Since January 1, 2023, the new international accounting standard for financial reporting, IFRS 17, is in effect in Croatia, the Group reminded, affecting the way of calculating key business indicators such as revenue, combined ratio and net profit. 9M2022’s result adjusted for the effects of IFRS 17 and IFRS 9 amounts to EUR 42.5 million.
During July and August, the areas of Zagreb and its surroundings, as well as central and eastern Croatia, were affected by weather events that caused material damage to vehicles, immovable property, crops and plantations in the amount of more than EUR 30 million. In the first few days of the storms, more damage was reported than the total number of damages reported after the 2020 earthquake, including the Zagreb and Petrin earthquakes. Although the company has adequate reinsurance protection and will compensate a significant part of the losses through concluded reinsurance contracts, the said losses have a negative impact on the company's operations of about EUR 20 million compared to last year.
The digital business segment recorded new positive results in 9M 2023. Realized premium from the overall digital business of Croatia osiguranje grew by 25% y-o-y, and the number of clients using the Moja Croatia mobile application increased by 29%. Laqo, Croatia's digital brand, achieved a premium growth of 50% y-o-y. The cumulative growth of the total digital segment in 9M 2023 is 41%.
Investments of Croatia osiguranje in the health segment of business in the last three years amounted to around EUR 20 million. In 9M 2023, Croatia Poliklinika recorded an increase in income from core business in the amount of 58% y-o-y. The ultimate goal is to provide top medical service and health protection to residents throughout Croatia. In the first half of the year, a new Croatia Polyclinic was opened in Osijek, the sixth in a row in Croatia, and by the end of the year, three more new Polyclinics are planned to open in Zadar, Varaždin and Split.