The threat posed by the prevalence of risks facing insurance firms around the world has been a major challenge experienced in the insurance industry. To a large extent, such risks have accounted for huge insurance claims facing insurance firms and have consequently affected their profitability. The aim of this study was to establish the relationship between social risks and financial performance of insurance companies in Kenya. Social risks arise largely from changes in the social processes, inter-personal behaviors, environmental and political structures surrounding the insurance sector. Descriptive research design was adopted, and all fifty-four (54) insurance firms as at the end of 2018 were targeted for study. The study used both primary and secondary data. The former was collected using a structured questionnaire that was filled by a senior management staff in each company. The latter comprised data on financial performance for each company obtained from IRA publications for the period 2014-2018. Data was analyzed using descriptive statistics, correlation and linear regression. The study found out that insurance fraud and intermediaries were the main social risks that have had a negative and statistically significant effect financial performance of insurance firms in Kenya. Further, whereas terrorism and political unrest were found to have an insignificant effect, the influence of social risks arising from substance abuse, lifestyle changes and moral hazard were perceived to be moderate. Correlation results showed that there was a significant positive relationship between each pair of social risks considered in the study, suggesting that they have the potential to interact with each other, to adversely impact on profitability. The study recommends insurance firms to carefully consider, assess and evaluate their various social risk mitigation measures so as to lessen the adverse effects on profitability.

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