This study investigates the primary factors affecting the solvency margin of Egyptian insurance companies through analyzing various dynamics that influence this margin. The study period is from 2012 to 2021 for 30 (17 non-life and 13 life) insurance companies. The insurers' solvency margin ratio has been utilized as a dependent variable. The analysis focused on eight independent variables: Return on Assets (ROA), asset size, premium growth, liquidity ratio, investment ratio, uncollected premium ratio, reinsurance ratio, and shareholders to policyholder equity ratio. The results revealed a significant relationship between the solvency margin ratio, as a dependent variable, and specific explanatory variables, namely: asset size, investment ratio, liquidity, and the ratio of shareholder equity to policyholder equity. The study provides recommendations for Egyptian insurance companies and regulators. It suggests that several insurance companies should increase their capitalization base. Furthermore, the regulator could improve the capitalization requirement and implement a risk-based capital approach.