Insurance is an economic activity that provides economic protection against potential risks. The insurance industry in the Republic of Croatia has an important function of protection of individuals and transferring risk from the individual to the group, as well as social and developmental functions that are helpful to the economy. Allianz Hrvatska plc. has been present in the Croatian insurance market for many years and is a significant participant in the Croatian insurance market. Main thesis of this paper is to present the financial situation of Allianz Hrvatska plc. by conducting a business analysis of the external and internal environment. Business analysis is an important tool that can help to conclude the financial situation of a company and determine whether it is worthwhile to do business with it or invest in the analysed company. Also, business analysis allows management to see if the company is achieving desired results and it can reveal the strengths and weaknesses of the company. Financial analysis will be applied using selected analytical tools and they will be PESTLE analysis, SWOT analysis, Porter's Five Forces analysis and analysis of selected financial statements. In the conclusion the observed company will be compared with its major competitors and in the end there will be a conclusion about the financial situation and business operations of Allianz Hrvatska plc.