Insurance Risks and Financial Performance of Insurance Companies in Kenya

The insurance industry is instrumental in economic growth through enabling protection, capital creation and promoting commerce. However, there has been a decline the industry's profitability Kenya. Hence, study assessed effect of risks on financial performance companies Specifically, examined effects credit risk, liquidity solvency reinsurance risk underwriting GDP was used as moderating variable. anchored agency theory, preference theory collective theory. target population included all 53 licensed operating Kenya since 2015. A census approach used. Explanatory research design positivism philosophy were utilized. Secondary data gathered from audited statements submitted to Insurance Regulatory Authority for period between 2015 2020. With aid STATA, panel analysed descriptive statistics, correlation regression analyses. multiple results revealed that had negative significant performance, performance. But positive insignificant rate significantly moderates relationship recommended should have good management frameworks minimize risks, implement proper investment portfolio guard against cases asset base, increase share capital, cover most their claims themselves but ensure they adequate where high involved put place policy estimation valuation techniques. Keywords: Credit GDP, companies,