The global pandemic COVID–19 had significant repercussions on numerous industries worldwide. We examine the side effects of the COVID–19 pandemic on the operational and financial outcomes of insurance firms operating in Albania. The selected sample consists of twelve insurance firms of the Albanian insurance market for nine years, from 2013 to 2021. This research is based on secondary data from the financial statements of both life and non–life insurance companies and investigates how performance, as the most important indicator of financial stability, is affected by different factors. Our findings show that the COVID–19 pandemic, the capital ratio, and the profitability significantly influence insurance firms’ Return on Assets (ROA).