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 October 2016, 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 Credit Ratings reflect Lonpac’s strong risk-adjusted capitalisation and its excellent operating performance, which is supported by its business profile. Lonpac has a track record of strong capital generation, supported by profit margins (combined and operating ratios) that are among the strongest in Malaysia’s non-life market. Lonpac’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, has strengthened over the years, supported by good asset quality and improved underwriting leverage.