This research explores how capital structure impacts insurance company financial outcomes with
specific focus on Jubilee Insurance Company based in Kenya. The research analyzes debt ratio
effects alongside equity ratio effects and retained earnings effects on financial performance
metrics. The study uses data analysis with SPSS version 22 for descriptive statistics from
secondary data while applying the pecking order theory as its foundational framework. Research
assesses insurance sector literature to demonstrate that appropriate financial management along
with proper liquidity control and equity capital utilization enhance both profitability and industry
competitiveness within Kenya's insurance industry. Research shows leverage improves financial
results but guaranteeing risk and insufficient liquidity creates unfavorable impacts. As the
research understands capital structure theories continue to evolve while providing essential
guidance for managers who seek optimal debt-equity combinations to achieve profit
enhancement and cost reduction and maximize market value. This research investigates
insurance company capital structure management strategies in Kenya to enhance financial
outcomes while sustaining business performance in a dynamic environment which includes
global and regional capital structure standards.