The study sought to examine factors affecting the performance of insurancecompanies in Zimbabwe. We utilized secondary data from twenty short-terminsurance companies. The data was for the period from 2010 to 2014. We usedfactor analysis and multiple linear regression models to determine the factorsaffecting performance and identifying their impact. Our findings revealed thatexpense ratio, claims ratio and the size of a company significantly affect insurancecompanies’ performance negatively. Whilst leverage and liquidity affectperformance positively. We recommend that insurance companies shouldintroduce mechanisms that reduces operational costs such as automated systems.