The study’s objectives are twofold: first, to look at the impact of capital structure on insurance company performance in Palestine; and second, to see if this relationship is affected by the diversity of insurance portfolios (product diversification and claims diversification). This study is motivated by the observation that the insurance companies in Palestine are highly levered and the insurance activities are concentrated in the automobile industry, and it is unknown if this strategy is advantageous to the company. The moderating influence of product and claim diversity on the link between capital structure and financial performance in this paper is a contribution to the existing literature. To estimate the study’s model, balanced panel data from seven insurance companies operating in Palestine from 2010 to 2018 was used. The findings demonstrate that leverage has a negative influence on insurance firm performance, but …