Lonpac Insurance Bhd (Lonpac), a wholly owned subsidiary of LPI Capital Bhd, was incorporated in Malaysia on 12 July 1994. It commenced underwriting of general insurance business after a rationalisation scheme on 1 May 1999. The paid-up capital of the Company is RM200,000,000 comprising of 200,000,000 ordinary shares of RM1.00 each. The Company operates through 21 branches in Malaysia and a foreign branch in Singapore to serve the clients better. In September 2005, the Malaysian Rating Corporation Berhad (MARC) has reaffirmed the general insurance strength rating of Lonpac at "AA", reconfirming its financial stability and reliability in the insurance industry. In September 2017, the A.M. Best Company, Inc. has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" of Lonpac. The rating affirmations reflect Lonpac's strong risk-adjusted capitalisation and very strong track record of operating performance. Lonpac's risk-adjusted capitalisation is supported by a consistent and strong internal capital generation ability that has kept its underwriting leverage low. Lonpac generates one of the highest underwriting margin in Malaysia's non-life market, and its performance has been very strong compared with its peers based on variety of measures.