Businesses are living in a world of stiff compel it ion. To be vigorous in this competition, costrneffective mix of capital is a requisite, and organizations need to investigate more on therndeterminants of capital mix. Insurance industry in Ethiopia is currently a fast growingrnsector; however, there is virtually no formidable data on capital structure determinantsrnabout this industry. Thus, the major focus of this study is to investigate empirically capitalrnstructure determinants in the case of insurance industry in Ethiopia. All insurance companiesrnwere included in the sample frame ifâ€¢ they had seven years annual report. Document reviewrnwas used for collecting data from 2004-2010 annual reports. The study applied panel datarnmodel with its fixed effect estimate to test a series of hypotheses that emerge through thernreview of existing literature. To confidently forward conclusion, unit root test, normality,rnmulticollinearity, heteroscedastcity and autocorrelation tests were conducted on the data.rnThe data then was processed using Eviews 6 statistical package. The collected data thenrnanalyzed using descriptive statistics, correlation and OLS regression. The results show thatrngrowth, profitability and age of the firm were found to have significant influence on capitalrnStructure of Ethiopian insurance companies peroxide by long term debt and total debt ratios.rnLiquidity was significant for long term debt and debt to equity. Business risk was alsornsignificant for debt to equity and debt ratio whereas age had also significant influence forrnleverage. However, among the hypothesized capital structure determinants asset tangibilityrnand size of the firm were found to have insignificant contribution on capital structure ofrnEthiopian insurance companies.