The main purpose of this paper is to investigate the impact of income and expenses from investment properties on the net profit of insurance companies in Croatia with regard to the applied investment properties measurement model. The research is conducted on 11 insurance companies in Croatia that have recognized investment properties in their financial statements in the period from 2017 to 2021. In order to achieve the purpose of the paper and to test the research hypothesis, descriptive statistical methods and correlation analysis are employed. The research results show that there is a medium strong correlation between income and expenses from investment properties and the net profit in those insurance companies in Croatia that applied the fair value model in measuring investment properties. In insurance companies that applied the cost model for measuring investment properties, income and expenses from investment properties do not have a serious effect on the net profit. Therefore, managers in insurance companies in Croatia that have recognized investment properties in their financial statements can influence net profit and smooth earnings by using the fair value model in measuring investment properties.