La Capitale has it origins in a mutual fund that was formed in 1940 by state employees from Parliament Hill in Quebec who wanted to establish a more secure way to pay for their funeral expenses.

[5] Still operating under la Mutuelle des employés civils, in 1947, the organization issued its first life insurance policies and opened its first office in Montreal, Quebec.

Initially, la Mutuelle des employés civils only offered insurance products for state employees.

[7] The inauguration of La Capitale's new headquarters was attended by Premier Pauline Marois, the Minister of Finance and Economy, Nicolas Marceau, and Quebec City's mayor, Régis Labeaume.

In 2009, intent on finding new revenue streams, the company initiated a project to enter the Ontario market for the first time.

[2] The company would do business in Ontario under its same La Capitale General Insurance brand name and would remain headquartered in Quebec City.