The main purpose of this study is to empirically examines the determinants of the capital structure of insurance companies in Ethiopia. In order to achieve this objective, this study used a quantitative research approach, explanatory and descriptive research design, OLS estimation techniques were used, to examine the effect of explanatory variables (profitability, liquidity, business risk, growth opportunity, firm size, real GDP growth rate, and inflation rate) on the dependent variable (leverage).Nine insurance companies in Ethiopia were selected purposively because they had 10 years of audited financial data. The CLRM assumptions, such as heteroscedasticity, normality, autocorrelation, and multicollinearity, were tested. Using panel data covers a ten-year period from2010/11-2019/20 GC for nine insurance companies. The fitted model was a random effect panel regression model. Secondary data was used, as well as data from insurance financial statements based on the NBE annual report, and the data was analyzed using the software Eviews10.The results from the panel multiple linear regression model showed that business risk, growth opportunities, firm size, real GDP and inflation have a positive statistically significant relationship with insurance leverage. Leverage has a negative and significant relationship with profitability and liquidity. The study provides evidence that profitability, liquidity, business risk, growth opportunities, firm size, real GDP and the inflation rate are all important factors affecting the leverage of insurance companies in Ethiopia. Therefore, the study recommends Ethiopian insurance firms and their managers be advised to pay closer attention to profitability, liquidity, business risk, growth opportunities, firm size, real GDP and inflation rate factors to address leverage issues, in order to make optimal decisions pertaining to capital structure.