This research paper aims to estimate the effect of political risks on Egyptian insurance companies' investment returns over the period 2009 – 2021 which consist of a variety of events having influences on different areas of businesses and accordingly on insurance companies investment returns. We found that insurance companies' investment returns are affected negatively, significantly by control of corruption which reflect events happened in Egypt from unjustifiable election, revolution, and terrorism but positively affected by the regulatory quality and deficit/surplus in insurance operations showing robust evidence on the cohesiveness of Egyptian laws and its significant role in reducing insurance companies' exposure towards political risks. We recommend, on the macro-level, that the government should stress on supporting the rule of law which might mitigate the negative influence of political risks and on the micro-level, we recommend companies to justify their operations especially risk rating and reinsurance to cope with different economic and political changes.