The study looked at how reinsurance affects the performance of insurance companies in Taiwan from 1999 to 2009. It found that companies with higher profits tend to buy less reinsurance, while those relying more on reinsurance tend to perform worse. Managers need to balance risk and profitability. Factors like return on assets, underwriting risks, and liquidity ratio influence reinsurance decisions. Company size, financial leverage, and reinsurance impact firm performance. These findings have practical implications for the insurance industry in Taiwan.