Corporate governance has become an issue of global significance and has received new urgency duernto various corporate scandals and failure. This study seeks to see impacts of corporate governancernmechanism on financial performance of Insurers in Ethiopia. In order to achieve this objective,rnthe study uses mixed research approach. Panel data covering ten year period from 2005 â€“ 2014rnare analyzed for nine insurance companies. Also in-depth interview was conducted with selectedrncompany board chairmen. The study analyses a range of internal corporate governancernvariables board size, chief executive compensation, educational qualification of directorsrn,presence ofrnfemale directors, frequency of board meeting, other business managementrnexperience of directors, industry specific experience of directors and the study also controls therneffect of premium growth of Insurers. The Fixed effects technique has been applied to find outrnthe most significant variables from considered internal corporate governance variable. Thernregression results show that, chief executive compensation, educational qualification ofrndirectors, other business management experience of directors, and industry specific experiencernof directors has positive and significant effects on financial performance of Insurersâ€™ proxy byrnROA. On the other hand, board size and presence female directors donâ€™t have staticallyrnsignificant impacts on Insurersâ€™ performance. In addition Contrary to theoretical predictionrnfrequency of board meeting does not have significant effects on Insurers performance. So,rnstakeholders should give consideration to chief executive compensation, educationalrnqualification of directors, other business management experience of directors, andrnindustryrnspecific experience of directors when they set governance policy for industry as general and forrnthe company specifically.rnKeyword: Corporate Governance mechanism agency theory Insures, financial performance andrnEthiopia