Degefe, Duressa (PhD)Tewabech, Workie2018-11-042023-11-042018-11-042023-11-042018-01http://etd.aau.edu.et/handle/123456789/13727A thesis submitted to the department of accounting and Finance (A.A.U) in partial fulfillment for the requirement of The degree of Master of Science in accounting & financeReinsurance plays a critical role in the proper functioning of a stable insurance market. This study aims to investigate the relationship that exists between insurer specific factors and reinsurance demand in the Ethiopian insurance companies. In order to achieve this objective, eight non-life insurance companies were selected for the period of 2005 to 2016. Five hypotheses were formulated and tested using regression analyses, applying explanatory research design and quantitative research approach. The study relied on secondary data extracted from the audited financial statements of the selected insurers. Financial leverage, underwriting risk, firm size, return on asset and asset volatility were taken as independent variables while reinsurance demand was taken as dependent variable being represented by the firms reinsurance ratio. The result of the fixed effect regression model indicated that a strong positive significant relationship exists among financial leverage with reinsurance demand and asset volatility to reinsurance demand. And also significant negative relationship exists between firms’ size and reinsurance demand. The study delivers evidence that financial leverage, total asset volatility and underwriting risk are the most important factors that affect demand for reinsurance in Ethiopian insurance companies. On the basis of these findings, the researcher suggests that Ethiopian insurers should give more attention for these factors whenever they arrange reinsurance agreements.en-USInsurerReinsurerReinsurance demandThesis