ap p	ina ia l F nc fro res erv es m ins ura nc e	l To ta
	iv it ies t ac		inc om e		nt ts co rac
be De 3 1 r 2 02 2 ce m	69 8 1, 3 5 2 ,	2, 4 5 9, 5 5 4	-	12, 3 4 1, 3 7 0	87 15, 29 3, 3	64 3 1, 4 3 25 ,
f t f irs ica ion f he l S 9 Im I F R t o t a t p ac p p o	-	( ) 2, 4 5 9, 5 5 4	60 6, 2, 23 7	-	-	6, 6 83 14
las i f ica ion Re t c s	-	-	-	9, 03 5	-	9, 03 5
i l iza ion f de fer d l ia b i l ity hro h Ut t tax t o re ug	( 64 67 ) 7 ,					81
f it a d los nt p ro n s a cc ou		-	( ) 1, 4 03 20 3 ,	( ) 12, 3 5 0, 4 05	-	( 8, ) 13, 3 7 5
ha hro h o he he ive inc C t t ng es ug r c om p re ns om e	( ) 613 24 ,	-	8 8 7, 4 9 3, 0	-	( ) 8, 15, 4 3 02	( ) 6, 82 9 4 7
be De 3 1 ce m r 2 02 3	80 8 1, 2 14 ,	-	8, 69 6, 122	-	6, 87 8, 5 7 1	6, 85 84 1 4, 1
i iza ion ia i ity l f de fer d l b l hro h Ut t tax t o re ug
it a f d los nt p ro n s a cc ou	( ) 2, 7 4 0	-	-	-	-	( ) 2, 7 4 0
i iza ion ity l hro h e Ut t t ug q u	-	-	( ) 80 7, 7	-	-	( ) 80 7, 7
ive inc ha hro h o he he C t t ng es ug r c om p re ns om e	-	-	6, 2, 9 9 03 5	-	27 25 0 5 ,	84 3, 15 3 4 ,
h 2 Ma 1 3 rc 02 4	8 1, 27 7, 4 0	-	64 8 11, 21 5,	-	82 1 7, 4 05 ,	8, 20 3 2 4 4 7 ,

Commitments As at 31 March 2024, the Company's contractual obligations for future investments amount to EUR 26.9m based on binding bids for investments in alternative investment funds.

MANAGEMENT BOARD STATEMENT

Pursuant to article 20 of the Articles of Association of the Company from 31 May 2023 and article 468 of the Capital Market Law (Official Gazette 65/18, 17/20, 83/21 and 151/22), the Management Board provides this

STATEMENT

That to the best of our knowledge:

• the set of quarterly unaudited unconsolidated financial statements of the issuer for the period 1 January – 31 March 2024 prepared by using applicable financial reporting standards, gives a true and fair view of assets and liabilities, the financial position and profit or loss of the issuer,
• the management report presents an objective view of the development and business results and position of the issuer with description of significant risks and uncertainties to which the issuer is exposed.

Zagreb, 30 April 2024

Member of the Management Board	President of the Management Board
Luka Babić	Davor Tomašković
Member of the Management Board	Member of the Management Board
Vančo Balen	Robert Vučković