The purpose of this study was to examine the determinants of dividend policy inrnEthiopian insurance companies. For this purpose, samples of nine Ethiopian insurancerncompanies were selected. Ordinary Least Squares (OLS) Regression was used tornexamine the impact of profitability, liquidity, leverage, firm size, growth opportunity,rnprevious year dividend and asset structure on dividend policy in the insurance sectorrnover a period of nine years from 2007/08 to 2015/16. The empirical results of thisrnstudy showed that profitability, leverage, liquidity, previous year dividend and assetrnstructure have a positive relationship with dividend payout. Meanwhile, firm size andrngrowth opportunities have a negative relationship with dividend payout. Furthermore,rnthe results of the analysis indicated that profitability, liquidity, growth opportunities,rnprevious year dividend and asset structure were the major factors that affectedrndividend policies of Ethiopian insurance companies and mangers of Ethiopianrninsurance companies need to consider these factors while setting/revising theirrndividend payout policy; on the same token investors need to consider these factors inrntheir investment decisions when they want to make an investment in Ethiopianrninsurance companies.Moreover, further investigations including different companyrnselected factors like firmâ€™s age, business risk, insider ownership, corporate tax andrncapital structure would provide better insight for determinants of dividend policy inrnEthiopian insurance Companies.rnKeyword: Dividend policy; Dividend payout; Insurance Companies