Abstract: This research aims to using principal component analysis in classification of general insurance companies operating in the Egyptian market according to the financial solvency. Seventeen companies from the general insurance are classified using the principal components analysis. Fourteen variables are used: four dependent variables and ten independent variables. Using the principal components analysis, the four variables are reduced to one component representing the dependent variable (solvency). Ten independent variables are reduced in one component representing the independent variable, and the quadratic regression is used to represent the relationship between the dependent variable component and the independent variable component. The research asserts that Misr Insurance Company is the leading company in the field of general insurance in the Egyptian market where it enjoys high financial solvency