The Government Service Insurance System (GSIS) reported net income of P80 billion for the first 10 months of the year, an increase of 117 percent from P37 billion in the same period last year.
The improved profitability arose from strong revenue, mainly in income from financial assets which surged to P29 billion or a 344 percent increase year on year.
Income from investment property climbed 142 percent to P8 billion from the revaluation gains of approximately 12,000 accounts appraised as of October this year.
Income derived from general insurance activities expanded by 7 percent amounting to P6.2 billion as a result of an active marketing drive. Social insurance premiums grew by 8 percent to P10 billion arising from increased membership and salary adjustments.
“We have maintained prudence in our expenses, which totaled P8.2 billion, marking an 8 percent reduction compared to the budget set for October 2023,” Veloso pointed out.
“In fact, during the first 10 months of 2023, the pension fund’s expense loading was at 3.4 percent, way below the 12 percent charter limit.”
As of end-October 2023, the total assets of the GSIS stood at P1.6 trillion, posting a 4.4 percent increase from last year.
The GSIS has also extended its fund life to 35 years (until 2058), an increase of five years from the last assessment in 2021.
“A longer fund life enables us to fulfill our responsibility of delivering benefits to our members and retirees on time. As a financial institution, our primary focus is to increase the contributions of our members by seizing strategic investment opportunities,” president and general manager Wick Veloso said.
The GSIS continues to align its investments with the country’s growth story, focusing on critical sectors like real estate, infrastructure, food, energy, and mining. In the first nine months this year, total investment in these sectors amounted to P1.3 trillion, representing an 11 percent growth. Global investments witnessed a 5 percent increase at P185 billion.
According to Veloso, the “GSIS remains committed to support the four key sectors known as the ‘4Ps’: Pabahay (housing), Power (energy), Pagkain (food), and Pagamot (healthcare).”These sectors are fundamental to the government’s socio-economic agenda. Investing in them equates to a direct investment in the welfare and future of our nation and the Filipino.”
