The South African insurance sector is regarded as a vital pillar of the country’s financial system, acting as a custodian in the overall stability of the financial system. Despite its importance, the sector faces evolving challenges and opportunities influenced by macroeconomic variables and firm-specific factors. Thus, it is critical to investigate the sector’s financial performance. This study, therefore, examines the drivers of the financial performance of life insurance companies listed on the Johannesburg Stock Exchange (JSE), focusing on key determinants such as company size (SIZ), company age (AGE), liquidity (LIQ), inflation rate (INF), interest rate (INTR), unemployment rate (UNEMP), and GDP growth rate (GDP). Using panel data regression analysis, the study examines the impact of these variables on the return on assets (ROA) of a sample of five JSE-listed life insurance companies from 2010 to 2021. Results from the panel regression analysis highlighted SIZ, AGE, and INF as significant drivers of financial performance, while LIQ was found to be insignificant. Given the significant drivers identified, the study highlights the need for strategic adaptation to enhance the resilience and sustainability of South African insurers.